KIT Knowledge, Innovation and Territory

Diapositiva 129-30 November 2011
Project Coordinator: Prof. Roberta Capello (Full Professor in Regional Economics)
Project Manager: Camilla Lenzi (Assistant Professor)
Prof. Roberto Camagni (Full Professor in Urban Economics)
Dr. Andrea Caragliu (Post-Doc Fellow)
Project Partner 2 (PP2): CRENOs, University of Cagliari, Italy:
Prof. Raffaele Paci (Full Professor of Applied Economics)
Proff. Emanuela Marrocu and Stefano Usai (Associate Professors of Econometrics and Economics)
Dr. Alessandra Colombelli (Post-Doc Fellow)
Dr. Marta Foddi (Research Assistant)
Project Partner 3 (PP3): AQR, University of Barcelona, Spain:
Prof. Rosina Moreno (Full Professor in Applied Economics)
Prof. Jordi Suriñach (Full Professor in Applied Economics)
Prof. Raúl Ramos (Associate Professor in Applied Economics)
Dr. Ernest Miguélez (Technical Researcher and PhD student)
The project team
Project Partner 5 (PP5): University of Economics in Bratislava, Slovakia:
Prof. Milan Buek (Full Professor in Regional Economics and Policy)
Dr. Miroslav Šipikal (Coordinator - Senior Lecturer)
Dr. Rudolf Pástor (Lecturer)
Prof. Phil Cooke (Full Research Professor in Regional Economic Development)
Dr. Selyf Morgan (Researcher)
Julie Porter (Support Coordinator)
diffusion processes of knowledge and innovation and
the socio-economic impacts of innovation and knowledge in space,
in order to identify the best innovation policies to foster a “smart Europe”.
Main ideas throughtout the project
R&D (and formal knowledge in general) does not necessarily equal innovation;
innovation does not necessarily equal regional growth.
these linkages are strongly mediated by local territorial assets.
Specific goals of the KIT project
B) Territorial elements explaining the spatial trends
A) Main spatial trends of innovation and knowledge
C) Impact of the different modes of innovation and knowledge on regional performance
D) Case studies
E) Policy implications for the development of a successful knowledge economy
B) Territorial elements explaining spatial trends
D) Case studies
Definition of the Knowledge Economy
Basic idea: knowledge-based economy has not got a unique interpretative paradigm.
Different approaches are necessary:
A1. Sectoral approach (presence in the region of science-based, high-technology sectors).
A2. Functional approach (presence in the region of functions like R&D, patents, human capital).
A3. Relation-based approach (presence in the region of interactive and collective learning processes).
Technologically Advanced Regions in EU
In 2007 technologically advanced regions, hosting both high-tech manufacturing industries and KIS, are the minority of regions. Moreover a relatively high number of regions are specialised in low-tech sectors.
Scientific regions
In 2007 scientific regions, hosting both human capital and research and activities functions, are limited. What is even more striking is the high number of regions with no specialisation in knowledge activities.
Knowledge networking regions
In 2007 there were quite a number of networked regions, both un-intentional (spatial) and intentional (non necessary spatial). Non-networked regions are especially poor and peripheral areas.
External sources of knowledge acquisitions are diffused all over Europe.
Knowledge Economy in Europe
The Knowledge Economy in Europe is a very fragmented picture.
What is striking from this map is the high number of regions in which the knowledge economy is still in its infancy.
Spatial trends of innovation in Europe
Innovation
Product innovation only
Process innovation only
Broadband penetration rate
R&D expenditures on GDP and innovation
R&D expenditure / GDP
Share of innovating firms
R&D expenditures on GDP (average 2006-07)
In 2007 33 regions had achieved 3% of R&D expenditures on GDP (11% of NUTS2, representing 16% of EU GDP) and concentrated in a few countries in the North of Europe. Moreover, a very high number of regions belong to the lowest class, with R&D on GDP lower than 0.5% (representing 5% of GDP).
Do we really take advantage from an innovation policy with a common aim for all countries/regions?
Patenting activity: comparison with China and India
… and USA
The spatial concentration of R&D in order to exploit economies of scale seems to be the model followed by emerging countries, re-launching in a decisive way the debate of the importance of the identification of an European Research Area.
Results ad questions from the descriptive analysis
Results:
Only a few regions have achieved the 3% of R&D/GDP, and most are below 0.5%.
Only a few regions show a pattern of innovation that goes from R&D to innovation.
Questions:
How do regions innovate without R&D?
Which are the territorial preconditions in order for regions to move from knowledge to innovation and to growth?
Specific goals
D) Case studies
Territorial patterns of innovation
A territorial pattern of innovation is a combination of context conditions and of specific modes of performing the different phases of the innovation process.
Context conditions:
Internal generation
External attraction
- from information to knowledge
- from knowledge to innovation
of knowledge and innovation
Knowledge output
Economic efficiency
REGION J
Education, human capital, accessibility, urban externalities
Collective learning
Basic, general purpose knowledge
applied technology fields
Knowledge output
Economic efficiency
REGION J
Collective learning
A creative application pattern
local knowledge
Knowledge output
Economic efficiency
REGION J
Product and process innovation
An imitative innovation pattern
area
Territorial conditions associated to each pattern
Regional preconditions for knowledge and innovation creation
Regional preconditions for external knowledge and innovation acquisition
Specific goals
D) Case studies
Selected questions to be answered
What is the return of R&D expenditure to knowledge production?
Do knowledge spillovers play a role in producing internal knowledge?
Does human capital participate to the production of new knowledge and innovation?
Does formal knowledge create innovation?
Does innovation impact on employment growth rates?
Has R&D an impact on GDP growth?
Does R&D generate increases in GDP growth rates?
Does innovation generate increases in GDP growth rates?
What is the return of R&D expenditure to knowledge production?
Map: Elasticity of knowledge production to R&D
The return of R&D expenditure to knowledge production increases by increasing R&D expenditure up to a certain level, then it starts decreasing.
What are the efficiency levels of knowledge inputs on knowledge production?
On average, the efficiency levels are higher in regions where the levels of knowledge are higher.
There are increasing returns on knowledge exploitation.
Do knowledge spillovers play a role in producing internal knowledge?
Map: Elasticity of knowledge production to inventors mobility
Map: Elasticity of knowledge production to research networks
Does human capital participate to the production of new knowledge?
Map: Elasticity of knowledge production to human capital
Increasing returns up to a certain threshold, then decreasing returns.
Does human capital participate to the production of new innovation?
Map: Elasticity of innovation to human capital
Innovation rate increases with the increase in human capital, which requires a critical mass to generate positive effects.
Does formal knowledge create innovation?
Patents
Innovation
0.05
Map: Elasticity of employment growth to product innovation
In general, product innovation is a labour saving activity but:
it creates jobs in regions where production functions are present
(new products need to be produced)
Does innovation impact on employment growth rates?
Map: Elasticity of employment growth to process innovation
In general, process innovation is a labour saving activity:
especially in regions where knowledge intensive services are present.
(i.e. in those sectors where process innovation is more adopted)
Does R&D expenditure generate GDP growth?
Map: Elasticity of GDP to R&D
A critical mass is required in order to achieve increasing returns (U-shaped form).
Does R&D expenditure generate increases in GDP growth rates?
R&D
Imitative innovation generates lower GDP growth rates than new innovation
Case studies
Different modes of innovation and knowledge creation and diffusion.
A comparison with other regional knowledge economies in more advanced and emerging countries
Output: typologies of territorial patterns of innovation
WP 2 3.1 and 2.5
A) Main spatial trends of innovation and knowledge.
(both endogenous knowledge creation and flows from outside)
Output: typologies of innovative regions
WP 2.1 and 2.2
C) Impact of the different modes of innovation and knowledge on regional performance.
Output: typologies of regional performance based on innovation and knowledge
WP 2.3.2
WP 2.4.1 and 2.4.2
WP 2.6
- Electronics (Pisa, Tuscany)
Automotive in Piedmont
Biotech in Oxford
ICT in Cambridge
ICT in Kosice
ICT in Bratislava
Wine in Tuscany area;
Digital media in Cardiff (Wales)
Food sector in West Wales
ICT Milan (Lombardy)
Territorial elements explain innovation patterns more than the sectoral elements.
Case studies have provided an in-depth analysis of the territorial elements behind patterns of innovation.
Case studies demonstrated the dynamics of regions from one pattern of innovation to another.
Inductive analysis witnesses that the territorial elements supporting the different innovation patterns are those conceptually identified.
B) Territorial elements explaining the spatial trends
D) Case studies
Key policy messages (1)
the knowledge-economy shows a very differentiated and fragmented spatial pattern in Europe;
for many European regions the knowledge economy is still in its infancy;
“scientific regions”, where most of R&D is located, innovate just slightly more than all other knowledge economy regions in Europe;
the way to a smart growth - calling for the achievement of 3% of the EU’s GDP (public and private) to be invested in R&D/innovation - is still a long way off;
the spatial concentration of R&D in order to exploit economies of scale seems to be the model followed by emerging countries, re-launching the debate of the importance of the identification of an European Research Area;
6. the pathways towards innovation and modernization are differentiated among regions according to local specificities;
R&D and higher education are special features of only some of the possible innovation paths;
R&D is translated into GDP growth in regions where a critical mass of R&D is located;
innovation has a labour saving nature, but in some areas the effects can be positive according to specific functions and sectors;
knowledge spillovers play a role in those areas where a critical mass of local knowledge is available;
innovation has an impact on GDP growth if a critical mass of innovation is present in the region;
11. a single overall innovation strategy is unlikely to provide the right stimuli and incentives in the different contexts;
12. in order to increase its regional innovation capacity, Europe needs normative interventions towards thematically/regionally focused innovation policies.
Towards a summary of policy suggestions
Territorial patterns of innovation Policy aspects
European research area
Knowledge diversification area
Smart specialization area
Creative imitation area
Raise awareness of local actors of the territorial model in which they live
Specific thematic areas on which to invest to support innovation
Policy actions: appropriate tools
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This map does notnecessarily reflect theopinion of the ESPONMonitoring Committee
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Regional level: NUTS2
Origin of data: EUROSTAT employment in high-tech sectors
© EuroGeographics Association for administrative boundaries
Technologically-advanced regions
Statistique et des Études Économiques data
© Project KIT, 2011
1 Non-interactive regions No No
2 Clustering regions Yes No
3 Globalizing regions No Yes
4 Networking regions Yes Yes
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Technologically-advanced regions
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Origin of data: Community Innovation Survey 2004
KIT estimates
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Switzerland: share of product innovation.
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KIT estimates
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Switzerland: share of process innovation.
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Origin of data: EUROSTAT ICT usage survey, 2009
Social dimension of innovation
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Origin of data: EUROSTAT ICT usage survey, 2009
Social dimension of innovation
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OECD green technologies
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KIT estimates
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Switzerland: share of product and process innovation.
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Smart specialization area = 0,476
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© KIT Project, 2011 0560280
© KIT Project, 2011 0560280
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European research area and Knowledge diversification area = 0,439
Smart specialization area = 0,459
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Knowledge diversification area = 0,20
Smart specialization area =0,21
European research area = 0,33
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at different levels of specialization in knowledge intensive services
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Creative imitation area = 0,118
Knowledge diversification area = 0,123
European research area = 0,145
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KIT Knowledge, Innovation and Territory

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