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Smart specialisation strategy for the South-Estonia

Smart specialisation strategy for the South-Estonia. 2014 Spring. Garri Raagmaa UNIVERSITY of TARTU garri@ut.ee +372 5 2 7 8899. South-Estonia in a Nutshell. 325 th. inhabitants & 15 th square km territory Traditionally dominated by agriculture and forestry

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Smart specialisation strategy for the South-Estonia

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  1. Smart specialisation strategy for the South-Estonia 2014 Spring Garri Raagmaa UNIVERSITY of TARTU garri@ut.ee+372 5278899

  2. South-Estonia in a Nutshell • 325 th. inhabitants & 15 th square km territory • Traditionally dominated by agriculture and forestry • Peripheral location: 2-4 hours driving distance from the main transport hubs - capital Tallinn or Latvian capital Riga (onlyoneflighttoHelsinki from Tartu) • South-Estonian centre Tartu is old university and medical centre • characterised by low level entrepreneurship • dominance of publicly financed institutions

  3. Overall context • Estonia depends 2013-20 heavily on EU investment grants • EU requirements for the strategies of smart specialisation • Estonian central ministries act like silos – everyone has it’s own smart specialisation • Local authorities are dispersed and have low administrative and development capacity • Predominant is centralist and elitist approach: • Understanding smart specialisation as something high tech and science related • smart specialisation so far managed from Tallinn only

  4. Warningof too narrowapprochin SS byD.Foray Sleeping giant agrofood Excitedgoblingshightech cluster Hungrydwarfs lowtechSMEs Sectoral level A narrow view of smart specialisation! Source:Foray 2012

  5. Central agencies of SS • Ministries of Education and Economy • Development Fund and Estonian Enterprise as implementing agencies • Ministry of Interior – regional SS • Ministry of Agriculture • Primary sector R&D • LEADER programmes • Ministry of Culture – creative industries • Ministry of Social Affairs – • Major investmentstohospitals • training programs

  6. South-Estonian (SE) approach to SS • Everybody, except Tallinn civil cervants, hate papers! • Awareness rising and involvement of SE institutions • Larger local governments • County governments • Regional business development centres (BAS) • Defining growing business sectors and their needs for R&D • Involving central ministries and agencies to the process • Promoting place based entrepreneurial discovery model • Combining central measures suitable for the SE • SESSS - NOT A PAPER BUT NETWORKING PROCESS ACTIVATING DIFFERENT SS-STAKEHOLDERS

  7. Action so far • SE economic sectors overview done by Fac. of Econ. • Involvement of larger urban centres of SE • Personal contacts & two meetings • Discussing possible collaborationwith SE county development departments and BAS • Networking with most promising enterprise clusters / domains -> what are their R&D needs? • Communication with ministries and centralagencies – involving key persons responsible for SS application to the SESSS process

  8. Further action with SESSS • Combining central agencies SS-related measures to meet bottom up initiatives • Defining/selling SS Domains for the SE public • Designing and choosing viable projects for a SS shopping list“ acceptable for central agencies • Building up South-Estonian institutional capacity based on Tartu Science park & South-Estonian BAS-network • Securing entrepreneurial discovery taking place in SE • Involvement and linking SE enterprise (their unions) with the SS shopping list as beneficiaries (owners) • Agreeing on projects and enterprise side co-finance • Public awareness rising via media

  9. Results by the end of May (ideal) • Representatives of South-Estonian key public institutions and enterprise leaders have true knowledge about the options provided by the national SS-measures • Agreement on the SESS domains achieved: • Shortlist of SS/enterprise development related projects to be developed agreed among stakeholders • Input to the county (6) development plans • Agreement with the Estonian Enterprise and Development fund on the application of some SS-measure by SE-based institutions

  10. Commentsaboutthe SE domains • Woodenhouses: greatgrowthratesbutlow R&D • Food & milksector: dominanceoflargemultinationalfirmsnotinterestedaboutlocal R&D • Health/biotechsector: strongresearchcapacity, verydifferentcompanies (bysize and businessmodels) • Redbiotechstillsciencerelated and notbusinessminded • GreenbiotechhasDairyCompetenceCentreand severalpatentsdevelopedduringthelast programmingperiod • ICT & electronics/mechatronics • Softwaredevelopment - a quite number ofgloballycompetitivefirms • Regionalindustrialsoftware and elecronicsstillembryonic

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