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The Future of European Regions Panel Six : Towards a European Research Programme

The Future of European Regions Panel Six : Towards a European Research Programme War s aw, June 2nd, 2007. Will the European regions truly matter in the future global battlefield?. Jean-Marie ROUSSEAU jeanmarie.rousseau@gmail.com. Yet entered into a Knowledge Area!.

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The Future of European Regions Panel Six : Towards a European Research Programme

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  1. The Future of European Regions Panel Six: Towards a European Research Programme Warsaw, June 2nd, 2007 Will the European regionstruly matter in the future global battlefield? Jean-Marie ROUSSEAUjeanmarie.rousseau@gmail.com

  2. Yet entered into a • Knowledge Area! 2.Competing with emergent K-regions in a moving battlefield… 3.Only Creative Actors within Smart Regions will keep an edge Will the European Regions matter in the future global battlefield?

  3. Part 1 Either a flat worldor a spiky reality? • Contrary to the idea that the world is flat, • the reality, as Richard Florida argued, is spiky: • “In terms of both sheer economic horse power and cutting- edge innovation, surprisingly few regions truly matter in today’s global economy.” “What’s more, the tallest peaksare growing ever higher, while valleys mostly languish.” “The world is spiky”,Atlantic monthly, Oct. 2005 • Old globalism: international business invested in regions with low-cost land & labour to serve as export platforms to produce high-volume commodity products. • Next globalism: the best locations to host high-value, specialised & innovation-related activities.

  4. To what extent Competitiveness is Changing the Global Deal? • Infact, inthe last few months new players are revolutionising again the global scenario we live in: • America, Japan, and Europe to a less extent, are maintaining their outstanding edge, but… • Today, the US technological edge may be slipping and the most serious challenge is not from the EU… • In this revolution, Asian countries are at the centre of a global battlefield, especially China.

  5. EUROPE IN THE WORLD ECONOMY Per cent of world GDP at purchasing power parity 80 60 40 20 0 JAPAN INDIA CHINA USA Other EU15 ITALY UK FRANCE GERMANY 1700 1820 1870 1900 1913 1957 1973 1995 2003 Source: Angus Maddison

  6. What about Potential Research and Knowledge Beacons? 2004: $629 billion 2024: $1320 billion USA 36 % USA 33 % EU15 17 % OECD Report 2006 CHINA 2nd EU15 22 % Japan 17 % Japan 10 % Japan 10 % China 5 % China 15 %

  7. JAPAN USA EU-15 EU-25 CHINA 1998

  8. As a scientific power, China doesn’t content any more with out-performing Europe in absolute terms… but should out-perform Europe in R&D intensity (means compared with GDP) ; • In addition, China has at its disposal a powerful Industrial Research: . with 476 R&D own-stated centres, . but also 750 R&D centres with foreign investments… 3.20 2.6 1.9 1.31 JAPAN 3.2 2.95 USA 2,8 2.59 EU15 1.99 1.86 1.9 EU25 1.82 1.31 CHINA 0.70 1998 2000 2003 2007 2009

  9. Is China about to become a “Technological Superpower”? Richard FLORIDA again, argues that one of the consequences of globalisation is that: Cities and Regions find themselves competing for ever smaller niches, by mixing their talent & cost advantages in sophisticated ways. Part 2 知 区 识 聚 集 Just six Cities – Beijing, Shanghai, Tianjin, Shenzhen, Shenyang and Guangzhou – produce 58 per cent of all invention patents Shi Zhi Ju Ji QuKnowledge – Clustered - Regions

  10. PART OF THE RURAL POPULATION 1997 > 85% 84-80% 79-70% 69-60% 59-50% < 50% • the BoHai Rim (BHR) which includes Beijing with its surrounding areas and Tianjin on the coast, parts of Hebei province and Qingdao, Weihai and Yantai in Shandong province; # 80 M inhabitants • YRD, "Yangzi River Delta" region which includes Shanghaiand 14 other cities in the southern part of JiangsuProvince and the northern part of Zhejiang Province -close to the river delta; # 82 M inhabitants • the so-called Pearl River Delta (PRD), which includes Guangzhou and Shenzhen, Hong Kong and Macao and several closely linked cities in Guandong province; # 48 M Three Great Clustered Mostly Promising Areas Fast Learning Regions Main citiesmillion inhabitantsfrom 7 to 15 from 3 to 6.9 from 1 to 2.9

  11. BoHai Rim 54 ECONOMIC-TECHNOLOGICAL DEVELOPMENT ZONES CENTRAL CHINA 14 NEI MENGGU WESTERN CHINA 10 SHANDONG JIANGSU COASTAL CHINA 30 KNOWLEDGE AREAS PROVINCES (23) AUTONOMOUS REGIONS ZIZHIQU (5) CITY-REGIONS (4) ZHEJIANG Yangzi River Delta HONG KONG SAR MACAO SAR Pearl River Delta

  12. The Chinese Ministry of Trade, MOFCOM, recently ranked the55 High Tech Park (HTP or HIDZ) as following: • 1st Wuqing (Tianjin) • 2ndGuangzhou (Guangdong) • 3rdKunshan (Jiangsu) • 4th Qingdao (Shandong) • 5th Caohejing (Shanghai) • 6th Yantai (Shandong) • 7th Zhongguancun (Beijing) • 8th Dalian (Liaoning) • 9th Nanjing (Jiangsu) • 10th Hangzhou(Zhejiang) TOP TEN KNOWLEDGE-INTENSIVE AREAS NEI MENGGU SHANDONG JIANGSU ZHEJIANG HONG KONG SAR MACAO SAR

  13. A truly potential ‘World Mega-Technopolis’ BINHAI All along the Northern coast (153 km), a new and huge development zone is being created, since the Chinese government decided (March 2006). Included in the BOHAI RIM DELTA and leant against Tianjin City (see above), BINHAI will be the main driving force of China (The Economist, June 26, 2006). It is to be much bigger than Shanghai or Shenzhen, since its harbour, yet the biggest of North China, would double its capacity before 2010. The FDI expectations: 20 billion$ within the 4 coming years, 16 billion$ in the last decade. Tianjin also will invest 15 billion$ for 17% within the next 5 years. In 2006: 260 FDI projects approved, whose 5 with > 100 million $.

  14. When European Regions willdecide to embrace the future… • As nothing sorts of catastrophe will stop China, European regions haven’t only to adapt: They must anticipate! • Hence, the challenge of the European regions is to anticipate the new world of the 21st century. • About 168 regions, with an aggregate population of 493 million should invest in the creation of ideas. • Without radical reform,European regions will risk becoming a mere intellectual backwater…

  15. Ultimately, place matters because people matter Part 3 • Talented & creative people want to be where action is: where their ideas stand the best chance of coming to fruition. • The new globalism/regionalism results in a rapid feedback loop that threatens the industry and then moves to a higher level of competitiveness. • Creating a resilient region will more and more require a new commitment to social innovation - changing mind-sets, practices, and institutions fundamentally in both the workplace and the community…

  16. Starting from scratch, some regional policies might emerge as a – late – but necessary means “to prevent Lisbon from becoming a synonym for missed objectives and failed promises*” * Kok Report, 2005 BENCHMARKING … marking indicators & ranking compared areas REGIONAL OBSERVATORY FORCASTING Analysis of strong trends & weak signs + extrapolations “Ground Zero” Starting point

  17. BENCHLEARNING Drawing lessons, trying to adapt good practices to the local context by: . reinforcing the identity and . enhancing the attractiveness of talents… .blowing into an enhanced dynamic for an open and learning society; MARKETING THE TERRITORY (mere & passive) REGIONAL OBSERVATORY BENCHMARKING FORECASTING

  18. Preventing from looming any Creativity crisis, choosing a ‘Preferred Future’ in order to understand blockages for achieving it. MARKETING THE TERRITORY BENCHLEARNING EXPLORING ITERATIVELY TIMES AND CONTEXTS (mere & passive) REGIONAL OBSERVATORY BENCHMARKING ITERSPECTIVE FORECASTING

  19. Generating THE CREATIVE TENSION between a current position and where we want to be in the future! MARKETING THE TERRITORY PROMOTING THE LOCAL IMAGE AND RE-TUNING THE SOCIETAL LANDSCAPE (mere & passive) REGIONAL OBSERVATORY EXPLORING ITERATIVELY TIMES AND CONTEXTS EXPLORING AND ‘REMEMBERING THE FUTURE’

  20. Tool-KIT Knowledge Intelligence Technology KNOWLEDGE PROCESS TO PUT INTO MOTION LEARNING PROCESS, VALIDATION OF NEW IDEAS, IN ORDER TO FACE WITH SCEPTICISM & RESISTANCE TO INNOVATION TALENT POOL PLATFORMS WITH AN INTERNAL CROSS-FERTILISED, BUILT UP P.P.P. AND INTER-PERSONAL RELATIONSHIPS. Constructing the Regional Advantage for Rising Knowledge Markets FOR SHARED STRATEGIES, MOTIVATION OF ACTORS, IN TERMS OF COMMON VALUES AND COMMON PROJECTS: MOBILISATION HUMUS HUman resources Mobilisation of local Actors and of USers of Knowledge NET Plus Networks Exchange of Talents

  21. Towards a more volatile world of global innovation • European Regions must learn how to ride constant waves of innovation, which cause ‘creative destruction’ with major consequences for both organisations and people. • The special habitat for innovation and entrepreneurship consists of dense, flexible networks ad relationships among entrepreneurs, venture capitalists, university researchers, lawyers, highly skilled employees and others who know how to translate ideas into new commercial products & services fast enough to stay on the edge of innovation curve.

  22. The fruitful European Regionswill be the ones able to ride constant‘Waves of Innovation’ jeanmarie.rousseau@gmail.com Jean-Marie ROUSSEAU

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