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EUROPEAN COMMISSION
Regional Policy
Innovation, Knowledge economy
and regional competitiveness
Role of structural funds in the New
Period 2007-2013
GUY DURAND
DG REGIO
LJUBLJANA, 7-8 JUNE 2005
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
• The Union is confronted with:
•
high socio-economic disparities between Member States
and between regions
•
increasing competition on the one hand with the USA and
Japan and on the other hand with the new emerging
countries of South East Asia in particular China and India.
•
A technological revolution and the ageing of its population.
• Facing up to these challenges requires the
implementation of co-ordinated policies centred on the
improvement of competitiveness. This is the objective of
the Lisbon strategy.
• It aims to help the Member States, in co-operation with
the Commission, to improve the identification of the
issues and the adaptations necessary to strengthen
competitiveness, employment and growth.
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
Cohesion Policy and Lisbon
• The European Council of march 2005
underlined the need to re-launch the
Lisbon Strategy. " The Union must mobilise
all appropriate national and Community
resources-including cohesion policy".
• The EU will support the Lisbon process
with various complementary means such
as the Competitiveness and Innovation
Programme, the R&D framework
programme, and the cohesion instruments
• Structural Funds are the main EU funding
source of Lisbon
• 2000-2006: 50% of SF support directly
relevant to Lisbon
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
Knowledge economy – the Lisbon
Process
• The European Council also underlined that
greater ownership of the Lisbon objectives on the
ground is necessary involving regional and local
and social partners, for example in areas where
proximity matters such as innovation and the
knowledge economy, entrepreneurship, support
for SMEs
• Knowledge, meaning R&D, innovation and
education, is a key driver of productivity growth
and at the heart of the Lisbon process for creating
growth and jobs.
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
Support for regional competitiveness proposed financing for 2007-2013
1. Convergence and Competitiveness
•
79% of the cohesion budget (264 BL €)
2. Regional Competitiveness and
Employment
•
•
17% of the cohesion budget (58 BL €)
of this: phasing-in regions (9.54 BL €)
3. Territorial Cooperation
•
4% of the cohesion budget (13 BL €)
Currently discussed in Council …
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EUROPEAN COMMISSION
Regional Policy
Geographical Eligibility 2007-2013
Draft April 2005, GDP/head  2000-2001-2002
Convergence objective
Regions > 75% in EU25)
Convergence objective
statistically affected regions
Objective Regional
Competitiveness and
Employment
Phasing-in regions,
"naturally" above 75%
Objective Regional
Competitiveness and
Employment
Index EU 25
= 100
Quelle: Eurostat
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20/5/2005
EUROPEAN COMMISSION
20/5/2005
Regional Policy
Thematic concentration
1 Making Europe and its regions a more
attractive place to invest and work
• expand and improve transport
infrastructures
• improve the environment
• improve energy efficiency and
development of renewable sources
• help maintain a healthy labour force
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
2 Improving knowledge and innovation
for growth
• increase and improve investment in
RTD
• facilitate innovation and promote
entrepreneurship
• promote the information society for all
• improve access to finance
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
3 More and better job
• attract and retain more people in
employment and modernise social
protection systems
• improve adaptation of workers and
enterprises and the flexibility of the
labour market
• increase investment in human capital
through better education and skills
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
Territorial cohesion and cooperation
• contribution of cities to growth and jobs
• supporting the economic diversification of
rural areas
• cross-border, trans-national and
interregional cooperation
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EUROPEAN COMMISSION
Regional Policy
Regional RTD expenditure in 2002
in % of GDP
EUR-27 = 1.92
< 0.45
0.45 – 0.8
0.8 – 1.16
1.16 – 1.88
>= 1.88
no data
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20/5/2005
EUROPEAN COMMISSION
20/5/2005
Regional Policy
innovation and regional environment
• the over innovation performance of an economy depends
not only on how firms and research institutes perform, but
also how they interact with each other and with the public
government.
• Innovation is the result of frequent interactions between
people, firms, organisations whose knowledge and knowhow are strengthened reciprocally and accumulate.
• proximity between different actors makes it easier for
them to create, acquire, accumulate and utilise knowledge
faster than firms outside of knowledge intensive, dynamic
regional systems of innovation
• This is why increasing importance should be given to
networks which connect companies to their environment
(e.g. other companies, universities, training and research
centres…)
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
Different innovative behavior requires different policy
designs and ways of measuring innovation potential
• ERIS-European Regional Innovation Survey conclusions:
• “Small firms show a high preference for local
and regional cooperation partners. They have a
much higher share of intra-regional linkages
than large firms”.
• “”Innovating firms are much more engaged in
networking than non-innovating firms”
• “Small firms cooperate to a lesser extent with
universities and other research institutes, while
medium size and large firms make much more
use of this information and knowledge pool.
Because their preference for local and regional
partners, small firms depend greatly on the
supportive quality of their regional environment
and the innovation-relevant knowledge sources
available there”
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
innovation and regional environment
In regions four situations can coexist, each one requiring
measures for innovation adapted to its character:
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•
A competitiveness pole based on at least one major companies
(e.g. Philips in Eindhoven) which develops local co-operation
with other companies in particular SMEs, universities, schools
of engineering, technology centres, training centres.
•
A university pole of excellence (e.g. Louvain,), which facilitates
spin-off companies and coopere with companies of the region.
The opening of the university to the economic world leads to
major fertilisation between research and companies.
•
One or more groups of SMEs which spontaneously organise
themselves in clusters (e.g. Italian industrial districts) or which
were helped by public authorities to develop a cluster (e.g. the
Spanish Basque country).
•
SMEs without co-operation links. individual aid provided by
business support services in areas such as: management,
organization marketing, technological transfer, ICT, recruitment,
and other professional and commercial services.
EUROPEAN COMMISSION
20/5/2005
Regional Policy
Improving knowledge and innovation
for growth - Main aims
• address low levels of research and technological
development, especially in the private sector
• promote innovation through new or improved products,
processes and services which can withstand international
competition
• increase regional capacity to generate and absorb new
technologies
• bring businesses into regional and international networks
where they can co-operate and have access to sources of
knowledge and technology.
• provide more support for risk-taking
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
Objective “Convergence”:
Research and technological development (R&TD),
innovation and entrepreneurship:
•
•
•
•
•
•
•
•
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strengthening of regional R&TDI capacities;
aid to industrial R&TD in SMEs
technology transfer
improvement of links between SMEs, universities
and R&TDI centres
development of business networks and clusters
support for the provision of business services to
groups of SMEs
fostering of entrepreneurship
provision of innovation funding sources for SMEs
EUROPEAN COMMISSION
20/5/2005
Regional Policy
Objective “regional competitiveness and employment"
Support to the design and implementation of regional innovation
strategies conducive to efficient regional innovation systems:
• Enhancing regional R&TD and innovation capacities directly
linked to regional economic development objectives by
supporting industry or technology-specific competence
centres; by promoting technology transfer;
• Stimulating innovation in SMEs by supporting the introduction
of new or improved products, processes or services onto the
market,; by supporting business networks and clusters of
SMEs, by promoting cooperation between SMEs and
universities, and by facilitating SMEs’ access to business
support services;
• Promoting entrepreneurship by facilitating the economic
exploitation of new ideas, and by fostering the creation of
new firms from universities and existing firms;
• Creating new financial instruments and incubation facilities
conducive to the creation or expansion of technology-based
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firms.
EUROPEAN COMMISSION
20/5/2005
Regional Policy
to "deliver" innovation and
competitiveness
• improved governance and coordination
of public policies for innovation
• regional innovation strategies and
actions plans
• evaluation/benchmarking, exchange of
experiences
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
Building synergies between CIP and the
Structural Funds under INTER REGIONAL
Cooperation
• Interventions must be based on an
understanding of SMEs needs, effective
policies for boosting enterprise and
entrepreneurship, innovation and ICT use,
investments in environmental technologies,
energy use, good practice in equity
instruments and technology transfer.
• Where the CIP identifies and promotes best
practice and excellence in these fields,
cohesion funds should ideally be used by
national and regional authorities as the main
instrument to bring those who are lagging
behind up to these levels of excellence.
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
Building synergies between FP7 and
the Structural Funds
• Community policies on R&D and
Cohesion are complementary and
mutually reinforcing
• FP7 activities will develop an increased
regional dimension in particular under the
“Capacities” programme.
• The Structural Funds will reinforce R&D
investment in all EU regions and have the
capacity to improve the overall framework
conditions for research, innovation and the
knowledge economy.
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EUROPEAN COMMISSION
20/5/2005
Regional Policy
Future Cohesion policy
a more strategic approach
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
Definition of Union priorities in a Strategic
Guidelines document to be established by the
Council on the basis of Commission
proposals ( probably end June)

Translation by the Member State of these
Community priorities in a proposal for National
Strategic Reference Framework. The
Commission negotiates the proposal in the
framework of the partnership.

Implementation by means of regional and
thematic Operational Programmes
EUROPEAN COMMISSION
Regional Policy
THANK YOU FOR
YOUR ATTENTION
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20/5/2005