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Science, Technology and Society November 2000. Technological Change and the challenges for Regional Development: building social capital in LFR’s Pedro Conceição, Manuel Heitor and Robert Wilson. CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+ - PowerPoint PPT Presentation
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Science, Technology and Society November 2000
CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+
Instituto Superior Técnico, Technical University of Lisbon
http://in3.dem.ist.utl.pt
CENTER FOR INNOVATION, TECHNOLOGY AND POLICY RESEARCH, IN+
Instituto Superior Técnico, Technical University of Lisbon
http://in3.dem.ist.utl.pt
Technological Changeand
the challenges for Regional Development:building social capital in LFR’s
Pedro Conceição, Manuel Heitor and Robert Wilson
Technological Changeand
the challenges for Regional Development:building social capital in LFR’s
Pedro Conceição, Manuel Heitor and Robert Wilson
A fragmented regional innovation system: an institutionally blocked regional economy
RegionalGovernment
BusinessServices
SMEs
SMEs
Chamber ofCommerce
SMEs
SMEs
Largefirms
SMEs
Universities
TechnologyCenters
SectoralAssociations
SMEsSMEs
SMEs
SMEs
Largefirms
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
TechnologyConsultants
SMEs
SMEs
Largefirms
SMEs
SMEs
Regional economy
A learning region: An efficient regional innovation system
Regionalgovernment
Businessservices &tech. con-sultants
SMEs SMEs
Businessintermediaries:
Cham. of Comm.;Local Agencies
BICs
SMEs
Large firms;Tech. Centers;Sect. Associa-
tions
SMEs
SMEs
SMEs
Cluster
Science base:Universities;Public R&D;Laboratories
TechnologyCenters
SectoralAssociations
SMEs
SMEs
SMEs
SMEs
Largefirms
SMEsSMEs
SMEsValorisation of R&D and Tech. Transfer Office
SMEs
Global econom
y
SMEs
SMEs
SMEs
SMEs
SMEsSMEs
SMEs
SMEs
SMEsSMEs
SMEs SMEs
SMEs
SMEs
Op
en g
ate:
In
tern
atio
nal
tec
hn
olog
y tr
ansf
er
net
wor
ks
Op
en gate: In
ternation
al value ch
ains
Open gate: International business consultants & specialized business services
Open gate: International R&D/academic excellence networks
SMEs
SMEs
Regionaleconomy
QUESTION
Which trends for technology-based development and cooperation, in a way to contribute for regional policies that stimulate localised learning, innovation and endogeneous development within LFR’s?
Which trends for technology-based development and cooperation, in a way to contribute for regional policies that stimulate localised learning, innovation and endogeneous development within LFR’s?
Our Argument...
The need for institutional renewal, …promoting diversity with institutional integrity at the supply side of technology,
(Conceicão & Heitor, 1999) The need for public investment
The scope:... the globalized “learning society”!The scope:... the globalized “learning society”!Knowledge Institutions Learning Organisations
Intellectual Property Learning Networks
Knowledge Institutions Learning Organisations
Intellectual Property Learning Networks
BUT, understanding the role of social capital (Conceicão, Gibson, Heitor & Sirilli, 2000), to stimulate the inclusive development !
BUT, understanding the role of social capital (Conceicão, Gibson, Heitor & Sirilli, 2000), to stimulate the inclusive development !
1. Technological change: accelerating
2. The “new” economy: “the big boom”
3. Social Dynamics: complexity and diversity
4. “Governance”: a new model!
The CONTEXT
OCDE: “FUTURES”, Hannover 2000
EC: “IPTS - Futures Report”, 2000
Technological Change:materials, IPTS(1999)
STEELS
CAST IRON
IRON
COOPER
ALLOYSTEELS
GLASSY METALS
AL-LITHIUM ALLOYS
DUAL PHASE STEELS
MICROALLOYED STEELS
BRONZE
SKIN FIBRE GUMS
RUBBER
LIGHTALLOYS
SUPER ALLOYS
TITANIUMZINCONIUMETC
NEW SUPER ALLOYSDEVELOPMENT SLOWMOSTLY QUALITYCONTROL ANDPROCESSING
CONDUCTINGPOLYMERS
HIGH TEMPERATUREPOLYMERS
HIGH MODULUSPOLYMERSBAKELITE
NYLON
WOOD
PAPER
STONEFLINT
POTTERT
GLASS
CEMENT
REFRACTORIES
PORTLANDCEMENT FUSED
SILICA CERMETS
EPOXIES
POLYESTERS
COMPOSITES
POLYMERS
METALS
CERAMICS
POLYMERS
COMPOSITES
CERAMICS
METALS
ALLOYS
10 000 BC 5000 BC 0 1000 1500 1800 1900 1940 1960 1980 1990 2000 2010 2020GOLD
CERAMIC COMPOSITES
COMPOSITESMETAL-MATRIX
SURFACEENGINEERING
RE
LA
TIV
E I
MP
OR
TA
NC
E
SUPERCONDUCTORSTOUGH ENGINEERING
CERAMICS
KEVLAR
BRICKS (with STRAW)
IVORY
10000 BC5000 BC
0 1000 1500 1800 1900 1940 1960 1980 1990 2000 2010 2020
Technological Change:
telecommunications
Technological Change:
perspectives The Convergence: telecommunications and computers ...
The QUESTION : scope and scale
PRODUCTS
PRODUCT
•more technologies to produce each product
•more products produced from a given technology
Source: von Tunzelmann (1999))
TECHNOLOGIES
PROCESSES
TECHNOLOGY
PROCESSES
New reactors
Nuclear fusion
New energy biomassPhotovoltaic materials
Fuel cells
Superconductors
Supervision of energy processes
Robotics
Security systems
energy
Batteries
Pacemakers
Artificial Heart
Recombin. DNA
New drugs
Enzymatic Synthesis
Membranes
Biocompatible materials
Instrumental analysis of dna sequences
biotechnologies
Power lasersBio-leaching
Biological ore processing
New alloys
Ceramics and composits
Computer based design of new materials
materials
Photovoltaic applications
Biosensors
Biochips
Semiconductors
Superconductors
Telematics
Automation
Computers
information technologies
energybiotechnologiesmaterialsinformation technologies
Emerging interactions...
Source: BIPE
fromto
New technologies
Existingtechnologies
2000 2010
Edudation / trainingfor last 10 years
2000 2010
Education / training acquired for more than 10 years
2010: 80% of technologies with less than 10 years, while 80% of working force has acquired training with more than 10 years
The knowledge gap (Scope: EUROPEAN REGIONS)The knowledge gap
(Scope: EUROPEAN REGIONS)
The importance of Technology in corporate development
Case study: Innovation in Italy (Evangelista & Sirilli, 1997)
The convergence of sectors is emerging, with the growing importance of technology in corporate development
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
93-95 96-98
Not relevant
Little relevant
Very relevant
The structure of the “new” economy
Agriculture
Indústry
Services
Agriculture
Indústry
Services
Industrial era
Knowledgeera I- Recession
II- Growth
Technology replaces employment
Economy without employment
Demand Deficit
Technology createsnew industries and opportunities
Entrepreneurial economy
Value creation
THE ISSUE …1
The evidence:The evidence:
• “The major source of economic growth in developed countries has been science-based technology”, Kuznets (1966)
• “The major source of economic growth in developed countries has been science-based technology”, Kuznets (1966)
• “The explosion in knowledge creation is concentrated in a few regions, and led to similarly concentrated distribution of income”, World Bank (1999)
• “The explosion in knowledge creation is concentrated in a few regions, and led to similarly concentrated distribution of income”, World Bank (1999)
• “The most daunting problem is that of spiritual inequality”, Fogel (1999)• “The most daunting problem is that of spiritual inequality”, Fogel (1999)
Regional diversity in Western Europe
Source: Sixth Periodic Report DG XVI, 1998
Case studies - Portugal
• North & GalizaAlexandra Campino, Danilo Rubini and Jorge Monteiro
• AlgarvePaulo Silva and Pedro B. Almeida
•LisbonAngela Canas, Rita Marreiros, Paulo Ribeiro and Ana Galvão
• North & GalizaAlexandra Campino, Danilo Rubini and Jorge Monteiro
• AlgarvePaulo Silva and Pedro B. Almeida
•LisbonAngela Canas, Rita Marreiros, Paulo Ribeiro and Ana Galvão
The context: M.Sc. Engineering Policy & Management of TechnologyThe context: M.Sc. Engineering Policy & Management of Technology
Case 1: North, Galiza North region (NUTII):
Area: 21 278 Km2 = 23,2% Portugal
Divided in 8 subregions (NUTIII);
Economic heterogeneity
Population in North
34413503
35453594
3687
3300
3400
3500
3600
3700
3800
1984 1994 1997 2000* 2005*
1000
inh
ab.
Minho-Lima7% Cávado
11%
Ave13%
Grande Porto34%
Tâmega15%
Entre-Douro-e-Vouga
7%
Douro7%
Alto-Trás-os-Montes
6%
Grande Porto weights 34% of North’s population
3,6 Million inhab. = 36% of portuguese population;3,6 Million inhab. = 36% of portuguese population;
Case 1: North, Galiza Galicia region (NUTII):
Area: 29 575 Km2 = 5.8% of Spain
Divided in 4 sub regions
2,7 Million inhab. = 7% of spanish population;
Cultural and social links with North region
Case 1: North, Galiza
Employment – Share Analysis (I)
1986 1994
Agriculture 24% 14%
Industry 33% 32%
Textiles &Leather 8% 8%
Services 43% 54%
Market Services 26% 33%
1986 1994
Agriculture 26% 15%
Industry 42% 44%
Textiles &Leather 17% 18%
Services 32% 41%
Market Services 20% 25%
Portugal North
- Relative large economic importance of Industry in the North;
- Textiles and Leather represents almost half of North’s economic structure;
- Increasing importance of Services for Portugal
Case 1: North, Galiza
Employment – Share Analysis (II)
1986 1994
Agriculture 41% 26%
Industry 20% 24%
Textiles &Leather 1% 1%
Services 39% 50%
Market Services 27% 32%
1986 1994
Agriculture 26% 15%
Industry 42% 44%
Textiles &Leather 17% 18%
Services 32% 41%
Market Services 20% 25%
Galicia North
- Industry’s share in Economic Structure of Galicia is almost half of North’s one;
- Services became the major employment sector for Galicia in 1994;
- Agriculture’s share includes fishery, which is a major asset to Galicia’s economy;
Case 1: North, Galiza
Productivity (I) (GVA/employee)
1986 1994
Agriculture 2.6 4.7
Industry 9.2 16.9
Textiles &Leather 7.9 11.5
Services 10.3 18.8
Market Services 13.1 22.4
1986 1994
Agriculture 1.7 3.1
Industry 8.1 14.8
Textiles &Leather 7.9 11.8
Services 9.7 18.6
Market Services 12.2 22.4
Portugal North
- North presents a lower productivity ratio for industry Labour Intensive consequence?
- No difference in Services Similar services firms?
1000ECU/employee
Case 1: North, Galiza
Productivity (II) (GVA/employee)
1986 1994
Agriculture 4.0 6.7
Industry 23.7 33.0
Textiles &Leather 15.5 24.3
Services 19.1 27.4
Market Services 21.8 31.9
Galicia North1986 1994
Agriculture 1.7 3.1
Industry 8.1 14.8
Textiles &Leather 7.9 11.8
Services 9.7 18.6
Market Services 12.2 22.4
- North: LOW productivity!!
- The difference in Services is lower than that observed in Industry;
1000ECU/employee
R&D – Regional Expenses, 1997
0
5.000
10.000
15.000
20.000
25.000
Mil
lio
n p
te 1
995
(c.p
.)
Norte Centro Lisboa eVale doTejo
Alentejo Algarve Açores Madeira
Região
R&D - Regional expenses, 1997
Universities
State
Private
Source: INE; Ministry of Science and Technology
Case 2: Algarve in PTCase 2: Algarve in PT
Shift-Share Analysis – GAV
Source: “The Algarve: Fate and Will” by Paulo Silva & Pedro Borges de Almeida
Growth of local sectors compared to national sectors 1990-1995 (Base 100 = Portugal) - GVA
40
60
80
100
120
140
160
180
1- Agricultural,forestry and
fisheryproducts
2-Manufactured
products
3- Building andconstruction
4- Recovery,repair, trade,lodging and
cateringservices
5- Transportand
communicationservices
6- Services ofcredit andinsuranceinstitutions
7- Othermarket
services
8- Non-marketservices
SectorsAlgarve Madeira
Case 2: Algarve vs MadeiraCase 2: Algarve vs Madeira
Sample Conclusions
1. The R&D regional effort of the Algarve is modest, but it is also not related with the main economic activities of the region.
2. Shift Share Analysis shows that Algarve was virtually unable, between 90 and 95, to grow due to inclusive factors, but it was not even capable of absorbing the growth induced by National development.
Sample Recommendations
To develop a regional development strategy based on a culture of excelence in all elements that are connected with Tourism & Leisure value chain:
- Natural and urban environment;
- critical infrastructures;
This requires the development of new competencies in the areas above, but also of the learning capabilities necessary to create new value from the Tourism & Leisure cluster.
Case 2: AlgarveCase 2: Algarve
National Growth Effect
Sector Mix Effect
Competitive Position Effect
0,52 0,58 177 153 -14% 111 -147 11
1,18 0,69 174 189 9% 109 55 -149
0,86 0,81 1 032 1 289 25% 649 -232 -160
Chemical products 1,41 1,55 125 171 37% 79 -42 8
0,76 0,89 185 352 90% 116 13 38
1,15 1,13 2 695 4 639 72% 1 696 565 -318
Services to companies 1,59 1,48 247 612 148% 155 286 -76Public authorities non-mercantile services 1,27 1,16 315 511 62% 198 70 -73Education and research services 0,82 0,89 140 387 176% 88 149 11Health and veterinary services 1 1,06 135 267 98% 85 44 3
TOTAL - - 4 262 6 621 55% 2 682 293 -616
SECTORS
Energy products and water
Industrial products – Total
Construction and public works
Services - Total
19941984
Agriculture, forestry and fishing
SHIFTSHARE ANALYSIS FOR GVA (109 PTE)
1984 1994% Change 1984-1994
Evolution components
LOCATION QUOTIENT FOR GVA
Case Study 3: Lisbon and Tagus Valley Region
•Specialization in: Services
Technology based Industry
Formal Knowledge
* Highest growth in
GVA
* Highest growth in
GVA
*
*
Case Study 3: Within Lisbon Metropolitan Area
* Except the city of Lisbon
Location Quotient Coefficient of Lisbon LMA North* LMA South Localization
1991 1997 1991 1997 1991 1997 1991 1997Agriculture and others 0,50 0,41 0,81 0,64 3,03 3,41 0,30 0,37Total Industry 0,49 0,39 1,56 1,49 1,62 1,65 0,15 0,17
Food industry 0,45 0,30 1,84 1,80 1,21 1,25 0,26 0,26Textile industry 0,44 0,33 1,50 1,34 1,89 2,12 0,26 0,25Others industries 0,65 0,66 1,50 1,37 1,19 1,16 0,15 0,11Chemical industry 0,58 0,39 1,59 1,75 1,24 1,11 0,19 0,25Machinery and tools 0,38 0,25 1,51 1,41 2,06 2,19 0,29 0,29
Construction 0,82 0,81 1,20 1,16 1,22 1,19 0,06 0,03Total Services 1,26 1,20 0,73 0,85 0,67 0,76 0,26 0,23
Distributive services 1,39 1,41 0,48 0,60 0,71 0,71 0,24 0,26Wholesale trade 1,18 0,88 0,95 1,24 0,51 0,82 0,13 0,07Retail trade 0,96 0,94 1,04 1,06 1,03 1,06 0,02 0,04Rest. and lodging services 1,09 1,14 0,91 0,87 0,86 0,90 0,08 0,13Telec. and postal services 1,65 1,50 0,24 0,57 0,30 0,53 0,38 0,30Producer services 1,58 1,50 0,34 0,59 0,34 0,49 0,34 0,30Education and health 1,10 1,05 0,87 0,93 0,91 1,01 0,09 0,09Others services 1,22 1,36 0,82 0,69 0,62 0,64 0,15 0,24
Sectors
LisbonSpecialisation in services
SurroundingsSpecialisation in industry
Concentration
Telec. and producer services - highly qualified workers
Case Study 3: Lisbon and Tagus Valley Region
Services (especially to firms and public services) as decisive to the region’s economy
High Knowledge concentration (high technology firms and formal knowledge: education and R&D)
Sample characteristics
Promote social capital, taking advantage of the already existing characteristics - services and high knowledge concentration - in order to promote value creation
Policy issues
Internet clustering ?
THE ISSUE …2
A specific issue: Regional DIVERSITYA specific issue: Regional DIVERSITY•“With some notable exceptions, the regional developmment debate in Europe has been dominated by exogeneous models to such an extent that development tends to be conceived as something that is introduced to, or visited upon, less favoured regions, LFRs, from external doors…
• …this kind of regional policy did little or nothing to stimulate localised learning, innovation and indigeneous development within LFRs”,
Henderson & Morgan (1999)
•“With some notable exceptions, the regional developmment debate in Europe has been dominated by exogeneous models to such an extent that development tends to be conceived as something that is introduced to, or visited upon, less favoured regions, LFRs, from external doors…
• …this kind of regional policy did little or nothing to stimulate localised learning, innovation and indigeneous development within LFRs”,
Henderson & Morgan (1999)
Innovation in EUsource: Community Innovation Survey, OCT-PT
IrelandAustria
Germany
Netherlands
UK
Sweden
Norway
France
Luxembourg
Finland
Belgium
Portugal
0%
20%
40%
60%
80%
100%
0% 20% 40% 60% 80% 100%
Share of Innovative Firms in Manufacturing
Sh
are
of
Inn
ova
tive
Fir
ms
in S
ervi
ces
Innovation in EUExpenditure by Manufacturing Firms on Innovation
Ireland
GermanyAustria
NetherlandsUK
Sweden
NorwayFrance
Finland
BelgiumPortugal
0%
20%
40%
60%
80%
0 0,02 0,04 0,06 0,08
Expenditure in Innovation (Share of Turnover)
Sh
are
of
Inn
ova
tive
Fir
ms
Innovation in PortugalProfiles of Hampering Factors
0%
10%
20%
30%
40%
50%
60%
Lack o
f custo
mers
responsiv
eness
Regula
tions a
nd
sta
ndard
s
Lack o
f in
form
atio
n o
n
mark
ets
Hig
h e
conom
ic r
isks
Lack o
f in
form
atio
n o
n
technolo
gy
Lack o
f appro
priate
sourc
es o
f fin
ance
Hig
h in
novatio
n c
osts
Org
aniz
atio
nal r
igid
ities
Lack o
f qualif
ied
pers
onnel
Sh
are
of
Fir
ms w
ith
Seri
ou
sly
Dela
yed
Pro
jects
Euro Average Portugal
• The need to consider technology-based development and cooperation in a broader context, leading to innovation:
–Promoting value, by exploiting change
–Understanding institutional development
–Integrating systems of competence building and social cohesion
The ISSUE ...concluding
OUR GOAL: to discuss the emergence of an agenda on regional policy
Regional Innovation Strategies...
Which specific driving forces? Which specific driving forces? 1. Productivity
2. The knowledge-based industries
3. Resouces: Scale vs intensity
4. Industrial structure
5. Institutional development:
market regulation; employment protection
6. The Sustainable development
1. Productivity
2. The knowledge-based industries
3. Resouces: Scale vs intensity
4. Industrial structure
5. Institutional development:
market regulation; employment protection
6. The Sustainable development
BUT, the regional dimension:...Social capital for the inclusive developmentBUT, the regional dimension:...Social capital for the inclusive development
The regional dimension:technology and innovation gap
The regional dimension:technology and innovation gap
1. Input: HUMAN AND MATERIAL RESOURCES
2. output: SCIENTIFIC AND TECHNOLOGICAL CAPACITIES
3. determining factors :• international cooperation
• sme`s: support services
networks
• FDI: integration in local economies
• transports, communications, energy infrastructures
1. Input: HUMAN AND MATERIAL RESOURCES
2. output: SCIENTIFIC AND TECHNOLOGICAL CAPACITIES
3. determining factors :• international cooperation
• sme`s: support services
networks
• FDI: integration in local economies
• transports, communications, energy infrastructures
… BUT, ALSO, INSTITUTIONAL FACTORS… BUT, ALSO, INSTITUTIONAL FACTORS
The regional dimension:technology and innovation gap …cont.
Most development programmes stand on their ability to build “social capital”: a relational infrastructure for collective action
Most development programmes stand on their ability to build “social capital”: a relational infrastructure for collective action
This requires a shift in development studies:
• from state-led or market-driven processes, regardless time, space or milieu
• to institutional perspective, looking at the quality of institutional networks
This requires a shift in development studies:
• from state-led or market-driven processes, regardless time, space or milieu
• to institutional perspective, looking at the quality of institutional networks
The regional dimension:technology and innovation gap …cont.
INSTITUTIONAL NETWORKS to mediate:
•mediate information exchange
• knowledge creation
•capacity for collective action
•potential for interactive learning
•efficacy of voice mechanisms
Henderson & Morgan (1999)
INSTITUTIONAL NETWORKS to mediate:
•mediate information exchange
• knowledge creation
•capacity for collective action
•potential for interactive learning
•efficacy of voice mechanisms
Henderson & Morgan (1999)
Social capital for inclusive development
0 10 20 30 40 50 60 70
Turkey
Mexico
Portugal
France
Italy
Germany
Belgium
Austr ia
Spain
Korea
Ireland
Japan
Iceland
Switzerland
UK
US
Netherlands
Australia
Canada
Denmark
Sweden
Finland
Norway
A Measure of Trust
0 10 20 30 40 50 60 70
Turkey
Mexico
Portugal
France
Italy
Germany
Belgium
Austr ia
Spain
Korea
Ireland
Japan
Iceland
Switzerland
UK
US
Netherlands
Australia
Canada
Denmark
Sweden
Finland
Norway
A Measure of Trust
OECD(2000)OECD(2000)
Policy Issues: Regional Innovation StrategiesLandabaso et al. (1999)
– Internal coherence of the regional innovation system by connecting its different key elements: R&TDI supply with well identified Demand and business needs, from SMEs in particular.
– Increase the amount and, more importantly the quality of innovation public spending through innovation projects (bigger and better spending in this field through regional policy).
– Rationalise the regional innovation support system by raising awareness, eliminating duplications, filling gaps and promoting synergies.
Successful stories: The Regional Technology Plans
Wales (UK), Limburg (Netherlands), Lorraine (France) and Leipzig-Halle-Dessau (Germany), Central Macedonia (Greece), Castilla Y Leon (Spain) and Abruzzo (Italy).
Successful stories: The Regional Technology Plans
Wales (UK), Limburg (Netherlands), Lorraine (France) and Leipzig-Halle-Dessau (Germany), Central Macedonia (Greece), Castilla Y Leon (Spain) and Abruzzo (Italy).
RIS generated ideas and practical results: Galicia examples
• Compilation and diffusion of strategic information on the innovation field to Galician SMEs through a Technological Observatory
• Campaign of visits by innovation management experts to local SMEs and publication of an ‘Innovation Guide’ for businesses
• Galician Innovation award for successful business introduction of new products, processes, management techniques, etc.
• Creation of a new fund to support high risk innovative projects
• Sponsor training programmes in new professions linked to innovation support services (financial analysts, technological auditors, technology rating…)
• Creation of the Galician network of R&TDI interface organisations
• Pilot design of an integral mechanism for supporting the process of innovation in 12 companies (9 SMEs).
Discussion: EU policy challengesSoete (2000)
-The current new growth regime associated with a knowledge driven society raises
major institutional challenges to EU and individual member countries
-Proposal of European “new deal” version: “cognitive Keynesianism” based on: a) recognition of the importance of public and private investment in education, learning and knowledge more generally for growth and equality (OECD target figures)b) “activating” education and developing incentives for such investments c) adherence to “open” features of the science and knowledge system enhancing transmission and knowledge diffusion aspects, reducing the blocking aspects of IPRs d) give political priority to importance of large social change: so far the knowledge driven society has been strong on economy and poor on society
Perspectives for “change”Perspectives for “change”
Building the conceptual framework
•The notion of localised technological change:
•The science base:
• a joint process of production, learning and communication
• a fully endogenous, with strong interdependence between specialisation and diversification
• important, but limited role of demand: learning capability is critical!
• based on mix of generic and tacit knowledge
” …the aim of policy should be to create a broad and productive science base, closely linked to higher education…”, Pavitt (1998)
Systems of Innovation and Competence Building!
Conceicão, Heitor and Lundvall (2000)
Systems of Innovation and Competence Building!
Conceicão, Heitor and Lundvall (2000)
•The role of Social Capital…•The role of Social Capital…
… debate
…the challenges for Regional Development:building social capital in LFR’s
opportunities for an Agenda on Regional Policy!
…the challenges for Regional Development:building social capital in LFR’s
opportunities for an Agenda on Regional Policy!
… debate
1. Productivity
D ecom position o f G D P per H our W orked in to E ffects o f W ork ing H ours, Labor Force P artic ipation and G D P P er C ap ita , 1997
G D P p er h o u r E ffec t o f G D P p er p erso n E ffec t o f E ffec t o f labor fo rce E ffec t o f w ork ing age T o ta l e ffec t G D P p er p erso nw o rked as a % w ork ing em p lo yed as a % unem ploy- as a % o f the w ork ing popu la tion as a % of labor fo rce as a %
of the O E C D A verage hours o f the O E C D A verage m ent age popu la tion o f the to ta l popu la tion partic ipa tion o f the O E C D A verage
(1 ) (2 ) (3 )= (1 )+ (2 ) (4 ) (5 ) (6 ) (7 )= (4 )+ (5 )+ (6 ) (8 )= (3 )+ (7 )
A us tra lia 96 0 96 -1 2 0 1 97A ustria 102 -4 98 3 -2 1 2 100B e lg ium 128 -5 123 -3 -19 -1 -22 101C anada 97 2 98 -2 2 2 2 100D enm ark 92 0 92 1 9 1 11 103F in land 93 0 94 -7 2 0 -5 88F rance 123 -9 113 -6 -9 -2 -17 97G erm any 105 -5 100 -3 -4 2 -4 96G reece 75 -4 71 -2 -11 1 -12 58Ire land 108 5 113 -4 -12 -3 -18 95Ita ly 106 -11 96 -5 -1 2 -5 91Japan 82 10 92 4 6 4 14 106T he N etherlands 121 -26 95 2 -4 2 0 96N ew Z ea land 69 8 77 1 3 -1 2 79N orw ay 126 -17 109 4 12 -4 12 122P ortuga l 56 2 58 0 1 1 2 60S pa in 84 13 97 -14 -13 2 -26 71S w eden 93 -3 89 -3 6 -4 -1 88S w itze rland 94 0 94 3 12 1 17 111T urkey 36 2 38 0 -8 -1 -9 29U nited K ingdom 100 -9 91 0 3 -2 0 92U nited S ta tes 120 -1 118 3 9 -2 10 128E U -14 103 -5 98 -4 -4 0 -8 90 S o urce: A rk and M cG uckin (1 9 9 9 ).
2. Knowledge-based industries
UK*
Belgium
Portugal**
Greece*
Sweden***
NL*
AustriaJapan
Norway
Canada
Denmark
Spain***
Denmark
Mexico
ItalyUS
France
Korea
Germany
0
2
4
6
8
10
12
14
0 10 20 30 40 50 60
Share in Business Sector Value Added of Knowledge Based Industries (share year 1996 except: *1995;**1993; ***1994)
Av
era
ge
An
nu
al R
ea
l Va
lue
Ad
de
d G
row
th o
f K
no
wle
dg
e B
as
ed
Ind
us
trie
s (
19
85
-sh
are
ye
ar)
OECD(2000)OECD(2000)
Share in business sector value added in knowledge business industries (share year 1996)Share in business sector value added in knowledge business industries (share year 1996)Av
era
ge
an
nu
al
rea
l v
alu
e a
dd
ed
gro
wth
of
kn
ow
led
ge
ba
se
d
ind
us
trie
s (
19
85
sh
are
ye
ar)
A
ve
rag
e a
nn
ua
l re
al
va
lue
ad
de
d g
row
th o
f k
no
wle
dg
e b
as
ed
in
du
str
ies
(1
98
5 s
ha
re y
ea
r)
0
0,025
0,05
0,075
0,1
0 0,125 0,25 0,375 0,5
Pub
lic
R&
D E
xpen
ditu
res
per
capi
ta
Private R&D Expenditures per capita
Canada
DenmarkFinland
France
Germany
Ireland
Japan
Netherlands
Norway
PortugalSpain
Sweden
UK
US
Belgium
Canada
Czech Rep
Denmark Finland
France
Germany
Hungary
Ireland
Japan
Korea
Mexico
Netherlands
New Zealand
Norway
Poland
Portugal
SpainSweden
Turkey
UK
US
3. Resources: Scale vs IntensityPublic vs private R&D expendituresPublic vs private R&D expenditures
P97
P95
P81
ESIR
SE
JP
USA
FR
D
UK
3. Resources: Scale vs Intensity
R&D Expenditure (OECD)
Sweden
Finland Japan
France
Germanythe Netherlands
Denmark
UK
US
Belgium
Austria
Ireland
Italy
SpainPortugal
Greece
0
0,005
0,01
0,015
0,02
0,025
0,03
0,035
0,04
100 1000 10000 100000 1000000
Scale- Total Expenditure in R&D ($PPP; logarithmic scale)
Inte
nsi
ty-
Sh
are
of
GD
P s
pen
t o
n R
&D
44. THE INDUSTRIAL STRUCTURE. THE INDUSTRIAL STRUCTURE
0
5
10
15
20
25
30
35
1983 1987 1991 1995
YEARFood, beverages & tobaccoTextiles, apparel & leatherWood products & furniturePaper, paper products & printingChemical productsNon-metallic mineral productsBasic metal industriesFabricated metal products
Other manufacturing, nec
EU-13
0
5
10
15
20
25
30
35
40
1983 1987 1991 1995YEAR
Portugal
5. Industrial structure: Dynamics
0,06
0,07
0,08
0,09
0,1
0,11
0,12
0,13
0,14
0,15
0,16
0,17
0,18
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992
Australia
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Greece
Italy
Japan
Korea
Mexico
Netherlands
New Zealand
Norway
Portugal
Spain
Sweden
UK
USA
6. Institutional DevelopmentMarket Regulation and Employment Protection
Nicoletti, Scarpetta & Boylaud; OECD (2000)