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Understanding smart specialisation

Understanding smart specialisation. Dominique Foray KEEN Regions – final conference Brussels – 17th April, 2012. 1 - Introduction. Into what domain, what activity, a region would benefit from and should specialize in R&D and innovation?

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Understanding smart specialisation

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  1. Understanding smart specialisation Dominique Foray KEEN Regions – final conference Brussels – 17th April, 2012 Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  2. 1 - Introduction • Into what domain, what activity, a region would benefit from and should specialize in R&D and innovation? • Regions cannot do everything in STI so they need to focus on certain domains • They need to focusby developing distinctive and original areas of specialisation (not by imitating each other) • These domains where innovative projects will complement the region’s other productive assets Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  3. Smart specialisation is largely about the policy process to select and prioritize fields or areas where a cluster of activities should be developed • Setting priorities, selecting fields always entail risks for policy makers • The ‘business as usual’ strategies to minimize risks in setting priorities • Smart specialisation suggests another strategy • To let entrepreneurs discovering the right domains of future specialisations • To start a policy at a certain point in the development cycle where a degree of local commitment and development have already occured and achieved Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  4. D.Foray, P.A. David and B.Hall Smart Specialisation: the Concept

  5. It is not a planning doctrine thatwouldrequire a region to specialize in a particular set of industries. • It is an approach to policythatconsiderswhetherthoseactivitiesalreadystrong or showing promise for a regioncanbenefitfrom (more) R&D and innovation Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  6. 2 - Stories Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  7. Publicité en 1910 Lunettes Léon Jeantet Lunettes Léon Jeantet

  8. Publicité en 1910 Lunettes Léon Jeantet Lunettes Léon Jeantet Entrepreneurial discovery Entry & growth Policy Structural evolution

  9. Med.Tech. in Switzerland 1’300 companies 45’000 employees Annual turnover of CHF 20.3 billion Share of export:70% Global leaders: Synthes, Straumann A global hub for MNCs R&D °: location of med-techmanufacturers and suppliers Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  10. First clinic for orthopaedic applications in Orbe, 1780 Theodor Kocher Nobel Laureate Medicine, 1909, transformed the InselSpital (Bern) into a tool factory Traditionalhandcraftskills in mechanical and clockmanufacturing Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  11. Critical episodes Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI Martin Allgöwer

  12. Martin Allgöwer Hansjörg Wyss Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  13. Entrepreneurial discovery! Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  14. Patents granted at EPO Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  15. Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  16. Finnish pulp & paper • The Finnish Pulp and Paper (P&P) industry views nanotechnology as promising source of valuable applications innovations, and its firms are taking steps to assess this potentiality. • Some of the P&P companies are responding to these opportunities by increasing their overall internal R&D investments. • The goal is not only about implementing available technologies but also exploring recent advances in areas of nanotechnology and biotechnology. Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  17. Movingfromnails to eye-glasses Inventingmedical technologies Discovering the potential of nanotech. in pulp & paper Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  18. Movingfromnails to eye-glasses Entrepreneurial Discoveries !! Inventingmedical technologies Discovering the potential of nanotech. in pulp & paper Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  19. 3 - The dynamics of.. • Entrepreneurial discovery • Entry & growth, agglomeration, clusters • It constitutes the confirmation that others see the discovery as meaningful • ‘Entry’ is desirable to generate agglomeration externalities (clusters) and a diversity of innovators (large and small) • Structural changes • The outcome of entrepreneurial discoveries is not a simple innovation. It is about structural changes • Spaces

  20. Not only for the best • Innovation is multi-dimensional; not only one game in town • Basic inventions and development of applications • With focus on different sectors, KEEN Regions has greatly used this framework • At minimum smart specialisation strategies transform less advanced regions into good followers Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  21. 4 - Policy Transition Modernisation Diversification Foundation Structural evolution Entries & growth Discovery Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  22. 4 - Policy Transition Modernisation Diversification Foundation Entries & growth Structural evolution Discovery What are the structural conditions and policieswhichwillincrease the likelihood of suchevent?

  23. 4 - Policy Transition Modernisation Diversification Foundation Structural evolution Entries & growth Discovery Is the dynamicsreplicable?

  24. 4 - Policy Transition Modernisation Diversification Foundation Structural evolution Entries & growth Discovery To be flexible and rigid Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  25. 4 - Policy e e e Transition Modernisation Diversification Foundation Structural evolution Entries & growth Discovery n m Regions are open Building extra-regional connections iskey (Market, Expertise, Neighborhood) Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  26. There are as manyspecial cases as regions in Europe • Regularities? • Typologies? • Metropolitan KIS • Public knowledgecenters • High techregions • Traditionalsouthernregions • Knowledgeabsorbingregions • SkilledindustrialeastEuropeanregions • Skilledtechnologicalregions Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  27. RA : rich in entrepreneurial capabilities • RB: strong history of industries’development not necessarily associated with strong entrepreneurship • RC: poor in entrepreneurial capabilities Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  28. Three steps • Supporting the discovery process • Detecting discoveries and making sound evaluation of potentials • Defining a process which will empower those actors most capable of realising the potential (entries & growth) Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  29. 5 - Three final observations • Smart specialisation does not mean uniformisation • Related diversification at regional level • Greater diversity at system level • Smart specialisation needs to be based on powerful industry structure • Firm’s diversity • Innovation needs to be not too concentrated (avoid creative myopia) Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  30. Not only a value for individual regions but also at system level (the EU, the US, Japan, South Korea, Mexico or Australia) • Smart specialisation at regional level will promote greater diversity at system’s level Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  31. All these policy challenges…. • Supporting the discovery process • Detecting discoveries and making sound evaluation of potentials • Defining a process which will empower those actors most capable of realising the potential • … require unusual observation and analysis capabilities by policy makers and regional agencies Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

  32. Thanks! Collège du Management de la Technologie – CDM Chaire en Economie et Management de l'Innovation – CEMI

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