Regional Innovation Strategies in Central Macedonia: the Impact

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Regional Innovation Strategies in Central Macedonia: the impact

Regional Innovation Strategy for the “South & East Region” of Lithuania

LAUNCH EVENT, KAUNAS, 22/9/05

Paraskevi Tarani Regional Innovation Strategies in Central Macedonia: the impact

9 The profile of the region 9 The implementation of Regional innovation Strategies - the progress 9 The impact in the region

Paraskevi Tarani I. Central Macedonia – the region at a glance

Greece 9 Strategic position in the southern Europe, neighbouring with the Balkans and Eastern Europe. 9 Prosperous region combining Region of dynamic and specialized Central workforce Macedonia 9 Good opportunities to national and foreign investors 9 Transport and communication networks, and 9 The presence of national and international organisations in Thessaloniki I. Central Macedonia – the region at a glance

Regional GDP in the European Union Objective 1 – Convergence Phasing out = GDP >75% EU25 / <75% EU15

Average 2000 – 2001 - 2002 2002

GDP per capita GDP per capita Unemployment GDP per capita PPS EU25=100 PPS* EU15=100 Rate % PPS * EU25=100

76,04 69,37 10,1 79,1

*Purchasing Power Standards I. Central Macedonia – the region at a glance

Basic Regional Figures Source : EUROSTAT (NEW CRONOS)

Central Macedonia Greece

Surface (Km2) 19.146,2 131.625,5

Population (2000) 1.812.400 10.554.400

G.D.P. (2000) 11.670,9 11.638,7 Euro per inhabitant

Employment (2000) % of the total 37,1 % 37,4 % population

Unemployment (2001) % of the 10,8 % 10,2 % total work-force I. Central Macedonia – the region at a glance

Basic Sectors in the Region sector Regional Regional distribution distribution of of GDP employment Primary sector 19% 18% secondary 25,5% 28% sector services 55,5% 54% I. Central Macedonia – the region at a glance

R&D and Innovation potential

Organisation Size Location Aristotle University 4.000 staff/ 70.000 students Thessaloniki Macedonia University 8 departments/10.000 Thessaloniki students Higher Tech Institute 650 staff/ 18.000 students Thessaloniki Higher Tech Institute 300 staff/ 7.000 students Serres FOURTH 400 researchers/ 4 Institutes Thessaloniki Technopolis: Information 77 companies / 800 staff Thessaloniki Technology Cluster I. Central Macedonia – the region at a glance

Indicators per Greek Regions

I. Central Macedonia – the region at a glance

Strengths and weaknesses

STRENGTHS Manufacturing is considerably developed in Central Macedonia. The Region is the centre of a new, but dynamic industrial complex, SMEs in the branches of food and beverage, textile and clothing, furniture, and larger companies in the industries of metal production, chemicals, and plastics. This new productive complex includes most of the 2,800 Greek firms which have invested in the Balkans. The emerging industries and Foreign Direct Investment belong to the tertiary sector, including medicine and health services, software, international retail chains, business services, and tourist services. The region has a strong education and research base, with the Aristotle University of Thessaloniki and the University of Macedonia, with 4,000 staff members and 70,000 students. There are also two Technical Educational Institutes and the Thessaloniki Technology Park, which support the local industry. The Prefecture of Thessaloniki, located in Central Macedonia, is the second most important centre in Greece after Attiki: it is a major transport hub, most of the Region's industrial activity is concentrated here, and that its port and airport handle a substantial percentage of the country's imports and exports.

WEAKNESSES Industrial composition of traditional branches: food, textile, basic metals Labour cost corporate strategies; vulnerability vis-a-vis low labour cost countries Low technology and R&D investment; fragmented technology supply Few technology intermediary structures; mismatch between technology supply and demand II. Central Macedonia Innovation Strategy

RTP, DG Regio, 1995-97

RTP was the first attempt for the Regional Innovation Strategies in Central Macedonia RTP aimed, on the one hand, at enhancing innovation and regional competitiveness and enabling the industry of Central Macedonia to work at the best practice level, and on the other hand, elaborating methodologies and tools appropriate at sustaining regional innovation.

RTP methodology II. Central Macedonia Innovation Strategy

RTP, DG Regio, 1995-97 Stage I: Setting up the RTP II. Central Macedonia Innovation Strategy

RTP, DG Regio, 1995-97 Stage II. analysis II. Central Macedonia Innovation Strategy

RTP, DG Regio, 1995-97 Stage III: Strategy Networking Innovation ¾Development of Human resources Funding clusters and networks ¾Training in new ¾International technologies, innovation ¾Optimise existing technology co-operation management, and risk funding opportunities management ¾Increase the proportion of CSF funds for technology Regional companies Technology Technology supply transfer ¾Improve the ¾Expand the TT base Monitoring and regional R&D base in ¾From hard to soft evaluation the field of emerging TT infrastructure technologies ¾Telematics for TT II. Central Macedonia Innovation Strategy RTP, DG Regio, 1995-97 Priority 1: INCREASE FUNDING AVAILABLE TO BUSINESSES FOR TECHNOLOGY AND INNOVATION 1. Funding Businesses for Technological Modernisation 2. Funding Businesses for Research and Technological Development 3. Funding Businesses from European R&D Programmes Priority 2: SUPPORT TECHNOLOGICAL CO- OPERATION AMONG BUSINESSES 4. Foreign Direct Investment and International Technology Co-operation Stage IV: 5. Networking in the Food Industry 6. Networking in the Textile Industry Action Plan Priority 3: INCREASE OF HUMAN RESOURCE TECHNOLOGY SKILLS 7. Employee Technology Training RTP concluded 8. Training in Innovation Management with the 9. Training in Risk Management for Investment in South-East Europe 10. Training in Quality and Exports elaboration of a Priority 4: SUPPORT TECHNOLOGY TRANSFER AND BUSINESS ACCESS TO regional EXTERNAL SOURCES OF TECHNOLOGY 11. Technology Transfer Department at the Thessaloniki Technology Park innovation 12. Textiles Institute of Northern Greece strategy based on 13. Centre for Research Dissemination at the Aristotle University of Thessaloniki 14. Food Institute of Northern Greece six priorities, 15. Local Centres and Network for Technology Services. which in turn are Centre for Industrial and Developmental Studies of Northern Greece specialised in 22 Priority 5: SUPPORT THE ENDOGENOUS TECHNOLOGY SUPPLY 17. Associations for Industrial Information Technologies pilot projects. 18. Associations for Clean Technologies and Environment 19. Associations for Automation Systems 20. Association for Quality Control 21. Associations for Agro-technologies Priority 6: MONITORING AND EVALUATION 22. Observatory for Innovation and Development II. Central Macedonia Innovation Strategy

RIS+ Implementation of the RTP Action Plan, DG Regio, 1999-2001

The main objective of "RIS+ Central Macedonia" was to fund the experimental phase of selected projects proposed in the Regional Technology Plan (RTP) Action Plan of Central Macedonia. The RTP constituted a collective effort to support innovation in the Region, through the promotion of applied research, co-operation between research institutions and industry, technology transfer, entrepreneurial capabilities, new production processes and effective competition in the global market. The RTP in Central Macedonia introduced a voluntary planning process in the Region, in the field of innovation. Due to the development of the RTP, innovation became part of the regional planning agenda. The continuous incorporation of innovative actions into regional planning mechanisms constitutes the major achievement of RIS+ in Central Macedonia. II. Central Macedonia Innovation Strategy

RIS+ Implementation of the RTP Action Plan, DG Regio, 1999-2001

Pilot application of 9 RTP projects: Advance in the implementation of the RTP Action Plan. Other 7 projects out of 22 of RTP, were approved for funding from different Operational programs of the 2nd GSF

Update of RTP action plan: RIS+ action plan based on best practices and projects from EU RIS regions.

International exchange and promotion of the RTP- RIS+ projects: networking with RIS regions, conference, promotion of RIS+ and projects to the business. II. Central Macedonia Innovation Strategy Stage V: Implementation, 1997-99 RTP – RIS projects

The figure presents the connection between the two programmes RTP and RIS+ concerning the priority areas and the pilot projects concluded. The pilot projects shown in red (9) are the pilot actions, which have been subsumed under the RIS+ programme. II. Central Macedonia Innovation Strategy RIS+ Network

The Hellenic RITTS-RIS Association

RIS projects in Greece 1994-96: RTP C. Macedonia

1997-99: RIS W. Macedonia, Thessaly, Sterea Ellada, and RITTS Crete

1998-00: RIS Epirus, RITTS EMT, and RIS Northern Agean

2000-: RIS+ C. Macedonia, W. Macedonia, Thessaly, Sterea Ellada, Peloponnesus In succession…

A revised action plan for the region of Central Macedonia

The revised action plan for innovation in Central Macedonia elaborated in the framework of RIS+ project, constitutes the basic outline for the submission and approval of a project entitled "Excellence-in-Central Macedonia" under the framework of the Regional Innovative Actions Programme.

The main objective of the Excellence-in-Central Macedonia work plan is to make the companies and technology intermediary organisations of the Region familiar with the latest advances in business, technological, production, and manufacturing practices on a global scale. To achieve this objective, the programme has laid down four aims: II. Central Macedonia Innovation Strategy RIS+ Network HeRisNet: Membership

• The Hellenic RIS Network is a non-profit Association. It has been created on July 1997, during a Forum on Innovation Strategies in Greece, which gathered together the RTP-RITTS-RIS regions and 70 other organisations involved in innovation and technology transfer. • Member of the Network may become any participant in the Steering Committee and the Management Unit of a RITTS-RIS project, scientist and expert involved in regional innovation, representative of local / regional authority interested in the promotion of innovation. In succession…

A revised action plan for the region of Central Macedonia

The experience acquired by the development of all RIS+ actions and pilot applications contributed the elements of this strategy for Central Macedonia, tailored to incorporate the new needs that appeared and utilise the new regional capabilities. Based on the lessons learnt from the RIS+ project, the new Action Plan for the region of Central Macedonia codifies a revised strategy for regional innovation and development based on three pillars:

•The first pillar is "high tech clusters". The RTP's strategy was focused on Central Macedonia's industrial and especially their latent research and technology integration. These constituted the Plan's basic action priorities. The focus point for the revised action plan is now turned from the individual firm to the cluster and especially knowledge-based clusters as a key element in changing the regional production structure. •The second pillar is the effort to improve the co-ordination between technological supply and demand through the enhancement of the regional technology transfer system. •The third pillar is experimentation with and exposure to new tools to increase regional intelligence such as: e-learning, e-networking, new products development and technological foresight. In succession…

A revised action plan for the region of Central Macedonia

Excellence in Central Macedonia, 2002-2004 DG Regio, Innovative Actions 2000-2006

1. increase regional 3. sustain the development technology intelligence and the of knowledge-based clusters understanding of emerging features in innovation and technology 4. help the Region in defining, monitoring, evaluating and 2. disseminate business restructuring a comprehensive excellence and world class regional development policy, manufacturing principles based on innovation and sustainability II. Central Macedonia Innovation Strategy

Excellence in Central Macedonia, 2002-2004

The overall structure of the New Action Plan is illustrated in the following Diagram. At the heart of the strategy are a number of selected industrial clusters representing important and emerging industries of the Region (i.e. Agriculture, Food and beverages, Electrical machinery, Software, Pharmaceuticals, Medical services). For each of these Clusters, a detailed development plan will be prepared and validated, introducing business excellence and world class manufacturing principles. II. Central Macedonia Innovation Strategy Excellence in Central Macedonia, 2002-2004

Digital Research Center, AUTH

www.vrc.gr II. Central Macedonia Innovation Strategy Excellence in Central Macedonia, 2002-2004

DRC is an infrastructure which supports the cooperation between academic research units and businesses for the exploitation of R&D results. It includes four components: " On-line R&D database " On-line innovation support which facilitates (1) new product development, (2) intellectual property rights management, (3) spin-off creation, and (4) management of quality. " Communication between academia and business through an on-line technology matching tool. " Pilot R&D exploitation projects where private sector and university laboratories cooperate on the development of Digital Research Center, AUTH commercial products or services New product development TOOL based on R&D results. III. The impact in the region

As a result, a new shape of regional innovation policy was generated which led to the drawing of priorities, efforts and actions addressed to build a favour environment for innovation. Also, a regional innovation strategy was formed focusing on the following key policy interventions: (a) Creation of knowledge and technology transfer institutions and practices (b) Promoting the culture of innovation (c) Promoting research and innovation funding resources. (d) Promoting an effective innovation management. III. The impact in the region

The generation of a regional innovation-oriented policy has become much more distinct with the implementation of the RTP project action plans within the RIS+ and Innovative Actions follow-up exercises in the region. The new innovation-oriented policy was thus translated to actions, addressed to cover a wide range of fields for innovation. Actions, such as campaigns, forums, excellence awards, training seminars, international panels, innovation observatories, web-sites, R&D and innovation portals, data bases, on-line provision of information, creation of innovation associations and business clusters were undertaken in order to foster collaborations and networks, upgrade human resources, develop R&D activities, knowledge infrastructures and information transfer mechanisms, provide business innovation services, manage and coordinate innovation, establish financing innovation mechanisms and promote innovation mentality. III. The impact in the region

The next step

Taking into account the region’s overall development strategy as playing a central role in the Balkan’s area and based on its strong R&D institutions and organizations able to promote technology transfer conducted an action plan focusing on two main axes. First, gain internationality and strengthen its position in the wider area by the creation of international information networks, inter-regional co-operations and of advanced business services. Second, enhance new knowledge creation and acquisition, and overcome poor collaborations and interactions between firms and research institutions, through the reinforcement of research activities, the development of generic technologies (communication, information technology, environmental technologies, biotechnologies, automation and quality), and the establishment of institutions of information and technology transfer, and networks.