Monitoring and assessment tools 24 April 2014

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1 Monitoring and assessment tools 24 April 2014

2 Agenda Section Page 1 The PACA Region in a nutshell 1 2 The Regional Innovation Observatory : the origins 4 The Regional Innovation Observatory : how does it work, what is it for 5 Smart specialisation strategy and monitoring & evaluation 6 The Observatory and the evolution of monitoring & evaluation practices PwC Slide 2

3 The Provence-Alpes-Côte d Azur Region in a nutshell PwC Slide 3

4 The PACA Region in a nutshell 3rd region in FR for inhabitants and 17th in Europe 3rd region in FR and 15th in Europe for GDP 82% the services weight in the regional economy 97,6% of companies are SMEs A good placement on new emerging markets An attractive Region «Innovation follower» according to the European Regional Innovation Scoreboard A very rich and fragmented innovation support service providers system Slide 4

5 The Regional Innovation Observatory The origins PwC Slide 5

6 1 The PACA Evaluation and Monitoring system the origins Background : First steps towards the set up of the regional Evaluation & Monitoring System in PACA were taken during the work that led to the first PACA Regional Innovation Strategy in 2009: all relevant, reliable and available indicators were collected and analysed and a number of focused studies were performed the outcome was the first fact-driven, robust diagnosis of the status of innovation performances in the region, that built the foundations for the 2009 RIS. Mission : Collect, organise and analyse data (quantitative and qualitative) to support innovation policy decision-making and the Regional Innovation Strategy implementation Clients : Decision-makers Innovation service support providers : PACA Innovation network Companies and SMEs in particular The success of this mission led to the creation of the Regional Innovation Observatory The PACAObservatory Slide 6

7 1 Some examples on how the M&E contributed to RIS Main 2009 RIS achievements : The setting up of the PACAInvestissement fund to support SMEs early stages development and of the JEREMIE European Investment fund. The professionalization of the PACA innovation network by the creation of the PACA Innovation Academia and a first organisation of the PACA Innovation network to better respond to SMEs needs The follow-up of the PACA labs programme on user-driven innovation The launch of the DAS initiative to identify the main regional innovation areas with the support of PwC. The creation of the Regional Innovation Observatory itself The PACAObservatory Slide 7

8 Key success factors Decision makers involvement & commitment No monitoring and evaluation without empowerment from decision makers Evaluation can be touchy, specially when it concerns the innovation support providers Monitoring & evaluation practices involve costs that have to be covered (but a public/ private model of funding could be also possible) Added value results A step by step approach showing results and moving forward but a long terms perspective An offer that matches the client need : an observatory is still a services providers The analysis can be complex but results have to be presented in a «user-friendly» mode ICT tools can help! Slide 8

9 The Regional Innovation Observatory How does it work, what is it for PwC Slide 9

10 The Observatory «service supply» 4 majors «pillars» that contributes to the Observatory mission SMEs barometer Index Regional Innovation Observatory Innovation Scoreboard Studies Slide 10

11 Impact on the decision making process : definition of priorities All the works realised by the observatory (Index, Barometer and one-shot studies ) provide grounds to support the decision making process. In particular, the observatory contributed to : 1.The definition of the RIS3 priorities, the DAS (Strategic Activities Domains), in a twostep approach : A survey conducted in 2009 by Technopolis to identify the regional cross-sectorial competences in research and firms identification of 5 Strategic Specialisation Areas : In 2012, PwC took over the analysis with the aim of defining large private-public economic development programs accelerating innovation outputs access to market (still under development with definition of their governance and based on it of the monitoring process) 2.The objectives definition for the innovation service system evolution in order to support SMEs growth Targeting high growth companies Re-design the services offer Slide 11

12 The Regional Innovation Index Updated every 2 years provides a snapshot of the regional innovation situation, and its evolution over time, based on quantitative and qualitative data : 1. Demographic and macroeconomic data 2. Enterprises innovation profile 3. Regional Innovation ecosystem (innovation services impact, ) 4. Human Capital and Education 5. Investments in R&D 6. Patents 7. International Slide 12

13 The regional innovation SMEs barometer : National GP (DATAR) The barometer provides a picture of the profile and needs of the regional innovating SMEs, The objective : segment the innovation support providers clients to design the best innovation support offer for each segment. It also helps to identify high potential SME and serve the 3S objectives (SME scaling-up) : 5000 SME Data base Diagnosis tool Profiling Segmenting Partnership with PACA Innovation Design the service offer Monitoring Customer satisfaction follow-up Targeting companies Understand their needs Slide 14

14 The regional innovation SMEs barometer : National GP (DATAR) Methodology : Survey conducted in 2009, 2011, and 2013 Methodology: on line administration combined with phone calls Survey sample : regional innovate companies clients from regional innovation intermediaries + companies which are not clients but can be considered as innovative based on several criteria (R&D expenditure, patent activity, turnover growth) Size of the sample : in answers for 4781 contacts (16%) Sample retained for the analysis : 533 questionnaires 5 dimensions investigated : Profil & origin Market Company development Innovation activities Segmentation Regional innovation SME segmentation Innovation support Slide 15

15 The barometer 2013 : companies profiles Established SME (23%) Struggling VSE(25%) High potential microenteprises (18%) SME positioned on traditional sector (17%) VSM in full expansion (17%) 1. VSE in full expansion : innovating, young, high growing, focus on HR and strong links with university research 2. High potentiel micro-entreprises : innovating, high growing, young and fast growing, their key success factor is the entrepreneur profile 3. Established SME : often services companies, established, less innovating but with a steady growth 4. Struggling VSE : not investing on innovation, facing major difficulties in keeping their market share 5. SME positioned on traditional sectors, stable, innovating, often large companies subcontractors Slide 16

16 The barometer : the service supply side SERVICE SUPPLY DESIGN Regional Innova on Strategy and PACA Innova on network Understand needs : observe Conceive, prototype and test the offer Organise the offer produc on Oroganise the service deivery on the territory Offer quality Observe the needs Test idea/ prototype Client test Needs test Mesure sa sfac on Qualita ve Qualita ve Qualita ve Qualita ve Qualita f Quan ta ve Quan ta ve Quan ta ve Quan ta ve Quan ta f Slide 17

17 Basic requirements for an Observatory Financial and Human Resources for carrying out surveys and build a data collection system Information sources available : Regional statistical data (Eurostat, national statistic bureaus ) Quantitative et qualitative data on companies (through surveys, balancesheet based data) Stakeholders' data Intermediaries' data Design the monitoring and evaluation system at the beginning of strategy making process From the RIS to the specific programs : setting indicators at programme, project and intermediaries levels, and building a robust data collection system Slide 18

18 Smart Specialisation Strategy and Monitoring & Evaluation A close relationship PwC Slide 19

19 3S : Context of the definition of RIS in 2013 A mid-term external evaluation performed in preparation of the 3S indicated that PACA had moved major steps in the definition of a RIS 3 approach and suggested the following improvement axes : 3 1 Follow-up the prioritisation process introduced by the DAS policy 2 Better take into consideration the existing links between innovation and internationalisation Pursue the construction of a robust and continuous monitoring and evaluation system Slide 20

20 1. Context of definition of RIS3 in the region The 3S, two main objectives : 1 2 Create added value and new jobs focusing the public intervention on DAS Support SMEs growth creating a services offer tailored on their needs and a innovation strengthened ecosystem. Governance and monitoring

21 2. Strategic objective N 1 : Create added value and new jobs focusing the public intervention on DAS a. SWOT analysis of the (macro)regional context S - Scientific excellence in the specific DAS niches - A number of dynamic start-ups on new emerging markets - Critical Mass in terms of companies, scientific competences, talents, clusters - A good attractiveness for inwards investments - A complete set of financial tools - Unspecialised economy (29 PRIDES,...) - Innovation support tools too focused on R&D and not enough on downstream stages of innovation - A week weight of industry in the regional economy (less that 10%) and few big leaders - A complex institutional context - A still weak multidisciplinary approach W O - R&D potential to be exploited - Three times more of start- ups than in France - Strong ICT sector that could underpin service and social innovation - A first set of user-driven tools and instruments to support innovation -Creation of the BPI - Strong international competition - Lack of public resources - Capacity to pursue the entrepreneurial discovery process over time - Too many intermediaries T

22 2. Strategic objective N 2 : Support SMEs growth S a. SWOT analysis of the (macro) regional context - Second French region for new business creation - Very good positioning in Europe on emerging industries. - A good resistance to crises - One of the most attractive region in France for talents - Positive cluster dynamics - A rich offer of innovation support services - Strong relationship between companies and research - Strategic position in the Mediterranean Sea - Over-representation of SMEs VSEs - A large number of profit and non profit traditional services companies - Still low export rate - Poor new business survival rate after 3 years - Poor private investments in innovation - High concentration of financial support in R&D phases at the expense of downstream phases - Infrastructures : Broad band, transports, W O - A high business density which may foster the regional economy transition towards the markets of the future and the creation of the mid-caps companies - Regional Mid-cap companies are catching up with the national average (employees, and turnover) - A quite complete range of financial instruments available - The creation of the regional innovation and internationalisation Agency - A fragmented innovation support services offers - A cultural reluctance to open SMEs companies capital to third parties capital - An increasing global competition - Lack of competences in emerging markets (high specialized and technical expertise) - Capacity to bring research and innovation to market T

23 2. Overview of the main objectives of the strategy 1 Create added value and new jobs focusing the public intervention on DAS Which are the regional Strategic Specialisation Areas - DAS? Energy transition - Energy efficiency Health Agrofood Risk-Safety-Security Sustainable and smart mobility Tourism et creative industries How were DAS identified? A process started in 2009 and corroborated by : Critical mass : companies, talents, research programmes, clusters, infrastructures, Soft resources : education organisation, Human Sciences labs, Social and environmental challenges presents in the region The involvement of key regional companies and innovation actors

24 2. Overview of the main objectives of the strategy 1 Create added value and new jobs focusing the public intervention on DAS Scanning all the regional R&D projects to identify the potential metaprojects Meta projects 1 or 2 for DAS Innovation programme positioned on a «market of the future» on which PACA has a competitive advantage in terms of : - R&D projects - Critical mass (SMEs and large companies) -Market leaders Action 3 Identified emerging markets analysis and strategic positioning choice (critical mass, actors, investor, benchmark, impact) Which Business model for a global market place Support export and attractiveness setting up demonstrators 1 - Choose thee public and private tools to support the policy 2 - Network key actors (public and private) How to industrialise the R&D solutions to create new jobs? How to attract talents (training and education, ) 3 - Design the implementation of the project (cartography, recruitment, project management, )

25 2. Overview of the main objectives of the strategy 1 Create added value and new jobs focusing the public intervention on DAS Focus on specialisation areas expected to bring the highest value in a 5year-time period Underpin Start-ups and SMEs growth and specifically of those positioned on emerging markets Support the reindustrialisation of the regional economy Enhance the region attractiveness Develop international cooperation at national and international level Develop an open innovation ecosystem (cross sectorial cooperation, private public partnerships, ) Support a experience-driven approaches and innovation windows Promote a social and environment driven innovation Ensure a continuous entrepreneurial discovery process involving all the regional key actors

26 The Observatory and the evolution of monitoring & evaluation practices PwC Slide 27

27 3S and the observatory evolution Perspective Monitoring 3S Implementation Evaluation Monitoring - Creation of a CRM in order to track SMEs needs and evolution over time - 3S scoreboard - Projects implementation - Evaluation - impact assessment (through counterfactual analysis) - Intermediaries performance evaluation - Perspective - New trends and benchmark - New tools and ICT Slide 28

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