Localised learning & knowledge institutions in economic development of peripheral regions

1. Localised learning &knowledgeinstitutions in economic development of peripheral regions Garri Raagmaa garri@ut.ee +372 578 899

2. The aim • to describe the role of non-metropolitan highereducationalinstitutions (HEI)inthe framework of the Regional Innovation System (RIS), • in parallel with other regional knowledge institutions (KI): R&D units, business advisory services (BAS), • and their interaction with local/regional authorities and business organizations.

3. Helsingborgi kalossivabrik 1920

4. 2000 – universitycampusinex-factory 2700 students 2007 6000 - 2015

5. Outline • Theoretical background • Baltic & Nordic comparison • Methodology design • Someempiricalevidences

6. Theoretical foundations • evolutionary economic geography • path dependency (Nelson & Winter 1982) • national innovation systems (Lundvall 1992) • social networks (Camagni 1995) • lock-ins (Liebowitz et al. 1995) • learning region (Morgan 1997) • A triple helix (Etzkowitz 1997) • RIS (Cooke et al 1998)

7. Cont… • knowledge spillovers (Jaffe 1989) • co-evolution (Murmann 2003) • local buzz & global pipeline (Bathelt, Malmberg and Maskell 2004) • organizational proximity (Boschma 2005) • related variety (Frenken et al 2007) • industrial sectors that are related in terms of shared or complementary competences • cluster life cycles (Bergman 2007) • institutional environment (Hassink 2010) • geographical proximity (Graf 2010)

8. Theroleofregional HEI / KI Allikas: Malmberg 2006

9. Institutional capacity – keyissueinperipherial FUR Networks - leadership Development path Processes Mobilisation Local buzz Public spaces and shared arenas The range of institutions Resources - competencies Institutions - structures Kosonen 2005

10. Planting the seeds of the emerging industries at the regions Modified from M. Sotarauta & K. Viljamaa 2003

11. What are regional HEIs, what tasks they perform? • Located outside traditional university centres • Main tasks: • knowledge transfer • through education and human resources development • knowledge creation • through research and technology transfer • cultural and community development OECD 2007

12. The dilemma of regional HEIs in policy making • two controversial opinions about HEIs outside old university centres: • wasting resources (Deschryvere, 2009) • regional economy needs HEIs for economic restructuring (Nordregio 2009, 2011, OECD 2007) • direct effects that universities may have on regional development are difficult to measure or prove (ITPS 2004)

13. Macro level studies have conflicting results • resources that are allocated to universities do not have influence on the specialization of companies or the international orientation of a region. The relationship between expenses for education and research and knowledge-intensive businesses is non-existent in regions with less than one million inhabitants (ITPS 2004) • universities may be important drivers pushing forward regional development, since a regional centre with a university is better off in respect of occupational and demographic development than a regional centre that lacks such a facility (Hanell & Neubauer 2006)

14. R&D = Innovation • Investment to the R&D does not guarantee innovation and development of the regions (Capella 2011) • Tartu case: bioscience versus software • Geography matters: knowledge and new values take roots in close interaction of PEOPLE not that much between institutions • Where is the reasonable dividing line (balance) on the geographical scale???

15. The Baltic States comparisonwiththeNordic Countries - RIS, innovationperfor-mance& HEI policies - Estonia between East and North

16. Highereducated VS elementary % of 25-65 Source: Eurostat, DG Regio

17. DGP change2011 III qvs 2010 Source: Eurostat

18. Differences in Baltic and Nordic Innovationperformance Source: European Innovation Scoreboard 2011

19. Convergenceininnovationperformance Source: European Innovation Scoreboard 2011

20. Regional Innovation Performance Source: Nordregio 2009

21. R&D personnel 2010 Source: Eurostat

22. % privatesector R&D personnel2010 Source: Eurostat

23. “Asphalt VS Brains” - % of planned cohesion policy measures 2007-13 TRANSPORT HUMAN RESSOURCES Source: DG Regio

26. Finnish centres of knowledge transfer(osaamiskeskus)2008-13 - Takes part in 1 cluster - Takes part in 9 clusters

27. An example, Finnish universities by location • Finnish cities may be divided to following groups in order to highlight the academic environment: a) Growth cities with several campus universities and globally competitive industries, (4-7) b) Peripheral cities or towns with only one or two campus universities, often in located in regional centres (6-8), c) University Consortium towns with a certain academic infrastructure (with polytechnic), but no real campus universities (6; Kajaani, Kokkola, Lahti, Mikkeli, Pori and Seinäjoki) d) Peripheral towns with noclearacademic infrastructure – perhaps single units & a polytechnic. The Figure: K. Viljamaa 2004

28. Universityof H & I The UHI is a federation of 15 colleges and research institutions in the Highlands and Islands of Scotland delivering higher education. In April 2001 the Scottish Parliament awarded UHI Higher Education Institute status, and it now provides university level courses. 2010 asuniversity.

29. Hornafjörður

30. Nýheimar

31. The Baltic States also differ • 1990s transition period, over hundred of new regional HEIs: independent schools, university colleges, branches and the like were set up in the Baltic States outside traditional university campuses. • However, quite different approaches were applied in the Baltic States

32. Baltic HEI units by 2010

33. Three different approaches • Estonia and Latvia liberalized their educational market, Lithuania did not • Explosion of HE – “mass production” • Estonian HEIs outside Tallinn and Tartu were set up mainly by the largest public universities since 1996 • For performing university functions locally • In Latvia, private HEIs took a lead and created a disperse HEI system of filials • For making money

34. Hypothesises • The innovative performance of a region is place placed (proximity dependent) and it’s success depends mainly on • local institutionalthickness & • networking within critical distance • Nordic Countries (Estonia? Latvia? Lithuania?) have high innovative performance because of geographically spread network of HEIs & KIsclosely co-operating with business sector • Regional HEIs canbesuccessfulonlywhentheirprofile isdirectlylinkedwiththe profile oflocal/regionalenterprises

35. Methodology design Going to the micro level!F2F Putting regional HEIs & KIs into the focus Do regional HEIs/KIs contribute to the overall -innovation? – regionaldevelopment

36. Knowlegde flows around regional HEIs / KIs Foreign partners (universities, agencies, etc.) National university/ies State agencies (G L O B A L) P I P E L I N E S RIS Regional HEI Regional development agency Public authorities L O C A L B U Z Z (livinglab) Secondary schools Enterprises Vocational schools NGOs

37. Research questions –knowledge flows • Which and in what capacity knowledge is transferred via KIs to the region? • Main university • Other national universities and partners • Partners abroad • What kind and what amount of knowledge is produced locally? • Balance between imported and locally created knowledge

38. Research questions – RIS • What kind of RIS? (Cooke 1998) • (a) territorially embedded • (b) regionally networked, or • (c) regionalised National Innovation System • Are the regional development/innova-tion policies considering regional KIs? • Is the knowledge available at the regio-nalKIs coherent with the dominant production line(s) of the region? • Anydifferenceswith KIs?

39. Research questions –human resources • Are KIs attracting talents to the region from outside? • Teachers/researchers • Students • In what capacity are graduates employed in the region? • Are KIs offering “taylor-made” locally adjusted curricula's and courses to local enterprises / wider society?

40. Research questions – local buzz • What institutional agreements and personal contacts have KIs with local stakeholders? • In what capacity KIs participate in local strategy making and projects? • Are teachers/researchers locally embedded or “travellers”? • Linkages to local enterprises • Participating in local policy making

41. Methods • Statistical analyse of regions’ development and economic structure • Case studyof RIS/HEI/KIs • HEIs/KIs factual activitybased on webbaseddata • Face-to-face interviews with leaders of KIs/RIS institutions • Focus group interviews with students of regional HEIs and other KIs • Face-to-face or telephone interviews of broader local stakeholders

42. Someempiricalevidences Fitting KIs toregionalbusinessframework

43. KIBS, transittrade, real estate, softwaredevelopment(Skype, Tehnopoletc.) Mining and chemicalindurty Manufacturing, transport Kohtla-Järve (Jõhvi): Oil-shale ja miningtechonogy Rakvere: Constructionmaterials, food Sillamäe ja Narva: Oilshaleenergyraremetals TALLINN Food, constructionmaterials, recreation Mining, chemicals, metalprocessing. Hiiumaa: Plasticsindustry Haapsalu: Health and rehabilitation Agriculture, foresty Paide/Türi: Agrotechnology Shipping and fisheries, resorts Luua SchoolofForestry Highereducation and reserach, medicine, biotech and softwaredevelopment (Playtech, Regio etc.) Kuressaare: Spa, smallcraftbuilding TARTU Pärnu: Spaa, tourismsocialservices Viljandi: Folk-culture ja handicraft Wood and foodindustry, organicfarming, recreation Räpina SchoolofHorticulture Hospitalityindustry, health and socialservices, maritimesector, manufacturingsubcontracting Võru: Woodprocessingtechnology, mechatronics Valga: Latvianco-operation Otepää sports ja recreationindusty New and oldspecialisationsofEstonianregions

44. Estonian universitycolleges