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ERRIN & EARTO WG Structural Funds

ERRIN & EARTO WG Structural Funds. 16 October 2014 - Brussels. Draft Agenda. Round Table Participants. Regions, in charge of Setting-up RIS3 strategies & ESIF. ERRIN Members Key to the whole process: Are the one to define RIS3 smart regionalisation strategies Manage 320+ OPs >115 Members

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ERRIN & EARTO WG Structural Funds

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  1. ERRIN & EARTOWG Structural Funds 16 October 2014 - Brussels

  2. Draft Agenda

  3. Round Table Participants

  4. Regions, in charge of Setting-up RIS3 strategies & ESIF • ERRIN Members • Key to the whole process: Are the one to define RIS3 smart regionalisation strategies • Manage 320+ OPs • >115 Members • Key to the whole process: Are the one to define smart specialisation strategies • ERRIN helps regions get their voice heard in Brussels and supports the implementation of the Europe2020 Strategy, the Innovation Union flagship initiative and Smart Specialisation

  5. Regions, in charge of Setting-up RIS3 strategies & ESIF • ERRIN Members • Key to the whole process: Are the one to define RIS3 smart regionalisation strategies • Manage 320+ OPs • >115 Members • Key to the whole process: Are the one to define smart specialisation strategies • ERRIN helps regions get their voice heard in Brussels and supports the implementation of the Europe2020 Strategy, the Innovation Union flagship initiative and Smart Specialisation

  6. RTOs, 1/3 of H2020 beneficiaries • RTOs should play a key role in initiating synergies: • Can support links between Regions & H2020: one of the actors to be involved by regions in defining their smart specialisation strategies • Linked to industry (2nd graph) • Linked to Public Authorities (public mandate) HES: Higher or Secondary Education PRC: Private for Profit (excluding Education) PUB: Public body (excluding Research and Education) REC: Research Organisations

  7. ESIF Repartition: Not one level playing field in Europe! • Asking H2020 proposals to show links to ESIFs projects not realistic • Basic fund combination as already asked in some H2020 calls (e.g. NMP & ICT) will penalise the more mature eco-systems which do have limited access to ESIFs and contradict Horizon 2020 targets!

  8. Two Different Realities: Synergies YES but HOW needs careful considerations • We have 2 different programmes: • ESIF aims at improving innovation capacity • H2020 aims at innovation performance and impact • H2020 not the “carrot” to attract other funds: asking H2020 proposals to show links to ESIFs projects not realistic • Synergies issue will not be helped by re-labelling funds from ESIFs to/for Horizon 2020 projects unfunded under Horizon2020

  9. H2020 & ESIF only part of a bigger financial set-up at regional level: big share of private investments In average 2,6 % coming from FP7 per euro R&D • Private investments to be encouraged by ESIF funds: so “funds combination” is a more complex issue than just EU funds combination • Regions are facing complex financial engineering around RIS3 strategies • EU funding in H2020 and ESIF only a small % of National Funds & even less if looking at industrial investments • EU Average is 2.6% FP7 contribution on every € R&D expenditure → Spreading of R&D spending (%) Europe

  10. Key Questions to Initiate an Open Dialogue allowing us to Go Steps Further How do we understand Synergies? How can synergies support Regional Innovation Eco-systems? How can dialogue between the various actors support Regional Innovation Eco-systems? How to measure successful synergies? How can we work together on such topics?

  11. 1. How do we understand Synergies?

  12. How do we understand Synergies? EC Guide so far focuses on COMBINED FUNDING

  13. Synergiesvs Combined Funding • 1. Synergies are not the target: • Creation and evolution of mature innovation eco-systems to improve EU innovation performance • Impact on EU innovation performance is key! • 2. Synergies are a tool: • to allow smart specialisation strategies at regional level to have an impact, • within innovation eco-systems that are able to create and capture value • 3. Successful synergies depend on Strong Regional Innovation Eco-systems. • 4. Defining synergies on the basic principle of combined funding does not do justice to the idea of synergies: • Combined funding measures input instead of output or outcome (synergetic effect) • Combined EU funding = a small means towards synergies

  14. Measuring Synergies is not measuring the level of combined funding • Measuring synergies should NOT be: • Based on how much H2020 projects are linked to ESIF projects but should be the performance on RIS3 targets • Based on a single project basis: • Looking at synergies from a project basis is taking a wrong angle to approach the subject: • as it rules out the time factor which is hugely important in creating synergies • as it suggests (implicitly) that there is a level playing field for combining funds. But, there is no level playing field with regard to the availability of ESIF across the EU.e.g. Poland has more ESIF resources than the H2020 programme • Measuring synergies IS: • Looking at a place-based phenomenon: • Synergies occur on a regional scale and are embedded in a regional/functional ecosystem. • Therefore a place base policy should be used as the reference framework to assess synergetic effects. • Cannot be based on a one size fits all approach: all regions having innovation systems at different level of maturityand different access to all funds.

  15. 2. How can synergies support Regional Innovation Eco-systems?

  16. Supporting Regional Innovation Eco-systems is key • Target = support the nurture and evolution towards mature and adaptable innovation eco-systems to improve EU innovation performance • Key question: how did we develop such regional innovation eco-systems successfully? • When did we experienced successful synergies helping the RIS3 process?

  17. EU Funds Synergies Supporting Regional Innovation Eco-systems is key • Three levels of ESIF have to be looked at in a combined way: strategic, programme and implementationalready now even if in the current EU funding period we are in the “implementation phase only” if not we will be missing key issues! • The strategic and programmatic elements are of crucial importance to secure continuity in policy, a long term vision and perseverance in the implementation of the strategy. • Time is key factor in creating synergies and enhancing innovation ecosystems: • e.g. Germany is the economic powerhouse of the EU while still facing very big regional disparities/different levels of maturity of regional innovation ecosystems. • It takes decades to make regional innovation ecosystems work and resilient.

  18. Synergies:Lessons Learned by Regions • Basics: • It takes long term commitment and endurance to build • Triple helix  cooperation with companies in the lead is a good model • Focus on good business cases is key • Segmenting RIS3 agenda for proper focus (large/international vs SME/regional) • Transition is going to take several decades, hence managing expectationsis important: • Develop a project portfolio with short, medium, long term in mind • Experiment with open innovation where and when possible • Set an ambitious point at the horizon • Build vision and strategy: • Based on regional SWOT, including technologyposition, companies,  knowledge institutes, logistics, x-overs • Cross-overs are required for value chain and innovation, but challenging • Allocating sufficient development power, x-overs require intermediaries • Financial instruments of governments help business development 

  19. Place based policies do imply cluster policies: LT commitment & endurance requiredExample Helmond Cluster

  20. Place based policies imply cluster policies: LT commitment & endurance required Example Basque Region AIC Cluster

  21. Successful Cluster DevelopmentSolliance New Materials Cellintegration Module integration Reliability Upscaling Application Demo’s Roll-to-Roll (R2R) production of FLEXIBLE solar modules with maximum module EFFICIENCY and maximum operational LIFETIME, produced at LOW COST • Bringing together all the thin film PV R&D in the Netherlands, Belgium and part of Germany • Create critical mass in order to stay significant in the global market,building on assets of being a strong materials and equipment supplier • Be a world player in thin-film PV R&D in the areas of fabrication technology and materials by maximizing the synergy between the industry, the institutes and the universities in the ELAT region, covering the whole value chain. Reliability

  22. Innovation Eco-systems & clusters are complex, based on interrelated and intertwined actions Example Helmond

  23. 3. How can dialogue between the various actors support Regional Innovation Eco-systems?

  24. How can dialogue between the various actors support Regional Innovation Eco-systems? • Examples of the dialogue between actors • What is the role of Regions & the role of RTOs? • Regions: • Setting SSS • Implementation • Manage OPs • RTOs: • Support definition SSS • Manage Research & Demonstration Facilities Dialogue Synergies

  25. TR3S (Interreg IVC 1243R4) - TECNALIA • TR3S: • strengthening regional innovation systems • maximizing knowledge flows • spreading the benefits of innovation throughout the entire regional economy. • The project is built upon the regional strengths and seeks to fill the gaps for the effectiveness of their regional development policies through mutual learning and exchange of experiences. • TR3S partners illustrate the diverse EU innovation geography leading to fertile interregional cooperation. The project reinforces synergies and makes the whole value chain work in an effective manner and contributes to economic modernization and increased competitiveness. http://www.tr3s-project.eu/good-practices/

  26. GAITEK (Basque Government) - TECNALIA • Aid instruments & programmes: to strengthen the Basque Science, Technology & Innovation System. • How? • New Design aid packages & services supporting: • Strategic Research performed by research institutions • Basque companies in the field of R&D in order to implement business initiatives and develop new products. http://www.spri.eus/en/technology

  27. Laser Center - AIMEN • Scope:Construction of the AIMEN Laser Application Centre, a new building with new equipment for R&D in laser processing. • Fundingscheme: • ERDF Grant: 4,7M€ • Regional GovernmentGrant: 1,9M€ • AIMEN: 3,4M€ for the Plot and new equipment (not included in the project funding) • Benefitsfrom Project:New facilities for R&D in laser processing with updated equipment. Improve AIMEN visibility in the ERA. Manufacturing lab for industrial innovation. Attractive centre for researchers in a Convergence Region (brain gain).

  28. Laser Center - AIMEN • 2009: Plot purchase by AIMEN. • 2010-2013: ERDF Project Duration. Building construction and equipment purchase and installation. • 2011-2013: Regional Government co-funding. • 2013: Beginning of the activity in the new facilities. • 2014: Official inauguration. • ERDF-FP7 Synergies: The facilities and capabilities obtained thanks to the ERDF funds allowed AIMEN to coordinate in 2013 2 FP7 projects and participate in 3 more all related with laser technologies.

  29. TWI Technology Centre (Wales) Specialising in the development and application of state of the art non-destructive testing (NDT) methods.

  30. TWI Wales timeline • Setting up of TWI Wales: • 2003 • Total funding €7.4m: • ERDF €3.4m • Welsh Government €0.7m • Industry €3.4m • TWI Wales Validation Centre • 2006/2007 • Total funding €2.1m: • ERDF €0.6m • UK Government €1.0m • Industry €0.5m • TWI Wales new building • 2012 • Total funding €5m: • ERDF €2.5m • Private property developer €2.5m

  31. EnergyVille - VITO • EnergyVille unites: • the Flemish research institutes KU Leuven • VITO • Imec • It develops applied research on sustainable energy and intelligent energy systems, such as: • smart grids • electric mobility • Intelligent photovoltaic systems • EnergyVille is being built in the new Thor Science Park (Limburg Province) to develop R&I, establish new businesses and create jobs. • EnergyVille is embedded in many different networks: • Smart Grids Flanders for Flanders • EIT-KIC InnoEnergy for Europe • European Distributed Energy Resources Laboratories (DERlab) • Global Smart Grid Federation.

  32. EnergyVille- VITO • EnergyVilleestablished in June 2011, over time different sources of funding and support needed for investment • Negotiations on-going for ERDF funding to support capital investments (buildings and infrastructure) • Other ERDF Projects related to sustainable energy include: • GEO.POWER - Geothermal energy to address energy performance strategies in residential and industrial buildings (www.geopower-i4c.eu/) • e-harbours: towards clean and energy innovative harbours in the North Sea region (www.eharbours.eu) • ENEVATE:European Network of Electric Vehicles and Transferring Expertise (www.enevate.eu) • GEOHEAT-app: Assess economic feasibililty of igeothermal power supply for buildings and renovation projects • Other public funding sources: • European Institute of Technology • Flemish Government • Province of Limburg • City of Genk

  33. National Composites Centre, High Value Manufacturing Catapult • A £25m project to establish the National Composites Centre • An open access innovation centre to deliver world class innovation in the design and rapid manufacture of composites and facilitates their widespread industrial exploitation • The Centre provides industrial scale facilities, combining academic and business strengths to progress from laboratory to design to factory and into new products.

  34. National Composites Centre,High Value Manufacturing Catapult ERDF, national & regional funds confirmed for National Composites Centre National Composites Centre opened UK Composites Strategy launched Composites project initiated Site/ construction commenced Phase 2 Extension opened Potential to participate in H2020 October 2014 August 2010 October 2014 November 2011 2008 November 2009 Early 2010 3 years 6 years • Synergies; • Clear fit with the Structural Funds strategy • High demand led to expansion of the NCC • Only now full scale operational team is in place do NCC have the capabilities to participate in H2020 funds • Future participation in NMP/ FoF/ Transport/ Energy calls

  35. InnoFun - iMinds • InnoFun is a 3-year INTERREG project, co-financed by ERDF • Regional and national stakeholders share/develop concrete project ideas for regional implementation • Project: “Innovate the innovation funding” • Milestones: • Screening of innovative funding schemes • Identification of good practices • Pilot actions • Preparation of regional implementation plans

  36. InnoFun - iMinds • 13 partners from 9 Member States • Regions involved have different levels of innovation development • InnoFun regions will develop Regional Implementation Plans (RIPs) to help improving the innovation funding in the regions, by describing a policy ready to be implemented • Each RIP will include the political commitment of the relevant regional and national stakeholder for the implementation of the described policy instrument

  37. PICTIC - CEA • Built on a previous nationally and regionally funded CEA project: PRINTRONICS (2005-2009) • PICTIC R&D platform (2010 to 2012, administrated by CEA) gathers materials and equipment • Aims: • Develop printing technologies • Address the new generation of electronic components (circuits and sensors) on large flexible surfaces. • Develop new smart objects on conformable plastic, paper or textile substrates at a reduced cost. • Shaping a value chain which can benefit to industrial companies • Platform used by several companies: Trixell, Suez Environnement, Aludec, Dassaultand ISORG (start-up based on CEA printing processes – 20 permanent employees). • Four H2020 CEA projects accepted in 2014, based on PICTIC knowhow, among which two are pilot lines using PICTIC

  38. PICTIC - CEA 04 06 10 12 13 14 16 2018 • ROXTAR • PIXORG PRINTRONICS projectsubmitted National & regionalfunding Partners : CEA, industries, SMEs Total budget : 3 M€ Need of a printing platform to increase the TRLs: PICTIC project CEA financed the building, ERDF financed part of the equipment Total budget : 8 M€ Launch of projectsbased on PICTIC knowhow and/or carried out on the platform

  39. Vanguard Initiative • Interregional collaboration in the domain of advanced manufacturing (ADMA) , based on smart specialisation • The example of ADMA 3D printing pilot: • Is 1 of 3 industry-led pilot initiatives on ADMA • Constructing a European Network of demonstrators in the domain of additive manufacturing or 3D-printing • To mobilise a critical mass of key actors • To accelerate the uptake of this pathbreaking technology according local conditions that capitalise on regional eco-systems and meet the needs of the SMEs while developing international value chains.

  40. 4. How to measure successful synergies?

  41. How to measure successful synergies? • Measuring against the original target of creation of new/support to mature innovation eco-systems to improve EU innovation performance • Innovation regions measure their success according to how well they did in: • Defining their RIS3 strategy: • Ensure policy continuity (RIS3) • Focus rigorously on a clear, limited set of clusters • Implementing their RIS3 strategy: • Give a day-to-day management body decision making authority and a strong implementation mandate • Ensure that each cluster has a cluster-specific intermediary structure at its disposal • This often require innovative regions: • Following a comprehensive approach • Acting on the basis of a permanently present sense of urgency

  42. Successful synergieswilldepend on the maturity level of Eco-systems • Measuring the level of success and the potential for synergies on a regional level depends on the maturity of the ecosystem and the clusters within it • Tiger • Fast growing areas with significant mass • Limited cluster effect • Strong potential • Gazelle • Increasing cluster effect • Flexible to seize opportunities that arise from current trends • Elephant • Mature cluster effect • Large and strong but also inflexible due to many parties with vested interests • Eagle • Region with mature cluster effect constantly reinventing itself • Not only prepared for external changes but also initiates these • Dodo • Region with mature cluster effect which is not prepared for external change

  43. Successful synergies will take per region and actors different pathways • Examples of pathways: • Indigenous creation of new industry - radical emergence • Transplantation of new industry into region - transition • Diversification of existing industry into new - diversification • Upgrading of existing industry - modernisation

  44. Brainport Measurement and metrics are important Real synergies are measured on outcomes

  45. Afternoon Session

  46. 5. How can we work together on such topics?

  47. Next Steps • What were key topics to ensure development of successful regional innovations strategies where both ERRIN & EARTO members can support? • Should we keep working together? If yes, how?

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