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Bremen 16-17 October 2003

International Conference on Entrepreneurship and Business Incubation - Strengthening the Regional Innovation Profile -. Bremen 16-17 October 2003. Indicators for Regional Innovation Performance. Fabienne Corvers European Commission DG Research fabienne.corvers@cec.eu.int.

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Bremen 16-17 October 2003

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  1. International Conference on Entrepreneurship and Business Incubation - Strengthening the Regional Innovation Profile - Bremen 16-17 October 2003

  2. Indicators for Regional Innovation Performance Fabienne Corvers European Commission DG Research fabienne.corvers@cec.eu.int

  3. Towards the knowledge-based economy • ERA (2000):European Research Area • Lisbon European Council (2000):vision ‘Europe to become the most competitive and dynamic knowledge- based economy in the world by 2010’ • Barcelona European Council (2002):target ‘3% GDP average investment in R&D by 2010’ and ‘2/3 financed by business, 1/3 financed by government’ • 2000-2010:RTDI top priority for EU

  4. The European Research Area • New vision for European research • Avoid 15 (25) + 1 policy framework • Reduce fragmentation of effort • Improve use of scarce resources • Important role for regions • Message: need to pay more attention to regional actors and factors within EU and MS research policy • Role for regions: bridging the gap between knowledge creators and knowledge users in each region • Starting point: identification of regional needs

  5. Theoretical background New Economic Geography Source: Koschatzky, 2003

  6. Macro level:National innovation systems, ‘learning economy’: impacts of national institutional fabric on innovation processes and on the competitiveness of firms • Meso level:regional innovation systems, learning regions: argue with governance structures/MLG relationships; public vs private, old vs new economy innovation systems • Micro level:different cluster, network and milieu-oriented approaches: spatial proximity, external effects, knowledge spillovers, culture and identity, embeddedness

  7. Innovation is an interactive process The Chain-Linked Model of Innovation by Kline and Rosenberg, 1986

  8. Framework Conditions Financial environment; taxation and incentives; propensity to innovation and entrepreneurship; mobility ... Demand Consumers (final demand) Producers (intermediate demand) Education and Research System PoliticalSystem Industrial System Large companies Professional education and training Government Intermediaries Researchinstitutes Brokers Higher education and research Governance Mature SMEs New, technology- based firms The potential reachof public policies ... Public sector research RTD policies Infrastructure IPR and information Innovation and business support Banking, venture capital Standards and norms The innovation systemmodel: a heuristic tool Source: Technopolis 2000, modified and extendedby S. Kuhlmann, 2003

  9. Regional innovation system Science sector/ Technology supply innovation systems national and supranational Universities Engineering Research facilities Economic services TT Institutions Innovation Policies Financial support services Technology-related information and training Regional policies Consultancy Networking National/international between the policies Venture capital different elements of Technology centres/ Infrastructure Industrial base science parks Customers the regional innovation Technical Suppliers infrastructures system Competitors Potential and actual educational level of the workforce Sub-contractors Sectoral/Technological Quality of living Cooperation environment partners Regional "Milieu" or Inter- firms R&D environment innovation systems "innovative culture" relations Investments Employee Firm's branch qualification and size Firms' R&D efforts Source: Koschatzky, 2003

  10. Regional RTDI Indicators • Indicators: • powerfulpolicy tool • Emphasis on input indicators • R&D expenditures by institutional sector • R&D personnel by institutional sector • Some output indicators • Patent and high tech patent applications • Employment in high tech sectors

  11. More output indicators needed • Innovation expenditure as a percentage of turnover • Increase in market share due to new/improved products or introduction of new/improved processes • changes in labour productivity over the past 5 years • Even more process indicators needed • Linkages between knowledge creators and knowledge users within region (university-industry) • Linkages of regional knowledge creators and users with those outside region (mobility, joint projects)

  12. Advantages and Disadvantages • Input/Output indicators: • Components of regional innovation system • Focus on capacities in terms of resource endowment (‘knowledge stocks’) • Criticism: static view of the region • Regional data: available and EU-wide comparable • Process indicators: • Interfaces between components of RIS as well as between RIS and external world (‘knowledge flows’) • Idea: quality of interfaces determines innovative capabilities of system (dynamic view) • Limited availability of (EU-wide comparable) data

  13. Four dimensions to measure the performance of innovation system • Research capacity: • proportion of scientists and engineers (S&E) in the workforce; public investment in R&D (GOVERD and HERD); number of scientific publications produced per capita • Social and Human capital: • percentage of GDP spent on education; percentage of working population with third-level qualifications; the degree of participation in life-long learning

  14. Technological and innovative performance: • amount of R&D performed by industry (BERD as a % of GDP); number of patents per capita; innovation expenditure as % sales • Absorption capacity: • capacity of firms to renew product ranges; improvements in labour productivity; overall trade performance

  15. Source: Soete et al. 2001

  16. Possibilities with regional RTDI indicators • Single dimension • Top 10 of ... • Matrix of two dimensions, e.g. • regional GDP and R&D expenditure (GERD) • R&D investments (GERD) and R&D performance (patents) • R&D expenditures by institutional sector and source of funding by institutional sector • More than 2 dimensions: • single index and composite indicator

  17. Combining RTDI indicators with other regionalised indicators, e.g. • share of total employment in agriculture • share of youth unemployment • share of highly qualified people on labour market • Develop new indicators and design data collection methods (survey, expert panels, interviews, …) • To measure quality of intra-RIS linkages • To measure extent and nature of extra-RIS linkages (trade, import of equipment, foreign investments in region, investments by regional firms abroad, …)

  18. Source: FhG-ISI, 1995

  19. More information • Third European Report on Science and Technology Indicators ‘Towards a Knowledge-Based Economy’http://www.cordis.lu/indicators • Communication on the Regional Dimension of the European Research Area adopted on 03.10.2001 http://europa.eu.int/comm/research/index_en.cfm, http:// europa.eu.int/comm/research/press/2001/pr0410en.html • ERA-NET Scheme http://europa.eu.int/comm/research/fp6/coordination/era-net_en.html, http://www.cordis.lu/coordination/era-net.htm • EUROSTAThttp://europa.eu.int/comm/eurostat/

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