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RIS for South East Region of Bulgaria- SERBUL INNOVATION POLICIES IN THE BALEARIC ISLANDS 17 October 2005

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RIS for South East Region of Bulgaria- SERBUL INNOVATION POLICIES IN THE BALEARIC ISLANDS 17 October 2005. INDEX MAIN REGIONAL FIGURES IN COMPARISON TO SPAIN BALEARIC ISLANDS INNOVATION AND TECHNOLOGY TRANSFER STRATEGY – RITTS PLA BIT SEGLE XXI

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RIS for South East Region of Bulgaria- SERBUL

INNOVATION POLICIES IN THE BALEARIC ISLANDS

17 October 2005

slide2

INDEX

  • MAIN REGIONAL FIGURES IN COMPARISON TO SPAIN
  • BALEARIC ISLANDS INNOVATION AND TECHNOLOGY TRANSFER STRATEGY – RITTS PLA BIT SEGLE XXI
  • REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI
  • DIFFICULTIES DURING THE IMPLEMENTATION PROCESS
  • RECOMENDATIONS FROM THE EXPERIENCE
slide3

THE BALEARIC ISLANDS

  • Surface: 5.040,29 km2.
  • Coast: 1.428 km.
  • Population: 878.627 inhabitants (1,8% of Spain).
    • 80% in Mallorca.
    • 11% in Ibiza and Formentera
    • 9% in Menorca
  • GDP: 2,5% of total national.
  • GDP per head (EU25=100): 116.
  • 10 Million tourists per year
slide4

MAIN REGIONAL FIGURES IN COMPARISON TO SPAIN

  • THE ECONOMICAL REGIONAL STRUCTURE IS FOCUSED ON SERVICE SECTOR.
slide5

MAIN REGIONAL FIGURES IN COMPARISON TO SPAIN

  • THE SERVICE SECTOR IS NOT VERY MUCH R&D INVESTOR.
  • REGIONAL R&D % EXPENDITURE OF THE GDP: STILL VERY SMALL.
  • THE REGIONAL R&D EXPENDITURE IS FEWER THAN THE 2,5% OF THE TOTAL NATIONAL GDP THAT REPRESENTS THE BALEARIC ISLANDS.
slide6

MAIN REGIONAL FIGURES IN COMPARISON TO SPAIN

  • TOURISM SECTOR IS NOT TAKEN INTO ACCOUNT IN THIS FIGURES.
slide7

BALEARIC ISLANDS INNOVATION AND TECHNOLOGY TRANSFER STRATEGY – RITTS PLA BIT SEGLE XXI

  • Characteristics:
    • The most important issue of the RITTS project was to accept that innovation in the Balearic economy would have to be very different from that developed in traditional text-books.
    • The Balearic Island economy is very dependent on tourism. For this reason the way innovations are carried out is very different from that of an industrial economy.
    • One example: Baleares is the basis of some of the most important and innovative hotel world groups, but is the last region in terms of innovation in the ranking of autonomous communities in Spain.
    • This paradox is explained by the fact that Spanish innovation statistics only considers industrial activities. This shows how the general mentality is unable to understand the problems of innovation in the tourism sector.
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BALEARIC ISLANDS INNOVATION AND TECHNOLOGY TRANSFER STRATEGY -PLA BIT SEGLE XXI

5 LINES OF ACTIONS - PLA BIT SEGLE XXI

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BALEARIC ISLANDS INNOVATION AND TECHNOLOGY TRANSFER STRATEGY -PLA BIT SEGLE XXI

5 LINES OF ACTIONS - PLA BIT SEGLE XXI

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BALEARIC ISLANDS INNOVATION AND TECHNOLOGY TRANSFER STRATEGY -PLA BIT SEGLE XXI

5 LINES OF ACTIONS - PLA BIT SEGLE XXI

slide11

REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

  • The objective of the INNOBAL XXI Innovative Actions Programme are part of the foundations of the RITTS PLABIT SEGLE XXI and has made serious efforts to tackle real problems in the real economic sectors of the Islands. For this reason the projects undertaken priorise: innovative activities within the tourism sector.
  • The methodology adopted considered two complementary approaches:
    • Support to the innovation in the tourism sector.
    • The consideration of the tourism sector as the most important “pulling industry” in the Balearic economy
  • The principle of performance of all measures:
    • Look forcooperation and synergy among all actors, not only inside the Balearic Government, but also among it and other Administrations and with the private sector.
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REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

  • In coherence with this approach and in the interest of a better operability, two broad Strategies were recommended when it came to the point of translating into specific actions and projects:
    • STIMULATING THE INNOVATIVE CULTURE OF THE BALEARIC ISLANDS IN THE TOURISM SECTOR
    • CONSOLIDATING AND DIVERSIFYING ECONOMIC ACTIVITY IN THE ISLANDS PROFITING FROM THE PULLING CAPACITY OF TOURISTIC ACTIVITIES.
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REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

FIRST ACTION: INNOVATION IN TOURISM SECTOR (I)

This action started with the analysis of the problematic of the sector in the Balearic Islands

The most crucial problem was the need for Baleares to maintain its competitive situation in the face of the new global and Mediterranean competitors. Together with maintaining the attractiveness of the region for the new e-generation (people that live in the internet era).

- Actual situation: around 10% of the tourists make reservations On-Line. [WTM - Londres]

- Forecast: In less than 20 years more than 50% of reservations will be made On-Line. [Hosteltur]

  • Two lines of actuation were defined therefore:
  • To diffuse and increase the use of new technologies in the accommodation services.
  • To push for the conception of new and more sophisticated tourist products
slide14

REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

FIRST ACTION: INNOVATION IN TOURISM SECTOR (II)

To better understand the specific innovation needs of the tourism sector, we developed in co-operation with COTEC (the Spanish Foundation for the Promotion of the Technological Development) two studies about the innovation process in hotels .

The key idea is to apply in the tourism sector methodologies such as the supply chain concept used in other productive sectors, trying to increase the added value and the quality of the output, and to minimise the costs.

slide15

REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

FIRST ACTION: INNOVATION IN TOURISM SECTOR (III)

  • Support for innovation in the accommodation services
  • Sub-action aimed at encouraging technological innovation within the sphere of tourism, incorporating new IT and communications technologies.
  • This sub-action started out with the funding of a survey focusing on the degree of introduction ICT in 134 hotels in Playa de Palma and 84 hotels in Bahía de Portmany in Ibiza. These hotels were not part of any large hotel chain.
  • Based on the conclusions of the study, the direct attraction of the demand for tourism is supported through small hotel companies. The AVANTHOTEL Project was designed and built. Its objective is the direct marketing of the hotel product on the Internet (this measure has been implemented in Menorca, Playa de Palma, Ibiza, Formentera and another is underway with the Playa de Muro Hoteliers Federation).
slide16

REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

Description of Avanthotel action

The AVANTHOTEL Project allows the potential market to access an up-to-date hotel supply without intermediaries.

It was developed by the IBIT (a regional technological centre specialised in ICT and supported by the Balearic Government) in Menorca, Playa de Palma, Ibiza and Formentera.

Access to the hotel supply is made through a B2C website which combines all the information about all the hotels configuring a directory of services and providing a wide range of ways of consulting establishments (by location, category, name, offers and services).

In addition, the management tool provides each hotel with the possibility of administering its own information in real time. Finally, there is a virtual TPV module for each hotel to accept payment for its reservations.

slide17

REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

Description of Avanthotel Technology

Developed Technology: Java - J2EE

  • JAVA is an open and multi-platform technology
  • High scalability and availability: possibility to work in clusters
  • Reliable and robust: allows for transaction services and persistence
  • Modular and multi-layer design: facilitates software re-utilisation
  • This technology was available in Baleares thanks to the participation of the IBIT
  • in different projects within the V Framework Programme
  • http://booking.playadepalma.nethttp://www.formenterahotelsguide.comhttp://www.ibizahotelsguide.comhttp://www.visitmenorca.com
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REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

Other actions in the tourism sector

  • Since the use of internet tools depends on personnel capacity, it was decided to support the adaptation of hotel management personnel to the use of the new technologies.
  • To generate new e-tourist products adapted to a more sophisticated demand, a reconstruction project for Roman Palma using virtual reality techniques was launched as a pilot action.
  • In order to analyse the best ways to improve the quality of the tourist supply and to explore the possibilities to generate new products and services, a sun and beach cluster in Calviá was supported. The idea is to develop quality tourism in collaboration with entrepreneurs and a permanently updated local tourist strategy.
slide19

REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

SECOND ACTION: DIVERSIFICATION OF THE BALEARIC ECONOMY (I)

The idea is to benefit from the capacity of millions of tourists and thousands of tourist enterprises to generate demand to support the development of new activities.

The first evidence was the high potential of tourism enterprises to boost the demand for software activities. In order to support the development of specialist software cluster, certain activities have been designed, including close work with the sector associations and support to the creation of new enterprises profiting from the facilities of the Technological Park.

slide20

REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

SECOND ACTION: DIVERSIFICATION OF THE BALEARIC ECONOMY (II)

  • Other actions are launched in order to profit from the demand of tourism in different areas.
  • Aeronautical activities: We are studying the possibility to profit fro, the potential of Palma de Mallorca airport to develop maintenance, aeronautical training and other value added activities.
  • Nautical cluster: To profit from the demand of the nautical tourism in order to develop the internal supply of services and goods.
  • Development of further training in craftsmanship for traditional skills in construction, in order to profit from the demand of the “mediterranean fashionable house” in provenance from Northern European citizens.
  • Analysis of the possibility of developing new sectors related to potential demands, as is the case of ornamental plants for landscaping and gardening or the audiovisual sector to supply the needs of hotels, discos, etc...
slide21

REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

SUPPORT TO E-ENTERPRISES CREATION

  • STRATEGY OBJECTIVE
  • To stimulate the enterprising potential of technological base in general, and the existing one concerning the Knowledge Society in particular.
    • Support to the appearance of new entrepreneurs.
    • Attraction of entrepreneurs of other zones
slide22

REGIONAL PROGRAMME OF INNOVATIVE ACTIONS – INNOBAL XXI

SUPPORT TO E-ENTERPRISES CREATION

  • ACTIONS
  • Creation of a “pro-active net of integrated services” in order to support and advise in the creation and spreading of new e-enterprises:
    • Hard: creation and conditioning of incubator in the ParcBit.
    • Soft: information and support services.
  • Animation and training of the new entrepreneurs
    • Animation: interviews, news in press, contest of ideas,.....
    • Training: courses for entrepreneurs and managers.
slide23

DIFFICULTIES DURING THE IMPLEMENTATION PROCESS

The big difficulty was to arrive to an understanding of the peculiarities of the innovation activity in a tourism specialised economy, and to break with the use of a more standard and generalised orientations to innovative policies.

For instance, now there is a new question: how to lead with the internationalisation process in tourism, and how to profit and develop in Baleares added value activities based in this process?

slide24

RECOMENDATIONS FROM THE EXPERIENCE

  • There are two principle ideas:
    • YOU NEED TO UNDERSTAND THE CHARACTERISTICS AND NEEDS OF YOUR SPECIFIC ECONOMIC ACTIVITY AND CONTEXT.
    • IN ORDER TO DEVELOP INNOVATION IN A SECTOR SUCH AS TOURISM, YOU NEED TO WORK CLOSELY WITH ENTREPRENEURS AND SECTOR ASSOCIATIONS THIS WILL ALLOW A BETTER UNDERSTANDING OF THEIR PARTICULAR PROBLEMATICS AND OF THEIR MENTALITY.