Triple Helix – social innovation: is Croatia ready for it? Slavica Singer J.J. Strossmayer University in Osijek, Croatia UNESCO Chair in Entrepreneurhsip www.pspefos.hr singer_Open Days University,Brussels, October 2009 1 Are we ready to cope with… • Global issues that are not avoided by anyone: – – – – Poverty Climate change Energy Recession • Croatian local issues: – Low competitiveness, low innovativeness – Political and economic transitional processes – EU accession process – Regional development imbalances (uneven access to opportunities) • How? - Triple Helix model – PROBLEMS CANNOT BE SOLVED AT THE LEVEL AT WHICH THEY EMERGED – INNOVATION IS NEEDED www.pspefos.hr singer_Open Days University,Brussels, October 2009 2 Triple Helix – social innovation • From fragmented actions to cooperation • From bilateral to trilateral cooperation • From bureacratic structure to lateral, open innovation space singer_Open Days University,Brussels, October 2009 3 Triple Helix • Spiral model of innovation process - multiple relations in the capitalization of knowledge – HYBRIDIZATION (Etzkowitz, 2000): – Internal ENTREPRENEURIAL transformation of each of the actors • University • Business sector • Government – Mutual influence of each of the actors – Creation of a new level of trilateral networks for creating new ideas and forms of high-tech, hightouch development www.pspefos.hr singer_Open Days University,Brussels, October 2009 4 Triple Helix – where to start? • From any stakeholder – University, government, business sector • On any level – Subnational, national, international www.pspefos.hr singer_Open Days University,Brussels, October 2009 5 Why is Triple Helix so important for Croatia? • Short supply of everything (from educated people to roads) • Sharp asymmetry of having less and needing more than others – Triple Helix – needed practical tool for rational usage of very limited soft (knowledge & commitment) and hard resources (money) singer_Open Days University,Brussels, October 2009 6 How to survive in the globalized world – case of Croatia • Mega changes of the political and economic system (1990ies) • War (1991-1995), neither war nor peace (1995-1998) www.pspefos.hr singer_Open Days University,Brussels, October 2009 7 Case of Croatia, 20 years later • EU accession process • Transition from resource-driven to innovation-driven economy – Why it is not faster? • Low innovativeness – innovation performance EIS 2008: among the slowest catching-up countries • Low share of growing businesses • Low level of graduates • Lack of government support for innovative ventures • Lack of venture funding (business angels, venture capital) singer_Open Days University,Brussels, October 2009 8 Croatia Brussels Osijek www.pspefos.hr singer_Open Days University,Brussels, October 9 Eastern Croatia • Rich in natural resources (soil, water, wood, climate) • Higher unemployment (22% to 65%) • More necessity based entrepreneurs (motivational index for entrepreneurial acitivity: TEA Opportunity / TEA Necessity): 0.5 vs. 1.16 in Croatia, 3.2 in Istria • GDP/pc: 2,500 EUR vs. 8,000 EUR in Istria, or 19,000 EUR in Zagreb • Young people are leaving • Plus…. www.pspefos.hr singer_Open Days University,Brussels, October 2009 10 Mine suspected areas in Croatia singer_Open Days University,Brussels, October 2009 11 Vukovar 18 November 1991 www.pspefos.hr singer_Open Days University,Brussels, October 2009 12 Case of Osijek: our answers, fragmented • NOA, microcredit institution, 1996, USAID • Center for Entrepreneurship, 1997, Open Society Institute – Franchise Center, 2003 – Family Business Forum, 2003 • University based Master’s Degree Program in Entrepreneurship, 2000 • Business Incubator, 2002 • CEPOR, SME Policy Center, Zagreb, 2001 www.pspefos.hr singer_Open Days University,Brussels, October 2009 13 Eastern Croatia: strategic choices, 2005 Strengths • Education industry • Natural resources • Industrial and craft tradition • Airport 2 Weaknesses • Raw material providers • Financially weak local government • Politization instead of profesionalization 1 Opportunities • EU accession • Global trends Threats • Young people leaving singer_Open Days University,Brussels, October 2009 14 Case of Osijek • Where we are now? – Lagging behind • Where we want to be? – To become the region with the fastest growth rate of GDPpc in Croatia • How to achieve it? – Strategic alliance for development singer_Open Days University,Brussels, October 2009 15 Waiting for Godot, or… • To develop an enterprising society based on individual and institutional capacity for: • Innovativeness • Competitiveness • Cooperation www.pspefos.hr singer_Open Days University,Brussels, October 2009 16 Case of Osijek: looking for proactive answers • Strategic vision for the region 20052015 – Osijek Baranya County: The County where young people want to live – Municipality of Osijek: From industrial to intelligent city www.pspefos.hr singer_Open Days University,Brussels, October 2009 17 Case of Osijek– development scenarios • City without changes • City where young people want to live • Dow Jones index for evaluating a business: – Attracting / losing talented people singer_Open Days University,Brussels, October 2009 18 Scenario 1: county/city without change • Unemployment stays unchanged singer_Open Days University,Brussels, October 2009 19 Scenario 2: Intelligent city • Creating a technology-use culture • Networking of institutions • Vibrant entrepreneurial environment • Entrepreneurial local self-government singer_Open Days University,Brussels, October 2009 20 Recommendations 1 • P1: Broadband coverage of Osijek • P2: Investments in campus, Technology Park and International Center for Entrepreneurial studies • P3: Services related to intellectual property rights + venture fund in partnership with the banks, business community and university singer_Open Days University,Brussels, October 2009 21 Recommendations 2 • P4: Development of digital democracy • P5: International advisory board to the mayor • P6: Branding strategy based on the vision of transformation of Osijek from industrial to intelligent city singer_Open Days University,Brussels, October 2009 22 Risks • Inability to create positive energy (lack of leadership capacity for leading positive change) • Fear of changes • Not knowing how to implement strategy • Inability to network everyone responsible and everyone interested singer_Open Days University,Brussels, October 2009 23 Accountability test 1 • Learning region: is “value adding” process possible? • Yes, but willingness and knowledge are needed in participants of the Triple Helix process www.pspefos.hr singer_Open Days University,Brussels, October 2009 24 Accountability test 2 • For the University: – To link the roles of teaching, research and community service by internal mechanisms – To introduce reality tests • Employability of students • Ability to participate in solving local development problems • For the Local Government: – To cooperate with the university on all facets of the development process (skills enhancement, technological development and innovation, development of enterprising culture) • For the business sector: – Strengthen the innovaton capacity www.pspefos.hr singer_Open Days University,Brussels, October 2009 25 Triple Helix emerges if… – Public sector is decent (efficient, transparent, innovative) – University is autonomous and accountable, entrepreneurial – Business sector is competitive (productive, innovative, opportunity based) www.pspefos.hr singer_Open Days University,Brussels, October 2009 26 But, why Triple Helix is not there, yet? • Low innovation capacity of the business sector (low demand for knowledge) • Teaching-oriented universities • Governments overwhelmed with developmental issues, but without a strategic framework – Role of governments in transitional countries in supporting innovation climate was temporarily lost (Etzkowitz, 2006) – From too much government to idealistic “hands off” economy singer_Open Days University,Brussels, October 2009 27 What is missing? • Policy (strategic) framework • Trust among major stakeholders – Business sector does not trust universities – Universities are waiting to be approached • Interlinked mechanisms – E.g. technology parks, incubators… • Public awareness of the importance of knowledge-based entrepreneurship singer_Open Days University,Brussels, October 2009 28 Some conclusions • Transitional costs of the slow catching-up process are huge • Without Triple Helix there is NOT enough capacity to handle such scale and intensity of changes needed for catching-up • Subsidiarity principle - everyone is accountable for establishing innovative society based on hybridization of knowledge singer_Open Days University,Brussels, October 2009 29 Challenges • Schumpeterian challenge - too little destruction, too little creation – The worst scenario • Partnership for Growth and Jobs – The best scenario • Changes are possible, but political will, expert leadership and knowledge are needed singer_Open Days University,Brussels, October 2009 30 Can we… • Implement the principle of CREATIVE DESTRUCTION for opening new ways of organizing knowledge and pedagogy on the campus (Schumpeter) • Create entrepreneurial university culture based on the expectation that university should be a true MOBILIZER and EQUALIZER for empowering young people for opportunities in a society (Timmons) • Develop entrepreneurial university organisation for PURSUING OPPORTUNITIES regardless of current resource limitations (Stevenson) • Define the university mission as to equip young people with knowledge and skills for jobs of the 21st century: PROBLEM IDENTIFIERS, PROBLEM SOLVERS, IDEAS BROKERS (Reich) www.pspefos.hr singer_Open Days University,Brussels, October 2009 31 In order … • To move universities from ignoring and observing toward participating and leading positive change in their surroundings www.pspefos.hr singer_Open Days University,Brussels, October 2009 32 Can you imagine… • Universities that change themselves and the world around them • Responsible governments that serve the needs of their citizens • Business sector that is socially responsible singer_Open Days University,Brussels, October 2009 33 Two calls for action • On the institutional level: – Universities should be pushed, demanded… to become RELEVANT and ACCOUNTABLE – Free movement of students, faculty, researchers and administrators/leaders • On the policy, national and EU levels: – Triple Helix to be used for developing consistent policies, programs and instruments to link together national and international efforts in helping developing countries to catch-up singer_Open Days University,Brussels, October 2009 34 Contact Slavica Singer J.J. Strossmayer University in Osijek UNESCO Chair in Entrepreneurship Gajev trg 7 HR-31000 Osijek, Croatia Phone: +385 31 224 444 Fax: +385 31 224 438 E-mail: singer@efos.hr www.pspefos.hr www.pspefos.hr singer_Open Days University,Brussels, October 2009 35