RIS3 in the French Research and Innovation Context

EStIF1 2017 RIS3 in the French Research and Innovation Context 1 RIS3 in the French Research and Innovation Context Maud Pelletier* The concept of smart specialisation has been applied in France at the regional level in the Research and Innovation Smart Specialisation Strategies (RIS3), in changing national and regional contexts and with highly different innovation ecosystems. The process of designing the RIS3 gave every region an opportunity to set out and clarify its specific characteristics, assets and positioning in terms of innovation. It also enables the regions to adopt an entrepreneurial discovery approach which mobilises the region s innovation ecosystem, based on a shared strategy. Designing a strategy, however, is only a first stage in carrying out a successful smart specialisation process. This process is meant to cover the entire 2014-2020 programming period and there are still many stages to go through to ensure that these strategies benefit to French regions and that their impacts are harnessed locally. The impacts of RIS3, which are integrated in a broader policy framework in the field of research and innovation, will also depend on how strongly linked they are to other European policies(such as ESIF programmes, Horizon 2020, COSME, etc.), but also national policies (such as Investment programme for the future, the new industrial France, clusters policies, the New Deal for Innovation, etc.) and regional policies. This is obviously a long term changing process that will take time to produce its full benefits for the regional innovation and economic ecosystems, as well as for the territories and their inhabitants. It is therefore early to assess the real impacts and value added of smart specialisation. Nevertheless, looking ahead in terms of the overall smart specialisation approach, some conclusions and questions can be highlighted for this policy in a post-2020 perspective. The Research and Innovation Smart Specialisation Strategies (RIS3) constitute regional strategic documents, defining an integrated approach to reinforce and maximize the regional research and innovation ecosystem. For the 2014-2020 programming period, thisdocumentisanexanteconditiontobenefitfrom European structural and investment funds(esif) on research and innovation projects(esif thematic objective1). RIS3s have been promoted at EU level as a key part of Cohesion policy reform in the 2014-2020 programming period, in order to ensure that innovation * Advisor in charge of «innovation and territories» at CGET. The views expressed in this article are personal and do not necessarily reflect the views of the CGET. 1 CGET, Synthesis of the French RIS3s (2015). (Available online at <http://www.europe-en-france.gouv.fr> last accessed at 9 March 2017). is a priority for all regions, to optimise the innovation process, to improve governance, to get the innovation ecosystem more closely involved and to focus investment and create funding synergies between EU, national and regional levels in this area. Thispaperisbasedonthe Synthesisoftheresearch and innovation strategies for smart specialisation of French regions, produced by the General Commission for Territorial Equality (CGET, formerly known as DATAR). 1 Thiswork,whichisderivedfromtheanalysisoftheRIS3ofallFrenchregions,showshowthe regions, as the new managing authorities in France, have approached this new EU ex ante conditionality. Part 1 shows the specific context in which these strategies have been developed and the value added of these strategies in this context. Part 2 describes how the smart specialisation concept has been translated into regional RIS3 in France and their current implementation. Part 3 highlights how the French re-

2 RIS3 in the French Research and Innovation Context EStIF1 2017 gional RIS3 are integrated with the other European and national policies supporting research and innovation(horizon 2020, French clusters policies, etc.). Part4thendrawskeychallengestofacilitatetheimplementation of smart specialisation in France and a set of conclusions following this experience in implementing this concept in the post 2020 financial perspectives. I. The French Regions Specific Context for the Design and Implementation of RIS3 1. Diverse Innovation Capabilities The regional RIS3 were defined by the French regions in very different contexts. Each French region is characterised by a specific context relating to unique socio-economic features. These specific characteristics determine the regions ability to adopt a smart specialisation approach as well as the way they appropriate this concept. These characteristics were therefore decisive in the definition and deployment of the French regions RIS3. Certain French regions have well-developed research, development and innovation capacities(adapted equipment, dense local innovation ecosystems, significant funding, etc.) and belong to the regions identified as leaders in Europe, such as Ile-de-France or Rhône-Alpes regions. Other regions are characterised by an economic fabric less likelytoinnovate 2. Therefore the methods used to appropriate and locally translate the smart specialisation concept varied considerably. 2. A Changing National and European Strategic Framework for Research and Innovation In addition, this process was conducted at a time when the national and European strategic framework forresearchandinnovationwasinthemidstofsignificant changes (introduction of the new Horizon 2020 programme, new national strategies). This approachwasafirststepinaddressingtheneedforcoherence, coordination and visibility of innovation policies on the different regional, national and European scales, expressed by innovation stakeholders. 3. A Renewed Regional Governance in the Economic Development and Innovation Field This smart specialisation approach has been implemented from 2014 onwards, at a turning point, when the French regions competences in terms of economic development were reinforced, 3 and just before French regions merged together from 27 to 18 regions. 4 RIS3havethereforebeenakeyelementtodesign the new regional economic development, innovation and internationalisation strategies produced by the regions, by the end of 2016. The European Commissiondidnotrequirethatthenewregionsmergetheir existing RIS3 after the regions merger. 4.RIS3 as Part of a Broader Strategic Framework French regions RIS3 relate to a more global framework of regional public policies, supporting research and innovation, such as the new regional economic development, innovation and internationalisation strategies (SRDEII 5 ) and the higher education, researchandinnovationschemes(sresri 6 ). Moreover,theweightoftheESIfundsintheoverall regional budgets for research and innovation varies considerably from one region to another. For some regions such as the overseas territories, the ESI funds are significant funding sources for research and innovation. For others such as Ile-de-France, the ESIfundsareasmallpartofthepublicexpenditure. Even though the RIS3 are designed as a global framework for research and innovation funds, the relativeweightoftheesifundsmightimpactonthe realinfluenceoftheris3ontheresearchandinnovation ecosystems, and the role and weight of RIS3 might vary significantly from one region to another. 2 View online at <http://ec.europa.eu/growth/industry/innovation/ facts-figures/regional_fr> (last accessed on 9 March 2017). 3 The New Territorial Organisation of the Republic Law, voted on 15/03/2015. 4 Law concerning Regional Borders, Regional and Departmental Elections, and the Electoral Calendar, on 16/01/2016. 5 SRDEII: schéma régional de développement économique, d innovation et d internationalisation. 6 SRESRI: schéma régional de l'enseignement supérieur, de la recherche et de l'innovation.

EStIF1 2017 RIS3 in the French Research and Innovation Context 3 5. RIS3 Built on Former Regional Innovation Strategies In France, the definition of the RIS3 was facilitated by the experience acquired through the implementation of Regional Innovation Strategies, during the 2007-2013 programming period. The regions could therefore build on their former diagnosis of their assets and weaknesses, a good knowledge of their local innovation ecosystem and existing regional governance. Further investigations were of course required to integrate the concept of smart specialisation: implementation of the entrepreneurial discovery process 7 ;reinforcementoftheregionalinnovation governance in place; strengthening of the cooperation with other regions; implementation of a monitoring and assessment system; integration of the principle of openness and collaboration into the RIS3, etc. The new RIS3 also had significant value added compared to former strategies, by highlighting more specific smart specialisation areas based on the territory s assets and driving forces. RIS3 were therefore a strategic tool to assert the regional innovation ecosystems positioning at the European level. II. The French Regional RIS3 and their Current Implementation 1. Main Highlights of the French Regional RIS3 These strategies constitute a new strategic framework to maximise the leverage effect of innovation 7 See definition of the concept on <http://s3platform.jrc.ec.europa.eu/entrepreneurial-discovery-edp> (last accessed on 9 March 2017). 8 CGET, Synthesis of the French RIS3s (2015). (Available online at <http://www.europe-en-france.gouv.fr> last accessed on 9 March 2017). 9 DG Research and Innovation (Inno-Group, SQZ and Innova), Smart Specialisation Strategies and Regional Operational Programmes and Linkages with Key Enabling Technologies (September 2014). 10 In 2014, at the RIS3 planning stage, France comprised 22 metropolitan regions and 5 ultra-peripheral regions. The territorial organisation has since been modified (New Territorial Organisation of the Republic Law August 2015) and the number of metropolitan regions is reduced to 13. support in the territories, generate more innovation, bring more innovative products and solutions to the market, and maximise and diffuse their effects. The process of designing the RIS3 gave every region an opportunity to set out and clarify its specific characteristics, assets and positioning in terms of innovation. It also enables the regions to adopt an entrepreneurial discovery approach which mobilises the region s innovation ecosystem, based on a shared strategy. A global analysis carried out at the national level shows significant differences in the contents of the RIS3. 8 At the European level, the health and ICT sectors appeartobethemainmarketstargetedbytheeuropean regions in their RIS3. 9 A number of central themes emerge from the French regions RIS3 in termsofinnovationonanationalscale(formoredetail,seefigure1andfigure2:the Breakdownofthe smart specialisation areas of the French regions RIS3 by target market chart and Regional positioning in the RIS3 by target markets maps): Health covers at least one smart specialisation area in all the French regions with the exception of Corsica, Mayotte and Franche-Comté. 10 In some regions like Alsace, Aquitaine and Midi- Pyrénées, health is a component of several smart specialisation areas. Some regions focus on submarkets such as biotechnologies, medical devices (Île-de-France for example) and medicinal products. Energy is also a central theme for all regions except for Auvergne, Bourgogne and Martinique. Agri-food, agricultural resources and fisheries are akeyfieldfor20regions.insomeregions,several specialisation areas are related to the agri-food, agricultural resources and fisheries sectors, as in the case of Limousin, Bretagne, Mayotte, Guyanne and Languedoc-Roussillon. ICT, digital technologies, complex software and electronics are smart specialisation fields for 17 regions. In certain regions, several smart specialisation areas are positioned on this market (for example Aquitaine, Auvergne, Bretagne, Ile-de- France and Franche-Comté). 16 regions are positioned in the materials, mechanics and chemistry sectors. Environmental protection, resource management, biodiversity and risk prevention as well as construction are smart specialisation fields for 15 regions.

4 RIS3 in the French Research and Innovation Context EStIF1 2017 Figure 1: Breakdown of the Smart Specialisation Areas of the French Regions RIS3 by Target Market. Source: CGET analysis, available online at <http://www.cget.gouv.fr/sites/cget.gouv.fr/files/atoms/ files/cget_sri_si_en-12-2015.pdf>(last accessed on 16 March 2017). 14 regions focus on mobility and transport. Sectors such as aerospace industry, services, engineering, humanities and social sciences, tourism, creative industry and factories of the future are the least represented. Only Midi-Pyrénées, Aquitaine, Guyanne and Haute-Normandie are positioned in the aerospace sectors. This can be partly explained by the strong concentration of this sector. Factory of the future did not feature in the regional innovation strategiesandisthereforeanewfieldintheris3,which may be due to its integration into the new national policy Industrial France. Moreover, most smart specialisation areas(for example on environmental protection, resource management, biodiversity and risk prevention, but also construction, mobility and transport, energy, agrifood, agricultural resources and fisheries) are characterised by their sustainable approaches. All regions take sustainable development into account in the definition of their smart specialisation areas. Smart specialisation areas in the fields of materials, mechanics and chemistry, as well as factory of the future, significantly integrate eco-innovation issues. 2. Successful Implementation of French RIS 3 Designing a strategy, however, is only a first stage in carrying out a successful smart specialisation process. This process is meant to cover the entire 2014-2020 programming period and requires that French regions also: formulate and implement action plans consistent with the ambitions identified in their strategies: ensuringthattheneedsoftheterritoryandthediagnosis performed match the definition and subsequent implementation of the action plan is a key requirement for satisfying the expectations of the regional innovation ecosystems;

EStIF1 2017 RIS3 in the French Research and Innovation Context 5 Figure 2: Regional Positioning in the RIS3 by Target Markets. Source: CGET analysis, available online at <http://www.cget.gouv.fr/sites/cget.gouv.fr/files/atoms/ files/cget_sri_si_en-12-2015.pdf>(last accessed on 16 March 2017). implement a high-performance monitoring and assessment system: these are crucial in the deployment of the strategies, to check the progress of the territories against key objectives and targets,

6 RIS3 in the French Research and Innovation Context EStIF1 2017 while informing local actors of the required strategic developments over time; mobilise and streamline resources around action plans:forexample,theabilitytooptimisetheeuropean funding of research and innovation will be key(see box below). coordinate the RIS3 approach and its action plans consistent deployment over time: ensuring that stakeholders of the regional innovative ecosystem take ownership of the RIS3 is a long term process; coordinate the approach over time: supporting for example the long term the process of entrepreneurial discovery, involving the regional innovative ecosystem; ensure strong links between RIS3 and other regional policies such as the new regional economic development, innovation and internationalisation strategies(srdeii) and the higher education, research and innovation schemes(sresri), in ordertoensurethattheyhaveastrongleverageeffect on research and innovation and that they translate into strongly anchored economic benefits and employment. In the context of strong constraint on public spending, maximising the funding packages available is key, notably by implementing an inter-fund logic and by optimising the synergy with the Horizon 2020 funding packages. This means that the territories should have sufficient knowledge of the projects funded by Horizon 2020, so that they can view the European structuralandinvestmentfunds(erdf,etc.)astoolstobe mobilized. They could be used, for example, upstream or downstream of the projects funded by the Horizon 2020 programme, to improve the skills of the ecosystem, assist with the development of excellence projects, as well as reap the benefits of the projects funded by Horizon 2020 at territorial level. In this perspective, the French General Commissariat for Territorial Equality and the Ministry for National Education, Higher Education and Research, along with the association Regions de France organized in September2016anationalworkshop 11 onhowtooptimise European funding (mainly Horizon 2020 and ESI funds) for research and innovation projects. Some good practices in terms of synergies between ESI funds and Horizon 2020 can already be identified in France: In La Réunion for example, some local research and innovation teams take part in Horizon 2020 projects, thanks to European Regional Development Funds (ERDF). The ERDF managing authority has set up an agency dedicated to awareness, partnership building, projects structuring and monitoring of Horizon 2020 selected projects. Since it has been created, the agency has helped local actors to integrate 7 consortia awarded by Horizon 2020 competitive programmes and the projects supported by the agency meet a success rate 30% greater than average. As the programming period is still for many regions at an early stage, it is too early to draw conclusions astowhetherornotthesestrategieswillbesuccessfully deployed. However, it is possible to say that they are implemented at a strategic time when French regions consolidate their competences and their tools, in the economic development and innovation fields. Itisalsopossibletopresume,thatthelevelofmaturity of the region with regards to research, innovationandeconomicstrategiesaswellastheweightof the RIS3 in the regional public policies framework will impact the results of regional RIS3. III. Links Between the French Smart Specialisation Strategies and the European and National Innovation Policies In accordance with their strategic approach defined within their RIS3, regions have to provide a coherent set of operational tools - especially financial instruments to reach operational outcomes. With a viewtobothmaximisingtheleverageeffectatthelocal level and improving European competitiveness from a global point of view, the linkage and consistency of the innovation support schemes are crucial. There are many funding tools at the European levels(esif programmes, Horizon 2020, COSME, Innovation Union, etc.) but also at the national level(investment programme for the future, the new industrial France, clusters policies, the New Deal for Innovation,etc.). 11 View online at <http://www.europe-en-france.gouv.fr/centre-de -ressources/etudes-rapports-et-documentation/compte-rendu -Seminaire-articulation-FESI-et-Horizon-2020-du-22-septembre -2016/%28language%29/fre-FR> (last accessed on 9 March 2017).

EStIF1 2017 RIS3 in the French Research and Innovation Context 7 In the case of French regions, the RIS3 share in particular common interests with the Horizon 2020 programme and are at the national level strongly related to the French cluster policy. 1. Linkages Between the French RIS3 and Horizon 2020 HORIZON 2020 is the European Union s new research and innovation funding programme for the 2014-2020 period. It combines the European Union s research and innovation funding mechanisms, which amounttoatotalof 79billion,directlymanagedby the European Commission. While RIS3 is a regional policy, including the regional implementation of Cohesion policy on the research and innovation field, Horizon 2020 is designed to promote scientific excellence in Europe, through: the reinforcement of the European Union s worldwide position in research, innovation and technological domains, the guarantee of Europe s competitiveness by investing in technologies and professions of the future, with a view to smart, sustainable and inclusive growth, the appeal of the Europe of research, the consideration of people s concerns(health, environment, clean energy, etc.) and societal challenges. Smart specialisation should help optimise the impact of the structural funds for research and development, innovation and the competitiveness of businesses, while increasing the synergy between Cohesion policy and the research framework programme Horizon 2020. While Cohesion policy is designed to act in close coordination with the COSME business competitiveness and innovation framework programme, and with the Horizon 2020 research framework programme, the objectives assigned to these programmes remain clearly distinct: 12 M.Catinat head of Unit KET, DG Enterprise and Industry, EC. Toulouse economic forum. 17/09/2014. 13 Directorate-General for Research and Innovation of the European Commission Smart Specialisation, Strategies and Regional Operational Programmes and Linkages with Key Enabling Technologies (September 2014). COSME and Horizon 2020 focus on supporting excellence, mutual learning cooperation between researchers and businesses. At the same time, Cohesion policy supports the reinforcement of the regions ability to innovate as part of a progression up the stairway to excellence, the promotion of a specific knowledge base in every region, skills for innovation and the local development of innovative applications, derived from enabling technologies designed by leading regions, for critical activity specified by territory. It is therefore worth examining the nature of the links between the RIS3 and Horizon 2020 observed in the RIS3. The principal links observed are the key enabling technologies (KET), ICT, societal challenges and innovation within the SMEs. a. Linkages Between the French RIS3 and Key Enabling Technologies The KETs were defined by the European Commission, asagroupofsixtechnologiesthathaveawiderange of product applications, a huge potential to recapture industrial primacy, fuel economic growth and provide jobs: nanotechnologies, microelectronics, biotechnology, photonics, advanced materials and advanced production/manufacturing systems.horizon 2020 is one of the funding tools for KETs development. The development of key enabling technologies is a central thread of the smart specialisation concept insofar as they set the boundary between the leading regions and those less advanced. Within the French RIS 3, 74 percent of the regions(20 regions) integrate the issue of key enabling technologies into their RIS3 approaches, against two thirds at the European scale. 12 At a national level, most KETs(advanced materials, photonics, nanotechnology, nano-electronics, and biotechnology) were taken into account, roughlytothesameextent,asillustratedinfigure3with the example of how the Aquitaine region took the KET into account in its RIS3. The Advanced materials KET is slightly more often integrated into the French RIS3 than the other KETs. Advanced production systems is slightly less emphasised in RIS3. Compared with the European level, 13 the key technologies which feature most prominently in other European RIS3 are advanced materials, advanced industrial production systems and industrial biotech-

8 RIS3 in the French Research and Innovation Context EStIF1 2017 Figure 3: Consideration of Key Enabling Technologies in Aquitaine s RIS3. Source: CGET analysis, available online at <http://www.cget.gouv.fr/sites/cget.gouv.fr/files/atoms/files/cget _sri_si_en-12-2015.pdf>(last accessed on 16 March 2017). nologies. Nanotechnology, micro and nano-electronics and photonics are less emphasised. b. Integration of Digital Issues into the RIS3 Information and communication technologies (ICTs) are highlighted within the industrial primacy priority of Horizon 2020.The purpose of the Information and communication technologies programme is to support the European ICT industry throughout its value chain and to enable European citizens, scientists and businesses to seize the opportunities offered by these technologies. The existence ofastrategicdigitalgrowthframeworkisalsoaprecondition for eligibility for ERDF funding under thematic objective 2: Improve access to, use and quality of information and communication technologies. The French regions defined a Regional Coherence Strategy for Digital Development, which constitutes

EStIF1 2017 RIS3 in the French Research and Innovation Context 9 Figure 4: Integration of Societal Challenges into Lorraine s RIS3. Source: SRI-SI Lorraine. this strategic framework. Digital technologies stand outasadecisivefeatureofthefrenchregions RIS3. A total of 23 French regions identified digital technologies as an innovation driver and as a key issue for the territory. Sixteen French regions defined at least one smart specialisation area directly linked to the digital market. In addition, ten regions defined one or more transverse themes focused on the development and dissemination of digital technologies. c. Linkages Between the French RIS3 and Societal Challenges The Horizon 2020 programme incorporates the following societal challenges: health, well-being, ageing ; food safety, bio-economy; safe, clean and efficient energy ; green and integrated smart transport; climate, environment, raw materials; inclusive, innovative societies with a capacity for reflection, and safe societies. Overall, the regions defined their smart specialisation areas by taking societal challenges into account more or less explicitly, as shown in Figure 4 with the example of how Lorraine s RIS3 integrates societal challenges and KET of the Horizon 2020 programme. A lot of them addressed societal challenges explicitly in their introduction, specifying that the specialisation areas defined respond to these challenges. For other regions, smart specialisation areas covered societal challenges, particularly those of: health, well-being, ageing; safe, clean and efficient energy; green and integrated smart transport; climate, environment, raw materials; and food safety and bio-economy. d. Barriers to Horizon 2020 and ESI Funds Complementarity in Research and Innovation French national and regional authorities point to numerous issues when searching for complementarity between the European sources of funding dedicated to research and innovation, especially between ESI Funds and Horizon 2020: These funding sources depend on two programmes with different objectives, as already mentioned previously. These programmes have very distinct functioning: Horizon 2020 is coordinated by the European Commission and implemented through calls for proposals launched regularly, when ESI funds are managed by the regions through their operational programmes and their RIS3 with little flexibility

10 RIS3 in the French Research and Innovation Context EStIF1 2017 (on budget, type of actions, type of beneficiaries, areas of action, etc.). At the implementation stage, there are some practical issues, such as the State aid regulation that applies to projects benefiting from ESI fund, but not to the projects using Horizon 2020 funds. Identifying the applicants to Horizon 2020 funding, whocouldinsomecasesbenefitfromesifunds, also turns out to be difficult. Documentary analysis and exchanges with regional, local and national actors show that RIS3s allows the creation of complementarities between these two programmes, despite differences observed in their global objectives. Actually the efforts made to build a shared strategy allow actors to cooperate more easily at the implementation stage and projects manager to mix financing supports. 2.French Clusters as Key Actors in Smart Specialisation a. French Clusters Policies as a Strategic Tool to Support Innovation and Economic Development The RIS3 are another component of an overall systemic effort to gain in competitiveness in France. FrenchRIS3didnotemergefromabarefield:efforts to stimulate innovation throughout the research and business communities have been manifold at the national and regional levels. From 2004 onwards, cluster policies have been developed such as the well-established competitiveness clusters. More recently, the national investment programme for the future waslaunchedin2010with 45billionofspendingto encourage research and innovation and facilitate France s transition to the knowledge society, in order to return to strong and sustainable growth. The new Industrial France policy, launched in 2013, is the result of a strategic reflection designed to determine the priorities of French industrial policy. It is thereforeworthlookingathowthesepoliciesandris3fit together. This part illustrates this point in relation to cluster policies, which are wide-spread approach to enhance competitiveness across Europe. Recurrent criticism has been expressed on the fact that French R&D&I efforts and investment were not conducive enough to linking research and business, especially SMEs. Over the last decade, cluster policies have sought to address some of these criticisms about France s competitiveness policy. In 2004, in the context of an increasingly competitive global economy, France launched the competitiveness clusters policy ( pôles de compétitivité ), which resulted in the accreditation of 71 competitiveness clusters(see Figure 5). These clusters were created to mobilise key competitiveness factors, with innovation capacity featuring prominently, and to develop growth and employment in buoyant markets. This policy went through three different supportingphases,eachofthemwasconcludedbyanevaluation of each competitive cluster, highlighting positive results and areas for improvement for the next phase. The last phase initiated in 2013 aimed at encouraging the competitiveness clusters to go down the line of the innovation process and therefore to evolve from managing R&D projects to bringing products and services to the market. The objective was to ensure that competitive clusters had more impacts in terms of economic development and employment. This policy was completed in 2009 by the business hubs policy known as grappes d entreprises : while competitiveness clusters initially focus on the development of R&D and technological innovation, business hubs are positioned on the development of innovationinallitsformsaswellasonactionsforbusinesses closer to the market. 126 business hubs were selected. In 2014, 121 business hubs are still in operation(see Figure 6). Essentially set up and managed by micro-businesses/smes, business hubs are deeply embedded in their territory and, depending on the context, bring together major corporations and training, research and innovation stakeholders. They provide businesses with practical services, in particular to help them consolidate their strategy in their markets and improve their competitiveness. They promote cooperation with other public and private players, notably in the training, employment and skills management and innovation domains. This policy was evaluated ex post in 2015, at the end of the national funding of the animation teams of these clusters(this cluster policy now works withoutdirectnationalfunding).thisevaluation 14 high- 14 Erdyn and Technopolis, Evaluation of French business hubs «grappes d entreprises» (2014), available online at <http://www.cget.gouv.fr/sites/cget.gouv.fr/files/atoms/files/etude-cget-grappes -entreprises.pdf> (last accessed 9 March 2017).

EStIF1 2017 RIS3 in the French Research and Innovation Context 11 lighted how efficient this cluster policy was. It also pointed the structuring impacts of these business hubs,atalocallevel,intermsofeconomicdevelopment and innovation. In addition to the national support framework for clustersandhubsabove,atatimewhenregionswere gaining more and more weight and competences, some regions simultaneously initiated their own clusters support policy. These include the Provence-Alpes Côte d Azur region, with its regional innovation and inclusive economic development clusters (PRIDES) in2006orthenord-pasdecalaisregionwithitsclusters of economic excellence and competitiveness in 2008. b. Clusters as Structuring Actors of French Regional RIS3 French clusters appear to be structuring stakeholders for RIS3 design and implementation in several ways: As historic actors of the French innovation ecosystem, they have played a key role in structuring a strong innovation fabric and dynamic sectors and making them strongly visible, which is useful to define smart specialisation areas with a real critical mass. They enable their members to benefit from their expertise and capabilities in terms of research and innovation project management, financial engineering, etc., which is essential for regions to ensure that their smart specialisation areas will translate into action plans and projects. They also play an interfacing role between the regional and local governments and the innovation ecosystem (SMEs, big companies, research structures, etc.), playing a significant role in economic development and innovation governance, which translatedintotherolethattheyplayedinthedesign of the RIS3 and their animation role at the implementation stage. 15 Erdyn and Technopolis, Evaluation of French competitiveness clusters (E&Y 2016). 16 Erdyn and Technopolis, Evaluation of French business hubs «grappes d entreprises» (2014). More precisely, cluster policies have been key in the definition of smart specialisation areas: More than 60 percent of the smart specialisation areas are configured around at least one competitiveness cluster. Practically all the regions which host competitiveness clusters promoted them as a decisive aspect of the smart specialisation area(see Figure7).Thenationalevaluation 15 ofthecompetitiveness clusters policy also highlights that 59 competitiveness clusters played a key role in the designing of the RIS3 and contribute to the animation of one or several smart specialisation areas. A total of 27 competiveness clusters were given by the region an animation role of a strategic industry or sector. Nearly 60 percent of the smart specialisation areasrevolvearoundacluster,beitaregionalclusterorabusinesshub.whenconsideringonlythe business hubs, nearly 30 percent of the smart specialisation areas are structured around at least one business hub. Generally speaking, among the 23 regions hosting at least one business hub in their territory, 83 percent promoted at least one in their strategy (see Figure 7). Furthermore, the assessment of the business hubs policy revealed that the hubsmentionedintheris3aremorelikelythan others to generate innovations which, at national level, demonstrates the relevance of the choice of the hubs highlighted in relation to the objectives oftheris3. 16 Bywayofillustration,thereisaverycloselinkbetweenthelocationoftheclustersandhubs,andthe regions smart specialisations in the creative industry and in the tourism sector(as illustrated in Figure 8). IV. Conclusions: Looking Ahead The elaboration process of French regional RIS3 gave everyregionanopportunitytosetoutandclarifyits specific characteristics, assets and positioning in termsofinnovationanditsabilitytocompeteondifferent markets. It was also the occasion to mobilise the region s innovation ecosystem, through the entrepreneurial discovery approach, based on a shared strategy. The regions also reinforced their governance in the research and innovation field. Thisturnsouttobeanassetatakeyperiod,when French regions see their competences in terms of economic development strengthened. In practice, the RIS3wereusedasaninputbytheregionstodefine their new regional economic development strategies. Atanationallevel,thedesignoftheRIS3hasbeen the opportunity to make the regional ecosystems

12 RIS3 in the French Research and Innovation Context EStIF1 2017 Figure 5: Map of the 71 competitiveness clusters. Source: CGET analysis, available online at <http://www.cget.gouv.fr/sites/cget.gouv.fr/files/atoms/files/cget _sri_si_en-12-2015.pdf>(last accessed on 16 March 2017). more visible, to facilitate exchanges between regions on this research and innovation field and to ensure that research and innovation support policies are better integrated. There are many conditions to a successful implementation of these new strategies and their impacts willalsodependonhowwellintegratedtheyarein the more global framework of European, national and regional policies and funding. This is obviously a long term changing process that will take time to produce its full benefits for the regional innovation and economic ecosystems, as well as for the territo-

EStIF1 2017 RIS3 in the French Research and Innovation Context 13 Figure6:Mapofthe121businesshubsactivein2014. Source: CGET analysis, available online at <http://www.cget.gouv.fr/sites/cget.gouv.fr/files/atoms/files/cget _sri_si_en-12-2015.pdf>(last accessed on 16 March 2017). ries and their inhabitants. It is therefore early to assess the real impacts and value added of smart specialisation. Inthiscontext,itwillbenecessarytohaveathorough evaluation process of the first impacts of smart specialisation in 2020:

14 RIS3 in the French Research and Innovation Context EStIF1 2017 Figure 7: Competitiveness clusters and business hubs promoted in the regional RIS3. Source: CGET analysis, available online at <http://www.cget.gouv.fr/sites/cget.gouv.fr/files/atoms/ files/cget_sri_si_en-12-2015.pdf>(last accessed on 16 March 2017). Itwillforexamplebekeytolookattheimpacton the territorial balance, the economic fabric and the research and innovation ecosystems dynamics. The smart specialisation process could tend to focus the support on the well-structured, highly visible, already strongly supported stakeholders (firms, etc.) with a strong ability to implement rapidly structuring projects. This could mean that smaller, less-structured and riskier activities and actors such as start-ups could be less supported, whentheycanbearealsourceofinnovationand economic development processes.

EStIF1 2017 RIS3 in the French Research and Innovation Context 15 Figure 8: Location of the competitiveness clusters and business hubs and regions choice of smart specialization,inthecreativeindustryandinthefieldoftourism. Source: CGET analysis, available online at <http://www.cget.gouv.fr/sites/cget.gouv.fr/files/atoms/files/cget _sri_si_en-12-2015.pdf>(last accessed on 16 March 2017). Moreover,itcanbeassumedthatthequalityofthe governance, the depth of its synergies with the research, innovation and economic actors, and its ability to define strategic choices and implement a vision might impact strongly the performance of the economic ecosystems. A poorly adapted choice process, for example with a lack of strategic vision and little anticipation of economic changes, could translate into worse-off economic fabric. Finally, after this first experience of implementing smart specialisation, it will be useful to adjust and clarify the smart specialisation concept and process,sothatitiswell-suitedtolocalneedsand it can better benefit the territorial and economic development of the regions. Nevertheless, in terms of the overall smart specialisation approach, some conclusions and questions can be highlighted for this policy in a post-2020 perspective: An integrated approach as a key feature when deploying strategic instruments in support of the development of territories, and specifically in favour of innovation and economic ecosystems: RIS3 are a significant example of how European, national and regional policies could be integrated to enable efficient public actions and the development of territories. This strategic framework, as a shared instrument, strengthensthelinksbetweenthevariousactorsofthe innovation and economic ecosystems. As demonstrated previously, the integration with the more global framework in support of research and innovation is also essential to ensure the best efficiency of public action and the strongest impact on the territories. For example, clusters policies and interclustering approaches seem to be key elements to foster smart specialisation (and actions such as the call for tenders Towards European Strategic Cluster Partnerships for Smart Specialisation Investments could be replicated). The complementarities and synergies between European Horizon 2020 and ESI funds for research and innovation should be further supported, in order to enable the regions tooptimisetheuseofthesefundsforthebenefits of the regional research and innovation ecosystems: for example, by applying the same State aid regulation framework, extending the stairways to excellence projects to all EU Member States to facilitate exchange of best practices, etc. In order to ensure that smart specialisation has a real impact on economic and territorial development,itwillbenecessarytoensurethatthe right skills and human resources are available

16 RIS3 in the French Research and Innovation Context EStIF1 2017 locally to support innovations processes on the long term and to turn innovation into industrialisation and production. This implies reinforcing the link between RIS3 with employment, education and training policies. The importance of adopting a flexible territorial approach when translating smart specialisation locally: When applying the concept of smart specialisation, French regions have translated this concept taking into account their regional context and specificities. The French experience highlights that smart specialisation strategies established by regions helped making strategic choices on the basis of a broad consultation with local research and innovation actors, adapting the European strategy to the necessities of the territories and to real needs of local ecosystems. The need for a strong inter-territorial cooperation approach: Fostering a strong inter-territorial approach when applying smart specialisation is crucial, to ensure a real levelling-up of the research and innovation ecosystems. Exchanges between regions are therefore essential. Exchanges could for example be encouraged between innovation leaders and between innovation followers or between regions sharing the same smart specialisation areas. This could foster positive emulation and partnerships between regions. The inter-regional cooperation promoted in the RIS3 was unevenly applied according to the region. The vast majority of regions are involved in inter-regional cooperation at a national, European or international scale, albeit to varying extents. The use of smart specialisation strategies for cross-border programmes or other inter-regional and trans-national cooperation initiatives should be facilitated.