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Systems of Innovation and Policies in Economics and Policy of Innovation

Explore the breakdown of National, Regional, and Sectoral Systems of Innovation, with a focus on actors like Firms, Universities, and Government Institutions. Dive into the role of education, research, and government policies in shaping technological advancements. Learn about the EU Innovation Policy, the Italian National System of Innovation, and recent policy initiatives in Research and Innovation sector.

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Systems of Innovation and Policies in Economics and Policy of Innovation

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  1. Systems of Innovationand PoliciesEconomics and Policy of InnovationDEAMS, 8-5-2017Claudio CozzaAREA Science Park, Trieste

  2. The system in a picture

  3. Various breakdowns • National System of Innovation • Regional System of Innovation • Sectoral System of Innovation

  4. The organisations / main actors • Firms; • Education system (Universitites); • Public Research Organisations (PROs); • Financial institutions; • Political institutions. (Institutions can be meant both as “actors” or as “sets of institutional rules”).

  5. A first definition (Freeman, 1987) A national system of innovation (NSI) is a “network of institutionsin the public and private sectors whose activities and interactions initiate, import and diffuse new technologies”. As a consequence, they influence the direction of a society technological change. Two elements: actors and their interactions.

  6. 1st type of interaction:vertical = clients/suppliers Type of relations: more stable, based on trust less uncertainty lower transaction costs codes, common languages tacit knowledge

  7. 2nd type of interaction:horizontal = competitors Type of relations: technological cooperation networks of firms uncertainty, due to the persistence of competition spatial concentration

  8. Education system and Scientific Research Investments (mainly by Universities and PROs) in: • Human Resources • Cultural improvement of society • Development of techno-scientific competences • Exchange of knowledge and personnel • Basic and Applied Research • Diffusion of results • Collaboration projects

  9. Role of government andtechnological policies • Policies aimed at creating and developing specific technologies: • R&D funded by the government; • Policies protecting newly-born industries • Policies for the reinforcement of competition • Policies for IPR protection

  10. Role of government andtechnological policies (2) • Policies aimed at: • The development of technological infrastructures (including telecommunications, transport, buildings etc.) • The development of formal organisations and networks supporting innovation: • Generic (chambers of commerce, industrial associations, etc.) • Specific (Technological Industrial Districts, Scientific Parks, Technological Poles, etc.)

  11. The EU Innovation Policy Lisbon Strategy  EU2020 targets • 2000 − The European Council launched the Lisbon Strategy, aimed at transforming the EU by 2010 into ‘the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion’ • 2002 − In Barcelona, a further aim was added, namely to spend by 2010 at least 3 % of GDP on research, of which two thirds should be financed by the business sector • 2010 – Launch of the Europe 2020 Strategy. Different targets with different thresholds by country (Italy: 1.53% by 2020)

  12. Have Lisbon Strategy targets been achieved?

  13. The Italian NSIMain EC data source:RIO (Research and Innovation Observatory)https://rio.jrc.ec.europa.eu/en

  14. Low R&D expenditures Estimation for Italy in 2015: 1.33%

  15. Distribution of R&D expenditures Universities Public sector Business

  16. Low business R&D expenditures…

  17. … and rarely top business R&D players

  18. Low rates of innovative SMEs

  19. Low rates of innovative SMEs (2)

  20. Increasing distribution of R&D expenditures across Italian regions... North-Western Italy

  21. … but still very concentrated

  22. Good performance in outputs, but only thanks to few regions

  23. Late on tertiary education

  24. Not technology importers, nor exporters

  25. However…

  26. Number of scientific articles per million $ invested in R&D

  27. Number of articles per researcher

  28. Italian R&I:recent policy initiatives • The revision of ASN • The new research system assessment • The innovative start-up laws (2012 and 2015) • The tax credit reform • The patent box • The doctoral reform • Launch of the National Research Plan (PONREC 2014-2020)

  29. Italian policymakers for R&I • MIUR for research and MISE for innovation are the main players for the national R&I funding mix. • Also other ministries are involved • The Digital Italy Agency (AgID), has the responsibility to fund R&D in ICT. • EU structural funds and FP funding are relevant but not yet at a comparable degree to the central budget. • In Italy institutional funding continues to play a major role. • Regions do not invest large amount of resources in R&D, their involvement usually happens into the framework of the PONREC.

  30. International comparisons

  31. R&D EXPENDITURES AND GDP GROWTH (average 2000-2013) R&D Expenditures (% on GDP) GDP Growth rate (%)

  32. Adriatic Sea

  33. YOUTH UNEMPLOYMENT

  34. R&D EXPENDITURES IN THE REGION Year and source: 2014, Eurostat; *BiH: Agency for Statistics, 2012; *Albania: UNESCO and national sources

  35. R&D HUMAN CAPITAL IN THE REGION Sources: R&D Personnel: Eurostat, 2013 data (2011 for Montenegro and Serbia); Albania: UNESCO and national sources PHD Graduates: Eurostat, 2013 data (Albania, INSTAT 2013)

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