Constructing Regional Advantage from Innovation Systems

Phil Cooke Centre for Advanced Studies University of Wales, Cardiff Presented at INGENIO Conference in Valencia, 7 June, 2007 The Argument in Brief

• Shift t o a K nowl ed ge Economy •Reggpional KE Disparities 2 x GDP Ga p • FDI Diverts from W. to E. Europe, Asia (esp. China) & N . Africa • RDAs struggle to switch towards ‘Entrepreneurship’ & ‘Knowledge-seeking’ • Serious Innovation System Barriers but Interesting Experimentation From 152 to 189 in 1998

40 Basilicata 37.36 Abruzzo 36.78 Mecklenburg-Vorpommern 36.43 Umbria 36.35 Marche 35.51 35 Steiermark 35.34 Border, Midlands and Western 34.81 Sicilia 34.81 Tirol 33.64 Toscana 33.08 30 Burgenland 32.8 Sardegna 31.22 Provincia Autonoma Bolzano 30.65 Puglia 30.41 Cantabria 28 46 28 .46 25 Galicia 28.42 Comunidad Valenciana 28.3 Principado de 27.66 Castilla y León 27.54 Andalucia 26.68 20 La Rioja 26.01 Kentriki M akedonia 25.92 Illes Balears 25.56 Castilla la Mancha- la Mancha 24 88 24 .88 Regió de M urcia 24.63 15 Thessalia 23.53 Dytiki Ellada 22.54 Norte 21.78 Sterea Ellada 20.19 Anatoliki Makedonia, Thraki 19.68 10 Peloponnisos 17.38 KIS_MAN_HM_98 KIS_MAN_HM_02 KIS_MAN_HM_06 Top 30 in 1998

63 Sto ckho lm 60.31

61 Inner London 58.58 Surrey, East and West Sussex 55.55

Berkshire, Bucks and Oxfordshire 54.0

59 Outer Lo ndo n 53.91

Brussels 53.89

57 Ostra M ellansverige 53.68

Vastsverige 52.82

Sydsverige 52.73 55 Brabant Wallon Wallon 52 52 62.62

Vlaams Brabant 52.61 53 M ellersta Norrland 52.45

Ovre Norrland 52.35 51 Darmstadt 52.31 Karlsruhe 51.75 49 Ile de France 51.73 Utrecht 50.65

Gloucestershire, Wiltshire and North Somerset 50.4 47 Stu ttttgar tt 49 49 83.83

Denmark 49.59

45 West M idlands 49.58 B edfo rdshire, Hertfo rdshire 49.41

South Western Scotland 49.01

Essex 48.5

Eastern Sco tland 48.44

No rra M ellansverige 48.05

M erseyside 47.72

Wien 47.3

Hampshire and Isle of Wight 46.59 What Is An Innovation System?

• Set of Nodes in Innovation Chains •Syygstemic, Interactive Linkages • Knowledge Generation Firms & Institutions • Knowledge Exploitation Firms • Soft Infrastructure • Financing • Commercialisation and Marketing • Feedback and Policy Support Regional Innovation Systems

• Knowledge Generation & Exploitation Sub- systems • Boundary-crossing problem • Entrepreneurial RIS – ERIS (markets) • Institutional RIS – IRIS (RDAs etc.) • Functioning ERIS Greater Boston • Functioning IRIS Baden-Wurttemberg • ‘Developmental State’ IRIS – Wales •‘Knowledge Economy’ IRIS - Scotland Wales ‘Developmental State’

• FDI Droug ht •Entrepppreneurship & Innovation • Structural Funds • Entrepreneurship Action Plan • Finance Wales • Knowledge Exploitation Fund • Technium • Multiple Disconnects National Botanic Gardens & BioTechnium Wales Preseli: related variety Form 31 to 61 in 1998

55 B erlin 52.89 53 Hamburg 52 47 52 .47 Cheshire 51.28 B raunschweig 50.6 Co lo gne 50.5 51 Oberbayern 50.46 Greater M anchester 49.53 Kent 48.96 49 Gro ningen 48.88 47 No o rd-Ho lland 48.81 Smaland med oarna med 48 oarna 27 48 .27 Herefordshire, Worcestershire Eastand Warks A nglia 47.8948.26 East Wales 47.76 45 Tubingen 47.34 Do rset and So merset 47.13 43 Tees Valley and Durham 46.85 41 Zuid-Ho lland 46.79 Rheinhessen-P falz 46.62 Mitt lfe lf kran 465k en 46 .5 Flevoland 46.42 Freiburg 46.22 39 West Yo rkshire 45.7 37 Leicestershire, Rutland and Northants 45.5 8 Northumberland, Tyne and Wear West45.28 Wales and The Valleys P45.23 ro v. A ntwerpen 44.22 So uth Yo rkshire 43.88 35 Drenthe 43.25 P ro v. Hainaut 42.1 Haute-No rmandie 41.48 Rural Knowledges: Monmouthshire Wales

• 20 Gastropubs • 35 Organic Farms – 13 Beef – 12 Lamb – 10 Horticulture • 15 Vineyards • 8 Art Galleries • 1 National Park • 10 Farmer’s Markets • Abergavenny Festival, 30.000 visitors • Wales International Film School • Ryder Cup Golf 2010 Tuscany Art-Food System

• Wine Assoc ia tions e.g. Chian ti, Grosse tto • Tuscany Region/‘Strade Del Vino’ – 16 Wine Tours • Hospitality Association – Benvenuti in Toscana • Enoteca Training, Fiesole (nr. Florence) • High School & University Training • Racolta Organic Food Distribution • Cuisine Farms, Art Farms, Agro-Tourism • Etruscan, Roman Archaeology • 3 Eco-Museums, GeoParks • Orchestras, Music Schools (e.g. Limana), Art Institutions, L’Accademia Fine Arts, Florence

Skåne Food Cluster • A regional agro-food innovation network established in Skåne in 1994 .A research-technology led governance structure, – Functional, Conventional – Organic excluded MthdlMethodology – maifin focus on functi tilfdonal food – Integration of Engineering (food technology), Nutrition, Functional Foods etc. • High focus on future ’food-health’ markets BUT • Exclusion of Malmö ‘Food & Environment’ programme (100% organic s hoo l mea ls by 2012) • Neglect of Copenhagen’s Dogme (75% organic food in all municipal byy) 2009) • 80% Sweden’s food market ‘institutional’; 20% private consumption Skåne Food Cluster: aspects for reflection

• Academe-biotechnology push too pronounced – research-industry, research-market gaps & inwardly focused • IblImbalance in governance – Local authority yet to fully integrate – Only 33% of Skåne agro-food firms engaged – Most are, large, conventional ‘cook-chill’ firms • Exclusion of Organic Food Interests – Despite its fast market growth, big local ‘institutional’ markets (& interaction with aspects of S&T e.g. breeding, genetic selection) • Better external Branding needed – Slow opening out internationally, e.g. Mona Carota – International Food & Health Conference initiative commendable Finland: Lahti Region – Furniture to Nano

• The key aim is to explore market potentials of regional assets and capabilities , • These explorations define regional development platforms in conceptual terms. • Regional development platforms are asset configurations evolved from path dependencies aimed at examining and exploiting market potential, • Regional platform actors include firms, intermediaries, knowledge centres, research, cultural and talent formation organisations , • Regional platforms comprise industry and knowledge in context of techno-economic paradigm change or ‘global megatd’ltrends’ relevan ttthifiit to the specific region. • Lahti RDPM model very advanced, expert panels, leader shi p, envi si onin g, n ew pl atf orm s Lahti’s Nanotechnologies – from atom slices to bacteria & DNA Lahti Regional Development Platform Method • Seeking to construct regional advantage • After traditional furniture industry decline • Expert envisioning panels • Outside experts • Nanotechnologies for environmental and healthcare platforms • Platforms link from Corn-Food-Biofuels- Health-Sport-Environment Platform Denmark - Aalborg: a Learning Approach • ThilUiTechnical Univers ity – 1974 • Wireless Radio (Mobile Telephone GSM Iftt)FDIbiInfrastructure) FDI buys in • 2002 Wireless (3G-5G) applications. More FDI buy-in, TI, Be llsou th, Mo toro la, No kia • $100 million Community Cluster programme • Healthcare applications; e-Learning applications; e-administration applications • Learning from Community (RILS) NOVI Science Park, Aalborg

NorCOM North Jutland Art-Food

• Danish Culinary Institute, Aalborg • House of Taste – N. Jutland – Training – Consultancy – Product Development • Thisted, Lønstrup, Skagen – receptive to creative platform ideas • Cuisine Courses in farm estates • Coastal Conservation Projects • Organic Farming-Ecological Farming • Women-Health-Food Network • Tourism – Skagen, Lokken, Lønstrup • Agro-Food Institute Stavanger-Rogaland ”Norway’s Finest Culinary Cluster”

GtRttGourmet Restaurants ”Fusi on ” R est aurant s Et c.

Bocuse D’Or Championships, “Buffet” , “Young Chefs” Competitions, “Green Fair, Gladmat, Food & Wine Festivals

Gourmet Chefs Sommeliers & Waiters

Regional, National and Global Supplier Industries (e.g. Horticulture, Organic Seafood and Meat, Non-organic Food, Ceramics, Wine, Beer and Spirits, Equity Finance, Culinary Law and Logistics, Chilling and Freezing, Restaurant Design)

UiUniversit y of fSt Stavanger RhResearch on Aquaculture Norway Cul- ‘Meat and Hospitality and Tourism Omega 3 Food Research inary Institute Drink Arena’ Managemen t Enrichment

Food High School Training Food Science Training

Regions and Counties Innovation Norway

Government of Norway RELATED VARIETY PLATFORM: Forestry Diversification

Information Technology Manufacturing Technology Sensors, measuring & control Forestry machines Computational intelligence, simulation and machine vision Process & production machinery Multimedia and telecommunication Materials technology Tomography

FORESTRY FOREST INDUSTRY Pulp & Paper Technology WdPdtIdtWood Products Industry Machines, Machinery & Processes assembly Logistics, tecture Construct Wood mo Wood tec Construct Chemical Technology Biotechnology Markets Bleaching Enzymes Quality Surface treatment Rot protection Price h d

Gene technology Environ-mental i i on/archi on & nology Pigments, adhesives ifying Conclusions

• KldEKnowledge Econom ies crea te new pressures for economic development • Ctt/ttKldConstruct/reconstruct Knowledge Generation/Exploitation System • Mark et F ail ure means IRIS ‘C onst ruct ed Advantage’ not ERIS • Publi c Sec tor Innova tion Dr ivers, Sus ta ina bility, Regulation? • StDSmarter, Deeper ‘KldFl’M‘Knowledge Flows’ Measures to ‘Construct Advantage’ Than kYk You and dG Good dB Bye !

Prof. Phil Cooke Centre for Advanced Studies University of Wales, Cardiff

Regional Industrial Research Reports @ http://cass.wales .com www.cf.ac.uk/cass