Regional Innovation Strategies

1. Regional Innovation Strategies Reflections on US economic development policies: Meeting the ‘new economy’ challengeby Mikel Landabaso 2001/03/30 José Luís Simões

2. Reflections on US economic development policies • Science and Technology Strategies • Strategic Planning Process • U.S. Public sector role in promoting competiveness • U.S. Innovation policy support system • Federal level • State level • Conclusions

3. Reflections on US economic development policies Science and Technology strategies In 1969: “ the federal government should enlarge and improve its program of financial incentives to encourage regional planning activities, especially to incorporate R&D in the design of programs aimed at the solution of regional problems” In 1996: “Today’s economy is knowledge and idea-based, driven by the ability of firms to innovate and develop new products and processes” “ Strategic planning ... , determine the role government should play in facilitating a healthy business environment”

4. Reflections on US economic development policies Strategic planning process - I • Role of public sector: animator / facilitator • Framework for collaboration and common action among private and public actors • Maximize synergies • Elaboration of shared vision • Implementation of an action plan • In Europe: Academic thinkers / regional planners • In Europe : Regional innovation strategies (RIS) • U.S. Approach: ‘cluster’ oriented

5. Reflections on US economic development policies Strategic planning process – II (Lessons from US) • Bring key stakeholders together to develop consensus • Provide an opportunity for business, academic, and community representatives to share their input • Forge partnerships within and between public and private sectors • Increase public understanding of the economy • Ensure that state has a maximum return on its investment • Set goals against which to measure sucess

6. Reflections on US economic development policies Strategic planning process – III (RIS objectives) • Key priority: promotion of innovation, particularly in less favored regions • Increase the number of innovation projects in firms • Promote public/private and inter-firm co-operation and networks

7. Reflections on US economic development policies Strategic planning process – IV (RIS methodology) • Based on public-private partnership and consensus (involve regional administration) • Integrated and multidisciplinary • Focus on firm’s innovation needs and broad involvement of regional actors • Action-oriented and include an action plan for implementation • Exploit the European dimension • Incremental and cyclical

8. Reflections on US economic development policies U.S. Public sector role in promoting competiveness: Creating the appropriate ‘business climate’ (I) • Survey in 2300 manufactures, 500 university leaders on how the link between R&D, education and the nation’s competiveness was perceived to work. • State and federal government have a significant role to play: • Tax structure that incentives R&D • Support basic research programs

9. Reflections on US economic development policies U.S. Public sector role in promoting competiveness: Creating the appropriate ‘business climate’ (II) • Investing in systems that build workforce skills • Enhancing the infraestructure – communications and transportation • Reengineering government to deliver effecient services • Aligning state tax systems • Supporting entrepreneurs • Promoting university policies • Adressing quality of life

10. Reflections on US economic development policies U.S. Innovation policy support system – Federal level (I) • SBIR – Small Business Innovation Research Program • STTR – Small Business Technology Transfer Program • ATP – Advanced Technology Program • MEP – Manufacturing Extension Partnership • EPSCoR – Experimental Program to stimulate Competitive Research • EPSCoT – Experimental Program to stimulate Competitive Technology

11. Reflections on US economic development policies U.S. Innovation policy support system – Federal level (II) • SBIR – Small Business Innovation Research Program • Funds the critical start up and development stages • Encourage the commercialization of new technologies • Potencial benefits: • Providing capital to small businesses • The new technologies may lead to the formation of new businesses • The federal government may find new suppliers for technologically advanced products

12. Reflections on US economic development policies U.S. Innovation policy support system – State level All 50 U.S. States support cooperative technology programs whose primary goal is economic growth. Cooperative technology programs: • involves government and indusry, often universities • Sponsor the development and the use of technology • Improve practices to benefit companies • Development of fiscal policies to encourage investments in R&D

13. Reflections on US economic development policies Conclusions (I) A ‘new type’ of industrial/regional policies that goes beyond tax incentivesw and education support or provision of physical infrastructures: • different forms of venture capital • Cluster creation and supporting inter-firm networking • E-business promotion • Incubators • Manufacturing modernization • Promoting university-enterprise relationships and technology transfer

14. Reflections on US economic development policies Conclusions (II) • Enhancing the R&TD and IT infrastrutures • Preserving intellectual capital • Improving education and training