"Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends...

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"Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends and prospects" Antonis Kolimenakis Researcher- economist, MSc Management, MA Economics University Research Institute of Urban Development and Human Resources, Panteion University,Athens (UEHR), [email protected]

Transcript of "Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends...

Page 1: "Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends and prospects" Antonis Kolimenakis Researcher- economist,

"Regional policies for Innovation and Knowledge Εconomy in the Region

of Attica ;Current trends and prospects"

Antonis KolimenakisResearcher- economist, MSc Management, MA EconomicsUniversity Research Institute of Urban Development and Human Resources, Panteion University,Athens (UEHR), [email protected]

Page 2: "Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends and prospects" Antonis Kolimenakis Researcher- economist,

4 Important Points

The Poor South

The case of Attica in Regional Policy

The Greek Credit Crisis

The knowledge economy in the case of ambiguity

Page 3: "Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends and prospects" Antonis Kolimenakis Researcher- economist,

Innovation and EU Policy

• Innovation and its importance, as a content of the new global economy is recognized as a priority by the Lisbon Strategy and the Cohesion Policy for the reinforcement of regional growth

• EU policy claims that the regional level is the most adequate for the implementation of the innovation policies.

• It is supported that physical and geographical proximity favours collaboration between the private and the public sector and leads to the boost of regional clusters, which remain the basic component of technological growth and innovation

Page 4: "Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends and prospects" Antonis Kolimenakis Researcher- economist,

Innovation and EU Policy

• Knowledge economy and the notion of Regional Innovation Systems – RIS have adopted an important role in the scientific literature for the EU Regional Growth Policy

• Most recent economic theories and facts verify the positive correlation between regional spatial level and innovation for economic activities aiming at GDP growth

• However, it is a fact that the least developed regions are those of the South which rank much lower than the Centre

Page 5: "Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends and prospects" Antonis Kolimenakis Researcher- economist,

Regional Innovation Performance Groups for all EU Regions

EIS: 2006

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Reasons for the poor performance of the South

The insufficiency can be attributed to:• Distance from the heart of Europe• Structural problems• Polarized growth• Lack of infrastructures• Low R&D level• Human Resources Inadequacy• Low clustering activities• Low networking level with R&D enablers• Lack of incubators and innovation boosting organizations

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Reasons for the poor performance of the South

• Their production systems are characterised by the small economic size of the firms, the use of lower-class technologies, and their addiction to central sources of knowledge.

• The low R&D level does not only decrease the regional innovative activities but also the capability of firms to utilise the inter-regional knowledge and information and of course the EU funds available

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•The 2007 EIS found Greece in the same group of 'catching up' countries as in the previous years, although with declining growth rate of the SII

•The 2008 EIS upgraded Greece to the group of moderate innovators for the first time

Ranking of the country

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Page 10: "Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends and prospects" Antonis Kolimenakis Researcher- economist,

European Innovation Scoreboard: country page (2009)

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Page 12: "Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends and prospects" Antonis Kolimenakis Researcher- economist,

The case of Attica

• Region of Attica produces almost 50% of the total country’s GDP and remains dominant formulators of the Greek economy

• In comparison to the EU25s GDP, Attica has progressed significantly reaching in a 8 years period 87% of the EU average, from 78%.

• 80% of the regional output stems from the tertiary sector

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Page 14: "Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends and prospects" Antonis Kolimenakis Researcher- economist,

Innovation in the Region of Attica

• The country’s spatial structure is characterized by intense polarization, as 50% of GDP is produced in the Region of Attica

• The Greek Regions in the Regional Innovation Scoreboard 2006 (in a total of 208), occupy positions from 199 to 203 with Attica being the only exemption occupying position No 86

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Innovation Performance in Attica

• In the sectors of research and innovation and in the use of ITC the Region of Attica outperforms the rest of the Regions, but still low in comparison to EU average

• This is a result of their low contribution to the improvement of competitiveness.

• Remarkable tension of the Region’s firms to enable with research projects especially in clusters

• Competitive advantage in non-technological innovations• Improvement of ITCs and diffusion has been essential in both the

firms’ and citizens’ level • Concerning R&D and Innovation, attention should be given to the

production of new knowledge and in the transfer of research in the production level with concrete targets and activites

• The high and important number of Research Institutions and Educational Structures should be exploited

Page 16: "Regional policies for Innovation and Knowledge Εconomy in the Region of Attica ; Current trends and prospects" Antonis Kolimenakis Researcher- economist,

Innovation Performance in Attica

• The entrepreneurial innovation presents a basic insufficiency which is mainly due to the characteristics of the domestic production base, as well as to the low national GDP expenditures for R&D

• 0,57% of total GDP to 1,84% of the average EU expenditures, 21st position in EU-25 (Eurostat, 2008)

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Regional Comparison

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Discussion about current facts

• There does not seem to be a well thought-out centrally designed innovation policy

• Except for the component that derives from research

• Critical elements are missing, principally in connection to university and general education policies

• Difficulty to establish 'thematic' priorities• Absence of a lead market policy

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Discussion about current facts

• Successful cases of innovative and knowledge driven enterprises have not received appropriate attention

• Competing priorities of other ministries and the strong ties of an important number of policymakers to the older sectors of the economy

• Lack of centralized and targeted innovation policy makes it difficult to organize the transition to the knowledge driven economy

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Proposed Measures

• Organizational and technological restructuring and updating of learning activities

• Focusing on SMEs and their incapacity to enable innovation

• Attraction of new dynamic sectors and firms and reinforcement of clusters

• Connection of firms with the enablers of knowledge

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Proposed Measures

• Promotion of concrete targeted R&D interventions focused on the high priority sectors

• Aimed to contribute at the restructuring of the production function towards orientations of;New product development Higher added value quality servicesCurrent environmental needs

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Policies for the Business Sector

• Reinforcement of the firms and the entrepreneurial environment • Reinforcement of FDIs especially in the fields of high-tech with

increased demands in scientific personnel• Support and increase of the investment in production that contribute

to the reinforcement of the presence of firms in the global market• Improvements in the access of funds for SMEs • Motivation for networking, clustering activities• Turning knowledge into innovative products, procedures and

services• Promotion of knowledge and know-how transfer towards Firms and

mainly SMEs• Reinforcement of the R&D infrastructures targeting to excellence,

high-added value products

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Emphasis of Policies

In the reinforcement of activities that boost:• The turning of knowledge into innovative products,

procedures and services from current or new spin-offs• The setup of new innovative firms (start-ups) • The transfer of technology and know-how to firms • The creation of technological thematic parks and their

networking• Boost of clustering and interrelation of firms with

University departments and other Research Insitutes • Creation of exhibition centres and netwroks for the

reinforcement of SMEs adaptation to new technologies• The reinforcement of broadband and software services

towards the promotion of regional competitiveness

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Scenario No. 1

• As Greece performs better in the absorbing technological and innovative inflows produced abroad, and in their marginal adaptation, this model could seem more secure taking into account the uncertainty conditions.

• This could imply emphasis in the application of used-proven technologies and solution, with slight contributive innovations in their application and their adaptation to the current consumer needs, their service modules and to internal structural procedures than to radical innovations.

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Scenario No. 2

• Production of research and endogenous entrepreneurial innovation

• Boost of the first level R&D, production of innovative solutions from firms, universities, and research institutes

• Exploitation of the current “mental” capital, specialized human resources

• This model can be characterized as the “Scandinavian type”

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Credit crisis and its effect on innovation activity

• Due to the lack of hard 'now cast' data on innovation behaviour of firms and consumers, public debate has been raised around the need to promote innovations that save on raw materials and energy while reducing costs and environmental impact without reducing jobs, to remain competitive and at the same time socially accountable.

• This recipe seems to be easier to apply by larger rather than smaller companies

• Larger firms are more innovative than smaller ones (61% against 30%) and they rely more on process than product innovations (33% against 26%).

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Credit crisis and its effect on innovation activity

• The government increased the subsidisation rates for supported enterprises from 50% to the maximum rates allowed by the State Aid Regulations.

• Subsidies to youth, female, researchers or other entrepreneurship and general investment incentives were continued through the operational programmes co-funded by the Structural Funds

• An important effort is made for the dissemination of ICTs throughout the economy, the civil service and households

• The penetration of broadband technologies in recent years seems to be a success story.

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Credit crisis and its effect on innovation activity

• Funding schemes with sectoral priorities, mainly in the areas of renewable energies and green economy, but also in traditional sectors that need urgent technological modernisation

• Venture capital for new innovative firms receives renewed attention but still remains marginal compared to the bulk of the economic effort in the low and medium knowledge intensity industry

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A small riddle

• The complex notion of knowledge economy and the Aristotelian thought

• To know means that we have learned,

but if we have learned how can we still

not know? • Therefore we need a clear reconsideration of what we

know and what we don’t know• It is believed that big deposits of knowledge are lying

below, in Greece• Can anybody reveal them?

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References: 1. Petrakos G., Papadoulis A.,(2010) “Entrepreneurship and innovation in the Greek

regions: An empirical investigation in Thessaly”, Aeihoros, 6 (2), University of Thessaly, 2010

2. Lioujas S., Boudouri E., Gkouras A., Lantzouni P.,(2009) Innovation in Greece; A comparative evaluation with global indicators, policies, strategic proposals, Kokkalis Foundation

3. Regional Innovation Scoreboard, (2009), Pro Inno Europe

4. European Innovation Scoreboard, Comparative Analysis of Innovation Performance, (2008), Pro Inno Europe

5. Regional Innovation Scoreboard, (2006), Pro Inno Europe

6. Innovation Policy Progress Report, Greece, (2009) European Trend Chart on Innovation,

7. Innovation Policy Progress Report, (2008) ,Greece, European Trend Chart on Innovation,