Future Challenges for Smart Specialisation - Peter Berkowitz, Directorate General for Regional and Urban Policy, European Commission
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Future Challenges for Smart Specialisation
Peter Berkowitz, Directorate General for Regional and Urban Policy,
European Commission
30 June 2021
Why do we have smart specialisation in Cohesion Policy?
Europe’s innovation divide
Cohesion policy is the main source to address innovation divide
DG REGIO Calculations
Designing transformative solutions
A time of transitions
Transforming the • Industrial
• Digital
EU’s economy for a
Increasing the EU’s Climate sustainable future A zero pollution ambition
ambition for 2030 and 2050 for a toxic-free environment
• Demographic
Supplying clean, affordable
and secure energy
The Preserving and restoring
ecosystems and biodiversity
• Climate
European
Green
Deal
• Environment
Mobilising industry From ‘Farm to Fork’: a fair, healthy
for a clean and circular economy and environmentally friendly food • Educational
system
Building and renovating in an Accelerating the shift to
And leaving
energy and resource efficient way sustainable and smart mobility
no one behind
Designing a set of
deeply transformative policies
Enabling condition for smart specialisation
Policy objective Specific objective Name of enabling condition
1. A more competitive and smarter ERDF:
Europe by promoting innovative and Specific objectives 1.1 and Good governance of national or regional
smart economic transformation and 1.4 under this policy smart specialisation strategy
regional ICT connectivity objective
Fulfilment criteria for the enabling condition
Smart specialisation strategy(ies) shall be supported by:
1. Up-to-date analysis of challenges for innovation diffusion and digitalisation
2. Existence of competent regional / national institution or body, responsible for the
management of the smart specialisation strategy
3. Monitoring and evaluation tools to measure performance towards the objectives of the
strategy
4. Functioning of stakeholder cooperation (“entrepreneurial discovery process”)
5. Actions necessary to improve national or regional research and innovation systems, where
relevant
6. Where relevant, actions to manage industrial transition
7. Measures for enhancing cooperation with partners outside a given Member State in priority
areas supported by the smart specialisation strategy
What needs to be done?
1. Involve a broader range of stakeholders
Source: Study on prioritisation in S3 in the EU, Prognos/CSIL (2021)2. Make the EDP more operational
Source: Study on prioritisation in S3 in the EU, Prognos/CSIL (2021)3. Improve Prioritisation
Prioritisation
All regions Less Transition More
developed developed
Total 1014 325 189 500
Average per region 5.5 5.6 5.4 5.4
Median 5.0 6 5 5
Range: MIN – MAX 2 -15 2 – 15 2–8 2 – 15 Directionality
Table 0-1 (ex. sum.): Number of priority areas of the RIS3 strategies in Member States/regions (latest RIS3 strategy year)
Source : Prognos / CSIL (2021). Note : n=185 regions. Mobility &
Logistics Social Innovation &
7% Welfare, 1%
Tourism, Cultural &
Materials & Energy & Other, Creative
Alignment of Project Selection Advanced Energy Storage
1%
Industries
9%
Manufacturing 7%
11%
84% Construc-
60% tion, 2% Agrofood &
Aerospace & Bioeconomy
Defense, 2%
50% 52% CleanTech &
21%
ICT & Industry 4.0 CE, 4% Blue
40% 15% Growth,
3%
Fashion,
30%
Media &
Creative Ind.
Health & Life
4%
20%
Sciences
18%
16% 15% Legend: Only single assignments. One priority
10% 14% area was assigned to one topic. n = 997
0%
S3 alignment as an eligibility condition - S3 alignment as a preferential criterion in S3 alignment as an eligibility condition - No specific alignment criteria
substantial the selection process formal
n=2324
Source: Prognos / CSIL (2021).4. Strengthen the research and innovation ecosystem: links with the European Semester Country Report 2020 • Poland is taking measures to enhance the economy’s innovative capacity, but a significant rise in innovative outputs is still to materialise. • Polish companies, particularly small ones, show a slow uptake of digital technologies. • Poland is introducing measures to improve its scientific performance. • The potential of cooperation between science and business remains underexploited. The role of technology transfer centres in the process of innovation diffusion remains limited.
5. Increase focus on Innovation diffusion
SMEs introducing
product and process
innovations
Source: Regional Innovation Scoreboard 2019, EC (2019)6. Improve FDI spillovers and GVC integration
Source: Study on FDI, GVC and regional economic development
for DGREGIO, Commotti/Crescenzi/Iammarino (2020)7. Build on complementary specialisation capabilities
Maps on relatedness
for 7 key technologies,
showing for each
region top 5 regional
matches. For example
for batteries for the
Dresden (DED2) region
Chemnitz, Stuttgart,
Arnsberg, Mittel-
franken and
Malopolskie are the 5
best regional matches.
https://paballand.github.io
/4-relatedness-top-
matches-nuts2-
Batteries.htm
Source: Balland/Boschma study `beyond patents´ for REGIO (2020)8. Prepare for Interregional Innovation Investments – 570m Euro Strand 1 - Financial and Advisory Support for Investments in Interregional Innovation projects • Supporting partnerships to connect demand and supply side to accelerate interregional innovation investments in shared Smart Specialisation priority areas. • Starting from concrete business cases, support to the development of portfolios of projects by selected partnerships. • It might include connecting, developing or making complementary use of testing and demonstration facilities to accelerate market uptake and scale up innovative solutions Strand 2 - Financial and Advisory Support for the development of value chains in less developed regions • Increasing the capacity of regional innovation eco-systems in less developed regions to participate in global value chains as well as the capacity to co-invest in partnerships with other regions. • Creating linkages between less developed regions with those in lead regions. • Focus on foreign direct investment, (FDI) driven value chains & other emerging sectors.
9. Strengthen policy synergies
Pillar 2 Policy Objective 1
Pillar 1 Pillar 3 A more competitive and smarter Europe by
Excellent Science Global Challenges and Innovative Europe
European Industrial promoting innovative and smart economic
Competitiveness transformation and regional ICT connectivity
• Health Developing and enhancing research and
European Research Council • Culture, Creativity and European Innovation Council
innovation capacities and the uptake of
Inclusive Society advanced technologies
• Civil Security for Society
Marie Skłodowska-Curie Clusters • Digital, Industry and Space European innovation
Reaping the benefits of digitisation for
• Climate, Energy and ecosystems
Actions citizens, companies, research
Mobility organisations and public authorities
• Food, Bioeconomy, Natural
Resources, Agriculture and European Institute of
Enhancing sustainable growth and
Environment Innovation
Research Infrastructures competitiveness of SMEs and job creation
and Technology
in SMEs, incl. by productive investments
Joint Research Centre
Developing skills for smart specialisation,
industrial transition and entrepreneurship
Widening Participation and Strengthening the European Research Area
Enhancing digital connectivity
Widening participation and spreading excellence Reforming and Enhancing the European R&I system10. Use smart specialisation as basis for synergies
• Partnership Agreements and programmes have to take into account relevant 2019
country specific recommendations when selecting policy objectives (Art. 8(a)
and 17(3)(a)(iii) Common Provisions Regulation (CPR))
• Partnership Agreements have to set out arrangements for using the CPR Funds in
an effective and efficient manner and complementarities between the shared
managed Funds and other Union instruments (Art. 8(b)(ii) CPR).
• Smart Specialisation Strategies are key to synergies with Horizon Europe,
Single Market Programme, Digital Europe Programme and other EU smart growth
related instruments.
• S3 "Entrepreneurial Discovery Process" should bring together the industry and research and
innovation "communities" (and other relevant stakeholders).
• S3 priority setting facilitates finding partners in other MS for cooperating on related topics and
value chains. (Annex IV to CPR)11. Develop new tools for smart specialisation
Strengthen Monitoring and evaluation
• Improve information collection systems
• Make data more available
• Make use of innovative methodologies – ex-ante and ex-post counterfactual impact
evaluation
Capitalisation of knowledge about governance and EDP
• Extensive knowledge has been generated, need to ensure transferability
• Link with effectiveness
Policy tools for industrial transition, innovation diffusion, value chains
• Need for new policy frameworks – green innovation, local industrial policy, socially
inclusive growth
• Anticipation of effects of disruptive technologies
Does smart specialisation work?
• Related versus unrelated diversification?
• Do strategies reflect scientific, economic or technology structures? Are they used?
• Have smart specialisation strategies made a difference? Does targeting work?Thank you! Regional and Urban
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