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Regional Innovation Monitor Plus Version 11 February 2014 Regional Innovation Monitor Plus Regional Innovation Report – Lower Silesia To the European Commission Enterprise and Industry Directorate-General Directorate B – Sustainable Growth and EU 2020 www.technopolis-group.com Regional Innovation Monitor Plus Regional Innovation Report - Lower Silesia technopolis |group| in cooperation with Jacek Walendowski, Technopolis Group Belgium www.technopolis-group.com Table of Contents 1. Main Trends and Challenges in the Regional Innovation System 6 1.1 Recent trends in socio-economic performance 6 1.2 Recent trends in regional innovation performance 9 1.3 Identified challenges 15 2. Innovation Policy Governance 17 3. Innovation Policy Instruments and Orientations 22 3.1 The regional innovation policy mix 22 3.2 Appraisal of regional innovation policies 24 3.3 Good practice cases 26 3.4 Towards smart specialisation policies 28 3.5 Possible future orientations and opportunities 31 Appendix A Bibliography 33 Appendix B Stakeholders consulted 35 Appendix C Statistical Data 36 Table of Figures Figure 1: Economic Performance Indicators....................................................................8 Figure 2: Innovation Performance Indicators .................................................................9 Figure 3: Share of R&D Expenditure Per Sector of Performance.................................. 10 Figure 4: Patterns in GERD and GDP .............................................................................11 Figure 5: GERD and GDP Trends................................................................................... 12 Tables Table 1: Innovation Policy Governance in the Voivodeship of Lower Silesia................ 19 Table 2: Innovation Policy Institutional Set-Up and Available Human Resources...... 21 Table 3: Existing Regional Innovation Support Measures ............................................23 Regional Innovation Monitor Plus – Lower Silesia i PREFACE Launched in 2010, the Regional Innovation Monitor1 continues to be one of the flagship initiatives of DG Enterprise and Industry of the European Commission. From the outset, it aimed at supporting sharing of intelligence on innovation policies in some 200 regions across EU20 Member States. RIM Plus aims to help regions to improve their innovation policies based on better and harmonised policy intelligence. The new contract aims to contribute to the development of more effective regional innovation policies and promote policy learning. Building upon the experience gained and results obtained during the implementation of the RIM in the period 2010-2012, the RIM Plus service evolves towards providing practical guidance to regions on how to use the collected information, establishing a network of regional experts with thematic specialisation, and organising specialised workshops taking into account the relevance and potential interest among the regional innovation policy makers. RIM Plus covers EU-20 Member States: Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, the Netherlands, Poland, Portugal, Romania, Slovakia, Spain, Sweden and the United Kingdom. This means that RIM will not concentrate on Member States where the Nomenclature of territorial units for statistics NUTS 1 and 2 levels are identical with the entire country (Estonia, Latvia, and Lithuania), Malta which only has NUTS 3 regions, Slovenia which has a national innovation policy or Cyprus and Luxembourg which are countries without NUTS regions. The main aim of 30 regional reports is to provide a description and analysis of contemporary developments of regional innovation policy, taking into account the specific context of the region as well as general trends. All regional innovation reports are produced in a standardised way using a common methodological and conceptual framework, in order to allow for horizontal analysis, with a view to preparing the Annual EU Regional Innovation Monitor Plus report. European Commission official responsible for the project is Alberto Licciardello ([email protected]). The present report was prepared by Jacek Walendowski ([email protected]). The contents and views expressed in this report do not necessarily reflect the opinions or policies of the Regions, Member States or the European Commission. The Regional Innovation Access Point and Knowledge Hub presenting further details of the regional innovation measures, policy documents and regional organisations in Lower Silesia is accessible through the RIM Plus online inventory of policy measures here: http://ec.europa.eu/enterprise/policies/innovation/policy/regional- innovation/monitor/region/select Copyright of the document belongs to the European Commission. Neither the European Commission, nor any person acting on its behalf, may be held responsible for the use to which information contained in this document may be put, or for any errors which, despite careful preparation and checking, may appear. 1 http://ec.europa.eu/enterprise/policies/innovation/policy/regional-innovation/monitor/ 1 Regional Innovation Monitor Plus – Lower Silesia Executive Summary 1. Main Trends and Challenges in the Regional Innovation System The Voivodeship of Lower Silesia is one of the most advanced industrial regions in Poland. The relatively better socio-economic situation can be partly explained by higher labour productivity in industry and high concentration of foreign investors. However, the region is also characterised by significant intra-regional differences between the North-Centre (so called ‘Copper Valley’ between Legnica-Głogów) and the southern part of the region (Wałbrzych) which underwent structural changes in the mid-1990s as a result of the liquidation of mining and textile companies. Two of the most important branches of economy are the automotive and electro- mechanical sectors. Traditionally, Lower Silesia has been a leader in terms of manufacturing white goods. There is also a large grouping of IT companies operating in the region. Moreover, the region is characterised by a dynamically developing pharmaceutical sector. This is just an illustration of the existing sectoral specialisation of the Voivodeship of Lower Silesia and by no means should be considered as exhaustive. With regard to the innovation performance, it is important to note that that the Voivodeship of Lower Silesia is characterised by a high concentration of R&D investment. It is ranked fifth out of 16 Polish regions. Another issue relating to human capital is a shortage of skills for innovation matching the industry needs. This report also highlights the important role played by large enterprises (> 250 employees) which account for three-quarters of total innovation investment in the manufacturing sector, in addition to the overall low share of R&D investment. During the last decade, there have been no major shifts in these indicators that would reveal structural changes taking place in the Regional Innovation System of Lower Silesia. There is also evidence that the innovation sales have recorded a downward trend over the recent years, while the sales of manufacturing production have been steadily growing (except the year 2009). The development of clusters has been a relatively new development. Clusters in Lower Silesia are at different stages of development. Similar observation can be made in relation to science and technology parks. At present, there are six such initiatives which include Wrocław Technology Park, and Technology Park of Legnica – Legnicki Park Technologiczny KGHM LETIA. Based on the analysis of main trends in the Regional Innovation System of Lower Silesia, complemented by a series of face-to-face interviews with the regional stakeholders, the following three main challenges have been identified: Challenge 1: Set out new pathways of regional development by shifting from traditional manufacturing to a modern and innovative economy In recent years Lower Silesia has been recording the economic growth and falling unemployment. During the 2000-2010 period, the economy grew on average 7.5% per annum, while the unemployment dropped by almost 9 percentage points (Oct. 2002- 2013), i.e. some 120 thous. less unemployed persons. Despite the overall positive performance of Lower Silesia in comparison with other Polish regions, the main issue of concern is the long term sustainability of regional development which is still based on traditional manufacturing industries. In other words, the relatively higher labour productivity in the manufacturing industries, high concentration of foreign direct investments, new investments in special economic zones or even a surge of investments related to automatisation of production processes are clearly important factors that have an influence on the Regional Innovation Monitor Plus – Lower Silesia 2 regional development. Nonetheless, they will not be sufficient alone to contribute to the transformation of the regional economy from a typical industrial centre towards a more modern and innovative economy. Consequently, there is a real and unique opportunity for taking actions, in order to ensure better territorial cohesion and reduce socio-economic disparities with more advanced EU regions. Challenge 2: Promote the development of new skills for innovation While the demographic changes will have an impact on the functioning of higher education institutions (especially private-run entities which are not performing R&D activities in general), the
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