Dr. Rolf Reiner Wirtschaftsförderung Region Stuttgart GmbH (WRS)

1. Regional innovation strategies beyond Lisbon targets: improved regional innovation performance through cluster management Dr. Rolf Reiner Wirtschaftsförderung Region Stuttgart GmbH (WRS)

2. Content • Introduction • the European automotive sector • trends in the automotive sector • the cluster management approach • Background • regions and clusters • Services and tools • ppp models • examples for services • Lessons learned • Outlook

3. Introduction: the European automotive sector • OEM and suppliers: • Big multi-technology suppliers • medium-sized, family-owned suppliers of modules in the pre-modularisation sense • suppliers of components, mostly small firms. • Hierarchical structure • Globalisation and regionalisation • System integration and modularisation

4. Introduction: trends in the automotive sector • High innovation pressure • Increased number of car types and variants • Niches and specialists, knowledge intensive services • Reduced development time • Increased cost pressure and globalisation of the markets • Re-configuration of the production value chain SMEs need high flexibility and inventiveness. Innovation is crucial for competetiveness.

5. Introduction: the cluster management approach • information and communication services • initiation and support of co-operation projects • support of technology transfer • training and qualification • financial services • public relations and marketing • internationalisation • exchange of knowledge and good practices Overall aim: to develop capabilities at small and medium enterprises and link them up to the fast changing developments in the sector.

6. Background: Stuttgart Region • ~155.000 companies • Gross domestic product:92 billion Euro (2003) • Unemployment rate ~6 % • Most important industries: Automotive, Engineering, Electrical, IT, Media. • Headquarter of corporate groups such as DaimlerChrysler, Porsche, Bosch, Trumpf, Behr, IBM, HP, Alcatel-SEL etc. • Extremely high research intensity and density • R&D expenditure by industry in the Stuttgart Region makes ~6 % of the GDP!

7. Background: automotive cluster in the Stuttgart Region • OEM‘s: DaimlerChrysler, Porsche • Suppliers: Bosch, Mahle, Behr, Valeo, TRW, Bennecke-Kaliko, Mann + Hummel, Recaro, Harmann/Becker, ...... • SME‘s: 300 • Machine Building Industry • Engineering • Research institutions • Roughly 180.000 Jobs

8. Background: automotive cluster in Upper Austria 265 partner companies: 175 SME 155 production companies Regional distribution: Upper Austria 165 Other provinces 85 Germany 20 90 suppliers 5 OEM 60 companies 103 service providers & institutions machine and plant construction OEM engineering Suppliers of systems and modules (Tier1) logistics tooling Component suppliers (Tier2) IT services mould making Raw materials, standardized parts (Tier3)

9. Background: the Hungarian automotive sector • Production Value • 6.44 Billion USD (2001) • 14% of the total Industrial Production ; 31% of the machining industry • Total number companies: ~ 280-300 • Number of companies with system certificates: ~ 220 companies • Advanced automotive systems in place: ~ 110 companies • Total number of employees: ~ 85.000 people • Export ratio: above 90 % • Most important export market: European Union • Significant ratio of foreign ownership: above 80% • Approx. 10% of the total FDI, approx. 10 billion Euro in automotive field

10. Towards ppp: the emergence of high-tech clusters in the Stuttgart Region Future? 2005 1995 1985 Automotive? Nanosystems Fuelcell Energy Converters Sensors/actuators Neuroengineering Tissue-engineering Drug modelling Sentient computing Autonomous Sytems ...? 1960 Automotive Telecoms Electrical Software Toolmaking Automation Simulation/VR Med tech Nanosystems Nanomaterials Tech. Textiles Mechatronic Aerospace Logistics 1930 Automotive Telecom Electrical Computers Software Med tech Toolmaking Automation Robotics Mechatronic Aerospace Logistics Automotive Electrical Computers Software Telecom Toolmaking Med tech Microsystems Radio/TV Robotics Aerospace 1900 Automotive Telecom Electrical Computers Toolmaking Med tech Radio/TV Print Aerospace Automotive Telecom Electrical Textile Radio/TV Print Aero Automotive Toolmaking Textile Print Matchstick, Portable Drilling Machine, Automobile, Spark Plug, Perlon Stockings, Office Photocopier, Lever Arch File, Refrigerator, Bra, Coffee- Machine, TV-Tower, Mainframe Computer, ABS, Airbag, ESP…

11. Design Media Toolmaking Automotive ICT ET Public-private partnership: identifying promising fields Fuelcell Virtual Reality/ Simulation Electrical

12. Competence Centers Stuttgart Region A model for ppp: Regional Competence Centres • Well organized regional networks integrating possibly all regional companies, universities, research facilities working in the same field of technology. • Transformation of results to negotiable products and services • Optimization of the use of innovative potentials of companies, universities and research facilities • Stimulation and and support of co-operations(also Private-Public) • Initiation and support start-ups • Platform for (large scale) projects

13. Competence Centers Stuttgart Region The Competence Centre Program 1999: Advertisement of a regional contribution program „Regional Innovation and Competence Centres“ 2000: Installing Competence Centre Support Unit at the WRS (coordination office) 2000-2002: Supporting the implementation of „Regional Innovation and Competence Centres“ with a contribution of 2 Mio. € Since 2003: Supporting innovative projects initiated by the Regional Competence Centres dealing with • the support of the access to national international contribution programmes • the stimulation and support of business co-operations • the support of innovative product or service development • Budget for project contribution: 250.000 € per year

14. Solar Technologies Logistics Vaihingen/Enz Backnang Marbach Kreis Ludwigsburg Kornwestheim Welzheim Rems-Murr-Kreis Landeshaupt- stadt Stuttgart Weinstadt Esslingen Ostfildern Leinfelden- Echterdingen Göppingen Denkendorf Filderstadt Kreis Göppingen Kreis Böblingen Kirchheim/Teck Geislingen/Steige Nürtingen Competence Centers in the Stuttgart Region Telecommunication Online Services Environmental Technologies Virtual Dimension Center Simulation and Virtual Reality in Industrial Applications E-Government Fuelcell Technology Mechatronics Speech Technologies Facility Management Mediatechnologies Technical Textiles Mobile Computing

15. Results of the Regional Competence Centre Initiative • 16 Competence Centres in different fields of technology • Very high level of participation: > 350 companies (80% SME) > 60 institutes and research facilities • Extensive private investments could be triggered with little public money • Many co-operation and/or research projects initiated (private and public funded) (> 80) • Significant improvements of the Private-Public-Partnership • Improved access to national and European funding programs for the members • Requests for additional Competence Centres (in and outside the Stuttgart Region)

16. Services: plant visits in Upper Austria Plant visits The personal benefit for the participants: opportunity to get in touch with the direct contact persons – purchasers, engineers, construction, etc. eg: Bombardier Rotax, BMW Motoren GmbH, Fronius International, Case, ECS St. Valentin, MIBA, Frictec, MIBA Sinter, Magna Intier Ebergassing, Magna Oberwaltersdorf, SKF Steyr, ZF Steyr, KTM Sportmotorcycles,…

17. Further examples: services offered by PANAC • Access to industry news and information • Trainings, workshops, specialists events • Technology transfer services • Individual company assessment • Industry-wide benchmarking activity • Inter-company learning • International Relations • Cluster to Cluster Cooperation (Business Forums, one-on-one business meetings, international Cluster Cooperation projects) • Technical assistance • Project management services • Involvement in EU co-operation projects

18. Services: courses offered by Clusterland Oberösterreich Courses in „Quality management Automotive“ Dates and further information: www.automobil-cluster.at

19. Services: courses offered by Clusterland Oberösterreich Courses in „Project management Automotive“

20. Some recommendations and lessons learned • Critical mass of customers needed • centralised approach for new sectors • decentralised approach for innovation support of „traditional“ businesses • Stakeholders‘ involvement necessary from the very beginning • Public support crucial for success • Cluster management by independent unit • Personal skills of cluster managers crucial for success

21. Lessons learned: relevance of services and activities Stage of network creation: • Communication, marketing, events, partnering with other initiatives Network operation: • Programs, communication, network consistence Fostering innovation capability: • Projects, access to funding, education and training Fostering competitiveness: • Projects, programs, education and training

22. Outlook • DG Enterprise and Industry supports learning in cluster management through Europe INNOVA • 11 networks active within 7 industrial sectors • see: http://www.europe-innova.org • Join the first Europe INNOVA conference, Re-innovating Europe: Challenges for clusters and innovative businesses, Valencia, Spain, 26-28 November 2006

23. Thank You for Your Attention!

24. Contact Wirtschaftsförderung Region Stuttgart GmbH Dr. Rolf Reiner Friedrichstr. 10 70174 Stuttgart Germany Phone : + 49.711.2283519 Fax : + 49.711.2283555 E-mail : rolf.reiner@region-stuttgart.de