GÁL, Zoltán (PHD, Dr habil.) galz@rkk.hu

1. The Role of Mid-Range Universities in the Regionally Embedded Knowledge Transfer(The Case of Non-Metropolitan Regions in Central Eastern Europe) Centre for Regional Studies Hungarian Academy of Sciences GÁL, Zoltán (PHD, Dr habil.)galz@rkk.hu Centre for Regional Studies,Hungarian Academy of Sciences University of Kaposvár, Faculty of Economics

2. Content • Theories of universities’ developmental role • Special implications for mid-range universities in the CEE region • Case studies

3. Theories of university’s functions:conceptual framework of the „fourth academic revolution” • Direct involvement in social & economic development is a relatively new ph. • Triple helix model for research & entrepreneurial universities – generative role (Etzkowitz, 1983,2002, Clark, 1998) – based on US traditions • Engaged university model for univerities – developmental role (Goddard, 1999) – based on EU traditions • Strong territorial scope for regional universities – regional engagement from „community service” perspectives (Holland, 2001), „Learning regions”, (Lundvall, 1992, Gál-Ptacek, 2010) • “Regional innovation organisation” or “regionalization of economy” (Gunasekara, 2004). „Welfare of regions can be enhanced through universities’ engagement” (Huggins-Kitagawa, 2009 • University’s economic impact is highly dependent on the region’s absorption capacitytechno-economic characteristics and economic specialization (Goldstein and Renault, 2004, Gál-Csonka, 2007) • Varga (2009) build on the notion that knowledge generation becomes localized and agglomeration effects are crucial for the spillover effects to work.Universities can significantly contribute to local development (Varga, 2009)

4. The complementary and diversified missions of universities Teaching Research Regional development

5. Theories of the universities’ developmental role • Triple helix(Etzkowitz & Leydesdorff, 1997) • The quadruple helix modelCarayannis and Campbell (2009) extends TH with the civil sector or society. • Regional engagement model (Third mission) • Stronger regional focus in teaching and research • More engagement with regional stakeholders and istitutions • Community service functions: institution serving the needs of the local area or region • Regionally-focused HE has a stronger focus on regional student recruitment and graduate retention, • Development of programs (consultancy) that address skills required by regional industries and the localisation of learning processes (LLL for regional needs) • Stronger regional engagement in medium-tech innovations and in social and organizational innovation • Individuals in the academic sphere take active role in the civil society: act as regional animators through representation on outside bodies • Universities are relatively permanent institutions and “safer” for development policy measures. • Universities as important regional actors, are part of these governance networks (see Arbo & Benneworth, 2007).

6. Entrepreneurial or/and developmental (regionally embedded) universities

7. Mid-range universities and peripheral regions • Peripheral regions which are functionally distant from core economic activitiesin the knowledge economy • failure in regional governance, networking deficiencies. • limited critical mass of researches • Mid-range universities are very often located outside of metropolitan regions (secondary city-regions) (Wright et al. 2008) • Remote regions can be too “institutionally thin” • Old industrial regions can be trapped in historical policy paradigms; • “Density of contacts” is much lower and possible spill-over effects emerge more sparsely. • Weaker regions tend to be more dependent on their universities for income and innovation, but often these universities underperform in comparison with similar institutions in more competitive regions (Huggins and Johston, 2009) .

8. Top universities vs. mid-range universities

9. Path-dependent situation of universities in CEE regions • Much stronger tradition in educationg role: universities financing system did not motivate them to search for new contacts and collaboration with industry • Slow “marketization” of the university sector after 2000 (FDI inflows, TNCs, supporting infrastructure) • University-state-industry-citizen relations (helixes) had shorter time frames to evolve. • CEE countries with centrally coordinated innovation policies, non-capital city-regions have different third role policy options than in capital city regions. • Stronger polarization of R&D spending of Universities in metropolitan and non-metropolitan regions • Weak regional innovations systems • General economic effects of universities and related R&D investments are hardly visible in transition economies such as many CEE regions.

10. Innovation gap: capital cities and regions

11. Key indicators on South Transdanubia’s knowledge base in comparison to the national average 1997/1999-2003 • RTD creation of the business sector in South Transdanubia is limited (17%) • HEI sector accounts for 78% of total RTD expenditures in ST

12. Mid-range universities in Western Europe and In CEE note: for Palacký Univ. N FTE, HERD in 2008, N spin-offs and FTE TT in 2011

13. Barriers of university and industry links „Autonomy of science…” „Nobel-prize…” „Economic progress s „Researchers are undisciplinied…” „Scientific Excellence…” „Fast intrusion into markets….” „Aim: income and profit” „Aim: publications, citations” Two different worlds? UNIVERSITY ENTERPRISE • Non-embedded university researches just like "cathedrals in the desert" are unlikely to be able to develop knowledge transfer and spillovers with local economic actors

14. The limits of university based knowledge transfers in non-metropolitan regions of CEE • How to generate world class research and critical mass • Need to develop a portfolio of university-industry linkages, tacit & codified knowledge transfer • Contract research and licensing: barriers in university–industry links • universities as the potential knowledge sources for firms located in their vicinity, are less integrated in their respective region, since they prefer international co-operation therefore RTD activities • Spin-offs formation in a less supportive environment • spin-off incentive policies of the universities do not show sensible impacts on the emergence of these academic firms and departmental attitude is often unfavourable • Intermediaries: deficiencies and overlaps • We found in South Transdanubia that many organizations with very similar profile were established at the same time, which is not only resulted overlaps but inhibited to achieve economic of scale.

15. Stronger regional engagement: creating new alternatives to traditional knowledge transfer • ‘Principle of helping their regions’ to mobilise local knowledge in a process of collective learning in order to serve local community (Henderson-Thomas, 1999) • Stronger partnership between universities and regional development agencies • Transfer of Social &Organizational innovation is the generation and implementation of new ideas in order to overcome the social barriers of innovation and it requires ongoing social interactions. • This facilitates the formation of new institutions, networks and building up social capital through collective learning processes. • The main factors • Endogenous: The accumulated knowledge and the experiences of staff at the HEIs provides expertise in various field (consultancy, network-type collaboration) • Exogenous pressures are extorted by the crisis, new market demand and policy goals envisaged real regional and social prosperity integrating knowledge, social and human development. • Connectivity among different institutions and will provide not only better funding opportunities but also a collective learning platform for social interactions

16. A proposal for a „Regional strategy with global focus” Allocation of resources for a university portfolio:a double pyramid model with satellites Spin-offs Excellented forms & fieldsfor global presence Public ed.consultants „Flagship”researchers& research Consultants Valuable MA & postgradprogrammes for the region Someprestigous research groups Companyconsultants Incubator RegionallydeterminedBA/BScprogrammes Broad portfolioof regional consultancy& applied research Short courses& vocationaltrainings Training Center Liaisonoffices • Differentiate expertice and competencies in terms of international and regional scopes

17. Examples/frames for possible local and regional partnerships/engagements in South Transdanubia, Hungaryto involve HEIs • Pole-development programme (effective participation in economic cluster-development); • European Capital of Culture project • Transnational collaboration and networking • Establishing learning regions in order to support partnership-based programmes of co-operation in LLL • Adopting global benchamarking tools: participation into international networks of engaged universities (PURE)

18. Strong collaboration in the European Capital of Culture 2010 project! Pécs, the Pole of Quality Life Health Industry Environmental Industry Cultural Industry Research, Innovation Health Industrial Innovation Centre South-Transdanubian Environmental Industrial Park and Research Centre Creative Research and Experiment Centre University Incubation Network Health industrialincubation and support Environmental industrial incubation and support Cultural industrial incubation and support P é c s Development Ltd. PartnershIp , synergy Health industrial application Cultural industrial application Environmental industrial application Health industrial consumption Cultural industrial consumption Environmental industrial consumption Horizontal precon- ditions City maintenance, infrastructure Informatics Education, human development Financing and support of enterprises

19. The European Capital of Culture 2010 Project • University supporting urban development and regeneration • Creation of knowledge spaces • Contribution to the quality of urban governance • Contribution to place branding • Being a university city has contributed to the urban ambience and real estate site development of Pécs • University of Pécs has played a principal role in organizing of the European Cultural Capital project: development of the new cultural, community and educational functions of the city’s newly built cultural quarter

20. REGIONAL UNIVERSITIES AS GENERATORS OF TRANSNATIONAL KNOWLEDGE REGION(UNIREG IMPULSE PROJECT) To develop a knowledge region based on the universities’ active regional engagement – their third mission – mediating organizational and social innovation by strengthening networked relation between universities and regional actors. Strossmayer University (Osiek-Croatia) • Kaposvár University

21. Conclusions • Knowledge transfer at mid-range universities in CEE face several extra constraints • Different development path of innovation systems (weaker role of experimental research) • Lack of maturity and critical mass, weak industrial base & innovation systems • Mismatch between economic and knowledge sectors • Constraints of knowledge transfers & local spillovers • Smaller importance of business-led networks • How to generate world class research and critical mass? • Stronger engagement in social & organizational innovation at regional level • Localisation of learning processes and development programmes (consultancy) • Fostering 'new combinations' of partnership-based, innovation-centred approaches: SC, HR development, networking, collective learning and building trust • Constructing regional advantage with the stronger developmental role universities