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Working Group 3: How can regional development policy and RDAs best support the economic dimension of growth and job creation? Implementing Regional Development Policies: What are the key factors for success? Moderator: Frank Waeltring Panellists: Zdravko Miovčić, Dr Saša Drezgić

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Page 1: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Working Group 3: How can regional development policy and RDAs best support the economic dimension of growth and job creation?

Implementing Regional Development Policies:What are the key factors for success?

Moderator: Frank WaeltringPanellists: Zdravko Miovčić, Dr Saša Drezgić

Page 2: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

1. How can intervention priorities be selected with the highest impact and sustainability with regard to economic development in the location/region?

2. What are the most successful approaches for analysing the local and regional economic reality, integrating a strong understanding of the competitiveness of local businesses and their market strategies?

3. What is the role of regional institutions within a place-based approach in coordinating economic development activities with national and municipal entities?

4. How do we ensure the integration of the business sector and coordination and cooperation with other important SME support organisations in the territory?

Introduction (1)

Guiding Questions:

Page 3: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Reflection on each question:

• What did you experience in your own practice?

• What are the key success factors?

Workshop objectives: Identification of main success considerations

Introduction (2)

Page 4: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Introduction (3)

Source of information through? RDA interviews

Cases from Poland, Croatia, BiH and Serbia

Page 5: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Introduction (4) Ideal role of RDAs in regional policy

Context matters:Role of RDAs depends on policy & ways of evolution

Source: Mesopartner/EDA (2014)

Page 6: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Development contexts differ very much from country to country

System logic of RDA evolution

Source: Mesopartner/EDA (2014)

Introduction (4)

Page 7: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

There is not one best way: Different starting points and opportunities

Evolution of RDAs in 4 countries

Source: Mesopartner/EDA (2014)

Introduction (5)

Page 8: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Change of priorities over time

Competitiveness orientation becomes more important over time

Introduction (6)

Page 9: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Guiding Question 1

How can intervention priorities be selected with the highest impact and sustainability with regard to economic development in the location/region?

Page 10: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Q-1: Selecting intervention priorities (1)

“Often we can’t see the forest for the trees”

• Identification of systemic intervention priorities that tackle key competitiveness challenges of businesses & organisational development aspects at municipal and regional level (e.g. bureaucratic procedures)

• Need to compromise between intervention priorities defined in local/regional strategies vs. funding opportunities offered by the EU, IPA or other donors

• Serbia and in BiH: the selection of the intervention priorities is sensitive to political influence and changes

Key challenges

Page 11: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

• Serbia: implementation of the Vojvodina standard, a flexible package of interventions defined at the regional level

• BiH: some donor projects integrate managers from sectors who have a key role in selecting intervention priorities using specific kinds of private-public dialogue

• Poland: Promoting smaller change interventions with a strong impact instead of a few large interventions. It means shifting away from large infrastructure programmes towards the objective of changing mind-sets and promoting network relations

• Croatia: assure close contact with municipalities and business associations

Lessons learned

Q-1: Selecting intervention priorities (2)

Page 12: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

• Which stakeholders need to be included in the identification of intervention priorities?

• How do we assure the identification of the most relevant intervention priorities?

• What tools can be used to identify more specific catalytic initiatives for economic transformation and growth in specific regions?

Some questions to discuss…

Q-1: Selecting intervention priorities (3)

Page 13: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Guiding Question 2

What are the most successful approaches for analysing the local and regional economic reality, integrating a strong understanding of the competitiveness of local businesses and their market strategies?

Page 14: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

BiH and Serbia: • Move from data- and expert-based analysis towards the analysis of competitiveness of

local businesses, their market strategies, market and government failures• Stronger reflection with businesses and sectors on key business gaps and requirements • Strengthening bottom-up analysis vs. top-down analysis Poland: • Increasing awareness about organisational development challenges of business

associations and municipalities in defining real business- and sector needsCroatia: • Awareness in RDAs of own weaknesses with regard to business and market insights.

Self understanding is still focused on service provision vs. change promotion

Key challenges

Q-2:Ways to analyse economic realities (1)

Page 15: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

BiH: • Donors follow up a more qualitative, business-oriented approach combining

private-public dialogue mechanisms, workshops and interviews to identify targeted interventions

• Inputs are gathered from real market players. Experts facilitate communication focused on real key competitiveness issues

Poland:• Promotion of clusters and value chain approaches to get into closer contact with

businesses and research institutions and to identify key business- as well as technology challenges

Croatia: • Promotion of innovation and technology development platforms to understand

better key business sector innovation challenges

Lessons learned

Q-2:Ways to analyse economic realities (2)

Page 16: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

• How is it possible to promote a stronger business-oriented and systemic approach in certain sectors at the regional level and to also challenge the existing local supporting institutions in their roles of service provision?

• How can RDAs increase their competitiveness understanding including insights into value chain, cluster challenges and opportunities to understand better and tackle market and government failures?

Some questions to discuss…

Q-2:Ways to analyse economic realities (3)

Page 17: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Guiding Question 3

What is the role of regional institutions within a place-based approach in coordinating economic development activities with national and municipal entities?

Page 18: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Poland and Croatia (bottom-up approach): • Main coordination efforts emerged from a bottom-up approach in close cooperation

with the regional policy level • Proactive integration of RDAs in the coordination process at the national level is missingSerbia (top-down approach): • The set-up of RDAs was very much a decision at the national level (top-down) • Cooperation with regional bodies is just emergingBiH (“empty institutional space”): • Complete lack of national support and politisation • Change of RDA focus from a strategic perspective to a project and donor-oriented

perspective

Key challenges

Q-3:Key coordination role of RDAs (1)

Page 19: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Croatia and Poland: • Decentralisation increased role and cooperation between RDAs and regional

governments• Regional cooperation is decisive to coordinate priorities. Municipal cooperation and

trust is decisive for information collection and implementationSerbia: • Hope on EU as key promoter and driving force in fostering regional (economic)

development • Making use of IPA transnational and cross-border funds to increase regional

coordinationBiH: • Strategic coordination is non-existent but valuable projects start to promote

coordination and integration of more business-driven approaches

Lessons learned

Q-3:Key coordination role of RDAs (2)

Page 20: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

• How can we coordinate regional economic development activities with national and municipal entities without appropriate regional structures? Are such structures really necessary?

• How can coordination be increased between regional and national institutions? Is this form of coordination really an important success factor?

Q-3:Key coordination role of RDAs (3)

Some questions to discuss…

Page 21: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Guiding Question 4

How do we ensure the integration of the business sector and coordination and cooperation with other important SME support organisations in the territory?

Page 22: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

BiH and Serbia: • Integrating business knowledge stronger into the analysis • Move from a planning to a competitiveness-orientated approach • Getting the buy-in of businesses through the initiation of concrete initiatives addressing

responsibilities of local businesses and supporting institutions

Poland and Croatia: • Overcoming the approach of providing mainly services for business instead of

initiatives with businesses• Improving capabilities of business- and municipal organisations in the analysis of real

competitiveness challenges • Promoting concrete change- and matching initiatives between supporting institutions

and businesses vs. additional services

Key challenges

Q-4: Business & institutional integration (1)

Page 23: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

BiH and Serbia: • First experiences with sectoral boards and moderated dialogue between the

private sector and supporting institutions (NERDA in Bosnia) and a cluster approach (REDAH in Herzegovina)

• Some RDAs continue to keep close relationships with the businesses from their past role as SME agencies

Croatia and Poland: • Promotion of cluster approaches has also forced the RDAs to become more

business-integrative• Learning from good practices from development agencies in EU countries that

promote rather change-oriented smaller interventions than infrastructure projects

Lessons learned

Q-4: Business & institutional integration (2)

Page 24: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

• Do SME-supporting institutions, as well as RDAs, really understand their mission and the necessity of working much closer with the business sector?

• Do RDAs monitor and evaluate their own performance towards improving the competitiveness of SMEs and the growth of the local/regional economy?

Q-4: Business & institutional integration (3)

Some questions to discuss…

Page 25: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Working group reflection

For each question:

• What did you experience in your own practice?

• What are the key success factors?

What is your opinion on the 4 questions ?

Page 26: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

Thank you for your kind attention!

Frank Waeltring [email protected]

Page 27: Frank Waeltring - How can regional development policy and regional development agencies best support economic dimension of growth and job creation?

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