Assessment of the Innovation Union Flagship Initiative - Autonomous Region of Madeira

EU Local and Regional Authorities' Contribution to the Mid-term Review of Europe 2020

Assessment of the Innovation Union flagship initiative

Three years after its launch, the Committee of the Regions will take stock of the Innovation Union flagship initiative at a conference to be held on 27 November 2013 in Brussels. This conference will be the seventh in a series of CoR events and monitoring initiatives surrounding the mid-term review of Europe 2020. More news on this conference can be found on the CoR website1.

By participating in this survey, you will:

- ensure that your views are taken into account in the debate held during the conference; - contribute to the CoR's consultative activity in this field over the coming months; - provide input to the CoR's contribution to the mid-term review of Europe 2020.

IF YOU WISH TO PARTICIPATE IN THIS SURVEY, PLEASE COMPLETE THIS QUESTIONNAIRE IN ANY EU LANGUAGE, USING THE SPACES PROVIDED, AND RETURN IT IN TEXT FORMAT TO:

[email protected] by 27 September 2013 For more information on this survey and for details on how to join the Europe 2020 Monitoring Platform, go to: http://portal.cor.europa.eu/europe2020/

The questionnaire is available on this website in all official EU languages

You can find more information on Innovation Union, as seen from the local and regional authorities' viewpoint, in the Committee of the Regions' publication Delivering on the Europe 2020

1 http://portal.cor.europa.eu/europe2020/news/Pages/welcome.aspx

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Strategy - A Handbook for Local and Regional Authorities2. General information on Europe 2020 may be found on the strategy's official website3.

2 The Handbook can be downloaded from: http://portal.cor.europa.eu/europe2020/SiteCollectionDocuments/Europe%202020%20Handbook%20for%20Local%20and%20Regional %20Authorities.pdf. An e-book version is also available at: http://bookshop.europa.eu/en/delivering-on-the-europe-2020-strategy-pbQG3112732/.

3 http://ec.europa.eu/europe2020/europe-2020-in-a-nutshell/flagship-initiatives/index_en.htm.

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Contributor information4

4 Privacy Statement: The follow-up to your contribution requires that your personal data (name, contact details, etc.) be processed in a file. All the answers to the questions are voluntary. Your replies will be kept for a period of 5 years after the receipt of your questionnaire. Should you require any further information or wish to exercise your rights under Regulation (EC) No 45/2001 (e.g. to access, rectify or delete your data), please contact the data controller at [email protected]. If necessary, you may also contact the CoR Data Protection Officer ([email protected]). You have the right of recourse to the European Data Protection Supervisor at any time (www.edps.europa.eu). Please note that the questionnaire with your contribution and your contact details will be published online. Your questionnaire may be transmitted to CoR rapporteurs and other EU institutions for information. Should you not agree to this, please inform us accordingly.

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Name of sender: Maria Fernanda Dias Cardoso Address: Rua Câmara Pestana, n. 17-2º 9000-043 Funchal Contact details: (address, telephone, email) Telef.: (+351) 291212060 Fax: (+351) 291227591 E-mail: [email protected] Autonomous Region of Madeira – Regional On behalf of: Directorate for European Affairs and External (name of local or regional authority) Cooperation City/Town/Municipality Region County/Province Association of local Type of organisation and/or regional authorities Other (please specify)

Country: Portugal

Member of the EUROPE 2020 Yes No Monitoring Platform:

Policy challenges and responses at regional and local level

BOX 1 Innovation Union as specified in the European Commission's Communication The Innovation Union initiative5 was adopted in 2010, as an integral part of Europe 20206. The overall aim of this flagship initiative is to re-focus research and development (R&D) and innovation policy on the challenges facing our society, such as climate change, energy, health and demographic change. Innovation Union is a crucial investment in our future. For example, it is estimated that achieving the target of investing 3% of EU GDP on R&D by 2020 could create 3.7 million jobs and increase annual GDP by €795 billion by 2025. The flagship initiative contains the following aims:

1. In times of fiscal constraints, the EU and Member States need to continue to invest in education, R&D, innovation and ICTs.

5 Europe 2020 Flagship Initiative Innovation Union [COM (2010) 546] , available online: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0546:FIN:EN:PDF 6

Europe 2020 Strategy [ COM(2010) 2020] is available online: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do? uri=COM:2010:2020:FIN:EN:PDF 4 - 5 -

2. EU and national research & innovation systems need to be better linked up with each other and their performance improved. 3. Education systems at all levels need to be modernised. Excellence must become the guiding principle even more than before. Researchers and innovators must be able to work and cooperate across the EU as easily as within national borders. The European Research Area must be completed. 4. Access to EU programmes must be simplified and their leverage effect on private sector investment enhanced, since our research needs to result in more innovation. Cooperation between the worlds of science and business must be enhanced, obstacles removed and incentives put in place. 5. The remaining barriers for entrepreneurs to bring "ideas to market" must be removed: we must have better access to finance, particularly for SMEs, affordable intellectual property rights, smarter and more ambitious regulations and targets and a faster setting of interoperable standards. 6. European Innovation Partnerships should be launched. 7. Strengths in design and creativity must be better exploited. 8. Social innovation must be championed and a better understanding of public sector innovation developed, identifying and giving visibility to successful initiatives. 9. Better work with our international partners is needed. That also means adopting a common EU front where needed in international (trade) negotiations.

The Innovation Union flagship initiative has evolved since its launch in 2010. New building blocks, such as the Smart Specialisation Platform and five European Innovation Partnerships have already been launched (the EIPs on: Active and Healthy Ageing; Agricultural Sustainability and Productivity; Smart Cities and Communities; Water; and Raw Materials). All these elements as well as news of events are publicly available on or through the EU Commission's dedicated Innovation Union website.

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1) What type of policy programmes/actions are being implemented in your city/region to support the policy goals of the Innovation Union (see Box 1)? 1.1 Investing in R&D, Policy programmes/actions contributing to this aim? innovation and ICT Yes No Don’t know (own resources, public- Brief description: private partnerships, The Intervir+ Programme is intended to ensure the growth of the other sources…) regional economy and employment, environmental protection policies, social cohesion and regional development. Of its 5 Areas of intervention, we would highlight here that Area 1 Innovation, Technological Development and Knowledge-based society seeks to position the region as an active player under the European Research Area in the fields of information and communication technologies, health and tourism, amongst others. To that end, measures must be taken to attract researchers of international standing and institutions that show the greatest potential, and, crucially, to involve the private sector in technological research and development. We would also highlight + CONHECIMENTO – System of Incentives for Technological Research and Development of the Autonomous Region of Madeira which seeks to step up regional RTD efforts and create new knowledge in order to make companies more competitive, promoting coordination between those companies and the bodies of the Scientific and Technological System.

1.2 Providing support Policy programmes/actions contributing to this aim? to potential Yes No Don’t know beneficiaries to access Brief description: EU funds and By means of the Regional Agency for the Development of participate in EU Research, Technology and Innovation (ARDITI), the Autonomous initiatives in the field Region of Madeira (ARM) has been promoting support for of research and research and development activities through the allocation of innovation funding of scientific research and technological development projects, grants for teachers and researchers and post-graduate grants for masters, doctorates and post-doctorates. Furthermore, + Conhecimento has been promoting the creation and strengthening of RTD competences, e.g. through RTD projects promoted by companies, including industrial research and/or experimental development activities, leading to the creation of new products, processes or systems and the introduction of significant improvements in existing products, processes or systems. 1.3 Encouraging the Policy programmes/actions contributing to this aim?

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use of the results of Yes No Don’t know research projects in Brief description: innovative products EMPREENDINOV and EMPREENDINOV II have been and services contributing to the transformation and growth of the regional economy, by stimulating the emergence of new entrepreneurs and the creation of new companies, capable of contributing to the diversification and competitiveness of the enterprise fabric, through investments leading to the introduction of new products, new technological processes, new distribution, marketing, information and communication techniques, innovation techniques, energy rationalisation and environmental management, and other competitive factors. 1.4 Removing barriers Policy programmes/actions contributing to this aim? to innovation, such as Yes No Don’t know expensive intellectual Brief description: property rights and ...... limited access to ...... finance ...... 1.5 Participating in one Policy programmes/actions contributing to this aim? of the European Yes No Don’t know Innovation Partnerships If so, which one? ...... 1.6 Stimulating social Policy programmes/actions contributing to this aim? innovation Yes No Don’t know Brief description: ...... 1.7 Cooperation with Policy programmes/actions contributing to this aim? international partners in Yes No Don’t know the field of research Brief description: and innovation ...... 1.8 Encouraging Policy programmes/actions contributing to this aim? innovation in the public Yes No Don’t know CDR5172-2013_00_00_TRA_TCD 157 - 8 -

sector7 Brief description: The Intervir+ Programme is intended to ensure the growth of the regional economy and employment, environmental protection policies, social cohesion and regional development at two levels: public and private. It therefore operates as an incentive for innovation in the public sector in various areas of action under the 5 Areas for intervention.

2) One of the main aims of the Europe 2020 Strategy is to increase investments in R&D to 3% of EU GDP. This target is underpinned by several actions under Innovation Union. The latest Innovation Union Scoreboard8 of the European Commission, a progress monitoring tool, shows that there are big differences in the progress made towards this target across the EU. Which of the following challenges would you consider as the most urgent to address? Multiple answers possible

Under-investment in the existing knowledge base (infrastructure, public research centres etc.); Poor access to finance for innovative start-ups; High costs of intellectual property rights (IPRs); Ineffective use of the innovation possibilities offered by public procurement; Fragmentation and costly duplication of projects and programmes; No strategic approach to innovation at national level; No real cooperation between research and industry, limited scale of bringing ideas to market; So-called "brain-drain" (best talents leaving Europe for opportunities elsewhere);

Other (please specify) ......

7 For more information on innovation in public sector, please visit European Public Innovation Scoreboard webpages: http://ec.europa.eu/enterprise/policies/innovation/policy/public-sector-innovation/index_en.htm. 8 2013 Innovation Union Scoreboard: http://ec.europa.eu/enterprise/policies/innovation/facts-figures-analysis/innovation- scoreboard. 8 - 9 -

......

BOX 2 Regional Policy contributing to smart growth in Europe

The Communication of the European Commission entitled "Regional Policy contributing to smart growth in Europe 20209" [COM(2010) 553] sets out the role of regional policy in implementing the Europe 2020 strategy10 in the area of smart growth and in particular the flagship initiative Innovation Union.11 The Communication calls on national and regional governments to develop smart specialisation strategies to maximise the impact of regional policy in combination with other EU policies. As a follow-up, in June 2011 the European Commission launched an online platform with a set of tools which can be used to optimise the development of local and regional smart strategies. The Smart Specialisation Platform (SPP) provides users with practical guidelines such as the latest news and events, as well as many other features. In the Communication document, the European Commission provides a non- exhausive list of ideas which regions could use to design their strategies: 1. Innovation clusters for regional growth Clusters provide a favourable environment for fostering competitiveness and driving innovation. Support for their development needs to be concentrated on areas of comparative advantage. 2. Innovation-friendly business environments for SMEs Regional and national authorities should support innovation-friendly business environments to assist SMEs, R&D-intensive ones especially, and the creation of new firms. 3. Lifelong learning in research and innovation Focusing school, vocational and higher education curricula on cross-sector skills such as creativity and entrepreneurship will help young people to develop their full potential for innovation. 4. Attractive regional research infrastructure and centres of competence National and regional authorities should consider, in particular, how EU regional policy can contribute to the 2015 objective of the Innovation Union flagship of completing or

9 COM(2010) 553, available online in all EU official langauges: http://eur-lex.europa.eu/Result.do?T1=V5&T2=2010&T3=553&RechType=RECH_naturel&Submit=Search. 10 COM (2010)2020 'Europe 2020: a strategy for smart sustainable and inclusive growth'.

11 Please see also CoR Opinion on the Flagship Initiative 'Innovation Union' from 30 June 2011, which lists a similar list of priority actions, available in your language at: V/010&id=20858http://www.toad.cor.europa.eu/corwipdetail.aspx?folderpath=EDUC- V/010&id=20858 CDR5172-2013_00_00_TRA_TCD 159 - 10 -

initiating 60% of the research infrastructure currently identified by the European Strategy Forum on Research Infrastructures (ESFRI)12. 5. Creativity and cultural industries Cultural and creative industries, which flourish at local and regional level, are in a strategic position to link creativity and innovation.13 They should be integrated into regional development strategies. 6. Digital Agenda With regard to the significance of ICT for the innovation system, Member States should consider how to better use the ERDF to accelerate achievement of the EU 2020 objectives for broadband access. 7. Public procurement Innovative public procurement means the public sector taking on the role and risks of a lead customer, while improving the quality of its services and productivity.

3) In line with the Innovation Union flagship initiative and the additional Communication on "Regional Policy contributing to smart growth in Europe 2020" (see Box 2), local and regional authorities are encouraged to build smart specialisation strategies, as a condition for having access to EU Structural Funds available for investments in research and innovation. Does your region/city have a smart specialisation strategy?

Yes No Don’t know

 If you answered "yes" please describe briefly its main elements and the opportunities you have identified in your smart specialisation strategy, corresponding to the list in Box 2. By means of the ARDITI the Region has developed the PIDTI – Action Plan for Research, Technological Development and Innovation of the Autonomous Region of Madeira which has involved more than 30 bodies and established the priorities and strategic actions for the Region in various areas of development. The PIDTI is aligned with the RIS3 strategy, in accordance with the Europe 2020 strategy and the guidelines for the NRP 2020, and seeks to create a culture of RTD+I in the ARM in which the value of knowledge and ideas, and the benefits they bring to society, are recognised, and above all which rewards those who create knowledge and enable it to serve social and economic development. The underlying principles of this plan are: Excellence, Value, Strategic Importance, Cooperation and Partnerships, Talent and Leadership and Visibility. These principles set a

12 ESFRI website: http://ec.europa.eu/research/infrastructures/index_en.cfm?pg=esfri. 13 COM(2010)183 “Unlocking the potential of cultural and creative industries'. 10 - 11 -

clear orientation and a solid basis in the areas covered: Health and Well-being; Agri-food Quality; Sustainability, Management and Maintenance of Infrastructures; Bio-sustainability; Information and Communication Technologies; Energy, Mobility and Climate Change; Tourism and Regional Development; Innovation and Entrepreneurship.  If you answered "no" please let us know whether your region/city was asked by your national government to initiate a smart specialisation strategy.

Yes No Don’t know

4) Innovation Union and the concept of smart specialisation encourage a better integration of cultural and creative industries in the overall economic development. Although they have a high innovation potential, they are not always included in strategies or projects. Are cultural and creative industries included in the economic development strategy and/or in the smart specialisation strategy of your city/region? Yes No Don’t know

 If you answered "yes" please describe how. There is no specific action or reference in the PIDTI to cultural or creative industries, but they are nevertheless present in various areas such as Information and Communication Technologies which includes the forthcoming work with the Madeira Interactive Technologies Institute and with applied research projects on human-machine interaction.

How is the Innovation Union relevant to your city or region?

5) The Innovation Union contains 34 actions, which are listed with a detailed description on a dedicated platform: Innovation Union Information and Intelligence system (I3S)14. All actions are grouped under 12 thematic headings and an additional one on monitoring progress.15 In your opinion and from a regional perspective, please state in which of these chapters has the EU made the most significant progress, which ones have good prospects and in which ones has the EU not done enough. Significant Some progress No visible progress and good progress, more

14 Innovation Union Information and Intelligence system: http://ec.europa.eu/research/innovation-union/index_en.cfm?pg=action- points. 15 Please see the 2013 Innovation Union Scoreboard: http://ec.europa.eu/enterprise/policies/innovation/facts-figures- analysis/innovation-scoreboard and the 2012 Regional Progress Innovation Monitor: http://ec.europa.eu/enterprise/policies/innovation/policy/regional-innovation/monitor/ CDR5172-2013_00_00_TRA_TCD 1511 - 12 -

prospects effort needed Promoting excellence in education and skills development Delivering measures for the European Research Area to be completed by 2014 Focusing EU funding instruments on Innovation Union priorities Promoting the European Institute of Innovation and Technology (EIT) and its Knowledge and Innovation Communities (KICs) as a model of innovation governance in Europe Enhancing access to finance for innovative companies Creating a single innovation market Promoting openness and capitalising on Europe's creative potential Spreading the benefits of innovation across the EU Increasing social benefits Pooling forces to achieve breakthroughs: European Innovation Partnerships Leveraging our policies externally Reforming research and innovation systems Additional comments: ......

6) Overall, what are the strong and weak points of the Innovation Union flagship initiative, as seen from your regional/local standpoint? The strong points are those that result from the greater focus on innovation as opposed to investments in infrastructures and other tangible assets. Coming closer to the market by strengthening RTD in partnership with companies, particularly at local and regional level. The weak points relate to the difficulty in establishing a smart specialisation strategy in regions with very low levels of RTD, as in the case of the Autonomous Region of Madeira. Furthermore, there are problems relating to the idea that it is possible to transpose innovation models which work in the main large European centres and in association with large 12 - 13 -

universities, to outermost regions with a weak RTD and innovation culture and with an uncompetitive economic fabric geared towards export.

7) Would you recommend any specific changes to the Innovation Union flagship initiative, during the mid-term review of the Europe 2020 strategy in 2014? Please explain The principles of the initiative are correct but its implementation is clearly diverging from the objectives set, since we are approaching 2014 and the inertia and pressures to maintain previous models are increasing. This issue is particularly significant at a time of crisis and instability when there is a clear lack of political orientation.

Are your country's policies relevant to your city or region?

8) Does your country's 2013 (current) National Reform Programme16 (NRP) for Europe 2020 adequately respond to your regional/local needs in the policy areas covered by the Innovation Union flagship initiative (e.g. investments in R&D, bringing ideas to market, smart specialisation)? Yes No Don’t know

Please explain The problems mentioned in the NRP also have an impact at regional level, and even more so in a small outermost region like Madeira. In this respect, the responses provided will be relevant but will need to be adapted.

9) Would you suggest any changes in your country's National Reform Programme for 2014 in the area of innovation? Yes No Don’t know

Please explain The PIDTI is a complete and comprehensive plan which provides the responses best suited to Madeira.

16 All available here: http://ec.europa.eu/europe2020/making-it-happen/country-specific-recommendations/index_en.htm. CDR5172-2013_00_00_TRA_TCD 1513 - 14 -

Policy and funding issues

10) Which of the sources of funding listed below are used to finance your actions under the Innovation Union flagship initiative? Are any other policy/financial instruments involved? Multiple answers possible FP7 (The Seventh Framework Programme for Research and Technological Development) Competitiveness and Innovation Framework Programme (CIP, 2007-2013):

► Entrepreneurship and Innovation Programme (EIP)

► Intelligent Energy-Europe Programme

European Regional Development Fund

The Lifelong Learning Programme

Others? Please specify: ......

11) Are any of the actions you have undertaken to implement the Innovation Union flagship initiative (as stated in your answers to questions 1 and 2) carried out in partnership with different tiers of government? If so, please state (a) which administrative levels are involved and (b) which practical arrangements are taken to manage these actions jointly.

The Regional Government of Madeira has been involved.

12) The policy goals under Innovation Union require an integrated, multi-sector approach. They can be achieved only if relevant stakeholders are also involved. Do you have a strategy for involving these various actors, such as the different research institutions, innovation centres, hi- tech companies (especially SMEs) and members of the public? If so, what kind of involvement have you pursued (e.g. information campaigns, dedicated events, PPPs)?

Please explain. From the outset, the PIDTI was drawn up and implemented on the basis of a consensus resulting from the joint work of more than 30 regional bodies. Under the plan, this aspect – joint involvement and interactivity – is considered fundamental to its successful implementation. Furthermore, the objectives of the ARDITI - Regional Agency for the Development of Research, Technology and Innovation - include strengthening cooperation and links amongst 14 - 15 -

its partners and also between its partners and the scientific and business community, and promoting greater stakeholder involvement, ensuring that all partners are fully involved in the development, implementation and monitoring of the Region's smart specialisation strategy.

13) Please add any further comments you wish to make on the issues covered in this questionnaire......

SHARE YOUR GOOD PRACTICE

As part of the preparations for the CoR conference to be held on 27 November 2013 and to showcase good practices in areas covered by the Innovation Union flagship initiative (e.g. smart specialisation strategies, hi-tech clusters, bringing ideas to market, innovation in public administration), you are invited to submit examples of good practice from your local area.

Please complete the form available on our website:

http://portal.cor.europa.eu/europe2020/MonitoringFlagships/Pages/Welcome.aspx

JOIN THE EUROPE 2020 MONITORING PLATFORM

To help convey the voice of EU cities and regions in the implementation of Europe 2020 at EU level and in your country, join us. For more information, visit: http://portal.cor.europa.eu/europe2020/Knowledge/Pages/BecomeaMember.a spx

THANK YOU FOR YOUR COOPERATION!

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