Smart Specialisation Platform Industrial Modernisation: What is in it for you? Jan Larosse Milan, 30 May 2016 AFIL General Assembly Competence Centre Smart & Sustainable Growth DG Regional and Urban Policy European Commission OVERVIEW • What is the 'Smart Specialisation Platform Industrial Modernisation'? • Background • • • • • Context analysis New European policy developments Role of the Vanguard Initiative Joint Demonstration Initiatives Thematic Smart Specialisation Platforms • Role of AFIL in SSP Industrial Modernisation • Leading by example (ESM) • Opportunities (implement your vision of intelligent factories) Smart Specialisation Platform for Industrial Modernisation • Joint Initiative of DG Regio and DG Grow, including other lead-DGs and lead-regions (launch: 1 June) • Supporting alignment of smart specialisation investments in European value chains (services by S3 Platform & Cosme Re-Confirm) • Facilitating 'entrepreneurial discovery' at European scale through interregional cooperation (inspired by Vanguard Initiative) BACKGROUND (1) Analysis • Persistent economic stagnation! • Macro-economic policy mix has limited impact • Monetary expension (cheap money): uncertainty is blocking investment • Budgetary restriction (debt reduction): need for sharp prioritisation + Micro-economic policies for entrepreneurship and SMEs (mostly at company level) • Need for fresh approach to boost the real economy! 'Meso'-economic: bottom-up! • Smart specialisation (place-based prioritisation + future perspectives) • Cluster-based (using knowledge spillovers) + Value chain approach (networked companies) • New mutual confidence? Invest in Factories of the Future! • Vanguard Initiative is showing the way BACKGROUND (2): New European policy development • European Investment Plan • EFSI (315 billion): thematic investment platforms (new themes) • European Investment Advisory Hub to assist project development • European Structural Investment Funds • Implementation of RIS3 as trigger for economic transformation (41 billion 'plus': at least 100 billion is concerned– community of practice) • Industrial Modernisation • Industry Policy Communication 2014: 'thematic smart specialisation platforms' • Integrated approach: cluster policies and smart specialisation come together • System innovation • Circular Economy / Energy transition / Mobility systems • Large-scale demonstrators • Value chain approach connects technology push (KETs) and market pull (challenges) BACKGROUND (3) Vanguard Initiative 'New Growth through Smart Specialisation' : a fresh approach • Origins • • • • Milan Declaration (Nov 2014) • • • • • 2007: Expert Group in DG RTD 'Entrepreneurial Discovery Process' 2013: Ex-ante conditionality in Regulation for structural funds 2013: New Industrial Policy in Flanders – invitation to 8 founding regions Bottom-up approach to industrial policy: role of regions (political leadership & leading by example) 2014: Pilot SSP ADMA / 2015: Five Pilot Actions / 2016: Match-Making Event Showing results! Innovative: Joint Demonstration Initiatives (networked demonstration effects) 2016: From Vanguard pilot actions to SSP Industrial Modernisation BACKGROUND (4) 'Joint Demonstration Initiative' • = Networked demonstrators • • • Using scale of European internal market • • • • • Share risks, share futures! Linking supply and demand. Accelerate learning; diffusion of good practices and (de facto) standards Upscaling fragmented efforts / coordination by complementarities Accelerating market uptake via diversity of testing environments New electronic platforms to connect supply and demand for production services/ Big data! IoT 3D-Printing production system: think global (diffusion of designs), act local (production close to user) Circular economy: upscaling of seperate pilot factories to system level (de/re-manufacturing) / closing-the-loop cluster An integrated approach to industrial modernisaton, clusters and smart specialisation, based on the aligment of regional authorities (RIS3), research organisations and business, in new European value chains in priortity areas. in: ches i n d late S3 re I R 0 30 es Ca. 1 -food ologi ring) n h c Te ro ctu • Ag Enabling anufa m d y • Ke . advance (e.g alth • H e gy t da r Agen vironmen l a • Ene t i n g / Di n/E • ICT innovatio ries st s • Eco tive indu gistic a • Cre port & Lo ion ns at • Tra ice innov v • S er 1. Set-up of a Thematic Smart Specialisation Platform on Industrial Modernisation and Investment Value chain Value chain Value chain Value chain Value chain Value chain Value chain Service innova'on Ressource efficiency KETs Joint ac)ons and investments Digital transforma'on Value chain Value chain Businesses Energy Value chain Regional authori'es Thema'c Smart Specialisa'on Pla3orms Agro-­‐ Digital Industrial (Health) (Circular Economy) Food Growth Modernisa)on … e.g. joint implementation of smart specialisation strategies, Innovation Deals, EFSI Investment Platforms, Important Projects of Common European Interest… • How: Platform to be co-developed by REGIO, GROW & JRC, together with and to support lead regions committed to work together. • What: Develop an innovation project pipeline focused on industrial modernisation areas, such as advanced manufacturing, digital transformation/industry 4.0, resource efficiency and service innovation. Thematic Smart Specialisation Platforms: How? Approach: Using smart specialisation as a coordinating mechanism to align efforts ü Based on RIS3 analysis – including "lagging regions" and other "un-usual suspects" ü Foster opportunities for regions/MS to team up around value-chains (Horizon2020, COSME and INTERREG Europe could support networking costs) ü Driven by motivated regions (e.g. in the Vanguard Initiative) ü Entrepreneurial discovery at European level: inspired by Vanguard Initiative ü Involving relevant clusters, intermediaries, thematically related EU level initiatives (such as the EIT-KICs, Joint Undertakings, ETPs, EIPs, ERA-Nets, etc.) ü Support the development of project investment pipe-lines ü Facilitate access to "real money" for resulting projects (incl. EFSI, cooperation with EIAH, private investors, coordinating ESIF investments, Horizon2020 …) 10 Watc Match h video on -makin g Even 24-25 t F ebru https:/ /www. ary 2016 youtub watch? e.com/ v=ixDA KGapa Uc Pilot actions for joint demonstration: - Advanced Manufacturing for energy applications - Efficient and sustainable manufacturing -High Performance Production with 3D Printing' -Bio-economy (non-food biomass) -Nano-enabled products See: http://www.s3vanguardinitiative.eu/pilotinitiatives/ What should be new in TSSPs compared to previous networks and platforms? • Strategic objec)ve: organising the 'discovery process' of opportuni'es for co-­‐investment in priority areas • Composi)on: not only immediate compe'tors, but poten'al coopera'on partners along value chains (under each thema'c smart specialisa'on pla3orm a limited number of value-­‐chain networks will be supported) • Governance: joint ini'a've of regions that commit and lead-­‐by-­‐example, and suppor'ng DGs; open to all that commit • Objec)ve: not only developing a specific technology/solu'on, or mutual learning, or joint strategy development, but a project pipeline leading to concrete, coordinated & joint investments 12 2. Set-up of European Strategic Cluster Partnerships for Smart Specialisation Investments • How: Bottom-up partnering through call for expression of interest, bringing together cluster organisations, technology centres and others • What: Generating inter-regional innovation projects, strengthening industry participation in the implementation of smart specialisation strategies, and gathering feed-back on obstacles for innovation. Value chain Value chain Value chain Value chain Value chain Value chain Value chain Service innova'on Ressource efficiency KETs Joint ac)ons and investments Digital transforma'on Value chain Value chain Businesses Value chain e.g. joint strategy formulation, implementation roadmaps, matchmaking, joint activities, towards demonstration projects, preparation of bankable proposals, acceleration support… Cluster organisa'ons European Strategic Cluster Partnerships for Smart Specialisa'on Investments … European Strategic Cluster Partnerships for Smart Specialisation Investments Preparatory Phase Partnership building Joint strategy formulation Implementation roadmap SYNERGIES between INSTRUMENTS! COSME Investment Phase Implementation Phase Matchmaking Joint activities, demonstration projects, pilots, preparation of bankable proposals INTERREG ESIF - RIS3 Horizon2020 Additional private/public financing Acceleration support Showcasing results EFSI Call for the expression of interest: Towards European Strategic Cluster Partnerships for Smart Specialisation Investments • • • • • • Objective: mobilisation to strengthen industry participation and the European dimension in the implementation of national and regional smart specialisation strategies. addressed to cluster organisations, other business network organisations, technology centres and science parks Focus on triggering a partnering process linked to the Thematic Platform on Industrial Modernisation (in relation to Key Enabling Technologies, ICT, service innovation and resource efficiency. This includes advanced manufacturing and other KETs, digital transformation/industry 4.0, digital platforms, big data analytics, space data services, resource efficiency, advanced material and disruptive business models and service concepts including in creative industries, textiles and tourism). finding partners with complementary competences, accessing value chains that cut across national, regional and sectoral boundaries as well as facilitate access to technology centres, including KETs infrastructures and digital innovation hubs. http://www.clustercollaboration.eu/news/call-expression-interest-towards-europeanstrategic-cluster-partnerships : The Call is open till end 2016. Role of AFIL – strategic cluster organisation • Connect the cluster to regional innovation system, including financing bodies; • Connect to other clusters, including international (European strategic Cluster Partnerships) and to interregional value chains (SSP Industrial Modernisation) • Co-develop further vision on integrated production system (= 'label' for projects that are part of the new production infrastructure) • Co-develop network of pilot facilities (= transition strategy) • Co-develop investment pipeline ( = Investment Platform to integrate business synergies and financing synergies) LEADING BY EXAMPLE! Agenda • 1-2 June: Launch of Thematic Platforms at high-level Smart Regions Conference with 600 stakeholders, including a parallel session and partnering on Industrial Modernisation • 7 October (Barcelona): Follow-up of launch; start of new partnerships • 10-13 October: European Week of Regions and Cities (Open days) with some 6 000 participants in over 100 workshops • 30 November - 2 December: Gathering of 250 cluster stakeholders at cluster matchmaking event and high-level European Cluster Conference Questions and Answers 18