Monitoring and assessment tools · The PACA Region in a nutshell • 3rd region in FR for inhabitants and 17th in Europe • 3rd region in FR and 15th in Europe for GDP • 82% the

Monitoring and assessment tools

24 April 2014

www.pwc.com

PwC PwC

Agenda

1 The PACA Region in a nutshell 1

2 The Regional Innovation Observatory : the origins …

4 The Regional Innovation Observatory : how does it work, what is it for …

5 Smart specialisation strategy and monitoring & evaluation …

6 The Observatory and the evolution of monitoring & evaluation practices

…

…

Page Section

Innovation policies Monitoring and Evaluation Slide 2

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The Provence-Alpes-Côte d’Azur Region in a nutshell

Innovation policies Monitoring and Evaluation

Slide 3

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The PACA Region in a nutshell

• 3rd region in FR for inhabitants and 17th in Europe

• 3rd region in FR and 15th in Europe for GDP

• 82% the services weight in the regional economy

• 97,6% of companies are SMEs

• A good placement on new emerging markets

• An attractive Region

• « Innovation follower » according to the European Regional Innovation Scoreboard

• A very rich and fragmented innovation support service providers system


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The Regional Innovation Observatory

The origins …


Slide 5

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The PACA Evaluation and Monitoring system… the origins

Background : First steps towards the

set up of the regional Evaluation & Monitoring System in PACA were taken during the work that led to the first PACA Regional Innovation Strategy in 2009: all relevant, reliable and available indicators were collected and analysed and a number of focused studies were performed… the outcome was the first fact-driven, robust diagnosis of the status of innovation performances in the region, that built the foundations for the 2009 RIS.

The success of this mission led to the creation of the Regional Innovation Observatory

Mission : Collect, organise and analyse

data (quantitative and qualitative) to support innovation policy decision-making and the Regional Innovation Strategy implementation

Clients :

• Decision-makers • Innovation service support providers :

PACA Innovation network • Companies and SMEs in particular

Slide 6

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The PACA Observatory 1


Some examples on how the M&E contributed to RIS

Main 2009 RIS achievements :

The setting up of the PACAInvestissement fund to support SMEs early stages

development and of the JEREMIE European Investment fund.

The professionalization of the PACA innovation network by the creation of the PACA

Innovation Academia and a first organisation of the PACA Innovation network to

better respond to SMEs needs

The follow-up of the PACA labs programme on user-driven innovation

The launch of the DAS initiative to identify the main regional innovation areas with

the support of PwC.

The creation of the Regional Innovation Observatory itself


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The PACA Observatory 1

Key success factors

Decision makers involvement & commitment

No monitoring and evaluation without empowerment from decision makers

Evaluation can be touchy , specially when it concerns the innovation support providers…

Monitoring & evaluation practices involve costs that have to be covered (but a public/ private model of funding could be also possible)…

Added value results

A step by step approach showing results and moving forward

… but a long terms perspective

An offer that matches the client need : an observatory is still a services providers

The analysis can be complex but results have to be presented in a « user-friendly » mode…

ICT tools can help !


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The Regional Innovation Observatory

How does it work, what is it for …


Slide 9

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The Observatory « service supply »

4 majors « pillars » that contributes to the Observatory mission


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Index

Innovation

Scoreboard

Studies

SMEs

barometer

Regional

Innovation

Observatory

Impact on the decision making process : definition of priorities

All the works realised by the observatory (Index, Barometer and one-shot studies…) provide grounds

to support the decision making process. In particular, the observatory contributed to :

1.The definition of the RIS3 priorities, the DAS (Strategic Activities Domains), in a two-step approach :

• A survey conducted in 2009 by Technopolis to identify the regional cross-sectorial competences in research and firms → identification of 5 Strategic Specialisation Areas :

• In 2012, PwC took over the analysis with the aim of defining large private-public economic development programs accelerating innovation outputs access to market (still under development with definition of their governance and based on it of the monitoring process)

2.The objectives definition for the innovation service system evolution in order to support SMEs growth

• Targeting high growth companies

• Re-design the services offer


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The Regional Innovation Index


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Updated every 2 years provides a snapshot of the regional innovation situation, and its evolution over time , based on quantitative and qualitative data :

1. Demographic and

macroeconomic data

2. Enterprises’ innovation profile

3. Regional Innovation ecosystem

(innovation services impact,…)

4. Human Capital and Education

5. Investments in R&D

6. Patents

7. International

The regional innovation SMEs barometer : National GP (DATAR)


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The barometer provides a picture of the profile and needs of the regional innovating SMEs,

The objective : segment the innovation support providers clients to design the best innovation support offer for each segment.

It also helps to identify high potential SME and serve the 3S objectives (SME scaling-up) :

Targeting companies

Understand their needs

Segmenting

Design the service offer

Customer satisfaction follow-up

5000 SME

Data base

Diagnosis

tool

Profiling

Partnership

with PACA

Innovation

Monitoring

The regional innovation SMEs barometer : National GP (DATAR)

Methodology :

• Survey conducted in 2009, 2011, and 2013

• Methodology: on line administration combined with phone calls

• Survey sample : regional innovate companies → clients from regional innovation intermediaries + companies which are not “clients” but can be considered as innovative based on several criteria (R&D expenditure, patent activity, turnover growth)

• Size of the sample : in 2011 782 answers for 4781 contacts (16%) → Sample retained for the analysis :

533 questionnaires

5 dimensions investigated :

Segmentation

Profil & origin

Market

Company development

Innovation activities

Innovation support

Regional innovation

SME segmentation


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The barometer 2013 : companies profiles


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1. VSE in full expansion : innovating, young, high growing, focus on HR and strong links with university research

2. High potentiel micro-entreprises : innovating, high growing, young and fast growing, their key success factor is the entrepreneur profile

3. Established SME : often services companies, established, less innovating but with a steady growth

4. Struggling VSE : not investing on innovation, facing major difficulties in keeping their market share

5. SME positioned on traditional sectors, stable, innovating, often large companies subcontractors

Struggling VSE(25%)

SME positioned on traditional sector (17%)

VSM in full expansion (17%)

High potential microenteprises (18%)

Established SME

(23%)

The barometer : the service supply side

Understandneeds:observe

Conceive,prototypeandtesttheoffer

Organisetheofferproduc on

Oroganisetheservicedeiveryontheterritory

Offerquality

SERVICESUPPLYDESIGN

Observetheneeds

Quan ta ve

Qualita ve

Testidea/prototype

Quan ta ve

Qualita ve

Clienttest

Quan ta ve

Qualita ve

Needstest

Quan ta ve

Qualita ve

Mesuresa sfac on

Quan ta f

Qualita f

RegionalInnova onStrategyandPACAInnova onnetwork


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Basic requirements for an Observatory


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• Financial and Human Resources for carrying out surveys and build a data collection system

• Information sources available :

• Regional statistical data (Eurostat, national statistic bureaus…)

• Quantitative et qualitative data on companies (through surveys, balancesheet –based data)

• Stakeholders' data

• Intermediaries' data

• Design the monitoring and evaluation system at the beginning of strategy making process

• From the RIS to the specific programs : setting indicators at programme, project and intermediaries levels, and building a robust data collection system

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Smart Specialisation Strategy and Monitoring & Evaluation

A close relationship …


Slide 19

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3S : Context of the definition of RIS in 2013


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A mid-term external evaluation performed in preparation of the 3S indicated that

PACA had “moved major steps in the definition of a RIS 3 approach” and suggested the

following improvement axes :

Follow-up the prioritisation process introduced by the DAS policy

Better take into consideration the existing links between innovation and internationalisation

Pursue the construction of a robust and continuous monitoring and evaluation system

1

2

3

1. Context of definition of RIS3 in the region

The 3S, two main objectives :

Create added value and new jobs focusing the public intervention on

DAS

Support SMEs growth creating a services offer tailored on their

needs and a innovation “strengthened” ecosystem.

Go

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an

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ring

1

2


2. Strategic objective N°1 : Create added value and new jobs focusing the public intervention on DAS

a. SWOT analysis of the (macro)regional context

- Scientific excellence in the specific DAS niches

- A number of dynamic start-ups on new emerging markets

- Critical Mass in terms of companies, scientific competences, talents, clusters …

- A good attractiveness for inwards investments

- A complete set of financial tools

- Unspecialised economy (29 PRIDES,...)

- Innovation support tools too focused on R&D and not enough on downstream stages of innovation

- A week weight of industry in the regional economy (less that 10%) and few big leaders

- A complex institutional context

- A still weak multidisciplinary approach

- R&D potential to be exploited

- Three times more of start- ups than in France

- Strong ICT sector that could underpin service and social innovation

- A first set of user-driven tools and instruments to support innovation

-Creation of the BPI

- Strong international competition

- Lack of public resources

- Capacity to pursue the entrepreneurial discovery process over time

- Too many intermediaries

W

O T

S


2. Strategic objective N°2 : Support SMEs growth

a. SWOT analysis of the (macro) regional context

- Second French region for new business creation

- Very good positioning in Europe on emerging industries.

- A good resistance to crises

- One of the most attractive region in France for talents

- Positive cluster dynamics

- A rich offer of innovation support services

- Strong relationship between companies and research

- Strategic position in the Mediterranean Sea

- Over-representation of SMEs VSEs

- A large number of profit and non profit traditional services companies

- Still low export rate

- Poor new business survival rate after 3 years

- Poor private investments in innovation

- High concentration of financial support in R&D phases at the expense of downstream phases

- Infrastructures : Broad band, transports, …

- A high business density which may foster the regional economy transition towards the markets of the future and the creation of the mid-caps companies

- Regional Mid-cap companies are catching up with the national average (employees, and turnover)

- A quite complete range of financial instruments available

- The creation of the regional innovation and internationalisation Agency

- A fragmented innovation support services offers

- A cultural reluctance to open SMEs companies capital to third parties capital

- An increasing global competition

- Lack of competences in emerging markets (high specialized and technical expertise)

- Capacity to bring research and innovation to market

W

O T

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2. Overview of the main objectives of the strategy

Which are the regional Strategic Specialisation Areas - DAS ?

• Energy transition - Energy efficiency

• Health – Agrofood

• Risk-Safety-Security

• Sustainable and smart mobility

• Tourism et creative industries

How were DAS identified ?

A process started in 2009 and corroborated by :

• Critical mass : companies, talents, research programmes, clusters, infrastructures, …

• “Soft” resources : education organisation, Human Sciences labs, …

• Social and environmental challenges presents in the region…

• The involvement of key regional companies and innovation actors

Create added value and new jobs focusing the public

intervention on DAS 1





Scanning all the regional R&D projects to identify the potential metaprojects

Meta projects

Innovation programme positioned on a « market of the future » on which PACA has a competitive advantage in terms of :

- R&D projects - Critical mass (SMEs and large companies) -Market leaders

1 or 2 for DAS

Action 3 Identified emerging markets analysis and strategic positioning choice (critical

mass, actors, investor, benchmark, impact)

Which Business model for a global market place

Support export and attractiveness setting

up demonstrators

How to industrialise the R&D solutions to create new jobs ?

How to attract talents (training and education, …)

1

2

3

- Choose thee public and private tools to support the policy

- Network key actors (public and private)

- Design the implementation of the project (cartography, recruitment, project management,…)



Focus on specialisation areas expected to bring the highest value in a 5year-time period

Underpin Start-ups and SMEs growth and specifically of those positioned on emerging markets

Support the reindustrialisation of the regional economy

Enhance the region attractiveness

Develop international cooperation at national and international level

Develop an open innovation ecosystem (cross sectorial cooperation, private public partnerships, …)

Support a experience-driven approaches and innovation “windows”

Promote a social and environment driven innovation

Ensure a continuous entrepreneurial discovery process involving all the regional key actors




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The Observatory and the evolution of monitoring & evaluation practices


Slide 27

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3S and the observatory evolution

• Monitoring

- Creation of a CRM in order to track SMEs needs and evolution over time

- 3S scoreboard

- Projects implementation - …

• Evaluation

- impact assessment (through counterfactual analysis)

- Intermediaries’ performance evaluation - …

• Perspective

- New trends and benchmark

- New tools and ICT


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3S Implementation

Evaluation Perspective

Monitoring

Documents

Monitoring and assessment tools · The PACA Region in a nutshell • 3rd region in FR for inhabitants and 17th in Europe • 3rd region in FR and 15th in Europe for GDP • 82% the