Tools for strategic governance of industrial innovation policy in Flanders

1. Tools for strategic governance of industrial innovation policy in Flanders Regions for Economic Change – Tools for smart regions 23 June 2011, Brussels Jan Larosse, EWI - Flemish Government

2. OVERVIEW • Background on Flanders • Developments in innovation policy • Futurestrategy ‘Flanders in Action’ • ‘Spearheads’: focussing innovation policy on 6 thematic clusters • Recent developments in strategic governance • Towards a more targeted innovation policy • ‘New Industrial Policy’: an integrated policy for transformation • Management Structure for NIP: new governance for targeted cluster policy • Exploration of ‘smart specialisation’ • OECD-project for new methodologies to support design and assessment of smart specialisation strategies • Tools for designing smart specialisation strategies • Call for collaboration in a S3 project: benchmarking strategic governance

3. FLANDERS: Key Figures Flanders: a prosperous region with an open economy in the core of Europe • Population: 6.28 million (= 57.6% BEL) • Language: Dutch (NL) • Surface: 13.521 km² (= 45% BEL) • GDP: €194 billion • Export : 100.3% of GDP (BEL = 73.3%) • GERD: €4.15 billion (+- 2/3 of BEL), of which €2.7 billion BERD (2009) • % GERD/BBP: 2.12% (2009) • Total public budget STI policy: €1.7 billion of which €1.07 billion R&D The region has constitutional competences on research, innovation and economic policy

4. Why ‘smart specialisation’ is important for Flanders ‘Flanders in Action’: strategic framework for a new growth path because of weakening competiveness and de-industrialisation • Future project (starting 2006) of the Flemish government, supported by +100 stakeholder organisations (‘Pact 2020’), • Responding to competitiveness problem; aiming at a ‘top 5 region’ position in Europe = transition towards an innovation driven growth model, • Consensus that STI investments should be focussed on ‘spearheads’: domains that can position Flanders in future value chains with important societal and economic impact. • STI Advisory Council (VRWI) selected 10 ‘spearheads’ (breakthrough initiatives) in 6 Cluster domains (still mainly technology driven) in 2008. • The financial crisis imposed budget cuts. In 2011 the growth path resumed, but the budget constraint urges stronger prioritisation and focus.

5. Focussing on 10 spearhead initiatives in 6 ‘clusters’ SWOT Analysis of Flanders vs EU EU Foresight Study with 15 key areas Departure from pure ‘bottom-up’ innovation support policy Focussing public S&T resources on 6 ‘clusters’ identified by expert consultation Still large domains: how to make further choices?

6. NEW INDUSTRIAL POLICY: an integrated framework • White Paper ‘New Industrial Policy (27 May 2011):Integrated policy platform for economic transformation • A new Productivity Offensive • Increase knowledge productivity inclusters (critical mass andspecialisation) • Support ‘lead companies’‘lead markets’ and ‘lead clusters’ • Factory of the Future • Transformational Sectoral Policy • Focus on transformation strategiesbased on value chains, clustersand grand projects

7. Governance model for NIP Transformation needs new governance: ‘Innovation Direction Groups’ (R&I Advisory Council) to develop strategies for broad innovation areas (challenges) ‘Industry Board’ (international experts) will advise on targeted cluster policy to select lead clusters in these domains

8. ‘Smart Specialisation’: exploring new methodologies Flemish innovation and industrial policy is in search of a method for making choices, to reach the targets of the Flemish ‘Pact 2020’, based on transformation of value chains, spearhead domains, lead-companies and open innovation, targeted cluster policy. • Own frontrunner experiences: e.g. FISCH (Flanders Initiative for Sustainable Chemistry) • Transformation strategy supported by broad mobilisation in sector = Strategic research; open innovation infrastructures; new bus. models • Develop world-class industrial cluster via international benchmarking • International policy learning: lead-role in new OECD project ‘Smart Specialisation in Global Value Chains’ • Use of strategic monitoring & case-studies for ‘discovery’ of smart specialisation • Aimed at criteria for identifying smart specialisations & design strategies • S3 Platform: Call for Working Group on benchmarking strategic governance for smart specialisation, linked with OECD project

9. Tools for strategic monitoring: specialisation profiles 1. Benchmark comparativestrengths in S&T andeconomic performance

10. Another tool: FOCUS MATRIX for Smart Specialisation Strategies 2. Identify smart specialisations at cross-road of regional innovation competences and market opportunities/societal challenges

11. Another tool: cluster maps for smart specialisations 3. Map eco-systems for smart specialisations Idea Consult

12. Call for collaboration in S3 Platform • What is new? Smart specialisation = interactive development of focus strategies in a (interdependent) knowledge-based economy • Comparative advantage= a competitive and cooperative ‘positioning’ • Joint ‘discovery process’, to align strategic partners in distinctive regional clusters (role of strategic intelligence) • Multi-level policy framework (shared objectives, road maps, indicators) • OECD project: design and assess smart specialisation strategiesDiscovery process, aided by strategic intelligence & adequate governance • ‘Base-line’: measurement of specialisations and assessment of capabilities for developing smart specialisation strategies (templates) • ‘Beyond the base-line’: real-life processes - case-studies on development of strategic cluster strategies; self-assessment tool for strategic governance • Call for joint S3 project: benchmarking strategic governance (‘RIS 2.0’) • Mobilising unexploited potential for value creation and productivity growth through complementarity of regions based on their comp. advantages • Assessing & upgrading regional innovation strategies

13. Interested? Please contact me!Thank you Department of Economy, Science and Innovation (EWI)Koning Albert II-laan 35 box 10, 1030 Brussels www.ewi-vlaanderen.be | info@ewi.vlaanderen.be