PORTUGAL: UNIVERSITIES, FIRMS AND THE regional DYNAMICS OF INNOVATION José Félix Ribeiro and Joana Chorincas with t

1. Instituto Internacional Casa de Mateus (IICM) INTELLIGENT COMMUNITIES: UNIVERSITIES AS KNOWLEDGE PARTNERS PORTUGAL: UNIVERSITIES, FIRMS AND THE regional DYNAMICS OF INNOVATIONJosé Félix Ribeiroand Joana Chorincas withthecollaborationofAndré Magrinho

2. This presentation is based in 15 Regional Competitiveness Surveys, a project sponsored by the Associação Industrial Portuguesa - Câmara de Comércio e Indústria (AIP-CCI) and Banco Espirito Santo (BES) with the Scientific orientation of Prof José Veiga Simão and the execution by Master Joana Chorincas and Dr José Félix Ribeiro

3. SYNTHESIS THE INTERACTION BETWEEN UNIVERSITES AND FIRMS IS DONE IN PORTUGAL TODAY BY 1.INDIRECT LINKS • Amplifying the pool of advanced trained human ressources • Building the Knowledge base from witch can be develloped new links with firms • Strenghtening the links between multinational companies and portuguese research centers

4. SYNTHESIS THE INTERACTION BETWEEN UNIVERSITES AND FIRMS IS DONE IN PORTUGAL TODAY BY 2.DIRECT LINKS • Research Centers and Interface Institutes doing applied research by contract with individual firms • Participation of research teams from Universities in Collective Research Projects financed by public funds • Creation of Specialized Units (Incubadoras) to promote start ups from the resercah done in Universities

5. IN THE CONTEXT OF A CRISISPORTUGAL: A SMALL ECONOMY THAT MUST RE - LEARN TO BE AN OPEN ECONOMY

6. PORTUGAL: A DEFICIT OF EXPORTS • PORTUGAL: INTENSITY OF EXPORTS AND DEGREE OF OPENESS • LOWER THAN THE SMALL OPEN ECONOMIES OF EUROPE • AND MORE LIKE THE LARGER EUROPEAN ECONOMIES

7. Portugal: a smalleconomywithdifferentpatternsof regional activity

8. MainExport regionsof Portugal: goods & services COASTAL NORTH/CENTER GREAT LISBON, WEST, SETUBAL & TAGUS VALLEY algarve

9. THE COASTAL NORTH /CENTER

10. THE COASTAL NORTH/CENTER Textiles STEEL & FOUNDRIES Footwear Electronics & components CHEMICAL INDUSTRIES Furniture Food & Beverages Cork wood & paper Ceramics Automotive Components & Electrical Appliances Big Industrial Firms ELECTRICAL & MECHANICAL MACHINES Light Mechanics Multinational Firms Precison Mechanics Clusters of SME`s + Big Firms

11. GREAT LISBON, WEST, SETUBAL & TAGUS VALLEY

12. LISBON, SETUBAL & TAGUS VALLEY Tele communications Financial services Automotive & Components Business services Power Food & Beverages Softwae & Information T echnologies Tourism Oil & Gas Building Materials Media & Publishing Electrical & Electronics Network Industries & Utilities Health Services Water & Environment Multinational Firms Transport & Logistics Clusters of service firms

13. 1973 -1986creatingthebasis

14. 1. A DESCENTRALIZING AND INOVATIVE PROGRAM OF NEW UNIVERSITIES AND POLYTECHNIC INSTITUTES

15. UNIVERSITIES POLYTECHNIC INSTITUTES Coastal (*) Minho University Aveiro University Coimbra University University of Lisbon New University of Lisbon Algarve University Ave & Cavado Polytechnic OportoPolytehcnic AguedaPolytechnic Coimbra Polytechnic Tomar Polytechnic Leiria Polytechnic LisbonPolytechnic Setúbal Polytechnic (*) In 1971 has been installed in Lisbon the Catholic University that in 1987 has inaugurated the Escola Superior de Biotecnologia in Oporto Interior & Islands Viana Castelo Polytechnic Bragança Polytechnic Guarda Polytechnic Viseu Polytehcnic Castelo Branco Polytechnic Portalegre Polytechnic Beja Polytechnic Santarém Polytechnic Tras Montes & Alto Douro University Beira Interior University Evora University Azores University Madeira University

16. UNIVERSITIES AND POLYTECHNICS

17. 2. THE FIRST TECHNOLOGICAL PLAN FOR PORTUGUESE INDUSTRY – Beginningin 1983 • LeadershipoF LNETI (NationalLaboratory for Industry & Technology) • COOPERATING WITH MIT andTheWorldBank

18. MAIN FOCUS Technologicalinfrastructures • Technologicalcenters for traditional industries • Institutes for theDevelopmentofNew Technologies INDUSTRIAL RESEARCH • ContractswithFirms & Universities TechnologicalParks • The Lumiar TechnologicalPole FinancingAgency

19. 1986-2006USING THE STRUCTURAL FUNDS OF THE EUROPEAN UNION FOR THE DEVELOPMENT OF SCIENCE,TECHNOLOGY & INNOVATION

20. BUILDING NETWORKS OF RESEARCH CENTERS IN PRIORITY AREAS ABLE TO COMPETE IN EUROPEAN PROGRAMS • Computersciences, INFORMATION TECHNOLOGIES & telecommunications • Biotechnology & fine chemicals • MechanicalEngENEERING. , Automation & Robotics • Materialsscience & technology • Healthsciences & technologies • Oceansciences&technologies

21. CREATING THE BIGGEST PROGRAM OF ADVANCED STUDIES IN SCIENCE & TECHNOLOGY IN PORTUGUESE CONTEMPORAY HISTORY USING THE european SOCIAL FUND TO FINANCE PhD IN EUROPEAN , Northamerican AND portugueseUNIVERSITIES

22. PhD 1994-2009financed by the State Source: Fundação para a Ciência e Tecnologia (FCT), FCT Board, 31 May 2011

23. PhDandPost-DoctoralAwardedGrants, 2006-2009 • (*) Programs: • MIT Portugal • CMU | Portugal • Austin | Portugal Source: Fundação para a Ciência e Tecnologia (FCT), FCT Board, 31 May 2011

24. PhD 1994-2009by Science & Technology Areas Source: Fundação para a Ciência e Tecnologia (FCT), FCT Board, 31 May 2011

25. A NETWORK OF TECHNOLOGICAL CENTERS FOR TRADITONAL INDUSTRIES • Textiles & Apparel • Footwear • Wood&Furniture • Cork • Ceramics & glass • moulds & precisionmechanics • Metal mechanic industries • Leatherindustry

26. Industrial research • PROGRAMS FOR INDUSTRIAL RESEARCH PROJECTS AND THE CREATION OF RESERCH LABORATORIES IN FIRMS • PROGRAMS OF COLECTIVE RESEARCH PRO JECTS BETWEEN FIRMS AND RESEARCH INSTITUTIONS

27. AN INNOVATION AGENCY TO IMPLEMENT SEVERAL PROGRAMS WITH FIRMS : • R&D LaboratoriesinFirms • NewTechnologyStartUps • Colective Research Projects • EUREKA partnereships • PHD andMasters for InnovationinFirms • Industrial participationinEuropeanScientificoragnizations - CERN, ESO, ESA • etc

28. THE COASTAL NORTH /CENTER • INSTITUTIONS IN REGIONS • UNIVERSITIES • POLYTECHNIC INSTITUTES • TECHNOLOGICAL CENTERS

29. INEGI Instituto de IDMEC Instituto de Eng ª Mecânica e Eng ª Mecânica U Porto Gestão Industrial Centro de Centro ICEMS Centro Tecnologia Engenharia Instituto Química Mecânica e Mecânica C & Eng ª Orgânica, Automação U Coimbra Materiais Prod º Naturais U Aveiro e Superfícies e Agro alimentares CBQF IPC Centro Instituto de Biotecnologia Moulds Polímeros Food and e Química Fina E Compósitos Cluster ESB agroindustrial cluster CICECO Centro de I&D em Centro de Materiais CENTRO TECNOLÓGICO Ciência Cerâmicos MOLDES E PLÁSTICOS e Tecnologia e Compósitos Têxtil Centro U Minho Processos CEIA Químicos e CE IND.AUTOMÓVEL Produtos Textile/Leather Da Floresta Cluster CENTRO TECNOLÓGICO DA CERÃMICA E VIDRO RAIZ CENTRO TECNOLÓGICO C. TECNOLÓGICO IND.TÊXTEIS E VESTUÁRIO CALÇADO CENTRO TECNOLÓGICO DA CORTIÇA R&D Centers & Institutes Technological Centers & Sectoral Institutes THE TRADITIONAL EXPORT INDUSTRIES, TECHNOLOGICAL CENTERS & RESEARCH CENTERS Mechanical and Automotive Cluster Ceramics cluster Forest industry cluster

30. GREAT LISBON, WEST, SETUBAL & TAGUS VALLEY • INSTITUTIONS IN • REGIONS • UNIVERSITIES • POLYTECHNIC • INSTITUTES • TECHNOLOGICAL • CENTERS

31. 3. 2006-2011 A NEW TECHNOLOGY PLAN

32. THE TECHNOLOGY PLAN • THE NATIONAL STRATEGIC REFERENCE FRAMEWORK (QREN) APPROACH: • COLLECTIVE EFFICIENCY STRATEGIES: COMPETITIVENESS AND TECHNOLOGY POLES CLUSTERS • STRENGHTENING THE RESEARCH CAPACITY OF FIRMS – INCENTIVE SYSTEM • FUNDING OF RESEARCH PROJECTS • THE COOPERATION WITH U.S. UNIVERSITIES • MIT • CARNEGIE MLLON • AUSTIN

33. Collective Efficiency Strategies There are four different types of Collective Efficiency Strategies: • (1) Competitiveness and technology poles: innovation networks which are partnerships between relevant support corporations and institutions, sharing a strategic vision based on innovative activities aiming at the development of highly technological projects, with a strong international perspective (i.e., projects that promote technological development directed at the production of new products, services or processes, with a linkage between business skills and scientific and technical knowledge). • (2) Other clusters: national partnerships sharing a vision for the economy of a specific territory’s economy, or for interconnected sectors, and for which proximity is a key factor in the innovation process.

34. Collective Efficiency Strategies • (3) Programmes for the economic enhancement of endogenous resources (PROVERE):partnerships between local players who appreciate the specific resources of low density areas and which generate activities based on creativity and innovation in locations featuring significant weaknesses vis‐à‐vis competitiveness. • (4) Urban regeneration and development actions (ARDU): partnerships for urban economic renewal, through the relocation or reordering of economic activities and renewal of economic activities in urban centres.

35. THE COMPETITIVENESS AND TECHNOLOGY POLES

36. The regional CLUSTERS

37. Incentive System Incentive System of the Competitiveness Factors Operational Program of the National Strategic Reference Framework (QREN): • Innovation IS (SI Inovação): Innovation Incentive System that supports production innovation investment projects fostered by one or more companies in cooperation. • R&TD IS (SI I&DT): Incentive System for Company Research and Technological Development that supports research and technological development and technology demonstration projects. Co-promotion projects are very important.

38. Incentive System • SME Eligibility IS (SI PME): Incentive System for SME Qualification and Internationalisation designed to provide support to investment projects fostered by one or more SMEs in cooperation and aimed at innovation, modernisation and internationalisation of SMEs. • It is important to highlight that these IS finance the cost of acquisition of the research and innovation consulting services provided to SMEs by national laboratories – “Vale I&DT” and “Vale Inovação” programmes. The “Vale I&DT” programme aims to support companies so that they can acquire research and development services that will improve their products, processes or services. On the other hand, the “Vale Inovação” programme is used for consulting services and to support innovation systems. • Incentive System of Collective Actions (SIAC): links between business and innovation support organizations (universities, polytechnics, clusters and competitive poles, incubators, science and technology parks and other entities that support business).

39. Funding of Research Projects • Support System for Entities of National Scientific and Technological System (SAESCTN): objective of stimulating internationalization and cooperation among universities and the main labs and research centers in scientific areas. • Support System for Parks of Science and Technology and Incubators of Technology-based Companies

40. THE TECHNOLOGY PLAN THE MOBI.E PROJECT – from renewable energie to electric mobility with a innovative business model A pilotnetworkwith 1300 chargingpointsand 50 fastchargingpoints

41. THE TECHNOLOGY PLAN THE MOBI.E PROJECT – PARTNERS Research and Innovation: Communication: Energy: Technology:

42. THE TECHNOLOGY PLAN THE MOBI.E PROJECT – RESULTS

43. THE TECHNOLOGY PLAN Communicationnetwork - newgeneration

44. Some benchmarking • The total expensein R&D in Portugal hasattainedin 2009 1,71% of GDP (0,80% in 2005) • Portugal hasattainedthelevelof8,2 Researchers (ETI) inthousand active population, equivalent to 45.909 researchersin ETI (surpassingthe objective oftheTechnologyPlanwhichwas 6 researchers for thousand active population ) • Portugal hasbeentheThirdCountryin UE27 withthebiggestgrowthinPatentsregisteredhaving for thefirsttimeattainedthelevelof 100 europeanpatebstdemands (26%),  

45. Some benchmarking • TheExportsofthe 100 firmswith more investmentin R&D in 2008 hasrepresented more thna 25% ofthe total exportsof Portugal andhasgrownfourtiemsfasterthanthat total • TheValueAddedofthe 100 firmswith more investmentin R&D in 2008 hasgrownat 12% almost tem times superior to the VAT oftheportugueseeconomybetween 2007 and 2008

46. Some benchmarking • In the “European Innovation Scoreboard 2009”, Portugal has been the 7thCountry that had the biggest upgrade in the INNOVATION RANKING on the UE 27 (surpassing countries like Spain, Italy and Greece)   • The Community Innovation Survey, 2008 (CIS2008) points out that between , 2006 e 2008, Portugal has been the 4th Country in UE with more innovative firms • The Global Competitiveness Report 2010-2011(Setember 2010) of World Economic Forum, indicates that Portugal has made new progresses in the INNOVATION ranking, being in the 32th position in the ranking of 139 countries

47. 4. THE RESULTS: DIFERENT regional PROFILES OF INSTITUTIONAL DYNAMICS IN INNOVATION

48. The dual NATURE OF INNOVATION processESin regional economicdynamics • DiversificationofcompetitiveActivities & newCompetences • InnovationinProducts, services & Processes inExistingActivities

49. Ave & cavado • INDUSTRIAL EXPORT BASE • Textile & ApparelCluster • Plastics • Multinationalfirms: CONTINENTAL, BLAUPUNKT, GRUNDIG, ACTARIS

50. Ave & cavado KnowlEdge base Minho University (Braga e Guimarães) anditsResearchCenters • ComputerSciencesandInformation Technologies • Polymer & MaterialsSciences • MechanicalEngineering, Automation & Robotics • TextileEnginneering TECHNOLOGY CENTERS • TheTechnologicalCenter for Textile industries