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Outline

Can peripheral areas innovate? Sara Davies Open Innovation Forum, Kouvola, 23-24 August 2010 Research funded by the UK Innovation Centre (BIS, ESRC, NESTA and TSB). Outline. Concepts of innovation and peripherality Sectoral structure and innovation Conditions for innovation

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Outline

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  1. Can peripheral areas innovate? Sara DaviesOpen Innovation Forum, Kouvola, 23-24 August 2010Research funded by the UK Innovation Centre (BIS, ESRC, NESTA and TSB)

  2. Outline • Concepts of innovation and peripherality • Sectoral structure and innovation • Conditions for innovation • Innovative strategies in peripheral areas • Policy challenges

  3. Concepts of innovationand peripherality • Innovation and geographical proximity • Policy focus on innovation ‘in the regions’ • What about peripheral/rural areas? • Case studies of innovation in remote areas • Social / organisational proximity • ICT opening up access to markets/knowledge • Idea of hidden innovation • Practices not reflected in R&D/patent data

  4. Patent applications/mn pop, 2007,National & 2 rural regions(Source: Eurostat)

  5. R&D spend as % of GDP, 2007,National & 2 rural regions(Note: France & Italy data are for 2004. Source: Eurostat)

  6. Sectoral structure and innovation in peripheral areas • Sectoral structure differs in peripheral areas • More agriculture/forestry/fishing and energy • Less manufacturing • Fewer business services • More tourism/hospitality & public services • Innovation varies across sectors • Traditional definitions of innovation are biased towards technology-based manufacturing

  7. Conditions for innovation in peripheral areas (1)(Framework developed by NESTA, UK)

  8. Conditions for innovation in peripheral areas (2)

  9. Innovative strategies in peripheral areas • Becoming a leader • Using local natural resources • Drawing on an image of remoteness • Building on local human capital • Creating new processes & services

  10. Innovative strategies (1): Becoming a leader • Eg. oil/gas-related engineering, electronics • Kinds of innovation • Can include R&D, technological, organisational and marketing innovations in specialist sectors • World-leading products for global markets • Conditions for innovation • Public funding for infrastructure, higher education, research, business aid • Attraction of dynamic, growing firms • But… • Few regions • Few sectors even in these regions

  11. Innovative strategies (2):Using local natural resources • Eg. renewable energies, Arctic technologies • Kinds of innovation • Can include R&D, technological, organisational and marketing innovations in specialist sectors • Focused on national/global markets • Conditions for innovation • Expertise and technology, often from outside • Natural resources that need to be used in the region • But… • Limited to resource-based sectors

  12. Innovative strategies (3):Drawing on an image of remoteness • Eg. food, creative sector, tourism, outdoor goods • Kinds of innovation • Mainly organisational and marketing • Focused on national/global markets • Conditions for innovation • Value of remoteness in urban markets • Local human skills & expertise • Policy support for infrastructure • But… • Limited to certain sectors (some with low profitability)

  13. Innovative strategies (4): Building on local human capital • Eg. business services, creatives, tourism • Kinds of innovation • Mainly organisational, marketing, technological adaptation • Focused on national/global markets • Conditions for innovation • Depends on area’s natural, cultural, social attractiveness • Transport and ICT networks • But… • Some sectors have low pay, long hours and poor job security

  14. Innovative strategies (5):Creating new processes & services • Eg. e-health, community enterprise • Kinds of innovation • Mainly organisational, technological adaptation • Focused on local/national markets • Conditions for innovation • Public sector funding or commitment to universal services • Local expertise, skills and commitment • Interest in other regions (eg. more efficient public services) • But… • Limited sectors • Often public sector dependence

  15. Policy challenges • Improve conditions for innovation in peripheral areas • Encourage entrepreneurship • Improve access to finance • Enhance (links to) public research • Stimulate (participation in) competition • Boost (access to) demand • Build infrastructure to allow physical openness • Promote openness in terms of attitudes and orientation • Support firms’ existing innovation strategies within the region • Becoming a leader • Using local natural resources • Drawing on an image of remoteness • Building on local human resources • Creating new processes and services

  16. Thank you for listening! Sara.Davies@strath.ac.uk http://www.eprc.strath.ac.uk/irr/

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