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Smart specialisation and innovative-led growth in the EU states

Eugene Eteris, BC/RSU, Riga, 21.07.2017.Print version
The Commission intends to shape a broader approach to boosting innovation-led growth in the EU. Thus, it is proposing a new set of actions to further help Europe's regions invest in their niche areas of competitive strength (so-called "smart specialisation") and generate the needed innovation, resilience and growth. The Baltic States have to find their sectors of growth, i.e. niche areas of competitive strength.

Smart specialisation has made a real difference in the way European regions are designing their innovation strategies, creating or reinforcing cooperation at all levels, especially with local business spheres.

 

There is room for improvement: to better help regions catch the train of globalisation, the Commission identifies four main challenges to regional innovation, as well as actions and policy solutions to tackle them, under the regions' smart specialisation strategies.

 

The experience acquired so far with current Cohesion policy programmes, together with the modern actions and policy solutions will provide a useful input in preparing the next Multiannual Financial Framework.

 


Boosting innovation-led growth

The Commission intends to shape a broader approach to boosting innovation-led growth in the EU, with the objective of making smart specialisation a comprehensive tool to help all regions seize the opportunities brought by technological change, digitisation and industrial modernisation.

 

Challenge 1: Boosting innovation capacity in less-developed and industrial transition regions

The Commission already highlighted the specific needs of less-developed regions in relation to their innovation capacities and connection with global value chains. Commission-supported pilot projects led in two Polish regions showed promising results, especially as regards the development of competitive clusters and the reform of the business environment.

Regions in industrial transition face different challenges. Trailing behind in terms of innovation in a globalised context, they don't benefit from the same EU financial support as less-developed regions, although they may be unable to attract sufficient investment to develop new comparative advantages and move up the value chain. Often carbon intensive, they can combine lack of an appropriate skills-base, high labour cost and deindustrialisation.


Thus, the Commission proposes to accompany the industrial modernisation of these regions with the EU-funded pilot action including a number of volunteer regions to help revamp their innovation systems on the basis of their smart specialisation strategies.


This pilot action will provide on-demand support from Commission experts as well as technical assistance actions supported by the European Regional Development Fund (ERDF), in order to facilitate the combined use of existing EU instruments with the aim to accelerate innovation uptake, remove investment barriers, facilitate reskilling and prepare for industrial and societal change.

These partnerships should be in place by March 2018. By the end of 2018, each partnership should have defined a set of actions to foster economic transformation, identifying possible funding opportunities at European, national and regional level.


As to the Commission's "EFSI 2.0" proposal, this hands-on support could be complemented by guidance by Commission investment envoys on the ground on opportunities to combine EU funds and instruments, such as the European Fund for Strategic Investments, EFSI and Cohesion Policy funds.

 

Challenge 2: Increasing cooperation in innovation investment across regions

To develop innovative products and expand beyond local markets to create – or rebuild – European value chains, regions and their local industrial spheres need to join forces and pool their resources, in tight partnership with innovation actors and researchers.


Interregional investment networks in industrial renewal already exist. The Vanguard initiative gathers 30 EU regions who jointly develop high value added projects, on the basis of matching smart specialisation priorities.


This Initiative has served as model for thematic Smart Specialisation platforms, under which 100 regions with matching assets can develop project pipelines, share research infrastructure (testing facilities, data centres or Fab-Labs) and benefit from the expertise of Commission experts.


Thus the Commission proposes: to go one step further and build on existing networks and platforms with the EU-funded pilot action by the end of 2017 in order to scale-up interregional innovation projects. Small projects will have the opportunity to integrate large investment pipelines, bringing together EU funds in the most efficient way.


Five to ten thematic partnerships will be created with policy-makers, researchers, businesses and other innovation actors. High value added economic sectors will be targeted, such as bioeconomy, big data, health or connected mobility as well as traditional sectors with innovative manufacturing processes.


The smart specialisation thematic platforms will act as the coordination structure where selected partnerships can work with teams established within the Commission, involving experts from several Commission departments.

 

Challenge 3The need to reform regional innovation systems

As a prerequisite for the EU states to benefit from Cohesion Policy funding in research and innovation, smart specialisation has proven to be a powerful incentive for states and regions to carry out reforms and improve multi-level governance.


Broader reform efforts of regional research and innovation systems require particular attention to three cross-cutting issues, according to recommendations issued in the context of the European Semester: the quality of public researchefficient business-science cooperation with the right support for technology transfer, and a business-friendly environment.

Efforts to conduct reforms should be complemented by investments in the right skills, education and training to better match today's and tomorrow's job market demands, in line with the EU New Skills Agenda.


What the Commission proposes:


Thus the Commission will step up its efforts to encourage the states to make full use of available EU support to facilitate the design and implementation of reforms. For example, on-demand assistance from the Structural Reform Support Service can help improve the business environment and break down silos between administrative bodies.


The Horizon 2020 Policy Support Facility will help the states address obstacles in their research and innovation systems, including those related to an effective implementation of smart specialisation strategies.


EU states are invited to reinforce the dialogue with all concerned stakeholders in the course of the European Semester process, including regions and local authorities. They should also develop local skills-bases by better linking vocational education and training systems to smart specialisation priorities.

 

Challenge 4: Facilitating synergies between EU policies and instruments

Currently there is a substantial number of regional, national and European policy instruments aiming at research and innovation, growth and competitiveness or at promoting interregional cooperation.


Efforts have already been undertaken to promote and simplify combinations and synergies between the European Fund for Strategic Investments (EFSI), Horizon 2020 and Cohesion policy funds. 


Thus the Commission proposes cooperation with national and regional authorities and help them combine the funds, in particular by providing further clarifications on synergies as regards state aid and public procurement.


To boost interregional cooperation, the Commission will continue to work with the European Parliament and Council in the context of the ongoing discussions on the mid-term review of the Multiannual Financial Framework to further facilitate transnational investments, such as the implementation of operations outside an EU funds programme area. The Commission will also provide stakeholders with a comprehensive mapping of support actors and facilities to foster cross-regional industrial partnering and access to competences.


Simplifying synergies and aligning rules between different EU funding instruments is high on the Commission's agenda in the framework of the discussion on the future of the EU finances which the Commission launched on 28 June with its reflection paper.


In this context, a High Level Group on Simplification for the beneficiaries of EU funds set up by the Commission recently published its final conclusions for the post-2020 framework, with ideas to facilitate further combinations between EU funds.

http://europa.eu/rapid/press-release_MEMO-17-1994_en.htm?locale=en

 


European Commission helps regional economies in the era of globalisation

Globalisation has brought many opportunities for the EU states; however, while the benefits are widely spread, the costs are often borne unevenly as the Commission highlighted.


To take up the challenge of economic modernisation, the EU needs to empower its regions and help them create value. This means embracing innovation, digitisation, decarbonisation and developing people's skills.

 

Thus, the Commission is proposing a new set of actions(18.07.2017) to further help Europe's regions invest in their niche areas of competitive strength (so-called "smart specialisation") and generate the needed innovation, resilience and growth.

 

Smart specialisation: background. Introduced as a prerequisite to ensure effective Cohesion Policy spending in research and innovation, smart specialisation has required all regions to design investment strategies based on their own competitive assets – from agrifood specialties and tourism to nanotechnologies and aerospace.

 

Under these strategies, local businesses are receiving financial support to develop innovative products and expand beyond local markets. These strategies have also resulted in better links between science and business as well as improved coordination at all levels of local governance.

 


Commissioners on regional growth

Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness said that reaping the benefits of globalisation the member states need "enabling environments", where the advances from trade and technology can materialise. "Locally-led and locally-owned investment and innovation strategies are key to take up this challenge and empower the EU regions", he added.


Commissioner for Regional Policy Corina Crețu mentioned that the EU states have entered the "glocal era", whereby the impact of global challenges is felt at the regional and local levels. The member states' economies are undergoing deep changes, she underlined and the EU institutions "can help the regions equip themselves with the right tools for robust and lasting growth; this is what smart specialisation is about."

 

Introduction in 2014 smart specialisation approach in all EU regional policy programmes has proven to deliver; the Commission intends to build on this positive experience with two pilot projects:

 

Tailored support for the specific challenges of regions facing industrial transition: on their request, certain regions can work in partnership with teams of Commission experts to boost their innovation capacity, remove investment barriers, equip citizens with the right skills and prepare for industrial and societal change, on the basis of their smart specialisation strategies.

Interregional innovation partnerships supported by EU funds: inspired by the success of the Vanguard initiative, the aim of this pilot project is to identify and scale up 'bankable' interregional projects that can create European value chains in priority sectors such as big data, bioeconomy, resource efficiency, connected mobility or advanced manufacturing.

 

In parallel, the Commission will step up efforts to help EU states address remaining bottlenecks to growth and establish business-friendly environments. Particular attention will be given to the quality and openness of public research, cooperation between businesses and universities and the alignment of local skills-bases with market demands, with the help of Commission support facilities.

 

The Commission will also look at ways of facilitating further synergies and combinations among different presently existed EU programmes and instruments oriented at innovation, growth and increased competitiveness.

 


Perspectives

The calls for interest for the industrial transition regions pilot action will be launched in the autumn this year. The interregional partnerships will be set up during 2017 and run throughout 2018.


The experience acquired so far with current Cohesion policy programmes, together with the actions and policy solutions put forward in this communication, will provide useful input in preparing the next budget framework, in the context of the ongoing reflection on the future of EU finances.

 

The Commission will consider stronger linkages between existing EU instruments with the common objective of responding to new industrial challenges. Smart specialisation could be scaled-up, to make it a comprehensive tool to help all regions take advantage of the changes brought by globalisation.

 

More information on the following websites: = Communication "Strengthening Innovation in Europe's regions"; = MEMO "Challenges ahead: boosting innovation-led growth in EU regions"; = Factsheet "Smart specialisation pilot actions"; = Factsheet "What is smart specialisation?"; = Country fiches "Smart specialisation in your country".

 

Source: http://europa.eu/rapid/press-release_IP-17-1995_en.htm?locale=en;

Latvian version at: http://europa.eu/rapid/press-release_IP-17-1995_lv.htm.

 






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