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Regional routes to the
     knowledge economy
           Knowledge Clusters for the
            European Research Area

        Dr Dimitri Corpakis,head of sector
                             DG RTD-M3
                      dimitri.corpakis@cec.eu.int
“PRIME” Stakeholders'Day, Paris 10 February 2006
About this talk

• On knowledge clusters
• The spatial dimension of knowledge clusters in Europe
• The location challenges of the European Research Area
  and the experience of the 2 rounds of the initiative on
  Regions of Knowledge
• Clustering the Europe of Knowledge: coordinating
  research, innovation and structural policies
• Developing global cluster connectivity: breaking the
  provincialism of Europe’s knowledge islands



 10 February 2006    PRIME Stakeholders' Day ©               2
                    D.Corpakis CEC-DG RTD.M3
On knowledge clusters




                                                     Source: ESPON TPG 2.1.2
• From Knowledge products to Knowledge Clusters / In the age of the
  Internet, geographical proximity remains a powerful development
  driver
• Sharing tacit and codified knowledge is more powerful when it
  involves proximity and trust / Knowledge clusters flourish when the
  right location conditions are met


 10 February 2006        PRIME Stakeholders' Day ©                     3
                        D.Corpakis CEC-DG RTD.M3
Creativity and Knowledge drive
                                            Growth




                                                         Source:
                                                Florida &Tinagli
                                                          (2004)
10 February 2006    PRIME Stakeholders' Day ©              4
                   D.Corpakis CEC-DG RTD.M3
The spatial dimension of
                    knowledge clusters in Europe
• Europe has a growing number of knowledge
  clusters which are unevenly spread in spatial
  terms
• Highest concentrations of R&D investment (as a
  share of GDP) heavily correlated with high rates
  of regional GDP
• 2 Axes starting from the North / Centre of Europe
  spanning one towards the UK and the other
  towards the Scandinavian countries
• Knowledge islands elsewhere
• Capital regions often monopolise R&D and
  knowledge investments
 10 February 2006        PRIME Stakeholders' Day ©   5
                        D.Corpakis CEC-DG RTD.M3
GDP per Head
                                                by Regions
                                                   2000




10 February 2006    PRIME Stakeholders' Day ©           6
                   D.Corpakis CEC-DG RTD.M3
R&D Expenditures
                                                       > 4% of GDP

                                                       Braunschweig 6.34

                                                       Väst Verige #5.00

                                                       Stockholm #5.00

                                                       Stuttgart     4.84

                                                       Oberbayern 4.76

                                                       Tübingen      4.23

                                                       Uusimaa       4.09

                                                       Syds Verige #4.00




                                                                       R&D
                                                                   Expenditures
                                                                    1.93% of
                                                                      GDP
28 regions out of 211 invest in R&D                                EU Average
   more than 1/2 the PRIME Stakeholders' Day ©
                             European                                 2000
  10 February 2006                                                          7
                   expenditure
                            D.Corpakis CEC-DG RTD.M3
10 February 2006    PRIME Stakeholders' Day ©   8
                   D.Corpakis CEC-DG RTD.M3
Regional RTD intensity as a percentage of national spending
                                           (2 top regions per country)



         D   - Oberbayern (14%)+     Stuttgart (12%)      = 26%
         GR   - Attiki (49%) + Kentriki Makedonia (18%)       = 67%
         E   - Madrid (32%) + Catalonia (23%)         = 55%
         F   - Ile de France (45%)+ Rhône-Alpes (10%) = 55%
         I   - Lombardia (24%)+ Lazio (19%)       = 43%
         NL - Zuid-Holland (25%)+    Noord-Brabant (18%)      = 43%
         A   - Wien (52%)      + Steiermark (14%)     = 66%
         P   - Lisboa (54%) + Norte (21%)         = 75%
         FIN - Uusimaa(47%) + Etelä-Suomi (30%) = 77%
         UK - South East (24%)+ Eastern (18%)         =
         42%



                                                       (source : Eurostat - mars 2002)


10 February 2006           PRIME Stakeholders' Day ©                           9
                          D.Corpakis CEC-DG RTD.M3
The location challenges of the European Research Area and the
                experience of the 2 rounds of the initiative on “Regions of
                                                                    Knowledge”)
•    ERA currently unevenly distributed
•    Severe disparities of knowledge persist, despite huge European efforts in
     Education and Training, Research and Innovation policies and the
     Structural Funds
•    A recent example of such efforts is the Regions of Knowledge initiative
     that has by now completed 2 rounds, mainly on an experimental basis
•     Introduced in 2003 by the European Parliament but fully developed by the
     Commission, it was implemented outside of the 6th FP with a budget of
     EUR 2,5 Million. A second FP6 round was launched end 2004 (8,9 Million
     budget) resulting in 18 new transnational trans – regional projects
•    Experimental activities involving networks of European regions (with the
     active involvement of universities, research centres, and the business
     community) to create "Knowledge regions", able to provide model
     regional implementations of the Lisbon strategy, that is, demonstrate the
     central role of knowledge in driving regional development.

    10 February 2006          PRIME Stakeholders' Day ©                10
                             D.Corpakis CEC-DG RTD.M3
The Regions of Knowledge
                                Pilot Action (KnowREG) (2003)

Focused on:
• (a) Technology audits and Regional Foresight
• (b) University Driven Actions for Regional Development
• (c) Mentoring Initiatives, where technologically advanced regions would co-
  operate with less advanced regions (Objective 1) in a "mentoring"
  partnership, for a more efficient innovation and technology transfer process.
• Projects had to have at least 3 partners coming from 3 different Member
  States
• 53 Proposals received in 45 calendar days during August – September
  2003 resulting in 14 projects (most ending 2006)




  10 February 2006           PRIME Stakeholders' Day ©                 11
                            D.Corpakis CEC-DG RTD.M3
Regions of Knowledge: main
                                    emerging patterns

     ●    Knowledge management models at regional
          level
     ●    Territorial pacts for knowledge building capacity
     ●    Projects favoured trans-national interlinkage of
          knowledge clusters
     ●    Regional operational models for active cooperation
          towards the knowledge based economy
     ●    Desire to develop new tools for organising and
          exploiting knowledge, not necessarily of local origin



10 February 2006         PRIME Stakeholders' Day ©        12
                        D.Corpakis CEC-DG RTD.M3
Clustering the Europe
                           of Knowledge
 • Focus on a revamped Lisbon Strategy that must deliver
    – make Europe a more attractive place to live and work
    – invest in knowledge and innovation for growth
    – create more and better jobs
 • Using all available instruments: the Structural Funds
   (SF), the R&D Framework Programme (R&D FP) and
   the Competitiveness and Innovation Framework
   Programme (CIP) (plus other related initiatives)
 • Cluster policy emerging as a common tool for the 3
   policy areas and instruments / providing a cost-
   effective flexible means for delivering Lisbon at
   regional level
17/10/05              CEC-DG RTD M3.1                13
Future Research Objectives and
                                            Activities
• Realise the ERA
• Progress towards the Barcelona objective
• Fund basic research
• Promote collaborative Research
• Strengthen RTD capacity ( key infrastructure + Regional
  Research Intensive Clusters (Regions of Knowledge) + Exploit
  better research potential of Convergence regions + Promote
  SME related research + develop coordination of national and
  regional policies
• Undertake ambitious Joint Technology Initiatives at European level
• Space + Security research
• Strengthen the Union's presence at International level

    10 February 2006      PRIME Stakeholders' Day ©            14
                         D.Corpakis CEC-DG RTD.M3
New Structural Funds (2007-2013):
                             Linking territorial development to knowledge

“Convergence” priority & “Regional competitiveness and
employment” priority
Regional competitiveness strand
(Innovation and the knowledge economy )
• Productive investment;
• Development of endogenous potential. Inter alia:
    • Services to enterprises
    • Promoting innovation and R&D,
          •inter alia, by reinforcing the links of SMEs with the knowledge base,
          supporting networks and clusters, or enhancing SMEs access to
          advanced technologies and innovation business services.
    • Promoting entrepreneurship
      by, inter alia, supporting the creation of new firms from universities and
    existing firms, or setting up new financial instruments and incubating
    facilities.
    • Direct aid to investment
    • Local infrastructures
    • Information society

 10 February 2006            PRIME Stakeholders' Day ©                    15
                            D.Corpakis CEC-DG RTD.M3
Creating synergies between research and
                  innovation policies and the Structural
                                                  Funds
• National and regional planning authorities have
  key role when producing Planning Documets
  (National Strategic Reference Frameworks and
  Operational Programmes)
• Commission Services: coordination at priorities
  setting level and implementation
• Common context (2007-2013):
  The Competitiveness of European Regions


 10 February 2006        PRIME Stakeholders' Day ©   16
                        D.Corpakis CEC-DG RTD.M3
Cluster engineering in FP7

• Regions of Knowledge: building R&D intensive
  clusters at regional level
  – Maintaining existing research intensive clusters
  – Developing new ones
  – Assistance focused on development of joint research
    agendas, coordination and steering structures and
    implementation plans (through analysis, foresight and
    benchmarking)
  – Mentoring of technologically backward regions
  – Coordination actions for better integrating research
    institutions in local and regional economies
• Interactions with CIP and similar Structural Funds
  activities
   10 February 2006     PRIME Stakeholders' Day ©     17
                       D.Corpakis CEC-DG RTD.M3
Global cluster connectivity: breaking
                  with the provincialism of Europe’s
                                knowledge “islands”
• Competitive regions in the knowledge economy need
  to:
   – enhance their attractiveness in physical and intellectual terms
     (develop physical but also knowledge infrastructure -
     universities, technology parks, R&D Centres)
   – create the appropriate framework conditions to attract
     innovative businesses
   – Attract Europe's creative class by developing smart
     environments
   – develop global connectivity with global knowledge networks
     and hubs


 10 February 2006         PRIME Stakeholders' Day ©              18
                         D.Corpakis CEC-DG RTD.M3
Creativity drives competitiveness

• “The ability to compete and prosper in the global
  economy goes beyond trade in goods and
  services and flows of capital and investment.
  Instead, it increasingly turns on the ability of
  nations to attract, retain and develop creative
  people.”
• Technology, Talent and Tolerance, the 3Ts of
  Economic Development (Richard Florida and Irene
  Tinagli, Europe in the Creative Age, 2004)

  10 February 2006         PRIME Stakeholders' Day ©   19
                          D.Corpakis CEC-DG RTD.M3
Net links


•    http://cordis.europa.eu.int/era/regions.htm
     (Regional Dimension of the ERA)
•    http://www.innovating-regions.org/
     (The IRE Network, Innovating regions in Europe)
•    http://europa.eu.int/comm/regional_policy/themes/research.htm
     (Structural Funds and Research / Innovation)
•    http://europa.eu.int/comm/research/index_en.html
     (DG Research official home page)
•    http://europa.eu.int/comm/research/nfp.html
     (The 6th Framework Programme (2002-2006)




10 February 2006           PRIME Stakeholders' Day ©                 20
                          D.Corpakis CEC-DG RTD.M3

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Prime Corpakis Regions2006

  • 1. Regional routes to the knowledge economy Knowledge Clusters for the European Research Area Dr Dimitri Corpakis,head of sector DG RTD-M3 dimitri.corpakis@cec.eu.int “PRIME” Stakeholders'Day, Paris 10 February 2006
  • 2. About this talk • On knowledge clusters • The spatial dimension of knowledge clusters in Europe • The location challenges of the European Research Area and the experience of the 2 rounds of the initiative on Regions of Knowledge • Clustering the Europe of Knowledge: coordinating research, innovation and structural policies • Developing global cluster connectivity: breaking the provincialism of Europe’s knowledge islands 10 February 2006 PRIME Stakeholders' Day © 2 D.Corpakis CEC-DG RTD.M3
  • 3. On knowledge clusters Source: ESPON TPG 2.1.2 • From Knowledge products to Knowledge Clusters / In the age of the Internet, geographical proximity remains a powerful development driver • Sharing tacit and codified knowledge is more powerful when it involves proximity and trust / Knowledge clusters flourish when the right location conditions are met 10 February 2006 PRIME Stakeholders' Day © 3 D.Corpakis CEC-DG RTD.M3
  • 4. Creativity and Knowledge drive Growth Source: Florida &Tinagli (2004) 10 February 2006 PRIME Stakeholders' Day © 4 D.Corpakis CEC-DG RTD.M3
  • 5. The spatial dimension of knowledge clusters in Europe • Europe has a growing number of knowledge clusters which are unevenly spread in spatial terms • Highest concentrations of R&D investment (as a share of GDP) heavily correlated with high rates of regional GDP • 2 Axes starting from the North / Centre of Europe spanning one towards the UK and the other towards the Scandinavian countries • Knowledge islands elsewhere • Capital regions often monopolise R&D and knowledge investments 10 February 2006 PRIME Stakeholders' Day © 5 D.Corpakis CEC-DG RTD.M3
  • 6. GDP per Head by Regions 2000 10 February 2006 PRIME Stakeholders' Day © 6 D.Corpakis CEC-DG RTD.M3
  • 7. R&D Expenditures > 4% of GDP Braunschweig 6.34 Väst Verige #5.00 Stockholm #5.00 Stuttgart 4.84 Oberbayern 4.76 Tübingen 4.23 Uusimaa 4.09 Syds Verige #4.00 R&D Expenditures 1.93% of GDP 28 regions out of 211 invest in R&D EU Average more than 1/2 the PRIME Stakeholders' Day © European 2000 10 February 2006 7 expenditure D.Corpakis CEC-DG RTD.M3
  • 8. 10 February 2006 PRIME Stakeholders' Day © 8 D.Corpakis CEC-DG RTD.M3
  • 9. Regional RTD intensity as a percentage of national spending (2 top regions per country) D - Oberbayern (14%)+ Stuttgart (12%) = 26% GR - Attiki (49%) + Kentriki Makedonia (18%) = 67% E - Madrid (32%) + Catalonia (23%) = 55% F - Ile de France (45%)+ Rhône-Alpes (10%) = 55% I - Lombardia (24%)+ Lazio (19%) = 43% NL - Zuid-Holland (25%)+ Noord-Brabant (18%) = 43% A - Wien (52%) + Steiermark (14%) = 66% P - Lisboa (54%) + Norte (21%) = 75% FIN - Uusimaa(47%) + Etelä-Suomi (30%) = 77% UK - South East (24%)+ Eastern (18%) = 42% (source : Eurostat - mars 2002) 10 February 2006 PRIME Stakeholders' Day © 9 D.Corpakis CEC-DG RTD.M3
  • 10. The location challenges of the European Research Area and the experience of the 2 rounds of the initiative on “Regions of Knowledge”) • ERA currently unevenly distributed • Severe disparities of knowledge persist, despite huge European efforts in Education and Training, Research and Innovation policies and the Structural Funds • A recent example of such efforts is the Regions of Knowledge initiative that has by now completed 2 rounds, mainly on an experimental basis • Introduced in 2003 by the European Parliament but fully developed by the Commission, it was implemented outside of the 6th FP with a budget of EUR 2,5 Million. A second FP6 round was launched end 2004 (8,9 Million budget) resulting in 18 new transnational trans – regional projects • Experimental activities involving networks of European regions (with the active involvement of universities, research centres, and the business community) to create "Knowledge regions", able to provide model regional implementations of the Lisbon strategy, that is, demonstrate the central role of knowledge in driving regional development. 10 February 2006 PRIME Stakeholders' Day © 10 D.Corpakis CEC-DG RTD.M3
  • 11. The Regions of Knowledge Pilot Action (KnowREG) (2003) Focused on: • (a) Technology audits and Regional Foresight • (b) University Driven Actions for Regional Development • (c) Mentoring Initiatives, where technologically advanced regions would co- operate with less advanced regions (Objective 1) in a "mentoring" partnership, for a more efficient innovation and technology transfer process. • Projects had to have at least 3 partners coming from 3 different Member States • 53 Proposals received in 45 calendar days during August – September 2003 resulting in 14 projects (most ending 2006) 10 February 2006 PRIME Stakeholders' Day © 11 D.Corpakis CEC-DG RTD.M3
  • 12. Regions of Knowledge: main emerging patterns ● Knowledge management models at regional level ● Territorial pacts for knowledge building capacity ● Projects favoured trans-national interlinkage of knowledge clusters ● Regional operational models for active cooperation towards the knowledge based economy ● Desire to develop new tools for organising and exploiting knowledge, not necessarily of local origin 10 February 2006 PRIME Stakeholders' Day © 12 D.Corpakis CEC-DG RTD.M3
  • 13. Clustering the Europe of Knowledge • Focus on a revamped Lisbon Strategy that must deliver – make Europe a more attractive place to live and work – invest in knowledge and innovation for growth – create more and better jobs • Using all available instruments: the Structural Funds (SF), the R&D Framework Programme (R&D FP) and the Competitiveness and Innovation Framework Programme (CIP) (plus other related initiatives) • Cluster policy emerging as a common tool for the 3 policy areas and instruments / providing a cost- effective flexible means for delivering Lisbon at regional level 17/10/05 CEC-DG RTD M3.1 13
  • 14. Future Research Objectives and Activities • Realise the ERA • Progress towards the Barcelona objective • Fund basic research • Promote collaborative Research • Strengthen RTD capacity ( key infrastructure + Regional Research Intensive Clusters (Regions of Knowledge) + Exploit better research potential of Convergence regions + Promote SME related research + develop coordination of national and regional policies • Undertake ambitious Joint Technology Initiatives at European level • Space + Security research • Strengthen the Union's presence at International level 10 February 2006 PRIME Stakeholders' Day © 14 D.Corpakis CEC-DG RTD.M3
  • 15. New Structural Funds (2007-2013): Linking territorial development to knowledge “Convergence” priority & “Regional competitiveness and employment” priority Regional competitiveness strand (Innovation and the knowledge economy ) • Productive investment; • Development of endogenous potential. Inter alia: • Services to enterprises • Promoting innovation and R&D, •inter alia, by reinforcing the links of SMEs with the knowledge base, supporting networks and clusters, or enhancing SMEs access to advanced technologies and innovation business services. • Promoting entrepreneurship by, inter alia, supporting the creation of new firms from universities and existing firms, or setting up new financial instruments and incubating facilities. • Direct aid to investment • Local infrastructures • Information society 10 February 2006 PRIME Stakeholders' Day © 15 D.Corpakis CEC-DG RTD.M3
  • 16. Creating synergies between research and innovation policies and the Structural Funds • National and regional planning authorities have key role when producing Planning Documets (National Strategic Reference Frameworks and Operational Programmes) • Commission Services: coordination at priorities setting level and implementation • Common context (2007-2013): The Competitiveness of European Regions 10 February 2006 PRIME Stakeholders' Day © 16 D.Corpakis CEC-DG RTD.M3
  • 17. Cluster engineering in FP7 • Regions of Knowledge: building R&D intensive clusters at regional level – Maintaining existing research intensive clusters – Developing new ones – Assistance focused on development of joint research agendas, coordination and steering structures and implementation plans (through analysis, foresight and benchmarking) – Mentoring of technologically backward regions – Coordination actions for better integrating research institutions in local and regional economies • Interactions with CIP and similar Structural Funds activities 10 February 2006 PRIME Stakeholders' Day © 17 D.Corpakis CEC-DG RTD.M3
  • 18. Global cluster connectivity: breaking with the provincialism of Europe’s knowledge “islands” • Competitive regions in the knowledge economy need to: – enhance their attractiveness in physical and intellectual terms (develop physical but also knowledge infrastructure - universities, technology parks, R&D Centres) – create the appropriate framework conditions to attract innovative businesses – Attract Europe's creative class by developing smart environments – develop global connectivity with global knowledge networks and hubs 10 February 2006 PRIME Stakeholders' Day © 18 D.Corpakis CEC-DG RTD.M3
  • 19. Creativity drives competitiveness • “The ability to compete and prosper in the global economy goes beyond trade in goods and services and flows of capital and investment. Instead, it increasingly turns on the ability of nations to attract, retain and develop creative people.” • Technology, Talent and Tolerance, the 3Ts of Economic Development (Richard Florida and Irene Tinagli, Europe in the Creative Age, 2004) 10 February 2006 PRIME Stakeholders' Day © 19 D.Corpakis CEC-DG RTD.M3
  • 20. Net links • http://cordis.europa.eu.int/era/regions.htm (Regional Dimension of the ERA) • http://www.innovating-regions.org/ (The IRE Network, Innovating regions in Europe) • http://europa.eu.int/comm/regional_policy/themes/research.htm (Structural Funds and Research / Innovation) • http://europa.eu.int/comm/research/index_en.html (DG Research official home page) • http://europa.eu.int/comm/research/nfp.html (The 6th Framework Programme (2002-2006) 10 February 2006 PRIME Stakeholders' Day © 20 D.Corpakis CEC-DG RTD.M3