Directorate General for Research and Innovation

05/10/11

Dimitri CORPAKISEuropean Commission

The EU 2020 Strategy – Enhancing Innovation in the Baltic Sea Region

The knowledge economy is here with a price

• Division 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 Europe• Knowledge flows inside Europe (i.e. flows of students, electronic

academic links, co-publications and co-patenting cooperation) very unbalanced– strong 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 strategy• 3 Clear objectives– Smart, sustainable and inclusive growth

• Invest 3% of GDP in R&D by 2020

• Focus on Innovation• Research and innovation funding contributes

directly to the achievement of Europe 2020 (Innovation Union flagship initiative)

Europe 2020 strategySmart growth

• Turn 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 entrepreneurship

• Harness the untapped potential of the single market• Use EU funds to drive the public sector towards new

growth paths, stimulating discovery, innovation and entrepreneurship

Europe 2020 Strategy Smart growth

Research, innovation and education

• Research 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 GDP

Europe 2020: 3% objective can still deliver

• meeting 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 Strategy Smart growth

Research, innovation and education

Innovation Union Flagship Initiative

• A plea to the Member States to:– invest in R&D and innovation

– create the right framework conditions

– ensure that remaining barriers for entrepreneurs to bring "ideas to market" will be removed by:

• better access to finance• affordable IPR• faster setting of interoperable standards• strategic use of the procurement budgets

Regional Innovation Performance taxonomy

Source: 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 context

• Complex 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 cooperation• Current 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 Sea

• 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).

High excellence and relevance SRA Cooperation Human capacity building

Policy makers and stakeholders

BONUS Strategy

A 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 development

• In 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 Stars

• Flagship programme BSR Stars aims to strengthen the competitiveness and economic growth in the Baltic Sea Region

• Through promoting cross-border links between research and innovation hubs, strategic innovation alliances

• BSR Stars dedicated to find smart solutions with scientific methods on common challenges in areas such as health, energy, sustainable transport and digital services

• BSR Stars have been granted funding from the Structural Funds for the Baltic Sea Region

• Programme managed by Lithuania and Sweden

Factors shaping future EU research and innovation policies

• Unprecedented challenges requiring innovative solutions……..– Globalisation reshaping balance of economic power across the planet and

redefining competitiveness for countries and regions

– Difficult road to economic recovery, return to growth and to higher levels of employment

– combating climate change and moving towards a low-carbon society

– demography

– natural resources depletion and management

– global security challenges growing in scale and sophistication

– ageing 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 challenges– Going beyond the conventional research consortium

approach for more flexibility, creativity and inter- disciplinarity

– Innovation 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 competitiveness

– Maximize performance and impact of RDI funding– Step 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 innovation

– Securing 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 process

– Modernisation of critical research infrastructure needs also to be supported by Cohesion policy

– Innovation Union calls for completion of ERA by 2014, including through legislation

– Globalisation trends call for more intensive internationalisation of European research and innovation efforts

About the recent Green Paper on CSFRI• Proposing major changes to future EU research and innovation

funding– Bringing together the FP, CIP and EIT into a Common Strategic Framework– Standardising the rules– Simplification (single entry points, common IT platforms, etc)

• For the next EU Budget (to start in 2014)• Bringing together

– The 7th Framework Programme for research, technology development and demonstration

– The Competitiveness and Innovation Framework Programme– The European Institute for Innovation and Technology

– And strengthening synergies and complementarities with the Structural Funds

Why a Common Strategic Framework ?Programme simplification

• standardised rules across all initiatives• a rationalised toolkit of schemes that are common to all

programmes• common entry points, one stop shops, common IT platforms

Greater impact:

• support for projects and organisations from research to market

• stronger support across the whole innovation cycle• common strategic priorities, focusing on societal challenges,

competitiveness and research excellence.

A word on synergies between CSF for R/I and Cohesion policy

Cohesion Policy

Funding for RTD

and innovation 2007-2013

Cohesion Policy support for Innovation:

4% in 89’-93’

7% in 94’-99’

11% in 00’-06’

25% in 07’-14’

How the Structural Funds can stimulate R&D and Innovation investment in European regions

• Fund R&D infrastructure and equipment (conventional approach- still valid)

• favouring the establishment of medium and long term R&D and innovation investment strategies through Smart Specialisation (coupled with increased conditionality and clear thematic priorities)

• help create the appropriate framework conditions for stimulating R&D and innovation especially in connecting academia and industry

• stimulate the emergence of clusters of technological competence / excellence involving especially SMEs

• Favouring peer review through international expertise to raise quality in terms of strategy and delivery

The MFF 2014-20 as announced – Cohesion Policy

43.24

10.37 %

14.12

3.11

18.27

0.24

10.63

%

The MMF as announced CSF RI

It was proposed to increase the expenditure ceilings for Horizon 2020, the CSF RI to some EUR 80,2 billion in 2011 prices. This represents an increase of around 46% compared to the current programming period and almost 66% compared in current prices

On the Net• Innovation Union• http://ec.europa.eu/research/innovation-union/index_en.cfm?pg=home• Regional aspects of FP7• http://ec.europa.eu/research/regions/index_en.cfm?pg=map• Regions of Knowledge• http://cordis.europa.eu/fp7/capacities/regions-knowledge_en.html• Unlocking Research Potential• http://cordis.europa.eu/fp7/capacities/convergence-regions_en.html• Practical Guide to EU funding opportunities for Research and Innovation• http://cordis.europa.eu/eu-funding-guide/home_en.html• Competitiveness and Innovation Framework Programme (CIP)• http://ec.europa.eu/cip/index_en.htm• EU Regional Policy• http://ec.europa.eu/regional_policy/index_en.htm

08/02/11 CE-DG Recherche et Innovation C5 37

Thanks for your attention!