Developing a local innovation system: the challenge of Trentino
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1 Developing a local innovation system: the challenge of Trentino Alessandra Proto OECD LEED Trento Centre for Local Development Trento, 28 March
2 THE TRENTINO PROVINCE inhabitants in 223 municipalities small area: 2%of national territory (8.2%) immigrants from 60 countries (2009) (2, % 1992) 70% of lands above 600 metres 65% forest the primary sector represents 3% of the GDP of Trentino Province, the industry sector 25% and services 72%.
3 TRENTINO TODAY 3
4 TRENTINO FACTS & FIGURES Trentino Italy EU 27 GDP per Capita (2009) Unemployment (2010) 4.3% 8.50% 9.90% Schooling rate (15-19) 93.30% (in 1980: 55.8%) 90.60% 75.70% People at risk of Poverty ( forecast) 11.1% 24.7% 23.1% Size of business (average # of employees ) Source: Elaboration of Eurostat, Istat, Bank of Italy data 4
5 Before 1918 After
6 : Trentino experienced a devastating hemorrhage of population (1/2 of the population emigrated) 6
7 1946: THE AUTONOMY 1946: at the end of WW2, a peace treaty between Italy and Austria is signed. The Province of Trento and the Province of Bolzano achieved the status of autonomous provinces: legislative power; administrative autonomy; financial autonomy (92% of taxes on individual and business incomes collected in Trentino is given back by the Central State to the Province. This resources are utilised according to autonomous institutional competencies and local needs. INSTITUTIONAL INNOVATION 7
8 THE FIRST INDUSTRIALISATION PHASE Trentino started from scratch with little industrial tradition (delay with respect to the rest of Italy) Main objective: create employment: (reducing emigration) No selection of sectors Attraction of foreign investors (Michelin, ecc) Big infrastructures 8
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13 OECD PISA 2006 High perfomance Low Equity High perfomance High Equity Low perfomance Low Equity Low perfomance High Equity 13
14 R&D AND INNOVATION Trentino Italy EU 27 Per capita public investment in R&D (2009) Business Demography (2008) -0.2% +0.9% +2% Patents (million of inhabitants) 50,6 83,
15 Business Demography Lithuania Bulgaria UK Portugal Slovakia Estonia Denmark Latvia Luxembourg Slovenia France Spain Czech Rep. Germany Hungary ITALY Austria Sweden Belgium TRENTO Ciprus 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Birth rate Death rate 15
16 Patents (million of inhabitants) 16
17 The triple helix model SMEs and partnership for innovation The Triple Helix Model of Innovation, Henry Etzkowitz
18 NEW PLAYERS AND COLLABORATIONS Source: OECD (2010), Measuring Innovation: A New Perspective, Paris Source: OECD (2010), Measuring Innovation: A New Perspective, Paris. SIZE OF BUBBLE = Number of scientific publications SIZE OF BUBBLE = Number of scientific publications THICKNESS OF LINK = Number of co-authorship THICKNESS OF LINK = Number of co-authorship
19 ...BUT INNOVATION IS NOT FLAT. Patents per million inhabitants, Europe, average Source: OECD (2010), Measuring Innovation: A New Perspective, OECD, Paris based on OECD REGPAT Database and OECD, Regional Database.
20 intangibles INVESTING IN INNOVATION = INVESTING Investment in IN fixed A BROAD and intangible RANGE assets OF as a COMPLEMENTARY share of GDP, 2006 ASSETS Investing in innovation goes beyond R&D. Investment in intangible assets is rising and taking over investment in physical capital (machinery and equipment). Source: OECD (2010), Measuring Innovation: A New Perspective, OECD, Paris, based on COINVEST and research papers, 2009.
21 R&D IS CRITICAL TO INNOVATION... % Gross domestic expenditure on R&D, As a percentage of GDP Japan China OECD EU27 United States Source: OECD (2009), Main Science and Technology Indicators 2009/2, December.
22 BUT INNOVATION IS MORE THAN R&D Austria Czech Republic Iceland ( ) Luxembourg Ireland Sweden Netherlands Estonia Chile Canada ( , manufacturing) Norway Belgium Mexico ( ) Denmark Italy Japan ( ) South Africa ( ) Spain Australia ( ) Portugal United Kingdom Korea ( , manufacturing) New-to-market product innovators, As a percentage of innovative firms by R&D status % Innovative firms without R&D Innovative firms with in-house R&D 0 NEW INDICATORS reveal that in Australia and Norway the propensity to introduce a new product is similar whether or not the firm performs R&D. Source: OECD (2010), Measuring Innovation: A New Perspective, OECD, Paris based on OECD, Innovation microdata project.
23 LESSONS LEARNED Innovation Now more than ever! Innovation process is a non-linear output and outcome process Innovation is broader than R&D it is a system. Policies for innovation, not a narrow set of innovation policies; Innovation policy is more than budget allocations. A region s economic trajectory is shaped not only by local institutions but also by the range of technological and market opportunities available at global level 23
24 Thank you! 24
41 T Korea, Rep. 52.3. 42 T Netherlands 51.4. 43 T Japan 51.1. 44 E Bulgaria 51.1. 45 T Argentina 50.8. 46 T Czech Republic 50.4. 47 T Greece 50.
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