Katja Reppel Deputy Head of Unit CC Smart and Sustainable Growth DG Regional and Urban Policy

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1 OpenDays 13B09 - Bio-based products for growth and jobs in the EU: the crucial role of regions in boosting the bio-economy and the circular economy Smart Specialisation and Bio-economy: Next steps for national and regional innovation stakeholders and ESIF managing authorities Katja Reppel Deputy Head of Unit CC Smart and Sustainable Growth DG and Urban

2 Structure Smart Specialisation & ESIF programming: State of play Synergies between ESIF & Horizon 2020 for growth and jobs in the bio-economy Next steps 2

3 New Cohesion From 'absorption' logic to 'investment' policy for growth and jobs Greater focus on results Targeting resources at key growth sectors Pre-conditions for funding ex ante conditionalities Reinforced partnership Increased synergies between Funds and with other EU instruments Stronger link to the EU economic governance "European semester" Smart Specialisation = Key feature of reformed Cohesion to ensure effectiveness of ERDF investments in innovation

4 Design Principles for Smart Specialisation Strategies (RIS 3) 1.ANALYSIS: evidence of the socio-economic and innovation engines of regional growth, competitive advantages & weaknesses 2.STAKEHOLDER INVOLVEMENT: inclusive, interactive and on-going process of entrepreneurial discovery to sound out potential for critical mass for joint efforts towards economic transformation 3.MAKE CHOICES: identify a limited set of priorities for development where to concentrate investment: focus on new knowledge for existing industries, diversification, emerging industries, 'embeddedness' and 'relatedness', on boundary-spanning and crossclustering, creating new value chains, transformation of local economies 4.BROAD VIEW OF INNOVATION: support technological as well as practice-based and social innovation, demand side innovation tools etc. 5.MONITORING AND EVALUATION: feeding back information into the policy cycle and allowing strategy adjustment to sharpen priorities RIS3 Guide Video: The Kingdom of Smart

5 Thematic breakdown of ESIF Around 100 billion for innovation in the wide sense Purchasing power for innovative bioeconomy solutions? In billion EUR Source: Final ESIF partnership agreements as of December 2014

6 ,2E+10 1E+10 Thematic breakdown of ESIF TOTAL AMOUNT ( ) TO1: Research and innovation 8E+09 6E+09 4E+09 2E+09 0 How: almost 200 "Smart Specialisation Strategies" define framework What: focus on SME innovation capacities and activities, including incubation, voucher schemes, process, design and service innovation, university-enterprise cooperation, clusters and networking, public and private R&I infrastructures and equipment, support services, technology transfer development of innovations for addressing societal challenges such as energy, 6 environment and the aging society See:

7 Business manufacturing and services, primary sectors, financial sector, creative industries, social sector, large firms, SMEs, young entrepreneurs, students with business ideas, cluster and business organisations, etc. Different departments, if relevant at different government levels, agencies e.g. for regional development, business advice, public procurement offices, incubators, etc. Public administration Research public and private research bodies, universities, science and technology parks, NCPs, Technology transfer offices, Horizon2020 committee members, regional ESFRI roadmaps etc. Entrepreneurial in composition and spirit: (risk-taking, broader view beyond boundaries ) NGOs and citizens initiatives related to societal challenges for which innovative solutions would be helpful, consumers associations, Talents! etc. Civil society / Users RIS 3 design: Entrepreneurial Discovery Process Reiterative process Creative thinking / combination External view needed See Common Provisions Regulation for all ESI Funds, No. 1303/2013) annex 1, point See also annex III of RIS3 Guide:

8 RIS3 give insights in national & regional R&I priorities and strenghts database for RIS3 priorities Enable Regions and Member States to position themselves to find their unique niches to seek out potential partners for collaboration Approx. 31 countries and 196 regions and 1350 priorities

9 database: 101 results for 'Agriculture, forestry & fishing'

10 database: 101 results for 'Agriculture, forestry & fishing' Wide variety of specific RIS3 priorities, cross-sectoral and cross-technology sub-areas:

11 Agro-Food sub-areas in RIS 3 (EU28) Table : Agro- and Food related sub-areas of specialisation (EU28) AF1 Agro- and food related technologies (incl. KETs, chemistry, energy, biofuels, 60 engineering, health and life sciences, bio-medicine, pharmacy and generic engineering) AF2 Agro-food and Tourism 54 AF3 Food and food products with higher added-value (organic food, healthy food, quality of life) 36 AF4 Water for environment and agriculture (including aquaculture, fisheries and maritime) 32 AF5 Food production, manufacturing and distribution 20 AF6 Environmentally-friendly production of agro-food 18 AF8 Food safety and security 11 AF9 Application of ICT in the field of agriculture 4 AF10 Research and Education in Food/Agriculture 2 AF11 Transport and logistics 2 AF12 (Non-specified) Agriculture as an industry 41 AF13 (Non-specified) food products 17 count, n Total 271

12 Sub-area: higher added-value food Topic Description Other regions and countries AF3: Food and food products with higher added-value (organic food, healthy food, quality of life) ). Priorities such as organic food and farming, food with higher added value and food products constitute the 3 rd most sub-area of RIS3 priorities (linked to Agro-Food The keywords most frequently used by regions to describe this sub-area are: health, healthy (organic) food, nutrition, and life sciences. In some cases, related specialisation areas are well described and it is clear that the region is focusing on high quality food products, healthy food and organic food to improve quality of people's life. In other cases the description of specialisation is weaker, e.g. "food" or "food stuff". From the data in Eye@RIS3 under the categories of EU priorities of target market, it is clear that there is a close link with human health and security, and thus we can assume that countries and regions want to focus on food products with higher added-value. regions: Andalusia, Brandenburg, Bremen, Comunidad Valenciana, Etelä-Savo, Friesland (NL), Friuli-Venezia Giulia, Hallands län, Hamburg, Hessen, Ipeiros, Languedoc-Roussillon, Mecklenburg-Vorpommern, Midi-Pyrénées, Midtjylland, Nordjylland, Örebro län, Piemonte, Podlaskie Pohjois-Savo, Provence-Alpes-Côte d'azur, Sjælland, Västernorrlands land Member States: Denmark, Germany, Ireland, Portugal, Hungary, Poland, Slovenia

13 Structure Smart Specialisation & ESIF programming: State of play Synergies between ESIF & Horizon 2020 for growth and jobs in the bio-economy Next steps 13

14 Main challenges to make Smart Specialisation work: Ensuring continuity of strategies RIS 3 is conceived as an on-going (and reiterative) Entrepreneurial Discovery Process Avoid being captured by vested interests: different / fresh stakeholders Monitoring and adjustments Implementation tools & capacities Appropriate & complementary support tools Selection criteria (and procedures) for ESIF OPs Administrative capacities to design such tools and manage them effectively and efficiently International opening and cooperation Generate critical mass via combining forces Complementin g capacities and linking related regions Synergies with Horizon 2020: from "acquisition of funding" aim to eco-system approach 14

15 15 Role of transnational cooperation in RIS 3 Bring together regions with related RIS3 strategies ('strategic partnering') Use smart specialisation as coordination principle to build more critical mass and more scale in key areas Undertake joint entrepreneurial discovery processes to map related opportunities based on concrete value chains Foster inter-cluster cooperation to learn, connect, demonstrate and commercialise, upscaling dispersed regional efforts

16 Do not re-invent the wheel Link in & draw on existing initiatives, e.g.: Commission s bio-economy strategy & action plan Lead Market Initiative ( ): demand-side innovation policy tools for "Taking Bio-based from Promise to Market" Europe 2020 flagship: resource-efficient Europe EIP for Agricultural Productivity and Sustainability and its focus groups & EIP on Raw Materials JTI: Bio-based Industries (BBI) with 3.7 billion budget and emerging value chains 16

17 Do not re-invent the wheel Link in & draw on emerging initiatives, e.g.: Circular economy strategy package (end 2015) EIT-Knowledge & Innovation Community: Food4Future - Sustainable Supply Chain from Resources to Consumers (to be established in 2016) Vanguard Initiative: Interregional cooperation on innovative use of non-food Biomass (leading regions: Randstad region (NL) + Lombardy (IT) 17

18 18 Next Steps for ESIF & RIS 3 implementation Seek strategic partners e.g. via S3Platform events & Eye@RIS3 database, macro-regional strategies (Baltic Sea, Danube ) Coordination & complementarity ERDF European Agricultural Fund for Rural Development (RDNs, etc.: ) and European Maritime and Fisheries Fund Sharpen RIS3 priorities in cooperation and comparison with external innovation actors Define "selection criteria" for calls (form of support, type of beneficiaries, funding conditions, timing, exclusion & award criteria and ponderation, etc.) in view of intercluster cooperation and emerging value-chains

19 Questions and Answers 19

20 For more information: Cohesion : Research & innovation in Cohesion : h-innovation/ Smart Specialisation Strategies

21 Thematic guides Relevant for design of policy mix and implementation tools Available in PDF format here: RIS3 guide Universities & regional development Service innovation Creative industries Social innovation How to convert research into commercial success Science and Technology Parks Public procurement of innovation Synergies between ESIF, Horizon2020 and other EU programmes SME innovation Incubators Entrepreneurial mind-set SME internationalisation Digital growth Bio-economy related guides Connecting Smart and Sustainable Growth through Smart Specialisation Guide to Multi-Benefit Cohesion Investments in Nature and Green Infrastructure Driving energy efficient innovation through procurement Green Public Procurement: 21

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