Presentation given in A

1. The Challenge and the Opportunity of Smart
Specialisation (RIS³) for Europe’s regions:
a place based agenda for economic
transformation rooted on research and
innovation
Dr Dimitri CORPAKIS
Head of Unit, Regional Dimension of Innovation
DG Research and Innovation
European Commission
Helsinki, 22/4/13

2. 2
Innovation
performance
(2012)
R&D expenditure in
the business sector
as % of GDP
(2011)

3. PolicyPolicyResearch and
Innovation
Research and
Innovation

5. Investment in R&D is part of the solution
to exit from the economic crisis

6. PolicyPolicyResearch and
Innovation
Research and
Innovation
The need for a new policy approachThe need for a new policy approach
for regional developmentfor regional development
 The knowledge economy is here – with a priceThe knowledge economy is here – with a price
 Globalisation has pushed the boundaries and has changedGlobalisation has pushed the boundaries and has changed
traditional ways for dealing with regional developmenttraditional ways for dealing with regional development
 Global value chains have redrawn the map of conceivingGlobal value chains have redrawn the map of conceiving
and producing products and servicesand producing products and services
 Countries / regions that are not able to adapt will see theirCountries / regions that are not able to adapt will see their
economies being marginalisedeconomies being marginalised
 Global positioning necessary – need for a thorough systemGlobal positioning necessary – need for a thorough system
of SWOT analysisof SWOT analysis
 Need for a new growth proposition based on knowledgeNeed for a new growth proposition based on knowledge
assetsassets

7. PolicyPolicyResearch and
Innovation
Research and
Innovation
The Promise ofThe Promise of
SmartSmart
SpecialisationSpecialisation

8. D.Foray, P.A. David and B.Hall : Smart
Specialisation: the Concept
Knowledge for
Growth expert
group for the EC

9. PolicyPolicyResearch and
Innovation
Research and
Innovation
A simple idea (KfG brief no 9, 2009)A simple idea (KfG brief no 9, 2009)
 “It should be understood at the outset that the idea of smart
specialisation does not call for imposing specialisation through some
form of top-down industrial policy that is directed in accord with a
pre-conceived “grand plan”. Nor should the search for smart
specialisation involve a foresight exercise, ordered from a consulting
firm.
 We are suggesting an entrepreneurial process of discovery that
can reveal what a country or region does best in terms of
science and technology. That is, we are suggesting a learning
process to discover the research and innovation domains in which a
region can hope to excel. In this learning process, entrepreneurial
actors are likely to play leading roles in discovering promising areas of
future specialisation, not least because the needed adaptations to
local skills, materials, environmental conditions, and market access
conditions are unlikely to be able to draw on codified, publicly shared
knowledge, and instead will entail gathering localized information and
the formation of social capital assets.”

10. 10
Draft Common Provisions Regulations for Cohesion Policy
Thematic Ex Ante Conditionalities
Thematic Objectives Ex Ante Conditionality Ex Ante Criteria for Fulfilment
1. Strengthening research,
Technological development and
innovation (R&D target)
(referred to in Article 9(1) )
1.1. Research and innovation:
The existence of a national or
regional research and innovation
strategy for smart specialisation
in line with the National Reform
Program, to leverage private
research and innovation
expenditure, which complies with
the features of well-performing
national or regional research and
innovation systems.
– A national or regional research
and innovation strategy for smart
specialisation is in place that:
– is based on a SWOT analysis to
concentrate resources on a limited
set of research and innovation
priorities;
– outlines measures to stimulate
private RTD investment;
– contains a monitoring and
review system.
– A Member State has adopted a
framework outlining available
budgetary resources for
research and innovation;
– A Member State has adopted a
multi-annual plan for budgeting
and prioritization of
investments linked to EU
priorities (European Strategy
Forum on Research
Infrastructures / ESFRI)

11. PolicyPolicyResearch and
Innovation
Research and
Innovation
Smart Specialisation is notSmart Specialisation is not
what you usually think it iswhat you usually think it is
• It is not about pure specialisation – since this involvesIt is not about pure specialisation – since this involves
huge risks about potential lock-inshuge risks about potential lock-ins
• It is not about selecting and favouring only a fewIt is not about selecting and favouring only a few
sectors – but this might be an intermediate stagesectors – but this might be an intermediate stage
• It is rather about identifying the newIt is rather about identifying the new
opportunities that often emerge at theopportunities that often emerge at the
intersection of existing sectors and technologies –intersection of existing sectors and technologies –
the target of the "entrepreneurial discoverythe target of the "entrepreneurial discovery
process"process"

12. 12
Smart Specialisation and Regional
Development
• In a regional context this translates to:
- Embeddedness
- Related variety
- Connectivity
• Philip McCann and Raquel Ortega-Argilés:
Smart Specialisation, Regional Growth and
Applications to EU Cohesion Policy
http://
ec.europa.eu/regional_policy/cooperate/regions_for_
Courtesy Philip McCann

13. 13
Smart Specialisation and Regional
Development
• Embededness: can be captured by regional
CGE models, regional Input-Output models,
location quotients, case studies, longevity, social
capital etc.
• Relatedness: It is not about sectoral
specialisation but diversification → specialised
technological diversification
• Embededness + Relatedness =
Relevant Size Domain
Courtesy Philip McCann

14. PolicyPolicyResearch and
Innovation
Research and
Innovation
Key points on Smart SpecialisationKey points on Smart Specialisation::
• Stimulate innovation through entrepreneurship,
modernisation, adaptation
• Dare to introduce innovative governance
solutions
• Think about strategic technological
diversification on areas of relative strength and
potential
• Increase diversification – promote new
linkages, synergies and spillovers
Adapted from Philip McCann (2012)

15. PolicyPolicyResearch and
Innovation
Research and
Innovation
Step 1: Analysis of regional potential for
innovation-driven differentiation
Step 2: RIS 3 design and governance –
ensuring participation & ownership
Step 3: Elaboration of an overall vision for
the future of the region
Step 4: Selection of priorities for RIS3 +
definition of objectives
Step 5: Definition of coherent policy mix,
roadmaps and action plan
Step 6: Integration of monitoring and
evaluation mechanisms
Steps to RIS3Steps to RIS3
(6) Monitoring
(5) Policy mix
(4) Priorities
(3) Vision
(2) Process
(1) Analysis
RIS 3 Strategy

16. PolicyPolicyResearch and
Innovation
Research and
Innovation
Assessment questions for RIS3 strategiesAssessment questions for RIS3 strategies
1. Is the strategy based on an appropriate stakeholder involvement?
How does it support the entrepreneurial discovery process of
testing possible new areas?
2. Is the strategy evidence-based? How have areas of strength and
future activity been identified?
3. Does the strategy set innovation and knowledge-based
development priorities? How have potential areas of future activity
been identified? How does it support the upgrading of existing
activities?
4. Does the strategy identify appropriate actions? How good is the
policy mix?
5. Is the strategy outward looking and how does it promote critical
mass/potential?
6. Does the strategy produce synergies between different policies
and funding sources? How does it align/leverage
EU/national/regional policies to support upgrading in the identified
areas of current and potential future strength?
7. Does the strategy set achievable goals, measure progress? How
does it support a process of policy learning and adaptation?
8. Can the strategy be regarded as a regional research and
innovation strategy for smart specialisation following the guidance
provided by the EU Commission? Which advice can be given to
improve the strategy?

17. RIS3 assessment

18. PolicyPolicyResearch and
Innovation
Research and
Innovation
Horizontal issues and policy delivery instruments for RIS³
 Green Growth: only sustainable is smart – Eco-innovation & Energy efficiency
 Digital agenda: enabling knowledge flows throughout the territory –connected
regions
 Clusters for regional growth: business ecologies that drive innovation
 Innovation-friendly business environments for SMEs: good jobs in internationally
competitive firms
 Social Innovation: new organisational forms to tackle societal challenges
 Stronger focus on financial engineering: not only grants
 Lifelong Learning in research and innovation: support knowledge triangle (KICs)
and university-enterprise cooperation
 Key Enabling Technologies: systemic potential to induce structural change
 Research infrastructure/centres of competence: support to ESFRI and EU wide
diffusion of leading edge R&D results
 Creativity and cultural industries: innovation beyond technology and outside
manufacturing
 Public Procurement for market pull: pre-competitive PP to open new innovation
friendly market niches

19. PolicyPolicyResearch and
Innovation
Research and
Innovation
Example: Bremerhaven (DE)Example: Bremerhaven (DE)
 Economy based onEconomy based on
shipbuilding & commercialshipbuilding & commercial
fishing in strong downturnfishing in strong downturn
end of 1990’send of 1990’s
 Selection of ‘offshore windSelection of ‘offshore wind
energy’ as newenergy’ as new
development: clear &development: clear &
integrated industrialintegrated industrial
strategy and clustering ofstrategy and clustering of
competenciescompetencies
 Strong existing synergiesStrong existing synergies
between ‘shipyard’ &between ‘shipyard’ &
‘offshore wind’ sectors‘offshore wind’ sectors
 Now Bremerhaven = majorNow Bremerhaven = major
hub of offshore wind in DE,hub of offshore wind in DE,
4 major manufactures,4 major manufactures,
already 1,000 jobs createdalready 1,000 jobs created

20. PolicyPolicyResearch and
Innovation
Research and
Innovation
A three-step
entrepreneurial
discovery process
Visioning:
with focus on societal challenges
(transition management / starting
experiments)
in Transition Arenas
Strategy development:
with focus on transformation by
innovation
strategies within innovation hubs)
in Innovation Direction Groups
Action plan:
with focus on investment projects
in consortia driven by frontrunners
(promoted in Round Tables and
Transformation and Innovation
Platforms)
20
Vision
Strategy
Action
Plan
Jan Larosse, 2012
The Flanders
example

21. 2121
EU R&D and InnovationEU R&D and Innovation
PolicyPolicy
future Horizon 2020future Horizon 2020
EU Cohesion PolicyEU Cohesion Policy
DifferencesDifferences
Based largely onBased largely on individual R&D and innovationindividual R&D and innovation
ProjectsProjects of a pre-competitive nature aiming atof a pre-competitive nature aiming at
advancing knowledge and fostering innovation foradvancing knowledge and fostering innovation for
growth and jobs, including but not exclusivelygrowth and jobs, including but not exclusively
frontierfrontier research (also co-funding national andresearch (also co-funding national and
regional programmes)regional programmes)
Based onBased on multiannual Programmesmultiannual Programmes aiming toaiming to
reduce regional disparities, including throughreduce regional disparities, including through close toclose to
the market competitive R&D andthe market competitive R&D and innovationinnovation
effortsefforts
AwardedAwarded directly to final beneficiariesdirectly to final beneficiaries (firms,(firms,
public and private R&D centres and Universities,public and private R&D centres and Universities,
including national and regional governments inincluding national and regional governments in
certain cases – Art. 185, ERA-NET etc.)certain cases – Art. 185, ERA-NET etc.)
AwardedAwarded throughthrough shared management exclusively toshared management exclusively to
national and regionalnational and regional public intermediariespublic intermediaries
Through transnational competitive callsThrough transnational competitive calls
addressed to international groupings through peeraddressed to international groupings through peer
reviewreview based on excellencebased on excellence criteriacriteria
Non competitive attributionNon competitive attribution addressed to regionaladdressed to regional
playersplayers based on strategic planningbased on strategic planning negotiationnegotiation
(however competitive calls possible and rising at(however competitive calls possible and rising at
national or regional level)national or regional level)
Synergies and ComplementaritiesSynergies and Complementarities
Horizon 2020Horizon 2020 will focus on tackling major societalwill focus on tackling major societal
challenges, maximising the competitiveness impactchallenges, maximising the competitiveness impact
ofof research and innovationresearch and innovation (Industrial(Industrial
leadership) and raising and spreading levels ofleadership) and raising and spreading levels of
excellenceexcellence in the research basein the research base
Cohesion policyCohesion policy will focus on galvanisingwill focus on galvanising smartsmart
specialisationspecialisation that will act as athat will act as a capacity buildingcapacity building
instrument, based on learning mechanisms and theinstrument, based on learning mechanisms and the
creation of critical skills in regions and Member States.creation of critical skills in regions and Member States.

22. PolicyPolicyResearch and
Innovation
Research and
Innovation
Research and InnovationResearch and Innovation
Investment proposed prioritiesInvestment proposed priorities
for the ERDFfor the ERDF
Strengthening research, technological developmentStrengthening research, technological development
and innovation:and innovation:
 Enhancing research and innovation infrastructure (R&I) andEnhancing research and innovation infrastructure (R&I) and
capacities to develop R&I excellence and promoting centres ofcapacities to develop R&I excellence and promoting centres of
competence, in particular those of European interestcompetence, in particular those of European interest
 Promoting business R&I investment, product and servicePromoting business R&I investment, product and service
development, technology transfer, social innovation and publicdevelopment, technology transfer, social innovation and public
service application, demand simulation, networking, clusters andservice application, demand simulation, networking, clusters and
open innovation through smart specialisationopen innovation through smart specialisation
 Supporting technological and applied research, pilot lines, earlySupporting technological and applied research, pilot lines, early
product validation actions, advanced manufacturing capabilities andproduct validation actions, advanced manufacturing capabilities and
first production in Key Enabling Technologies and diffusion offirst production in Key Enabling Technologies and diffusion of
general purpose technologiesgeneral purpose technologies

23. PolicyPolicyResearch and
Innovation
Research and
Innovation
Horizon 2020 strategy:
Building on the experience of researchers' mobility actions,
capacity building actions in FP7 like Research Potential and
Regions of knowledge, the Commission will introduce in
Horizon 2020 actions that will focus on two main directions:
• “Structured Mobility", mobility of researchers that will
observe distinct organisational frameworks and will
engage in twofold actions, first on raising excellence in
the institutions involved and second on stimulating
further regional innovation through smart specialisation
strategies in the context of future Cohesion policy.
• The second family of measures will be more policy
oriented and will provide specific support to national
and regional governments on policy design and
implementation as well as an upgraded support service
through improved and scaled-up National Contact Points
that will have also better links and cooperation with the
Managing Authorities of the Structural Funds, across
Europe.

24. PolicyPolicyResearch and
Innovation
Research and
Innovation
Keys to SynergiesKeys to Synergies
Smart SpecialisationSmart Specialisation
ex-ante conditionalityex-ante conditionality
Thematic ConcentrationThematic Concentration
(both under Cohesion policy)(both under Cohesion policy)

25. The Synergies and Smart Specialisation Matrix
STRUCTURAL FUNDS THEMATIC OBJECTIVE NO 1 ONSTRUCTURAL FUNDS THEMATIC OBJECTIVE NO 1 ON
STRENGTHENING RESEARCH, TECHNOLOGICALSTRENGTHENING RESEARCH, TECHNOLOGICAL
DEVELOPMENT AND INNOVATIONDEVELOPMENT AND INNOVATION
HORIZON 2020 TOPHORIZON 2020 TOP
DOWN RESEARCHDOWN RESEARCH
AND INNOVATIONAND INNOVATION
PRIORITIESPRIORITIES
INFLUENCINGINFLUENCING
NATIONAL ANDNATIONAL AND
REGIONALREGIONAL
PRIORITIESPRIORITIES
THEMATIC CONCENTRATION FORTHEMATIC CONCENTRATION FOR
MOST ADVANCED ANDMOST ADVANCED AND
TRANSITION REGIONS FORTRANSITION REGIONS FOR
ALLOCATING 80% OF THE ERDFALLOCATING 80% OF THE ERDF
MONEY FOR 4 OBJECTIVES: R&I,MONEY FOR 4 OBJECTIVES: R&I,
ICT, SME COMPETITIVENESS ANDICT, SME COMPETITIVENESS AND
LOW CARBON ECONOMYLOW CARBON ECONOMY
THEMATIC CONCENTRATION FORTHEMATIC CONCENTRATION FOR
LESS ADVANCED REGIONS FORLESS ADVANCED REGIONS FOR
ALLOCATING 50% OF THE ERDFALLOCATING 50% OF THE ERDF
MONEY FOR 4 OBJECTIVES: R&I,MONEY FOR 4 OBJECTIVES: R&I,
ICT, SME COMPETITIVENESS ANDICT, SME COMPETITIVENESS AND
LOW CARBON ECONOMYLOW CARBON ECONOMY
EXCELLENCEEXCELLENCE SMART SPECIALISATION EX-ANTE CONDITIONALITYSMART SPECIALISATION EX-ANTE CONDITIONALITY
based on a SWOT analysis to concentrate resources on abased on a SWOT analysis to concentrate resources on a
limited set of research and innovation priorities inlimited set of research and innovation priorities in
compliance with the NRP; measures to stimulate private RTDcompliance with the NRP; measures to stimulate private RTD
investment; a monitoring and review system; a frameworkinvestment; a monitoring and review system; a framework
outlining available budgetary resources for research andoutlining available budgetary resources for research and
innovation; a multi-annual plan for budgeting andinnovation; a multi-annual plan for budgeting and
prioritisation of investments linked to EU researchprioritisation of investments linked to EU research
infrastructure priorities (European Strategy Forum oninfrastructure priorities (European Strategy Forum on
Research Infrastructures -ESFRI)Research Infrastructures -ESFRI)
INDUSTRIALINDUSTRIAL
LEADERSHIPLEADERSHIP
SOCIETALSOCIETAL
CHALLENGESCHALLENGES

26. PolicyPolicyResearch and
Innovation
Research and
Innovation
Possible implications for H2020
 Possible impact on Horizon 2020 future Work ProgrammesPossible impact on Horizon 2020 future Work Programmes
in all Priorities (especially Industrial Leadership andin all Priorities (especially Industrial Leadership and
Societal Challenges)Societal Challenges)
 Feedback from National and Regional Research andFeedback from National and Regional Research and
Innovation Strategies for Smart Specialisation couldInnovation Strategies for Smart Specialisation could
influence areas for future Topics and vice versainfluence areas for future Topics and vice versa
 Involvement of flagship Horizon 2020 projects andInvolvement of flagship Horizon 2020 projects and
stakeholders in RIS3 should not be excluded although ofstakeholders in RIS3 should not be excluded although of
course not compulsory and largely unpredictable. But thiscourse not compulsory and largely unpredictable. But this
depends also on policies by MS and regions involved (activedepends also on policies by MS and regions involved (active
involvement policies maybe supported by the Structuralinvolvement policies maybe supported by the Structural
Funds)Funds)
 RTDI projects can be simultaneously or consecutivelyRTDI projects can be simultaneously or consecutively
supported by H2020 and the ESI Fundssupported by H2020 and the ESI Funds

27. PolicyPolicyResearch and
Innovation
Research and
Innovation
Next steps in planning forNext steps in planning for
Member States / regionsMember States / regions
 Perform a serious analysis of national, regional and localPerform a serious analysis of national, regional and local
characteristicscharacteristics
 Position the Member State / Region in its particularPosition the Member State / Region in its particular
international context and see what this implies for its futureinternational context and see what this implies for its future
priorities (consider re-positioning)priorities (consider re-positioning)
 Lay out a strategy for smart specialisation, in a bottom-upLay out a strategy for smart specialisation, in a bottom-up
process involving all relevant stakeholdersprocess involving all relevant stakeholders
 Prioritise, evaluate, and choosePrioritise, evaluate, and choose
 Consider possible governance adjustments if neededConsider possible governance adjustments if needed
 Formulate a clear plan with limited and specific priorities,Formulate a clear plan with limited and specific priorities,
where an evaluation process has to be built-in, withwhere an evaluation process has to be built-in, with
relevant indicatorsrelevant indicators
│ 27

28. PolicyPolicyResearch and
Innovation
Research and
Innovation
Thank you !Thank you !