Nowa Ruda, 8 March 2007

1. Ministry of Economy Possibilities of developing proinnovative institutional infrastructure – including industrial and technology parks. Bronisława Kowalak Support Instruments Department Director Nowa Ruda, 8 March 2007

2. Ministry of Economy Presentation plan • Significance of infrastructure for economy development • Similarities and differences – special economic zones, industrial and technology parks, technology incubators, clusters • Support programmes in the years 2007-2013

3. Ministry of Economy Factors that influence competitiveness • Basic factors influencing the level of modern competitiveness are:innovation, entrepreneurship, gaining knowledge and permanent learning • The place, where knowledge and skills are produced and gained, are “learning regions” rooted in realities of local development, where people who are able to create conditions for innovation and reject models of the past are gathered • Educational parks and clusters are the driving force of regional systems of innovation More – B. Kowalak, Konkurencyjna gospodarka. Innowacje - infrastruktura - mechanizmy rozwoju, Wydawnictwo Instytutu Technologii Eksploatacji PIW Radom, January 2006 [Competitive Economy. Innovations – Infrastructure – Development Mechanisms]

4. Ministry of Economy Innovation – innovativeness - przedsiębiorczość „Innovation means establishment of new production function” [J. Schumpeter].It is a process of establishing ideas, which are new in relation to their sources, and to make decisions concerning these ideas, as a result of which something useful is created” [M. Porter and J. B. Kamm] „Innovativenessof the economy – it is an ability and motivation of entrepreneurs to constant searching and using the results of research and development works, new concepts, ideas and inventions in practice. It is also: - improvement and development of existing production, exploitation technologies and those concerning the sphere of services. - introduction of new solutions in organization and management, - improvement and development of infrastructure, in particular the one concerning collecting, processing and making information available” [Programme of the Ministry of Economy “Enhancing Innovation of Economy in Poland in 2006”] „Entrepreneurship consists in: activities of people whilelooking for innovationand discovering new relations in the existing system of economy, in the ability to look ahead, searching a change andmaking use of it in social or economic innovation” [PF Druker]

5. PROCESSES PRODUCTS SERVICES TECHNOLOGICAL INNOVATIONS ORGANIZATIONAL INNOVATIONS DIFFUSION ABILITIES ADAPTATION ABILITIES ABILITIES OF COORDINATED EXPANSION OTHER SYNERGY EFFECTS Ministry of Economy Duality of innovation • Organizational innovation, usually caused by introducing technological innovation, is decisive for the effectiveness of this innovation • Solow Paradox • Source: A. Nowak-Far , Globalna konkurencja.., WN PWN, Warsaw Poznań 2000, p. 29 [Global competition..].

6. Ministry of Economy Transfer of knowledge and technology to SMEs The process of knowledge and technology transfer is not spontaneous but it requires strictly specified activities and measures to create favourable conditions for establishment and development of innovative companies, including enabling to use: • Suitable technical infrastructure (for example: in parks and incubators), • Legal and business consultancy for start up and spin-off companies, • Easy access to funds of high risk, especially to seed funds. The issue of fundingcontinuity - from research to market Source: A. Barwicz, Krasiczyn 2001, Centrum Innowacji FIRE - www.innowacje.pl

7. Ministry of Economy Experiences of the developed countries • Building friendly atmosphere for establishment and development of innovative companies, especially for small and medium enterprises is the basis of the strategy of EU and OECD as well as of development programmes implemented by countries striving after economy based on knowledge • These countries support industrial and technological parks and clusters, since these institutions are “merged” in the regional society, they have various functions in the area of implementing innovative solutions • Clusters are of special importance, since they were recognized as an effective tool of industrial, innovative and regional policy and as an element of economy based on knowledge „Economy based on knowledge „is an economic order, where knowledge, not work, raw materials and capital, is the key source, social order for which, social inequality based on knowledge is the main challenge…” (P.F. Drucker, The Atlantic Monthly, 1994)

8. Ministry of Economy Strategic directions: workplaces and innovations • Elimination and reorganization of many workplaces in the ’90 • caused a drop in employment and deterioration of the redundant technical infrastructure; at the same time the lack of appropriate technical infrastructure constitutes a barrier for the creation of new companies in Poland. • Institutional instruments of the Minister of Economy for new investments and for the creation of new workplaces: • special economic zones • industrial and technology parks • technology incubators • clusters

9. Ministry of Economy Special Economic Zones (SEZ) • first - since 1995 - in Mielec • today 14 SEZs – total area of ca. 8 000 ha., may be increased to 12 000 ha • over 600 entrepreneurs operate in the zones. They invested over 30 bn zlotys and created over 120 000 workplaces • the basic legislative acts which define the functioning of SEZs: act of 20 October 1994 on SSEs, the Order of the Council of Ministers to establish the zones

10. Ministry of Economy According the the act, SEZs: • are separated, uninhabited parts of Polish territory • are established on lands described in the spatial development plan as industrial, although the land of Agencja Własności Rolnej SP [State Treasury Agricultural Property Agency] have also been included • may be established on the land of the Administrator, the State Treasury, gminas, or other entities (including legal persons) under the condition that their agreement is obtained

11. Ministry of Economy Location of SEZs in Poland 1 Mielec SEZ 2 Suwalska SEZ 3 Katowice SEZ 4 Legnicka SEZ 5 Łódzka SEZ 6 Wałbrzyska SEZ 7 Kamienna Góra SEZ 8 Kostrzyńsko - Słubicka SEZ 9 Słupska SEZ 10 Starachowice SEZ 11 Tarnobrzeska SEZ 12 Pomorska SEZ 13 Warmińsko-Mazurska SEZ 14 Cracow SEZ

12. Ministry of Economy SEZs are the best place for investment • Possibility to use income tax exemption • The extent of support regarding the costs: • - new investment – the product of maximal intensity and investment costs qualified for support • - creating new workplaces – the product of maximal intensity and two- year labour costs of the new employees • Administrator’s supervision of investors • Administrator’s right to make administrative decisions in the scope of construction law • (decisions about construction and land development conditions, planning permission)

13. Ministry of Economy Industrial park – a place for SMEs An industrial park is a set of isolated real properties, which indlude at least one real property which has the technical infrastructure left over by a reorganized or eliminated entrepreneur, created on the basis of a civil law contract, whose one party is a local government entity, which creates the possibility to conduct business for entrepreneurs, especially small and medium ones. Source: SOP-ICE Programme complement An Industrial park may be the final stage of the reorganization of a big enterprise

14. Ministry of Economy Industrial and technology parks, technology incubators and clusters – the driving force of the regions • SMEs which operate in parks, incubators or clusters, at • the same time make use of: • strong global integration (accessibility) • strong local adaptation (proximity) • Proximity of companies accelerates the process of learning, facilitates the joint use of classified, informal information, and decreases the project completion time • Accessibility – the possibility to immediately communicate with different, distant places in the world (Internet) – associated with the concept of network – enables to go international with the activity

15. Ministry of Economy Location of industrial parks in Poland 1 Wroclaw Industrial Park 2 Nowa Ruda Industrial Park 3 Strzelin Industrial Park 4 Swidnik Industrial Park 5 Grudziadz Industrial Park 6 Bydgoszcz Industrial Park 7 Tarnów Regional Industrial Park 8 Industrial Park in Radom 9 Industrial Park in Plock 10 "Sokolów Podlaski" Industrial Park 11 Kedzierzyn-Kozle Industrial Park 12 Mielec Industrial Park 13 "Stare Miasto - Park" Industrial Park 14 Podlasie Industrial Park 15 Zambrów Industrial Park 16 Zory Industrial Park 17 Bytom Industrial Park 18 Piast Industrial Park 19 Jaworzno Industrial Park 20 Czestochowa Industrial Park 21 Upper Silesian Industrial Park 22 Silesian Industrial Park 23 "Euro Centrum" Industrial Park 24 Pszczyna Land Industrial Park 25 Police Industrial Park 26 Stargard Industrial Park

16. Ministry of Economy Technology park is a complex of distinguished real properties with technical infrastructure, established in order to enable the flow of knowledge and technology between scientific units and entrepreneurs, where counselling services concerning establishment and development of enterprises, transfer of technologies and transformation of results of scientific research and development of works into technological innovations are offered to entrepreneurs using modern technologies, and which enables the entrepreneurs to run business activity using the real property and technical infrastructure on contractual conditions.Source: SOP-ICE Programme complement Technology park – knowledge transfer

17. Ministry of Economy Technology incubators – a place for start-ups Technology incubator is an entity distinguished as far as budget and premises are concerned, which provides help in starting and running a company to novice entrepreneurs from the sector of small and medium enterprises, by offering a product or service resulting from implementing new technology Technology incubator offers first of all: • access to laboratories and libraries of local scientific institution of technical profile • office space which is attractive as far as price is concerned • administrative and office service of companies • business counselling (law, finances, patents etc.) • promotion of companies of the incubator • favourable environment of entrepreneurs Source: SOP-ICE Programme complement

18. Ministry of Economy Location of technology parks and incubators 1 Beskidzki Technology Incubator in Bielsko-Biała 2 Bełchatowsko Kleszczowski Industrial and Technological Park 3 Technology Incubator of the Academy of Humanities and Economics in Lodz 4 Technology Park in Szczawno Zdrój and Wałbrzych 5 Krosno Technology Park 6 Poznań Science and Technology Park 7 Łódź Regional Science and Technology Park 8 "Technopark Gliwice" Science and Technology Park 9 Technology Incubator 10 Cracow Technology Park 11 Wrocław Technology Park 12 Jagielloński Park and Technology Incubator 13 Upper Silesian Technology Incubator 14 NICKEL Technology Park Poznań 15 Science and Technology Park Poland - East in Suwałki 16 Płock Industrial and Technological Park 17 Podkarpackie Science and Technology Park 18 Science and Technology Park in the Lubelskie Voivodeship 19 Regional Technology Incubator 20 Słupsk Technology Incubator 21 Gdańsk Science and Technology Park 22 Aviation Industry Technology Park 23 Academic Incubator of Entrepreneurship in Gorzów 24 Wrocław Medical Science and Technology Park 25 Technology Incubator in Białogard

19. Ministry of Economy Cluster – a new way of thinking According to Porter’s definition: „Cluster is a geographical centre of companies, which are connected with each other, of special suppliers, entities providing services, companies active in related sectors and institutions which are connected with them (for example universities, entities for standarization and trade associations) in particular fields, which compete and cooperate with each other” Establishing clusters cannot take place from administrative point of view. It is a market process, grass-roots

20. Ministry of Economy SEZs, industrial and technology parks, clusters and technology incubators – similarities and differences

21. Ministry of Economy Support programmes – development opportunities • Sectoral Operational Programme – Increase of Enterprises’ Competitiveness, 2004-2006 • Operational Programme Innovative economy 2007-2013 • Operational Programme Development of Eastern Poland • 2007-2013 • Regional Operational Programmes 2007-2013

22. Ministry of Economy Implementation state of measure 1.3 „Sectoral Operational Programme – Increase of Enterprises’ Competitiveness, 2004 – 2006” (according to information from ARP SA) Submitted - 198 applications Qualified - 82 applications - industrial parks - 34 - technology parks - 22 - technology incubators - 26 Total valueof projects - 944 mln zl Value of eligible costs - 777 mln zl Support value - 668 mln zl (including ERDF + state budget) Completed - 22 proj. - including investment - 3 proj. industrial parks technology parks technology incubators

23. Ministry of Economy Technology parks, technology clusters and incubators in Operational Programme Innovative Economy 2007-2013 • Measure 5.1 – 104.3 mln euro Supporting cooperation relations of supra-regional scale (among other things clusers) – supplementary financing of common investments necessary for development of cooperative relation and counselling, training projects and marketing activities • Measure 5.3 - 190 mln euro Support for innovation centres (among other things technology parks and technology incubators) – supplementary financing of projects covering: counselling concerning the preparation of strategy of centre development, investments resulting from the implemented strategy of centre development as far as development or modernization of the existing technical infrastructure and promotional activities are concerned

24. Ministry of Economy Parks, technology incubators and clusters in the Operational Programme Development of Eastern Poland 2007-2013 Measure I.3. Supporting innovation – 432.06 mln euro from the European Regional Development Fund (5 voivodeships) Infrastructural projects concerning construction and development ofindustrial parks, technology parks, incubators, mainly technological, centres for innovation etc. Preparing areas for investment activity connected with parks and incubators Selected key projects concerning among others: • technology parks – 8 projects (Lublin, Podkarpacie, Białystok, Elbląg, Olsztyn, Suwałki, Ełk, Rzeszów) • industrial parks – 6 projects (Puławy, Mielec, Tarnobrzeg, Zambrów, Podlasie, in Świdnik) • technology incubators – 3 projects (Mielec, Stalowa Wola, Kielce) • clusters – Świdnik (establishing the basis for the cluster of aviation producers)

25. Ministry of Economy Support for industrial parks, technology parks and clusters in the Regional Operational Programmes 2007-2013 • Dolnośląskie [Lower Silesia] - priority 1. Enhancing competitiveness of Lower Silesia Enterprises • Kujawsko-Pomorskie – priority 5. Enhancing competitiveness of enterprises • Lubelskie – priority 2. Economic infrastructure • Lubuskie – priority 2. Stimulating enhancement of investments in enterprises and strengthening innovative potential • Łódzkie – priority 3. Economy, innovation, entrepreneurship • Małopolskie – priority 4. Infrastructure for economic development • Mazowieckie – priority 1. Establishing conditions for development of innovative potential and entrepreneurship in Mazovia Region • Opolskie - priority 1 – Strengthening economic attractiveness of the region

26. Ministry of Economy cont. Industrial parks, technology parks and clusters in the Regional Operational Programmes 2007-2013 • Podkarpackie – priority 1 – Competitive and Innovative Economy • Podlaskie – priority 1. Enhancing innovation and supporting enterprise in the region • Pomorskie [Pomerania] – priority 1 – Development and innovations in small and medium enterprises • Śląskie [Silesia] – priority 1. Research and technological development, innovations and entrepreneurship • Świętokrzyskie – priority 1. Entrepreneurship development • Warmińsko-Mazurskie – priority 1. Entrepreneurship • Wielkopolskie – priority 1. Competitiveness of enterprises • Zachodniopomorskie – priority 1. Economy – Innovations – Technologies

27. Ministry of Economy „The best way to predict future is to shape it” (Alan Kay – after Stefan Kwiatkowski, Przedsiębiorczość intelektualna, WN PWN, Warszawa 2000, p. 100) [Intellectual Entrepreneurship] And monitoring!