30 May 2016
Regional Innovation Monitor Plus 2016
Regional Innovation Report Puglia (Advanced materials and nanotechnology)
To the European Commission Internal Market, Industry, Entrepreneurship and SMEs Directorate-General Directorate F – Innovation and Advanced Manufacturing
www.technopolis-group.com
Regional Innovation Monitor Plus 2016
Regional Innovation Report Puglia (Advanced materials and nanotechnology)
technopolis |group| in cooperation with
Alessandro Muscio Università degli Studi di Foggia (Italy)
Table of Contents
1. Advanced Manufacturing: Advanced Materials and Nanotechnology 6 1.1 Overview of performance and trends 6 1.2 Business sector perspective 7 1.3 Scientific research potential 9 1.4 Role of intermediary institutions 10 1.5 Developing skills for the future 12 1.6 Major investment projects 12 1.7 International cooperation 14 1.8 Policy support and delivery mechanisms 15 1.9 Good practice case 18 1.9.1 The Boeing-Alenia Aermacchi partnership 18 1.9.2 The CNR Pole for Nanotechnologies 21 1.10 Leveraging the existing potential 23 1.10.1 Future challenges 23 1.10.2 Possible future orientations and opportunities 24 2. Regional Innovation Performance Trends, Governance and Instruments 25 2.1 Recent trends in innovation performance and identified challenges 25 2.2 Institutional framework and set-up 28 2.3 Regional innovation policy mix 30 2.4 Appraisal of regional innovation policies 33 2.5 Policy good practice 35 2.6 Possible future orientations and opportunities 36 Appendix A Bibliography 39 Appendix B Stakeholders consulted 39
List of Tables
Table 1 Participation in FP7 ...... 15 Table 2 Regional innovation support measures ...... 32
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PREFACE In the context of the growth and investment package set out in the Investment Plan of the European Commission, the Regional Innovation Monitor Plus (RIM Plus) provides a unique platform for sharing knowledge and know-how on major innovation and industrial policy trends in in some 200 regions across the EU28 Member States. Launched in 2010, the Regional Innovation Monitor aimed at supporting sharing of intelligence on innovation policies across EU regions. Building upon the experience gained and results obtained during the period 2010-2012, the RIM Plus 2013-2014 provided practical guidance to regions on how to use the collected information, via a network of regional experts. Since 2014, the RIM Plus has introduced a thematic focus on advanced manufacturing. The RIM Plus 2015-2016 evolved from a general monitoring of innovation policies towards establishing a more thematic focus in selected areas in order to contribute to improving the competitiveness of European regions. Particularly, the RIM Plus aims through its activities and in close cooperation with the regional stakeholders and other relevant initiatives to: • contribute to the development of new and open spaces of collaboration and exchange on advanced manufacturing, each with a clearly defined thematic focus; • play an enabling role in providing evidence-based information on specific themes, and bring in outside perspective from other regions; • map out regional practices in support of advanced manufacturing and relevant pilot/demo projects, and work towards involving the relevant stakeholders; • provide an easy access and comparative overview of regional innovation policies and relevant actions in the field of advanced manufacturing; • share the lessons learned with the European Commission services to feed into the preparation of future programmes. The main aim of the 30 regional reports is to provide a description and analysis of developments in the area of advanced manufacturing, with a clearly defined thematic focus and 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 Final EU Regional Innovation Monitor Plus report. European Commission official responsible for the project is Alberto Licciardello ([email protected]). The present report was prepared by Alessandro Muscio ([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. 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. Further information: https://ec.europa.eu/growth/tools-databases/regional-innovation-monitor
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Executive Summary
1. Advanced Manufacturing: Advanced materials and nanotechnology New materials and nanotechnologies have been one of the key priorities of the regional administration in Puglia, both in the past and in the current programming period. Despite backward economic conditions and innovation performance, Puglia can count on a fast-growing aerospace industry, which relies on the use of class-leading advanced materials. Large investments were also made in the area of nanotechnologies, an area in which the region is growing a large base of competencies. Employment in the aerospace sector has been growing steadily, despite the economic downturn brought by the consequences of the world financial crisis. Although there are no significant companies operating in the field of nanotechnologies, the aerospace sector relies on advanced technologies in the field of new materials. While local aerospace companies operate in international-scale value chains, contributing to the growth of first- and second-tier suppliers of components, local research institutions – such as the University of Salento in Lecce and Brindisi, and the National Research Centre (CNR) and Italian Institute of Technology (IIT), both based in Lecce – have generated many start ups in the field of both new materials and nanotechnologies. Although the aerospace sector is geographically concentrated in the province of Brindisi, employment is evenly distributed across the region. Large companies account for 74.1% of employment in the aerospace sector in Puglia, while many of the SMEs in the region supply components in the value chains of these large companies. Within the sector, 71.8% of employment is concentrated in companies producing aircraft aerostructure systems, which heavily rely on new materials, 13.5% in the production of engines and 7.7% in space technologies, primarily in software systems. The competitive scenario is relatively simple for the two largest companies, which are part of the Finmeccanica Group and employ over half of regional workers in the aerospace sector: Alenia Aermacchi and AgustaWestland. These companies have recently made large investments, especially in the area of fibre placement and out-of- autoclave manufacturing techniques. Puglia has a good public research infrastructure. The region hosts two medium-sized universities and one large university, plus a large polytechnic university and a small private university, two sections of the national institute of nuclear physics (INFN), eight CNR institutes, the IIT Centre for Biomolecular Nanotechnologies and a research centre of the Italian National Agency for New Technologies, Energy and Sustainable Development (ENEA). In 2015 CNR established together with the University of Salento the Euromediterranean Center for Nanomaterial Modelling and Technology (ECMT), a joint laboratory grouping research teams from both institutions. The DTA S.c.a.r.l., located in Brindisi, where the largest share of aerospace companies is located, is the key intermediary institution in the aerospace sector and in the area on new materials. DTA develops and deploys the operational strategy of the regional aerospace system, in order to increase its competitiveness, stimulating scientific research and excellence in human capital. It groups together the most important stakeholders in this field at a regional level and its task is to bridge the gap between research centres and private companies. DTA involves 18 companies and research organisations, which total over 6,000 employees and generate over €1 billion turnover. The two most obvious good practice cases in the area of new materials and nanotechnologies in Puglia are: the development of a partnership between Boeing and Alenia Aermacchi for the development of the new Boeing 787 Dreamliner, which represents a valid example of how European collaborative research and firms’ commitment to innovation can lay the foundations for commercial success; and the creation of the CNR Pole for Nanotechnologies in Lecce, which, thanks to public
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investments, represents one of the largest infrastructures for the study of nanotechnologies in Europe, pooling together over 200 researchers carrying out large volumes of research projects and consultancy together with the private sector. • Challenge 1: New materials must meet nanotechnologies The regional aircraft industry employs the finest carbon fibre technology, but their ability in processing this material will soon meet the ‘innovation possibility frontier’. It is necessary to embrace a new technology regime, bridging together nanotechnologies and new materials to bring component integration to new levels and make possible the production of more sophisticated aircraft. It is important to continue to invest in research in the area of nanotechnologies, promoting the interaction between research centres and industry. The development of this type of technology could grant a significant competitive advantage to the regional aircraft industry. • Challenge 2: Production of the new ATR The ATR 4272 is a regional airliner manufactured by Alenia Aermacchi and the Airbus Group. The first versions of the plane were launched in the 1980s, but there have been negotiations for the production of a new, more modern and efficient version. Local companies and the DTA are busy developing via research projects the necessary competencies for the realisation of the new plane, which it is likely to have a large impact on the regional industry in Puglia, where the production of the new plane could take place. However, at the moment the development of the new program is still uncertain. The national Government and the regional administration must do everything possible to promote the development of the new plane as it represents a win-win strategy for all the stakeholders involved. • Challenge 3: Grant financial stability to the nanotech research system The CNR Pole for Nanotechnologies represents a world-class research centre. However, the types of activities carried out at the centre need economic and employment stability, which at the moment are missing. Some 90% of research staff are employed with short-term research contracts, and the centre needs to bid successfully for projects and contracts for at least €3-4 million per year just to pay current expenses. The management of the centre fears that, if and when they are not able to secure funding for such a high amount, they will need to start firing staff, losing the critical mass of competencies accumulated so far. 2. Regional Innovation Performance Trends, Governance and Instruments Puglia lags behind the national and European economy in terms of economic performance. GERD accounts for a marginal share of GDP and the contribution of BERD to GERD is generally limited. The amount of human resources in science and technology is low and internet access still has to catch up with the European average. Despite low industry concentration and negative economic performance in the years of the economic crisis, the innovation performance is growing. Although the share of businesses introducing innovations is below the national average, Puglia is performing much better than all the other Italian ‘convergence’ regions. The new regional innovation strategy focuses on some ‘bridging’ actions whose aim is to experiment in new approaches to support innovation. The Smart Specialisation Strategy for Puglia, SmartPuglia 2020, aims at strengthening the integration between ‘transectoral’ policies for research, innovation, competitiveness, internationalisation, training and work, improving their connection with ‘vertical’ policies for the environment, transport, welfare and health, etc. In the view of the regional administration, the KETs should help to focus on specific technologies the integration between five types of actors: regional government, industry, academia and research centres, researchers, and societal challenges to serve society.
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3. Future Actions and Opportunities With regard to the advanced materials and nanotechnology • Continue to foster interregional collaborative research The ERDF and the Framework Programmes, together with regional clustering schemes, are having a massive impact on the regional private and public research base, which is demonstrating that it is capable of leveraging enormous resources and creating sustainable development. With appropriate support from the regional administration, it is necessary to consolidate the investment made and aggregate both the value chains and the research system. • Technology upgrading of the regional aerospace value chain It is necessary to push small companies to invest in the technological upgrading of their production processes. There is reason to fear that if this technological shift is not made soon, larger companies will be forced to look outside the region for parts and components. Larger companies are becoming more selective in their choice of suppliers. Those firms that do not switch from traditional to advanced manufacturing will go bust. • The development of the Taranto Grottaglie airport test bed There have been talks on expansion of the Grottaglie airport, increasing its integration with the aerospace district in the nearby city of Brindisi. The DTA is pushing for the development of technologies applicable to remotely controlled unmanned aircraft, which would be possible with the valorisation of Grottaglie airport as a test bed for this type of aircraft. The airport is currently used only for cargo but a better valorisation of its potential could push the development of the whole aerospace industry. With regard to innovation policy • Leverage the potential of regional research institutions Human capital development is a key factor for innovation policy, but the rate of tertiary education in Puglia is much lower than in the rest of Europe. Although initiatives such as Future in Research contributed to the recruitment of many fixed- term contract researchers, much needs to be done to leverage the existing potential in the academic system and in research centres. While recent reforms to the national academic system brought relevant cuts to university funding and a consequent reorganisation of teaching at regional universities, the academic system has made some important steps in responding to the regional demand for human capital – increasing courses in the scientific fields that best serve the growing technology specialisation of the regional industrial sector. • Promote the recruitment of graduates Major investments are also needed in improving human resources in the private sector and the employment of graduates. Regional productivity is below the European average. The poor performance can be explained by the low added-value composition of its industrial structure and the poor diffusion of ICT with respect to the rest of the EU, but greater productivity levels cannot be achieved relying on human capital with low levels of numeracy and literacy. Major investments are needed in improving students’ learning at high schools and universities, and some measures need to be promoted to encourage firms to recruit graduates. • Support to R&D investments and entrepreneurship The support to university business start-ups and spin-offs is a key factor in stimulating entrepreneurship and retaining skilled graduates in the region. However, access to credit is still problematic. In the recent past, the creation and growth of innovative enterprises has been a priority for the regional administration both in terms of
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financial resources allocated and in terms of number of initiatives. The regional administration has supported directly and indirectly business R&D investments with grants and early-stage financing. However, there are no initiatives supporting new ventures and innovation vouchers. This area of innovation policy needs to be rapidly addressed in order to sustain business demand for innovation.
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1. Advanced Manufacturing: Advanced Materials and Nanotechnology
1.1 Overview of performance and trends The industrialisation rate of Puglia is below the national average. Employment in industrial activities accounts for 22% vs. a national average of 25.9%. Instead, Puglia is more specialised than the rest of the country in agricultural production, with employment in agriculture being 6.8% vs. a national average of 2.3%. Puglia has a manufacturing sector below the EU28 average, and is at present specialised in services and agriculture. Economic activities are concentrated in micro-enterprises. The manufacturing sector employed 128.9 thousand employees (13.5% vs. 18.8% in Italy). The greatest manufacturing specialisations are found in the manufacturing of food products, textiles, metal products and other manufacturing industries not elsewhere classified. The share of employment in these manufacturing industries and in the manufacturing of transport equipment is higher than in the rest of the country. Manufacturing activities in Italy are clustered in industrial districts, which, as noted in the international economic literature, can be highly competitive and generate steady economic growth. Despite its modest industrial development, Puglia is no exception to this model of economic development. Industrial districts, especially those in the food sector, have driven the record performance in regional exports in 2014. While micro and small firms were severely hit by the economic crisis, medium and large-sized firms were less affected. In the manufacturing sector employment in medium-sized firms is strongly concentrated in the manufacturing of transport equipment. This sector, together with the manufacturing of pharmaceutical and agro-food products, drives regional exports both in terms of size and growth rate (+5.09% over the period 2012- 13). Despite relevant recent progress in terms of innovation capacity and the increasing awareness about innovation issues in regional policy-making, Puglia lags behind other Italian regions in terms of innovation performance. While Italy is considered to be a ‘moderate innovator’ by the Regional Innovation Scoreboard, wide differences persist at the regional level within the country. While 7 out of 21 regions can be considered as strong innovators, Puglia is a moderate innovator, which despite backward economic performance has been able to outperform all other regions in southern Italy. Despite decent performance in innovation activity, R&D investments remain low. GERD in Italy is below the EU28 average, it accounted for just 1.26% of GDP in 2012 but it grew by 0.05% over 2011. The contribution of the private sector to R&D is generally modest (0.7%) and largely concentrated in northern Italy. In Puglia GERD accounted for just 0.78% of GDP in 2012 and BERD accounted for 0.19% of regional GDP. The contribution of BERD to GERD is more limited than in the rest of Italy: BERD accounts to 25% of GERD (55% in Italy). However, the regional BERD is growing at a faster rate than GERD. In Puglia there were 585 European Patent Office (EPO) patent filings over the period 2000-11. EPO filings grew by 2.5% over the period considered, a rate much higher than the Italian average (-3.4%). EPO filings are concentrated in two main technological fields: low-tech (33.8%) and transport (22.6%). However, employment in high-tech industries and knowledge-intensive services is lower than the Italian average (2.4% vs. 4.1%). Despite backward economic conditions and innovation performance, Puglia can count on a fast-growing aerospace industry, which relies on class-leading advance manufacturing activity. Large investments were also made in the area of nanotechnologies, an area in which the region is accumulating a large base of competencies. The total number of employees in aerospace companies is 5,198, growing from 3,760 in 2007. The distribution of firms by size shows the prevalence of small businesses and a fair presence of medium and large enterprises. Large firms, while there are only six of them, employ 74% of the total number of employees
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(approx. 3,800 workers). The aerospace sector in Puglia contributes to making Italy the fourth most-important player in the sector in Europe and seventh in the world. Although there are no significant companies operating in the field of nanotechnologies, the aerospace sector relies on advanced technologies in the field of new materials. While local aerospace companies operate in international-scale value chains, contributing to the growth of first- and second-tier suppliers of components, local research institutions such as the University of Salento in Lecce and Brindisi, the National Research Centre (CNR) and the Italian Institute of Technology (IIT), both based in Lecce, have generated many start ups in the field of both new materials and nanotechnologies. Therefore, while there is an established sector guiding the development of competencies in the area of new materials, the field of nanotechnologies in Puglia, although being very promising in terms of breakthrough innovations, it is based on academic entrepreneurship initiatives whose expertise range from life sciences (e.g. collagen, anti-bacteria cleaning agents) to aerospace applications (e.g. casting treatments). Puglia is in fact the sixth region in Italy (out of 21 regions) and the first in southern Italy in terms of spin off concentration (80 units, corresponding to 7.4% of the total number of Italian academic spin offs). Moreover, Spin offs in Puglia are among the youngest in the country (less than five years since foundation).
1.2 Business sector perspective France, the UK, Italy, the Netherlands, and Belgium constitute the upper half of a strong second tier of EU Member States with original capacities in advanced manufacturing (Technopolis Group and Fraunhofer ISI, 2015). Puglia is a ‘second tier’ region in terms of aerospace manufacturing and in the area of new materials. According to Technopolis Group and Fraunhofer ISI (2015), second tier regions constitute relevant players in leading nations or central players in less developed member states. Although their technological activities are more limited, they can still reach a certain critical mass, connecting to process developments in leading regions. This is certainly the case of the aerospace sector of Puglia, which relies on few large companies, which as in the case of AgustaWestland and Alenia-Aermacchi plants located in Foggia, Taranto and Brindisi, are part of the global group Finmeccanica, Italy’s leading manufacturer in the high technology sector, which ranks among the major global players in aerospace, defence and security. Finmeccanica has plants also in other regions in the country such as Lombardy and Lazio, hence the collocation of Puglia aerospace sector in the group of second tier regions is not likely to change if not as part of a global strategy of the Finmeccanica group. It follows that according to the classification developed by Technopolis Group and Fraunhofer ISI (2015), with respect to advanced manufacturing Puglia represents a Fragmented/Ephemeral regional system, where regional activities are focused on one type of player only, which in this case almost completely coincides with the presence of branches of a multinational company. However, the system is showing a good degree of connection with the regional economy, with regional research institutions and with local SMEs. Moreover, the regional system is proving to be capable to respond well to global technological challenges, extending the use of advanced manufacturing techniques such as the use of new materials, and gaining growing national and international consensus. According to some of the larger companies, sales have remained substantially the same during the years of the economic crisis and yet, employment has grown steadily. Although companies are largely concentrated geographically in the province of Brindisi, employment is relatively evenly distributed. Large companies in the aerospace sector in Puglia concentrate 74.1% of employment while many of the SMEs
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integrate their value chain supplying components. 71.8% of employment is concentrated in companies producing aircraft aerostructure systems, which heavily rely on new materials, 13.5% in the production of engines and 7.7% in the space sector, primarily in software systems. The competitive scenario is relatively simple for the two largest companies, which are part of the Finmeccanica Group and employ over half of regional workers in the aerospace sector: Alenia Aermacchi and AgustaWestland. Alenia Aermacchi produces some key aircrafts components in partnership with Boeing. The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, operating in a duopolistic market for commercial aircrafts together with Airbus Group, a European multinational aerospace and defence corporation. Both companies have registered some record-breaking batch of orders in the last few years. The Alenia Aermacchi partnership with the US aircraft industry stretches over more than half a century. Today the main program is the twinjet Boeing 787, whose sales have already passed the 1,100 aircraft mark in December 2015. Alenia Aermacchi has participated since the program inception with significant design and technology contributions in the area of composite materials. Alenia Aermacchi makes the horizontal stabiliser (at the Foggia site) and two large fuselage sections (at the Grottaglie site) all built entirely from advanced composite materials. Alenia Aermacchi has also been a participant in the Boeing 767 program from the earliest phases. For this wide-body, twinjet airliner the Alenia Aermacchi Foggia site builds the complete vertical tail, also entirely from metallic and composite materials. Boeing 767 sales have already reached 1,100 units. In addition Alenia Aermacchi contributes to the Boeing 777 as sole supplier of the radome and outboard flaps. Some of these all composite units are the largest aeronautical monolithic components fitted to any current airliner in the world. AgustaWestland is a worldwide leader in the rotary wing industry, with over 100 years of aviation experience and with 10 sites worldwide. The market is concentrated in a handful of companies, few of which have the global scale of activities of AgustaWestland. In Italy the company has six sites, one of which is located in Brindisi, Puglia. AgustaWestland offers integrated helicopter systems that encompass all principal weight categories in military and commercial mission configurations. The company has the in-house world class engineering expertise to undertake all stages of design, development, and manufacture of advanced rotorcraft, including integration of advanced avionic flight control and complex mission systems. The company is exploring, incubating, and implementing a wide range of advanced technologies many of which revolve around the use of new materials. The AgustaWestland site in Brindisi manufactures the models AW109, AW139, NH90 and AW101. It is a centre of excellence for the helicopter industry with autonomous competencies in design and manufacturing of structures in both composite and metallic new materials. 15% of staff is employed in R&D activities. Orders have not been affected by the financial crisis: AgustaWestland in Brindisi operates at full capacity manufacturing structures and components for approx. 250 helicopters a year, which are assembled in other sites.1 While AgustaWestland and Alenia Aermacchi can certainly be defined as pioneer/leader companies, other examples in this category include Salver, a company manufacturing advanced composite structures in ‘sandwich’ and solid laminate design for commercial and military aircrafts. The company supplies components to Alenia Aermacchi, Airbus Industries, Eurocopter, Galileo Avionica, Piaggio Aeroindustries and AgustaWestland. Examples of smart followers include Blackshape, a company producing small leisure and commercial aircrafts featuring full carbon fibre frames, which are claimed to be extremely strong and low weight. The uniqueness of Blackshape is given by the ability to manage the entire process of design and
1 Strict regulations influence the opportunity of AgustaWestland site in Brindisi to assembly parts (size of parts for road circulation; inspection; integration of the value-chain, etc.).
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manufacture in the field of aerospace industry with particular expertise in composite materials, stress analysis, qualification and certification. There are at least two types of start-ups in the field of new materials and nanotechnologies in Puglia. The first type of company includes business spinouts; the second type includes spinoffs from the University of Salento and other Research Centres. There have been several cases of spinouts from existing companies. Some employees of local companies and researchers at regional research centres have started their own venture, becoming, in several instances, suppliers of specific parts for their parent organisation. Therefore, start-ups develop new technologies and often join the value chain of larger organisations. In other cases, start-ups were set up by former students and researchers at the University of Salento, the CNR and the IIT. In some cases, there have been business initiatives that have used competencies developed in the aerospace sector for other purposes as in the case of CETMA Composites, which develops freediving and spearfishing equipment using new materials developed at CETMA, a research consortium of public research institutions and private companies carrying out applied research. Innovars, the network organisation for spinoffs from the university of Salento counts 25 associate spinoffs (from the University of Salento, CNR and IIT).
1.3 Scientific research potential Puglia has a good public research infrastructure. The region hosts two medium-sized universities (Foggia and Salento) and one large university (Bari) specialised in both social and hard sciences, plus a large polytechnic university and a small private university for the social sciences in Bari, two sections of the national institute of nuclear physics (INFN), eight institutes of the CNR,2 the IIT Centre for Biomolecular Nanotechnologies and a research centre of the Italian National Agency for New Technologies, Energy and Sustainable Development (ENEA). In 2015 CNR established together with the University of Salento the Euromediterranean Center for Nanomaterial Modelling and Technology (ECMT), a joint laboratory grouping research teams from both institutions. It is important to note that the three largest institutions, or some of their branches, for the study of advanced materials and nanotechnologies are clustered together in Lecce. • The University of Salento excels in the fields of biotechnologies, new materials for aerospace applications and nanosciences. The University opened a branch in the nearby city of Brindisi, in the premises of the “Citta della Ricerca”, where the Aerospace Technology Cluster (DTA) is located and where the majority of aerospace companies are clustered; • The Center for Biomolecular Nanotechnologies of IIT is located at the premises of the University of Salento. It is a large-scale facility for bio-molecular and organic materials and nanoscale biomolecular interactions; • Research at the ECMT focuses on polymer nano-fibres and nanotechnologies based on soft materials, nano-biotechnologies for environment and health, and theoretical modelling of nanosystems using density functional theory. ECMT
2 The eight CNR institutes are the following: IBAM - Istituto per i beni archeologici e monumentali IFC - Istituto di fisiologia clinica NANOTEC - Istituto di Nanotecnologia IMM - Istituto per la microelettronica e microsistemi ISAC - Istituto di scienze dell'atmosfera e del clima ISPA - Istituto di scienze delle produzioni alimentari INO - Istituto nazionale di ottica ECMT - Istituto Nanoscienze
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currently consists of about 25 people (including CNR scientists, University associates, post-docs and Ph.D. students) from a wide range of disciplines (physics, engineering, chemistry and biology). ECMT regional and national networks focus on programmes on new water treatment technologies (Wafitech), nanocomposites (MITT), new diagnostic and therapeutic tools (Nabidit) and nanotechnologies applied to living organisms (ONEV, NOP project). Finally, ENEA in Brindisi has become a centre of excellence in the fields of materials and related technologies for applications in many areas such as aerospace, renewable energy and the environment (monitoring and diagnostics). CNR carries out research on nanotechnologies in the NANOTEC, IMM and NANO. The institutes apply a multidisciplinary approach to the development of new technologies for the energy sector, photonics, the environment, the aerospace sector, cultural heritage and life sciences. Research centres have been very dynamic in terms of spinoff promotion. There are collaboration agreements between research centres and businesses, which are focused on several fields of new materials. The projects are coordinated by the DTA, who oversees research activities of research centres, academic institutions and private companies. Project activities involve only partners of DTA and are funded by the Ministry of Education and Research (MIUR), which channels EC resources. The main projects are the following: • ASIA – Structural Architectures and Innovative processes of the wing • MASTCO – Composite Structures and Materials for Light Vehicles • MAIPCO – Advanced Inspection and Control Methodologies for Productive Processes of Complex Composite Structures • SPIA – Innovative Aeronautical Bearing Structures • DITECO – Defects, Damage and Repair Techniques in the Production Processes of Large Composite Structures • TEMA – Professional Training of Researchers Specialized in the Study, Characterization and Design of Innovative Processing by Machining and Coatings on Inserts in Aeronautics.
1.4 Role of intermediary institutions The DTA S.c.a.r.l., located in Brindisi, where the largest share of aerospace companies is located, is the key intermediary institution in the aerospace sector, and in the area, on new materials. It is a non-profit making consortium joined by the main enterprises, universities and public and private research organisations operating in the aerospace field. DTA is one of the ‘technology districts’ recognised by MIUR. Regional authorities identify ideal candidates that undergo a selection process by central authorities. The regional districts and public-private partnerships selected for Puglia by MIUR are: • MEDIS – mechatronics • D.A.Re. – food industry • DHITECH –Nanotechnologies for Health and Environment, Tissue Engineering for the Regenerative Medicine and ICT for Products and Services • DTA – aerospace industry • Di.T.N.E. – Energy • H-BIO – Life sciences and biotechnologies • INNOVAAL – Innovative Technologies and Services for Active & Assisted Living
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In the view of the MIUR, technological districts must represent technological poles specialised in specific industries/scientific sectors that promote firms’ research activity via technology transfer.3 Districts involve public stakeholders (universities and/or research bodies) provided with the necessary experience in the field of interest and a background of collaboration with industrial partners. The presence in the proposed district of private relevant stakeholders (i.e. industries with a long record of activity in the field) willing to establish a joint collaboration with public actors, and whose activity is mainly located in the same regional and local environment. DTA, as other technological districts in Italy are beneficiaries of ERDF funding via the National Operational Programme (NOP) Research and Competitiveness. The National Operational Programme (NOP) Research and Competitiveness 2007-20134 implements national innovation policy in the convergence regions such as Puglia, contributing to coordination between national and regional objectives in innovation policy. Out of the over €6 billion of funding, €915 million were allocated for the creation of technological districts and the development of existing ones. DTA develops and deploys the operative strategy of the regional aerospace system to increase its competitiveness stimulating scientific research and excellence in human capital. It groups together the most important stakeholders in this field at a regional level and its task is to bridge the gap between research centres and private companies. DTA involves 18 companies and research organisations which total over 6,000 employees and generate over €1 billion turnover (and €450 million in exports in 2014). The 18 members of DTA are distributed as follows: 7 large firms, 4 SMEs, 7 research organisations. DTA focuses on research and technology transfer activities, supporting the expansion of regional aerospace businesses, the attraction of new aerospace investments in Puglia, the start-up of new business initiatives, personnel training and the attraction of qualified personnel in the region. DTA’s thematic areas are enabling technologies in new materials (composites, metallic, ceramic), transport (including aeronautics), energy production (propulsion and energy management on board), and ICT for sensors information processing (health monitoring, engine monitoring, space sensors). The strategic development of the district is based on various research topics and focuses on different sectors of industry, such as the aerospace systems, fixed wing, rotary wing systems, motoring, systems board, and defence communications and systems. The large majority of research projects in which DTA is involved are sponsored by the NOP and they are specialised in the area of composite materials. Given that, in order to access funding, potential beneficiaries must be associated to a Technological District, the role of DTA is fundamental in creating the right partnerships, mediating business and academic needs and reducing the cognitive distance in technology transfer. Another relevant intermediary institution in the area of new materials and nanotechnology is the technological district DHITECH. DHITECH promotes technological innovation and entrepreneurship involving SMEs, large companies and research institutions into applied research projects and high education programmes. DHITECH stakeholders specialise in the fields of nanotechnologies for health and the environment, tissue engineering for the regenerative medicine and ICT for products and services. In the period 2011-2015, DHITECH managed five research projects and five high education courses funded by the NOP Research and Competitiveness 2007- 2013 with €78 million. Each research project dedicated a specific work package to the design and implementation of a Living Lab, addressing business development,
3 The initiative was promoted in 2002-2003 (and in 2003-2005 their mission has changed) but there have been substantial delays in the implementation of districts, changes in their mission. 4 http://www.ponrec.it/
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technology transfer, intellectual property management, etc. One of the Living Labs (the Nanotechnology Living Lab, NTLL) also directly managed a high education course aimed at introducing undergraduate and postgraduate students with a learning-by- doing approach to technological entrepreneurship.
1.5 Developing skills for the future Companies operating in the field of fixed and rotating wing aerostructures require human capital with knowledge on composite technologies. Despite high regional unemployment, personnel with such skills are very hard to recruit. Confirming the relevance of new materials for aerospace companies in Puglia, among the figures most widely reported by firms are the laminator (operator specialising in the treatment of different types of fabrics impregnated with resins) and the fibre placement specialist (operator of machines for the automated production processes of non-metallic fibres pre-impregnated with special resins). This demand is due to the gradual reorientation of companies towards new automated technologies in the processing of new materials. Regional stakeholders proved to be aware of the lack of competencies in the aerospace sector in the region, promoting the creation of a technical school in Brindisi specialised in the aerospace sector. The Istituto Tecnico Superiore per l’Aerospazio (I.T.S. Aerospazio Puglia)5 aims at training, at the post-secondary-school level, human capital in specific aerospace technical fields. I.T.S. is a foundation participated by local administrations, DTA, The University of Salento, local colleges and the region’s two largest companies (AgustaWestland and Alenia Aermacchi). I.T.S. is located at the premises of the “Citta della Ricerca” in Brindisi, which also hosts the DTA, research centres such as Enea and a branch of the University of Salento. The University of Salento, located in Lecce, launched in 2008 a three-year degree in mechanical engineering in response to the local demand for graduates. The course is taught at a branch of the University located in the premises of the “Citta della Ricerca”. Moreover, the University is about to launch a post-graduate course in aerospace engineering with a special focus on new materials. Despite the gradual specialisation of the educational system, companies insist on looking beyond the regional boundaries to attract the best talents to fit their needs. Moreover, large companies have been active promoters of training programmes collaborating on developing advanced skills in researchers and staff in several DTA- managed projects.6
1.6 Major investment projects As indicated by companies and by the DTA, local aerospace companies have recently done investments in the area of fibre placement and out-of-autoclave manufacturing techniques. Out of autoclave composite manufacturing is an alternative to the traditional high- pressure autoclave, a process commonly used by the aerospace manufacturers for manufacturing composite material. ‘Out of autoclave’ guarantees the same quality as an autoclave but through a different process. Out-of-autoclave curing achieves the desired fibre content and elimination of voids by placing the layup within a closed mould and applying vacuum, pressure, and heat by means other than an autoclave. A
5 http://www.itsaerospaziopuglia.it/ 6 E.g.: MASTCO – Composite Structures and Materials for Light Vehicles; MAIPCO – Advanced Inspection and Control Methodologies for Productive Processes of Complex Composite Structures; SPIA – Innovative Aeronautical Bearing Structures.
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resin transfer moulding (RTM) press is the typical method of applying heat and pressure to the closed mould. The RTM process allows the production of composite parts with high strength, complex geometries, tight dimensional tolerances, and part quality typically required of aerospace applications. Out-of-autoclave technology allows a reduction in weight of 20-30% and a cost abatement of 50%. Thanks to this technique it is possible to replace expensive materials such as aerospace-quality-grade aluminium with even more expensive materials such as carbon fibre, which is used in such an efficient way as to achieve better performance and cost reduction at the same time, drastically reducing waste. This technique has been employed for years by Boeing and Airbus in the aircraft industry and by some high-quality car manufacturers such as Lamborghini, but has hardly been used in helicopter manufacturing because of the small size of components and complexity of their shape. Besides allowing the manufacturing of cheaper components, this technology spares companies from the investment of expensive and bulky autoclaves. Switching from machined metal billets to carbon fibre allows substantial increases in part integration. For example, in the case of aircraft fuselages, it is possible to integrate components such as antennas and luminous LED lights within the fibre layers, granting better protection of components from harsh weather conditions. Fibre placement is a technique used for the manufacture of large-scale, complex- shaped structures composed of composite materials. Fibre placement is an automated composites manufacturing process of heating and compacting resin pre-impregnated non-metallic fibres on typically complex tooling mandrels. The fibre usually comes in the form of what are referred to as ‘tows’. A tow is typically a bundle of carbon fibres impregnated with epoxy resin. The tows are fed to a heater and compaction roller on the fibre placement machines head and through a robot, are placed in courses across a tool surface. In a nutshell, this technology allows the automation of production stages that rely on highly qualified craftsmanship such as laying carbon fibre sheets, drastically reducing error margins and porosity of products. Fibre Placement machines are increasingly used in the manufacturing of airframes but are rarely used by smaller companies in the aircraft value chain or in the manufacturing of more complex products such as helicopters. As in the case of out of autoclave processes, this technology allows to cut costs (by a third) and weight, increasing quality of products. While fibre placement equipment has been used for some time in Alenia Aermacchi, where this process is used in the manufacturing of parts for the Boeing 787, the adaptation of this technique to helicopter manufacturing has been harder. AgustaWestland recently invested in the purchase of a vertical automated fibre placement (AFP) machine for composite part manufacturing from the American company ‘Ingersoll Machine Tools’. AgustaWestland collaborated with Ingersoll in the adaptation of the AFP to its needs and has spent the last two years testing the equipment, which seems very promising. AgustaWestland is carrying out the development of the AW609 TiltRotor programme a helicopter for civil air transport that can carry up to 9 passengers, combining the benefits of a helicopter and a fixed- wing aircraft into one aircraft, taking off and landing vertically. The manufacturing of the AW609 requires the superior efficiency granted by fibre placement technology, which will help more precision in the realisation of large parts while reducing waste. The adoption of fibre placement equipment required an €12 million investment (€5.4 million for the fibre placement equipment alone and €0.85 million for R&D) and the extension of the production site. AgustaWestland created an industrial plant of 20x20x20 m3 to host the Ingersoll equipment, recruiting eight new employees. The investment was supported by EC funding, via the NOP. Public funding amounted to 30% of the total investment. Besides the foreseeable positive impact on employment, there are reasons to believe that the upgrading of manufacturing techniques in one of the largest companies in the aerospace industry in Puglia will have a positive impact on the whole value chain.
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1.7 International cooperation Cooperation in international projects is not common, with the exception of the involvement of some local stakeholders in the project CLEAN SKY and in some Seventh Framework Programme (FP7) projects. CLEAN SKY is a public/private partnership between the European Commission and the European aeronautics industry,7 which has been in operation for five years. Clean Sky is supposed to be the most ambitious aeronautical research programme ever launched in Europe. Its mission is to develop breakthrough technologies to increase the environmental performances of airplanes and air transport. It is managed by the Clean Sky Joint Undertaking (CSJU), who will deliver demonstrators in all segments of civil air transport, grouped into six technological areas called ‘Integrated Technology Demonstrators’ (ITD). Each ITD is led by two industry leaders that are committed for the full duration of the CSJU. Two of these industry leaders are AgustaWestland and Alenia Aermacchi. Clean Sky will demonstrate and validate the technology breakthroughs that are necessary to make major steps towards the environmental goals sets by the Advisory Council for Aeronautics Research in Europe (ACARE) to be reached in 2020: • 50% reduction of CO2 emissions through drastic reduction of fuel consumption • 80% reduction of NOx (nitrogen oxide) emissions • 50% reduction of external noise • A green product life cycle: design, manufacturing, maintenance and disposal / recycling. New materials are especially relevant for the reduction of emissions and the green product lifecycle. In fact, intensive use of carbon fibre parts will allow the manufacturing of lighter and, therefore, more fuel-efficient aircrafts. The activities of Clean Sky will continue with the future implementation of the project follow up Clean Sky 2. The analysis of FP7 participation data allows extrapolating all participations of regional companies and institutions in Framework projects. Two projects were found in the area of aerospace and transport with some references to new materials: ECO- FAIRS and LIGHT-TANK. These two projects involve two partners from Puglia: CETMA, a Research and Technology Organisation (RTO) constituted as a consortium of public research bodies and private enterprises, which carries out applied research activities on advanced materials and related production technologies; and TELCOM, a private company leader in the processing of the thermoplastic material. Although a search by keywords in the Cordis database8 shows that local companies have been involved in few other FP7 projects, the reference region is not Puglia, bringing to the conclusion that their participation involved other company branches in Italy, located in other regions.
7 http://www.cleansky.eu/ 8 http://cordis.europa.eu/home_en.html
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Table 1 Participation in FP7 PROJECT NAME ACRONY CORDIS PARTNER COST ROLE M AREA (€) ECO-design and ECO- Manufacturing CETMA 194,126 Coordinator manufacturing of FAIRS of thermoplastic thermoplastic structural structural fairings for helicopters demonstrators Feasibility study and LIGHT- Feasibility study CETMA 96,000 Participant prototypes manufacturing of TANK and prototypes oil tank in thermoplastic for manufacturing Helicopter Engine of oil tank in thermoplastic for Helicopter Engine Feasibility study and LIGHT- Feasibility study TELCOM 118,080 Participant prototypes manufacturing of TANK and prototypes SPA oil tank in thermoplastic for manufacturing Helicopter Engine of oil tank in thermoplastic for Helicopter Engine
Over the period 2010-13, ARTI (2014) identified 13 international projects in the area of nanotechnologies, 11 of which involve EU partners. The projects focus on three areas: life sciences, Electronics and optoelectronics, and the green and blue economy. ARTI (2014) also identified 28 projects in the area of advanced materials, 20 of which involve EU partners. The principal extra-EU partners are located in the USA and Israel. The projects focus on the following areas: the green and blue economy, manufacturing, transport, aeronautics, and cultural heritage. Finally, the European Research Council (ERC) attributed three grants to ECMT researchers in the fields of new materials and nanotechnology. The grants were allocated via co-beneficiary schemes involving CNR and the University of Salento.
1.8 Policy support and delivery mechanisms ARTI (2014) carried out the identification of the relevant KETs in Puglia. 149 institutions and organisations in Puglia participated in the identification of the KETs, 56% from the private sector and 44% from the research system. This exercise evidenced that 52% of subjects were interested in advanced materials (KET 5) and 46% in nanotechnologies (KET 2). Puglia’s Smart Specialisation Strategy and, in part, the Puglia Digital Agenda 2020, are inspired by the KETs. The Puglia Smart Specialisation Strategy and Puglia Digital Agenda 2020 define three priority areas of innovation: • Sustainable Manufacturing (smart factory, aerospace, mechatronics) • Health and the environment (green and blue economy, food processing, sustainable construction, cultural heritage and tourism) • Digital, creative and inclusive communities (cultural and creative industry, services, social innovation, design, non-R&D innovation).
The first priority area addresses directly advanced manufacturing and is supported directly by at least three thematic objectives (TO): • TO1 – Support research, technology development and innovation • TO3 – Support SMEs competitiveness
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• TO10 – Invest in education, training and vocational training for skills and permanent learning.
There are few measures that in the recent past have started channelling regional policy towards high-tech priorities such as investing in new materials and nanotechnologies. First of all, support to area of new materials and nanotechnologies is delivered via the identification of clusters that benefit from policy initiatives developed by the regional administration after consultations with relevant stakeholders (representatives from the private sector, research system, etc.) and with regional relevant policy actors (InnovaPuglia, PugliaSviluppo and ARTI). In 2007 the regional administration of Puglia implemented a cluster approach at a very large scale in Puglia. The Productive Districts initiative aimed at clustering regional firms in different value chains producing either low-tech or high-tech products. Productive districts are enterprise networks operating along the same value- chain or producing the same product. Districts involve several regional research institutions such as universities, polytechnic universities and research centres, together with industry associations and unions. Cooperation between firms and research institutions within the district is geared towards the development of innovations. The regional administration has so far identified 18 productive districts in Puglia (n. of firms in brackets) including one on aerospace: Aerospace (42); Wood and furniture (84); Sustainable building industry (181); Boating industry (108); Fashion industry (230); Logistics (111); Renewable energy and energy efficiency ‘La Nuova Energia’ (263); Stone industry (201); Software industry (94); Communication and editorial industry (127); Mechanical industry (101); Quality agro-food ‘Jonico- Salentino’ (187); Quality agro-food ‘Terre Federiciane’ (683); Floral industry (227); Fishing industry (107); Creative industries (207); Tourism industry (229). The districts involve at present over 4,000 institutions and organisations. The originality of the initiative with respect to previous initiatives in the area of clusters in Italy is first of all the geographical dimension of productive districts: in fact, their definition and institution is not based on restricted geographical areas but on value chains. Therefore, partnerships involve companies that can be located anywhere in the region but that have to be involved in the same value-chain. The initiative has had very high strategic value in addressing the strategic objectives of regional innovation policy that since the promulgation of the ROP-ERDF 2007-13 and the NOP focuses on providing support to key strategic industries and technologies. The initiative aims to ‘cluster’ business needs and create a favourable environment for innovation, based on business cooperation. Current and future regional policy initiatives are and will be targeted to the districts that emerged from the implementation of this initiative. In other words, future strategic programmes will concentrate business support to those firms that are clustered in the districts. The districts are promoting the growth of regional industrial poles and have already has some success in promoting the activities of local companies. For example, the aerospace district participated at Aeromart 2010 exhibition in Toulouse and promoted a partnership with Chinese aerospace companies. The newspaper Corriere della Sera estimated the economic performance of several high tech industrial poles in Italy. Since its creation the Puglia Aerospace district was able to increase companies’ turnover and EBITDA. The decision to promote this kind of measure came from the assessment of the regional economic structure, carried out by ARTI, and is also at the basis of the definition of the regional strategy for innovation and the ROP-ERDF. The productive district initiative is also coherent with national innovation policy priorities, supporting technological districts. In fact, the two initiatives share the same clustering approach based on the relevance of value chains more than geographical dimensions. This type of approach seem to be working particularly well in the case of technological districts, that according to early evidence, really seem to stimulate regional innovation
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activity, and there is reason to believe that it should work equally well in the case of productive districts, if future programmes continue to support the initiative. Another important step in the support of new materials and nanotechnologies at the systemic level has been the creation of Technological Districts such as the DTA and the DHITECH. The creation of technological districts supports a 10-year old national strategy to foster the competitiveness of existing productive areas which are export intensive revitalising them through R&D activities on key technologies, enabling product and process innovations. The creation of technological districts paved the way for the implementation of smart specialisation in Italian regions. Regions submitted their proposals for identify ideal candidates and these proposals underwent a selection process by MIUR. Six regional districts have so far been selected for Puglia: D.a.Re. for the food industry; DHITECH for Nanotechnologies for Health and Environment, Tissue Engineering for the Regenerative Medicine and ICT for Products and Services; DTA for the aerospace industry; Di.T.N.E. for Energy; H-BIO for Life sciences and biotechnologies; INNOVAAL for Innovative Technologies and Products for Active & Assisted Living. Districts bridge the gaps among education institutes, research organisations, private companies and governmental agencies. In some cases technological districts have helped in identifying technologies and their application in regional economic sectors in the region. In other words, the regional administration identified key value chains, and technological districts support technological development of some of them. This is the case of D.A.Re., which promotes the technological upgrading of the regional agro-food industry, DHITECH that promotes the nucleation of startups and spinoffs on nanotechnologies and on nano-biotechnologies and, most of all, for DTA, which is accompanying the transition towards new materials in the whole aerospace value chain. DTA is at present raising the awareness of several local companies, which are subcontractors of larger companies, about the necessity to upgrade manufacturing processes in order to be competitive world-class suppliers. This objective was achieved involving companies in NOP-funded research projects and via companies direct funding. According to local stakeholders another relevant measure for new materials and nanotechnologies has been the measure “Support to newly established innovative small firms”. This measure provided direct funding to business R&D and innovation. As it is difficult for firms in Puglia to have access to credit. Policy support for new- technology-based firms is especially relevant in the case of Italy since several studies have stressed the inadequacy of many policies to encourage technology transfer (ProInno-Europe) and initiatives to support entrepreneurship/start-ups/spin-offs are rare compared to other industrialised countries (EC 2007). This measure aims to stimulate the birth of micro and small enterprises that intend to exploit research results, financing up to 75% of investment costs (material and immaterial investments, together with certain management costs) for the first three years of their life. Potential applicants are firms established within six months from the application. This measure supports: Building and equipment costs; Investment in technology transfer (licenses and patenting costs); Employment costs; Administration costs; Rental costs for equipment and facilities and Billing costs. It is addressed at newly established firms in the following sectors: Advanced materials; Advanced logistics; Aerospace, aeronautics and helicopter manufacturing; Advanced manufacturing systems; ICT; Environment and energy saving; Life sciences and Agro-food. It must be noted that investments in new materials in Puglia are concentrated in the aerospace sector and this industry has been benefiting for quite some time from national incentive schemes that integrate regional initiatives. In 1985 a law was promoted to regulate policy initiatives in support of the aircraft industry in Italy (Law n. 808, 24 December 1985). The law provides direct funding for R&D, production and commercialisation of aircraft products. After the first few years, the law has been fundamentally targeted at the promotion of R&D activities, whilst support to production activities has been abandoned. In general Italian aerospace companies participated in few research programmes of exclusive national interest. While they aim at developing competencies in specific systems and areas such as new materials, it is
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believed that the Law 808/85 provided a key contribution to the acquisition of technological capabilities in several aerospace research areas. In fact, according to the MSE (Corte dei Conti, 2009), R&D policy support played a key role in sustaining competitiveness and R&D investments in a period of intensive competition. The Law n.808/1985 has been very effective in the past in reducing direct R&D costs for aircraft businesses, whilst in other countries the industry underwent a process of rationalisation of production activities and cost reduction to respond to international competition.
1.9 Good practice case The most evident good practice cases in the area of new materials and nanotechnologies in Puglia are: • the development of a partnership between Boeing and Alenia Aermacchi for the development of the new Boeing 787 Dreamliner; • the creation of the CNR Pole for Nanotechnologies.
1.9.1 The Boeing-Alenia Aermacchi partnership An evaluation report by Oxford Economics confirms that Boeing activities are having a relevant impact in Italy.9 Boeing has close relations with the Italian aerospace and defence sectors, with the armed forces and with the airlines. Italy is the second European largest supplier of Boeing (excluding aircraft engines), and the US company has about 300 employees in Italy. The majority of Boeing employees in Italy works in support of the 787 programme at Alenia in Grottaglie, Foggia and Pomigliano d'Arco (Campania), as well as in the headquarters in Rome. Boeing has generated a considerable number of jobs throughout the supply chain in first- and second-tier suppliers. In 2014 the company invested $1.851 billion for services and supply of equipment in Italy. It is estimated that Boeing activities in Italy support more than 12,300 jobs. Alenia Aermacchi has production sites in Lombardy and Piedmont and in Southern Italy, in the regions of Campania and Puglia. Alenia Aermacchi has a leading role in the Italian Aerospace Research Centre CIRA, in the technological district IMAST S.c.a.r.l. (engineering materials and polymer structures) and in Puglia it participates in the technological district DTA. The presence of Alenia Aermacchi in Puglia has deep roots as this region is in a strategic location in the Mediterranean that in the last century has been exploited also by the Air Force for military bases and airports. At the end of World War I some squadrons were based in Foggia, and at the seaplane base in Brindisi and immediately after the war the military airports of Brindisi, Grottaglie, Galatina, Bari and Foggia were built. In the early 1980s, Alenia Aermacchi built in Foggia a production site that over the years has become a centre of excellence for the production of structural parts made of composite materials. The site employs about 1,000 employees and is engaged in research, design and manufacture of composite parts for civil and defence aircraft.10 More recently, thanks to a program agreement (APQ) with the Puglia administration, Alenia built a modern production site in Monteiasi-Grottaglie (Taranto), dedicated to the construction of large composite
9 Source: http://www.boeingitaly.it/boeing-italia/il-significativo-impatto-economico-delle-attivita.page? 10 Boeing 787 - horizontal stabilizer carbon fibre fuselage and miscellaneous; Boeing 767 - rudder, ailerons and spoilers, elevators; Boeing 777 - outer flap; ATR 42/72 - composite parts of the rudder, elevators and stabilizers, manufacturing and assembly drift; Eurofighter Typhoon - wing panels, fuselage panels, fairings; Alenia C-27J - radome, tail cone; Airbus A380 - beams; Lockheed Martin F-35 - stratification and Laminating of composite parts.
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aerostructures such as fuselage sections of the central and rear centre of the new twinjet Boeing 787. The plant in Monteiasi-Grottaglie is dedicated entirely to the Boeing 787 program, producing fuselage sections. The site employs approximately 1,000 employees. The largely automated innovative production process is based on exclusive patents and equipment. This site manufactured for the first time the structure of the fuselage of a commercial aircraft in carbon fibre using the breakthrough ‘one piece barrel’ technology.11 1.9.1.1 The Boeing 787 The Boeing 787 Dreamliner, launched in April 2004, is a super-efficient and revolutionary aircraft, built in partnership with a team of leading international companies in the aerospace industry, and is assembled by Boeing in the US. Made of 50% composite materials, the Dreamliner boasts the latest technology and a revolutionary design. The technological developments applied have led to a significant reduction of fuel consumption, which has projected 787 to be more practical and more efficient than any other plane civil aircraft. In its three versions (787-8, -9, -10), the Dreamliner can carry 210 to 330 passengers and fly up to 7,000 nautical miles (12,964 km). The 787 is currently the most advanced aircraft program in the field of civil aviation. In the early 2000s Boeing saw its market share shrinking because of tough competition from Airbus. The company needed a new aircraft that represented a technology breakthrough and in 2003 it planned to start the 787 programme12 if the company received pre-orders for at least 100 units. By 2005, Boeing was already receiving 800 orders a year and 1,700 in 2015. The 787 is one of the greatest successes in the history of commercial aviation with 854 aircraft ordered before the beginning of production the aircraft operations. The Boeing 787, compared to his peers, has lower fuel consumption by up to 20%, lowering pollution and noise levels. Compared to previous generations of aircrafts, the main innovation of the B787 is the extensive use of composite materials – carbon fibre – instead of aluminium. The transition to the technology of composite materials has allowed Boeing to significantly reduce weight, improve performance and reduce flight costs for its customers. There is little doubt that the unprecedented commercial success has to do with the plane’s composite- intensive design.13 At 50% composites, by weight, the 787 is in a class by itself. According to Boeing, the advantages of significantly increased use of composites go beyond the more obvious weight/economy benefits. Greater cabin pressure, larger windows, less corrosion and extended maintenance schedules were key drivers in the 787 design. 1.9.1.2 The role of Alenia Aermacchi in the production of the 787 The recent investments of Alenia Aermacchi in Puglia represent a good practice case in the area on the development of new materials. At the time of the launch of the 787 programme Boeing had was facing two challenges: the company had to be capable of meeting large orders from airlines which were interested in the characteristics of the 787; It was necessary to deploy completely new technologies in order to create a revolutionary product for the industry. Both challenges implied a completely new approach to the supply chain. A traditional top- down approach was not suitable anymore because it carried too much risk, with Boeing carrying full responsibility for any delay in meeting the orders or production
11 Alenia used this technology to produce the centre-rear section (in the two versions for the 787-8 and the 787-9, ranging from 10 to over 13 metres in length) and the central section (in two configurations (787-8 and 787-9) of the 787. In 2012 the site launched the production of the new longer version of the aircraft, the B787-9. 12 Initially dubbed Yellowstone, 7X7, then 7E7. 13 Source: http://www.compositesworld.com/articles/boeing-787-update
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problem, and because the 787 programme required competencies that were completely new to the company. Boeing needed to start to develop partnerships with suppliers and started a selection process. At the time of the beginning of the programme Alenia Aermacchi was already a supplier for Boeing. The company was developing unique competencies on large primary aircraft structures, which were developed by means of internal R&D and with the participation in several national and international research projects.14 Thanks to these competencies, and to the experience matured in the manufacturing of aerostructures (e.g. in the manufacturing of critical parts such as empennages), the company demonstrated to be able to master better than anyone else the technological requirements of the 787 programme. Alenia Aermacchi was then chosen to become one of the four key suppliers of the most important components of the 787, together with the Japanese consortium KHI the US companies Vought (now Boeing) and Spirit (ex Boeing), and defined the manufacturing process of the plane, conceding the use of important patents to Boeing for its US site. In other words, thanks to the company commitment to develop the necessary technologies to become a pioneer in the extensive use of carbon fibre in the production of large aircrafts, and thanks to the support to R&D it received in the area of carbon fibre from public actors, Alenia has been able to develop technologies in the area of new materials that were so advanced to determine the technological choices of Boeing in the production of the most advanced civil aircraft in the world. Alenia Aermacchi currently produces 14% of the Boeing 787 Dreamliner.15 Specifically, the Grottaglie site is dedicated to the production of sections 44 and 46 of the fuselage, while the Foggia site manufactures the horizontal stabilizer. The fuselage parts produced at the Grottaglie site are the largest component in carbon fibre ever produced in the aircraft industry (if laid down the area covered would be the approx. size of two football pitches). This order would have not been granted if Alenia Aermacchi did not have the necessary competencies in the manufacturing of carbon-fibre parts. The largest supplier of 787 composite materials is Toray Industries (Tokyo, Japan). The company is providing its trademarked Torayca 3900-series highly toughened carbon fibre-reinforced epoxy pre-impregnated for the 787’s primary structure in unidirectional tape (various widths), narrow slit tape (for fibre placement), and woven fabric forms. Toray pre-impregnated is used to form principal structures on the empennage; Boeing Fabrication (Seattle) makes the vertical tail while Alenia uses it to fashion the horizontal stabiliser and the fuselage. The 787 Partners selected equipment from the various global suppliers of automatic tape layers, fibre placement machines,16 and automated stringer laminators. Challenges abound not only because of the increased use of composites and the global scope of the supplier base but because the 787 incorporates several new material forms and some key components made with out-of-autoclave moulding processes. In the view of Alenia Aermacchi, although carbon fibre is more expensive than other advanced materials used so far for primary aerostructures, it allows the integration of more pieces, reducing the number of parts (e.g. from eight panels to one piece), reinforcing the strength of the parts, reducing the costs of servicing and the wearing effects of extreme weather conditions (rust, hailstones, condensation, etc.). Alenia Aermacchi has developed and manufactured not only all the structural components of the aircraft but also the infrastructure and processes necessary for their production, bringing its know-how in the field composite materials to the highest
14 Apricos (BRITE-EURAM III), Tango (FP5), L. 808/85. 15 Source: http://www.ilsole24ore.com/art/notizie/2012-05-05/litalia-saluta-boeing-gigante- 115902.shtml?uuid=AbJSp4XF 16 Like AgustaWestland, Alenia Aermacchi is using the latest generation of fibre-placement equipment from Ingersoll Machine Tools Inc. (Rockford, Ill.)
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standards of technology. For the Dreamliner program, Alenia Aermacchi has invested in Apulia about €1 billion. The overall commitment of the company will amount to €1.3 billion once investments will be completed. Already concluded two contracts with the regional administration for the expansion of production capacity.17 Some investments were funded via the framework contract agreements between the Regional Government and the National Government. With the creation of regional technology districts, and in particular with the DTA, there has been a tangible increase in the regional capacity to attract external investments. The measures of the NOP ‘Framework Contract Agreements (APQ)’ and ‘Integrated Support Packages (PIA)’ have contributed to expand the production capacity expanding the sites and promote their technological upgrading. These initiatives, that according to the DTA will allow the creation of more than 800 new jobs, are helping to strengthen the capacity and expertise on composite materials of the local system and accelerate the technological advancement of SMEs. The overall objective of the APQ is to support investment initiatives in economically depressed areas for projects of medium and large size; these projects can be developed by large companies or as joint initiatives developed by consortia of small and medium- sized enterprises. Investment projects must target the expansion of production capacity or the improvement existing sites, with considerable impact on job creation. Projects can also support R&D activity targeting the same objectives of product development. All large and medium enterprises participating in the DTA who have applied for APQ or PIA, involved in the proposed industrial projects small regional companies that contribute to the investments planned. In the specific case of Alenia Aermacchi, there were two projects, one for the Foggia site and another one for the Grottaglie site. In the first case, the industrial investment allowed the upgrading of production facilities (plant, machinery, equipment, etc.) and the widening and improvement the production capacity on the production lines used for the realisation of the horizontal stabiliser of the Boeing 787. The investment also funded the design and construction of equipment for the manufacturing of mechanical parts and composite parts. The APQ also funded the research project PROALA TECH targeting the development of innovative manufacturing processes for the realisation of empennage in composite materials. In the second case, the industrial investment allowed the increase in production capacity and the improvement and innovation of production processes and production cycles of aircraft structural components such as the fuselage in composite material for the Boeing 787. It also allowed the development of technologies used in processing titanium alloys and composites. Moreover, the research project LAMI-TECH allowed the development of prototype rolling system for pre-impregnated materials. Alenia Aermacchi signed a long-term contract with Boeing for the supply of components produced in the two sites in Puglia and also for their future revisions (e.g. for the new stabiliser Dash 10 that might replace the Dash 9, currently produced in Foggia).18 The CEO of Alenia Aermacchi foresees that at least 2,500-3,000 787s will be manufactured, with a growing involvement of the two Puglia sites in their completion.
1.9.2 The CNR Pole for Nanotechnologies In 2015 CNR inaugurated in the Campus Ecotekne of the University of Salento, the CNR Pole for Nanotechnologies. The Pole is a very large research facility dedicated to
17 Source: http://www.ilsole24ore.com/art/impresa-e-territori/2014-02-11/grottaglie-alenia-aermacchi- costruira-altre-200-fusoliere-boeig-787-160432.shtml?uuid=ABrnZsv 18 Source: http://www.regione.puglia.it/index.php?page=pressregione&opz=display&id=10690
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the development of nanotechnology and its applications in science and production. The Pole is the result of joint effort between the regional administration and CNR and has been established on investments of around €18 million (€10 million from the ERDF, €4 million from CNR and €4 million from a NOP project won by the CNR), covering an area of over 12,000 square metres where more than 200 researchers from different scientific profiles (physicists, chemists, biologists, doctors and engineers) work in new laboratories and facilities. The Pole brings together the competencies of the CNR institutes NANOTEC, NANO, IMM, IFC and of the University of Salento in the development of new research and prototyping of new materials and devices for applications, created exploiting the large potential of nanotechnology through a bottom-up approach (self assembling and molecular engineering of molecules organic polymers and biomolecules) and top-down (latest generation nanofabrication technologies applied to semiconductor materials). The Pole is completely dedicated to technology transfer. In a relatively short period of time it developed important partnerships with large national and multinational companies in several research areas. The Pole is involved in long-term collaborations and hosts joint labs with: • Ospedale San Raffaele, a large hospital located in Milan hosting important research institutes specialising on life sciences; • STMicroelectronics, one of the world’s largest semiconductor companies and a leading integrated device manufacturer serving all electronics segments with production sites in 11 countries and R&D centres in 10 countries; • H3G, a TLC company offering mobile communication and internet services; • Bosch, a leading supplier of technology and services, offering mobility solutions primarily for the automotive industry, power tools and household appliances, drive and control and packaging technology, energy and Building technology; • Italcementi, a large Italian company producing building materials. The Pole also hosts the DHITECH Nanotechnology Living Lab, managed by managers having a long-standing experience in technological innovation practiced within high- tech industries, and several CNR and university spinoffs. The CNR Pole for Nanotechnologies represents a good practice case because, putting together a critical mass of researchers and institutions, and with the support of the regional administration, CNR was able to create a centre of excellence that fully fits the regional strategy for innovation with respects to the KETS identified by ARTI, and that responds to the relevant challenge for Puglia of reinforcing the research system. Despite its remote location and the weak industrial base of Puglia, the Pole has demonstrated from the outset to be able to attract the interest of several global private organisations. The Pole currently hosts R&D staff from the business sector developing technologies in collaboration with CNR R&D staff (e.g. 40 employees from STMicroelectronics) and has several research projects in partnership with companies like Bosh. The Pole also collaborates with tens of small companies developing nanotechnologies for application in agriculture, the energy sector (e.g. solar panels), and the building industry. CNR and University staff have been able to get research contracts, consultancies and research projects totalling €4-5 million a year, accumulating investments in laboratories and equipment amounting to over €50 million.
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1.10 Leveraging the existing potential
1.10.1 Future challenges • Challenge 1: Advanced materials must meet nanotechnologies According to local companies the aircraft industry employs the finest carbon fibre technology, but companies’ ability in processing this material will soon meet the ‘innovation possibility frontier’. It is necessary to embrace a new technology regime, bridging together nanotechnologies and new materials to bring component integration to new levels and make possible the production of more sophisticated aircrafts. Modern aircraft manufacturing does not just need to meet the challenge of weight reduction but also acoustic isolation, electrical insulation (e.g. from lightening) and resistance from weather conditions. For example, nano-modified resins for carbon fibre manufacturing, which are more resistant to wind and hailstones could make possible to reduce the use of external metal foils on the plane. This would cut production costs, increase resistance (it would not be necessary to puncture the structure to fix the panels with rivets and bolts), speed up production and simplify the production process. In order to meet this challenge it is important to continue to invest in research in the area of nanotechnologies, promoting the interaction between research centres (e.g. the CNR institutes) and industry. The development of this type of technology could grant a relevant competitive advantage to the regional aircraft industry. • Challenge 2: Production of the new ATR The ATR 4272 is a twin-engine turboprop short-haul regional airliner manufactured by the French-Italian aircraft manufacturer ATR, whose parent companies are Alenia Aermacchi and Airbus Group. The plane has been typically employed as a regional airliner and it represents a mere 3% of Airbus profits while it represents a far more substantial source of income for a relatively smaller company like Alenia Aermacchi. The first versions of the plane were launched in the 1980s, but there have been negotiations for the production of a new, more modern and efficient version. Alenia Aermacchi, local suppliers and the DTA are busy developing via research projects the necessary competencies for the realisation of the new plane, which it is likely to have a large impact on the regional industry in Puglia, where the production of the new plane could take place. However, at the moment Airbus is reluctant to commit to the development of the new ATR as the price of petrol is quite low and the company fears that demand for a more efficient plane would be low. The national Government and the regional administration must do everything possible to promote the development of the new plane as it represents a win-win strategy for all the stakeholders involved (Alenia Aermacchi, the local suppliers, the regional economy, the airlines and ultimately the environment). • Challenge 3: Grant financial stability to the nanotech research system CNR and the regional administration have made a large commitment in the CNR Pole for Nanotechnologies. The Pole now represents a world-class centre for the development of technologies for which, in the near future, there will be high demand from industries such as the energy and the aerospace sector, the food industry, the life sciences and cultural heritage. However, the types of activities carried out at the centre need economic and employment stability that at the moment is missing. Some 90% of research staff is employed with short-term research contracts and the centre needs to bid successfully for projects and contracts for at least €3-4 million a year just to pay current expenses. The management of the centre fears that if and when they will not be able to secure funding for such a high amount, they will need to start firing staff, losing the critical mass of competencies accumulated so far.
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1.10.2 Possible future orientations and opportunities • Continue to foster interregional collaborative research The experience of Alenia Aermacchi and CNR are just some examples of the positive impact that interregional collaboration on advanced manufacturing is having on a lagging region like Puglia. The ERDF, and the Framework Programmes, together with regional clustering schemes are having a massive impact on the regional private and public research base that is demonstrating to be capable of leveraging enormous resources and create sustainable development. With appropriate support from the regional administration, it is necessary to consolidate the investment made and aggregate both the value chains and the research system. • Technology upgrading of the regional aerospace value chain As described above, even in the years following the economic crisis the regional key players in the area of new materials and nanotechnologies made large commitments to innovation that are generating returns. However, it is necessary to push small companies to make the same effort, investing in the switch from traditional to advanced manufacturing. There is the fear that if this technological shift will not soon be made, larger companies will be forced to look outside the region for parts and components. An example of this lag in technology and productivity levels can be found in Alenia Aermacchi, who had problems in meeting the boom in demand for components for Boeing aircrafts because suppliers did not always have the expected levels of performance. Therefore, the company has become more selective in the choice of suppliers. Those firms that will not switch from traditional to advanced manufacturing will go burst. • The development of the Taranto Grottaglie airport test bed The Grottaglie airport is an important infrastructure for the development of the aerospace industry and support to aerospace research, testing and experimentation with particular regard to the development of new aeronautical solutions on which the attention of the aerospace industry is focusing. There have been talks about the expansion of the airport, increasing its integration with the aerospace district in the nearby city of Brindisi. The DTA is pushing for the development of technologies applicable to unmanned aircrafts remotely controlled, which would be possible with the valorisation of Grottaglie airport as a test bed for this type of aircrafts. The airport is currently used only for cargos but a better valorisation of its potential could push the development of the whole aerospace industry. The development of an infrastructure located in the centre of the Mediterranean, characterised by good logistics and favourable weather conditions could offer new opportunities for the development of the regional industry.
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2. Regional Innovation Performance Trends, Governance and Instruments
2.1 Recent trends in innovation performance and identified challenges Italy was going through a decade of economic stagnation when it was hit by the effects of the global financial crisis. While the effects on the banking sector were not as severe as in other countries, they were devastating on the manufacturing sector, which in Italy represents a larger part of the economy than in many other countries of the Eurozone. In 2015 Italy’s economy has finally emerged from a bruising triple-dip recession: GDP in the Eurozone’s third-largest economy had grown by 0.8% in the third quarter of 2015 with respect to the same period in 2014. Such rates would be disappointing for many countries accustomed to faster growth, but for Italy it represented the best performance in three years.19 To make things worse, Italy has suffered from decades from deep regional disparities in economic development, which have widened during the economic crisis. If follows that regions in Southern Italy like Puglia, already affected by sluggish economic performance, low industrialisation and high unemployment, suffered even more from the crisis, diverging quickly from the rest country with respect to all economic indicators. Puglia lags behind the national and European economy in terms of economic performance. GDP per capita was on average just €15,162 in 2012 among the lowest in the country and corresponding to 66.48% of national GDP per capita (€22,808). Over the period 2000-2012, the growth rate of the GDP per capita was -7.1%, shrinking at a faster rate than the national average (-5.1 %). Although Puglia is considered one of the most dynamic regions in Southern Italy, over the period 2000-2012 gross GDP diverged from national values, especially because of low productivity growth (+1.7 vs. +2.3%). Over the period 2000-2012 the average growth rate of value added per worker was 0.7% in Italy and -0.2% in Puglia. The unemployment rate in Puglia is very high (21.6% in 2014) and well above the national average (12.5%), growing sharply during since 2009 (+70.1% vs. the national growth rate of 65.1%). Investments In capital goods collapsed, marking a -49% over the period 2009-12 in Puglia vs. a national average of just -20%. Confirming these negative trends, the growth rate of turnover per employee over the period 2009-12 was lower in Puglia than in Italy (17% vs. 20%). Over the period 2002-09 the number of employees in all economic sectors grew at a slower pace in Puglia than in the rest of the country (2.9% vs. 6.5%) and over the period 2009-13 the employment rate diverged even more from the national average (-4.5% vs. -2.5%). With a total of 380,243, Puglia is the ninth most-important region in the country in terms of the number of enterprises based there. Economic activities are largely concentrated in micro-enterprises (88.9% vs. 83.0% nationally) and the share of large companies is negligible (0.1% vs. 0.3%). The greatest geographical concentrations of enterprises are found in just two provinces of the six regional provinces: Bari and Lecce. Although the number of enterprises has decreased sharply during the years following the economic crisis, Unioncamere data show that this process is finally coming to an end, with the number of enterprises diminishing only by -0.87% over the period 2012-13. With a +9.4% over the period 2013-14 Puglia is the first region in Italy in terms export performance, confirming the positive expectations concerning the end of the effects of the crisis on the regional economy. Despite low industry concentration and negative economic performance in the years of the economic crisis, innovation performance is comforting. According to CIS data, the share of businesses introducing innovations is below the national average (46.9% vs. 51.9%), but Puglia is performing much better than all the other regions in southern Italy who also benefit from Objective Convergence funding from the EU Structural Funds. Expenditure on
19 http://www.ft.com/cms/s/0/7815f214-0453-11e5-95ad-00144feabdc0.html - axzz3u6J1oF2l
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innovation is above the national average (7.5 thousand Euros per employee vs. 6.3) and cooperation agreements on innovation activity are widespread and in line with the national average (12% vs. 12.5%). However, it must be noted that these figures are likely to overestimate innovation performance in Italy and in Puglia in particular as CIS surveys target businesses with more that 10 employees, while the share of micro enterprises is higher in Italy than in the rest of Europe. In Puglia GERD accounted for just 0.78% of GDP in 2012, far below the national and EU28 average (respectively 1.26% and 2.01%). The contribution of BERD to GERD is generally limited (25% in Puglia, 55% in Italy and 63% in the EU). Human resources in science and technology (HRST) as a share of the active population in the age group 15- 74 were 27.3% in Puglia vs. 32.5% in Italy and 41.1% in the EU. Unlike in the case of other indicators, the gap in HRST performance has been widening in the last few years, especially after 2009. Part of the reasons for this widening in gap with the EU level of HRST lays in the substantial cuts to university funding that MIUR has introduced in the last few years as part of the government spending review strategy. In fact, OECD data on R&D expenditure performed by the higher education sector (as a percentage of GDP) show that in 2011 regional and national spending on universities were well below the average value of other European countries in the OECD (respectively 0.38% in Puglia, 0.36% in Italy, 0.49% in Europe). While the regional value is slightly higher that the national average, it must be noted that following the economic crisis (since 2009) regional spending on universities has shrunk by 15.6% in Puglia, while it has remained virtually unchanged in Italy and in Europe. Despite population growth, from 2005 to 2011 the number of academic staff shrunk by 8.6% in Puglia and only by 2.7% in Italy. MIUR funding per capita shrunk by 40% vs. 25.2% in Italy and university access to UE funding (Framework Programmes, etc.) shrunk by 42.1% while it nearly doubled in Italy. Puglia still lags behind the rest of the EU in terms of household Internet access and computer use. In 2014 44% of population never used a computer in Puglia, vs. a EU average of 16.8%; 68% of population had Internet access, vs. a EU average of 81.7%. While thanks to the increase in the use of tablets and smartphones Internet usage is converging rapidly to rapidly towards the EU average, the gap in computer use remains wide. Since 2009, the gap between the EU average and Puglia in Internet use has narrowed drastically, from 54.1% to 20.1%. On the other hand, the rate of convergence to the EU level in computer use has been extremely low (approx. 0.5% per year). Part of the reasons of this gap has to found in the backward socio-economic conditions. People at risk-of-poverty (with an equalised disposable income below the risk-of-poverty threshold, which is set at 60% of the national median equalised disposable income) were 25.8% in Puglia and 17.8% of total population in 2014, but the rate of convergence to the EU level has been extremely low over the past 10 years (approx. 0.4% per year). The number of students in all levels of education as a percentage of the total population is still fairly low, 19.3% in Puglia and 22.2% in the EU, with a marginal yearly increase of 0.1%. Moreover, the number of young people in the age 15-29 not (engaged) in education, employment or training (NEET) is very high at 34.1% vs. an Italian average of 26%. However, these figures do not take account of the relatively large black labour market, which, according to recent estimates, in Puglia amounts to 11.8% of GDP vs. a national average of 6.5%.20 The key drivers to innovation performance are: the emergence of vibrant communities of innovators clustered in technological districts supported by regional research centres; firms’ increasing awareness towards innovation and their need to collaborate with other agents in R&D initiatives which has been supported by a long-term regional strategy; a growing number of start-ups and start-up policy initiatives which are valorising regional specialisations and competencies. The greatest weaknesses in
20 http://scenarieconomici.it/dati-regionali-distribuzione-del-lavoro-nero-3-milioni-di-addetti-per-427- miliardi-di-evasione/
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terms of innovation performance that need to be addressed in terms of potential challenges for regional policy are: • Challenge 1: Support regional academic institutions The identification of this challenge is based on the analysis of university data. The situation of research funding in academia in Italy and, in particular, in Puglia, is particularly worrying especially if technology transfer data is considered. Regional universities play a key role in supporting innovation activity in the region but they are understaffed and starved for research funding. Nevertheless over the period 2005-11 regional universities managed to increase their patent activity, converging towards the national level and outperformed other academic institutions in terms of spinoff creation. Puglia in fact now has 7.4% of the national spinoff population (1082 units) (Netval, 2013). Moreover, university-industry interaction (expressed in terms of research contracts) has increased by 46.5% vs. a national average growth of 28.2%. Given the positive impact that regional universities are having on supporting regional innovation activity, it is an absolute priority for the regional government to grant the best possible conditions in academia to continue to grow their engagement with industry and the training of potential employees and entrepreneurs. • Challenge 2: Support demand for innovation and networking The identification of this challenge is based on the analysis of the low contribution of BERD to GERD in Puglia and on ISTAT data. Average firms’ size in Italy is among the smallest in Europe (together with Hungary, Poland and Greece) and in Puglia is even smaller, ranging from 3.3 to 8.1 staff. The number of graduates is also extremely low. As noted before although regional efforts in increasing firms’ awareness about innovation issues is growing, effort still needs to be put in improving firms’ innovation performance. Regional firms carry out very little R&D activity and hardly collaborate with partners (businesses or institutions) in research and innovation. Confirming this, policymakers highlighted how, despite the amount of public resources (primarily from the EU) available to businesses for innovation purposes, the number of firms prepared to participate in calls and co-fund sponsored initiatives is generally lower than expected. Increasing the local ‘potential’ and ‘latent’ demand for innovation (Muscio et al., 2010) is not an easy task in the case of Puglia: the industrial structure is based on SMEs operating in traditional sectors and firms’ size and industry composition hamper innovation performance and firms’ awareness about potential innovation needs. In such framework conditions regional institutions face relevant obstacles in identifying firms’ individual (and collective) technological needs and respond to them. Actors such as the recently created Living Labs could be very helpful in establishing and maintaining collaborations on technological innovation between public research centres, SMEs, large companies and the public administration at the regional, national and European levels. • Challenge 3: Increase productivity The identification of this challenge is based on the analysis of regional statistical data. Regional productivity is below the European average. Puglia’s agriculture and industry are less productive than the national average but in line with other Italian convergence regions. Local businesses also have to cope with corporate taxation and labour costs among the highest in Europe.21 While poor productivity can in part be explained by its industrial structure, which is based on SMEs, poor ICT performance and literacy with respect to the rest of the EU still hamper productivity growth. Puglia has not yet been able to exploit the opportunities offered by ICT in allowing a better use of resources and therefore improving productivity (along with many other opportunities). The use of computers, computer networks, dedicated software and broadband access is still too
21 http://www.ilsole24ore.com/art/mondo/2015-03-30/la-mappa-costo-lavoro-europa-bulgaria-38-euro- all-ora-danimarca-40-e-italia--113543.shtml?uuid=ABZWYbHD&refresh_ce=1
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limited to allow efficient access to information that can provide new business (and innovation) opportunities. Investments are also needed in improving human resources (via training and recruitment) within businesses in order to diffuse the use of ICT technologies and reap the benefits deriving from a more productive use of resources.
2.2 Institutional framework and set-up Regional authorities play a major role in designing and implementing innovation policy in Italy. The 2001 reform of the Italian Constitutional Law increased multi-level governance, granting to councils all the administrative functions that are not otherwise reserved to higher levels of governance. Following the 2001 reform, regional administrations have become responsible for policy making in the area of scientific and technological research and support to innovation for industrial sectors but have to observe some fundamental principles set by national law. Italian regions reorganised their institutional framework in order to carry out the new legislative tasks imposed by the Constitutional reform. In the case of Puglia, the principal authority in charge of innovation policy is the “Area Politiche per lo sviluppo economico, lavoro e innovazione – Regione Puglia” (the Puglia Region’s Office for economic development, jobs and innovation).22 This Office has full legislative and constitutional powers in developing innovation. It is in charge of programming, implementation and control of regional policy in the area of (1) scientific research and technological innovation, (2) employment and professional training and in those areas of development policy not assigned to the Regional Office of Rural Development. As a convergence region, Puglia is entirely dependent upon funding from the EC and the National Government and can only pursue actions in line with these two (higher) authorities. In recent years the regional administration took important steps in changing the regional innovation governance system that are aimed at rationalising policy development and implementation. Regional authorities develop policy initiatives with the support of InnovaPuglia23, PugliaSviluppo24 and the Regional Agency for Technology and Innovation (ARTI)25. InnovaPuglia is an intermediate body created in 2008 from the merger between the science and technology park Tecnopolis Scrl and FinPuglia SpA, the regional financial agency. InnovaPuglia provides technical support to the regional administration in the implementation of regional technological investment programmes and is the public agency for ICT. InnovaPuglia is in charge of implementing the Digital Agenda for Europe. PugliaSviluppo is another intermediate body controlled by the regional administration since 2009 that provides support to the regional administration in defining and implementing of initiatives in support of innovation in local productive systems. In recent years PugliaSviluppo implemented several of the regional initiatives supported by the ERDF and promoted by the regional administration. ARTI was created by the regional administration in 2005 in the attempt to promote and consolidate the regional innovation system, fostering the collaboration between public and private actors. ARTI supports the regional government in developing the regional innovation strategy; the interaction between scientific institutions, industry and society; firms' innovation activity; and fosters the creation of linkages between regional research and innovation actors located in Puglia and elsewhere. The creation of the agency represented an important step in the organisation and coordination of innovation policy. Since its creation, ARTI started collecting statistical data carrying out studies that support the regional administration in the design and implementation of regional policy.26 ARTI also carries out ex-ante evaluations of initiatives promoted by the regional administration and provides useful
22 http://www.regione.puglia.it/index.php?page=struttura&opz=liststr&str=1 23 http://www.innova.puglia.it/chi_siamo.html 24 http://www.pugliasviluppo.eu/ 25 http://www.arti.puglia.it/ 26 http://www.arti.puglia.it/?id=523
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feedback to the regional administration for the design and improvement of future calls. As part of its latest efforts, ARTI prepared a report on the regional aerospace industry. The amount of resources dedicated to research and innovation policy has not changed substantially. The ‘Area Politiche per lo sviluppo economico, lavoro e innovazione’ counts 12 members of staff, while ARTI, InnovaPuglia and PugliaSviluppo count together 15 members of staff, totalling 27. Since the reform of the constitutional law as a first internal effort to better tackle regional economic problems the regional administration in Puglia has promoted some actions to improve horizontal co-ordination between regional actors. The two most important mechanisms are the Progetto Gaia (the Gaia Project) and the inter- departmental working group created for the Piano per il Lavoro (The Employment Plan). The ‘Progetto Gaia’ was introduced in 2008 (regional law n. 161/2008, 22 February) and reformed completely the internal organisation of regional departments. Before the implementation of the project, following the national model of governance, the regional governance system was organised in offices dealing with specific socio- economic sectors (agriculture, craftsmanship, etc.). The project introduced ‘super- managers’ that supervise nine general directorates,27 promoting the horizontal integration of common issues across different socio-economic sectors. This reform greatly improved the understanding of common needs and the integration between different policy initiatives. The ‘Piano per il Lavoro’ was aimed specifically at addressing unemployment. The Plan was coordinated directly by the President of the Region and regulates the coordination between the general directorates (13 in total) dealing with unemployment issues (economic development, training, employment and social policy, youth policy). The Plan coordinates all resources devoted to regional employment policy (national funds, ESF, ERDF, etc.). As a further step in the improvement of the institutional set-up, the regional administration will implement at some point in the future the so-called ‘Modello Ambidestro per l’Innovazione della macchina Amministrativa regionale - MAIA’ (Ambidextrous Model for Innovation in the Regional Administrative Framework), presented in June 2015 but not yet operative. MAIA represents a big change in the design of the regional organisational model, with implementation aimed at streamlining regional governance with a range of measures, like the reduction of the number of regional departments (from eight to six), the creation of a supporting agency for each department, the creation of a management board including all the agencies, the six departmental directors, the president of the regional government and the cabinet secretary. No further changes will be made to the innovation policy set-up till the implementation of MAIA. It can be maintained that in the case of Italy both Competitiveness and Convergence regions share an advanced degree of autonomy in developing and implementing innovation policy initiatives. This in theory represents a great opportunity for policy design and implementation as policy makers have greater knowledge of local problems, needs and potential. Innovation policy is delivered and implemented by the regional administration. The support strategy follows a bottom-up approach, elaborated with the support of ARTI that investigates the demand for innovation in the region and provides important inputs in the area of foresight. The regional administration consults ARTI, InnovaPuglia and PugliaSviluppo along with regional organisations such as the regional ILO network, technology districts and regional universities preparing a ‘basket’ of initiatives that support regional innovation activity in line with the principles and priorities set by the regional strategy for innovation at present defined by SmartPuglia, the regional Smart Specialisation Strategy. Overall, the institutional set-up has been reorganised to reinforce networking between
27 http://www.regione.puglia.it/index.php?page=struttura&opz=liststr&str=1
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different agents of the regional innovation system (especially universities) and respond to the challenges in terms political autonomy set by the National reform of the Constitutional Law. This great degree of autonomy in regional policy has its downsides. First of all, there is some overlapping and conflict between national and regional strategies, which require coordination. For example, the promotion of technology districts is a national priority of the MIUR, but the choice of suitable projects is made consulting regional bodies. Similarly, while research policy tends to be a national priority, initiatives in support of university-industry interactions or spinoff creation are constrained to the regional scale. A second constraint deriving from multi-level governance is found in the fragmentation of initiatives, which has been particularly evident with the definition of Smart Specialization Strategies. The scale of governance inhibits to tackle similar problems with the same policy tools as regions report directly to the national government and valid initiatives remain constrained to the local level, in same cases not achieving critical mass. Therefore, in some cases there can be similar initiatives addressing the same issue such as pre-commercial procurement or cluster initiatives, which are supported in different fashions in different regions with evident duplications of efforts and waste of resources. Several initiatives have been taken to improve coordination between different levels of government (e.g. State-Regions Conference, Framework Programme Agreements to implement coherently national and regional operational programmes in the convergence objective etc.). These initiatives are important steps towards the improvement of multi-level governance but address only to a certain extent the overlapping of competencies between regions and national government, which is especially evident in the area of technology transfer.
2.3 Regional innovation policy mix The new regional innovation strategy focuses on five ‘bridging’ actions (Azioni Ponte), which, in the view of policy makers, are supposed to bridge the past programming period with the new one, connecting different actors of the regional innovation system in several ways. These actions aim at experimenting new approaches in supporting innovation. The Smart Specialisation Strategy for Puglia, SmartPuglia 2020, aims at strengthening the integration between ‘transectoral’ policies for research, innovation, competitiveness, internationalisation, training and work, improving their connection with ‘vertical’ policies for the environment, transport, welfare and health, etc. In the view of the regional administration, the KETs should help to focus on specific technologies the integration between the actors of an augmented version of the Triple- Helix Approach (Etzkowitz and Leydesdorff, 2000), dubbed the ‘quintuple-helix. While the original model suggested the integration of three actors – state, academia and industry – the regional administration identifies five actors: regional government, industry, academia and research centres, researchers and societal challenges to serve society. The addition of the last two stakeholders to the original model derives from the need to improve human capital, supporting the creation of new research based activities, and the necessity to steer innovation policy towards societal challenges, in a region still affected by social problems such as poverty and lower education. Therefore, the regional S3 aims at: Strengthening the competitiveness of the private sector with the use of technology; Promote development via the use of human capital; Support to emerging social and environmental challenges linking local needs with innovation; Spread digitisation to support local communities and promote the implementation of a ‘open government’ approach; Promote networking to facilitate the circulation of knowledge beyond the local dimension. In the past programming period the regional administration has focused on four primary types of measures in the area of innovation:
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• Governance & horizontal research and innovation policies. In this area we find those measures aimed at clustering research institutions and businesses such as the promotion of productive districts and technological districts. • Research and Technologies. In this area we find those measures aimed at strengthening the research system such as the creation of the networks of public research laboratories, the Industrial Liaison Office networks and the creation of regional research centres. • Promote and sustain the creation and growth of innovative enterprises. In this area there are those measures supporting spinoffs, start-ups and R&D investments in businesses (e.g.: Support to newly established innovative small firms; R&D investment support for SMEs). • Markets and innovation culture. In this category the regional administration has activated few support measures targeting the diffusion of ICT in SMEs networks and increase in the awareness about the relevance of innovation.
Finally, some measures target other issues such as the upgrading of human resources (Back to the Future - research grants) and pre-commercial procurement. The recent regional innovation policy strategy introduced with the new programming period represents the evolution of the ROP-ERDF 2007-2013. While in the recent past, regional initiatives have been steered towards the main objectives of reinforcing the research base, supporting business innovation activity and reinforcing linkages between different agents of the regional innovation system, with many measures that supported directly or indirectly these objectives, the new S3 focuses on the KETS and has a more integrated approach to innovation introducing great emphasis on societal challenges such as protection of the environment, fighting poverty, improving education and ICT. The thematic objectives of the new ROP are the following: 1. TO1 – Support research, technology development and innovation 2. TO2 – Improve quality and access to ICT 3. TO3 – Support SMEs competitiveness 4. TO4 – Support the transition towards a low carbon-emissions economy in all sectors 5. TO5 – Promote the adjustment to climate change, risk prevention and management 6. TO6 – Protect the environment and promote the efficient use of resources 7. TO7 – Abate bottlenecks in public networks and promote the use of sustainable means of transport 8. TO8 – Promote employment and workers’ mobility 9. TO9 – Support social inclusion and fight poverty and discrimination of any kind 10. TO10 – Invest in education, training and vocational training for skills and permanent learning 11. TO11 – Reinforce the institutional capacity of public authorities and promote a more efficient administration.
Supporting the intention of the regional administration to let Puglia catch up with the rest of Europe in terms of access to ICT, the Puglia Digital Agenda 2020 supports the commitment to ICT highlighted in the S3, defining the regional strategy to meet the objectives set in the Digital Agenda for Europe.
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For what concerns research and innovation, the recent strategy is based on fewer initiatives than in the past (the Regional Innovation Report for Puglia indicated 13 measures in the area of innovation policy) that focus on: pre-commercial procurement; ICT and smart-cities; support to public research; technology districts. The five existing measures are listed in Table 2.
Table 2 Regional innovation support measures Title Duration Policy priorities Budget Organisation More (€ responsible information millions) Regional Sept. 2014 5.1 Cluster 30 Regione Puglia, http://www. Technolo - to date development Area Politiche per sistema.pugl gy lo Sviluppo, il ia.it/Sistem Clusters 2.1 R&D Lavoro e aPuglia/ban cooperation projects l’Innovazione, do- between academia Servizio Ricerca clustertecno and industry Industriale e logici 4.1 Direct funding Innovazione, to business R&D and innovation
Openlabs June 2015 7.1 Public sector 9 Regione Puglia, http://www. – to date innovation Area Politiche per sistema.pugl initiatives lo Sviluppo, il ia.it/Sistem Lavoro e aPuglia/ope 6.1. User-driven l’Innovazione, nlabs innovation Servizio Ricerca initiatives Industriale e 6.3 Pre-commercial Innovazione, procurement innovation Future in Dec. 2013 1.2 Competitive 26 Regione Puglia, http://www. Research - to date funding of research Area Politiche per sistema.pugl lo Sviluppo, il ia.it/Sistem 3.2 Training and Lavoro e aPuglia/futu life-long learning of l’Innovazione, reinresearch researchers Servizio Ricerca 3.1 Promotion of Industriale e science, education, Innovazione, PhD studies… Pacts for Dec. 2013 5.3 Innovation 11 Regione Puglia, https://ww the Cities - to date awareness raising Area Politiche per w.innova.pu lo Sviluppo, il glia.it/visual 7.1 Public sector Lavoro e izza- innovation l’Innovazione, newsletter/- initiatives Servizio Ricerca /asset_publi 7.2 Social Industriale e sher/R6CJI innovation Innovazione, NjpYAnO/c initiatives ontent/pubb licate-le-
direttive- smart- puglia-patti- per-le-citta
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Title Duration Policy priorities Budget Organisation More (€ responsible information millions) Living Apr 2012 6.1. User-driven 24 Regione Puglia, https://ec.e Labs – to date innovation Area Politiche per uropa.eu/gr initiatives lo Sviluppo, il owth/tools- Lavoro e databases/r 5.4. Innovation l’Innovazione, egional- management and Servizio Ricerca innovation- advisory services Industriale e monitor/su 5.3 Innovation Innovazione, pport- awareness raising measure/livi ng-labs
2.4 Appraisal of regional innovation policies In the case of Puglia, one of the greatest problems in fostering innovation performance is the promotion of demand for innovation. The industrial base is prevalently based on small and micro enterprises that hardly employ graduates and that are mostly specialised in mature industries. Therefore the innovation performance is low and innovations are of an incremental nature and based on process innovations. Insofar there are no measures stimulating investments and technology upgrading which would support demand for innovation. While it is probably too early to say whether these measures will be introduced in the near future, it must be stressed that the promotion of Technology Clusters and productive districts, besides stimulating networking, indirectly fits this purpose. In fact, starting from the current programming period, all initiatives in the area of firms’ innovation in Puglia will support the KETs and be addressed only at businesses that are part of either a productive district or a technology district. Moreover, technology clusters receive generous funding from MIUR for research proposals that is channelled by the regional administration. So far, the regional government has received research proposals for €150 million, distributing funding for €45 million. The Regional Technology Clusters initiative covers another relevant challenge for Puglia, that of stimulating networking. Technology clusters represent the evolution of productive districts, an initiative promoted in the past programming period that has been indicated as a best practice in the past the Regional Innovation Report for Puglia. This measure supports collaborative research, and is especially targeted at businesses and research institutions that are part of a regional technological district. A Pre-commercial procurement scheme was launched during the past programming period and has been evolved in the scheme Openlabs. Pre-commercial procurement initiatives fit the purpose of supporting demand for innovation, stimulating regional innovation activity and at the same time modernising the public administration. Openlabs stimulates regional actors to respond to the innovation needs of public bodies, promoting research activities on new products, processes and services that will be used to improve quality of life of citizens. These measures also support ICT as in the majority of cases research proposals address technology needs in the area of online access to services. The challenges to catching up in the area of ICT are met with the Living Labs initiative, which is the only initiative that pre-dates the current programming period. The initiative supports the implementation of new approaches in innovation activity in the area of ICT. It starts from the assumption that communities of researchers, companies and citizens can accelerate the design of new products and services. It creates an eco- system leveraging user-driven open innovation in support of local ICT SMEs. Future in Research is a regional initiative funded by the central government with the Development and Cohesion Fund aimed at supporting research projects of Ph.D. students studying at the five regional universities. Research ideas should focus on any of the following areas:
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1. Sustainable cities and communities 2. Health, welfare and socio-cultural dynamics 3. Sustainable energy 4. Creative industry (and cultural development) 5. Food security and sustainable agriculture. The measure is allowing the recruitment of 170 non-tenured researchers and, in the hopes of the regional administration, will contribute to train a new generation of faculty staff that is able to attract competitive Horizon 2020 research funding. Overall, this measure represents a first step to respond to the challenge to support regional research institutions and is therefore coherent with the needs of the region and with the whole regional innovation strategy. Finally, the action Pacts for the Cities aims to build a regional network of e- government services and the development of the Information Society in local municipalities, encouraging the adoption of advanced digital services. The initiative sponsors the cooperative use of digital technology in one of the following areas: environment, safety and environmental protection; Cultural heritage and tourism; Electronic government for the PA; Health, welfare and socio-cultural dynamics; Renewable energy; Education; Transport and sustainable mobility; Creative and digital economy. The Pacts for the Cities initiative continues the work done with past and present measures aimed at modernising the public administration (e.g. Living Labs, Pre-commercial Procurement) and implements the S3 targeting the paradigm of "smart cities and communities". Therefore, it seems to fit well the regional strategy for innovation, responding as well to the challenges identified above. In some cases ARTI has carried out ex-ante evaluations of initiatives promoted by the regional administration (e.g. the initiative Research Grants). In these cases ARTI gives feedback to the regional administration for improvement of future calls of initiatives and their design. However, in the past five years very little has changed in the area of policy evaluation. While there is generally more awareness about the relevance of accountability, no evaluation has been carried out on the impact of the measures of the past programming period. Integration between national and regional policy is constrained by multi-level governance. The 2001 reform of the Italian Constitutional Law introduced the principle of subsidiarity, established in EU law by the 1992 Treaty of Maastricht,28 limiting the exclusive legislative power of the national government to those areas of national interest (foreign policy, immigration, defence, monetary policy, customs, citizenship, etc.). This reform granted to Italian regional governments exclusive legislative power in many areas, including scientific research, technological innovation and support to regional and local economic activities. It follows that regional administrations are now responsible for policy making in the area of scientific and technological research and support to innovation for industrial sectors but have to observe some fundamental principles set by national law. The two main instruments in support of regional innovation policy in Italy are the National Operational Programme (NOP) and the Regional Operational Programme (ROP). The National Operational Programme (NOP) Research and Competitiveness implements national innovation policy in the convergence regions such as Puglia, contributing to coordination between national and regional objectives in innovation policy. The ROP’s ERDF funding complements the NOP in the convergence regions, with the latter setting the goals of the S3. The only accountable example of the integration between
28 Under the principle of subsidiarity, in areas which do not fall within its exclusive competence, the Union shall act only if and in so far as the objectives of the proposed action cannot be sufficiently achieved by the Member States, either at central level or at regional and local level, but can rather, by reason of the scale or effects of the proposed action, be better achieved at Union level.
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national and regional policy is the Regional Technology Clusters initiative, which is coordinated by the national government but is implemented by regional authorities, which select viable clusters. These clusters are then evaluated and funded by central authorities (MIUR).
2.5 Policy good practice The technology district initiative shares with other regional policy measures the same clustering approach based on the relevance of value chains more than geographical dimensions. In 2007 the regional administration took an adventurous step in implementing a cluster approach at a very large scale in Puglia. The Productive Districts initiative aimed at clustering regional firms in several low-tech and high-tech value chains. Productive districts are enterprise networks operating along the same value-chain or producing the same product. Districts involve several regional research institutions such as universities, polytechnic universities and research centres, together with industry associations and unions. Cooperation between firms and research institutions within the district is geared towards the development of innovations. The initiative had a very high strategic value in addressing the strategic objectives of regional innovation policy focusing support on key strategic industries and technologies. The initiative aimed at ‘clustering’ business needs, creating a favourable environment for innovation based on business cooperation. Most importantly, it served the purpose of creating a base of potential beneficiaries for successive regional policy initiatives. In other words, strategic programmes will concentrate business support to those firms that are clustered in the districts. This type of approach has been working particularly well in the case of technological districts, an initiative promoted by the national government with the support of regional administrations. In the view of the Central Government, the growing globalisation of markets and the growing competitive pressures on firms increase the need to modernise the national economic system of industrial districts focusing on technology and innovation. These districts follow the Triple-Helix Approach (Etzkowitz and Leydesdorff, 2000) and are promoted by the concerted action of government (central and regional), companies, foundations and financial institutions. Technological districts represent poles for research and innovation, specialising in given technology sectors and industries, with the ambition to become centres of excellence at international level. Technology districts aim to build on the benefits of spatial proximity, promoting collaboration between companies and research centres, generating sustained innovation performance. The creation of technological districts is promoted by regional administrations, which present a project to MIUR that eventually endorse the initiatives granting the necessary official recognition and resources. Six regional districts and public-private partnerships were selected by MIUR for Puglia: MEDIS – Mechatronics; D.A.Re. – Food industry; DHITECH – Molecular nanotechnologies for Health and Environment, Tissue Engineering for the Regenerative Medicine and ICT for Products and Services; DTA – Aerospace industry; Di.T.N.E. – Energy; H-BIO – Life sciences and biotechnologies; INNOVAAL – Innovative Technologies and Products for Active & Assisted Living. With the promotion on technology districts regional stakeholders support S3, favouring the concentration of regional competencies in strategic technological fields. The creation of technological districts has been followed by national and regional measures supporting their development and integration. The ‘National Technology Clusters’ initiative aims at aggregating individual districts on some specific issues of strategic interest to the national domestic industry, promoting the development or the creation of a single cluster for each area. The scientific and technological areas identified by MIUR for the creation and development of clusters are as follows: Green chemistry; Agrifood; Technologies for living environments; Life sciences;
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Technologies for smart communities; Transport and mobility systems for land and ocean surface; Aerospace; Energy; Smart factory. The measure funds industrial research activities, experimental development and training. These clusters are intended as instruments for the coordination of technology areas that are strategic for the national competitiveness and aggregation nodes of expertise, research proposals and projects. Another example of how the creation of technological districts has allowed to innovation policy to target specific industries and technologies is the regional measure ‘Regional Technology Clusters’ in Puglia. The aim of the intervention is to create virtual networks where to implement integrated technological chains with the following characteristics: • Meet the needs of the regional innovation system to the five social challenges: − Sustainable cities and territories − Health, welfare and socio-cultural dynamics − Sustainable energy − Creative industries (and cultural development) − Food security and sustainable agriculture. • Focused on KETs of general interest. • Grant growth potential on national and international markets to a critical mass of actors, which are able to integrate competencies on long value chains, with National Technological Clusters. Technological Districts in Puglia have been able to leverage the existing potential in the area of research and innovation. Although their age and therefore their impact on innovation varies, it is possible to describe briefly their activities. The technological district D.A.Re., is a food technological district established in 2006. It groups together the most important stakeholders in this field at the regional level. D.A.Re.’s task is to bridge the gap between research centres and private companies, essentially, working as a broker of innovation. The district raised €500,000 in equity and involves 60 regional stakeholders (including 44 firms). The district is constantly growing, raising the positive interest of business stakeholders and steering academic research towards business needs. It supported so far the creation of 8 spin-offs, the agreement of 60 collaborative projects, 900 product and process innovations, and supported the application for 14 patents.
2.6 Possible future orientations and opportunities Puglia lags behind the national and European economy in terms of economic and innovation performance. Over the period 2000-2008 employment and GDP growth was sluggish and there were no real tangible improvements in the area of research and innovation and since 2009 this trend has worsened even more. Following the increase in autonomy and responsibilities set by the reform of the national Constitutional Law the regional administration took some important steps in reforming the regional innovation governance system. In Puglia, more than in many other Italian regions there have been evident efforts in developing a long-term innovation strategy, embodied in several strategic documents (e.g. ROP-ERDF 2007- 13, the past Regional Strategy for Research and Innovation, Smart Puglia) setting clear objectives that are aimed at reshaping the regional economy and the innovation system. This strategic perspective has been developed with the support of ARTI and
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the other recently created governmental bodies that are supporting the administration in designing and assessing innovation policy. The regional administration has implemented a consultation process involving relevant regional stakeholders aimed at discussing and sharing the priorities of the ROP 2014-2020. In the past programming period regional innovation policy initiatives were concentrated in two main objectives: supporting business innovation activity and reinforcing linkages between different agents of the regional innovation system. The current ROP is more articulated, demonstrating how, while the region is still affected by some structural problems such as low productivity, employment and innovation activity, the needs of the stakeholders have evolved. In fact, the outcome consultation process in the area “Research, Information Society and Support to Enterprises” is the identification of the following needs: • promote the internationalisation of SMEs to improve competitiveness • support aggregation of enterprises • promote innovation through public-private partnerships and ‘local network projects’, including also handicraft firms • supporting job placement of researchers in firms’ innovation activities promoting the emergence of new business models • facilitate access to credit • provide incentives and support to businesses hit by the economic crisis; implement the objectives of the Digital Agenda, also relying on the combination of public-private partnerships, for the development of e-government user-friendly systems. These regional needs are supported by a number of needs in the area “Employment, Education, Training and Social Inclusion”. As in the previous programming period there is great emphasis in fostering regional innovation performance promoting demand for innovation. The industrial base is prevalently based on small and micro enterprises that hardly employ graduates and are mostly specialised in mature industries. The economic sector is fragmented and potential innovation needs difficult to understand even because they are often potential or latent. Therefore, the intentions of the regional administration to boost demand for innovation aggregating the regional industry in productive districts and technological districts move in the right direction of reinforcing integration as clustering provides the opportunity to identify common (technological) needs and the achievement of critical mass of potential stakeholders. So far, the creation of technology districts has allowed the growth of university-industry partnerships and the reinforcement of the weak linkages in the regional innovation system. However, some concerns remain about several areas of innovation policy.
• Leverage the potential of regional research institutions First of all the state of the education system, which is severely underfunded. Human capital development is a key factor for innovation policy in Puglia, where the rate of tertiary education is much lower than in the rest of Europe. Although initiatives such as Future in Research contributed to the recruitment of many fixed-term contract researchers, much needs to be done to leverage the existing potential in the academic system and in research centres. This is still an area that the regional administration needs to continue to take into account. On the contrary, while recent reforms to the national academic system brought relevant cuts to university funding and a consequent reorganisation of teaching at regional universities (fewer courses, dedicated to a larger number of students), the academic system has done some important steps in responding to the regional demand for human capital increasing courses in the scientific fields that best serve the growing technology specialisation of
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the regional industrial sector (e.g. with a new post-graduate course in Aerospace Engineering in Brindisi and undergraduate courses in Logistic System Engineering for the Agrofood Industry and in Gastronomic Sciences in Foggia).
• Promote the recruitment of graduates Major investments are also needed in improving human resources in the private sector and the employment of graduates. Regional productivity is below the European average. The poor performance can be explained by the low added-value composition of its industrial structure and the poor diffusion of ICT with respect to the rest of the EU, but greater productivity levels cannot be achieved relying on human capital with low levels of numeracy and literacy. Major investments are needed in improving students’ learning at high schools and universities and some measures need to be promoted to encourage firms to recruit graduates. In fact, while regional stakeholders are trying to foster university-industry interaction, it will be very hard for businesses to interact with academics on technology transfer initiatives if there is too much cognitive distance (Muscio and Vallanti, 2014) and they lack the human capital able to engage in collaborations.
• Support to R&D investments and entrepreneurship The support to university business start-ups and spin-offs is a key factor in stimulating entrepreneurship and retaining skilled graduates in the region. However, access to credit is still problematic. In the recent past, the creation and growth of innovative enterprises has been a priority for the regional administration both in terms of financial resources allocated and in terms of number of initiatives. The regional administration has supported directly and indirectly business R&D investments with grants and early-stage financing. However, so far there is no measure in the current programming period supporting new ventures of R&D investments. Moreover, there are no initiatives in the area of innovation vouchers. This area of innovation policy needs to be rapidly addressed in order to sustain business demand for innovation.
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Appendix A Bibliography
1. ARTI (2015) L’industria Aerospaziale Pugliese: Occupazione, Innovazione e Prospettive di Sviluppo, ARTIREPORT. 2. EC (2007). INNO-Policy TrendChart – Policy Trends and Appraisal Report: Italy. 3. Etzkowitz H. and L. Leydesdorff (2000), The Dynamics of Innovation: from National Systems and ‘Mode 2’ to a Triple Helix of University-Industry- Government Relations, Research Policy 29,109-123. 4. Muscio, A., G. Vallanti, 2014 Perceived obstacles to university-industry collaboration: Results from a qualitative survey of Italian academic departments, Industry and Innovation 21(5): 410-429. 5. Netval 2013 Seminiamo ricerca per raccogliere innovazione: X Rapporto Netval sulla Valorizzazione della Ricerca Pubblica Italiana, available at: www.netval.it
Appendix B Stakeholders consulted
1. Adriana Agrimi, Director, Area Politiche per lo sviluppo economico, lavoro e innovazione – Regione Puglia (4 December 2015). 2. Angelo Corallo, Associate Professor, Innovars and University of Salento (22 December 2015). 3. Antonio Caruso, Head of R&D, Agusta-Westland (9 December 2015). 4. Antonio Ficarella, Full Professor, University of Salento (21 December 2015). 5. Gianni Iagulli, Head of Manufacturing and Assembly R&D, Alenia Aermacchi (14 January 2016). 6. Giuseppe Acierno, President, DTA (9 December 2015). 7. Giuseppe Gigli, Full Professor and Director, NANOTEC – CNR (13 January 2016). 8. Rosanna Giannini, EU Project Manager, InnovaPuglia (4 December 2015). 9. Silvio Pappadà, Engineer, CETMA (21 December 2015). 10. Tiziana Valerio, Director, DHITECH (13 January 2016).
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