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The role of universities in Smart Specialisation

The role of universities in Smart Specialisation. John Edwards JRC IPTS - S3 Platform Berlin , 27 November 2013. Context of 2014-2020 funding cycle. Europe's challenges: Lack of economic growth following economic and financial crisis

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The role of universities in Smart Specialisation

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  1. The role of universities in Smart Specialisation John Edwards JRC IPTS - S3 Platform Berlin, 27 November 2013

  2. Context of 2014-2020 funding cycle • Europe's challenges: • Lack of economic growth following economic and financial crisis • Increasing imbalances across the continent (and within many countries) • High social costs of austerity and declining public confidence • Increased competition from other parts of the world

  3. Context of 2014-2020 funding cycle • Europe's responses: • Sound public finances • Structural reforms – restoring competitiveness (e.g. more flexible labour markets, completing of the single market) • Smart consolidation – protect pro-growth budgets • Innovation to compete globally and tackle social and environmental challenges (Europe 2020)

  4. Investment in R&D is part of the solutionto exit from the economic crises

  5. Isthere a link betweeninnovation and regional growth?“The general consensus…is that the driving force behind long-term economic growth is science, technology and innovation in its different forms and facets” (OECD 2011: Regions and Innovation Policy) Source: Mikel Navarro et al, Basque Competitiveness Institute 2010. "Until the 1980s, technology and innovation were under recognised influences in the explanation of differences in the rates of economic growth between regions in advanced industrial nations..."(Townroe)

  6. Innovation Union for Europe • One of seven flagship initiatives of Europe 2020 • Aim is to create the best conditions ('ecosystem') for researchers and entrepreneurs to innovate • A broad approach to innovation (not just high tech, also product, service, social, public sector, eco) • 34 commitments – 24 & 25 concern structural funds and smart specialisation

  7. "Smart Specialisation is a strategic approach to economic development through targeted support to Research and Innovation" What is Smart Specialisation ? = priority setting in times of scarce resources = getting better / excel with something specific = focus investments on regional comparative advantage = accumulation of critical mass = not necessarily focus on a single sector, but cross-fertilisations = evidence-based: all assets = no top-down decision, but dynamic/entrepreneurial discovery process inv. key stakeholders = global perspective on potential competitive advantage & potential for cooperation = source-in knowledge and technologies etc. rather than re-inventing the wheel

  8. In a nutshell: Smart Specialisation is based on 4 Cs Competitiveadvantage: match R&I with business and develop links (related variety); adoption of (generic/new) technologies for diversification/modernisation of sectors + explore emerging areas PolicyChoices (tough ones): select few priorities on basis of specialisation & integration in international value chains Critical mass of resources & talent: cooperation between regions by avoiding duplication and fragmentation Collaborative Leadership: involve stakeholders from academia, businesses, public administrations and civil society ("quadruple helix") & synergies between funding instruments (EU, national, regional)

  9. The evolution of Smart Specialisation • Expert workshop in Barcelona, June 2008, organised by JRC-IPTS • JRC Scientific and Technical Reports, 2009: « The question of R&D specialisation – Perspectives and policy implications » • “Knowledge for Growth expert group” launched the concept in the framework of ERA (2009) • The concept is incorporated in the Europe 2020 agenda as part of the Innovation Union flagship initiative (2010) • EC Communication « Regional policy contributing to smart growth in Europe 2020 » - smart specialisation as a key concept for the EU regional and cohesion policy 2014-2020 • EC proposes S3 as a 'thematic ex-ante conditionality' for R&I spending under ERDF • S3 Platform is established at JRC-IPTS (2011)

  10. How to develop a S3?

  11. Why should universities care about smart specialisation? • Increasing concern about social and economic impact of publicly funded universities (e.g. ranking and funding; U-multi rank, UK REF, AustiraLeistungsvereinbarungen, Spain – Aneca) • Large amount of European Structural and Investment Funds linked to smart specialisation • Opportunity to build partnerships with local and regional authorities for mutual benefit • Synergies between support for R&I through the structural funds and European / national competitive financing will determine the overall funding structure

  12. Cohesion Policy funding for R&I 2007-2013 • Cohesion Policy innovation support over total aid: • 4% in 89’-93’ • 7% in 94’-99’ • 11% in 00’-06’ • 25% in 07’-13’

  13. Cohesion policy - planned investment by major investment fields - 2007-2013 (in € billions) see: http://ec.europa.eu/regional_policy/sources/docgener/studies/pdf/cp_employ_growth_en.pdf

  14. Energyefficiency and renewable energy (compulsory) Access and use of ICTs Research and Innovation SMEs competitiveness ERDF 2014-20: Concentration on R&I, ICTsand SMEs to maximise impact * At least two of four themes must be selected Developed regions Transition regions Less developed regions (plus island and outermost regions) Cohesion Policy

  15. Investment Priority 1 Council modifications (1) strengthening research, technological development and innovation: (a) enhancing research and innovation (R&I)infrastructure […] and capacities to develop R&I excellence and promoting centres of competence, in particular those of European interest; (b) promoting business […] investment in innovation and research, and developing links and synergies between enterprises, R&D centres and higher education, in particularproduct and service development, technology transfer, social innovation and public service applications, demand stimulation, networking, clusters and open innovation through smart specialisation […] supporting technological and applied research, pilot lines, early product validation actions, advanced manufacturing capabilities and first production in Key Enabling Technologies and diffusion of general purpose technologies;* *) ICT, photonics, nano-electonics, nano- and bio-technologies, advanced materials, etc.. Cohesion Policy

  16. An Agenda for Modernisation of Europe’s Higher Education System (COM (2011) 567) • ‘In assessing the role of HEIs in the region it is useful to identify the steps needed to create a ‘connected region’ in which the institutions are key players. Through this connection process institutions become key partners for regional authorities in formulating and implementing their smart specialisation strategies’ • ‘They can contribute to a region’s assessment of its knowledge assets, capabilities and competencies, including those embedded in the institution’s own departments as well as local businesses, with a view to identifying the most promising areas of specialisation for the region, but also the weaknesses that hamper innovation’

  17. Contribution of universities to S3 Generative Research related (but not limited) to regional priorities Multi- and cross- disciplinary Connectivity – knowledge nodes Support regional analysis Absorptive Help build capacity to ensure local firms absorb knowledge Provide demand through teaching and learning activities Nurture social ties that drive RIS Collaborative Neutral regional brokers Reach Out – need 'boundary spanners' Reach In – Co-production of knowledge Leadership Support regional vision and partnership Propose joint activities Place marketing Source: Based on Kempton et al (2013) Universities and Smart Specialisation, JRC S3 Policy Brief #3, European Commission

  18. The ‘disconnected’ region PUBLIC SECTOR Lack of coherence between national and regional/local policies Lack of political leadership Lack of a shared voice and vision at the regional/local level PRIVATE SECTOR No coordination or representative voice with which to engage Motivated by narrow self interest and short term goals Dominated by firms with low demand or absorptive capacity for innovation No boundary spanners Focus on supply side, transactional interventions Ineffective or non existent partnership Lack of a shared understanding about the challenges Entrepreneurs ‘locked out’ of regional planning HIGHER EDUCATION SECTOR Seen as ‘in’ the region but not ‘of’ the region Policies and practices discourage engagement Focus on rewards for academic research and teaching Source: Goddard, J and Kempton, L (2011) Connecting Universities to Regional Growth, European Commission

  19. The ‘connected’ region Strong partnerships based on shared understanding of the barriers and how to overcome them PUBLIC SECTOR Developing coherent policies that link territorial development to innovation and higher education Analysis of evidence and intelligence for planning Building the infrastructure for growth Evidence based policies that support ‘smart’ innovation and growth Investing in people and ideas that will create growth Generating intellectual and human capital assets for the region Skills development, commercialisation of research HIGHER EDUCATION SECTOR Source: Goddard, J and Kempton, L (2011) Connecting Universities to Regional Growth, European Commission PRIVATE SECTOR

  20. How to start entrepreneurial discovery process Kick-start with consultation in quadruple helix: Detect potential boundary-spanners between different stakeholder / interest groups, new innovative entrepreneurs, hidden champions, or persons with a potential for this is one of the aims of this first step. … See new annex III of RIS3 Guide Research & education public and private research bodies, universities, education and training, science and technology parks, Technology transfer offices, etc. Business manufacturing and services, primary sectors, financial sector, creative industries, social sector, large firms, SMEs, young entrepreneurs, students with business ideas, cluster and business organisations, if relevant at different government levels, agencies e.g. for regional development, business advice, public procurement offices, incubators, etc. Public administration NGOs and citizens’ initiatives related to societal challenges for which innovative solutions would be helpful, consumers associations, Talents! etc. Civil society / Users

  21. Horizon 2020 and Cohesion Policy: Differences and complementary objectives

  22. 134 EU regions + 11 EU countries + 2 non-EU regions

  23. NEW! Transantional Cooperaion Benchmarking and targeted support Methodological Guidance Interactive tools, S3 Newsletter and Website Country- and Macro-region events and targeted seminars at IPTS Research and analysis Peer Review workshops & trans-national learning Thematic workshops & working groups Extra support for digital agenda and ICT sections of RIS3 RIS3 assessment and support to REGIO desks

  24. Universities and the S3 Platform Working with the European University Association Two day workshop in Seville, February 2013 Open Days workshop in October 2013 together with DG Education and Culture More activities in 2014, including high level conference in Brussels (June tbc) Find out more: http://s3platform.jrc.ec.europa.eu/universities

  25. Thank you! http://s3platform.jrc.ec.europa.eu JRC-IPTS-S3PLATFORM@ec.europa.eu

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