The Mega Regional Scope The Baltic Sea Region in general To be download from www.VINNOVA.se 1 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy Real GDP Development Over Time Baltic Sea Region Countries, 1993 - 2004 Real GDP, PPP-adjusted, 1993 = 100 180% Sorted by CAGR, 1993 – 2004: 160% Latvia Estonia Poland Lithuania Iceland Finland Norway Sweden Denmark Germany Russia 140% 120% 100% 80% EU 25 60% 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Groningen Growth and Development Centre and The Conference Board (2005), authors’ calculations 2 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy Prosperity Selected Regions and Countries Real GDP per Capita 2004, PPP-adjusted, $-US (2002) $40,000 $35,000 Baltic Sea Region Other EU countries Other countries USA Norway Iceland Sweden Austria Singapore Germany Finland Japan Denmark $25,000 EU-25 Taiwan Baltic Sea $20,000 Slovenia $30,000 S Korea Czech Rep. Hungary Estonia Slovak Rep. Latvia Lithuania Poland Russia China India Central Europe $15,000 $10,000 Region Mexico Brazil $5,000 $0 0% 1% 2% 3% 4% 5% 6% 7% Growth of Real GDP per Capita (PPP-adjusted), CAGR, 2000-2004 3 Source: EIU (2005), authors’ calculations 8% 9% Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy Cluster Composition Baltic Sea Region Export Performance by Cluster World Market Share, 2002 BSR overall: +0.031% 20% Forest Products Fishing Products 15% Furniture Petroleum/Chemicals Marine Equipment Prefabricated Enclosures 10% Telecommunication Power Generation Equipment Heavy Machinery Metal Manufacturing Biopharmaceuticals BSR overall: 5.55% Production Technology Analytical Instruments Aerospace Vehicles & Defense Tobacco Automotive 5% Chemical Products 0% -0.6% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% Change in World Market Share, 1997 - 2002 Source: WTO (2005), Institute for Strategy and Competitiveness, author’s analysis. 4 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy R&D Expenditures Selected Regions and Countries R&D Expenditures in % of GDP, 2003 4.5% 4.0% Baltic Sea Region Other EU countries Other countries Sweden 3.5% Finland Japan 3.0% USA 2.5% Germany 2.0% Iceland Baltic Sea Region Denmark Austria Norway EU-25 Central Europe Slovenia Czech Rep. 1.5% 1.0% 0.5% Poland Slovak Rep. 0.0% -5% 0% Lithuania China** Hungary Estonia Latvia 5% 10% 15% 20% Growth of R&D Investments, annual average growth rate, 1998-2003 Source: Eurostat (2005), DG Research (2005), World Bank KAM, authors’ calculations * data for China, Japan, Iceland and EU-25 from 2002 ** annual growth rates in China have exceeded 10%; total R&D expenditures, in real terms, have grown by almost one-fifth each year 5 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy Business Competitiveness Index Ranking of European Regions Over Time Rank 10 Baltic Sea Region 20 Central Europe BCI – Overall Index NBE – Business Environment Quality COS – Company Sophistication 30 2003 2004 2005 Source: Global Competitiveness Report (2005), author’s analysis. 6 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy Four 2004 initiatives on Cross-National Cooperation in the Baltic Sea Region With Baltc Development Forum, the launch of the Baltic Sea Initiative 2010 With Tekes and Innovation Norway, the launch of the Northern Cluster Alliance Launched the Northern Dimension Working Group on Innovation Policymakers’ network And was launched supported by 7 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy Baltic Sea Initiative 2010 A mega regional focus on increased prosperity • Cross-national promotion of a mage regional concept • Benchmarks with peer regions • Identify and develop potentials (innovation) • A global proactive perspective • Stakeholder involvement, bottom-up BSI Core Group of key stakeholders: Nordic Council of Ministers, chair, Innovation agencies, TEKES and VINNOVA, Scanbalt, Council of the Baltic Sea States’ Advisory Business Council , “Invest in” organisations of the Baltic Sea Region (BIPA), and Baltic Development Forum 8 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy Northern Cluster Alliance • A network of innovation structures with national operative responsibility for innovation in Germany, Poland, Lithuenia, Latvia, Estonia, Russia, Finland, Sweden, Norway, Iceland and Denmark • Focus on Innovation System Performance and Facilitation of Cluster Development Based on experiences so for, in August 2005 the Network and the Nordic Council of Ministers decided to set up a joint Pro Inno Net application. 9 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy BSR InnoNet (The Baltic Sea Region Pro Inno Net Project) Objectives: • To establish a joint conceptual framework for innovation policy formation, evaluation and operational activities across national borders in the Baltic Sea Region. • To establish one or more joint innovation programmes among partner countries in the Baltic Sea Region. • To be one of the core European learning cases on trans-national development of innovation serving the renewed Lisbon Agenda. Partners: Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, Norway, Poland, Sweden, The Nordic Council of Ministers and Nordic Innovation Centre Russia will participate in all work packages 10 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy BSR InnoNet The Triple-Helix concept Practitioners Policymakers Researchers 11 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy BSR InnoNet, Principles of design and cooperation The overall focus is competitiveness • • • • • Key is competition Build on national strongholds Identify excellence, best knowledge/models in innovation Employ cross-regional potentials in chains of valuecreation Key elements in cooperation: Framework setting, Measurement and Evaluation • Multi-dimensional relations, anchored in commercial opportunities and knowledge (science) 12 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy Policymakers’ network • Benchmarks of countries of the Baltic Sea Region in the field of innovation policy (Cluster Development). • Representatives from 11 national ministries from Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, Norway, Poland, Russia and Sweden. • Forum for policy learning. 13 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy ScanBalt was launched supported by Nordic Innovation Centre Life Science in 11 Countries of the Baltic Sea Region ScanBalt, a Network of Networks: – a not for profit association established initiated co-funded by the Nordic Innovation Center. 11 Regional Tripe Helix Networks Members of ScanBalt: BioTop Berlin-Brandenburg, Biomedico Forum, Biomobile, Bioforum Oulu, BioTeam South, BioTurku, BioCon Valley, Estonian Biotechnology Association, MedCoast Scandinavia, Medicon Valley, Norgenta + individual companies, universities, hospitals, tech transfer organisations and public authorities 14 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy ScanBalt Objectives: • Create corporate identity for ScanBalt BioRegion • Develop visibility for ScanBalt BioRegion and the members of ScanBalt • Attract financial, human and industrial resources • Coordinate joint efforts in research, education, technology transfer, innovation and economic development • Provide a platform to facilitate dialogue and collaboration between networks, academia, hospitals, public authorities, private companies and individuals • Create a platform to facilitate dialogue with supra-national institutions 15 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy ScanBalt Projects Mega regionaI identity and infrastructure Thematic projects • ScanBalt Campus (Interreg 111B) • ScanBalt Network of Networks (NIC) • ScanBalt Competence Region (EU FP6) • Boosting Baltic FP6 (EU FP6) • Educational mobility (NIC) • Economic Barriers for borderless Cooperation (NIC) • Biotech, one click away (NIC) • Communication in ScanBalt BioRegion 16 ScanBalt IP Knowledge Network (EU FP6) ScanBalt Marine Biotech (NorFA) • ScanBalt Clinical Research Network (NIC) ScanBalt AgroBiotech (NorFA) ScanBalt Stem Cell Network (NorFA) Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy Established Knowledge Networks in ScanBalt Campus (hub coordinator in brackets) • Molecular Diagnostics (University of Gdansk/Medical University of Gdansk) • Regenerative Medicine (University of Rostock and BioCon Valley, Germany) Entrepreneurship and Innovation • Environmental Biotechnology (Göteborg University, Sweden) ▪ Intellectual Property and Bioentrepreneurship • Informational Biology. (Åbo Akademi University, Finland) • Process Analytical Technology (PAT) (Linköping University, Sweden) (Chalmers University, Göteborg, Sweden) ▪ Baltic Entrepreneurship Training (Baltic Entrepreneurship Centre, Rostock, Germany) ▪ Education and training of leaders for the life science industry of the future (Copenhagen Business School, Denmark) 17 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy Big Fish – Small Fish Model Boston ScanBalt Singapore 18 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy An European Persepctive Reflections from the Baltic Sea Region • No single action or linear thinking will meet complexity of knowledge creation, diversity of regions or of commercialisation The key focus should not be on institution building but on facilitation of performance of excellence and relation building(processes) • How do we maintain an innovative approach? • How do we challenge dynamic interactions between commercial opportunities, academics and financial means? • How do we maintain focus on excellent innovate performance – not only technologically but in all dimensions/sectors of society? • How do we avoid one dimensional/linear/top-down concepts as they do not support facilitation and relation building (processes)? • How do we improve pluralism and multi-dimensional thinking – and still stay focused on excellent performance? • How do we employ cross-regional potentials in chains of valuecreation? A competitve performance model based on excellent knowledge and high quality process facilitation seems to offer interesting possibilities 19 Jens Erik Lund, VINNOVA , Regions for Economic Change, Innovation through Regional Policy