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Mario Pezzini

Mario Pezzini. Trends seen with traditional glasses. Growth in OECD regions dwarfed by growth in (some) Asian regions. Shanghai aims to increase R&D intensity to 3.3% by 2020…. The Nature of Innovation. Concentration of Innovation Patent applications per million inhabitants (2005).

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Mario Pezzini

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  1. Mario Pezzini

  2. Trends seen with traditional glasses

  3. Growth in OECD regions dwarfed by growth in (some) Asian regions Shanghai aims to increase R&D intensity to 3.3% by 2020…

  4. The Nature of Innovation Concentration of Innovation Patent applications per million inhabitants (2005) • Research-intensive innovation remains highly concentrated

  5. Regions with the highest number of patent applications per million population compared to their country average, 2005 Source: OECD Regions at a Glance 2009

  6. More than one third of OECD regions have less than 10 patents per million population. These regions tend to invest less in R&D and have lower shares of employment in high technology sectors Correlation between R&D expenditures and patent applications, 2000-2005 Source: OECD Regions at a Glance 2009

  7. The Nature of Innovation Features related to Innovation • Regions that experience higher levels of patenting activity are doing so through: • Greater R&D expenditure • Greater involvement of the private sector in innovation projects • Higher employment shares in high-tech sectors

  8. The Nature of Innovation Collaboration for Innovation Patents with co-inventors (2005) Collaboration for innovation is also concentrated in few places.

  9. Patents with at least one co-inventor by residence of the co-inventor, 2005 Correlation between business and non-business patenting activities (pooled 2000-2004) Source: OECD Regions at a Glance 2009

  10. What are the results of the analysis on innovation? • If…. • Research-intensive innovation remains highly concentrated • Some regions are catching up (Shanghai 2.3% R&D/GDP), but many will not ….the future appear uncertain However, regions vary greatly in how they innovate and indicators capture only part of this. Thereis a changing nature of innovation that reinforces the opportunities for dynamics in all regions

  11. The policy supply

  12. Why adopting a regional approach? • The systems focus serves to identify different kinds of gaps and “failures” for policy intervention • Weaknesses in one part of system limit economic growth • Market failure is not the only problem • National policymakers are struggling with how to incorporate the RIS concept into policy • What is the most efficient spatial allocation of resources? • How are different RIS served by a uniform policy? • How to exploit trans-border effects? • How to exploit trans-national externalities?

  13. What are the main problems and issues with the RIS approach? • Many regional strategies are not adapted to their context • Not all regions can be Silicon Valley (knowledge-generation leader) • But capacity to absorb knowledge to innovate is needed everywhere • Be careful in producing fashion trends • RIS is frequently a recast science- and research-based approach • Most innovation “principles” are not recognised in supply-driven RIS plans • Respective roles of national, regional and local level unclear • Programme proliferation & duplication creates confusion & waste • Administrative boundaries don’t usually map to an RIS

  14. Regional Innovation Systems

  15. Regional Innovation Systems

  16. Eppur si muove!

  17. The New Regional Paradigm • EU funds have been allocated following a convergence logic • However, for a group of the relatively richer regions, funds seem to grow as well. Growth period refers to: 1994-2006 for Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain and the UK; 1995-2006 for Austria, Finland and Sweden; and 2000-2006 for the Czech Republic, Hungary, Poland and the Slovak Republic. Initial year for per capita GDP in the horizontal axis is determined according to the growth period. Source : Own calculations based on DGRegio.

  18. The New Regional Paradigm • While infrastructure is still an important part of EU funds, competitiveness enhancing objectives comprise now more than half of all allocations. Business-environment objectives refers to: assisting large business organisations, assisting SMEs and the craft sector and productive environment. Infrastructure refers to: basic infrastructure, energy infrastructure, environmental infrastructure, planning and rehabilitation, social infrastructure and public health, telecom infrastructure and information society, and transport infrastructure. Labour market refers to: human resources, labour market policy, and positive labour market actions for women. Innovation refers to: research, technological development and innovation; technical assistance and innovation actions; and workforce flexibility, entrepreneurial activity, innovation, information and communication technologies. Social refers to social inclusion. Rural refers to promoting the adaptation and the development of rural areas. Tourism refers to tourism. Primary sector refers to agriculture, fisheries and forestry. Education refers to developing educational and vocational training. Source : Own calculations based on DGRegio.

  19. The New Regional Paradigm • Following a convergence logic, funds for infrastructure are allocated according to the degree of regional development. • This remains a valid cohesion objective, but can be related also to compensatory regional policies Infrastructure refers to: basic infrastructure, energy infrastructure, environmental infrastructure, planning and rehabilitation, social infrastructure and public health, telecom infrastructure and information society, and transport infrastructure. Source : Own calculations based on DGRegio.

  20. The New Regional Paradigm • In contrast, Regions regardless of their income levels, are supported with funds to develop innovation. • This is in line with the Lisbon Strategy. Innovation refers to: research, technological development and innovation; technical assistance and innovation actions; and workforce flexibility, entrepreneurial activity, innovation, information and communication technologies. Source : Own calculations based on DGRegio.

  21. The New Regional Paradigm • The same applies in allocation of funds for labour markets. Labour market refers to: human resources, labour market policy, and positive labour market actions for women. Source : Own calculations based on DGRegio.

  22. Risks Policy imitation Mere redistribution on equal standards Administrative rather than strategic management Lack of expertise at national and regional level Lack of a conceptual framework

  23. Action Identify comparative advantages Reveal information Group investments Experiment

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