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Swot Analysis “Development of an innovative network for the promotion of extroversion of agro-food companies in Adriatic – Ionian Area” SWOT ANALYSIS This report was prepared for and submitted to the “INNOVAGRO” Project by: “This document has been produced with the financial assistance of the European Union. The content of the document is the sole responsibility of “Chania Chamber of Commerce & Industry” and can under no circumstances be regarded as reflecting the position of the European Union and/or ADRION Programme authorities”. © Copyright by the “INNOVAGRO” project SWOT ANALYSIS The “INNOVAGRO” partnership consists of: Name Role Country Chania Chamber of Commerce and Industry Lead Partner Greece Region of Crete Partner 2 Greece Technical University of Crete Partner 3 Greece Network of the Insular Chamber of Commerce and Industry of the European Partner 4 Greece Union Province of Potenza Partner 5 Italy E-institute, institute for comprehensive Partner 6 Slovenia development solutions Italian Confederation of Agriculture Partner 7 Italy Union of Chambers of Commerce and Partner 8 Albania Industry of Albania Chamber of Commerce and Industry of Partner 9 Serbia Serbia University of Basilicata Partner 10 Italy History Changes Version Date of Issue Document Author(s) Controller Number Title 1 29/3/2019 SWOT ANALYS Eirini Sylleli Thodoris Tsimrikidis ©INNOVAGRO Page - 1 - SWOT ANALYSIS Table of Contents INTRODUCTION 3 1. DESCRIPTION OF INNOVAGRO PROJECT 4 2. AGRO-FOOD SECTOR DESCRIPTION / CURRENT SITUATION 8 2.1 Market size and trends at regional/national level 8 2.2 Description of competition 18 2.3 Human Resources in the enterprises of agro-food sector 25 2.4 Business environment of the agro-food sector 36 2.5 Existing business networks/co-operations/clusters/chains 45 2.6 Main challenges of the agrofood sector 54 3. PRESENTATION OF THE IMPLEMENTATION AREA/ STRUCTURE & 60 DEVELOPMENT CHARACTERISTICS 3.1 Development challenges and opportunities 60 3.2 Economic & productive Structure 71 3.3 Physiognomy & Development Characteristics 79 3.4 Demographic and social characteristics of the population 89 3.5 Impact of recent development interventions 96 3.6 Development prospects over a 10-year horizon 102 4. PROSPECTS & TRENDS OF THE AGRO-FOOD SECTOR 105 4.1 Technological and organizational changes 105 4.2 Innovation capability and opportunities of agro-food enterprises 108 4.3 Sustainable development (environment) challenges and trends 112 4.4 Prospects of the sector over a 10-year horizon 118 4.5 Potential agro-food clusters/networks/chains 125 5. SWOT ANALYSIS RESULTS 131 6. SUMMARY 133 7. ANNEXES (SWOT ANALYSIS QUESTIONNAIRES 136 ©INNOVAGRO Page - 2 - SWOT ANALYSIS INTRODUCTION One of the most important objectives of INNOVAGRO project is to develop updated sectoral intelligence on the most important issues concerning agrofood sector that can be addressed at interregional level, in close interaction with the specific regional & national development policies of the participating countries, and this is the main aim of this deliverable. To this aim, the project’s partnership identified the S.W.O.T. analysis as the most appropriate approach to evaluate strengths, weaknesses, opportunities and threats within the agrofood sector, from a local/regional/national/interregional perspective, where: •Strengths: characteristics that give the agrofood sector in the specific implementation area an advantage over others. •Weaknesses: characteristics that create for the agrofood sector in the specific implementation area a disadvantage relative to others. •Opportunities: elements that the agrofood sector could exploit to its advantage. •Threats: elements in the environment that could cause trouble for the agrofood sector. This S.W.O.T. analysis focuses on the following 6 macro topics: Agrofood Market/Business Environment Agrofood Structure Research/ Innovation/Technology Sustainable Development (environment/biodiversity) Human Resources Co-operation/Clustering/Networking In addition, this Sector S.W.O.T. Analysis provides information about the relevance of the agrofood sector with the specific development characteristics of each participating region/country (Region of Crete, Region of Basilicata, Region of Puglia, Albania, Serbia, and Slovenia) and the relevant regional/national development policies. Consequently, this S.W.O.T. analysis could be considered as benchmark for the cross- region/country comparison by providing specificities of the S.W.O.T. analysis at regional/national/interregional level. ©INNOVAGRO Page - 3 - SWOT ANALYSIS 1. DESCRIPTION OF PROJECT “INNOVAGRO” Project details Project title: “Development of an innovative network for the promotion of extroversion of agro-food companies in Adriatic – Ionian Area” Acronym: INNOVAGRO Programme Priority: 1) Innovative and smart region Specific Objective: Support the development of a regional innovation system for the Adriatic - Ionian area Project Number: 613 Project’s completion date: 31st of October 2019 Project Total Budget: 1,060,000 € Brief description – Project Objectives The ADRION area is characterized by low innovation performance, limited capacity of SMEs, inadequate cooperation among companies and research institutes, low synergies among agro-food and tourism sector and low implementation of environmentally – friendly farming practices. On the other hand, there are some strong points, such as the existence of quality agro-food products, the existence of a number of competitive and highly active research and innovation clusters, albeit with poor intraregional joint activities, and also the existence of RIS3, where transnational cooperation can focus on, in order to find solutions in the common problem of SMEs extroversion. The field is complex and requires much learning in terms of internationalization, access to market, financing, networking, innovation capacity, business transfer, entrepreneurship, cross – border & cross – sector co-operation, and environmentally – friendly farming practices . It also entails incorporation of new forms of SME development, such as design, eco-conception and corporate social responsibility. The project focuses on the development of links and synergies between farmers, agro-food enterprises, Research Institutes and Public Authorities, for a) the promotion of agro-food products’ extroversion, b) the development of agro-food companies’ internalization, and c) the promotion of environmentally – friendly farming practices. ©INNOVAGRO Page - 4 - SWOT ANALYSIS The main objective of the “INNOVAGRO” project is the development of an interregional system for the reinforcing of the interaction between research centers and universities, companies of the agro-food sector, as well as the rest of the institutions dealing with promoting extroversion and entrepreneurship in the participating countries, so as to provide SMEs with innovative services of marketing and management, in order to increase their extroversion and internalization. This main objective is further analyzed in the following sub- objectives: Development of innovative mechanisms and tools aiming at the amplification of the collaboration between the participant countries’ SMEs and the reinforcement of their ability to do business abroad Development of innovative transnational business networking Development and dissemination of knowledge, aiming at improving the competitiveness of agro-food SMEs Reinforcement of the services that promote the innovation and extroversion of agro- food SMEs Creation of co-operation network between professional associations from the agro- food and tourism sector, Research Institutions, and Public Authorities Link farmers, agro-food and agro-tourism companies, as a transnational vertically intergraded chain Create awareness about the implementation of environmentally – friendly farming practices. Outputs Project’s main outputs concern: a. The establishment of a Transnational Cooperation Network in agro-food & tourism sector b. The development of a Virtual Transnational Business Innovation & Entrepreneurship Center (VIBIEC), offering support through e-incubators, e-business network platform, and other self-assessment tools. One of the main project’s outputs is the development of a Virtual Transnational Business & Entrepreneurship Center (in a form of a computerized specialized Information Environment ©INNOVAGRO Page - 5 - SWOT ANALYSIS which will provide support through e-incubators, e-business network platform, digital tools for the self-assessment of an SME’s level of extroversion, e-library system, etc.) in which all partners of the consortium will be involved and will continue to collaborate towards the implementation of future transfer activities, right after project’s ending. This e-platform will also include a section offering or requesting cooperation among clusters or bodies and SMEs acting in agro food sector in all over Europe. The interested entities/cluster organizations are allowed to post contact details, a short description of the proposal/request/intention and type of cooperation, etc. With this tool the partnership would like to transfer to other territories the project’s results trying to influence the EU agro-food policy space. Results Given the objectives that the project is intended to achieve and in order to help the SMEs to innovate and to access the international markets the partnership will work closely to improve the SMEs’ competitiveness paying a particular care to synergy-building processes and the creation of links between Institutions,
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