REGIONAL INNOVATION STRATEGY FOR THE LUBELSKIE VOIVODESHIP 2020 REGIONAL INNOVATION STRATEGY FOR SMART SPECIALISATION (RIS3)

 TASK TEAM FOR UPDATING THE REGIONAL INNOVATION STRATEGY FOR THE LUBELSKIE VOIVODESHIP 2020 Sławomir Sosnowski, Krzysztof Hetman, Krzysztof Grabczuk, Michał Cholewa, Jacek Sobczak, Tomasz Pękalski, Artur Walasek, Elżbieta Mocior, Artur Habza, Piotr Janczarek, Krzysztof Bartuzi, Edmund Bożeński, Katarzyna Bryda, Izabela Byzdra, Dariusz Donica, Piotr Franaszek, Bogdan Kawałko, Iwona Nakielska, Zbigniew Orzeł, Aneta Pieczykolan, Waldemar Rudnicki, Małgorzata Sokół, Sławomir Struski, Henryk Szych.

CHIEF CONSULTANT Prof. Anna Rogut, PhD

EXTERNAL EXPERTS Ryszard Boguszewski Dariusz Mazurkiewicz, PhD, DSc Korneliusz Pylak, PhD

ELABORATION AND COORDINATION OF WORK Department of Economy and Innovation Marshal Office of the Lubelskie Voivodeship in Lublin Radosław Dudziński, Bartłomiej Pocztowski, Elwira Rycaj

IN COOPERATION WITH Prof. Iwona Hofman, PhD

The authors of this document would like to thank for their valuable contribution to Prof. Paweł Churski, PhD, Prof. Andrzej Miszczuk, Jacek Wojciechowicz, as well as for drafting the RIS LV 2020 to Mariusz Bobel, Ilona Dąbrowska, Kornelia Leszko, Paweł Koziej, Anna Ososińska.

ISBN 978-83-940435-9-9

 Dear Readers,

I am pleased to present you with the Regional Innovation Strategy for the Lubelskie Voivodeship 2020. I believe that the assumptions developed and presented in this document will have an actual impact on starting the innovative transformation process for the enterprises as well as the economy of the Lubelskie Voivodeship.

Development policy faces the challenge of building an economy based on innovation and intellectual and social capital. It is crucial to derive benefits from the endogenous potentials of those regions which can make a significant contribution to the voivodeship’s development. Defined in this document Smart Specialisation will be the means of achieving these goals as well as the basis for innovation activities in the voivodeship. Regional Innovation Strategy for the Lubelskie Voivodeship 2020 is a significant programming document specifying the most essential grounds for the development of the region’s innovative performance. Today our common goal is to increase productivity and knowledge absorption capabilities within the region’s economy as well as the share of services and industries with high added value and potential for growth. The assumption of RIS LV 2020 is that within the next 5 years the region will observe a significant increase of innovation potential and therefore improve its international position and move up in the Regional Innovation Ranking.

I am confident that this document will greatly contribute to the process of making regional development more dynamic. Its content will indicate optimal solutions to the development of innovation in the Lubelskie Voivodeship and will also provide foundation for the business and research community cooperation to shape the future of the region.

Sławomir Sosnowski

Marshal of the Lubelskie Voivodeship



Table of contents

Summary 5

Introduction 9

Mission and vision 12

Smart specialisation of the Lubelskie VoivodEship 16

Objectives, priorities and courses of actions 34

Implementation system 56

monitoring and evaluation SYSTEM 64



SSummary

Regional Innovation Strategy for the Lubelskie Voivodeship 2020 (RIS LV 2020) specifies the Development Strategy for the Lubelskie Voivodeship for the years 2014-2020 (DS LV 2020) in the section on the development of research and innovation for smart specialisation. The mission of the strategy is to: (1) support the selective development model of the voivodeship based on creative innovation, (2) initiate the process of technological and non-technological transformation of endogenous development potentials, (3) lead to an increase of knowledge absorption capabilities and productivity of the economy (by 2020), and (4) diversify the economy structure and increase the share of industries and services with high added value and high growth potential in the economy (by 2030).

 Summary

The selective development model of the voivodeship is based on smart specialisation understood as the development of such areas of research, development and innovation activity which strengthen endogenous development potentials of the voivodeship. The identification of smart specialisation areas was based on a bottom up entrepreneurial discovery process, promoted by the European Commission, with a thorough self-assessment of economic, scientific, technological, educational and institutional potential.

Four areas of smart specialisation have been identified: (1) bioeconomy, (2) medicine and health, (3) information technology and automation, and (4) low-carbon emission energy production. These areas overlap, they are complementary to each other and cover these fields of business activity that are specific for the economic, scientific and technological specialisation of the voivodeship. Moreover, these areas have already gained, and may gain in the future, a competitive advantage on a national and/or international scale; they are noted for well-developed cluster initiatives and creation of sufficient critical mass able to create new paths of development for the region.

The RIS LV 2020 mission is in tune with the vision of the strategy, according to which in 2020 the Lubelskie Voivodeship economy should observe a significant increase of innovation potential. As a result, the voivodeship will improve its international position in terms of innovation and will go up in the Regional Innovation Ranking. Although it will still remain in the group of weak innovators, it will go up from very weak to strong-weak innovators. In 2020 the Lubelskie Voivodeship will also be a region which: (1) effectively uses its endogenous potential, (2) creates high added value products and services , (3) is open to innovation, and (4) cooperates and links with the outside world economically and scientifically.

Effective implementation of such a vision depends on the following objectives of the RIS LV 2020: • developing territorial capital, especially in the areas of smart specialisation, • strengthening the regional research and innovation system to be based on the quadruple helix that joins together all stakeholders interested in the cooperation, • incorporating the region into the national as well as international chain of innovation and cooperation network, • developing effective instruments to support innovation and competitiveness of the voivodeship economy, • stimulating dynamic advantages of the location, especially in the form of: (1) strengthening business environment institutions, (2) developing market services for business and (3) developing financial markets significant to the increase in demand for innovation from all companies, both these located in regional and supra-regional smart specialisation areas and these operating outside of these areas.

 The following priorities identified in the RIS LV 2020 help achieve the objectives:

Priority 1 Increasing the ability of business entities to create and absorb knowledge and implement innovations, particularly in areas of regional smart specialisation. Increasing the ability of entities operating in the science and research sector to create Priority 2 and commercialise knowledge in areas of regional smart specialisation.

Priority 3 Strengthening business environment institutions and public administration bodies open to innovation.

The priorities are coupled with the following actions to be performed in the years 2014-2020: • within the Priority 1: (1) stimulating the development of entrepreneurship, particularly technological entrepreneurship; (2) increasing the level of innovation of already operating companies; (3) improving the knowledge and skills of industrial personnel (employees and managers); (4) stimulating and developing network cooperation between business entities, and (5) developing financial engineering instruments used to adapt, to a greater extent than before, the type of financial support to the nature of innovation; • within the Priority 2: (1) increasing R&D personnel able to create and transfer knowledge for the development of smart specialisation of the region; (2) increasing efficiency of R&D infrastructure to conduct and commercialise research in the areas if smart specialisation of the region, and (3) contributing to growing importance of the Lublin science in the areas of smart specialisation at national and international level; • within the Priority 3: (1) transforming business environment institutions into regional growth centres; (2) developing efficient and open to innovation public administration bodies, and (3) promoting entrepreneurship and innovation.

These courses of actions will be further: • elaborated in implementing documents to the RIS LV 2020, especially in: (1) documents attached to the Regional Operational Programme for the Lubelskie Voivodeship for the years 2014-2020, which is one of the main sources of the RIS LV 2020 funding in this period (in addition to private sector funding and national operational programmes), (2) sectoral, regional and supra-regional research agenda, and in (3) other documents adopted by the Board of the Region. The following aspects will undergo elaboration: the type, scale, scope and threshold of projects, the type of beneficiaries, the structure of repayable instruments and grants involved in each action, the project selection procedures, etc.; • successively revised and adapted to the changing needs. The first revision should be conducted on the occasion of the first DS LV 2020 update in 2016.

Pilot programmes constitute an additional element of the RIS LV 2020. These programmes initiate the regional innovation laboratory for systematic search for solutions (courses and types of actions and specific projects). They also better adjust forms of intervention to the changing needs and challenges related to the development of regional smart specialisation. The pilot programmes were inspired by good practices collected by the OECD and the Pro Inno Europe platform and the measures recently implemented in the region, dedicated, for example, to academic enterprise and business brokers. Some programmes take the form of the so-called umbrella initiatives aimed at testing new instruments, evaluating their effectiveness and preparing procedures for popularizing the most effective solutions. The first pilot programmes cover six areas: (1) regional research programmes in the areas of smart specialisation, (2) technological entrepreneurship, (3) partnerships, networks and clusters, (4) regional growth centres, (5) financial engineering for innovation, and (6) innovative public procurement.  Furthermore, the Regional Innovation Strategy for the Lubelskie Voivodeship 2020 encompasses a mechanism for continuing the entrepreneurial discovery process, especially with reference to identification of research, development and innovative priorities. The mechanism provided the strategy with: • a pilot programme entitled Regional Programme of Research in the Areas of Smart Specialisation aimed to (1) determine the priorities of integrated regional research agenda for the development of smart specialisation and (2) design and test regional technology observatory, which will combine monitoring of new and emerging technologies with identification methods for the areas where they are applicable, estimating the market potential and defining basic support instruments used to determine and/or accelerate the commercialisation of new solutions; • a type of action under Priority 1 (Measure 1.4: stimulating and developing a network of cooperation between business entities, that is an autonomous instrument aimed to establish common research agenda for each regional smart specialisation area, including R&D priority projects relevant to the growth of companies operating in these areas); • a course of action under Priority 3 (Measure 3.2: developing efficient and open to innovation public administration bodies, that is an instrument aimed to establish a mechanism for ensuring the continuity of the entrepreneurial discovery process).

Incorporating into the RIS LV 2020 the procedures for continuing the entrepreneurial discovery process has emphasized the dynamic nature of the strategy and offered opportunities for searching narrower specialisation niches and/or new areas of smart specialisation without the necessity to initiate formal revision of the strategy itself. The strategy implementation system involves an institutional system, sources of funding and an implementation plan for the years 2014-2020. The analysis of the main risks revealed while drafting the RIS LV 2020 is also a part of the implementation system. Due to the fact that the RIS LV 2020 is one of the strategies supporting the implementation of DS LV 2020, the monitoring and evaluation system of RIS LV 2020 is an integral part of the monitoring and evaluation system of the DS LV 2020.

 IIntroduction

The creation of the Regional Innovation Strategy for the Lubelskie Voivodeship 2020 is a result of adopting the Regional Assembly of the Lubelskie Voivodeship Resolution No XXIV/399/2012 setting out the procedures, the schedule and the principles behind the Regional Innovation Strategy of the Lubelskie Voivodeship 2020 update. The RIS LV 2020 was updated by the following entities coordinated by the Board of the Region: socio- economic communities, R&D institutions, public administration bodies, business environment institutions and social organisations. The principles governing the cooperation were based on openness, transparency and equality of participation. This approach enabled the RIS LV 2020 to specify strategic areas of intervention regarding the development and increase of innovative and competitive potential of the voivodeship, and also integrates all regional stakeholders.

 InTroducTIon

The updated RIS LV 2020 is consistent with: • EU documents, in particular with the Europe 2020 Strategy1 and the related fl agship initiatives and guidelines on the development of regional innovation strategies for the years 2014-20202; • national documents, in particular the long3- and medium-term country development strategy4, the National Spatial Development Concept with integrated strategies, including the National Strategy for Regional Development5 and the Innovation and Economic Effi ciency Strategy6 with the related Enterprise Development Programme7, the National Reform Programme8 and the Strategy for Socio-Economic Development of Eastern Poland 20209; • regional documents, primarily the Development Strategy for the Lubelskie Voivodeship for the years 2014-202010 (DS LV 2020), the Spatial Development Plan of the Lubelskie Voivodeship11 and other provincial programmes (Figure 1).

Figure 1: The RIS LV 2020 among strategic documents of the Lubelskie Voivodeship

1 ec.europa.eu/europe2020/index_pl.htm. 2 s3platform.jrc.ec.europa.eu/en/c/document_library/get_fi le?uuid=e50397e3-f2b1-4086-8608-7b86e69e8553&groupId=10157 and www.era.gv.at/attach/ris33.7.-eweb.pdf. 3 https://mac.gov.pl/fi les/wp-content/uploads/2011/12/Polska2030_fi nal_november2012.pdf. 4 www.mir.gov.pl/rozwoj_regionalny/Polityka_rozwoju/SRK_2020/Documents/Strategia_Rozwoju_Kraju_2020.pdf. 5 www.mir.gov.pl/aktualnosci/polityka_rozwoju/Documents/KSRR_13_07_2010.pdf. 6 www.mg.gov.pl/fi les/upload/20046/SIEG_PL_wersja%20ksi%C4%85%C5%BCkowa.pdf. 7 www.mg.gov.pl/fi les/upload/17484/PRP_wersja_po_uwagach_%20KRM_20032014.pdf. 8 www.mg.gov.pl/node/18224. 9 www.mir.gov.pl/rozwoj_regionalny/Polityka_regionalna/Strategia_rozwoju_polski_wschodniej_do_2020/Dokumenty/Documents/Strategia_PW_11_07_2013_zmn.pdf. 10 www.strategia.lubelskie.pl/SRWL%202014-2020%20FIN.pdf. 11 More on: www.plan.lubelskie.pl oraz www.bpp.lublin.pl/oprac2/plan.zmiana.html. 0 The RIS LV 2020 is based on: • economic, social, cultural, demographic and location-based conditions, trends and challenges identified in the DS LV 2020 and development scenario adopted there (Box 1), • in-depth analysis of broadly defined innovation potential of the voivodeship, as illustrated in Detailed Diagnosis of the Innovation Potential of the Lubelskie Voivodeship (Annex No 1), • assessment of the results of development activities (and effects of implementation of the previous RIS LV • recommendations for development policy, contained in the DS LV 2020.

Box 1: Development scenario adopted in DS LV 2020 and the related conditions, trends and challenges The two major development challenges for the Lubelskie Region include: (1) unfavourable social and labour structure, with the largest share of inefficient agriculture in Poland, insufficient number of high-quality jobs and negative demographic trends in addition to intensive migration, especially of the population of young and educated people, and (2) peripheral location and poor communications with better developed national and foreign areas and insufficient infrastructure integrating the region. According to the DS LV 2020 development scenario, the broad neighbourhood of the region (the world - Europe - Poland) will not be affected by a long-term and deep economic crisis. Socio-economic processes in the region will take place in accordance with regularities of contemporary model of development, in which qualitative factors (both technological and social) are steadily growing in importance. As a result, by 2030 the voivodeship will become the arena of the following development processes: (1) acceleration of structural change, (2) popularization of selective model of development in place of a traditional one, (3) development of metropolitan functions of Lublin and strengthening economic, cultural and education functions of sub-regional towns and cities, (4) improvement of the social and economic attractiveness of the region, (5) development of business, spa, therapeutic and specialised tourism, (6) social and cultural integration of the region, (7) reduction of the development gap in relation to the more developed European regions, (8) increase of resilience to emergency situations.

Conceptual framework of the RIS LV 2020 update (Annex No 2) reflects the Lubelskie Voivodeship vision of development adopted in the DS LV 2020, according to which by 2030 the traditional model of development of the region will be replaced with a selective model based on the principle of smart specialisation, whereas innovation model will change from imitative to creative. Further in the document, the RIS LV 2020 mission and vision are presented in addition to: smart specialisation areas in the Lubelskie Voivodeship, objectives, priorities, courses of actions and a system for the monitoring and evaluation of the strategy. The final part of the RIS LV 2020 contains all documents and papers referred to in this document. The RIS LV 2020 does not, however, provide for infrastructure projects implementation; it only establishes such directions in the region development, which will not have significant environmental effects. Accordingly, the RIS LV 2020 does not include the environmental impact assessment.

11 MMission and vision

The purpose of the DS LV 2020 is to implement selective model of the voivodeship development. This process is in tune with investments in research, educational and institutional infrastructure. Such investments are aimed at developing (1) creative innovation model strengthening both the ability to link local knowledge with national and foreign knowledge and (2) the capacity to identify needs, provide new solutions and encourage inventions essential for regional economic growth.

12 The RIS LV 2020 mission and vision

The core of the selective model of the voivodeship development is smart specialisation, meaning investments in these areas of research, development and innovation activity which enhance the voivodeship endogenous development potentials (Box 2).

Box 2: Endogenous development potentials Endogenous development potentials refer to economic sectors embedded in traditional specialisation of a given voivodeship and which have already gained, or may gain in the future, competitive advantage on national and/or international scale.

The RIS LV 2020 elaborates in detail the DS LV 2020 in the section dedicated to the development of research and innovation for smart specialisation. Therefore, in accordance with the compromise reached during debates and public consultation, the strategy mission is to: • support the selective model of the voivodeship development based on creative innovation model, and • initiate the process of technological and non-technological transformation of endogenous development potentials leading to: − lead to an increase of knowledge absorption capabilities and productivity of the economy (by 2020), diversify the economy structure and increase the share of industries and services with high added value and high growth potential in the economy (by 2030).

This mission lays behind the DS LV 2020 and the update of both Strategy of Socio-Economic Development of Eastern Poland 2020 and the Strategy for Innovation and Economic Efficiency (Box 3).

Box 3: Endogenous development potentials in the country strategy papers The update of The 2020 Strategy of Socio-Economic Development of Eastern Poland recommends that: (1) the development of Eastern Poland (including the following voivodeships: Lubelskie, Podkarpackie, Podlaskie, Świętokrzyskie and Warmińsko-Mazurskie) should be based on traditional sectors of the economy, and (2) the science and research sector should be strengthened. However, according to the Strategy for Innovation and Economic Efficiency, innovations should be introduced in new industries as well as in traditional sectors of the economy.

The mission has its roots in previous experience of the OECD countries, which showed that in the case of economies dominated by low and medium-low technology sectors, such as the economy of the Lubelskie Voivodeship (Box 4), technological and non-technological transformation of these sectors produces effects comparable to the effects of investments in high technology sectors.

13 Box 4: The share of low, medium-low, medium-high and high technology sectors in the structure of sold production in industry in the Lubelskie Voivodeship

The structure of sold production in industry in the Lubelskie Voivodeship shows that almost 77% of this production comes from low and medium-low technology sectors. As far as the low-tech sectors are concerned, agri-food processing, manufacture of tobacco products, production of textiles and clothing industry, production of wood (including furniture) and paper products play the most important part. Among the medium-low technology sector, reproduction of recorded media, manufacture of coke and refined petroleum products, manufacture of rubber and plastic products, manufacture of fabricated metal products, repair, maintenance and installation of machinery and equipment are of great importance in the voivodeship economy. In the Lubelskie Region, 21% of sold production in industry comes from sectors referred to as medium- high technology sectors, including mainly the manufacture of chemicals and chemical products and manufacture of machinery and equipment. High-technology sectors (mainly production of pharmaceutical substances and drugs, production of computers, electronic and optical products, and production of helicopters) generate only about 2% of sold production in the industry. The export structure of the Lubelskie Voivodeship also indicates the dominance of products from the low (39%) and medium-high technology (60%) sectors. Attention should be paid to small (approx. 1%) share of highly processed goods (from the high-technology group) in export. As a consequence, innovative position of the voivodeship internationally is very weak (in accordance with the Regional Innovation Ranking, the Lubelskie Voivodeship belongs to weak innovators capacity group).

The RIS LV 2020 mission corresponds to its vision, according to which in 2020 the Lubelskie Voivodeship economy will observe a significant increase of innovation potential. As a result, the voivodeship will improve its international position in terms of innovation and will go up in the Regional Innovation Ranking12. And although it will still remain in the group of weak innovators13, it will go up from very weak14 to strong-weak innovators15. In 2020, the Lubelskie Voivodeship will also be a region which will (Table 1): • effectively use its endogenous potential (which will be reflected in an increased number of people employed in sectors and areas considered to be smart specialisation of the region); • create products and services with high added value (which will translate into a growing number of patent applications, higher share of highly processed goods in export as well as higher number of companies experiencing boost in revenue from sales of novel or significantly improved products); • be open to innovation (which will, among others, result in an increase in (1) the number of enterprises introducing innovations, including innovations developed as a result of their own R&D activity and (2) capital investment in R&D activity in the region); • cooperate and link with the outside world both economically and scientifically (which will translate into: an increase in the number of companies cooperating in the field of innovation, enterprises engaged in export activity and the quantitative and qualitative development of effectively operating clusters).

12 Regional Innovation Scoreboard. 13 Modest innovators. 14 Modest – low innovators. 15 Modest – high innovators. 14

TableTable 1. The1: The RIS RIS LV LV2020 2020 vision vision in numbersin numbers

Values Vision base (2014) target (2020) Values Effective use of endogenous potential base (2014) target (2020) Vision Effective use of indigenous potential the share of people employed in sectors and areas considered • the share of people employed in sectors and areas 33.4433.44 (2012) (2012) 67.7067.70 toconsidered be smart tospecialisation be smart specialisation of the region of the region ProductsProducts and services with high added valuevalue • the number of patent applications 254 (2012) 337 • thethe npercentageumber of patent of companies application experiencings boost in total 254 (2012) 337 revenue from sales of new or signifi cantly improved products 22.30 (2011) 29.11 the percentage of companies experiencing boost in total • the share of highly processed goods in export 53.0722.30 (2013) (2011) 63.3729.11 Opennessrevenue fromto innovation sales of new or significantly improved products • the share of enterprises introducing innovations, including the share of highly processed goods in export 53.07 (2013) 63.37 innovations developed as a result of their own R&D activity 15.9 (2012) 21.59 Open• capitalness investment to innovation in R&D activity in the region, including PLN 718,500 (2012) PLN 938, 220 enterprises’ own funds the share of enterprises introducing innovations, including Cooperation as well as economic and scientifi c link with the 15.9 (2012) 21.59 outsideinnovations world developed as a result of their own R&D activity • capitalthe number investment of enterprises in R&D activitycooperating in the in region, the fi eldincluding of 6,798 (2012) 10,498 innovation PLN 718,500 (2012) PLN 938, 220 • enterprises'the number ofown enterprises funds engaged in export activity 1,718 (2013) 2116 Cooperation• the number asof effectively well as economic operating and clusters, scientific including link the with the 23 35

outsidesupra-regional world ones

the number of enterprises cooperating in the field of 6,798 (2012) 10,498 innovation the number of enterprises engaged in export activity 1,718 (2013) 2116 the number of effectively operating clusters, including the 23 35 supra-regional ones

The values for 2030 will be proposed in the DS LV 2020 update to be provided in around 2016. The values for 2030 will be proposed in the DS LV 2020 update to be provided in around 2016.

16 

sSmart specialisation of the Lubelskie Voivodeship

The selective model of the voivodeship development is based on smart specialisation understood as the development of such areas of research and innovation activity which enhance endogenous development potentials of the voivodeship.

16 Smart specialisation of the Lubelskie Voivodeship

The areas of smart specialisation were identified on the basis of a bottom up entrepreneurial discovery process (Box 5) promoted by the European Commission and supported with a thorough self-assessment of economic, scientific, technological, educational and institutional potential.

Box 5: The rationale behind entrepreneurial discovery process The essence of entrepreneurial discovery process is (1) constanty searching for creative solutions to the existing and emerging problems based on a combination of resources and (new) partners, risk-taking, experimentation and implementation of new ideas along the existing and/or new chains of values, (2) saturating the markets with innovations, and ultimately (3) generating growth and high quality jobs.

The rationale behind entrepreneurial discovery process is dialogue; hence, the whole process takes the form of debates and public consultation involving all regional stakeholders and held in all subregions (bialski, chełmsko-zamojski, lubelski and puławski). Social debates took the form of public discussions within the Council for Innovation, industry panels organised as part of the Regional System for Economic Change Management and Towards Regional spEcialisation for Smart growth spirit (TRES) as well as workshops dedicated to internal and external conditionality of smart specialisation (Box 6).

Box 6: Main instruments of social debates The Lubelskie Council for Innovation: the task of the Council for Innovation is to increase the innovation of the voivodeship economy and exchange knowledge and experience between representatives of local administration bodies, the scientific community and business entities operating in the private sector. The Council members include: representatives of the Lublin Chamber of Crafts and SME’s, the Lubelskie Region Confederation of Private Employers LEWIATAN, the Business Centre Club Lodge in Lublin, the Lublin Business Council, Nitrogen Plant ZA Puławy SA, coal mine LW „Bogdanka” SA, SIPMA SA in Lublin, WSK PZL Świdnik SA, BIOWET Sp. z o.o, SIGMA SA in Jastków, the „OIC Poland” Polish Foundation of Centres for the Support of Economic Development, the Foundation for Lubelskie Region Development, the Lublin Development Foundation, the Centre for Innovation and Technology Transfer of the Lublin Science and Technology Park Sp. z o.o., the Puławski Science and Technology Park, the Lublin Science and Technology Park SA and the Świdnik Sp. z o.o. Regional Industrial Park The Regional System for Economic Change Management project: financed by the Operational Programme − Human Capital. The main objective of the project is to integrate people, information and entities involved in making social and economic changes based on cooperation between various regional communities within one system for economic change management. 20 different types of research and analyses were carried out as part of the project, with the participation of a broad range of stakeholders during industry panels, some of which were used in the process of the RIS LV 2020 update. The TRES project: financed by the INTERREG IVC Interregional Cooperation Programme implemented since March 2012. The project aims to exchange experiences and develop the concept of smart specialisation in entrepreneurial discovery process and involves ten partners from nine European Union countries including Finland, the UK, Germany and Spain. The results include: establishing more effective principles behind development of research and innovation 17 system in the Lubelskie Voivodeship, providing solid foundation for further international cooperation and gathering stakeholders around joint projects and initiatives in line with the RIS LV 2020 objectives. External and internal conditionality of smart specialisation: workshops organised as part of the project implemented by the Ministry of Science and Higher Education called the National Foresight Programme: Results Implementation.

The consultation was held with (see Annex No 3): • entrepreneurs, including leaders of regional innovative companies (including spin-offs) and regional clusters, social enterprises, multinational companies, producer groups and organisations of entrepreneurs, • representatives of financial markets, particularly banks, business angels networks, venture capital, pre-seed capital and microloan funds, • representatives of knowledge institutions, including schools, universities and vocational training centres, R&D institutions, technology parks and technology transfer centres, the labour market observatory, • representatives of civil society, political parties and local media, • representatives of public authorities and institutions, especially representatives of provincial authorities, the team drafting the DS LV 2020, the Lublin Enterprise Support Agency, town hall and municipalities, the Regional Directorate for Environmental Protection, the State Provincial Sanitary Inspector in Lublin, the Provincial Labour Office and representatives of the Ministry of Regional Development, the Directorate-General for Regional and Urban Policy (DG REGIO), the S3 Platform and the World Bank. The process of identifying the areas of smart specialisation was performed in two stages. The first one involved identification of endogenous development potentials and directions in regional science, technology and educational specialisation, whereas the second stage covered identification of the areas of smart specialisation of the voivodeship. The results of each of the above stages were compared with a detailed diagnosis of the voivodeship innovation potential16, an analysis of strengths, weaknesses, opportunities and threats (SWOT) and an analysis of political, legal, economic, social and technological (PEST) determinants. Location index numbers specifying the level and the scope of specialisation of economic structure of the region helped to identify endogenous development potentials. Additionally, the following auxiliary materials were used to identify regional scientific and technological specialisation: • an analysis of directions and intensity of R&D and publishing activity of regional universities and R&D institutions, • indices of science, research and technological specialisation (calculated on the basis of a previous analysis). Identification of educational specialisation was done using the available statistical data and findings of surveys conducted at universities located in the region. Identification of smart specialisation areas (as part of the entrepreneurial discovery process) was done using: • three-dimensional sector-science-technology matrix and educational matrix and • assessment of the significance of each potential area of smart specialisation for future

16 Cf. Annex No 1. 18 growth of productivity and competitiveness of the voivodeship economy as well as the future development of supra-regional and international cooperation in the field of research, development and innovation.

Smart specialisation shaped in the course of public debates and consultation structuring the entrepreneurial discovery process

According to the results of social debates, the main area of the voivodeship smart specialisation is bioeconomy (almost half of applications submitted in the course of debates and consultations concerned the development of the bioeconomy-related fields), including: • highly specialised agriculture, nursery production, cultivation of herbs, energy crops (21% of applications), • manufacture of food and food related products (19%), • biotechnology (4%), • chemical industry and manufacture of fertilizers, pharmaceuticals, cosmetics, biodegradable products (2%), • timber industry and manufacture of furniture (2%), • environmental protection and smart technologies in agriculture (2%). The second area of smart specialisation (approximately 11% of applications) refers to generating and consuming energy, including renewable energy sources. Another area of smart specialisation covers broadly defined services, including tourism (8%), medicine and health services (5%), information technology (4%), education (4%), construction (4%), logistics and transport (2%) and professional business services such as BPO17 or KPO18 (2%). Relatively few applications related to niche industries, including the aerospace industry (2%), mechanical engineering (1%) and metal (1%) industry.

17 Business Process Outsourcing 18 Knowledge Process Outsourcing 19 Smart specialisation shaped in the course of analysis of development potentials and directions in regional science, technology and educational specialisation

Endogenous development potentials As previously indicated, the endogenous development potentials cover these areas of business activity which already demonstrate specialisation and have gained, or may gain in the future, competitive advantage on national and/or international scale. In the case of the Lubelskie Voivodeship, such areas include primarily19:

• agri-food industry, • chemical industry, • mining, power industry and manufacture of abrasive products and other non-metallic mineral products, • manufacture of machinery, equipment and vehicles, • manufacture of furniture.

The agri-food industry covers agriculture and food processing. It makes one of the largest, dynamically developing segments of the Lubelskie Voivodeship economy. Farmlands in the region account for 68% of the total area (first place in Poland), and the voivodeship is one of the largest domestic producers of cereals, field vegetables, tree and bush fruit. The Lubelskie Voivodeship is also noted for high level of organic farming development (third place in Poland in terms of the number of organic farms), inland fishing (first place in Poland in terms of carp farming) and agri-food industry, which employs more than 25% of total employment in industry and accounts for one of the basic branches of economy of the region (Box 7). The quality of soil (higher than the national average) and dynamic development of food processing helps the voivodeship to gain the position of a strategic feeder of national, or European, importance.

Box 7: Agri-food processing in the voivodeship economy

All key sectors of the agri-food industry are present in the voivodeship, including fruit and vegetable processing, sugar factories (e.g. in Krasnystaw and Strzyżów), dairy industry (e.g. in Radzyn Podlaski, Chełm, Krasnystaw, Piaski, Ryki), meat processing (e.g. in Łuków, Wierzejki, Lubelskie, Rossosz), brewing (e.g. Browary Lubelskie Perła in Lublin), manufacture of grain mill products (e.g. Zamojskie Zakłady Zbożowe), manufacture of pasta (e.g. Lubella SA, As Babuni), herb business (e.g. Herbapol Lublin SA), manufacture of tobacco products (e.g. Lubelskie Zakłady Tytoniowe) and manufacture of beverages (e.g. Nałęczów Zdrój) and alcohol (e.g. Stock Poland). The development of food processing is characterized by high growth rate and high share (25%, that is by 4.4% higher than the national average and the largest among voivodeships of Eastern Poland)

19 Cf. the values of investment indices presented in Annex No 1. 20 in export compared to the total volume of sales. There are four clusters (e.g. Organic Food Valley, the Lublin Cluster of Food Industry, the Lublin Cebularz, that is the cluster of hotel and restaurant owners) out of the total number of eighteen operating in the food industry.

The agri-food industry is in tune with the well developed chemical industry which has a nearly 13% share of sold production in the region and nearly 6% share in employment makes it the second (after manufacture of food products) most important branch of industry in the region. Nitrogen Plant ZA Puławy SA (Azoty Puławy Group) are the flagship company operating in the chemical industry; this is the country’s first (and second in Europe) producer of nitrogen fertilizers and the third largest manufacturer of melamine (Box 8). The size and operation of the Group for the agri-food industry perfectly fit into diversified development of the region and contribute to the expansion of the areas of smart specialisation, organised around the biggest and most competitive regional companies.

Box 8: Zakłady Azotowe Puławy SA

Zakłady Azotowe Puławy SA employs 4,400 people. Annual operating income amounts to PLN 3.4 billion, and net profit amounts to PLN 600 million. The Group business activity focuses on two segments: (1) chemical products for a number of industries (40% of sales) and (2) fertilizer products for agricultural producers (60% of sales). In accordance with the adopted strategy, by 2017 the Group will become a strong chemical and fertilizer group in Central Europe which will control a chain of values, offer attractive market prices and operate closer to end customer. The main areas of innovation activity of the Group are now focused on: (1) extending the range of fertilizers by modern products and methods of application; (2) improving biotechnology processes in production in order to make greater use of plants and to manufacture environmentally friendly products; (3) extending product chains to include innovative products for the chemical industry made of the existing products and semi-finished products (melamine, caprolactam); (4) optimizing the efficiency of the production process through the system and technological solutions.

Farmlands and rich deposits of coal, natural gas and limestone are the basis for the development of the third important sector of the voivodeship economy - mining and energy industry. Regional resources of biomass (Box 9) and fuels (mainly coal) constitute the base for power industry development.

Box 9: Regional biomass resources

The resources and the nature of agricultural production area as well as the size of the food processing sector create favourable conditions for biomass energy sector to develop. The estimated acreage that can be used for annual energy plants cultivation (without detrimental effects on the food industry) is about 280,000 ha (approx. 18% of the total area in the region), including approx. 170,000 ha of arable lands. The best areas for energy production from biomass include the following counties: Puławski, Opolski, Lubelski, Kraśnicki, Świdnicki, Janowski, Krasnostawski, Zamojski, Hrubieszowski and Tomaszowski.

Rich deposits of coal, natural gas and limestone form the basis for the mining industry development. Coal reserves in the voivodeship account for more than 20% of national reserves while natural gas reserves account to 2.6% of such reserves. Coal mines located in the region provide about 8% of domestic resources. It might increase in the future, mainly due to the investments planned by the coal mine LW Bogdanka SA (new mine shafts in Stefanów near Łęczna), coal company Kompania Węglowa SA in Katowice (investments in the region of Pawłów near Chełm), and the Australian company PD Co sp. z o. o. (planned investments in the municipalities of Cyców, Wierzbica or Siedliszcze). The 21 exploitation of natural gas covers six deposits near Lublin, Dęblin and Biłgoraj. It is very likely to successfully complete the studies on the abundance of regional shale gas deposits and to proceed to their exploitation on an industrial scale by 2020. This will create additional development perspectives for gas exploitation. The limestone extracted mainly from the Chełm area acts as a spur to the cement industry development represented by such major manufacturers as CEMEX Polska (Chełm) and Cement Plant Rejowiec SA. Other important branches of local economy include manufacture of machinery and equipment and manufacture of motor vehicles. These branches generate 6% of the voivodeship economy sold production in industry and bring together many innovative manufacturers developing their own R&D infrastructure (Box 10). Some of them, acting as entities with foreign capital (such as PZL Świdnik SA), make use of external solutions and have access to international markets and knowledge transfer.

Box 10: Leading representatives of the machinery and automotive industry

The traditions of the machinery and automotive industry in Lublin dates back to the 19th century, when the manufacture of first cars started, and to the post-war years, when the manufacture of trucks and tractors started on a large scale. In the ‘90s, French (Peugeot) and Korean (Daewoo) cars were assembled in the former car factory. Currently, the infrastructure is used by such companies as: POL-MOT Warfama SA (manufacture of the Ursus tractors), Honker Car Factory (manufacture of off-road vehicles), Daewon Europe Sp. z o.o. (manufacture of springs and coil springs), SIPMA SA (manufacture of agricultural machinery). The production base supporting the machinery industry is also developing in such centres as: Świdnik (PZL-Świdnik SA, the national leader in the manufacture of helicopters), Mełgiew (CBM Polska, the manufacturer of agricultural machinery), Bełżyce (MEGA Sp. z o.o., the manufacturer of machinery for the food industry), Jastków (SIGMA SA, the manufacturer of mining machinery, Multivac Sp. z o.o., the manufacturer of packaging equipment), Kraśnik (Fabryka Łożysk Tocznych − Kraśnik SA), Janów Lubelski (Caterpillar Poland Sp. z o.o., the manufacturer of machinery for the construction and mining industry, FORTACO, formerly KOMAS Sp. z o.o., the manufacturer of components for machines), Biała Podlaska (AluTeam Polska Sp. z o.o., the manufacturer of trailers, semi-trailers and bodies), Międzyrzec Podlaski (Fabryka Maszyn Rolniczych Meprozet Sp. z o.o.), Dęblin (Wojskowe Zakłady Inżynieryjne SA, the manufacturer of military equipment).

Significant traditions and potential have created favourable conditions for the furniture industry to develop. This sector includes a larger group of companies, including about 130 companies employing more than 9 persons and generating income of PLN 1.7 billion (approx. 6% of the sold production of industry). This industry is mainly concentrated in Zamojski and Biłgorajski counties, a flagship company in this industry is the Black Red White SA Group. (Box 11).

Box 11: The potential of the Black Red White SA Group

The Black Red White SA Group is the largest furniture manufacturer in the country. The Group consists of 20 subsidiaries (such as Atlas, BRW Sp z o.o., BRW Sofa, Convex Glass, Trax, Komplet), including 9 foreign companies located in Ukraine, Belarus, Slovakia, Russia and Bosnia and Herzegovina. The production activity for Black Red White is conducted in 21 plants located in Poland and abroad. The whole Black Red White Group, that is both subsidiaries and cooperating companies, hires in total more than 14,500 employees.

The service industry shapes one more area of endogenous development potentials. Service providers account for nearly 77% of all business entities operating in the Lubelskie Voivodeship, and render primarily medical and health-oriented services as well as education-, information technology- and automation-related services. 22 Many of endogenous development potentials in the Lubelskie Voivodeship are similar to development potentials in other voivodeships in Eastern Poland (Box 12), which forms the basis for development of supra-regional specialisation and creates favourable conditions to consolidate for territorial assets of the entire area of Eastern Poland.

Box 12: Embedded economy sectors of Eastern Poland According to the update of The 2020 Strategy of Social and Economic Development of Eastern Poland, the embedded economy sectors of Easter Poland include: agriculture and food industry, manufacture of rubber and plastic products, manufacture of metal products, furniture industry and timber industry. As stated in the reports prepared by the Polish Information and Foreign Investment Agency, the list of such sectors also includes: aviation industry, renewable energy production, tourism, logistics, manufacture of non-metallic mineral products, machinery industry, textile and clothing industry and construction.

Directions of regional scientific and technological specialisation

The above-identified endogenous development potentials correspond to scientific and technological competences of the region. There are 97 universities and R&D institutions operating in the Lubelskie Voivodeship (Box 13), and their spending on R&D activity is dedicated primarily to research in agricultural, natural, medical and health sciences. Altogether, these fields consume almost 60% of funds which in recent years have been spent in the region on R&D activity.

Box 13: Scientific and R&D institutions of the Lubelskie Voivodeship

Out of the total of 97 research institutions, 37 centres operate in the public sector (universities, research institutions), while the remaining 60 belong to the commercial sector, often acting as R&D centres rendering their services to specific companies. Most public research institutions are located in Lublin and Puławy. In Lublin, these are mainly universities, of which the most important are: Maria Curie-Skłodowska University, Medical University, the University of Life Sciences, the John Paul II Catholic University of Lublin, the Lublin University of Technology. Additionally, research is conducted at the Institute of Agrophysics of the Polish Academy of Sciences and the Institute of Rural Health. In Puławy mainly research institutions are located, including: the Institute of Soil Science and Plant Cultivation − State Research Institute, the National Veterinary Institute, the Institute of New Chemical Synthesis, the Biological Threats Identification and Countermeasure Centre of the Military Institute of Hygiene and Epidemiology in Warsaw, the Apiculture Division of the Institute of Horticulture in Skierniewice. Apart from Lublin and Puławy, educational institutions are also located in Dęblin (Polish Air Force Academy), Zamość, Chełm and Biała Podlaska (State Higher Vocational Schools). As far as commercial R&D centres are concerned, they usually operate in association with larger industrial plants as those in Świdnik (Research and Development Plant of PZL-Świdnik), Lublin (Research and Development Centre of Hajduk Group, R&D Centre INVENTOR Sp. z o.o.), or in Puławy (Echo-Son SA Experimental Facility).

The largest part of these funds is spent on research in the field of agricultural sciences (more than 32% of total spending compared to 7% nationwide) and natural sciences (13%). Approx. 30% (compared to 49% nationwide) was dedicated to research in technical sciences and engineering. The least amount (13%) was allocated to research in social sciences and humanities. 23 The analysis of grants awarded to research workers from regional universities confirms the significance of agricultural and natural sciences, whereas the bibliometric analysis shows distinct specialisation in sciences related to agriculture (soil science and crop cultivation; veterinary science; animal farming; agricultural engineering) and environmental protection (development and protection of natural environment and environmental engineering). The activity of specialist research institutes operating in Lublin and Puławy justifies the choice of such specialisation. Relatively high research potential is also typical of health sciences (developmental period medicine and non-surgical clinical sciences) and social sciences (philosophy, theology, pedagogy, psychology). The bibliometric analysis shows high specialisation in veterinary sciences (almost every third Polish article in this field, indexed in the Web of Science, was written in the Lubelskie Voivodeship, approx. 55% of which in Lublin, and 44% in Puławy). Other fields include: (1) pharmacology and pharmacy, (2) public health, environmental and occupational medicine, (3) environmental science and ecology, (4) agriculture, and (5) food science and nutrition. The h-index that attempts to measure both the productivity and citation impact of articles written in the Lubelskie Region shows high specialisation in: (1) materials sciences, (2) agriculture, (3) nervous system and neurology, (4) botany, (5) oncology and (6) biophysics. The dominance of agricultural, forestry, veterinary, medical and health sciences as well as physical education is fully reflected in the structure of R&D personnel. Other voivodeships of Eastern Poland are noted for similar scientific and technological competences, which increases the probability of establishing supra-regional cooperation that would contribute to the consolidation of the entire scientific potential of Eastern Poland and prevent research workers from duplicating their efforts.

Directions of regional educational specialisation as manpower for endogenous development potentials

According to statistical data, the Lubelskie Voivodeship is noted for relatively high and diverse educational potential at vocational and secondary schools level: • a total of over 13,000 students attend vocational and specialised secondary schools, of which slightly more than 27% study engineering and technology-related subjects; • a total of over 31,000 students attend technical secondary schools; they usually choose such professions as: an IT technician (19.4%), a mechanical technician (9.7%) and a car mechanic (8.1%); • over 23,000 students attend post-secondary schools, of which more than 14% in medical services, while more than 10% in IT. There is, however, a shortage of certain occupations in the region, such as: food industry machinery and equipment operator, heavy industry machinery and equipment operator in the manufacture of rolling bearings, food (fruit and vegetables in particular) processing industry worker, carer for the elderly. These occupations usually require long-term specialised training or regular training combined with practice and professional experience. As far as higher education is concerned, the ratio of students to the Lubelskie Voivodeship population is the highest in Poland and is running at about 9%. At the beginning of the 2012/2013 academic year, there were 90,000 students in the region; most of them studied at universities (43%), technical colleges (12%) and agricultural colleges (11%). Undergraduate students accounted for 60%, graduate students 24 for 23%, and students of long-cycle studies for 15% of the student body. The data confirms that the previously identified endogenous development potentials are supported by regional vocational, secondary and higher education infrastructure, though it is rather insufficient (Box 14).

Box 14: Occupational structure of university graduates In the 2011/2012 academic year, nearly 28,000 students graduated from universities. The majority of them were graduates in medicine and health sciences (11% compared to 8% nationwide), agriculture, forestry and fishing (4% compared to less than 2% nationwide) and biological faculties, including biotechnology (3% compared to 2% nationwide). However, wide choice of faculties at the humanities affects the popularity of technical and engineering sciences, the share of which is 2 percentage points lower than nationwide average. In addition, the number of graduates in information technology is constantly growing (currently more than 500). To improve innovative character of regional economy, it is particularly important to increase the number of graduates in engineering and technology, and implement postgraduate education programme. Presently, there are nearly 3,000 doctoral students studying in the region, which represents 7% of the national share and places the Lubelskie Voivodeship 6th in Poland. However, the structure of doctoral students by fields of science is characterized by substantial percentage (of doctoral students) in the humanities (considerably higher than in other parts of the country: 54% compared to 27% nationwide) and a small proportion of PhD students in the field of technical sciences (3% compared to 17% nationwide).

The following trends expose weaknesses of such infrastructure: • decline of the number of graduates in mathematics, natural sciences and technology in recent years, • lower than average: (1) share of human resources in science and technology20 (HRST) in the population in total and (2) share of core of human resources21 (HRSTC) in HRST, nationwide. This is all the more worrying that the region is characterized by a deepening negative balance of migration referring in particular to people with higher education. It primarily affects people aged 25- 34. People in this age group contribute to nearly half of the negative migration balance. The main destinations of highly educated migrants are the biggest Polish cities, namely: Warsaw, Krakow and the Tricity, an urban area consisting of three major Polish cities in Pomerania: Gdańsk, Gdynia and Sopot, and the basic reason for migration is the lack of prospects on the local labour market. Migration combined with the process of depopulation and ageing reduce innovative capacity of the region.

20 Human resources for science and technology include those that meet at least one of the two conditions: (1) have formal qualifications, i.e. higher education in the field of science and technology (S&T) or (2) do not have formal education, but work in occupations in science and technology, where such education is usually required. 21 The core of human resources include professionals, technicians and associate professionals. 25 Areas of smart specialisation of the Lubelskie Voivodeship

Combining the results of debates and public consultation with three-dimensional sector-science-technology matrix and education matrix reveals four areas of smart specialisation of the Lubelskie Voivodeship22: • bioeconomy, • medicine and health, • information technology and automation, • low-carbon emission energy.

The first of these areas, bioeconomy, is the key smart specialisation in the voivodeship and covers all types of economic activity based on biotechnology, especially: crop and animal production, feeds manufacture and agri-food processing, pharmaceutical and chemical industry, renewable energy sources (biorefineries, biofuels), public health and environmental industries and services (eco-business) including: • the management of pollution level; this segment includes: (1) waste management and recycling, (2) waste water disposal, (3) air pollution monitoring, (4) environment management, (5) land recultivation and groundwater purification, (6) noise monitoring, (7) R&D services regarding environmental protection, and (8) environmental monitoring and laboratory analyses; • management of efficiency of resource use (especially product regeneration, preservation of nature and ecological construction). Particular significance of this area stems from the fact that scientific, technological, educational and economic potential of the Lubelskie Voivodeship focuses primarily on bio-innovative sciences, and the development of bioeconomy will allow the full use of this potential. In addition, bioeconomy: • makes one of the fastest-growing global market (cf. Table 2), which will contribute to the increase of both export of the regional economy and the rate of economic growth, • uses technologies noted for considerable diversity and applicability in other sectors, which will contribute to technology transformation of sectors outside bioeconomy, • provides grounds for international cooperation initiated by the Lubelskie Voivodeship with excellent prospects for development, which will help to incorporate the region into the global bio-economic innovation chain faster and more effectively. One of the bioeconomy segments refers to public health but in its part based on biotechnologies; hence, the remaining segments of public health make complementary area of smart specialisation dedicated to medicine and health. This area is likely to successfully develop due to such endogenous factors as: (1) a large number of entities providing medical and health-oriented services, (2) ongoing research conducted in the field of medical, pharmaceutical and health sciences as well as (3) a large number of graduates in medicine and medicine-related sciences. Its development is also stimulated by external factors such as ageing of the population and growing demand for medical and related services (nursing, spa treatment, recreation, etc.; see: Table 2). Furthermore, development of medical and health-oriented services is complementary to the key specialisation (bioeconomy) of the region, especially in relation

22 Detailed grounds to be found in Annex No 1. 26 to food production chain (e.g. in the areas of functional foods, nutrition and dietetics) and bio-medical products chain based on organic resources (e.g. manufacture of pharmaceutical products and probiotics).

Moreover, medical and health-oriented services, just like bioeconomy and eco-business, belong to the fast-growing markets owing their development to both civilization and demographic changes as well as technological breakthroughs in the healthcare system made in recent decades. The elements that constitute these breakthroughs, deep-rooted in R&D and technological potential of the voivodeship, include: technologies/R&D services for the purposes of telecare, telemedicine, e-health, pharmacogenomics, diagnostics and gene therapy, bio-informatics, minimally invasive surgery, the application of nanotechnology to human healthcare, tissue engineering, artificial organs and bio-artificial replacement organs, regenerative medicine, xenotransplantation etc. These breakthroughs also led to the development of medical services sector which is now embedded in the structure of regional economy. The services rendered include spa treatment, healthy food, physical activity etc., successfully used in treating diseases and preventing them. Increasing personalization and individualization of health care as well as patient empowerment are also of vital significance.

Low-carbon emission energy sector is an emerging area of smart specialisation of the voivodeship. It draws on the potentials of both conventional power industry based on rich deposits of coal and gas (natural and shale) and renewable energy sources based on energy from biomass, sun, wind and water. These potentials provide a strong impetus for many investment activities in the region, particularly those connected with the following processes: (1) opening new coal mines in the Lublin − Łęczna − Chełm mining and energy basin and (2) exploring shale gas formation on a full scale (according to preliminary findings, pre-identified shale gas deposits might be the richest nationwide). These processes involve the construction of two power plants (one with gas and steam block of 900 MW capacity in Puławy and the other based on coal in the area of Rejowiec Fabryczny of 1,600 MWe capacity) in the future. Such projects are supported by the EU and national policies aimed at promoting renewable energy sources within the 3x20 energy and climate package and implementing the European Strategic Energy Technology Plan (i.e. the SET-Plan), which envisages the development (by 2020) of eighteen strategic low carbon technologies, including eight based on renewable energy sources (Table 2). The potential of the Lubelskie Voivodeship creates excellent conditions for some technologies to develop (e.g. clean fossil technologies, bioenergy production, smart energy systems). The last area of smart specialisation covers information technology and automation focus upon the needs of the three previously mentioned specialisations.

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31 Both information technology and automation affect many areas of science and technology and as a result of the convergence process and technology integration they form a new range of innovative products and services. This specialisation is likely to develop successfully due to: (1) an increasing internal potential, including scientific potential in the field of optoelectronics and photonics, (2) a large number of students and university graduates in information technology and automation, (3) a growing number of firms operating in industries related to information technology and automation, and (4) a growing demand for solutions in the field of information technology and automation from the related industries, such as the machinery, automotive, electronics, aviation industry and mechatronics – a newly emerging field of engineering (Box 15).

Box 15: Mechatronics Mechatronics is a discipline combining automation, robotics, mechanical, electrical and computer engineering used to design and manufacture modern equipment. Furthermore, the mechatronic sector is a synergy combination of precise mechanics, electronic steering and system thinking to design products and production processes.

The development of this specialisation is also supported by external factors (Table 2), including the processes of digitization of society, sharing digital resources in addition to automation of production and services provision in Poland and in the world. In the era of globalization, comprehensive development of IT tools and automated production processes positively affects innovation and competitiveness not only of the existing specialisation, but also those outside their immediate sphere of influence. All of the above areas of smart specialisation are characterized by well-developed cluster initiatives (Box 16).

Box 16: Cluster initiatives At the end of 2012 there were 18 cluster initiatives formally registered, most of which are based in Lublin. Cross-section of industry clusters reflects − to a large extent − the structure of regional economy and its strong links with the agricultural sector. Currently, there are 3 clusters operating in the food industry (e.g. Organic Food Valley, the Lublin Cluster of Food Industry Association, the Lublin Cebularz, that is the cluster of hotel and restaurant owners), 1 in the metal industry (Eastern Cluster of Metalworking), 1 in the timber industry (the Lublin Timber), 1 in the renewable energy sector (the Lublin Eco-Energy Cluster) and 2 in the field of information technology (Eastern ICT Cluster, the Lublin ICT Cluster). Other clusters operate in the service sector. Attention needs to be paid to the supra-regional cluster named „Aviation Valley” (it is located in Rzeszów and integrates seven companies from the Lubelskie Voivodeship operating in the aviation industry) and such emerging development initiatives as: Health and Beauty Cluster in Nałączów, Local Tourist Organisation under the name „The Land of Loess Gorges”, the „Lublin Medicine” Medical and Health Services Cluster co-created by the Medical University in Lublin and the City of Lublin, Innovation Design and Fashion Cluster and the Lublin Aviation Advanced Technologies Cluster. One of the latest initiatives is the Lublin Land of Mechatronics, a joint venture of Marshal Office of the Lubelskie Voivodeship, the City of Lublin, regional universities, vocational schools and local entrepreneurs.

All these cluster initiatives overlap, they are complementary to each other and cover these fields of business activity that are specific for the economic, scientific and technological specialisation of the voivodeship. Moreover, these areas have already gained, or may gain in the future, a competitive advantage on a national and/or international scale; they are noted for well-developed cluster initiatives and creation of sufficient critical mass able to create new paths of development for the region, 32 particularly with regard to: • accelerating structural changes specified in the RSI LV 2020 mission, which is even more likely because the range of applications of technologies developed within smart specialisation exceeds individual sectors and encourages entrepreneurs to undertake new types of activity, currently absent in the economic structure of the region, • developing creative innovation model that not only combines local knowledge with national and foreign knowledge but also develops an ability to identify new needs, create new technological and non-technological solutions and create co-inventions essential for the growth of efficiency of regional economy, • incorporating the voivodeship into global chain of innovations and development of interregional cooperation in Eastern Poland, supra-regionally and internationally. Pursuing such a path requires the entrepreneurial discovery process to be continued, even after the RIS LV 2020 adoption by the Regional Assembly of the Lubelskie Voivodeship, especially with regard to the identification of research, development and innovative priorities. The entrepreneurial discovery process will be continued under the RIS LV 2020 through: • a pilot programme entitled Regional Programme of Research in the Areas of Smart Specialisation, aimed to: (1) determine priorities of integrated regional research agenda for the development of smart specialisation and (2) design and test regional technology observatory, which will combine monitoring of new and emerging technologies with identification methods for the areas where they are applicable, estimating the market potential and defining basic support instruments used to determine and/or accelerate the commercialisation of new solutions; • a type of action under Priority 1 (Measure 1.4: stimulating and developing a network of cooperation between business entities, that is an autonomous instrument aimed to establish common research agenda for each regional smart specialisation area, including R&D priority projects relevant to the growth of companies operating in these areas); • a course of action under Priority 3 (Measure 3.2: development of efficient and open to innovation public administration bodies, that is an instrument aimed to establish a mechanism for ensuring the continuity of the entrepreneurial discovery process).

Incorporating into the RIS LV 2020 the procedures for continuing the entrepreneurial discovery process has emphasized the dynamic nature of the strategy and offered opportunities for searching narrower specialisation niches and/or new areas of smart specialisation. The effects of continuous entrepreneurial discovery process will be periodically used to update the areas of regional smart specialisation without the necessity to initiate a formal revision of the strategy. The RIS LV 2020 is expected to be updated for the first time in 2016.

33

oObjectives, priorities and courses of actions

The principal objective of the RIS LV 2020 is to initiate technological and non-technological transformation of endogenous development potentials of the region through selective, smart specialisation-based development model and implementation of creative innovation.

34 Objectives, priorities and courses of actions of the RIS LV 2020

The RIS LV 2020 objectives

Specific objectives of the strategy include: • developing territorial capital (Box 17), especially in the areas of smart specialisation, • strengthening the regional research and innovation system to be based on the quadruple helix that joins together all stakeholders interested in the cooperation, • incorporating the region into the national as well as international chain of innovation and cooperation network, • developing effective instruments to support innovation and competitiveness of the voivodeship economy, • stimulating dynamic advantages of the location, especially in the form of: (1) strengthening business environment institutions, (2) developing market services for business and (3) developing financial markets significant to the increase in demand for innovation from all companies, both these located in regional and supra-regional smart specialisation areas and these operating outside of such areas.

Box 17: Territorial capital

The territorial capital combines the region resources, especially the components that form the basis for the voivodeship development potential (introducing new ideas and commercialising new technological knowledge and more radical innovations) and absorption potential (i.e. acquiring, broadening, transforming and using the existing local and external knowledge to create and commercialise more incremental innovations).

In order to achieve the above objectives, the barriers that are slowing down the development of the areas of smart specialisation as well as the entire voivodeship need to be broken down quickly. These barriers include primarily23: • low demand for innovation: low level of entrepreneurship, including technological entrepreneurship, measured by the number of companies per 10,000 residents (Box 18); low innovation potential measured by spending on innovative activities; low innovative activity of firms measured by spending on innovative activities per employee and low level of commercialisation of innovations measured by the share of innovative products in net revenues from sales of products in general; • poor supply of innovations: relatively low level of development of the science sector; lower than the average nationwide share of employment in the science sector compared to employment in total; low scientific potential of universities estimated on the basis of the position of regional universities in national rankings of universities and the intensity of national and international

23 A detailed description of the barriers is given in Annex No 2. 35 research cooperation, and weak participation of regional R&D institutions in national and international research programmes and cooperation networks; • inefficient system for research and innovation support and system for knowledge and technology transfer as well as relatively low level of qualifications of employees working in business environment institutions (BEI): low level of participation of R&D centres in creation and distribution of innovations to the business sector; little companies' interest in cooperation with regional R&D sector and business environment institutions; dominance of external, foreign sources of innovations transferred mainly through the purchase of machinery and equipment; relatively undeveloped financial markets, especially venture capital; relatively low level of competence of employees of entities providing pro-innovative services.

Box 18: Technology entrepreneurship

Technology entrepreneurship refers to all projects related to commercial use of research findings and potential of research institutions, enterprises and independent inventors. The essence of technology entrepreneurship are technology companies established in order to develop and commercialise technologies. They are noted for high technological competence which is of particular importance in the process of stimulating and introducing innovation, in transfer of knowledge and technology and creation of new jobs. Distinctive features of technology companies also include: (1) high share of spending on R&D in relation to sales value; (2) high share of employees with experience in the R&D sector; (3) focus on few products characterized by high level of novelty; (4) regular contacts with research institutions; (5) continuous introduction of new products on the market.

These barriers become extremely important in the context of the analysis of strengths, weaknesses, opportunities and threats typical of today’s economic, innovative, scientific, technological and institutional potential of the voivodeship (Table 3).

36 Table 3. The SWOT analysis of economic, scientific, technological and institutional potential of the Lubelskie Voivodeship Table 3: The SWOT analysis of economic, scientifi c, technological and institutional potential of the Lubelskie Voivodeship

Strengths Weaknesses

Business sector

concentration of economic potential of the region in relatively low level of entrepreneurship, the following sectors: bioeconomy, medicine and including technology entrepreneurship health, information technology and automation and low level of innovation of enterprises, low low-emission energy production propensity to innovation and low and numerous personnel forming the grounds for decreasing spending on innovative activities knowledge-based economy, especially in the areas dominance of imitation (purchasing finished of smart specialisation and promotion of pro- products, machinery and equipment and innovation attitudes implementing new products/services, but prospective international cooperation in the areas mainly within a given company) over innovation of smart specialisation (developing new products, services and significant number of cluster initiatives in technology processes nation- and worldwide) the areas of smart specialisation and considerable relatively low propensity to cooperation number of companies around which cooperation between entrepreneurs and between business network will be established (companies, R&D and research institutions in the voivodeship as institutions, etc.) well as nation- and worldwide the structure of education, additional training and retraining of personnel do not correspond to the needs of the development of regional smart specialisation areas, especially with reference to engineers, technicians and researchers

The science sector and the business environment sector

concentration of scientific, technological and weak financial standing of the R&D sector; low educational potential of the region in the areas of level of R&D funding in relation to GDP per one smart specialisation employee in addition to passivity and limited relatively high employment in the field of R&D effectiveness in winning domestic and foreign compared to the average in the country, especially grants and lack of market orientation in R&D in the areas of smart specialisation activities strong research groups working in several centres, universities mainly teaching-oriented highly rated on the national level and in the low degree of networking in the science sector European Union in the areas of industrial attachment to stereotypes, resistance to biotechnology changes and low level of mobility and recently expanded R&D infrastructure supporting entrepreneurship among R&D personnel technology transfer and better laboratory small number of spin-outs and spin-offs in equipment in research institutions relation to the number of R&D personnel considerable number of business environment low level of social capital understood as mutual institutions evenly distributed throughout the trust and a low degree of cooperation between voivodeship with good technical infrastructure different entities operating in the innovation the beginnings of an institutional system for system, including cooperation between science knowledge and technology transfer and economy lack of appropriately trained and motivated personnel in the business environment institutions resulting in (1) inadequate and poorly adapted offers compared to the needs of

41 the entrepreneurs, and (2) passivity and ineffectiveness in the transfer of knowledge and commercialisation of R&D , monopolization of the market by several business environment institutions (e.g. concerning access to guarantees and loans) poorly developed system for institutions financing innovations from the extra-budgetary funds

Public administration

growing awareness and openness of public dispersion and lack of coordination of activities administration bodies to provide new solutions and in the area of regional system for innovations innovation policy instruments relatively low personnel and organisational capacity of regional public administration to implement the strategy and develop smart specialisation of the region

Opportunities Threats

development potential of the areas of regional unfavourable demographic trends and smart specialisation (see: Table 2) worsening migration processes, especially favouring Eastern Poland voivodeships in national among young and educated people and EU strategies strong competition regarding the access to inflow of structural funds allocated for targeted development resources from other development goals voivodeships, including the remaining voivodeships of Eastern Poland good prospects for further increase of the voivodeship transport availability as a result of the continuing image of the voivodeship as a termination of investments made in the 2007-2013 peripheral region, deepening the development financial perspective and taking new ones in the gap and deteriorating investment attractiveness years 2014-2020 of the region causing difficulty in the inflow of new capital and technologies incorporating the region into the network of scientific cooperation, both between other networks inconsistent and unstable legal system, as well as leading centres in the country and abroad including financing the science sector and cooperation between science and economy excessive fiscal policy unnecessary concentration of state policy on short-term economic calculation discouraging local authorities from high spending on innovative activities with long-term return on investment globalization as an element limiting competitiveness of the region’s economy, particularly in the area of agriculture and agri- food processing

 42 The rIS Lv 2020 prIorITIeS and courSeS of acTIonS

The priorities and actions recognized in the RIS LV 2020 help to overcome the above barriers and to achieve the set objectives. When identifying the priorities and actions, the assessment of the effects of already completed pro-innovation projects and the evaluation of implemented programmes were taken into account. They indicate that the previous approach to support innovations, based mainly on supply instruments, turned out to be insuffi cient and has not produced the desired increase in the level of innovation and competitiveness of the economy (Box 19).

Box 19: Effectiveness of previous instruments to support innovation

The main sources of support for innovation in the region include: the Regional Operational Programme of the Lubelskie Voivodeship for the years 2007-2013 and partially the Human Capital Operational Programme (at regional level); the Development of Eastern Poland Operational Programme (at macro-regional level); two operational programmes Innovative Economy and Human Capital (at national level). Assuming that changes in the level of innovation become noticeable after at least two to fi ve years from the implementation of specifi c support mechanisms, then the effectiveness of pro-innovative instruments used in accordance with these programmes seems to be quite limited (decrease in the years 2009-2011 of the percentage of innovative companies compared with the same percentage of such companies in the years 2004-2006). It is, however, important to keep in mind that such a situation is also caused by external factors (economic slowdown, lower investment activity of enterprises in the fi eld of modernization of their manufacturing and service base). Also the results of the Development of Eastern Poland Operational Programme confi rm the ineffectiveness of previous support instruments. The evaluation shows that the main obstacles to the expansion of R&D infrastructure include: lack of compatibility of research carried out with the needs of the economy and unpreparedness of local companies for the use this infrastructure. On the other hand, the following factors constitute barriers to establish and expand industrial parks, technology parks, business incubators and technology incubators, centres of excellence and centres of technology transfer: (1) insuffi ciently qualifi ed personnel with no practical experience in the development and support of innovative entrepreneurship, and (2) slight interest of entrepreneurs in the services offered by these institutions.

This is why the RIS LV 2020 is open to new activities and envisages that: • supply and demand innovation support instruments will be used in a more sustainable way (Box 20), • private funds will be involved to a larger extent, and • directions in interventions will be gradually adjusted to new needs and new challenges emerging over time together with the development and evolution of the areas of regional smart specialisation (in accordance with relevant implementing documents).



Box 20: Supply and demand innovation support instruments

Supply instruments to support innovation include primarily: (1) grants awarded to R&D institutions for infrastructure expansion and research activity and to companies for research activity, training, education and mobility; (2) capital support and feedback instruments, and (3) services (information and brokerage, network creation/development). Demand instruments to support innovation include: (1) system policies (establishment/expansion of clusters and networks around the added value chain); (2) innovative public procurement (direct, cooperative, catalysing and pre-competitive), and (3) regulatory instruments (standardization and certification, technology platforms created to coordinate the development of technologies, including legal regulations and standardization).

These assumptions underlie three priorities that constitute the RIS LV 2020 framework for intervention. These priorities include (Figure 3): Priority 1 Increasing the ability of business entities to create and absorb knowledge and implement innovations, particularly in the areas of regional smart specialisation. Priority 2 Increasing the ability of entities operating in the science and research sector to create and commercialise knowledge in the areas of regional smart specialisation. Priority 3 Strengthening business environment institutions and public administration bodies open to innovations.

These priorities are coupled with trends and types of activity set for the years 2014-2020 forming flexible streams of interventions that will be: • elaborated in implementing documents to the RIS LV 2020, especially in: (1) documents attached to the Regional Operational Programme for the Lubelskie Voivodeship for the years 2014-2020, which is one of the main sources of the RIS LV 2020 funding in this period (in addition to the sources coming from the private sector and national operational programmes), (2) sectoral, regional and supra-regional research agenda, and in (3) other documents adopted by the Board of the Region. The following aspects will undergo elaboration: the project type, scale, scope and limit values, the type of beneficiaries, the structure of non-returnable and returnable instruments involved in each action, the project selection procedures, etc.; • successively revised and adapted to the changing needs. The first revision should be conducted on the occasion of the first continuous update of the strategy to be provided in 2016.

According to the 2030 perspective defined in the DS LV 2020, these courses of actions will continue to evolve, which will not require the revision of the strategy itself.

40 Figure 3: The RIS LV 2020 priorities

The mission and vision of the RIS LV 2020: popularization of selective, smart specialisation-based model of development and implementation of creative innovation leading to transformation of endogenous development potential of the Lubelskie Voivodeship. The RIS LV 2020 objectives (1) developing territorial capital, especially in the areas of smart specialisation, (2) strengthening the regional research and innovation system to be based on the quadruple helix that joins together all stakeholders interested in the cooperation, (3) incorporating the region into the national as well as international chain of innovation and cooperation network, (4) developing effective instruments to support innovation and competitiveness of the voivodeship economy, (5) stimulating dynamic advantages of its location.

incrEasing thE ability of businEss EntitiEs to crEatE and absorb knowlEdgE and implEmEnt innovations, particularly in arEas of rEgional smart spEcialisation

The fi rst priority breaks down the barriers associated with low demand for innovation and covers fi ve directions of the intervention:  • Measure 1.1: stimulating the development of entrepreneurship, especially technology entrepreneurship. One of the weaknesses of economic, scientific, technological and institutional potential of the Lubelskie Voivodeship is a relatively low level of entrepreneurship, including technology entrepreneurship. Technology entrepreneurship is crucial for commercialisation, technology transfer and deeper restructuring of the economy, which comes down to growing importance of medium and high technology sectors and knowledge-intensive services. Although technology transformation is not the only objective of the RIS LV 2020, it does – due to the need to raise the technological level of the voivodeship economy – play an important role. As part of this direction, it is expected to use the world’s best experiences (Box 21) to prepare the following types of activities: - launching a pilot programme called Technology Entrepreneurship, - launching an integrated programme supporting new, innovative start-ups, especially knowledge-based companies and engineering firms: development of the concept, pilot implementation, evaluation and improvement, development of procedures for incorporating the programme into a set of standard instruments under the RIS LV 2020,

- launching an integrated programme supporting fast-growing companies: development of the concept, pilot implementation, evaluation and improvement, establishment of procedures for incorporating the programme into a set of standard instruments under the RIS LV 2020,

- launching an integrated programme supporting companies undergoing internationalization (including immediate internationalization24): development of the concept, pilot implementation, evaluation and improvement, establishment of procedures for incorporating the programme into a set of standard instruments under the RIS LV 2020.

Box 21: An example of an integrated programme supporting technology entrepreneurship

The Commercialisation Australia (CA) programme was implemented in 2010. It is addressed to researchers, entrepreneurs and innovative companies and its purpose is to support undertaking new business ventures based on intellectual property. Such support is highly individualized, tailored to the needs of individual beneficiaries and covers all key stages of the commercialisation process. Forms of support under the CA include: (1) grants awarded to business entities to acquire skills and knowledge in the amount of up to AUD 50,000 (USD 39,000) and to cover the costs of specialised consultation and services; (2) grants to cover the costs associated with access to experienced management staff amounting to AUD 200,000 (USD 156,000) for a period of 2 years. These funds are to contribute to the recruitment of experienced managers, development of skills, improvement of knowledge and establishment of contacts necessary to commercialise new ideas; (3) grants awarded to test the ideas and new products, processes or services in the amount from AUD 50,000 (USD 39,000) to AUD 250,000 (USD 195,000); (4) returnable grants for early stage of commercialisation in the amount from AUD 250,000 (USD 195,000) to AUD 2 million (USD 1.6 million) to develop new product, process or service for as long as it takes to market such product, process or service. Each beneficiary invited to participate in the programme is assigned to an individual adviser/manager to lead him through the commercialisation process and provides access to experienced mentors specializing in business and operating on a voluntary basis.

24 The so-called born globals. 42 • Measure 1.2: increasing the level of innovation of already operating companies.

Low level of innovation of enterprises, low propensity to innovations or low and decreasing spending on innovative activities and dominance of imitation (purchasing finished products, machinery and equipment and implementing new products/services, but mainly within a given company) over innovation (developing new products, services and technology processes nation- and worldwide) comprise the weaknesses of economic, scientific, technological and institutional potential of the Lubelskie Voivodeship. This leads to an excessive attachment to (short-lived) lower-level advantages, including lower labour costs, and cutting the number of investments in higher-level advantages. Such situation is a consequence of unsatisfactory level of innovation, which is also evidenced by weak position of the region in European rankings of innovation and competitiveness. Thus, three types of actions will be undertaken under this measure:

- integrated support programmes, - application projects, - autonomous instruments of support. Integrated support programmes will cover the concept formulation, pilot implementation and development of dissemination model of comprehensive actions oriented to:

- boosting research and development potential of companies by combining actions aimed at creating or extending the R&D infrastructure in enterprises and establishing corporate R&D centres;

- increasing the level of implementation of research findings and innovative solutions in companies through actions aimed at: (1) supporting the acquisition of intellectual property rights, (2) adjusting the assets of a given company to the needs of implementation of the new process, product, or service, (3) stimulating marketing and organisational innovations (market analyses, marketing strategy development, etc.) and (4) encouraging education, training and retraining of employees and managers;

- designing and introducing non-technological innovations in companies, including social innovations. The purpose of application projects will be to provide funds for industrial R&D work carried out by individual companies or consortia and research enterprises and institutions. Finally, autonomous instruments will be used to support:

- selected elements of the innovation process, - the purchase of services necessary to stimulate innovations (innovation vouchers), - the process of introducing innovation management tools in companies along with regional base used for sectoral benchmarking (technology and innovation audit),

- incorporating agricultural producers into the food supply chain by supporting: quality systems, promotion of local markets, horizontal and vertical cooperation, new opportunities for networking and marketing, development of short supply chains and the establishment of producer groups as well as other organizations contributing to innovation. Implementation of such instruments will be preceded by a collection of good practices and pilot actions.

• Measure 1.3: knowledge and skill developing of industrial personnel (employees and managers).

According to previously presented diagnosis, the endogenous development potentials do not have sufficient regional vocational, secondary and higher education infrastructure. Thus, the following types of actions will be undertaken under this measure: 43 - integrated programmes of industrial personnel professionalisation, including actions aimed at increasing awareness of the necessity to adapt one’s skills to the labour market needs in line with the smart specialisation of the region,

- individualized learning, training and retraining tools for industrial personnel (employees and managers).

• Measure 1.4: stimulating and developing a network of cooperation between business entities. This applies to supporting the formation of both trade associations (e.g. cooperatives and groups of agriculture producers) and cross-industry structures, especially clusters and platforms for cooperation involving the scientific and research sector.

One of the weaknesses of economic, scientific, technological and institutional potential of the Lubelskie Voivodeship is its relatively low propensity for cooperation between enterprises and between enterprises and research institutions. This phenomenon is noticeable both in the voivodeship as well as nation- and worldwide. Meanwhile, in the light of contemporary theories of innovation various forms of cooperation (e.g. associations, clusters, R&D networks, etc.) play a vital role in raising the level of innovation of companies and regions. Therefore, the following tools are expected to be used under this measure:

- the Partnership, Networks and Clusters pilot programme, - an integrated project encouraging networking/cluster initiatives, especially those oriented to the development of interregional, supra-regional and international cooperation,

- autonomous instruments supporting the development of already existing network and cluster structures,

- autonomous instruments dedicated to the professionalisation of network/clusters integrators (personnel/organisations involved in networks/clusters management),

- autonomous instruments used to establish common research agenda (sectoral programmes) for specific regional smart specialisation areas, covering key R&D projects, relevant to the development of the companies located in those areas.

• Measure 1.5: developing financial engineering for innovation used to adapt, to a greater extent than before, the type of financial support to the nature of innovation (both repayable instruments and grants).

Technology commercialisation, especially the transition from the prototype stage and experimental production to the commercial production, involves an increase in capital spending. Meanwhile, most of state aid finishes at the stage of experimental production. The resulting financial gap inhibits the process of technology commercialisation and reduces the company’s ability to innovate. At the same time, the analysis of the strengths and weaknesses of economic, scientific, technological and institutional potential of the Lubelskie Voivodeship clearly shows the lack a well-developed system for institutions financing innovations from extra-budgetary funds. Thus, the following actions are going to be taken under this measure: − analysing the possibility to provide regional financial engineering for innovation, which will be the basis for designing and introducing regional and supra-regional innovation funding mechanisms (both repayable instruments and mixed ones), − launching the Financial Engineering for Innovation pilot programme.

44 Increase in the ability of business entities operating in the science and research sector to create and commercialise knowledge in regional areas of smart specialisation

The second priority breaks down the barriers associated with low supply of innovation and provides for three courses of actions:

• Measure 2.1: increasing in the ability of R&D personnel to create and transfer knowledge for the development of smart specialisation of the region. The analysis of strengths and weaknesses of economic, scientific, technological and institutional potential of the Lubelskie Voivodeship shows that: (1) universities are mainly teaching-orientated, (2) the degree of networking in the science sector is low, (3) entrepreneurs and research workers are attached to stereotypes and resistant to changes, (4) the level of mobility and entrepreneurship among R&D personnel, social capital understood as mutual trust and the degree of cooperation between different entities operating in the innovation system, including cooperation between science and economy, are low, (5) the number of spin-outs and spin-offs in relation to the number of R&D personnel is small. Therefore, three integrated projects are expected to be launched under this measure:

- the first one is dedicated to preparing regional R&D personnel to transfer knowledge for the development of smart specialisation of the region; it is based on five pillars decisive to the success of technology transfer, namely: 1) market orientation, (2) organisational culture, (3) organisation and management of technology transfer, (4) intellectual property management and (5) cooperation with the environment,

- the second one is oriented to the transfer and adaptation of good practices in the area of knowledge creation and transfer for the development of smart specialisation in the region,

- the third one is dedicated to implementation of a mechanism for regular expert dialogue between science and economy (presentations, workshops, exhibitions as well as initiating a day-to-day dialogue between science and economy).

These actions will be complementary to those defined under: Measure 1.1: stimulating the development of entrepreneurship and Measure 1.4: stimulating and developing a network of cooperation between business entities.

45 • Measure 2.2: increasing the effectiveness of the use of R&D infrastructure to conduct and commercialise research in the fields connected with smart specialisation of the region. One of the strengths of scientific, technological and institutional potential of the Lubelskie Voivodeship is its recently expanded research infrastructure supporting technology transfer and better laboratory equipment in R&D institutions. However, poor financial condition of the R&D sector, low level of financing research in relation to GDP per person employed, passivity and ineffectiveness in obtaining domestic and foreign grants and lack of market orientation in R&D activities constitute barriers to the effective use of this infrastructure. The following types of actions are going to be taken under this measure:

- a pilot programme operating under the name Regional Research Programmes in the Areas of Smart Specialisation, aimed to: (1) establish an integrated regional research agenda for the development of smart specialisation and (2) design and test regional technology observatory, which will combine the monitoring of new and emerging technologies with identification methods for the areas where they are applicable, estimating their market potential and defining basic support instruments to determine and/or accelerate commercialisation of new solutions;

- an integrated programme of professionalisation of R&D infrastructure management. These actions will be complementary to those defined under: Measure 1.4.: stimulating and developing a network of cooperation between business entities.

• Measure 2.3: raising importance of Lublin science sector in the areas of smart specialisation at the national and international level.

The analysis of the strengths of economic, scientific, technological and institutional potential of the Lubelskie Voivodeship shows that the region has: (1) concentrated scientific, technological and educational potential in the areas of smart specialisation, and (2) successful research teams of international renown, working in several regional centres. This creates an excellent starting point to create a research and innovation centre of excellence in at least one regional area of smart specialisation, such as the bioeconomy sector. Therefore, the following tools are expected to be used under this measure:

- an integrated programme to support research institutions in their preparation to participate in national and international research projects,

- an interregional research agenda, - a research programme of virtual institutions, - an international research agenda within the bioeconomy sector.

These actions will be complementary to those defined under: Measure 2.2: increasing the effectiveness of the use of R&D infrastructure to conduct and commercialise research in the fields connected with intelligent specialisation of the region.

46 Strengthening the business environment institutions and public administration bodies open for innovations

The last priority breaks down the barriers associated with inefficient system for research and innovation support and the system for knowledge and technology transfer as well as relatively low human resources and organisational capacity of public administration bodies as regards implementation of research and innovation strategies for smart specialisation. This priority covers three courses of actions:

• Measure 3.1: transformating business environment institutions into regional growth centres. In recent years, quantitative development of business environment institutions has been noted, which resulted in: (1) a large number of such institutions, evenly distributed in the region, with advanced technical infrastructure, (2) the origins of institutional system for knowledge and technology transfer. The weakness of this system lies in the lack of appropriately trained and motivated personnel in the business environment institutions resulting in (1) inadequate and poorly adapted offers compared to the needs of the entrepreneurs, and (2) passivity and ineffectiveness of such institutions in the transfer of knowledge and commercialisation of R&D. Hence, four integrated programmes are expected to be initiated under this measure:

- a programme offering organisational and training support for business environment institutions, aimed at staff professionalisation (training, workshops, conferences, interregional and international exchange of experiences and good practices, guidebooks, etc.);

- a programme of technology commercialisation and transfer to be based on the experience gained during the execution of a pilot programme entitled Regional Growth Centres;

- a programme promoting participation in national and regional systems of certification of services provided by business environment institutions, addressed to various companies and aimed at improving the quality of the services rendered and increasing the transparency of actions;

- a programme of business environment institution benchmarking.

• Measure 3.2: developing efficient and open to innovation public administration bodies. The diagnosis of innovative potential of the Lubelskie Voivodeship indicates a growing awareness and openness of public administration bodies to new solutions and innovation policy instruments. On the other hand, however, this diagnosis also points out to: (1) dispersion and lack of coordination of actions in the area of regional innovation system, and (2) relatively low human resources and organisational capabilities of public administration bodies as regards implementation of research and innovation strategies for smart specialisation. These weaknesses of regional public administration become significant in the context of: (1) growing importance of good governance emphasizing, for instance, wide public participation in all stages of development of various policies (from concept to implementation) and integration of various policies implemented at different levels in order to ensure their complementarity and ease of understanding, and (2) the necessity to preserve the continuity of the entrepreneurial discovery process. Thus, it is expected to: 47 - establish a mechanism ensuring continuity of the entrepreneurial discovery process, - launch an integrated programme to create and develop a system for innovative public procurement, covering: 1) organisational and training support for innovative public procurement addressed to local self-government units and business environment institutions (training, workshops, conferences, interregional and international exchange of experiences and good practices guidebooks, etc.) and (2) development, testing and implementation of innovative public procurement models. The programme will be based on experiences gained during the execution of a pilot programme entitled Innovative Public Procurement.

These actions will be complementary to those defined under Priority 1.

• Measure 3.3: promoting entrepreneurship and innovation.

Low level of entrepreneurship and innovation are the two most important barriers to transformation of the Lubelskie Voivodeship economy. Therefore, an integrated programme of intensive promotion of entrepreneurship and innovation is expected to be launched. Its purpose will be to (1) encourage the stakeholders to built up an innovative environment which will favour new pathways of the region’s development, (2) build a culture of innovation and (3) unlock the potential of entities operating within the system using knowledge and experience coming from interregional cooperation.

48 Pilot programmes

As previously indicated, current approach to innovation support has not resulted in a noticeable increase in the level of innovation and competitiveness of the economy. This is why the RIS LV 2020 opens up to new actions and creates a new instrument – pilot programmes. Pilot programmes initiate the regional innovation laboratory for systematic search for solutions (courses and types of actions and specific projects). They also better adjust directions and forms of intervention to the changing needs and challenges related to the development of regional smart specialisation areas.

Pilot programmes: • are inspired by good practices collected by the OECD and the Pro Inno Europe platform and actions recently undertaken in the region, dedicated, for example, to academic entrepreneurs and business brokers, • take the form of umbrella initiatives aimed at testing new instruments, evaluating their effectiveness and preparing procedures for popularizing the most effective solutions25.

The first pilot programmes cover six areas: • regional research programmes in smart specialisation areas, • technology entrepreneurship, • partnership, networks, clusters, • regional growth centres, • financial engineering for innovation, • innovative public procurement. Regional research programmes in smart specialisation areas

The purpose of such programmes is to stimulate innovation supply by: • establishing an integrated regional research agenda for the development of smart specialisation, • designing and testing regional technology observatory which will combine the monitoring of new and emerging technologies with identification methods for the areas where they are applicable, estimating their market potential and defining basic support instruments used to determine and/ or accelerate the commercialisation of new solutions (Box 22).

25 The so-called mainstreaming. 49 Box 22: Good practices regarding technology observatories The Sectoral e-Business Watch is a good example of an advanced technology observatory. It was implemented in the years 2007-2009 at the request of the European Commission and designed as an instrument to increase competitiveness of the IT sector and popularize information and communication technology (ICT) in all European companies. The specific objectives of the observatory include: • analysis and evaluation of the impact of ICT on individual companies, sectors and the economy as a whole, • identification of barriers to more effective use of ICT by European enterprises, • identification of priorities and public policy instruments related to the development and implementation of ICT in Europe and discussing them with all stakeholders. An initiative under the name Instituto de Tecnología Ceramica (ITC) is an example of an observatory based on the partnership of science and economy. This initiative has been created as a result of an agreement between the Ceramic Industry Research Association (AICE) and the Universitat Jaume I (UJI) of Castellón. The main activity areas of this observatory cover the issues related to collection and dissemination (in the form of reports and analyses) of wide technology information, while its main objective is to strengthen cooperation between Spanish ceramic companies and research institutions, thus increasing their competitiveness.

In Poland, an example of a technology observatory is an initiative operating under the name Euro- Centrum Science and Technology Park together with its Observatory of the Market and Energy- saving Technologies and Renewable Energy Sources. The observatory offers services in the field of technology audit, technology transfer and preparation of technical reports.

The regional research agenda will be based on individual strategies of development and commercialisation of research. The strategies are currently being elaborated by universities and R&D institutions operating in the Lubelskie Voivodeship. They are embedded in: • a mechanism for verifying data about the potential lying in the directions of research, technology and technological areas (Box 23) • analyses of research potential of the region taking into consideration investment projects carried out in R&D and funded by the EU in the years 2007-2013.

Box 23: Mechanism for verifying data about the potential lying in the directions of research, technology and technological areas The potential of the directions of research, technology and technological areas points to the ability to affect the dynamics of economic development (in the case of research, mainly in the long term). The basis of the mechanism for verifying data about the potential lying in the directions of research, technology and technological areas are: system-dynamic models and multi-criteria models, impact analyses, scenario analyses, risk assessments, integrated environmental assessments, and methods based on the technology life cycle. One of the relatively simple methods for assessing the technology life cycle are the technology maturity and the technology readiness indexes, including: technology readiness level, technology maturity level, the level of R&D difficulty, project maturity level, manufacturing readiness level, interface maturity level, integration readiness level, system readiness level. They all form a coherent framework to describe the process of research and knowledge commercialisation.

50 The research agenda will define, for instance, strategic directions and areas of interdisciplinary research which will be undertaken in the region by 2020, with the consideration of such factors as: the need for specific research and technologies expressed by companies operating in the region and in the country, the existing R&D infrastructure in the region, R&D policy and priorities at the EU and country level. The agenda will provide details regarding possible directions of network cooperation for the Lublin science nationwide, supra-regionally (including Eastern Poland) and internationally. It will also provide instruments and mechanisms necessary to initiate, develop and support networking. While drawing up the research agenda, the entrepreneurial discovery process will be used in its full potential – one of its effects will be the development of cooperation models between enterprises and universities. This form of work will not only help to conduct joint interdisciplinary research for the development of specific technologies and innovations but will also provide new opportunities in the areas of smart specialisation of the region.

Technology entrepreneurship

The purpose of the programme is to combine the supply and demand of the innovation market through the development of academic entrepreneurship on the basis of the proposed set of tools and support schemes. The actions will be based on previous experiences gained during the implementation of consulting and training projects aimed at supporting the formation of spin-off and spin-out companies. They will also refer to the results and recommendations of an analysis regarding the possibility to implement in the Lubelskie Voivodeship an intercollegiate programme of incubation and development of innovative companies in the areas of smart specialisation. The programme will cover regional technological and business incubators as well as career offices operating at public and private universities, which, through networking, will join forces to achieve success. The most important result of such actions will include the development of a target model to support academic entrepreneurship in the Lubelskie Voivodeship and recommendation of a set of instruments and effective support mechanisms to facilitate tracking of the new and emerging business opportunities. The proposed tools may be used in the case of both soft actions (for example, aimed at changing attitudes or improving skills) and hard actions (aimed at implementing specific financial instruments or institutional solutions). The processes of communication and cooperation will also lead to proper understanding of the idea of incubating innovative companies on the basis of the academic potential, and at the same time providing a good basis for testing and executing joint projects based on a partnership between universities and incubators.

Partnerships, networks and clusters

The purpose of the programme is to strengthen the absorption capacity of firms by initiating partnership and developing cooperation network between entities, including primarily companies operating in the areas of smart specialisation. These actions will not only continue the already begun projects but also start new initiatives connected with, for example, establishing new clusters or cooperation platforms. Partnership and cooperation network will be built on the commitment of not only the existing and emerging clusters, agricultural producer groups or local action groups, but also the key companies operating in various related sectors, interested in cooperation with similar companies or research institutions which are already showing a willingness to teamwork and act as leaders in their environment. Municipalities and counties as well as subordinated organisational units, which will have to demonstrate adequate openness and activity in this field, will play an important role in the development 51 of local partnerships. It is assumed that, as a result of such actions, new structures of cooperation (e.g. clusters) will be created, new channels of communication and exchange of knowledge will be opened and a set of tools enabling effective support of partnership and network cooperation between entities operating in the areas of smart specialisation will be developed (such tools will adapt the form of support to current needs and new opportunities arising where different yet related sectors meet).

Regional growth centres

The purpose of this programme is to stimulate demand for innovation by improving (1) the quality and efficiency of business environment institutions supporting innovation and (2) competitiveness of companies operating within smart specialisation. The programme will be based on: (1) recommendations arising from comprehensive studies on barriers and needs of business environment institutions in the context of development of pro-innovative services for business, (2) experiences gained during the execution of the project entitled the Lublin Science and Technology Park SA aimed at building up innovative brokerage network, and (3) good practices from countries which come top of European and global innovation rankings. The pilot programme is aimed at: • providing organisational and training support for regional business environment institutions to professionalise human resources (training, workshops, conferences, interregional and international exchange of experiences and good practices, guidebooks, etc.), • testing integrated programmes of commercialisation and technology transfer which offer comprehensive support (research, technical, organisational, financial and commercial actions) contributing to the implementation of innovation (Box 24), • popularizing new business models, including new value chains and marketing organisations, in particular to facilitate internationalization, • developing instruments for cooperation with business environment institutions operating in other regions of Eastern Poland.

52 Box 24: Good practices regarding commercialisation of integrated programmes and technology transfer

Integrated programmes of commercialisation and technology transfer are based on the STTR initiatives (Small Business Technology Transfer Programme) and include in particular:

• technology transfer, technology and innovation audit, • purchase of knowledge from external sources in the form of patents, non- patented inventions (solutions), designs, utility models, industrial designs, licenses, disclosure of know-how, trademarks and technical services related to implementation of product and process innovations; • purchase of software related to implementation of product and process innovations; • purchase and installation of machinery and technical appliances; purchase of vehicles, tools, personal property, furniture, equipment, as well as spending on construction, extension and modernization of buildings used to implement product and process innovations; • R&D projects connected with developing new or significantly improved products (product innovations) and processes (process innovations) made on one’s own or purchased from other units, including (1) creating designs, making drawings, preparing plans and other documentation to develop new products, processes and services, (2) developing prototypes, pilot and demonstration projects, (3) starting experimental production and (4) testing products, processes and services; • other works, such as feasibility studies, testing and evaluation of new or significantly improved products and processes, standard development and improvement of software and instrumentation, engineering and preparatory work; • staff training (external training services and in-house training) connected with innovation activities at all stages, from design to marketing; • marketing and consulting services regarding new or significantly improved products; • legal and financial advisory services regarding product innovation, process innovation and the related organisational and marketing innovation; • advisory services in terms of obtaining funds for commercialisation and technology transfer from EU projects and venture capital funds.

The pilot actions will be performed by all interested business environment institutions, both public and private ones. Furthermore, a group of companies interested in introducing innovations in direct cooperation with the scientific community will also be selected. It is expected that implementation of pilot actions will result in the development of a set of tools to improve efficiency of regional business environment institutions in the provision of services in support of increase in the level of innovation of the region. Additionally, a solid platform for cooperation and exchange of knowledge between regional and supra-regional stakeholders interested in the development and improvement of pro-innovation services for business will be built. The platform also will play an important role at the stage of testing the developed models and tools.

53 Financial engineering for innovation

The purpose of this programme is to reduce the financial gap at early stages of technology development (Box 25). The pilot programme is aimed at: • analysing the minimum scale justifying the need to create regional instruments of financial engineering for innovation, and, • defining new concepts and testing regional and/or supra-regional (within Eastern Poland) repayable instruments and mixed mechanisms for innovation funding (depending on the results of the analysis).

Box 25: Financial gap blocking the technology commercialisation process

The technology commercialisation process applies to early stages of technology development. These in turn are exposed to special threat resulting from an increase in capital spending, which is typical of the transition from the prototype stage and experimental production to commercial production, parallel to decline of public funds, which (usually) finish at the stage of experimental production. This results in a financial gap, which means that public funds are cut and the access to private investments is impeded. This threat is an important barrier to the demand for innovations to grow. Furthermore, the Lubelskie Voivodeship lacks a well-developed system for financing venture capital projects.

The programme will be implemented with the support of institutions of regional and supra-regional financial markets and business environment institutions. The activities should result in the development of stable, pro-innovative market mechanisms (e.g. various forms of grants) ensuring after 2020 the ease of adaptability of regional innovation policy to the conditions of limited structural funds.

Innovative public procurement

The purpose of this programme is to test the effectiveness of innovative public procurement, especially direct, cooperative and pre-competitive one, as an instrument to stimulate demand for innovations. The Lubelskie Voivodeship has some experience in the use of pre-competitive public procurement, but wider implementation of this instrument encounters significant organisational and competence barriers. The pilot programme is aimed at: • providing organisational support and training for local self-government units and business environment institutions in innovative public procurement (trainings, workshops, conferences, interregional and international exchange of experience and good practices, guidebooks, etc.), • transferring good practices in the field of regional systems for innovative procurement (Box 26), • developing, testing and implementing regional systems for innovative public procurement.

54

Box 26: Good practices in innovative public procurement

The procedures for initiating public procurement are described, for instance, in the European Commission publication (2009) called Bridging the Valley of Death: public support for commercialisation of eco-innovation. Final Report 26. Polish good practices primarily consist of pilot project executed by the National Centre for Research and Development under the name Supporting Research and Development through Pre-Competitive Procurement. International good practices include especially the last two competitions under the Competitiveness and Innovation Framework Programme (CIP): • Supporting public procurement of innovative solutions – PPI Pilots, call for application (65/G/ ENT/CIP/13/N02C02127, • Building and implementing strategic roadmaps of demand-side policy measures to boost demand for industrial innovations (68/G/ENT/CIP/13/C/N02C011.)28.

26 http://ec.europa.eu/environment/enveco/innovation_technology/pdf/bridging_valley_report.pdf 27 http://ec.europa.eu/research/participants/portal/page/call_CIP?callIdentifier=65-G-ENT-CIP-13- N02C021&specificProgram=EIP 28 http://ec.europa.eu/research/participants/portal/page/call_CIP?callIdentifier=68-G-ENT-CIP-13-C-N02C011&specificProgram=EIP 55

IImplementation system

Mainly experimental nature of RIS LV 2020 requires a proactive approach on the part of all stakeholders, especially regional authorities. The system for the strategy implementation (covering the institutional system, sources of funding and the strategy implementation plan for the years 2014-2020) will favour such an approach. The analysis of main risks revealed while drafting the RIS LV 2020 also constitutes an element of the system for the strategy implementation.

56 The system for the RIS LV 2020 implementation

Institutional system

The institutional basis for the strategy implementation system consists of: • the Board of the Region, • the Council for Innovation, • the RIS LV 2020 Managing Authority.

The competencies of the Board of the Region include: • passing resolutions on the principles, procedures and schedule of work regarding the preparation of RIS LV 2020, its implementation, monitoring, evaluation and updating, • passing resolutions on implementing documents and programmes to the RIS LV 2020, • supervising and coordinating the system for implementing the RIS LV 2020, • incorporating – in justified cases – other entities into the institutional system for implementing the RIS LV 2020, together with defining their competence and tenure, • creating favourable conditions for a social dialogue, especially within the Council for Innovation.

The Council for Innovation consists of representatives of economic and scientific circles, public administration and civil society as well as financial markets. The competencies of the Council include: • successive stimulating of the entrepreneurial discovery process, strengthening and consolidating partnership at the decision-making level through active involvement of the members, reaching agreements, recognizing common goals, building up mutual trust, encouraging consultation in individual environments etc., • giving opinions on the documents related to the preparation of the RIS LV 2020, its implementation, monitoring, evaluation and updating, • participating in the RIS LV 2020 monitoring and evaluation actions, including proposals for improvement of regional research and innovation system.

The competencies of the RIS LV 2020 Managing Authority include: • coordinating, implementing, monitoring, evaluating and updating the RIS LV 2020 in the course and to the extent specified by the Board of the Region, • drawing up, in cooperation with the Council for Innovation, draft documents and implementation programmes to the RIS LV 2020, including pilot projects and the procedures for their dissemination, • supporting the Council for Innovation.

The tasks of the RIS LV 2020 Managing Authority are performed by one of the departments of the Marshal Office of the Lubelskie Voivodeship indicated by the Board of the Region. In the period until the end of 2014 the institutional system for the RIS LV 2020 implementation will be expanded by the Lubelskie Centre for Innovation Research. The Centre will be either a new unit or formed on the basis on the existing organisational structures; it will serve as a regional intellectual base supporting the transformation of development model of the voivodeship. The tasks of the Centre will 57 include in particular: • preparation and coordination of systematic papers and analyses of the transformation of development model of the voivodeship and development of regional system for innovation (innovation market observatory, technology foresight, analyses of improvement of the system for monitoring and evaluation, etc.) and reporting the results to all stakeholders, • participation in activities related to implementing, evaluating and updating the RIS LV 2020 and other executive documents to the strategy. The institutional system for the RIS LV 2020 implementation is based on the principles of good governance, in particular on: • the principle of openness and transparency, which means that institutions within the system are maximally transparent for citizens and public opinion, and actively and clearly communicate their actions and decisions. The processes, institutions and information concerning the definition and implementation of innovation policy are directly available to entities they relate to and ensure efficient functioning of the system for monitoring and evaluation; • the principle of partnership, meaning broad participation of all stakeholders in the formulation and implementation of policies in a manner ensuring that their opinion will be taken into account and that different groups will cooperate; • the principle of effectiveness, meaning that the form of innovation policy and its implementation should be adapted in a manner fully respecting the needs of all stakeholders parallel to optimal use of available resources; • the principle of coherence, meaning full coordination of activities undertaken as part of innovation policy and other policies implemented in the voivodeship.

Financing the RIS LV 2020 and the strategy implementation plan for the years 2014-2020

In the period 2014-2020, the RIS LV 2020 financing structure will be a derivative of solutions adopted in:

• the Regional Operational Programme of the Lubelskie Voivodeship for the years 2014 - 2020 (the ROP LV 2020, see: Box 27), • Operational Programmes (OPs): Operational Programme Development of Eastern Poland, Operational Programme Smart Growth, Operational Programme Knowledge, Education, Development, Operational Programme Infrastructure and Environment, Operational Programme Digital Poland, Operational Programme Fishing and Sea, • Rural Development Programme 2014-2020.

These programmes will be the main sources of financing the RIS LV 2020 (in addition to private sector sources) in this period. In addition, there is a possibility of obtaining funds from the programmes managed directly by the European Commission, including in particular Horizon 2020 and COSME (Programme for the Competitiveness of Enterprises and SMEs).

58 Box 27: Regional Operational Programme for the Lubelskie Voivodeship for the years 2014 - 2020

The main objective of the Regional Operational Programme for the Lubelskie Voivodeship for the years 2014-2020 is to enhance competitiveness of the region based on internal potentials favouring the increase of social and territorial cohesion. This objective will be achieved through 13 priority axes. The actions within the RIS LV 2020 will be elaborated mainly in the first (research and innovation) and third (competitiveness of enterprises) priority axes, although some actions will also be undertaken within: • Priority Axis 2 - digital Lubelskie Voivodeship, • Priority Axis 4 - environmentally friendly energy, • Priority Axis 5 - energy efficiency and low-carbon emission economy, • Priority Axis 6 - environmental protection and efficient use of resources, • Priority Axis 10 - adaptability of enterprises and employees to the changing conditions, • Priority Axis 12 - education, skills and competences • Priority Axis 13 - social infrastructure.

The estimated amount of funds available in the years 2014-2020 for the RIS LV 2020 implementation is presented in Table 4. The estimates are based on the working versions of operational programmes for the years 2014-2020 and allocations of funds for particular priority axes. When estimating these funds, it was assumed that regional stakeholders would actively obtain funds and that they would be able to make their own contribution towards co-financing the projects. In addition, it was assumed that in the case of funds from operational programmes, the ability of the region to obtain such funds will be similar to that observed in the current (2007-2013) financial perspective (in the case of the Operational Programme Eastern Poland, it was assumed that entrepreneurs from the Lubelskie Voivodeship will obtain at least 22% of the available funds; in the case of the Operational Programme Smart Growth, the planned level of absorption of funds is 5%, while in the case of the Rural Development Programme it is 8% on average).

The schedule for the RIS LV 2020 implementation will be derived from the solutions adopted in programmes identified as the main sources of financing the strategy. An exception is made for experimental part of the RIS LV 2020, which includes preparation of a concept, implementation and evaluation of pilot programmes and preparation of procedures for their dissemination. The schedule for the above actions covering the period until the first continuous update of the strategy to be provided in 2016 is presented in Table 5. The schedule and the RIS LV 2020 financing sources after 2020 will be determined in subsequent implementing documents to the strategy.

59

65

% 9.4 9.2 35.2 19.7

programmes 788,813,593.00 211,090,000.00 440,835,000.00 206,953,000.00 Funds from particular particular Fundsfrom

broken down into sources of funding

.00

------broken down into sources of of funding sources down into broken

970,000.00 54,191,755.50 30,277,837.00 32,010,000.00 11,250,000.00 11,775,000.00 42,050,000.00 51,666,000.00 28, 32,010,000.00 23,025,000.00 135,557,202.00 107,446,601 327,473,395.50 122,686,000.00 open to innovation to open RIS LV 2020 2020

public administration bodies bodies administration public environment institutions and institutions environment Priority 3 Strengthening business business Strengthening 3 Priority RIS LV RIS

e the the

areas areas e of e smart the the entities to entities

------2020. The The 2020. commercialis - R&D regional regional and

specialisation 15,138,918.00 18,063,918.50 86,250,000.00 60,580,000.00 82,380,000.00 33,202,836.50 229,210,000.00 of knowledge in in knowledge ability of ability Priority 2 Increas 2 Priority create create in the years 2014-2020. The in the years 2014 years the in RIS LV

0.00

isation. - - - - - RIS LV RIS 245,000.00 30,277,837.00 79,403,627.00 37,847,296.00 80,822,068.00 49,704,284.00 74,690,000.00 86,250,00 60,580,000.00 41,770,000.00 25, 59,022,000.00 84,267,000.00 Increase of the ability of ability the of Increase special 150,082,249.00 104,390,000.00 428,137,361.00 179,080,000.00 188,600,000.00 areas of regional smart regional of areas absorb knowledge and to absorbknowledge implement innovations in the the in innovations implement business entities to create and create to entities business Priority 1 1 Priority

2020 -

ing conditions ing

2020 - uro) chang E for the years 2014 years the for

the the industrial consortia industrial - to to

Voivodeship

development

environment of innovative enterprises innovative of environment employees 2020

- of available public funds to be spent bespent to funds public available of

2020

implementation (in (in implementation -

s

2014

2020

RIS LV RIS Voivodeship Eastern Poland Eastern

the potential and the and potential the research potential research

estimated amount estimated on the onthe Smart Growth

efficiency efficiency Lubelskie Lubelskie The estimated amount of public funds for the implementation

Innovative Eastern Poland Eastern Innovative

Entrepreneurial and economy for education Higher

4 Increasing Increasing 4 The estimated amount of public funds for the implementation of the the of implementation the for funds public amount of estimated The Sources and Sources

. 4

Table 4: Regional Operational Programme for the Lubelskie Lubelskie the for Programme Operational Regional innovation and Research 1 axis Priority Digital 2 axis Priority enterprises of Competitiveness 3 axis Priority energy friendly Environmentally 4 axis Priority Energy 5 axis Priority market Labour 9 axis Priority and enterprises of Adaptability 10 axis Priority competence and skills Education, 12 axis Priority infrastructure Social 13 axis Priority 2014 Poland Eastern Programme Operational 1. axis Priority 2 axis Priority Programme Operational scientific and R&Denterprises by Supporting 2. axis Priority enterprises in innovation Supporting 2 axis Priority Supporting 3 axis Priority axis Priority 2014 Development Education, Knowledge, Programme Operational education and economy market, labour for policies public Effective 1 axis Priority 2 axis Priority market the labour on people Young 3 axis Priority cooperation transnational and innovations Social 4 axis Priority Table 60

66

1.0 3.9 0.3 0.6 3.2 0.3 2.0 0.3 14.9 100.0

,000.00 7,000.00 100.00 ,100,000.00 6,000 7,500,000.00 7,000,000.00 22,926,000.00 86,400,000.00 13,69 71 43,800,000.00 333,108,160.00 2,239,222,753.00

------29.8 7,686,480.00 3,000,000.00 5,610,000.00 6,292,000.00 1,795,000.00 7,686,480.00 3,000,000.00 7,000,000.00 86,400,000.00 13,697,000.00 86,400,000.00 43,800,000.00 666,777,875.50

------14.1 24,400,000.00 29,700,000.00 54,100,000.00 316,512,836.50

------56.1 3,000,000.00 3,000,000.00 7,500,000.00 22,926,000.00 17,000,000.00 22,926,000.00 17,000,000.00 191,800,280.00 133,621,400.00 325,421,680.00 1,255,932,041.00

ized ized mentation mentation s -

priority dedicated dedicated priority

of forests of -

imple

2020 2020 -

2020

-

2020 (the Baltic Sea Region Region Sea Baltic (the 2020 agriculture, forestry and in rural rural in and forestry agriculture, -

in in and energy efficiency energy and Ukraine 2014 Ukraine -

2020 -

, including processing and marketing marketing and processing including ,

given year of the RIS LV RIS of the year given transfer transfer

2020 sources sources Belarus %

- - e years 2014 years e y 2020

- entities

2020

fishing and aquaculture and fishing -

ll and territorial cohesion in fishing areas fishing in cohesion territorial and

in science science in

for A for and competitive and

e administration and open government and open administration - Programme for Research and Innovation Horizon 2020 Horizon and Innovation Research for Programme

COSME

-

Border Cooperation Programme Poland Programme Cooperation Border - 2020 Erasmus 2020 Europe Creative 2020

- - Total funds from various programmes in a in programmes various from funds Total Framework Operational Programme Infrastructure and Environment 2014 Environment and Infrastructure Programme Operational energ renewable of Promotion 1. axis Priority 2014 Poland Digital Programme Operational E 2 axis Priority 2014 Programme Development Rural innovation and knowledge Facilitating 1 Priority areas and agriculture of types all of competitiveness and farms of profitability Increasing 2 Priority management sustainable and farms in technologies innovative promoting chain supply food the Supporting 3 Priority agriculture in management risk and products agricultural 2014 Sea and Fishing Programme Operational Innovative 2 Priority Employment 4 Priority 2014 Programmes Cooperation Territorial European Cross innovation) and development technological (research, objective thematic 1st achieving to th for programmes cooperation Transnational Europe) Central for Programme Programme, Programme Interregional Europa Interreg EU Excellenc 1 Priority industry in position Leading 2 Priority challenges Social 3 Priority Medium and Small and Enterprises of Competitiveness the for EUprogramme Enterprises 2014 2014

61 main risks rEvEalEd whilE drawing up Main risks revealed while drawing up the RIS LV 2020 thE ris lv 2020

TheThe following following areas areas of of risk risk were were revealed revealed while while drawing drawing up up the the RISRIS LVLV 20202020:: • OptimisticOptimistic scenario scenario of of development development As mentioned earlier, the RIS LV 2020 is based on an optimistic scenario of development, Asaccording mentioned to earlierwhich the regionRIS LV environment2020 is based will on not an beoptimistic affected scenarioby long-lasting of development and deep crisis,according and to sociowhich-economic the region processes environment in thewill voivodeshipnot be affected will by take long-lasting place in accordanceand deep crisis, with and the socio- principles economicbehind selectiveprocesses model in the of voivodeship development will based take place on smart in accordance specialisation with. the However, principles unfavourable behind selectiveseries of model external of development and internal basedfactors on (especially smart specialisation. new wave of However, financial, unfavourable economic and series political of crisis,external growing and internal tensions factors in the (especially European newUnion wave and ofthe fi emergencenancial, economic of possibility and political of reducing crisis, the growingamount tensions of funds in the allocated European to Union cohesion and policy,the emergence the depletion of possibility of current of reducing simple developmentthe amount of fundsreserves) allocated may to limit cohesion the dynamics policy, theof growthdepletion of ofthe current voivodeship simple and development threaten the reserves) achievement may limit of theobje dynamicsctives defined of growth in the of strategy.the voivodeship and threaten the achievement of objectives defi ned in the strategy.

Table 5. The schedule for pilot programmes implementation Table 5: The schedule for pilot programmes implementation Schedule Pilot Q 1 Q2 Q3 Q4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 programme 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017

Technological entrepreneurship Development of demand for innovations Partnerships, networks and clusters Financial engineering for innovation Regional research programmes in smart specialisation areas Regional growth centres

In order to prevent such risk, the RIS LV 2020 provides a broad spectrum of operations noted for In order to prevent such risk, the RIS LV 2020 provides a broad spectrum of operations noted for significant pro-development effect helping to accelerate economic development and gain benefits with signifi cant pro-development effect helping to accelerate economic development and gain benefi ts with the lowest diagnosed risk. the lowest diagnosed risk.

• TheThe effectiveness effectiveness of of public public intervention intervention instruments instruments TheThe evaluation evaluation of ofprevious previous pro-innovation pro-innovation projects projects showed showed that that standard standard approach approach to to support support of of innovation,innovation, basedbased mainly on on the the supply-side supply-side instruments, instruments, did did not not work work and and did didnot notlead leadto a to a noticeablenoticeab leincrease increase in in the the level level of of innovation innovation and and competitiveness competitiveness ofof the voivodeship economy.economy. In Inorder order to toprevent prevent such such risk, risk, the the RIS RIS LV LV2020 2020: (1): (1) envisages envisages more more sustainable sustainable use use of ofsupply supply and and demanddemand for for innovation innovation support support instruments instruments and and greater greater involvement involvement of private of private funds, funds, and (2) and opens (2)

 67 up to new activities, creating a new instrument (pilot programmes) to systematically search for – in the entrepreneurial discovery process – new solutions (courses and types of actions and specific projects) used to adapt, to a greater extent than before, directions and forms of intervention to the changing needs and challenges related to the development of the areas of regional smart specialisation.

• Lean management The system for the RIS LV 2020 implementation was based on the principles of lean management (rationalisation of institutional system for strategy implementation and maximum use of the existing organisational structures). However, mainly experimental nature of the strategy and the need to gradually stimulate the entrepreneurial discovery process may exceed the resources of such implementation system. In order to prevent such risk, the RIS LV 2020 envisages:

- establishing the Lublin Research Centre for Innovation as a regional expert base (regional think tank) to support strategic management of the transformation of the voivodeship development model, and

- an opportunity to incorporate – in justified cases – other entities into the institutional system for implementing the RIS LV 2020, together with defining their competence and tenure.

• Concentrating public intervention on the areas of regional smart specialisation According to the rules of regional policy, the RIS LV 2020 moves away from current principles behind financing R&D activities and innovative activities (neutrality and no bias in favour of any areas of research or business activity) and introduces a new principle, namely the concentration of funds on a small number of key R&D and innovative priorities, such as regional smart specialisation areas. This entails the risk of failure to achieve the objectives of the strategy due to: (1) too general, too narrow, or too short-sighted definition of regional smart specialisation areas, (2) suspension of public aid for relevant endogenous development potentials, currently outside of the areas of smart specialisation. In order to prevent such risk, the RIS LV 2020 envisages:

- the need to stimulate dynamic advantages of the location, especially in the form of: (1) efficient business environment institutions network, (2) market services for business, and (3) financial markets essential to the increase in demand for innovation from all companies, both these located in regional and supra-regional areas of regional smart specialisation and these operating outside of such areas (Priority 3),

- opportunities to support endogenous development potentials outside of regional smart specialisation areas by incorporating the voivodeship into the global chain of innovation and the development of intra-regional, interregional (including in Eastern Poland), supra-regional and international cooperation (Priority 1),

- opportunities to redefine areas of regional smart specialisation in the future (expanding, narrowing or adding new potentials) without the necessity to review the strategy.

63 TThe system for monitoring and evaluation

Regional Innovation Strategy for the Lubelskie Voivodeship 2020 is one of the strategies supporting Development Strategy for the Lubelskie Voivodeship 2020; this is why the system for the RIS LV 2020 monitoring and evaluation constitutes an integral part of the system for the DS LV 2020 monitoring and evaluation.

64 The SySTem for The rIS Lv 2020 monITorIng and evaLuaTIon

Figure 4: Flowchart of the system for the DS LV 2020 monitoring and evaluation

thE systEm for thE ris lv 2020 monitoring Similarly to the system for the DS LV 2020 monitoring, the system for the RIS LV 2020 monitoring is based on indicators described in terms of base and target values (available for 2014 and 2020/2030). Apart from indicators presented in the DS LV 2020, the RIS LV 2020 includes benchmarking indicators. The most important indicators of the RIS LV 2020 monitoring defi ned at the level of the DS LV 2020 monitoring include: • GDP per capita, • labour market indicators, • gross value added per 1 person employed in agriculture compared to the national average, • the share of graduates in mathematics, natural sciences, technical and medical sciences per total number of graduates, • the share of persons aged 25-64 studying and going through additional training in total population in that age group (adult continuing education), • the share of spending on R&D activity in the region's GDP, • the percentage of patents granted in the region per total number of patents in Poland, • the number of SMEs per 10,000 residents. Benchmarking indicators are presented in Table 6. Due to the objective established in the RIS LV 2020, connected with the advancement of the Lubelskie Voivodeship in the Regional Innovation Ranking, the indicators used in this Ranking were adopted. 

TableTable 6 6. Benchmarking: Benchmarking indicators indicators The innovation index comprises the following indicators: ValuesValues The innovation index comprises the following indicators: base target (2020) base target (2020) STIMULATORS STIMULATORSHuman Resources 1.1.1 The number of PhD students per 1,000 residents aged 25-34 8.68 (2012) 15.9 Human Resources

1.1.1Open, The excellent number and of attractivePhD students research per 1 ,system000 residents aged 25-34 8.68 (2012) 15.9 1.2.1 The number of publications in scientifi c journals prepared by authors 2005 (2013) 2531 Open,affi liated excellent with andresearch attractive institutions research in the system voivodeship

1.2.1Financing The number and support of publications in scientific journals prepared by authors 2005 (2013) 2531 affiliated1.3.1 The with private research sector institutions spending on in R&D the voivodeas a percentageship of GDP 1.41 (2012) 1.87 ACTIONS TAKEN BY COMPANIES Company investments Financing2.1.1 Spending and support on innovation activities in companies operating in the 0.99 (2012) 1.72 1.3.1industry The and privat servicee sector sectors spending other onthan R&D R&D as a percentage of GDP 1.41 (2012) 1.87 Links and entrepreneurship ACTIONS2.2.2 A Innovative TAKEN BY SMEs COMPANIES (small) industrial enterprises co-operating with 1 (2012) 4.3 others as a percentage of SMEs Company2.2.2 B Innovative investments SMEs (medium) industrial enterprises co-operating with 10.3 (2012) 17.2 2.1.1others Spending as a percentage on innovation of SMEs activities in companies operating in the industry 0.99 (2012) 1.72 and2.2.2 service C Innovative sectors SMEs other (small) than R&D enterprises from the service sector co- 2.5 (2012) 8.6 operating with others as a percentage of SMEs Links2.2.2 andD Innovative entrepreneurship SMEs (medium) enterprises from the service sector co- 14.7 (2012) 21.2 operating with others as a percentage of SMEs 2.2.2 A Innovative SMEs (small) industrial enterprises co-operating with Intellectual assets 1 (2012) 4.3 others2.3.1 The as anumber percentage of patent of SMEs application and utility modes made by national 254 (2012) 325 2.2.2entities B Innovative SMEs (medium) industrial enterprises co-operating with 2.3.3 The number of patents and utility models protection rights granted to 5.310.3 (2012) (2012) 8.917.2 othersnational as entities a percentage per 100,000 of SMEs residents 2.2.22.3.4 CThe Innovative number ofSMEs patent (small) application enterprises and utility from modelsthe service made sector by national co- 11.5 (2012) 18.1 entities per 100,000 residents 2.5 (2012) 8.6 operatingRESULTS with others as a percentage of SMEs 2.2.2Innovators D Innovative SMEs (medium) enterprises from the service sector co- 3.1.1 Industrial SMEs (excluding micro-enterprises) introducing innovations 9.314.7 (2012) (2012) 14.721.2 operating with others as a percentage of SMEs as a percentage of SMEs (small) Intellectual3.1.1B Industrial assets SMEs (excluding micro-enterprises) introducing 32.3 (2012) 40.5 innovations as a percentage of SMEs (medium) 2.3.1 The number of patent application and utility modes made by national Economic impact 254 (2012) 325 entities3.2.1 The Human Resources in Science and Technology Core (HRSTC) as a 15 (2011) 22.5 percentage of labour force 2.3.3 The number of patents and utility models protection rights granted to 3.2.2 Share of net revenues from sales of innovative products for the export 1.075.3 (2012) (2012) 2.328.9 nationalmarket in entities net revenues per 100,000 from salesresidents 2.3.4 The number of patent application and utility models made by national 11.5 (2012) 18.1 entities3.2.4 Share per 100,000of net revenues residents from sales of innovative products for the market 1.91 (2012) 3.11 RESULTSin net revenues from sales in total in industrial enterprises Innovators 3.1.1 Industrial SMEs (excluding micro-enterprises) introducing innovations 9.3 (2012) 14.7 as a percentage of SMEs (small) 3.1.1B Industrial SMEs (excluding micro-enterprises) introducing innovations 32.3 (2012) 40.5 as a percentage of SMEs (medium) Economic impact 3.2.1 The Human Resources in Science and Technology Core (HRSTC) as a 15 (2011) 22.5 percentage of labour force

3.2.2 Share of net revenues from sales of innovative products for the export 1.07 (2012) 2.32 market in net revenues from sales

3.2.4 Share of net revenues from sales of innovative products for the market 1.91 (2012) 3.11 in net revenues from sales in total in industrial enterprises

Evaluation system 

71 35 Evaluation systEm The RIS LV 2020 evaluation system is based on participatory and democratic evaluation model, which guarantees the continuation of the entrepreneurial discovery process initiated at the stage of the strategy update. The evaluation process will use each type of surveys (ex-ante, on-going and ex-post). The evaluation will be conducted in cycles, which is illustrated in the chart below (Figure 5).

Figure 5: The RIS LV 2020 evaluation cycle

 List of annexes

Annex No 1: Detailed diagnosis of innovation capacity of the Lubelskie Voivodeship. Annex No 2: Principles behind the update of Regional Innovation Strategy for the Lubelskie Voivodeship 2020. Annex No 3: List of entities and institutions involved in the entrepreneurial discovery process.

The list of documents and papers

1. ESPON (2012), KIT. Knowledge, Innovation, Territory. Applied Research 2013/1/13. Final Scientific Report – Volume 1, http://www.espon.eu/export/sites/default/Documents/Projects/AppliedResearch/ KIT/FinalReport/KIT_Final-Scientific-Report_Volume-1.pdf. 2. European Commission (2010a), Europe 2020. A strategy for smart, sustainable and inclusive growth, COM(2010) 2020. 3. European Commission (2010b), the Europe 2020 Strategy leading project Innovation Union, KOM(2010) 546, final version 4. European Commission (2010c), regional policy as a factor contributing to smart growth within Europe 2020 strategy, KOM(2010) 553, final version 5. European Commission (2011), contribution of regional in sustainable growth within Europe 2020 strategy, KOM(2011) 17, final version 6. European Commission (2012a), Background paper accompanying the public consultation on demand- side policies to spur industrial innovations, http://ec.europa.eu/enterprise/policies/innovation/files/ consultation/background-paper-demand-side-policies_en.pdf. 7. European Commission (2012b), A Stronger European industry for growth and economic recovery. Industrial Policy Communication Update, COM(2012) 582 final. 8. European Commission (2012c), Summary of the contributions received by the Commission following the public consultation on demand-side innovation policies to spur European industrial innovations in a global market, http://ec.europa.eu/enterprise/policies/innovation/files/consultation/results-demand- side-policies_en.pdf. 9. European Commission (2012d), Guide to research and innovation strategies for smart specialisation (RIS3), http://s3platform.jrc.ec.europa.eu/en/c/document_library/get_file?uuid=e50397e3-f2b1-4086- 8608-7b86e69e8553&groupId=10157. 10. Foray D., David P.A., Hall B. (2009), Smart Specialisation – The Concept, Knowledge Economists Policy Brief n° 9. 11. Foray D., David P.A., Hall B.H. (2011), Smart specialisation. From academic idea to political instrument, the surprising career of a concept and the difficulties involved in its implementation, MTEI Working Paper 2011-001. 12. Foray D., Goddard J., Goeneaga Bellardain X., Landabaso M., Mc Cann M., Morgan K., Nauwearels C., Ortega Argirles R. (2012), Guide to Research and Innovation Strategies for Smart Specialisation (RIS3), European Union, Regional Policy. 13. Joanneum Research Graz (2012), S3 – Smart specialisation strategies. Getting started with the RIS3 key, www.era.gv.at/attach/ris33.7.-eweb.pdf. 14. MAiC (2012), Long-term national development strategy 2030. The third wave of modernity, the Ministry of Administration and Digitization https://mac.gov.pl/files/wpcontent/uploads/2011/12/Polska2030_ final_november2012.pdf. 15. MG (2013a), Innovation and economy efficiency strategy, www.mg.gov.pl/files/upload/20046/SIEG_PL_ 68 wersja%20ksi%C4%85%C5%BCkowa.pdf. 16. MG (2013b), Enterprise Development Programme, www.mg.gov.pl/files/upload/17484/PRP_wersja_po_ uwagach_%20KRM_20032014.pdf. 17. MIiR (2014), Programming the 2014-2020 financial perspective - Partnership Agreement, the Ministry of Infrastructure and Development https://www.mir.gov.pl/fundusze/Fundusze_Europejskie_2014_2020/ Programowanie_2014_2020/Umowa_partnerstwa/Documents/UPRM.pdf 18. MRR (2010), National strategy for regional development 2010-2012. Regions, cities, rural areas www.mrr.gov.pl/aktualnosci/polityka_rozwoju/Documents/KSRR_13_07_2010.pdf. 19. MRR (2012a), Operational Programme Development of Eastern Europe 2007–2013. The National Strategic Reference Framework 2007–2013. Detailed description of priority axes, www. polskawschodnia.gov.pl/Dokumenty/Lists/Dokumenty%20programowe/Annexs/89/SOOP_120912.pdf. 20. MRR (2013), Draft of updated Strategy for socio-economic development of Eastern Poland to 2020 http://www.mrr.gov.pl/rozwoj_regionalny/Polityka_regionalna/Strategia_rozwoju_polski_wschodniej_ do_2020/Dokumenty/Documents/SPW_www_9_04_13.pdf. 21. OECD (2011a), OECD Regional Outlook 2011: Building resilient regions for stronger economies, OECD Publishing. http://dx.doi.org/10.1787/9789264120983-en. 22. OECD (2011b), Business innovation policies. Selected country comparisons, OECD Publishing, http:// dx.doi.org/10.1787/9789264115668-en. 23. OECD (2011c), Demand-side Innovation Policies, OECD Publishing. http://dx.doi.org/10.1787/97892640 98886-en. 24. OECD (2011d), Business innovation policies. Selected country comparisons, OECD Publishing, http:// dx.doi.org/10.1787/9789264115668-en. 25. OECD (2012), Promoting growth in all regions, Paris: OECD Publishing, http://dx.doi.org/10.1787/97892 64174634-en. 26. PAIiI (2010a), The aviation sector in Eastern Poland, Polish Information and Foreign Investment Agency, http://whyeasternpoland.eu/upload/files/7c0fcc27099c2779fb7a520d82e052d2.pdf 27. PAIiI (2010b), The renewable energy sector in Eastern Poland, Polish Information and Foreign Investment Agency, http://whyeasternpoland.eu/upload/files/53da5d969a77abad74fba027fb097410. pdf 28. PAIiI (2010c), The business tourism sector in Eastern Poland, Polish Information and Foreign Investment Agency, http://whyeasternpoland.eu/upload/files/8fc19b4f35b3bd64452ecfd1a02ccf59.pdf 29. PAIiI (2010d), The logistics sector in Eastern Poland, Polish Information and Foreign Investment Agency, http://whyeasternpoland.eu/upload/files/febe5f8cfed2d651d8cc6d0063c71951.pdf 30. PAIiI (2010e), The sector of non-metallic mineral products in Eastern Poland, Polish Information and Foreign Investment Agency, http://whyeasternpoland.eu/upload/files/ 432dd8925489d1dca1dfbdb47fe4dd7f.pdf 31. PAIiI (2010f), The machinery sector in Eastern Poland, Polish Information and Foreign Investment Agency, http://whyeasternpoland.eu/upload/files/55a0c13ff5383620f02280d5a44153c5.pdf 32. PAIiI (2010g), The fashion and textile sector in Eastern Poland, Polish Information and Foreign Investment Agency, http://whyeasternpoland.eu/upload/files/3bcd73f988493632a0270fab3f3ec355. pdf 33. PAIiI (2010h), The construction sector in Eastern Poland, Polish Information and Foreign Investment Agency, http://whyeasternpoland.eu/upload/files/c2a70818cbd35931344ee36ccb18c3f6.pdf 34. PAIiI (2010i), The food sector in Eastern Poland, Polish Information and Foreign Investment Agency, http://whyeasternpoland.eu/upload/files/9e22a15b78f82bd6cfc04f2648cea6d2.pdf 35. PAIiI (2010j), The wood and paper sector in Eastern Poland, Polish Information and Foreign Investment 69 Agency, http://whyeasternpoland.eu/upload/files/ea6a3532dcf384e84ca6fa3febd24ba0.pdf 36. PAIiI (2010k), The metal sector in Eastern Poland, Polish Information and Foreign Investment Agency, http://whyeasternpoland.eu/upload/files/52c774595376ca3a386fa020f238c047.pdf 37. Pro Inno Europe (2012), Singapore SME innovation support schemes. Final report on IPF Review visit to Singapore, www.proinno-europe.eu/sites/default/files/newsroom/2012/07/Review%20Report%20Singa pore.pdf 38. RM (2012a), The 2020 National Development Strategy, M.P.2012.882. 39. RM (2012b), The National Spatial Development Concept, M.P. 2012.252. 40. RM (2013), The National reform Programme, www.mg.gov.pl/files/upload/18224/PL_NRP%202013- 2014_pl.pdf. 41. Rogut A. Piasecki B. (2012a), NPF – implementation of the results. The Principles behind the System Analysis, typescript. 42. Rogut A. Piasecki B. (2012b), NPF –implementation of the results. Universal methodology of mapping, typescript. 43. Rogut A. Piasecki B. (2013), NPF – implementation of the results. The mechanism for verifying data of the potential of scientific research, technology and technology areas (including a set of instruments for: (i) regular acquisition of expert data used as variables in the model the dynamics of economic development of the country/region; (ii) analysis of the ex ante), typescript. 44. The Board of the Region (2013), the Lubelskie Voivodeship Development Strategy for the years 2014- 2020 (with a 2030 perspective), www.strategia.lubelskie.pl/SRWL%202014-2020%20FIN.pdf. 45. The Board of the Region (2013), Regional Operational Programme for the Lubelskie Voivodeship for the years 2014-2020 (with a 2030 perspective), www.strategia.lubelskie.pl/SRWL%202014-2020%20FIN.pdf.

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