Sectoral and regional innovation systems

transcript

IP INNO-NATOUR 2010, SuceavaGerhard Weiss

New Income from New Products and Services

Innovation and entrepreneurship is THE engine behind

economic growth and job opportunities.

Modern economic policy becomes more and more

innovation policy (see „Lisbon Strategy“ of the EU)

Societal changes mean new challenges for the forestry

sector but also new opportunities!

New Challenges -

– new opportunities

– new opportunities …

o Growing demand for timber

o Renewables (biomass)

o New „Services“: Recreation Biodiversity Spirituality ........

Product Mix of Forest Holdings in CE

less than 10 ha

10 - 100 ha

100 - 500 ha

500 - 1000 ha

more than 1000 ha%

roundwood, industrial wood

bioenergy

other wood products

other products

services for other FH

services in recreation

nature protection services

renting

other services

Income of Forest Holdings in CE

0 20 40 60 80 100

roundw ood, industrialw ood

other w ood products

other products

services for other FH

services in recreationand tourism

services in natureprotection

renting

other services

less than 10 ha

10 - 100 ha

100 - 500 ha

500 - 1000 ha

more than 1000 ha

Innovations of Forest Holdings in CE

Other org.25%

Other not specified2%

Wood11% Non-wood

Co-operation4%

Outsourcing5%

Internal reorg.3%

Other techn.8%

Leasing4%

Recreation12%

Environmental3%

Protection0%

Machinery5%

Infrastruct.1%

Other services8%

B-2-B2%

products

services

technological

organisational

Sectoral Innovation System

„System of firms active in developing and making a sector‘s products and in generating and utilizing a sector‘s technologies“ (Breschi and Malerba 1997)

Particular combinations of opportunity and appropriability conditions

Particular degrees of cumulativeness of technological knowledge

Common knowledge base

Sectoral Innovation Systems

SIS comprise of actors of one specific sector and the majority of functions are fulfilled by these actors.

SIS in traditional, mature sectors support more process than product innovations and are strongly oriented at traditional business areas.

Example: Forestry SIS in Austria

Forestry SIS in Austria:Actor network on national level

12Ministry: Section Forestry

Ministry: Section rural development

University: forestry departments

Federal Forest Research I nstitution

Chamber / interest group(small forest holdings)

I nterest group: large forests

Foresters

Federal Govt. I nstitutions

12Ministry: Section Forestry

Ministry: Section rural development

University: forestry departments

Federal Forest Research I nstitution

Chamber / interest group(small forest holdings)

I nterest group: large forests

Foresters

Federal Govt. I nstitutions

SIS consists of a „traditional coalition“.

Is not in contact with NIS actors.

Lacks of intersectoral relations.

Forestry SIS in Austria:Actor network on national level

30Forestry

Woodworking industry

Agriculture

Energy sectorTourism

Water management

Other sectors

Actor network on provincial and district levels

Cross-sectoral interaction happens ad-hoc on the ground …

without strategic planning on higher administational levels.

Actor network on provincial and district levels

Regional Innovation System

„geographical distinctive, interlinked [institutions

and] organizations supporting innovation and

those conducting it, mainly firms“ (Cooke et al.

Spatial and social proximity are important

conditions for the realisation of innovation

Facilitate exchange of knowledge, create learning

processes

Regional Innovation Systems

RIS are mainly characterized by actors located in a specific region rather than by a specific sector. Cross-sectoral.

Majority of functions of the innovation system are fulfilled by regional actors. Suitable for „territorial“services of

forests.

The LEADER approach

EU funding programme: Community initiative (LEADER , LEADER

II, LEADER +).Mainstreaming in Rural Development

Programme since 2007-2013. National programmes and LEADER

regions for programming period: Region is submitted by LAG with a

regional development strategy.LAG manages and implements projects

in the frame of the strategy.

The LEADER approach

EU funding programme: Community initiative (LEADER , LEADER

II, LEADER +).Mainstreaming in Rural Development

Programme since 2007-2013. National programmes and LEADER

regions for programming period: Region is submitted by LAG with a

regional development strategy.LAG manages and implements projects

in the frame of the strategy.

The LEADER approach

Territorial: Regional development concept for a

specific deliniated region.

Partnership: Public and private actors in LAG.

Bottom-up: Regional development strategy and

projects are developed independently by the region.

The LEADER approach

Multi-sectoral: Projects should span different sectors.

Innovative: New ideas should specifically

encouraged and supported.

Cooperation and networking: Cooperation of the regions – European-

wide networking.

Regional development:AT example

Regional management agencies: Exist in most provinces in different

organisational forms. Have often been triggered by the

LEADER programme. LEADER management:

Independent; work for LAG.

Both provide information, coordination, and financing functions.

Case Study Analyses

3. Recreational Services: Forest Cottages - Almliesl

Enthusiasm alone doesn‘t make an innovation

Forest Cottages „Almliesl“

Content of the innovation: • Rents 12 forest cottages for tourists

in co-operation with a tourist agency • 1998: “Hüttenerlebnis Tirol”• 2001: Re-organisation - “Almliesl“

Carrier: • Österreichische Bundesforste AG

Austrian Federal Forest Company • Regional Forest Enterprise „Hopfgarten“

Company characterisation: • Österreichische Bundesforste AG (ÖBf AG)

Austrian Federal Forest Company area: 850 000 ha yields: 2 Mio m3/year staff: 1350 employees sales: 150 Mio Euro/year

• Regional Forest Enterprise „Hopfgarten“ area: 35 000 ha yields: 80 000 m3/year staff: 46 employees sales: 7 Mio Euro/year

150 000 euro returns from tourism = 2%

Chronology: 1998: Idea of a staff member “Hüttenerlebnis Tirol”

Enthusiastic realisation by regional enterprise manager

Renovation and improvement of 12 cottagesAdvertising activities (Adv. Agency/HMS)

1999/2000: crisislegal and financial problems

2001: Re-organisation• Re-evaluation by head office• New regional enterprise manager• Cooperation with tourist agency/brand „Almliesl“

Actors:

Regional forest enterprise: Project carrier

Company head office: Re-organisation

Staff: Idea, partly in favour/partly critical

Authorities: Mayor; land use authority

Neighbours: Watch/may complain

Advertising agency: Concept I “Hüttenerlebnis”

Cottage rent service (HMS): “Hüttenerlebnis”

Tourist agency (MTS): Brand “Almliesl”

Innovation: Idea: Rent complete house for tourists in rural landscape.

New to forest sector, not to rural area/agricultural sector; moderately developed market (e.g. “farm holidays”); well developed e.g. in Toskana/Italy

• No support by institutional system (not asked for)• No co-operation between regional/head office at start• No co-operation with tourist agency at start, later yes• Communication failures with staff• Decentral: idea and project management/

Central: re-organisation (calculation and concept)

Potential: Demand: growing demand for holiday apartments; enduring trend for nature/wellness holidaysSupply: cottages exist in forest companies

! need for renovation/improvements potential conflicts with hunting business

find consensus/locate at borders of hunting districts limited acceptance by foresters/forest owners

preference for families (supply meets demand)

Conclusions: Foresee the 4 C‘s!Concept: PM, business plan, financial calculation, legal assessmentCommunication:internal: * head office * staffexternal: * authorities * neighboursConsultation: use of in-house resources orprofessional consultants orextension services of the institutional systemCooperation:with professional partners (know-how and network)

Conclusions: Foresee the 4 C‘s!

A Case

A Case: The TANNO house

Problem

A Case: The TANNO house

Problem

First financing attempt: Rural Development Funds

Second financing attempt: Regional Development F.

(Leader+ Region „Kraftspendedörfer Joglland“)

A Case: The TANNO house Actors:

ARGE Tanno: regional forest associations, saw-mill,

furniture manufactorer, wellness facilities (sauna),

pre-fab company, architect (Gemini).

Chamber of agriculture (regional office).

proHolz (timber marketing) – finding an architect

Rural and regional development funds coordination

offices (ILE; EU regional mngtmt)

Designer (on contractual basis for furniture design)

A Case: The TANNO house Results:

A number of products (pre-fab, furniture, sauna)

Modern design (house, furniture)

Modern technology (low energy house)

Sales have started

Several awards

Follow-up project: TANNO + Gemini technology

(plus energy house)

A Case: The TANNO house Conclusions:

Considerable time investments are necessary

and frustrations in the starting phase have to

be calculated!

Cross-sectoral cooperation takes a lot of time

but pays the effort!

Look out for „non-sectoral“ subsidies!

Conclusions

Results from INNOFORCE studies prove the importance of institutional level interactions and public and private institutional actors: Even in the case of very simple innovations that are mainly developed by one single company there are already many actors to be considered (e.g. authorities), or business cooperations that are recommended! Even more important in complex cases!

Recommendations – Institutional Level

Develop a comprehensive innovation policy for the forestry sector

Provide Information on New Markets and Improve Information Flows

Facilitate Cross-sectoral Co-ordination

Provide Incentives that Systematically Foster Innovation

Thank you

www.efi-innoforce.org

Sectoral and regional innovation systems

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