From coal mining From coal mining to mind mining – to mind mining – towards a knowledge towards a knowledge driven economy in the driven economy in the Silesia VoivodshipSilesia Voivodship

Luk PalmenLuk Palmen

Project managerProject manager

Knowledge, Innovation, GrowthKnowledge, Innovation, Growth

Globalisation and regionalisation Regional Innovation Systems Clusters and networks Innovation culture

Creating a knowledge driven economy:

Securing access to “global resources” of knowledge, finance and distribution networks

By embedding SMEs in regional innovation systems that are able to generate considerable new „added value” for regional economies in a European and global context

Silesia VoivodshipSilesia Voivodship

Main characteristics of the Silesia Main characteristics of the Silesia VoivodeshipVoivodeship

Description Silesia Poland

Area (km2 ) 12,331 312,685

Population 31.XII.2002 r. 4.7 mln 38.2 mln

Population density (people/ km²) 384 122

Urban Development rate (%) 79.0 61.7

Demography: amount of people in preproduction age in production age in post production ageas a percentage of the total population

21.064.214.8

22.762.215.1

Main characteristics of the Silesia Main characteristics of the Silesia VoivodeshipVoivodeship

Description Silesia

Poland

GDP per capita (PLN)* 21,206.0

19,430.0

Amount of people employed ** 1.5 mln

12.5 mln

Structure of working population (%) agriculture, fishery industry and construction market services non-market services

4.838.739.017.5

17.328.533.520.7

Employment rate 41.9 43.7

Employment in the private sector (%) 63.3 71.3

Employment in SMEs (%)** 50.7 67.1

Unemployment rate (registered) (%) 16.5 18.0*/ data for 2001 **/ situation on 31.XII.2002

Main characteristics of the Silesia Main characteristics of the Silesia VoivodeshipVoivodeship

Description Silesia Poland

Amount of economic units on 1.000 inhabitants (units)

88.3 90.7

Amount of companies with foreign capital on 10.000 inhabitants (unit)

8.2 12.3

Amount of SMEs on 10.000 inhabitants (unit)** 853 872

Production sold on 1 inhabitant in PLN przemysłu budowlano-montażowa

18,1901,704

13,3741,750

Amount of units in R&D sector 97 838

Employment in R&D sector on 1,000 people employed

3,7 4,5

Expenditure on R&D: per 1 inhabitant (PLN), as relation GERD/GDP (%)*

730,39

1200,65

IPR, amount of: New patent applications Patents registered and qualified

356129

2313834

*/ data for 2001 **/ situation on 31.XII.2002

Main characteristics of the Silesia Main characteristics of the Silesia VoivodeshipVoivodeship

SME innovativeness in the Silesia Voivodeship

Very innovativecompanies

Medium innovative companies

Low innovative companies

Modern, open for innovation and activeInnovative solutions are new on the domestic and international marketSupra-local nature of sales structure (domestic and foreign markets dominate)High dynamics of changes in employment (rise)

They have limited and less stable contacts with a small group of partnersLack of a determined development strategyInnovation is new only for the company itself, on the local and domestic marketMedium dynamics of changes in employment (rise and fall)

Focus on survivingLow interest in innovationInnovative solutions are new only to the company itselfLocal nature of sales structure (local sale markets dominate)Stagnation in employment

Approx. 10% SME Approx. 60% SME Approx. 30% SME

Main characteristics of the Silesia Main characteristics of the Silesia VoivodeshipVoivodeship

Great share of SMEs in 10 sectors of industrial processing:

Production of chemicals, chemical articles, and synthetics, Production of machines and equipment Production of machines and electric apparatus Production of mechanic vehicles, trailers and semi-trailers Production of gum and plastic articles Production of non-metal goods Production of metal finished goods Production of food and beverages Textile industry Production of cast and steel and iron alloys

Main characteristics of the Silesia Main characteristics of the Silesia VoivodeshipVoivodeship

Technologies of industrial automation and material engineering developed by the regional R&D sector are successfully integratedin traditional industry.

3 Centres for Advanced Technologies and several centres of excellence are currently developing integrated research teams with strong links to industry in the fields of

Biotechnology including bioengineering and health technologies. Technologies for energy sector including technologies of energy

production from renewable sources, combustion and thermal recycling of waste as well as energy saving.

Technology for environment protection including biogeochemical engineering and waste management.

Information and telecommunication technology. Production and processing of materials including advanced

materials.

Main challenges in the Silesia Main challenges in the Silesia VoivodeshipVoivodeship

Strengths Weaknesses

• High GDP per capita in comparison to the rest of Poland

• Large regional consumer market

• Large amount of foreign investments allocated in the region

• Diversified economy• Large amount of supplier

companies in Europe’s main industrial sectors

• Growing importance of service sector in creating added value in regional economy

• Large amount of R&D institutes and human resources in the R&D sector

• Large amount of business support organisations

• Technically high qualified workforce on the labour market

• Dense technical infrastructure (transport, telecommunication, etc)

• Low level of yearly GDP growth• High amount of micro-

companies generating only a small amount of added value in regional economy

• Most of small companies work on the local markets and are not prepared for international business activities

• Large amount of small companies that are dependent on large companies being restructured

• Low level of export activities in SMEs

• Low percentage of R&D investments in relation to regional GDP

• Negative image of the region abroad

Regional Innovation Strategy of Regional Innovation Strategy of the Silesia Voivodeship 2003-the Silesia Voivodeship 2003-20132013

Mission: Imagination creates Reality

Vision:

Regional Innovation Strategy will support development of a constructive climate for innovation in the Silesia Voivodeship in a way that creativity and synergy through co-operation in the process of elaborating, improving and implementing innovative solutions will contribute to a raiseof the region’s innovative level strengthening the competitiveness of the region’s economy in comparison to other regions in the European Union

Regional Innovation Strategy of Regional Innovation Strategy of the Silesia Voivodeship 2003-the Silesia Voivodeship 2003-20132013Strategic fields and aimsStrategic fields and aims

Increasing the percentage of innovative SMEs:– Improving the business climate– Supporting excellence in SMEs

Accelerating and improving the use of the R&D potential:

– Supporting excellence in the R&D sector– Providing into the R&D sector those technologies that

are necessary to guarantee competitiveness of regional economy

Developing a regional innovation system based on trust, creativity and excellence:

– Developing partnerships for innovation– Supporting development of new innovative products

and companies

Initiatives Initiatives - - InformationInformationSituation: Shorter product and technology life cycles Information is key for decisions

Challenge: Regional economic intelligence systems Improved access to information tailored to needs of

specific SME groups and even on individual level

Key-initiative: Regional Information System - Consortium of business

support and R&D institutions INNOBSERVATOR SILESIA

Initiatives Initiatives - - Financing Financing innovationinnovationSituation: On average innovation activities for 70% financed with

own resources SMEs face difficulties in financing innovation related

activities: purchase of new machines (production lines), certification, specialised services, use of specialised equipment and machines of R&D institutions

Challenge: Measures under Structural Funds – absorption capacity

in SMEs…

Key-initiative: Support in preparing project proposals under Structural

Funds Regional and local loan funds Seed Capital and Start-up Fund Business Angels Network

Initiatives Initiatives - - Advice and trainingAdvice and trainingSituation: Lack of integrated quality training and advisory offer in

the field of strategic management and knowledge management

Lack of co-ordinated offer in the field of certified systems of quality, environment, labour safety management; certificates of conformity for goods, materials, machines, control and measurement apparatus

Challenge:  Tailored advice and training offers

of business support institutions to SME needs Monitor SME needs

Key-initiative: Silesia Consortium of Business Support Organisations Regional investment program in IT – training online

Initiatives Initiatives - - Industrial designIndustrial design

Situation: Ever-changing customer demands, customised products,

identity, culture, experience Industrial design and product developments are

indispensable components for developing innovative products and services by SMEs that try to specialise

Challenge: Regional networks focussing on integrated offers in the

field of industrial design and product development

Key-initiative: Silesia Design Network

Initiatives Initiatives - - Clusters and Clusters and networksnetworksSituation: Low social capital in CEEC prevents from enjoying full

benefits of existing sectoral growth potentials

First initiatives of clusters, but still bilateral contacts remain most important way of communication

Challenge: Clusters and networks to promote common activity in:

research, industrial design and product development, market research and human resources development

Creation of sub-contractors networks, FDI Technology clusters as part of restructuring R&D sector

Key-initiative: Pilot initiative on cluster development programme Network for Technology Commercialisation

Initiatives Initiatives - - R&D sectorR&D sectorSituation: R&D activities went through diversification process since

1990, however still lack of marketing attitude in R&D institutions

Lack of integrated research and complex services Technology life cycle ever shorter, increased risk of

technology success

Challenge: Integrated R&D centres focussing

on strategic economic issues gatheringscientists and companies around specific research subjects in clusters

International networking

Key-initiative: 3 Centres of Advanced Technologies Centres of Excellence Technology Platforms

CAT: creating learning CAT: creating learning networksnetworks

Europejskie platformy technologiczne

Platformy Technologiczne z innymi CZT i jednostkami naukowymi

w s p ó ł p r a c a

MŚP Przedsiębiorstwa

Jednostki samorządowe

Jednostki naukowe

Centrum Transferu Technologii

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Stowarzyszenia branżowe

Centrum Szkolenia

Inkubatory przedsiębiorczości

Centra Innowacji Technologicznej

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Jednostki wspomagające finansowanie

Parki technologiczne i przemysłowe

Initiatives Initiatives - - Intellectual Property Intellectual Property RightsRightsSituation: Positive changes in legal framework, but still long

procedures Many entrepreneurs and inventors resign from applying

for trademark protection, patterns or inventions because of high costs connected to procedures

IPR is seen as a cost not as an investment

Challenge: Streamline promotion, information and advisory

activities in the area of intellectual property rights Patent Funds to speed up commercialisation

of state-of-the-art technologies

Key-initiative: Developing a new model for IPR-management Technologies as a value creator – Patent Fund

Initiatives Initiatives - - Technology Technology transfertransfer

Situation: Technology transfer through co-operation among

companies Technology transfer through mediation between

economic and scientific environment (technology push and technology pull)

Technology transfer through exchange of personnel between R&D institutions and companies

Challenge: Networks of centres of innovation

support and technology transfer Technology parks to facilitate

specialised technology transfer to high-tech SMEs

Key-initiative: IRC – KSI – Regional TT network Network for Effective Technology Commercialisation

Initiatives Initiatives - - Innovative start-Innovative start-upsupsSituation: Establishing innovative start-ups based on research

outcomes of R&D sector is still not common in CEEC “Academic grey market” Lack of financial instruments (Seedcorn, Seed, start-up,

early growth) Technologies often not registered and misperception

between technological value from the part of the inventor and actual market value

Challenge: Integrated regional service offer for innovative start-ups Innovation culture in education and R&D institutions

Key-initiative: Network for Technology Commercialisation Entrepreneurship promotion

in institutions of higher education

Network for Effective Technology Commercialisation

Seed Capital, Patent Fund, Business Angels

Universities and R&D Institutes

Incubators and Technology Parks

Centres of Advanced TechnologiesCentres of ExcellenceTechnology Platforms

Technology based Start-ups

Technology clusters

Innovative Business Clusters

Regional Technology Transfer Network

Entrepreneurship Promotion Programme at Universities

Regional Consortium of Business Support Organisations

Silesia Design Network

Regional and Local Loan Funds

Large companies

Micro and SMEs

Special Economic ZoneIndustrial sites

Regional governmentLocal government

Students, scientists, undergraduates, employees

ConclusionsConclusions

Regional Innovation Strategy = consensus Silesia Declaration on Developing

a Creative Innovative Region = culture Regional Innovation System = value creation Knowledge Driven economy =

competitiveness

Structural Funds 2004 – 2006 = creating

Structural Funds 2007 – 2013 = implementing

Networking people = Giving innovation a face

Enabling people to experience success

Thank you for Thank you for your attentionyour attention

Luk Palmen