Innovative Wielkopolska

Innovative WielkopolskaKick-off workshops on :Industry – Science RelationsTechnology Transfer & Financing InnovationInterregional Collaboration with Partner Regions

14-15 November 2002 – Poznań

Poznań Science & Technology ParkPoznań Science & Technology ParkCentre for Innovation PromotionCentre for Innovation Promotion

Contract N°IPS-2000-1037Contract N°IPS-2000-1037

Presentation by Alasdair [email protected]

Rue de Clairvaux 40, bte 101 1348 Louvain-la-Neuve - Belgium

Tél.: 32 10 45 45 10 Fax: 32 10 45 40 99 E-mail: [email protected]

Web: www.ade.be

The project is financedby European Commission within 5thFramework Programme for EuropeanResearch and Technological Development.

Innovative WielkopolskaAnalysing Regional Innovation Systems - Introduction

RIS Wielkopolska - ADE S.A. 3

Regional innovation systems Narrow definition:

Science and Technology system only. Broad definition’:

Including overall institutional set-up which affects innovation.

"all the actors and activities in the economy which are necessary for industrial and commercial innovation to take place and to lead to economic development".


How to explain innovation performance ? Need to identify 'bottlenecks' and gaps in

'regional innovation system': Framework conditions (markets, finance,

etc.); R&D system; Innovation intermediairies; Capacities, incentives and competencies for

enteprises to innovative; Policy orientations & delivery mechanisms.


Determinants of regional systems of innovation (RSI)

Regional endowmentsLocal endowmentsSocial capital

Firm-specific factorsActorsLinkagesCompetencies

Sector specific determinantsTechnologyFinanceMarkets (demand)

National determinantsPrivatisationR&D system

Network organiserNetwork alignment

Based on : Radosevic (2000)


What should be aims of RIS "supply" analysis ? Avoid carrying out 'one more' study Should be a research-action type exercise.

Building towards: a strategic policy framework, But also early development of pilot actions Raising awareness on innovation as driver of growth

Involve various stakeholders from the region. Strengthening 'innovation networks'. Confront the findings with business opinions.

Develop pilot-actions: keeping in mind practical requirements of future

Structural Funds.

Innovative WielkopolskaTechnology Transfer & Financing innovation

Rue de Clairvaux 40, bte 101 1348 Louvain-la-Neuve - Belgium

Tél.: 32 10 45 45 10 Fax: 32 10 45 40 99 E-mail: [email protected]

Web: www.ade.be


Technology transfer & financing innovation Issues at stake/Key questions.

Typology of innovation support & financial mechanisms.

Innovation financing in the EU: good practices.

Creation and growth of innovative enterprises.


Repertoire of policies for improving innovation capabilities

Strategic capabilities:Business capability development

Business & technology audits; mentoringAwareness programmesFeasibility assessments

External capabilities (networking)

Access external knowledge-Science parks, Technology centresR&D institutes, University liaison…

Manage Producer/user relations

Access partners

Internal capabilities-product development aid

-Public fund R&D programmmes-Manufacturing consultancy

-Quality programmes-Placement of qualified personnel

--Training needs analysis-Technology management courses


Staircase for developing company capabilities

Proactive Mentoring

Basic capability development

Research services

Technological development

Sector-specific development

Capability development

Public <-

Funding ->

Private


Matching support to needs Micro Low tech

SMEs Technology Competent

Large/ R&D performers

Research services

Technological development

Sector/ cluster specific

Basic capabilities

Mentoring


Different actors in innovation system and financing role

Public Private

GovernmentMinistries

HigherEducation

UniversityFunds

PrivateNon-profit

Public-privatePartnerships

Private firms

FDI firms

Private consortiaIntermediation

Performance

Funding

Role

/ Pr

oxim

ity

Research Councils/ Technology Agencies

GovernmentLaboratories Universities Research

InstitutesIntra-muralR&D (firms)

Mission /objectives


Issues at stake Overall access to finance is still quoted as a major

barrier for the start-up and growth of innovative companies: More important constraint in candidate countries.

As a result of market-failures in the availability of funding for innovative but risky projects, seed capital facilities have been supported by policy measure.

A toolkit of financing mechanisms – but which ones are appropriate for less-developed regions?

What are possibilities emerging from EU/national level and what is role of regional actors/authorities ?


Typology of existing financial mechanisms (I) Direct Measures:

Grants are given to firms and public research institutions to carry out R&D and other innovative activities.Direct equity investment is provided by public institutions directly into firms and is usually repayable after a period of between five and ten years.Hard and soft loans for investments are available from public organisations and offer more favourable conditions than commercial loans.Subsidies can be made available for capital goods investment and projects.


Typology of existing financial mechanisms (II) Indirect Measures:

Loans and equity guarantees for lenders and investors make investment more attractive for financiers.Tax incentives are mainly used to stimulate R&D and innovation activities in firms and to encourage risky capital investments (For example, in Portugal the system of tax credits for R&D investments by firms was extended for the fiscal year 2001).Subsidising the interest rates of commercial loans from financial institutions to firms.


Typology of existing financial mechanisms (III) Measures for enablers

Measures for investors (Tax relief for investors, equity investment in financial organisations.Measures aimed at improving the financial environment (Creation of a professional infrastructure of investors, regulatory changes, including changes in the fiscal and legal environment; development of stock markets).Intermediation measures (taken in relatively mature innovation financing markets. For example, in Wallonia (a region of Belgium), an annual Venture Capital Fair).


Innovation financing in the EU: good practices Germany uses a set of instruments to improve

financing conditions for innovation. A very successful example is BTU (Venture Capital for small technology-based firms, 2001). Also, there is a possibility of low-interest loans to refinance VC providers who pass on this funding as VC to NTBFs. VC providers are partially released from their liability for the refinancing the loan (Refinancing Model).

Finland launches PreSeed Finance Initiative which aims to bridging the gap between start-up companies and VC financing market (2001). The objective is to encourage the birth and accelerate early stage growth of new technology based companies.


Creation and growth of innovative enterprises To overcome limited correspondence between supply

and demand in funding of innovation.

To determine the national/regional capacity in financial support in regard to:

Support for R&D to single firms (direct measure).Development of financial incentives to applied research activities which have impact on local productive system (indirect measures).Creation of necessary conditions for providing funds to firms at favourable rates (facilitate mode of access to credit) involve public sector in VC (indirect measures).

Building adequate methodology

Tools and analysis: RIS experience


Tools and analysis First phase - should involve collection of existing studies

on Wielkopolska ISR.

Second phase - application of well-tested approaches for supply analysis (questionnaires, interviews, workshops / peer review).

Third phase – validation of emerging results and begin 'brainstorming' on projects.

Using SMEs needs analysis as a tool for dialogue and strategy development.


RIS experience & approaches adopted

SME needs analysis should provide a bank of information about opportunities (not only

mapping needs, but ideas for possible projects). Establish clear synergies between business needs and support

systems analysis (questions in surveys, interviews on supply side, etc.).

Analysis of supply:Often less formal process than the demand-side analysis;Some regions used technology foresight but requires already sophisticated system and 'social capital'.Need to avoid desk "study" & no mandate to do full evaluation of structures;Interview-based survey plus working groups on specific topics (participatory evaluation or self-assessment).


Organisational analysis Role & function

Mission Tasks Position

Capabilities Personnel Budget Legal structure

Orientation Sectors Target groups Type of innovation

Instruments Financing Stimulating Regulating


Output of organisational analysis "Inventory" – boring, put on shelves and

rarely used… Portal (e.g. RIS Central Macedonia)

linked to observatory and monitoring system used as part of regional 'marketing' and inter-

regional co-operation building effort Recommendations for filling gaps:

Identification of structures required at local level; Absence of provision of support from national

organisation…


Policy gaps analysis Need to compare (set) objectives at

regional (national) level; What are existing or required (on

basis of needs analysis) instruments and delivery mechanisms

Matrix type analysis can yield clues as to consistency of policy framework


Set of policy objectives Support for R&D in single firms; Promotion of risk capital and high-tech investment; Improving absorptive capacity (competence of

firms, innovation management); R&D co-operation (firms-firms, firms-R&D

community); Infrastructure for high-tech starters; Human mobility (secondment researchers to

industry, etc.); Exploitation of public knowledge

(commercialisation of R&D, IPR support,…).


Set of delivery mechanismsClassification of Structural Fund interventions: Research projects based in universities and

research institutes (grants); Grants & loans (guarantees) to enterprises; Innovation & technology transfer bridging

institutions & networks; RTDI infrastructure; Training for researchers; Shared business services (incubators); Financial engineering (venture capital).


"Gaps analysis" (Estonian case ADE, 2002)

Field of intervention / Policy Objective

Support of R&D

(Risk) capital markets

Improving absorption capacity

R&D co-operation

Knowledge diffusion

High-tech starters

Human mobility

Improving exploitation of public knowledge

Research projects based in universities and research institutes

ESTAG applied research grants

Competence Centres, Technology Development Programmes (--) SPINNO

Grants and loans to enterprises (state aid)

ESTAG product development grants/loans

ESTAG Equity grant ?

ESTAG Inno-Awareness

ESTAG grants/loans

ESTAG grants/loans, ERDA Start-up grants (--)

RTDI Infrastructure ETF ?Centres of Excellence (--)

Biotech Development & Incubation Centre

Innovation and technology transfer, networks & partnership between industry/research

TTU IC CARIN, TRIS, etc.

Competence Centres ESTIRC SPINNO (--) SPINNO

Training (for researchers)ESTAG Inno-Awareness (--) (--)

Shared business services (incubators)

Funds linked to incubators ?

Technology Parks

Incubators - e.g. Tallinn City, Tartu Biotech Development & Incubation Centre

Financial engineering (Guarentee schemes, risk capital) Kredex ?

Venture Fund ? Kredex ?

Concept / policy development stageDesign / project developmentInstrument operatingNo specific schemes/instruments

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Innovative Wielkopolska