Swietokrzyskie Region: towards a RIS3 strategy. Brno, March 2013 Aleksandra Wozniak

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1 Swietokrzyskie Region: towards a RIS3 strategy Brno, March 2013 Aleksandra Wozniak

2 Peer-Review Expectations: To check whether our approach towards selecting smart specialisations is appropriate To benchmark our process of selecting smart specialisations To exchange experience about activities aiming at greater stakeholder involvement To gain knowledge about the tools of monitoring smart specialisations To learn about experiences of other European regions related to the RIS3 elaboration process

3

4 SWIETOKRZYSKIE basic information Item Value % of country Rank out of 16 regions Area 11.7 km th Population 1.27m th GDP per capita 6, % 12 th GERD (total) 40.4m 1.6% (2.7%) 13 th GERD per capita 32 48% 10 th Environmentally protected areas 66% of the region s territory

5 Cooperation the the World Bank Swietokrzyskie Region World Bank October 2012 initiating cooperation between Swietokrzyskie Region and World Bank The scope of cooperation: - preparing initial review of the first draft of the Research and Innovation Strategy - veryfying the approach towards selecting smart specialisations - preparing monitoring and evaluation system - preparing the action plan for RIS3 The results of the review are included in the presentation

6 Two faces of the region significant disparities Dark side Bright side 1. Periphery m people within the range of 200 km. 2. One of the highest unemployment rates.. 2. Subregion Buski - unemployment rate is 7.6% (Nov. 2012). 3. One of the lowest GDP per capita in Poland and Europe. 3. 5th richest poviat in Poland (Starachowicki). 4. Not too many successful companies visible outside of the region. 4. 3rd richest Polish business person in Kielce (Michał Sołowow 2 billion EUR). 5. Poor sports infrastructure. 5. Highest rate of sports teams playing in first leagues in Poland (football, handball, volleyball, etc.) 6. Low productivity agriculture. 6. Example of high added value - strawberry seed oil (1L=160 EUR). 7. Low competitiveness and exports. 7. Ranked 7th among cities in Poland on quality of living (Newsweek 2010), and 2nd on public safety (IBnGR 2012). Gmina Połaniec (2012) scored the first in Poland as the best place to live. 8. One of the lowest number of foreign tourists in Poland per year. 9. The region is characterized by the one of the lowest numbers of patents per year. 8. Almost 70% of territory is environmentally protected. 9. One of the microcompanies from Kielce is responsible for generating 50% of patents coming from the region. Source: World Bank

7 Swietokrzyskie s progress on Research and Innovation Strategy Regional Innovation Strategy Currently we are updating our strategy and have elaborated a draft of Research and Innovation Strategy (RIS3) RIS3 is to be adopted in June 2013

8 Structure of strategic directions draft RIS3 Source: World Bank on the basis of Swietokrzyskie Research and Innovation Strategy draft

9 Main competitive advantages: Traditional economic sectors Rich resources for the mineral industry Agriculture / tourism - eco-food and unpolluted area High level of life quality at the relatively low cost Key challenges: Attracting and keeping skilled human capital (declining population) Creating favorable conditions for innovation-oriented enterprises Establishing sustainable bonds between R&D and private sector Innovation supply dominates innovation demand Main opportunities: EU funds effective usage of available external funds

10 Key analyses relevant for Regional Development Strategy and Regional Innovation Strategy No. Title Year of publication 1 Foresight report on key sectors in the region May Foresight identifying key technologies in the region January Evaluation report on RIS April Smart specializations for the region December Report on the analysis of regional economy as a background for RIS diagnosis August Perspectives and conditions for the development of technology parks in the region Priorities of innovative development for the purpose of RIS3 Competences of business support institutions in the context of creating the regional innovation system September 2011 October Update of the Regional Development Strategy (RDS) until 2020 diagnostic synthesis of the region March Socio-economic diagnosis annex to draft RDS based on RDS Update November 2012

11 Schematic picture of strategic documents influencing region s RIS3 Source: World Bank Violet color with dashed line indicates documents, which are still in the process of elaboration (as of January 2013).

12 Assessing region s smart specializations vs. other Polish regions Eastern Poland Podlaskie Warm-Maz Lubelskie Draft RIS3 1. Food processing 2. Rubber industry 3. Plastic industry 4. Wood processing and furniture production 5. Industrial machinery 6. Tobacco industry 7. Aviation industry Source: World Bank Expert version: 1. Pharmaceuticals 2. Yachts 3. Women underwear 4. Lawn mowers, farming trailers 5. Electronic vice and milling machines Potential smarts: 1. Tourism 2. ICT 3. Furniture industry 4. Food Industry Slaskie 1. Medical technologies 2. ICT 3. Power industry and mining Environmental protection 4. Material production and processing 5. Transport/infrastruct. 6. Machinery industry 7. Nanotechnology and nanomaterials (in preparation) general areas: 1. Innovative clusters 2. Innovative SMEs 3. LLL in research and innovation area 4. Regional research infrastructure and centres of competences 5. Cultural sector 6. Digital agenda 7. Public procurement, 8. European innovation partnerships 1. Energy efficiency 2. Conferences and fairs 3. Health and spa tourism 4. Metal/foundry industry 5. Utility/industrial design 6. Knowledge transfer

13 Entrepreneurial dynamics in Swietokrzyskie: Dominant sectors include: construction sector (both services and production of construction materials, with a strong emphasis on mining), metallurgy and machinery industry (foundry and metal processing, e.g. steelworks), and agricultural sector (food production) clusters (informal, not too strong yet, but slowly developing), Few successful, large companies, but most of them listed on the stock exchange some of them have own R&D units, Very few institutions supporting academic entrepreneurship but a large number of students (46.5 thousand) developing a project on writing master s theses dedicated for / ordered by firms.

14 Involvement of entrepreneurial actors: The research and academic community is more active than the business community, Limited participation of entrepreneurs, businesses - including SMEs, Greater engagement of the business support institutions Mentality: lack of mutual trust, which results in limited capability of creating and developing clusters, Research and academic community lacking strong connections to the private sector and lagging behind the market development).

15 Governance Matrix of innovation system stakeholders in Swietokrzyskie Source: World Bank

16 Process of selecting smart specialisations In Swietokrzyskie three methods of selecting smart specializations have been combined: a) analysis of science and technology; b) looking for economic clusters; c) foresight. The selection is entirely based on the existing sectors. There is no consensus in the region as to the choice of specializations the outcomes are questioned by some stakeholders. In the process of specialization selection, the demand side (SMEs, large enterprises, start-ups, etc.) has been taken into account but to a small extent.

17 Selected smart specializations and key rationale for selecting the mix Source: World Bank

18 Implementation, budget, measuring the progress: Monitoring and evaluation system in the process of elaboration. Budget strongly depends on the EU-funded regional operational program (ROP ), which currently is at the initial stage of preparation and heavily depends on the Partnership Agreement and a territorial contract (both currently negotiated). An implementation plan is envisaged to accompany the strategy

19 Swietokrzyskie self-assessment Driving economic change through smart specialisation/ris3 Informal assessment XXX S Source: EURADA

20 Proposed next steps: sequence and timing

21 Our main expectations from Smart Specialisation: Change in the regional economy contributing to increase in the level of gross value added, Building an effective system of supporting business in the region, Enhancing cooperation between R&D and the private sector, Opening to the world and cooperation. Issues of interest to discuss: How should the stakeholder participation process be structured, guided, managed? How could we build regional consensus regarding RIS3 amongst the business community, citizens and overall society (quadruple helix)? How could RIS3 process consider innovation in the meaning of broader context non-technological innovations or social innovations? How can we facilitate that?

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