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SMART SPECIALISATION The Government Perspective

SMART SPECIALISATION The Government Perspective. - Cardiff University - 28 June 2012. Backdrop - challenging times. Economic landscape : recession & Eurozone crisis EU budget focus on driving high end growth & maximising impact Concentration of investment on top drivers of growth

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SMART SPECIALISATION The Government Perspective

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  1. SMART SPECIALISATIONThe Government Perspective - Cardiff University - 28 June 2012

  2. Backdrop - challenging times • Economic landscape : recession & Eurozone crisis • EU budget focus on driving high end growth & maximising impact • Concentration of investment on top drivers of growth • UK National Reform Plan targets • Stronger performance management & accountability • More flexibility to align EU funds (regional, social, rural and fisheries)

  3. EU ‘COMMON STRATEGIC FRAMEWORK’ INVESTMENT THEMES • Innovation and R&D • ICT: Improving access; quality and usage • SMEs: Improving competitiveness, incl. in the agricultural and aquaculture sectors • Shift to low carbon economy • Climate change adaptation and risk management • Environmental protection & resource efficiency • Sustainable transport and unblocking key networks • Employment and labour mobility • Social inclusion and fighting poverty • Education, skills and lifelong learning • Improving institutional capacity for efficient public administration

  4. UK challenges for structural funds Increasing R&D spend & ‘localising’ national investment plans (TSB) Improving access to finance for SMEs More renewable energy use NEETS / youth unemployment Higher level skills Financing through ‘financial instruments’ (more loans / fewer grants)

  5. ‘LESS DEVELOPED’ REGIONS 2014-2020 • GDP/head below 75% EU27 average • 75%-85% EU co-financing available for wider range of activities • Safety net” of 2/3 of previous allocation for regions moving ‘up’ and out of this category • At least 25% spend must be from European Social Fund • Likely to be West Wales and the Valleys + Cornwall and Scilly Isles

  6. ‘TRANSITION’ REGIONS 2014-2020 • GDP/head between 75% and 90% of EU27 average • 60% EU co-financing • Safety net” of 2/3 of previous allocation for regions moving ‘upwards’ into this category • At least 40% spend must be from European Social Fund, of which 70% of each programme must focus on only 4 priorities, with 20% earmarked for tackling social exclusion at national level • 80% ERDF to focus on only 3 priorities • Likely to include : • Devon • Lincolnshire • East Yorkshire & N. Lincolnshire • Shropshire & Staffordshire • South Yorkshire • Merseyside • Lancashire • Tees Valley & Durham • Highlands & Islands • Cumbria • Northern Ireland

  7. MORE DEVELOPED’ REGIONS 2014-2020 • GDP/head more than 90% EU27 average • 50% EU co-financing • At least 52% spend must be from European Social Fund, of which 80% of each programme must focus on only 4 priorities • At least 20% ESF to focus on social exclusion at national level • 80% ERDF to focus on only 3 priorities: • Innovation • SME competitiveness • Low carbon and energy efficiency (at least 20%)

  8. Smart specialisation: What we need vs what we want  UK strategy for stimulating R&D excellence  Proven track record of world beating innovation  Smart specialisation as a ‘precondition’ for receiving UK ERDF....does not apply...but • We want....Locally transparent and locally engaged innovation / R&D investment decisions. • We want....National innovation investment woven into local investment plans

  9. NATIONAL LEVERS: TECHNOLOGY STRATEGY Technology Strategy Board (UK national innovation agency) works with top companies in R&D to: • Accelerate ‘the journey between concept and commercialisation’ • Connect the innovation landscape • Turn Government procurement into innovation driver & business opportunity • Invest in priority areas based on potential to generate sustainable UK economic growth

  10. TSB delivers through.... • Technology & Innovation (Catapult) Centres • Demonstrator Projects : Innovation Platforms (eg. Low Carbon Vehicles) • Support for networking & collaboration (incl. Knowledge Transfer Networks) • Support for SMEs (Grant for R&D, Knowledge Transfer Partnerships, Eurostars) • Procurement : driving innovation through government procurement

  11. LOCAL LEVERS? • Universities • Private sector R&D • Social / business innovation? ? SMART SPECIALISATION: How do we deliver local impact from a partnership between national & local investment in innovation ? • Need to avoid cathedrals in the desert + sub-optimal fragmentation

  12. KEY QUESTIONS What will shift the economic game? How will the difference be measured? How much & when? Fuzzy boundaries?: Different partnerships for different issues? Different geographies for different issues? Leadership? Governance?

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