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EU Structural Funds represent by far the main source of funding for innovation in general and for e-services in particular in the lagging regions of Europe classified into the “Convergence” objective. We explore for the first time the amount of resources dedicated to public e-Services and Information Society by elaborating European Commission data on programmed resources for the 2007-13 period. Our analysis highlighted a strong heterogeneity in the level of commitment towards e-services development both between and within countries. Such heterogeneity depends not only upon the total amount of resources available, which is connected to the degree of development of the various territories, but also upon different regional strategies.
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Luigi Reggi Department of Economics, Society and Politics, Urbino University and
DG EU Regional Policy, Ministry of Economic Development, Italy
Sergio Scicchitano Department of Economics and Law, Sapienza University of Rome and
DG EU Regional Policy, Ministry of Economic Development, Italy
Financing e-services in Europe: a regional perspective
itAIS2011 Conference Rome, Italy
Agenda
• Relevant literature and research objectives • EU Regional Policy and Information Society • Empirical method • Results • Discussion and conclusions
Regional policies for innovation • Growing regional percentage of public
expenditure for Research and Innovation in most OECD countries, especially in those countries where regional governments have greater autonomy
RELEVANT LITERATURE and RESEARCH OBJECTIVES
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Source: Authors’ elabora=on on OECD (2011), Regional Development Policies in OECD Countries
Regional Innovation Systems • The concept of RIS introduced since the early ’90s as
an extension of the concept of National Innovation System (NIS) (Cooke, P. 1992, Cooke and Morgan 1998, Asheim and Isaksen, 1997)
• Three different types of RISs have been identified (Asheim and Gertler 2004). – The territorially embedded regional innovation
systems (TERIS), where firms operate without any strong interaction with knowledge organizations.
– The regionally networked innovation system (RNeIS), where firms and organizations are still implanted in a specific region and characterized by localized, interactive learning.
– The regionalized national innovation system (RNaIS) where the innovation activity takes place mostly in cooperation with actors outside the region at a both national and international level.
RELEVANT LITERATURE and RESEARCH OBJECTIVES
Research objective
• To explore the amount of public resources dedicated to ICT and e-services and the strategies that European public agencies are pursuing when allocating funding to local policy priorities
RELEVANT LITERATURE and RESEARCH OBJECTIVES
Why Regional Policy? (1/2)
• Common EU policy – all EU 27 Countries are
involved – full comparability: same rules
and regulations
REGIONAL POLICY
• Multilevel governance Regional and/or National agencies are Managing Authorities of Operational Programmes
• Cohesion policy: aims at reducing regional dispari=es • Second item of EU budget: 347 billion Euros for 2007-‐13 period
• It contributes to the Digital Agenda of EU2020 strategy
Why Regional Policy? (2/2)
REGIONAL POLICY
“In the 2007-‐2013 planning period the share of Structural Funds of the European Union allocated to Research and Innova.on (the “Lisbon Agenda”) received the largest increase, in absolute and relaFve terms. It is no exaggeraFon to claim that, for many countries, the en.re Lisbon Agenda rests on Structural Funds.” (Bonaccorsi A., 2010, Towards beMer use of condi=onality in policies for research and innova=on under Structural Funds: The intelligent policy challenge, working paper underlying Barca Report “An agenda for the reformed Cohesion Policy.)
• Data source: official dataset on EU Structural Funds programmed resources for the period 2007-13 provided by the European Commission – DG Regional Policy
• It includes data on the amount of financial resources programmed by 434 Operational Programmes (OP)
Data source
EMPIRICAL METHOD
Programmed resources at NUTS2 level
• a matching with the Eurostat database of EU Regions (NUTS2 level) has been performed in order to estimate the programmed amount of resources at regional level.
• total amount of national and multiregional Programmes has been equally assigned to all regions directly involved in each Programme)
Total regional resources =
resources allocated by the regional Programmes +
share of national or multiregional Programmes that have an impact on that specific region.
EMPIRICAL METHOD
Identifying resources dedicated to e-services and information society
• How to calculate the contribution of structural Funds to each priority/sector?
• COUNCIL REGULATION (EC) No 1083/2006 general: 86 categories of expenditure
– 6 are dedicated to the information Society and 1 to the E-services
EMPIRICAL METHOD
RESULTS
Financial resources for Information Society by category of expenditure
10 Telephone infrastructures (including broadband networks) 2,257,722,464 15% 11 + 12 Informa=on and communica=on technologies (including TEN) 4,121,115,554 27% 13 Services and applica>ons for ci>zens (e-‐health, e-‐
government, e-‐learning, e-‐inclusion, etc.) 5,225,072,351 34%
14 Services and applica=ons for SMEs (e-‐commerce, educa=on and training, networking, etc.)
2,144,358,160 14%
15 Other measures for improving access to and efficient use of ICT by SMEs
1,537,162,147 10%
15,285,430,676 100%
RESULTS
Financial resources for Information Society by Member State
0.00 %
2.00 %
4.00 %
6.00 %
8.00 %
10.00 %
SK
GR
MA FI
KR
ES
CK
EE
COOP LT
PO
FR
EU (M
ean)
SL
IT
PT
HU
RM
ND SE
UK DE
BG
LV
BE
DK
IR
LU
AT
Resources allocated by Member State (in %)
% cat 13 over tot SF % IS over tot. SF Note. Authors’ calcula=ons on EC – DG Regio data
RESULTS
Financial resources for Information Society by Member State
• Significant variation in the amount of resources dedicated to e-services actions, especially if compared to the resources dedicated to other IS themes.
• For example: • in Spain, Estonia, Malta or Slovak Republic e-
services investment represents more than the half of IS total investment.
• Sweden, Denmark or Italy, seem to focus on other priorities classified into the remaining IS categories of expenditure (10, 11, 12, 14, 15).
RESULTS
Financial resources for public e-services at regional level: a cluster analysis
Goodness of variance fit (GVF): aims at minimizing the squared devia=ons of the class means
SSD =sum of squared difference
RESULTS
Financial resources for Information Society at regional level
Financial resources for public e-‐services
RESULTS
Financial resources for e-services at regional level
• In the 1st cluster: • All the regions in Slovack Republic except
Bratislavsky have planned high investments in e-services (more than 189 milion of euros)
• Campania (147,5 milion of euros), Andalucia (Spain) and Attiki (Greece)
• In the 2nd cluster: • Sardinia in Italy, 3 Spanish, 7 Greek and 10 Polack
Regions, Pas-de-Calais (France), Észak-Magyarország (Hungary)
• A number of COMP regions decided not to use structural funds to co-finance e-services development
RESULTS
Financial resources for Information Society at regional level: a cluster analysis
Cluster Average amount of resources (€)
Cluster 1 164,164,097
Cluster 2 73,442,227
Cluster 3 50,298,301
Cluster 4 24,043,678
Cluster 5 2,716,310
strong heterogeneity in the total amount of resources dedicated to e-‐services by EU regions
CONCLUSIONS
Conclusions (1/2)
• Compared for the first time the financial resources dedicated to ICT and e-services at NUTS2 level
• Regional Policy funding represents a good proxy of the total amount of resources available to regional public policies, especially in the “convergence” objective
CONCLUSIONS
Conclusions (2/2)
• Strong heterogeneity in the level of commitment towards e-services development both between and within countries
• This is due to: – huge variation in total amount of resources
available (e.g. CONV vs. CRO objectives), connected to the degree of development of the territories
– different regional strategies: focused on e-services vs. focus on other priority themes
Open questions • Which strategies are followed by which
kind of agency, Programme, territory, objective?
• How will these strategies evolve over time?
• What are the determinants of the allocation of resources to ICT / e-services? – Regional context (size, innovation, ICT
diffusion, etc.) – Other economic variables (amount of
funding, FEIs vs. grants..)
DISCUSSION AND CONCLUSIONS
