RECREATE
Transport SME Competitiveness Report Slim version, RECREATE / PGI05275
RECREATE REinforce Competitiveness of REgionAl Transport SMEs PGI05275 Transport SME Competitiveness Report
Slim version
Report elaborated by: R. Jabanda Coventry University Enterprises Ltd UK G. D’Angelo Campania Region IT C. Cotrone Campania Region IT A. Kyriakou Development Agency of South Aegean Region - READ S.A. EL I. Tamiakis Development Agency of South Aegean Region - READ S.A. EL I. Tinfavičienė Lithuanian Innovation Centre LT G. Junevičius Lithuanian Innovation Centre LT E. Nagulevičius Lithuanian Innovation Centre LT P. Bacevičius Lithuanian Innovation Centre LT M. Bogheanu Regional Development Agency South-West Oltenia RO S. Cosmulescu Regional Development Agency South-West Oltenia RO M. Lungu Regional Development Agency South-West Oltenia RO M. Alecu Regional Development Agency South-West Oltenia RO
Revision History
Version Date Modified by Comments
1.1 09/10/2019 S. Cosmulescu Draft submitted to LP.
1.2 03/12/2019 S. Cosmulescu Updated draft submitted to LP.
Full redraft complete, sent to 1.3 29/11/2019 S. Cosmulescu Lead Partner
1.4 18/12/2019 CUE Ltd revision Final version
2 | P a g e
Table of Contents List of Figures ...... 5 List of Tables ...... 5 Abbreviations ...... 6 Executive Summary ...... 7 1. Introduction ...... 9 2. General Information ...... 10 3. Framework ...... 11 3.1 Background of the Regions ...... 11 3.1.1 Geography & Governance ...... 11 West Midlands ...... 11 Campania Region ...... 12 South Aegean Region...... 13 Lithuania ...... 14 South-West Oltenia ...... 15 3.1.2 Major Towns & Accessibility ...... 17 West Midlands ...... 17 Campania Region ...... 18 South Aegean Region...... 19 Lithuania ...... 20 South-West Oltenia ...... 21 3.1.3 Labour Market & Economy ...... 22 West Midlands ...... 22 Campania Region ...... 23 South Aegean Region...... 24 Lithuania ...... 25 South-West Oltenia ...... 26 3.1.4 Transport Infrastructure by Mode ...... 27 West Midlands ...... 27 Campania Region ...... 28 South Aegean Region...... 30 Lithuania ...... 32 South-West Oltenia ...... 33 3.1.5 Stakeholders ...... 36 West Midlands ...... 36 Campania Region ...... 38 South Aegean Region...... 39 Lithuania ...... 40 South-West Oltenia ...... 42 3.1.6 Regional Policy ...... 46 West Midlands ...... 46 Campania Region ...... 47 South Aegean Region...... 48 Lithuania ...... 50 South-West Oltenia ...... 51
3 | P a g e
3.2 Challenges for Transport SMEs to Develop & Commercialise Their Products ...... 53 West Midlands ...... 53 Campania Region ...... 54 South Aegean Region...... 55 Lithuania ...... 56 South-West Oltenia ...... 57 3.3 Opportunities & Obstacles for Transport SMEs – External Megatrends & Transport Concepts of the Future ...... 58 West Midlands ...... 58 Campania Region ...... 61 South Aegean Region...... 62 Lithuania ...... 63 South-West Oltenia ...... 65 3.4 How are Transport SMEs Innovation and / or Products Financed? ...... 73 West Midlands ...... 73 Campania Region ...... 75 South Aegean Region...... 76 Lithuania ...... 76 South-West Oltenia ...... 77 3.5 SWOT Analysis ...... 78 West Midlands ...... 78 Campania Region ...... 79 South Aegean Region...... 80 Lithuania ...... 81 South-West Oltenia ...... 82 Results and Conclusions ...... 83 West Midlands ...... 83 Campania Region ...... 83 South Aegean Region...... 84 Lithuania ...... 86 South-West Oltenia ...... 87 References ...... 88
4 | P a g e
List of Figures Fig. 1 - Geographic location of RECREATE Project Partners 9 Fig. 2 - Major Cities of UK 11 Fig. 3 - Physical Landscape of England 12 Fig. 4 - Italy Regions 12 Fig. 5 - Administrative Divisions of Greece, South Aegean Location 14 Fig 6 - Lithuania in the Baltics & Map of Lithuania 15 Fig. 7 - Location of Romania in EU 15 Fig. 8 - Satellite Map of Romania 15 Fig. 9 - Development Regions of Romania 16 Fig. 10 - Campania Region GDP 23 Fig. 11 - Road Overpass in Craiova 33 Fig. 12 - Underground Road Pass in Craiova 33 Fig. 13 - Craiova Airport Exterior 35 Fig. 14 - Flying Routes – Craiova Int’l Airport 35 Fig. 15 - Value Chains Diagram 66 Fig. 16 - Autonomous Vehicles 70 Fig. 17 - On-Demand Mobility 70 Fig. 18 - Intelligent Transport Systems (ITS) 71 Fig. 19 - Electric Bus & Mini-Bus 71 Fig. 20 - Smart Transport Systems 72 Fig. 21 - High-Speed Train 72
List of Tables Table 1 - Campania region provinces 13 Table 2 - South Aegean Reagional units 13 Table 3 - Lithuania counties 15 Table 4 - Population Data related to WM Region 17 Table 5 - Major Conurbations and Accessibility in the WM Region 18 Table 6 - Major cities/towns in Campania Region 19 Table 7 - Major towns in South Aegean Region 20 Table 8 - Population Data for Major Cities in Lithuania 20 Table 9 - Major Cities/Towns Population in South-West Oltenia 21 Table 10 - Major Cities/Towns Accessibility in South-West Oltenia 21 Table 11 - Labour Market in the WM Region 22 Table 12 - Transport SMEs in the WM Region 22 Table 13 - Labour Market in Transport Related Sectors in South Aegean Region 24 Table 14 - Lithuania GDP 2014-18 25 Table 15 - Business Entities According to Economic Activities in Lithuania 25 Table 16 - Unemployment Rate in Lithuania 26 Table 17 - Amount of Labour Force in Lithuania 2014-18 26 Table 18 - Population by Location SWO Region 26 Table 19 - Active Population SWO Region 2010-2016 26 Table 20 - Analysis of GDP Dynamics 2000-18 in SWO Region 27 Table 21 - GDP Dynamics 2010-2018 - SWO Region & Romania 27 Table 22 - No of SMEs – SWO Region - 2017 27 Table 23 - No of SMEs – SWO Region - 2018 (est.) 27 Table 24 - Transport & Logistics Turnover in Gin South Aegean 30 Table 25 - Greek airlines operating in the RSA and their company status 31 Table 26 - Domestic & International Air Traffic, 2016 31 Table 27 - Type of transport companies in RSA 32
5 | P a g e
Table 28 - Public Transport Network Performance Indicators – Craiova 34 Table 29 - Regular Flights - Craiova Airport 35 Table 30 - Main Universities in WM 36 Table 31 - Business Support Organisations in WM 36 Table 32 - Combined Authority Membership in WM 36 Table 33 - State Transport Institutions, Departments & Innovation Poles (WM) 37 Table 34 - Innovation Clusters in WM 37 Table 35 - Transport Associations in WM / UK 37 Table 36 - Network Operators in WM / UK 37 Table 37 - National & Regional Stakeholders related to RSA 39 Table 38 - Details of local stakeholders RSA 40 Table 39 - National & Regional Stakeholders related to Lithuania 41 Table 40 - Industrial parks in SWO Region 43 Table 41 - Transport-Related Sectors in General (Automotive, Rail, Shipbuilding, Air) 43 Table 42 - Automotive Sector Representation in the SWO Region 43 Table 43 - Stakeholders Involved in Transport SMEs Activity Chain – SWO Region 43 Table 44 - Priorities and Funding of OP South Aegean 2007-2013 49 Table 45 - Campania Region - challenges and priority sectors in research 55 Table 46 - R&D personnel in transport sector Lithuania 56 Table 47 - Transport sector expenditure on R&D activities Lithuania 57 Table 48 - SWOT Analysis, WM 78 Table 49 - SWOT Analysis, Campania 79 Table 50 - SWOT Analysis, Region of South Aegean 80 Table 51 - SWOT Analysis, Lithuania 81 Table 52 - Strengths & Weaknesses by Transport Mode, SWO 82
Abbreviations ACAROM Automobile Manufacturers Association of Romania AONB Area of Natural Beauty (UK) A.P.I.A. Automotive Manufacturers and Importers Association (RO) CC County Council (RO / UK) CCC Coventry City Council (UK) CNIPMMR National Council of SMEs in Romania (RO) DFT Department for Transport (UK) EC European Commission EEA European Economic Area ERDF European Regional Development Fund ESIF European Structural & Investment Funds ETC European Territorial Cooperation (Interreg or Interregional Cooperation) EU European Union GB Great Britain H2020 Horizon 2020 - EU Research and Innovation programme HEI Higher Education Institution HSR High Speed Rail HS2 High Speed Rail project (UK) ITS Intelligent Transportation System LA Local Authority / Local Highway Authorities (UK) LEP Local Enterprise Partnership (UK) LEV Light Electric Vehicles RIS3 Regional Smart Specialisation Strategies RSA Region of South Aegean UNECE United Nations Economic Commission for Europe
6 | P a g e
NACE Statistical Classification of Economic Activities in the European Community NSI National Statistical Institute (RO) NUTS Eurostat Nomenclature of Territorial Units for Statistics PP Project Partner ROP Regional Operational Programme SME Small to Medium Enterprise SUMP Sustainable Urban Mobility Plan SWO South-West Oltenia TEN-T Trans-European Transport Networks TFWM Transport for WM UK United Kingdom of Great Britain and Northern Ireland WM West Midlands WMCA West Midlands Combined Authority
Executive Summary As part of the RECREATE project co-financed by ERDF and implemented under the Interreg Europe programme, competitiveness of Transport-related SMEs has been analysed in five partner regions:
Campania South Aegean West Midlands Lithuania South-West Oltenia Region Region United Kingdom Italy Greece Lithuania Romania
The participating regions in the project were strategically selected based on two main criteria:
1. Transport SME presence and potential 2. Relevance of RECREATE's scope with their ROPs.
They are representing (in terms of transport innovation):
Strong West Midlands with strong automotive base, clusters and SME support schemes. Innovators Strong innovation ecosystem specific to this sector, especially in Low Emission and Connected & Autonomous Vehicles from Coventry, Warwick and Birmingham Universities. Manufacturing Technology Centre, Quinton Rail Innovation Centre and UKBIC. Presence of JLR, Aston Martin, BMW and their Innovative Supply Chains.
Modest South-West Oltenia although a modest innovation overall, the transport sector and Innovators specifically the automotive sector has the biggest developing potential in the region, having over 27 local units working in this field, the most important one being Ford. One remarkable feat of Romania’s national transport research is the high involvement of SMEs.
Lithuania’s transport innovation and SME schemes are relatively low but transport & logistics is one of their priorities for smart specialisation and thus heavy investment is expected.
7 | P a g e
Moderate South Aegean's innovation is low but with a high presence of transport SMEs Innovators especially in the maritime and logistics sector.
Campania although a moderate innovator, recent investments made by large industrial groups such as FIAT (automotive) and Finmeccanica (aerospace and defence) have contributed to a higher growth.
West Midlands Overall, the landscape for SMEs in the transport sector and related fields is positive and on an upward trajectory. There is room for improvement; however, the region boasts strong industry partnerships, an innovative outlook, a supportive business climate, and an internationalisation approach. Coupled with successful case studies and building upon a strong legacy for industry, manufacturing, engineering and automotive, the West Midlands / Warwickshire (and wider Midlands region) continues to be a strong place to attract, incubate and cultivate innovation and transport related industry.
Campania This report attempts to make an exhaustive analysis of SMEs in Campania working in Transport sector. We have examined road, railway, port, airport and interport infrastructures, as well as public and private transport services providing means of transport or components for automotive, aeronautics/aerospace, vehicles, rail transport systems and port and airport logistics sector. The aim is to reopen SMEs participation and identify their needs, in line with RIS3 (1), verifying how innovation challenges have been addressed and with what results.
South Aegean The project REinforce Competitiveness of REgionAl Transport SMEs will map transport SME support measures and assess their effectiveness while the integrated approach adopted by the RECREATE project will drive the identification and further development of support mechanisms in the transport SME sector. The following report is focused on the Region of South Aegean which consists only of islands and geographical challenges arise especially in the transportation sector. Moreover, the report includes general findings as they have been identified through literature review, questionnaires with relevant local and regional stakeholders, as well as analysis of the collected data. The Region of South Aegean is highly touristic but due to numerous factors, research and innovation is considered low compared to the national average and the European average, as well. This report will outline the landscape of competitiveness in transport for the SMEs of the South Aegean Region, to identify the innovation process of the regional transport SMEs, as well as their respective position. This includes analysis of general statistical data at regional level as well as the geographical representation, major cities and their respective demographics, employment statistics and additional economical characteristics, etc. This analysis will be finalised and concluded by the regional innovation potential of the Region.
Lithuania Lithuania is a small country where all OP policies are managed at national level. Although transport is a big contributor to the country's economy and there is a large number of Transport SMEs, the OP does not have a specific focus on transport SMEs yet. The report will help to identify and design approaches that embed new management practices, to identify a set of evaluating criteria for business related elements in Transport-SME sector, in understanding the mechanism to raise competitiveness level of Transport-SME. The specific barriers are identified in Lithuania to help developing relevant Transport-SME support measures to further boost the country's Transport-SMEs’competitiveness.
8 | P a g e
South-West Oltenia The present report contains findings of competitiveness indicators, which are based on the assessment of more than 300 Transport SMEs in South-West Oltenia region. SMEs have not yet succeeded in transforming comparatively good opportunities and conditions into a clear competitive advantage. SMEs see themselves disadvantaged by unfavourable location conditions such as inadequate infrastructure. But the SMEs in SW Oltenia region are making efforts to significantly improve their international competitiveness. An important step to improve international competitiveness is to increase innovation process and energy efficiency. Transport-related SMEs are focused to improve in this respect. SMEs have to implement specific measures to become competitive in the near future and achieve sector-specific targets. From the perspective of Transport-SMEs, support schemes and measures are essential for increasing their level of competitiveness and stimulate their strong motivation to become winners on the market.
1. Introduction 1.1 RECREATE Project
The RECREATE project is under implementation within the third call for proposals of the Interreg Europe 2014-2020 Programme, under the thematic policy topic ‘Improving SMEs Competitiveness’.1
The following five partners are involved in its implementation:
1. Coventry University Enterprises Limited (CUE Ltd.) - United Kingdom
2. Campania Region, Italy
3. Development Agency of South Aegean Region - READ S.A., Greece
4. Lithuanian Innovation Centre, Lithuania
5. Regional Development Agency South-West Oltenia, Romania. Fig 1: Geographic Location of RECREATE Project Partners
1 https://www.interregeurope.eu/
9 | P a g e
RECREATE main objective is to improve the ERDF regional strategy for 2014-2020 for each region in addressing competitiveness of regional transport-related SMEs. The project will provide the policy makers with the necessary evidence and a solid knowledge base to better channel funds for supporting the improvement of capacity and capability of regional SMEs to more rapidly develop and implement products and services in the transport sector.
2. General Information 2.1 Purpose
The purpose of the Transport SMEs Competitiveness Report is to collect information available at regional (and local) level in the field of SMEs competitiveness in the transport- related sector in these partner regions:
1. West Midlands (UK)
2. Campania (Italy)
3. South Aegean (Greece)
4. Lithuania
5. South-West Oltenia (Romania).
Based on the information collected, the Transport SMEs Competitiveness Report for partner regions will be drafted. Using the same approach by all RECREATE project partners, it will facilitate the integration of the findings from the partner regions in a consolidated version of the Transport SMEs Competitiveness Report having an overall image on the status of capacity and capability of Transport-related SMEs sector in the involved regions.
Methodology:
Each partner conducted interviews and administered questionnaires in their local regions with business support organisations and SMEs in the transport sector. Where relevant, the findings and outcomes of these conversations and collected data will be reported in the appropriate sections.
2.2 Object of Investigation 2.2.1 Main Objective To identify the innovation process of transport SMEs in the partner regions.
2.2.2 Specific Objectives The positions of Transport SMEs in the partner regions.
2.2.3 Transport SMEs status quo in each region Regional analysis in Transport-related areas / sectors in the regions.
2.2.4 Capacity & Capability of Regional Transport SMEs To further develop and grow.
10 | P age
3. Framework 3.1 Background of the Regions 3.1.1 Geography & Governance
West Midlands United Kingdom
Location
The UK is located off mainland Europe, North-West of France and separated by the English Channel. The UK has been an active member of the EU since its accession in 1973. UK citizens voted to leave the EU and are currently negotiating a framework for a future relationship ahead of the UK’s scheduled departure from the trading bloc in late 2019.
Constituent Countries
UK is mainly comprised of the island of GB and a portion of the island of Ireland, namely Northern Ireland in the North- East, the only part of the UK sharing a land border with another European country (the Republic of Ireland). The constituent countries of Scotland, England and Wales located in GB and the constituent country of Northern Ireland are together part of the sovereign nation of the UK (see Figure 2 left). 2 3
Fig 2 (left): Major cities, archipelagos, & bodies of waters. Birmingham represents the location of WM. 4
2 https://en.wikipedia.org/wiki/Constituent_state 3 https://www.definitions.net/definition/constituent%20country 4 https://www.cia.gov/library/publications/the-world-factbook/geos/uk.html
11 | P age
Landscape
England's landscape is comprised of low hills and plains, especially in Southern England and Central England where the landlocked area known as the Midlands lies. The Midlands is in close proximity to London.5 WM share a border with Wales. The highest point in the region is Black Mountain at 703 metres (2,307 ft.) in Herefordshire on the border with Wales. The Peak District national park also stretches into the northern corner of Staffordshire, part of the WM larger region. The River Severn, the longest river in the UK, runs southeast through the Midlands region.
Fig 3: Physical Landscape of England 6
Campania Region Italy
Overview of the Region
Campania region has a size of 13 670.95 km². Wedged between Tyrrhenian Sea to the West and southern Apennines to East, the region borders to North-West with Lazio, to North with Molise and to East with Puglia and Basilicata.
Fig 4: Italy Regions map and Campania Region map
5 https://en.wikipedia.org/wiki/The_Midlands 6 http://www.freeworldmaps.net/europe/united-kingdom/england/england.jpg
12 | P age
Campania is mainly hilly (50.8%), 34.6% of it mountainous and 14.6% flat. The coasts total length is about 500 km, including those of islands in the Gulf of Naples. The population is around 5,870,000 inhabitants, making Campania the third most populated region of Italy (and the most populated in the South); the population density is 429 inhabitants per sq. Km, making Campania the first region in relative ranking at national level. 63% of the population resides in 65 centres with more than 20,000 inhabitants.
Pos Province Residents
1 Avellino 423.506
2 Benevento 279.675
3 Caserta 924.166
4 Napoli 3.107.006
5 Salerno 1.104.731 Total 5.839.084
Table 1: Campania Region provinces
South Aegean Region Greece
Overview of the Region
The Region of South Aegean is the fourth smallest out of the 13 Greek regions in terms of both area coverage and population with a total area of 5,286 km2 (4% of Greece) and a population of 338,383 inhabitants (Regional Innovation Monitor Plus, 2017). The region is a complex of dispersed islands and concentrates 3% of the country’s population, includes 13 regional units:
1. Andros 8. Naxos 2. Kalymnos 9. Paros 3. Karpathos 10. Rhodes 4. Kea-Kythnos 11. Syros 5. Kos 12. Thira 6. Milos 13. Tinos 7. Mykonos
Table 2: South Aegean Regional units
13 | P age
The region’s capital is located in Ermoupoli on the island of Syros. The region’s dynamic is mainly derived from the intense touristic activities which take place as the region is considered an internationally renowned touristic destination especially during summer.
Fig 5: Administrative Divisions of Greece. RSA represented by area 12 on the left, highlighted red on the right.
Overview Data