Corpakis Baltic Final51011

The EU 2020 Strategy – Enhancing Innovation in the Baltic Sea RegionDimitri CORPAKISEuropean Commission05/10/11Directorate General for Research and Innovation

The knowledge economy is here with a priceDivision of labour at global scale, increased internationalisation and global capital flows, coupled with the disparities of the knowledge economy may drive several European regions to technological obsolescence (failing clusters)Regions need to reposition themselves at global level

Some telling facts about EuropeKnowledge flows inside Europe (i.e. flows of students, electronic academic links, co-publications and co-patenting cooperation) very unbalancedstrong concentration amongst a few Western European countries In 2008, almost 11 % of the total EU budget was devoted to research and innovation, compared to less than 3 % in 1985. In most EU-12 Member States, Structural Funds directed to Research, Technological Development and Innovation represent more than 60 % of the national R&D budget, and even more than 100 % in a few cases. EU Research Framework Programme represents some 20 % to 25 % of all project-based funding in Europe. Source: Innovation Union Scoreboard 2011

The Heat-map of scientific collaboration in Europe 2005-2009

Europe 2020 strategy3 Clear objectivesSmart, sustainable and inclusive growthInvest 3% of GDP in R&D by 2020Focus on InnovationResearch and innovation funding contributes directly to the achievement of Europe 2020 (Innovation Union flagship initiative)

Europe 2020 strategySmart growthTurn Europe to a knowledge and innovation economy New sources of growth and creation of new jobs require national efforts to boost research and innovation, upgrade education and remove barriers to entrepreneurshipHarness the untapped potential of the single marketUse EU funds to drive the public sector towards new growth paths, stimulating discovery, innovation and entrepreneurship

Europe 2020 Strategy Smart growthResearch, innovation and educationResearch and Innovation boost productivity and growth

Future research and innovation investments expected to have even stronger impact in terms of growth and job creation

significant social and environmental returns

Current Framework Programme estimated to bring 900,000 jobs and to add 1% to the EU's GDPEurope 2020: 3% objective can still delivermeeting the Europe 2020 target of increasing R&D investment to 3 percent of GDP could create 3.7 million jobs and increase annual GDP by up to €795 billion by 2025. One million extra researchers will be needed.Source: P. Zagamé, (2010) The cost of a non-innovative Europe, http://ec.europa.eu/research/social-sciences/policy-briefs-research-achievements_en.html

Europe 2020 StrategySmart growthResearch, innovation and educationInnovation Union Flagship Initiative A plea to the Member States to:invest in R&D and innovationcreate the right framework conditionsensure that remaining barriers for entrepreneurs to bring "ideas to market" will be removed by:better access to financeaffordable IPRfaster setting of interoperable standardsstrategic use of the procurement budgets

Regional Innovation Performance taxonomySource: Regional Innovation Scoreboard, 2009

GERD, 2007 (Source DG REGIO, EUROSTAT)

Concordance of regional innovation typologies

A case in point : the EU Baltic Sea Strategy The research contextComplex and pressing environmental problems in the Baltic Sea that need urgent attention;Need for holistic, integrated and multi-disciplinary approaches through for solutions through research and innovation; Long tradition of research collaboration in the region;However:efforts have been to a large extent un-coordinated and fragmented;most national RTD funds to sector-oriented institutions that are not subject to competitive calls; Uneven level of scientific competence,financial resources and “infrastructural” support among stakeholder Member States;Therefore, limited possibilities to address environmental challenges efficiently and effectively, unless a joint well coordinated strategy is in place

From ERA-NETS to full-scale cooperationCurrent BONUS programme 2010-2016 comes as a follow-up of BONUS ERA-NET and BONUS+. BONUS ERA-NET (2004-2008), instrumental for a Joint Baltic Sea Research Programme. BONUS+ pilot initiative that stimulated collaboration among the national funding institutions (first call for proposals launched in 2007)First Bonus project funded under the ERA-NET scheme as part of the FP6 2002-2006, was funded by the EU as well as all members and associated members of the EEIG. Its successor, Bonus+ was two thirds coming from national funding agencies and one third funded by EU ERANET+. During the actual phase of the project for the period 2010-2016, half of the funding (€50 million) come from EC funding and the remaining 50% of the budget from national contributions.Through different BONUS initiatives, the key research funding organisations from all the EU member states around the Baltic Sea have strengthened networking and exchanges. BONUS+ a Joint Baltic Sea Research Programme to fund research opened a new stage of cooperation through a call for proposals launched in 2007. The programme has funded a total of 16 projects involving over 100 research institutes and universities and has set out to test the mechanisms of collaboration among national funding institutions.

BSR R&I stakeholders by type (TECHNOPOLIS, 2011)

Baltic Sea regions as Innovators Using the 2009 regional innovation scoreboard rankings, the Baltic Sea regions can be split into three broad groups:i) Highly innovative with significant strengths in both business innovation and academic R&D: Nordic capital regions and regions with a high tech advanced business or research poles (Gothenburg, Oulu, Turku, etc.). In many of these regions, business strategies are the driving force in innovation funding (accounting for over 60% of investment), while public interventions focus on developing new and emerging platforms.ii) Medium-high innovators but with weaker business innovation: Nordic secondary regions (East Finland, northern Sweden, rural parts of Denmark), Schleswig-Holstein and Mecklenburg-Vorpommern, Estonia (latter somewhere in between 2nd and third groups). Investment tends to be driven by a mix of public and higher education sector but with average to above average business performance.iii) Low to medium-low innovators driven essentially by public (& higher education) investment: the three Polish regions (with Pomorskie better placed), Latvia and Lithuania.Hence, these distinctive innovation systems imply a need for different policy ‘mixes’.Source: TECHNOPOLIS Baltic Sea Innovation Study (2011) for DG REGIO

BSR (almost) smartly specialised(source TECNOPOLIS study for DG REGIO (2011))Although the regions of the ‘south-east coast’ of the BSR are significantly weaker in terms of technological innovation capacities and potential these regions may be classified as ‘knowledge absorbing regions’, in the sense that their first priority should be to upgrade productivity of the business sector through ‘embodied innovation’ (acquisition of machinery and equipment, retraining, etc.). However, emerging ‘clusters’ in the German and Polish regions and the Baltic States provide a basis around which a smart specialisation policy can be built.A significant share of current business activity is related to a natural ‘specialisation’ or industrial traditions that are major employers and the development of such sectors, not always considered amongst ‘high-tech’ policy priorities. These include construction, wood, paper and pulp, minerals and metals, and a critical sector in many of the BSR regions, namely food & drinks.Smart specialisation policies need to take such sectors into account when deciding where to prioritise investments into innovation infrastructure. Equally, services including (maritime) transport but also financial and business services merit attention.As a whole the BSR, does appear to be ‘specialised’ in a certain number of key technology fields, notably ICT and biotechnology (a more detailed analysis by subfields would be required to understand where synergies and complementarities exist between regions). Such common specialisation offers the potential for BSR wide technology programmes.

BONUS- A joint research programme for the Baltic SeaPolicy makers and stakeholdersHigh excellence and relevance SRACooperationHuman capacity building Established by the European Parliament & Council on the basis of a Commission proposal (22.9.2010). Vision: An economically and ecologically prosperous Baltic Sea region where resources and goods are used sustainably and where long-term management of the region is based on sound knowledge derived from multidisciplinary research. 8 countries around the Baltic Sea (+ Russia).

BONUS StrategyA joint programme integrating international, collaborative, interdisciplinary research that supports sustainable development of the Baltic Sea region: Understanding the Baltic Sea ecosystems

Meeting the multifaceted challenges that link the Baltic Sea with its coast and catchment

Enhancing sustainable use of coastal and marine goods and services.

Improving societies capability to address current and future challenges.

Creating innovative Baltic marine observation and data management systems, tools and methods.BONUS brings innovation through smart specialisation BONUS acts jointly with EU Strategy for the Baltic Sea Regions project ”BSR Stars” which aims at creating a transnational innovation and programme through cluster developmentIn particular BONUS plans 2 calls to support innovation for Baltic Sea environmental sustainable development under strategic objectives:meeting challenges linking the Baltic Sea with its coast and catchment

Enhancing sustainable use of coastal, marine goods and services.

Creating innovative marine observation and data management systems, tools and methods.

Web site: http://www.bonusportal.org/Baltic Sea Region StarsFlagship programme BSR Stars aims to strengthen the competitiveness and economic growth in the Baltic Sea RegionThrough promoting cross-border links between research and innovation hubs, strategic innovation alliancesBSR Stars dedicated to find smart solutions with scientific methods on common challenges in areas such as health, energy, sustainable transport and digital servicesBSR Stars have been granted funding from the Structural Funds for the Baltic Sea RegionProgramme managed by Lithuania and Sweden

Factors shaping future EU research and innovation policiesUnprecedented challenges requiring innovative solutions……..Globalisation reshaping balance of economic power across the planet and redefining competitiveness for countries and regionsDifficult road to economic recovery, return to growth and to higher levels of employmentcombating climate change and moving towards a low-carbon societydemography natural resources depletion and managementglobal security challenges growing in scale and sophisticationageing population persistent dependence on fossil fuel…..providing nevertheless powerful opportunities to develop innovative products and services, creating growth and jobs in Europe.

Emerging priorities Tackling societal challengesGoing beyond the conventional research consortium approach for more flexibility, creativity and inter- disciplinarityInnovation Union introduces the concept of European Innovation Partnerships bringing together supply and demand side measures in addressing societal challenges. Important role in coordinating efforts and focusing activities across the innovation cycle. A good example : the strategic approach of the SET-plan (clear priorities, well-defined governance structures and progress assessment function)

Emerging priorities (II)Strengthening competitivenessMaximize performance and impact of RDI fundingStep up product and process development cycle from the laboratory through to commercialization and application. Critical role for industry in setting priorities, in particular in the context of public-private partnerships. Need for broadening support across the full innovation cycle (including proof of concept, testing, piloting and demonstration), but also post-project follow-up, pre-normative research for standard setting, support to patenting and to non-technological innovationSecuring a strong position in key enabling technologies such as ICT, nanotechnology, advanced materials, manufacturing, space technology, or biotechnology, of vital importance to Europe's competitiveness (while also needed for addressing societal challenges)

Emerging priorities (III)Strengthening Europe's science base and the European Research Area (building excellence)In a genuinely unified ERA, main responsibility for building a competitive public science base lies with the Member States while EU initiatives add value to the whole processModernisation of critical research infrastructure needs also to be supported by Cohesion policyInnovation Union calls for completion of ERA by 2014, including through legislationGlobalisation trends call for more intensive internationalisation of European research and innovation efforts

About the recent Green Paper on CSFRIProposing major changes to future EU research and innovation fundingBringing together the FP, CIP and EIT into a Common Strategic FrameworkStandardising the rulesSimplification (single entry points, common IT platforms, etc)For the next EU Budget(to start in 2014)Bringing togetherThe 7th Framework Programme for research, technology development and demonstrationThe Competitiveness and Innovation Framework ProgrammeThe European Institute for Innovation and TechnologyAnd strengthening synergies and complementarities with the Structural Funds

Why a Common Strategic Framework ?Programme simplificationstandardised rules across all initiativesa rationalised toolkit of schemes that are common to all programmescommon entry points, one stop shops, common IT platformsGreater impact:support for projects and organisations from research to marketstronger support across the whole innovation cyclecommon strategic priorities, focusing on societal challenges, competitiveness and research excellence.

Corpakis Baltic Final51011

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