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Regional Economy in Theory and Practice

SCIENTIFIC COUNCIL

Daniel Baier (Brandenburgische Technische Universität Cottbus, Germany)Andrzej Bąk (Wrocław University of Economics, Poland)Małgorzata Teresa Domiter (Wrocław University of Economics, Poland)Małgorzata Gableta (Wrocław University of Economics, Poland)Danuta Kisperska-Moroń (University of Economics in Katowice, Poland)Stanisław Krawczyk (Wrocław University of Economics, Poland)Adam Kubów (Wrocław University of Economics, Poland)Radim Lenort (VSB – Technical University of Ostrava, Czech Republic)Alla Melnyk (Ternopil National Economic University, Ukraina)Jan Skalik (Wrocław University of Economics, Poland)Maciej Szymczak (Poznan University of Economics, Poland)Stanisław Urban (Wrocław University of Economics, Poland)

EDITORIAL COMMITTEE

Andrzej Bąk – Editor-in-Chief Andrzej BodakArtur RotAgnieszka SkowrońskaMagdalena Rojek-Nowosielska – [email protected] +48 71 36 80 221

Regional Economy in Theory and Practice

PRACE NAUKOWE Uniwersytetu Ekonomicznego we WrocławiuRESEARCH PAPERS of Wrocław University of Economics

286

edited by

Elżbieta SobczakAndrzej Raszkowski

Publishing House of Wrocław University of EconomicsWrocław 2013

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ISSN 1899-3192 ISBN 978-83-7695-345-8

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Contents

Introduction ..................................................................................................... 9

Part 1. Theoretical aspects of regional economy

Ryszard Brol: Innovation vs. regional development ..................................... 13 Ewa Glińska, Anna Kononiuk: The concept of regional strategy of smart

specialization ........................................................................................... 27 Hanna Kruk: Resilience, competitiveness and sustainable development of

the region – similarities and differences ................................................. 35 Andrzej Sztando: Regional innovation strategy implementation – system

model covering the results of the analysis of the Polish experiences ..... 43 Andrzej Raszkowski: Creativity in the context of regional development –

selected issues ......................................................................................... 52 Yuliya Melnyk: Regional peculiarities of the global art market .................... 62 Elżbieta Załoga, Dariusz Milewski: The impact of transport on regional

development ............................................................................................ 71 Alina Kulczyk-Dynowska: Diversified spatial neighbourhood – a metropolis and

a national park ......................................................................................... 79

Part 2. The results of European regional space research and analyses

Małgorzata Markowska, Danuta Strahl: Polish regions against the background of European regional space with regard to smart growth – aggregate perspective .............................................................................. 89

Beata Bal-Domańska: Does smart growth enhance economic cohesion? An analysis for the EU regions of new and old accession countries ....... 100

Elżbieta Sobczak: Typology of European regions vs. effects of workforce changes by the level of research and development activities intensity ... 111

Małgorzata Karczewska: Gross domestic expenditures on research and development in GDP of European Union countries – changes in trends ...... 121

Marzena Grzesiak, Anita Richert-Kaźmierska: Educational engagement of the elderly – the experiences of selected Baltic Sea Region countries ........ 133

Ewa Coll: The classification of EU and Eastern Partnership countries regarding economic development level – a dynamic approach .............. 144

Anetta Waśniewska: The potential of the population in the Baltic Sea Region in the years 2001–2011 ............................................................... 157

Alla Melnyk: Modernization of regional structural policy mechanisms in Ukraine in the process of its EU integration ........................................... 169

6 Contents

Part 3. Selected problems of polish regions functioning and development

Dariusz Głuszczuk: Barriers to innovation activities in industrial enterprises by Polish regions in 2004–2006 and 2008–2010 .................................... 181

Piotr Hajduga: Special economic zones as stimuli to regional development during a crisis .......................................................................................... 191

Adam Przybyłowski: Sustainable transport development prerequisites in selected Polish regions ............................................................................ 199

Mariusz E. Sokołowicz: The impact of transnational corporations’ activity on regional human capital. Case study of the Łódź metropolitan area ... 210

Anna Jasińska-Biliczak: Interregional cooperation as the stimulation of proinnovation actions – the casual analysis ............................................ 222

Franciszek Adamczuk: Cross-border cooperation of Lower Silesia and Saxony – current results and prospects ................................................... 230

Agnieszka Barczak: Managing the production process of a group of agricultural farms of the Pomorze and Mazury Region and their economic development ............................................................................ 240

Tomasz Dorożyński, Wojciech Urbaniak: Experiences of county employment agencies in the use of EU structural funds to promote employment. The case of the Łódź voivodeship ..................................... 249

Małgorzata Golińska-Pieszyńska: Contemporary innovative practices in a regional context of the Łódź region ........................................................ 260

Streszczenia

Część 1. Teoretyczne aspekty gospodarki regionalnej

Ryszard Brol: Innowacyjność a rozwój regionalny ....................................... 26 Ewa Glińska, Anna Kononiuk: Koncepcja regionalnej strategii inteligent-

nej specjalizacji ....................................................................................... 34 Hanna Kruk: Rezyliencja, konkurencyjność i rozwój zrównoważony regio-

nów – podobieństwa i różnice ................................................................. 42 Andrzej Sztando: Wdrażanie regionalnej strategii innowacji – model sys-

temu stanowiący rezultat analizy polskich doświadczeń ........................ 51 Andrzej Raszkowski: Kreatywność w kontekście rozwoju regionalnego –

wybrane zagadnienia ............................................................................... 61 Yuliya Melnyk: Regionalna specyfika globalnego rynku sztuki ................... 70 Elżbieta Załoga, Dariusz Milewski: Wpływ transport na rozwój regionalny .... 78 Alina Kulczyk-Dynowska: Zróżnicowane sąsiedztwo w przestrzeni – me-

tropolie i park narodowy ......................................................................... 86

Contents 7

Część 2. Rezultaty badań i analiz nad europejską przestrzenią regionalną

Małgorzata Markowska, Danuta Strahl: Polskie regiony na tle europej-skiej przestrzeni regionalnej w kontekście inteligentnego rozwoju – ujęcie agregatowe .................................................................................... 99

Beata Bal-Domańska: Czy inteligentny rozwój sprzyja spójności ekono-micznej? Analiza dla regionów państw Unii Europejskiej nowego i sta-rego rozszerzenia ..................................................................................... 110

Elżbieta Sobczak: Typologia regionów europejskich a efekty zmian liczby pracujących według poziomu intensywności prac badawczo-rozwojowych 120

Małgorzata Karczewska: Udział nakładów na badania i rozwój w PKB krajów Unii Europejskiej – tendencje zmian .......................................... 132

Marzena Grzesiak, Anita Richert-Kaźmierska: Zaangażowanie osób star-szych w edukację – doświadczenia wybranych państw regionu Morza Bałtyckiego ............................................................................................. 143

Ewa Coll: Klasyfikacja państw UE i krajów Partnerstwa Wschodniego ze względu na poziom rozwoju gospodarczego – ujęcie dynamiczne ......... 156

Anetta Waśniewska: Potencjał ludności regionu Morza Bałtyckiego w la-tach 2001-2011 ........................................................................................ 168

Alla Melnyk: Modernizacja mechanizmów regionalnej polityki strukturalnej Ukrainy w procesie integracji z Unią Europejską ................................... 177

Część 3. Wybrane problem funkcjonowania i rozwoju polskich regionów

Dariusz Głuszczuk: Przeszkody działalności innowacyjnej przedsiębiorstw przemysłowych według regionów Polski w latach 2004–2006 i 2008–2010 . 189

Piotr Hajduga: Specjalne Strefy Ekonomiczne jako stymulator rozwoju re-gionalnego w dobie kryzysu .................................................................... 198

Adam Przybyłowski: Przesłanki zrównoważonego rozwoju transportu w wybranych polskich regionach ................................................................ 209

Mariusz E. Sokołowicz: Wpływ korporacji transnarodowych na rozwój kapita-łu ludzkiego w regionie. Przykład łódzkiego obszaru metropolitalnego ....... 221

Anna Jasińska-Biliczak: Współpraca międzyregionalna stymulantem dzia-łań proinnowacyjnych – przykład województwa opolskiego .................. 229

Franciszek Adamczuk: Współpraca transgraniczna Dolnego Śląska i Sak-sonii – aktualne wyniki i perspektywy .................................................... 239

Agnieszka Barczak: Zarządzanie procesem produkcji grupy gospodarstw rolnych regionu Pomorze i Mazury z uwzględnieniem poziomu rozwo-ju gospodarczego ..................................................................................... 248

8 Contents Tomasz Dorożyński, Wojciech Urbaniak: Doświadczenia powiatowych

urzędów pracy w zakresie wykorzystywania funduszy strukturalnych UE w celu promocji zatrudnienia. Przykład województwa łódzkiego .... 259

Małgorzata Golińska-Pieszyńska: Współczesne praktyki innowacyjne w kontekście regionalnym w oparciu o region łódzki ................................ 267

Introduction

The transformations taking place in today’s economy trigger the need for a new outlook at different functioning aspects of European countries and regions. The future, undoubtedly, holds significant changes which can exert an impact on the regional economy. Macroeconomic environment features extensive changeability, which forces regions to adjust their development strategies to the increasingly competitive global market. The European Union specifies in the Europe 2020 development strategy ambitious goals and assumptions indicating opportunities for smart, sustainable and facilitating social cohesion growth. These problems, constituting challenges for experts in the domain of regional economy, were widely discussed during the 20th Scientific Conference entitled: “Local and regional economy in theory and practice”, which was held in Mysłakowice on 17–18 September 2012. The conference is cyclically organized by the Department of Regional Economy of the Wrocław University of Economics headed by Professor Danuta Strahl. It was supported by the “Kuźnia Kadr 2” project implemented by the Wrocław University of Economics and co-financed by the European Union within the framework of the Human Capital Operational Programme.

The conference, apart from valuable papers presentation sessions, constituted a forum for exchanging opinions by scientists and economic practice representatives. We had the pleasure and honour to host research workers from many national and foreign universities, as well as practitioners representing local authorities. The conference’s core objective was to present achievements and exchange experiences in local and regional economy theory and practice, as well as to identify perspectives for further research.

The conference subject matter covered a broad spectrum of theoretical and application issues referring to the local and regional economy, with particular emphasis on the diffusion of solutions applied in science for the benefit of local and regional development, problems of competitiveness and regional innovation, local government finance, spatial economy, structural transformations and territorial marketing.

The conference papers were published in six volumes. This publication presents research and reflections referring to numerous regional economy problems divided into three thematic areas: theoretical aspects of regional economy, the results of research and analyses referring to the space of the European countries and regions, as well as selected problems related to Polish regions’ functioning and development.

We would like to express our gratitude to the conference participants for their extensive input in the following publication. We do hope that it will be well received by its readers and allow them to become acquainted with current regional economy issues, dilemmas and research results, as well as encourage them to participate in subsequent editions of the conference.

Elżbieta Sobczak, Andrzej Raszkowski

Part 1

Theoretical aspects of regional economy

PRACE NAUKOWE UNIWERSYTETU EKONOMICZNEGO WE WROCŁAWIU RESEARCH PAPERS OF WROCŁAW UNIVERSITY OF ECONOMICS nr 286 • 2013

Regional Economy in Theory and Practice ISSN 1899-3192

Ryszard Brol Wrocław University of Economics

INNOVATION VS. REGIONAL DEVELOPMENT

Summary: The innovative cycle triad invention − innovation – diffusion, can be identified with reference to economic subjects and sectors, and territorial systems in global, national, regional and local dimensions. The article defines innovation as well as the innovativeness of a region as a category of economics. The author has specified relations between regional development and innovativeness of the regional economy. He has also identified regional innovativeness stimulation instruments within the confines of regional policy created by the European Union and regional self-government units.

Keywords: innovativeness, regional development, region.

1. Introduction

The objective of the this paper is to transfer the category of innovation to the level of local and regional territorial units. In order to carry this out, it was necessary to specify the concept of invention and innovation as economic categories, to discuss the relationship between regional development and regional economy innovation and also to identify innovation stimulating instruments within the framework of regional policy.

Innovation represents, in its core concept, an economic category. J.A. Schumpeter introduced the term of invention and innovation to the theory of economics [Schumpeter 1960], having defined invention as the application and dissemination of new solutions in practice, distinguished three subsequent stages comprising an innovation cycle: invention – innovation – diffusion. This definition differentiates an invention from an innovation, with the latter understood as the process of a new product, procedure or an operating pattern implementation and practical application – if they meet novelty qualities. Innovation diffusion represents the stage which closes an innovation cycle within sectors of the economy and also the inter-sector and spatial diffusion by means of their adequate adaptation. Schumpeter’s triad concept relates the category of innovation to transformations underlying the process of commercialisation. This means that we come across innovation when

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transformations result in products or processes presenting an economic value. Therefore, it is possible to put forward a market concept of the innovation process which defines innovation as the capacity presented by entities to participate in Schumpeter’s triad cycle. An innovator participates in this process, taking on the role of an inventor or an entity which is capable of absorbing innovation – innovation beneficiary. In such a perspective, innovation should be observed as a tool of entrepreneurship. It may appear as part of a project, product marketing technique, customer oriented service, management methods or its organisation; therefore, while discussing innovation we do not refer to a technical category only, but also to economic, social and special ones.

The suggested definition of innovation may constitute the background for an innovation cycle triad interpretation in the aspect of relations occurring between regional innovation and regional development.

2. Relations between regional innovation and regional development

Relations between innovation and competition are analysed in the aspect of global-isation processes and economic integration, they require a territorial approach cov-ering global, national, regional and local determinants of an innovation triad, i.e. invention – innovation – diffusion. Innovation represents the greatest challenge of the 21st century. It defines the competitive position of not only economic entities and sectors, but also groups of integrating countries, particular states, regions, local territorial units (communes), as well as – formally undelimited – regional and local functional and spatial systems, e.g. clusters. Such an approach is presented by M. Porter, according to whom the competitive advantage of particular territories is ac-complished through innovation oriented activities [Porter 2001].

In professional literature, different definitions of regional development are presented and prepared as the result of conducted research work, as well as the application of procedures referring to the regional economy. These definitions – depending on the research objective – differ in the scope of the, so called, regional development fields as well as methods for identifying the major driving forces of regional development and also the explanation of their mechanism influence on particular regional development fields. The scope of such fields, and the criteria for development factors identification, depend on the context to which due research and application procedures refer. Most frequently this context is defined by issues present within the scope of such problems as: economic policy, systemic transformation, intra and inter-regional policy, strategic planning and development programming in regions, as well as European integration and globalisation processes.

This study discusses regional development problems in the context of regional innovation – understood as the capacity of regional economy entities to participate

Innovation vs. regional development 15 in the innovation cycle: invention – innovation – diffusion. It refers to both the ability to participate in this cycle by playing the role of an innovation creator – inventor, and as an entity capable of innovation absorption – absorbent. The change introduced by an inventor becomes an innovation if it meets certain important qualities determining that the changes made can be referred to as innovation. In particular, innovation results from an alteration introduced purposefully and permanently – which either modifies or introduces new components to both the methods and effects of the creating entity functioning, as well as entities involved in the application of these innovations. Innovation – understood in this way – may appear e.g. in relation to a project, product, organizational structure; in all sorts of services, both commercial and publicly available social ones; in management methods and marketing strategies; in spatial order construction, as well as in the exploitation and protection of natural resources featuring a given ecosystem. The concept of invention and innovation may be placed, similarly to the category of regional development, in a broad spectrum of transformations occurring in the spheres of economy, space and regional community. In order to define relations between regional innovation and regional development, it is required to identify both endogenous and exogenous factors, which are responsible for creating and stimulating regional development and innovation in the spheres listed above, referred to as regional development fields. Within the scope of each presented sphere it is possible to identify reasons, factors, manifestations and effects presenting qualities common for both regional development and regional innovation. Each regional development field applies (characteristic for different scientific disciplines) methods and tools useful in the identification and measurement of the advancement of such changes in the course of innovation and regional development processes.

The broad spectrum of phenomena and processes responsible for social, economic and spatial issues, which add up into the form of regional development category, make an impact on regional development resulting from diversified activities performed by various entities – companies, institutions, public authorities, regional residents – as well as mutual relations and interactions occurring between these entities. On the one hand, the processes identified as regional development constitute the effect of microeconomic attitudes presented by businesses and investors operating in a market economy, on the other hand, however, they result from purposeful, planned, strategic activities carried out by the entities responsible for regional and local policy. In a situation when the results of regional economy entities’ market behaviour and the implemented goals of regional economy are not contradictory but complementary to each other, the conditions for regional development, understood as the process of positive, regional quantitative growth transformations and the qualitative advancement, are created. A similar relation may be identified with reference to regional innovation perceived as the capacity

16 Ryszard Brol

presented by regional entities – functioning in the sphere of the economy, society and regional ecosystem – in order to create and (or) absorb inventions. Regional innovation understood in the above way, may therefore result from both regional entities’ market behaviour and the effect of policy, followed by self-government entities equipped with competencies and the means for exerting an influence on regional space, society and economy. Therefore, one may accept that regional progress related to innovation, and also regional development, represent complementary and mutually stimulating processes. A higher level of regional growth results in the greater wealth of regional economy entities and therefore increases the economic – and indirectly also organizational and technological – capacity of such entities’ involvement in the triad invention – innovation – diffusion. This refers to regional business sector’s entities and self-government economy entities, as well as local and regional public authority units – responsible for local and regional policy construction. At the same time, the higher level of regional entities capacity for creating and absorbing innovation represents the crucial factor influencing endogenous (economic, social and spatial) regional development potentials. This factor also stimulates the ability of such potential to take advantage of exogenous opportunities for regional development resulting from, among others, both globalization and European integration processes.

The dynamics of regional development constitutes the derivative of endogenous and exogenous factors’ influence, as well as the determinants defining endogenous capacity ingrained in a particular region for reacting to changes in its macro-environment.

Regional development is an example of an autonomous development model, i.e. growth based on internal potential typical for a given territorial unit. Endogenous factors constitute the main driving forces responsible for development. This group consists of factors determining the development capacity of resources constituting the regional economy. It can be assumed that the regional economy is composed of the following types of capital (understood as resources generating both quantitative and qualitative advantages): natural capital (space location advantages and ecosystem resources); physical capital (manufacturing and infrastructural capital, financial resources); human capital (demographic resources and their structure) and social capital (social organizations, relations and interactions which make up regional civic society).

Among regional development factors responsible for stimulating the stream of benefits generated by regional natural capital the following, among others, may be listed: pro-ecological infrastructure development potential, exploitation of natural environment resources in line with eco-development principle (in the, so-called, protected areas) and the principle of sustainable development (in urban areas), ecological awareness, space location value resulting from its physiographic conditions, functionality and the location of regional space, and also the effectiveness of spatial marketing.

Innovation vs. regional development 17

Regional development strategies, prepared in the form of participation planning and implemented in all Polish regions, refer to the concept of sustainable development covering three major dimensions, i.e. the economic, social and spatial spheres. The endogenous ability to create eco-innovation, understood as pro-ecological novelty in technology, organization, management, promotion, ecological education, spatial planning, spatial marketing, which reduce or prevent negative influence of regional entities on the natural environment, constitute conditions for strategic development goals’ accomplishment in the sphere of regional ecosystem. Eco-innovation can take the following forms: product innovation (e.g. a new product which reduces or eliminates environmental damage); process innovation (e.g. changes introduced into technological processes and resulting in higher environmental quality); organizational structure innovation (e.g. a new structure which integrates environment protection with other tasks carried out in the region); innovation in relation to management methods or procedures (e.g. environment oriented management in line with ecological values system); innovation can also take the form of new legal and economic mechanisms application which stimulate the participation of regional economy units in the invention – innovation – diffusion cycle regarding spatial order and the costruction of a regional ecosystem balance.

In the field of regional development covering production, infrastructural and financial potentials, the following factors are, among others, responsible for development: regional economy structure flexibility and job market flexibility, the scale of regional investment demand influenced by the investments made by economic entities operating in the market and also the investments undertaken by the social public services sector, the capacity of the regional and local budget, as well as self-government stimulating entrepreneurship – the offer of external benefits. The key factor of development, in this case, is represented by the ability of regional economy entities to participate in an innovation cycle. The direct effect of a such capacity takes the form of both the creation and absorption of innovation, i.e. new products, manufacturing processes, management methods, organizational structures (reengineering), as well as legal and economic instruments for regional and local influence exerted on the regional economic sphere. The level of economic entities innovation, as well as self-government entities equipped with regulatory powers referring to economic sphere, are decisive regarding the overall level of regional innovation.

In times of globalization, innovation in the sphere of the economy represents the initial, causative stage of the regional economic development cycle triad which covers regional innovation – regional competitiveness – regional development. In this case, innovation does not represent a means to an end, but constitutes the method for regional economy competitiveness’ enhancement and therefore, in its final stage, for regional economy development.

Not every novelty can be perceived as an innovation. Rationalism is the condition for recognizing a particular novelty as innovation, which manifests itself in meeting one of the three following conditions [Świtalski 2005, p. 172]:

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– costs reduction: a producer or a service provider, while guaranteeing the

currently offered product or service quality, may sell the effects of his/her work at a lower price having preserved the so far obtained profitability level, or, by keeping the same price, achieve a higher level of cost-effectiveness – the result of meeting such a condition is the improvement of companies’ competitiveness which opens up opportunities for development;

– higher quality: higher quality by improving practical usage advantages, durability, reliability, aesthetics of a given product (service) – at an unchanged price level – which results in better competitiveness and facilitates extending the scale of production and sales and therefore obtaining benefits which stimulate company development in the regional economy structure;

– price commensurability and product quality: upgraded product quality, higher price, unreduced relation of a particular quality measure compared to the assessment, resulting in a better competitive advantage of a given company on the regional and supra-regional sales market, which opens up development opportunities for a company. Meeting each of the rationality conditions listed above, with reference to product

(service) innovation, results in the construction of a specific, for particular economic entities operating in regional economy, individual competitive potential. The sum of these potentials defines the regional competition level in an economic sphere. Higher regional competition level is the key determinant of regional development. In the discussed case it is the innovation advantage of companies functioning in the regional economy structure which represents the driving force influencing the increase in regional competition and, consequently, also regional development.

Human capital and social capital resources in a given region represent endogenous driving forces which create both regional (and also local) territorial unit innovation, as well as regional and local development. Regional human capital covers knowledge, skills, experience and intellectual creative capacity ingrained in particular units, which are of economic value for entities functioning in the regional economy. In this case such economic value is represented by the ability of the regional community to innovate in the process of performing due tasks in diversified regional, endogenous conditions, as well as the skill of responding to innovative transformations in the regional macro-environment – for which the adequate diffusion carrier takes the form of e.g. globalization processes as part of European integration. Knowledge is, by all means, the most important resource of the contemporary economy, since it is the product of human capital, while learning represents the crucial process, the effect of which is creating knowledge resulting in the higher value of human capital. The major quality of dynamically developing regions is the advantage of resources related to knowledge creation and human capital over those physical and natural. Simultaneously, the structure of human capital keeps changing in these regions – the role of quantitative dimension of

Innovation vs. regional development 19 labour resources and basic uncreative skills and qualifications is diminished in favour of creativity and innovation. Such transformations facilitate conducting research and high-tech application in the regional economy, as well as the establishment of strong internal economic, social and institutional cooperation relations, and therefore enhance the construction of an innovative environment in which a regional knowledge-based economy is offered the opportunity to thrive. The theory of endogenous development assumes that all regional capitals (natural, physical, human, social) come into being in the process of accumulation. With reference to human capital, the process of knowledge accumulation, in the form of knowledge capital, is crucial from the perspective of innovation sources, since it is the background of innovation understood as the capacity to create innovation within all fields of regional development.

Human capital, perceived as a regional development factor, is the object of research discussed in numerous scientific publications. The significance of regional human capital is also recognized and appreciated by local communities. It is manifested by local and regional development strategies prepared with the participation of the particular community , and takes the form of collaborative planning. The vast majority of strategic development plans adopted and implemented in regions, districts and communes depend on quality oriented development of human capital resources understood as the strategic goal of development.

In both professional literature and strategic planning practice of local and regional territorial systems development, the importance of social capital, as the determinant of regional development, is less valued, as well as that of the factor influencing regional innovation potential. The concept of local social capital covers the sum of the current and potential regional and local social resources presenting the ability for creating advantages accomplished in particular fields of regional development. These resources cover the following [Brol 2009, p. 58]: – permanent social order understood as the set of values, standards and attitudes

influencing regional (local) social interactions; – permanent, institutionalized network of relations with regional (local) entities

as its components which function in the commercial, social, public services sectors and also in the, so called, third sector covering grassroots type of initiatives undertaken by local communities, such as associations, unions, foundations and other formal and informal organizations typical for a civic society;

– local and regional social relations and interactions occurring between local (regional) inhabitants of a territorial system, between local community and self-government institutions, and also the third sector entities; these types of relations and interactions are the source of a new value – the cementing agent linking local (regional) social actors together and establishing a regional (local) community made up of all these units.

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Regional (local) social capital is considered the crucial factor of regional

development. The on-going nature of this development represents the derivative of the capacity of the regional entities towards constructing certain platforms for mutual understanding and cooperation in regional economic, social and spatial spheres. The effects of such agreements and cooperation stimulate the establishment of all sorts of institutions and organizations which results in the fact that regional development is not just the function of diversified activities performed by dispersed entities, but also a well-organized cooperation process between regional economy entities grouped around the implementation of socially acceptable strategic objectives of development and the regional mission. Therefore, it may be assumed that regional development (local) represents an example of a new logic in the development stimulating policy consisting more in mobilizing the local and regional environment rather than the policy of direct support for different types of operations or selected entities. Social capital plays the role of a stimulating agent for endogenous potentials aimed at regional development. The power of local (regional) influence of social capital is, among others, influenced by: regional community active participation; the manner of the, so called, third sector organization; the type of defined goals based on mutual trust and their common implementation – the network on diversified interrelations, interactions and interdependencies between regional residents, self-government entities, the third sector organizations, as well as other regional economy entities.

Local social capital, understood in the above way, can become the component of Regional Innovation System (RIS) if social capital activity covers relations focused on stimulating regional innovation. Regional innovation strategies represent the fundamental activities aimed at regional economy innovation. Such strategies are supposed to establish a partnership for Regional Innovation System (RIS). Presented synthetically and targeted at the core concept of the matter, the definition of RIS [Markowski 2008, p. 22] specified regional innovation systems as “the separated and independent system of relations occurring between organizations which function for the benefit of an overall system and cannot exist without it”. The above quotation – in its literal phrasing – can also be accepted as the definition of regional social capital. In its first understanding, this definition refers to the system of functional relations between regional entities operating in the sphere of innovation and technology transfer. The second meaning refers to the system of relations, interactions and interdependencies functioning for the benefit of regional development in economic, social and spatial spheres.

Regional economy entities constitute the components of regional innovation systems. Their taxonomy allows for the identification of the so called golden triangle vertices which schematically symbolize RIS [Gorzelak 2006, p. 20]. Such triangle vertices are represented by: entities functioning in the regional economic sphere; research and development entities (universities, research and development

Innovation vs. regional development 21 institutes); support institutions offering financial, consultancy, educational, promotional services and other forms of regional entities stimulation for regional innovation support. The golden triangle – the symbol of RIS – is constructed of three types of institutions constituting the triangle vertices, i.e. mutual, multivariate, diversified regarding level and type, interactions occurring both inside a particular triangle vertices and between them, as well as RIS relations with the supra-regional environment. The scale, scope, quality and effectiveness of interactions responsible for RIS depend, to a great extent, on the scale and nature of non-material social values represented by a particular regional (local) community, i.e. on regional social capital resources, the implementation of which multiplies economic benefits – in this case manifested by regional innovation enhancement.

The regional economy, just like RIS, cannot be confined to administrative borders. These systems do not operate as coherent, closed and internally balanced structures. Their organization and development dynamics are influenced not only by endogenous development potentials of economic, social and spatial spheres, but also by exogenous development determinants. Such factors gain in importance in conditions of an ongoing intensification tendency for globalization processes, European integration, changing macroeconomic conditions, systemic transformation (e.g. country decentralization), changing economic prosperity, national and EU regional policy transformations, or the competitiveness represented by surrounding regions, etc.

3. Stimulating innovation as the goals of economic policy

Currently, in conditions of globalization processes becoming intensified and taking place in both economic and social spheres as well as in ecosystems, the commer-cialization of innovative changes is not necessary (even though it is still crucial) condition for their implementation and dissemination. In the new circumstances of European integration and the global village stimulating innovation of both entities, organizations and, most of all, territorial socio-economic systems, becomes the crucial macroeconomic instrument of economic policy focused on the improve-ment of economy competitiveness at national, regional and local level. The support for innovation referring to territorial systems becomes a form of public aid ad-dressed – by the institutions which create economic, social and spatial policy in in-ter-regional and intra-regional dimension – to regional and local economy entities. In the European Union scale it is, among others, the Lisbon Strategy Competitive-ness and Innovation Framework Programme and EU regional policy (for the period of 2007–2013) which specify both strategic goals of such support and pro-innovation support criteria and also procedures regarding regional development. The proposal of guidelines for national scale pro-innovation implementation is put forward in the Op-erational Programme Innovation Economy prepared within the framework of National Strategic Reference Framework for the period of 2007–2012. The activities listed un-

22 Ryszard Brol

der this programme and co-financed by the European Union cover both the direct support for enterprises, institutions, business environment, research and develop-ment units, and also systemic support referring to R&D sector potential and its ca-pacity to create innovation, as well as the stimulating capacity of economic entities to absorb changes of an innovative nature.

At regional (voivodship) level, the preparation and implementation of Regional Innovation Strategies (RSI) represent basic activities aimed at regional economy innovation. These strategies are supposed to establish a partnership for the regional innovation system. The role of the public authorities is focused on the construction of an effective Regional Innovation Strategy implementation system and on the concentration of public means granted to these activities. The role of research and development units active in this area is to focus research projects on the needs of economic practice. Regional Innovation Strategies are supposed to stimulate the establishment of consortiums made up of research teams and a group of enterprises, or an overall regional economy sector, interested in the implementation of particular research projects. Regional Innovation Strategies have been prepared for all regions. Their common feature is an implementation programme and its monitoring system for the purposes of verification and adjustment to the dynamically changing situation in a region and its environment. The purpose of RSI is to construct regional innovation systems covering the following components: Science and Technology Parks, Clusters, Technology Incubators, Technology Platforms, High-Tech Centres and Excellence Centres. The listed organizational structures, which integrate activities performed by regional authorities, research and development units and also economic entities (or their unions), require highly qualified personnel, capital-intensive material base in R&B centres, public financial means, private investment in R&D as well as public – private partnership in carrying out the set objectives. All these efforts result in the fact that entities covered by the regional innovation system are spatially concentrated and located in metropolises or big cities. The implementation of tasks defined in RSI, facilitates the accumulation of pro-innovative activities regarding the first two phases of the innovation triad in regional capitals and also in cities forming conurbations (Silesia, Tricity). The majority of Regional Innovation Strategies indicate the need for concentrating both power and adequate means, in order to strengthen innovation creating potential referring to products, processes and organizations included among primary innovations of a ground-breaking, fundamental or incremental nature. To a lesser extent these strategies identify tasks referring to the third innovation triad phase, i.e. innovation diffusion and its spatial range influencing the capacity of local economy entities to absorb innovation changes. The local economy is composed of the peripherally situated small and medium size enterprises, communal entities of a self-government economy, local self-government units, local communities, as well as communal and district social organizations active for the benefit of local development. Local economy entities are mainly

Innovation vs. regional development 23 interested in supporting their endogenous ability to absorb exogenous development factors, including process and organization oriented innovations of both a primary and secondary nature. Such support may become an intra-regional policy component, but also an element of local (communal) economic, spatial and social policy. The objective of such a policy should focus on influencing the following: – local space attributes and local economy structure qualities as the localization

determinants of innovation; – local social capital as the component of innovation potential featuring local

communities and, understood as the range of opportunities and abilities for creating, but most of all absorbing innovation solutions. Regional Innovation Strategy (RSI) represents the basic tool for regional

innovation policy specification and, in line with the European Commission definition, identifies goals and activities aimed at extending the scale and upgrading the efficiency of innovation processes. RSI is supposed to establish partnerships for the benefit of regional innovation system (RIS).

Regional Innovation Strategies (RSI) cannot represent a single-use planning document. The changing endogenous and exogenous determinants, responsible for the implementation of goals set in Regional Development Strategies and RSI, impose the need to correct not only the implementation procedures, but also the development priorities, strategic and operational goals’ adjustment and updating.

Regional Innovation Strategies were prepared and approved for realization in all Polish regions. The earliest adopted RSI, in September 2003, referred to Silesia, while the latest, approved in April 2008, to the Mazowieckie region. In the other regions, adequate Regional Innovation Strategies were prepared and accepted for implementation in the period of 2004–2005. Almost all RSIs (except for the Mazowieckie region) were prepared in the period of EU budget implementation and EU regional policy goals in force, i.e. 2000–2006. New EU regional policy objectives and priorities adopted for implementation in the period of 2007–2013 were, compared to the previous time period, extensively modified and adjusted to the needs of the enlarged European Union, as well as the new challenges presented in the Lisbon Strategy priorities. Within the framework of each of the three current EU regional policy goals there are listed priorities referring to regional innovation strategy [Zbiór aktów prawnych... 2006, pp. 7–10]. As part of the first goal, i.e. its continuation from the previous planning period (2000–2006) related to problematic regions’ development stimulation (underdeveloped and of small population density) a new priority was distinguished: research and technological development. This priority facilitates the application procedure, by particular regions, for means from the European Regional Development Fund (ERDF) to be allocated to: infrastructure development which extends research and technological development capacity and their integration in the European Research Space structures; establishing relations between the small and medium-size enterprises (SMEs) sector and higher education institutions, research institutions and R&D centres;

24 Ryszard Brol

support for public-private partnerships and clusters as the form of research environment integration and economic practice; enhancing funding by means of financial engineering instruments – innovation absorption in SME groups; technological entrepreneurship promotion and enhancement.

Within the framework of the discussed priority, i.e. research and technological development the, so-called, soft non-investment projects financing from the European Social Fund (ESF) is also possible with reference to: information and communication technologies dissemination facilitating e-education; entrepreneurship and innovation promotion; preparation and dissemination of innovative work organization forms; dissemination of innovative eco-friendly technologies; stimulating activities at regional level aimed at obtaining consensus among different social groups in relation to entrepreneurship and innovation. The above new opportunities for pro-innovative projects’ financial support, carried out in problematic regions do change, to a great extent, the exogenous determinants for regional innovation strategies construction in Polish regions, which require support regarding the first goal (convergence) of EU regional policy.

New and favourable circumstances for regions located along the border, regarding financial support for regional pro-innovative projects, are created by the new EU regional policy goal (no. 3) – support for territorial cooperation. This objective covers the following priorities: cross-border cooperation support (at NUTS 3 level); transnational cooperation support (NUTS 2 level); inter-regional cooperation support (NUTS 3 level). Regions situated along the border in EU areas are entitled to apply for cross-border cooperation support as well as also some regions located along external EU borders. Transnational cooperation support refers, among others, to two Polish areas: costal regions and the, so-called, Eastern wall. The support provided within the framework of inter-regional cooperation is of a horizontal nature – and refers to all EU regions. In line with the goal: European territorial cooperation the European Regional Development Fund co-finances the implementation of the following projects: taking advantage of joint, cross-border human resources and infrastructure for the purposes of research and technological development (RTD); establishment and development of transnational research and technological networks in order to extend RTD and the capacity for innovation creation and absorption at regional level; stimulating pro-innovative relations between universities and institutions operating in the sphere of R&D and in the sector of small and medium enterprises; facilitating access to scientific knowledge and technologies transfer between regional RTD centres and the leading international RTD creation centres; inter-regional cooperation enhancing regional innovation in economic and social spheres and also regarding regional ecosystems – which has a direct impact on the strengthening of regional policy effectiveness.

Opportunities for regional innovation support within the framework of goal no. 2 implementation referring to EU regional policy – regional competitiveness and employment – are of practical significance in the perspective of the next

Innovation vs. regional development 25 programming period covering 2014–2020. Within the framework of this particular goal, the criterion of support qualification is defined at the level of 75% of the EU average, regarding GDP per capita, exceeded by a given region.

The discussed above possibilities of support for Polish regions, within the framework of new priorities, defined for implementation as part of goal no. 1 (convergence) and goal no. 3 EU regional policy (territorial cooperation), and also – in the perspective dimension – goal no. 2 (regional competiveness), change the previously established exogenous determinants influencing the structure of Regional Innovation Strategies (RSI), procedure and financing sources of the strategic tasks carried out, as well as Regional Innovation Systems (RIS) modelling and implementation.

4. Final remarks

The triad of innovation cycle invention – innovation – diffusion can be identified and analyzed both in relation to entities and sectors of the economy and also with reference to territorial systems of global, national, regional and local dimensions. At regional level of territorial systems innovation, as an economic category – un-derstood as the capacity to participate in an innovation cycle – is perceived as the objective of development. Regions and, at a local level, communities, are legally equipped with self-government – administrative, planning and economic – instru-ments for influencing economy, space and society, which can be used for stimulating innovation in the regional and local economy. In this context, the category of innova-tion is observed as one covering both the structure of goals and the package of re-gional policy instruments. Regional Innovation Strategies represent the fundamental planning instrument in this package, since they determine the scenario for Regional Innovation Systems construction. Such strategies, prepared and implemented in all regions, should present the nature of rolling plans. The need for verifying goals, tasks and procedures defined in RIS, results from the changing endogenous and ex-ogenous determinants of regional development. Directions for the modification of these strategies should mainly cover new opportunities for stimulating regional in-novation in conditions of the global economy and European integration.

References

Brol R., Innowacyjność lokalnych jednostek terytorialnych, [in:] R. Brol (ed.), Gospodarka lokalna i regionalna w teorii i praktyce, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu nr 46, Wrocław 2009.

Gorzelak G., Bąkowski A., Kozak M., Olechnicka A., Polskie regionalne strategie innowacji: ocena i wnioski dla dalszych działań, Regional Studies Association – Polish Section, Warszawa 2006.

Markowski T., Teoretyczne podstawy rozwoju lokalnego i regionalnego, [in:] Z. Strzelecki (ed.), Go-spodarka regionalna i lokalna, PWN, Warszawa 2008.

Porter M.E., Porter o konkurencji, PWE, Warszawa 2001.

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Schumpeter J.A., Teoria rozwoju gospodarczego, PWN, Warszawa 1960. Świtalski W., Innowacje i konkurencyjność, Wydawnictwo Uniwersytetu Warszawskiego, Warszawa

2005. Zbiór aktów prawnych WE w zakresie funduszy strukturalnych i Funduszu Spójności na lata 2007–2013.

Komentarz, Ministerstwo Rozwoju Regionalnego, Warszawa 2006.

INNOWACYJNOŚĆ A ROZWÓJ REGIONALNY

Streszczenie: Triadę cyklu innowacyjnego: invention – innovation – diffusion, identyfiko-wać i analizować można zarówno w odniesieniu do podmiotów i sektorów gospodarki, jak i w odniesieniu do układów terytorialnych w wymiarze globalnym, narodowym, regionalnym i lokalnym. W publikacji zdefiniowane zostało pojęcie innowacji i innowacyjności regionu jako kategorii ekonomicznej. Określone zostały również relacje między rozwojem regional-nym a innowacyjnością gospodarki regionalnej. Dokonano również identyfikacji instrumen-tów stymulowania innowacyjności regionów w ramach polityki regionalnej kreowanej przez Unię Europejską oraz regionalne jednostki samorządu terytorialnego.

Słowa kluczowe: innowacyjność, rozwój regionalny, region.



Ewa Glińska, Anna Kononiuk Białystok University of Technology

THE CONCEPT OF REGIONAL STRATEGY OF SMART SPECIALIZATION

Summary: The aim of the paper is to present the specificity of the concept of smart spe-cialization, its strengths and weaknesses, as well as examples of its successful use in the de-velopment of selected regions. The study has been based mainly on literature surveys and the analysis of documents, including the RIS3 guide presenting the mechanism of the devel-opment of regional smart specialization strategy.

Keywords: smart specialization, regional development, European Union.

1. Introduction

Significant social and economic changes taking place in recent years in the global economy have forced a reorientation of community policy. Emphasis has been placed on strengthening the innovation and competitiveness of the European econ-omy. The new philosophy of the European policy stresses the need to accelerate and strengthen the development of a knowledge-based economy, contribute to the efficient use of resources and strengthen the innovation capacity of regions [Nowa-kowska 2009, p. 7].

The regional development policy after 2013, attributes key importance to the strategy Europe 2020. It sets three ambitious interrelated goals for the whole Union: smart development (stimulated by the development of an economy based on knowledge and innovation), sustainable development and also inclusive development [Harańczyk 2011, p. 7]. The objectives outlined above should also be transferred onto a regional level in all EU member states.

The new model of EU regional policy for the programming period after 2013, is based on the premise that development chances are inherent in all types of regions, where development determinants are located in different territorial systems. Thus, the aim of regional intervention is to maximize growth at national level by supporting and encouraging each region to present, strengthen and use its

28 Ewa Glińska, Anna Kononiuk

endogenous growth potential with the help of internal or external resources [Harańczyk 2011, p. 7].

In the context of convergence and cohesion among the European regions, the promotion of innovation in regions that are in different phases of development has been a central objective of European regional policy. For this purpose, the European Commission has launched many innovation schemes and many European regions have conducted initiatives of this kind [Kyrgiafini, Sefertzi 2008, pp. 885–910]. The most popular is smart specialization.

New concepts of territorially-oriented development and the analysis of the effectiveness of existing regional innovation strategies, have prompted the European Commission to propose a new approach to regional innovation policy – the so-called smart specialization strategy. The concept of smart specialization assumes, primarily, the increase of innovation and competitiveness based on regions’ endogenous potentials in industries already present in them, which may involve specializations within a single sector as well as cross-sectoral activities allowing the achievement of a specific competitive advantage [Gaczek, Matusiak 2011, pp. 7–8].

In this context, the aim of the paper is to present the specifics of the concept of smart specialization, its strengths and weaknesses, as well as examples of its successful use in the development of selected regions. The study has been based mainly on literature surveys and analysis of documents, including the RIS3 guide [Foray et al. 2012, p. 12] presenting the mechanism of development of regional smart specialization strategy.

2. Regional innovation policy

The regional scale is commonly considered appropriate for implementing policies related to innovation. In a knowledge-based economy, the region turns out to be one of the key levels for stimulating innovative entrepreneurship. Regions constitu-te a level at which better use is made of the endogenous resources available in a given space [Matusiak 2010].

The regional scale is currently used both in the theoretical analysis and in the operationalization of policies to encourage innovation. Fritsch and Stephan presented several reasons for the regionalization of innovation policies [Pinto, Rodrigues 2010, pp. 1732–1733]: – innovation processes are not distributed equally in space, but are concentrated

in some regions and are almost absent in others. National policies have a regional impact, and these differences justify per se a regionalized guidance to achieve national targets more effectively;

– there are differences not only in the proportion of innovative activity, but also in how innovation systems operate. Policies based on the replication of good

The concept of regional strategy... 29

practices do not work in all regions, and different instruments need to be adjusted to achieve a goal;

– although innovation is central to economic growth, regional development policies may conflict with national growth ambitions. A fundamental role in the process of building regions’ innovation capacity is

played by regional policy constituting a platform for joining the different actors on the regional innovation scene. Local authorities in this process have mainly the function of supporting and coordinating innovation-oriented measures and activities in the region. Regional innovation policy can be defined as a set of rules, methods and tools by which regional policy actors stimulate innovation processes. This is a set of decisions and actions taken by the regional authorities with the aim to strengthen broadly understood innovation processes taking place in the region. In other words, it is a purposeful activity of regional authorities, undertaken to promote regional economic innovation and build an effective regional innovation system [Nowakowska 2010, p. 36].

The main tool for shaping innovation policy at regional level is Regional Innovation Strategy. Regional Innovation Strategies (RISs) play a significant role in developing competitive regional economies. They are aimed at the building of a permanent regional partnership between scientific centres and industry and at the enhanced competitiveness of SMEs through the introduction of new technologies and raising the level of qualifications of scientific staff and enterprises as regards the carrying out and managing of R&D studies and the commercialization of their results [Strategy for Increasing the Innovativeness... 2006, p. 42].

An important challenge for the region for the new 2014–2020 programming perspective is, therefore, to meet the requirements of the EU and to prepare development strategies taking into account the smart specialization. The European Commission expects national and regional authorities across Europe to develop research and innovation strategies for the smart specialization in order to allow the use of EU structural funds in a more efficient manner and increase synergies between different EU, national and regional policies, as well as public and private investments [Strategie badawcze i innowacyjne... 2012].

3. The concept of smart specialization

Smart specialisation is a policy concept that was elaborated in 2008 by a group of academics, namely Foray, David and Hall [Foray, David, Hall 2009; Foray 2011]. Although the idea is more a policy-oriented notion than a well-documented aca-demic theory, it heavily influences European decision makers, especially in a crisis situation and within R&D financial constraints [Rogut, Piasecki 2012, p. 4].

According to its authors, the smart specialization idea is based on an entrepreneurial process of discovery which is a learning process with the aim to


find out the research and innovation domains in which a region can hope to excel [Foray, David, Hall 2009]. The leading role in the process is played by – in a broad sense – entrepreneurial actors (firms, higher education institutions, independent inventors and innovators) discovering promising future specializations. Foray noticed that these actors “are in the best position to discover the domains of R&D and innovation in which a region is likely to excel given its existing capabilities and productive assets” [Foray 2011]. He also posits that innovations do not have to be purely technical. This fact was also emphasised by other researchers. As noted by McCann and Ortega-Argilés, the transition from technological innovation to organizational and social, gives for all the regions a chance of building strong position niches, in which they demonstrate a competitive or comparative advantage [McCann, Ortega-Argilés 2011]. As posited by Foray et al. [2012, p.1 2].: “the smart specialisation concept therefore promotes efficient, effective and synergetic use of public investments and supports countries and regions in strengthening their innovation capacity, while focusing scarce human and financial resources in a few globally competitive areas in order to boost economic growth and prosperity”.

The idea of smart specialisation is now a key part of the EU innovation plan [Europe 2020 Flagship Initiative Innovation Union... 2010]. The European Commission has prepared a platform of services (S3) to endorse regions and countries in their efforts to devise and implement a smart specialisation strategy. Moreover, implementing the smart specialisation is a conditionality clause for structural fund attribution [Foray 2011].

Following the authors of the Guide to Research and Innovation Strategies for Smart Specialisation (RIS 3), smart specialization is “smart” for two reasons (see Figure 1) [Foray et al. 2012, pp. 16–17].

Figure 1. The visualisation of the smart specialization concept

Source: own elaboration.

entrepreneurial process of discovery

cooperation with local actors

outside world

economic developement

research innovation

REGION

The concept of regional strategy... 31

Firstly, it associates research and innovation with economic development in new ways, such as the entrepreneurial process of discovery and the setting of priorities by policy makers in close cooperation with local actors. Secondly, this process is carried out with an eye on the outside world, forcing regions to be ambitious but realistic about what can be achieved, while linking local assets and capabilities to external sources of knowledge and value chains.

Although there may be identified common features in the process of devising regional strategies, understanding the local context will add to the document’s distinctive character.

As noted by Foray, David, Hall [2009], a framework clarifying the logic of the smart specialisation is shaped by General Purpose Technologies (GPTs), whose characteristics are “horizontal propagation throughout the economy and complementarity between invention and application development” [Foray, David, Hall 2009, p. 27]. According to the authors of this article, the most important feature is their transformative potential and horizontal nature. In the European Commission’s Guide to Research and Innovation Strategies for Smart Specialisation (RIS 3), these technologies are defined as KET (Key Enabling Technologies) [Foray et al. 2012, p. 14].

Regions can benefit from these technologies in different ways. The leader regions could invest in the inventions of a KET, follower regions are advised to invest in the co-invention of applications – that is – the development of the applications of a KET in one or several important domains of the regional economy [Foray, David, Hall 2009].

Promising as it is, the smart specialisation seems to also have its weaknesses. The authors of this article share D. Foray’s opinion that this strategy does not necessarily offer any protection against the risks of collective inertia and the inability to respond to the challenges of a radical innovation that threatens to render the capacities of a particular region obsolescent. Enterprises may even tend to respond to the new challenge by placing even more confidence in the organisation routines of the past, a phenomenon that Sull designated “active inertias” and finally they could go bankrupt [Foray 2009, p. 23]. An example of this situation could be tyre companies in the United States of America who were heavily striving to improve incrementally their obsolete technologies as a response to the technological challenge posed by Michellin [Foray 2009, p. 23].

Nevertheless, the possible advantages of using the smart specialisation strategy seem to outweigh the disadvantages of not applying it to regional development. Some positive examples are presented in the next section of the paper.

4. Positive examples of implementing regional smart specialization strategy

In the existing published works on smart specialisation, there can be found positive examples of its usage. Following smart specialisation strategy, the regional change


may be put in motion in four ways, namely: transition, modernisation, diversifica-tion and radical change. Well-documented examples of these four types of struc-tural change may be found in the Commission’s Guide to Research and Innovation Strategies for Smart Specialization (RIS 3) [Foray et al. 2012, p. 14].

For the transition process, understood as moving “from an existing sector to a new one based on cooperative institutions and processes” [Foray et al. 2012, p. 14], the given example is of Austrian entrepreneurs who discovered a transition path from fine mechanical and optical engineering to medical technologies. In this way, the initial set of inventions in medical technologies emerged from the industrial capabilities and competences which were already strong in mechanical engineering.

Modernisation, defined as “the technological upgrading of an existing industry, involving the development of specific applications of a Key Enabling Technology to improve efficiency and quality in an existing (perhaps traditional) sector” [Foray et al. 2012, p. 14] is presented in the light of the Finnish pulp and paper industry viewing nanotechnology as a promising source of valuable applications. Foray cites also the examples such as ICT applications in the fishing industry or the application of nanotechnologies within the agro-food sector [Foray 2011, p. 6]. He also emphasises that the intersection between the potential of a GPT application to “modernise” a given sector of the regional economy defines the feasibility space for the smart specialisation strategy to be undertaken [Foray 2011, p. 6].

Diversification, specified as the process of discovery concerning “potential synergies (economies of scope and spillovers) which are likely to materialise between an existing activity and a new one” [Foray et al. 2012, p. 14] is exemplified by the region of Toulouse which exhibits smart specialisation in aeronautics. This activity led to an extension of entrepreneurial activities and higher education and research infrastructure to new areas such as satellites and GPS Technologies.

Finally, radical change or a radical foundation of a new domain comes in a situation where innovation in a certain field making previously low growth activities suddenly becomes attractive [Foray et al. 2012, p. 15]. For example, the development of IT applications for the management and maintenance of the archaeological and historical heritage in Italy (Florence).

Apart from the examples listed above, the authors also recommend scrutinising the following initiatives: – Top Technology Region (TTR), Skane’s innovation capacity in the scope of

regional potential analysis for innovation; – Modern Navara in the scope of ensuring participation; – The West Midlands Innovation Strategy – in the scope of public–private

cooperation; – Vlaanderen in Actie – in the scope of vision building; – RITTS – Project Berlin – in the scope of regional priority setting;

The concept of regional strategy... 33 – The Innovation Assessment Methodology Lower Austria in the scope of

monitoring and evaluation. The experiences drawn from the initiatives mentioned above could

significantly enrich the methodology of smart specialisation strategy building.

5. Summing-up

Smart specialization means the identification of unique features and assets of each country and region, highlighting their competitive advantages and clustering regio-nal partners and the resources around a specific vision of the future.

According to Kardas, the objective of implementing the concept of smart specialization into regional development, is the optimum use of the potential of individual regions and countries through adjusting, in the best way, the science and education development directions of these regions or countries to their specific socio-economic conditions, which means the appropriate compilation of the triangle: science – education – economy. This means, e.g. directing public interventions towards such initiatives, activities and projects that will enable the specialization of a given region or state, either in the development of basic technologies (in the case of regions most advanced in terms of technology and development), or in the development of products and services using these technologies (in the case of less developed regions) [Kardas 2011, pp. 125–129].

A special role in the development of smart specialization strategies is assigned to public authorities. It should be noted, however, that smart specialization should not be determined arbitrarily by the public administration within its development plans compiled. Instead, it should be an “entrepreneurial” learning process indicating in which science or technology of a given region could become a leader on the European and global scale [Kardas 2011, p. 127]. The development of smart specialization strategies is, therefore, a challenge to be met in the near future also by Polish regions willing to make use of the EU funds in the period of 2014–2020.

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KONCEPCJA REGIONALNEJ STRATEGII INTELIGENTNEJ SPECJALIZACJI

Streszczenie: Celem artykułu jest ukazanie specyfiki inteligentnej specjalizacji, jej silnych i słabych stron, jak również przykładów jej wykorzystania w rozwoju wybranych regionów. Opracowanie bazuje na studiach literatury i analizie dokumentów, ze szczególnym uwzględnieniem przewodnika opracowania regionalnych strategii inteligentnych specjaliza-cji RIS, przygotowanego przez Komisję Europejską.

Słowa kluczowe: inteligentna specjalizacja, rozwój regionalny, Unia Europejska.



Hanna Kruk Gdynia Maritime University

RESILIENCE, COMPETITIVENESS AND SUSTAINABLE DEVELOPMENT OF THE REGION – SIMILARITIES AND DIFFERENCES*

Summary: The most commonly mentioned concepts related to regional development are the competitiveness of the region, sustainable development and regional resilience. The aim of the article is a comparative analysis of the definitions, goals and determinants of these three concepts and an attempt to indicate the similarities and differences among them.

Keywords: region, competitiveness, resilience, sustainable development.

1. Introduction

Nowadays, the most frequently mentioned concepts related to regional develop-ment remain the competitiveness of the region, sustainable development and re-gional resilience. A consensus regarding these three concepts does not exist – some authors argue that the pursuit to improve competitiveness excludes sustainable de-velopment, others do not share this opinion. In the case of resilience, some scien-tists believe that competitiveness (in the most common approach) may influence resilience negatively, whereas others maintain that these two ideas are strictly con-nected. This article is an attempt to analyse the chosen definitions and foundations to find similarities and differences among these concepts.

2. Regional competitiveness

Competitiveness is defined as a propriety of a business, a region or a country to achieve efficacious contest, success and permanent development by, among others, the effective use of its own resources. Definitions of competitiveness vary with re-gard to the level considered. Regional competitiveness and competitive regions are defined as follows:

* The article was written within the framework of the project: “Baltic Economic Observatory”.

36 Hanna Kruk

1. M.E. Porter does not refer to regional level in his definitions of competitiveness,

however his considerations are used to explain competitiveness at regional level [Gawlikowska-Hueckel 2008, p. 41]. According to Porter, competitiveness is strictly related to productivity. “The principal goal of a nation is to produce a high and rising standard of living for its citizens. The ability to do so depends on the productivity with which the nation’s labor and capital are employed” [Porter 2008, p. 176], Porter assumes that a competitive advantage depends on the ability to create knowledge, innovations and the capacity to upgrade [p. 171].

2. H. Godlewska mentions three ways of defining regional competitiveness: as a group of features determining its attractiveness, as an indirect and direct rivalry between regions and as a capacity of a region to absorb businesses, capital, new technologies etc. [Godlewska 2001, p. 27].

3. The European Commision describes regional competitiveness as the capacity to create and produce goods, maintain a high level of income and generate a high employment level [Gardiner, Martin, Tyler 2004, p. 1047].

4. Competitiveness “is the ability of a region to foster, attract and support economic activity so that its citizens enjoy relatively good economic welfare” [Houvari, Kangasharju, Alanen 2001, p. 1].

5. According to R. Huggins and W. Davies, competitive regions are able to anticipate and adapt to various challenges [Lambregts, Janssen-Jansen, Haran 2008, p. 45].

6. A region is competitive if it is able to create, adequately to the conditions, structural combinations by using its resources [Klamut 2008, p. 50].

A comparison of these and other definitions of regional competitiveness make it possible to determine notions related to it, namely productivity and economic growth, standards of living and quality of life (or welfare), adaptability, use of re-gion’s resources (or its strengths), attractiveness (for business, citizens etc.), creat-ing an environment for entrepreneurship and the capacity of the region to absorb the necessary resources from outside (capital, knowledge, technology etc.).

3. Resilience and resilient regions

Recently the idea of resilience has been mentioned and described more frequently. These two terms – resilience and competitiveness – are often put together. The no-tion of resilience originates from ecological sciences and (in such an approach) means the bio-capacity of organisms to adapt and develop under disadvantageous conditions or, in the case of ecosystems, has a similar meaning to their stability or elasticity [Vatn 2005, p. 118; Brand 2009, p. 606; Christopherson, Michie, Tyler 2010, p. 3]. The idea of resilience has been adapted by social sciences, including economics, however in that case it is described as a capacity to return to a narrow, strictly determined equilibrium state. The resilience of the regions is commonly re-

Resilience, competitiveness and sustainable development... 37 lated to their adaptability [Christopherson, Michie, Tyler 2010, p. 3]. Regional re-silience and resilient regions have been defined several times, for instance:

1. According to K.A. Foster “regional resilience as the ability of a region to anticipate, prepare to respond and recover from disturbance” [Foster 2006, p. 14].

2. Resilience may be related to the region’s ability to return to its pre-shock position including the level of production or employment [Dawley, Pike, Tomaney 2010, p. 653].

3. Regional resilience is “the ability of a region [...] to recover successfully from shocks to its economy that either throw it off its growth path or have the potential to throw it off its growth path but do not actually do so” [Hill, Wial, Wolman 2008, pp. 4–5].

4. In the case of a resilient region, its economic and political structures have the ability of continual adaptation to changing conditions and, if the process fails, the region maintains its ability to re-organise its structure [Swanstrom 2008, p. 10].

5. S. Christopherson, J. Michie and P. Tyler emphasize that a resilient region maintains long-term economic success (in spite of economic changes) that may be measured by quality of life, standards of living, employment rate and economic growth [Christopherson, Michie, Tyler 2010, p. 6].

6. A resilient region anticipates and prepares for changes, has the capability for learning and securing resources to use them in the process of outlasting shocks [Hudson 2010, p. 22].

Generally speaking, resilience is a dynamic, long-term process (with regard to continuous changes) related to the adaptation of the region (treated as a system) to various disturbances. Some authors define it as a capacity of the system to recover after shock (back to the previous equlibrium or move to a new one) or get through such a disruption and retain (or regain) the ability of regular functioning [Simmie, Martin 2010, p. 28; Swanstrom, Chapple, Immergluck 2009, p. 3; Hudson 2010, p. 12].

A strict relationship between the resilience of the regions, their adaptability, transformability, vulnerability or resistance to shocks, stability, possibility of reorganisation and economic development, growth path, welfare and standards of living is emphasised. Moreover, resilience and its foundations are also related to innovation, creating and spreading new knowledge, competitive processes, economic growth and success, market changes and employment rate.

Resilience is also connected with the foundations of sustainable development that involve not only socio-economic questions but also ecological ones,1 namely eco-efficiency, environmentally less damaging production (consumption) and taking into consideration ecological limits [Bristow 2010, p. 153; Hudson 2010, pp. 12, 22].

1 The idea of a region as a socio-ecological system.

38 Hanna Kruk

4. Sustainable development of the region

The term sustainable development has two parts: the word “sustainable” originated from ecological sciences and means the ability of an ecosystem to persist in an al-most unchanged state, whereas the word “development” derives from social and economic sciences. Such an approach unites ecological and economic interests [Jarabeen 2008, pp. 181–182]. Sustainable development has been defined and re-defined many times [e.g. Piontek 2002, pp. 15–27], like competitiveness and resil-ience, however in the case of the concept, the differentiation of definitions among three levels (micro-, mezo- and macroeconomic) practically does not exist. The most respected definition of sustainable development was introduced in The World Commission on the Environment and Development Report in 1987. According to the report, “sustainable development meets the needs of the present generation without compromising the ability of future generations to meet their own needs” [after: Keiner 2004, pp. 379–380].

Three dimensions of sustainability are differentiated – social, economic and ecological – they are equal, so none of them should be treated as superior [e.g. Ciechanowicz-McLean 2003, p. 38; Keiner 2004, pp. 380–381].

As already mentioned, sustainable development is defined in a general way, nevertheless some authors refer the concept to a specific level, including a regional one. According to M.L.M. Graymore, “regional sustainability requires the human population to live within the limits of the region's supporting systems (social, economic and ecosystem), ensuring equitable sharing of resources and opportunities for this and future generations in the region” [Graymore, Sipe, Rickson 2008, pp. 362–363].

Sustainable development is related to the ecologisation of the economy (“greening”), a permanent improvement in the quality of life, intra and intergenerational justice, social participation, limitation of harmful environmental impact, protection of biodiversity and spatial planning2 as a part of long-time economic development.

5. Similarities and differences between the described concepts

A comparison of these three described concepts demonstrates that competitiveness is proprietary, while resilience is a process or (very seldom) propriety and sustain-able development – a goal to reach or a constant process.

The essence of competitiveness is the capacity for such socio-economic development that provides welfare to citizens; the substance of resilience is the ability of a regional economy to survive shocks and recover from them and in the case of sustainable development – it is balancing social, economic and ecological policy [Kruk, Waldziński 2010, p. 94].

2 Proper management of the living space for present and future generations.

Resilience, competitiveness and sustainable development... 39

Analysing the definitions and foundations of these three concepts allows to differentiate between the main elements (Table 1). The following denotations were used in the description:

+ strong relationship between a chosen concept and notion exists, – relationship does not occur, ? relationship is unclear or only indirect.

Table 1. Concept of competitiveness, resilience and sustainability of the region

Regional Categories

competitiveness resilience sustainability Quality of life/standards of living/welfare + + + Economic growth (development) + + ? Productivity + ? – Innovations, knowledge creation and spreading + + ? Employment rate + + ? Adaptability to changes + + – Use of regional resources + + ? Fulfilling the needs + + + Social justice – – + Living within environmental limits – – + Nature protection and preservation – – + Policy of local and regional authorities + + +


In all these concepts references to the quality of life, standards of living or welfare are included and they are treated as superior. It is the first element shared by all of them. The situation is not so clear in the case of economic growth (or development). For competitiveness or resilience, increasing the growth (or, at least, maintaining it at a stable level) is crucial, however referring to a sustainable development relationship is not so obvious. The pursuit of growth based on unconditional production and consumption increase denies the aims of such development [Rogall 2010, p.158]. In this instance the question of an alternative path of development related to a change in the system of values are required (”to produce less, to consume less but produce something else” or “to produce more or the same but to consume less”). This means economic development based on completely different presumptions [Ginsbert-Gebert 1990, pp. 22–25]. A shift of the basic foundation is possible as well, not raising the production continuously but aspiring to the so-called steady state economy [Rogall 2010, p. 162]. Some authors follow the idea of sustainable growth, leading, for example, to increasing competitiveness [e.g. Balkytė, Tvaronavičienė 2010, pp. 356–357].

Productivity is strongly highlighted in the concept of competitiveness – according to M.E. Porter – it is a fundamental factor influencing living standards in

40 Hanna Kruk

a country or region [Porter 2008, p. 176]. Productivity is also combined with resilience, however seldom. Usually it is used with a description of weak or strong resilience performance [e.g. Foster 2006, p. 26]. The term is not mentioned in the case of sustainable development.

Innovations (and the creation of knowledge) are named as one of the fundamental factors of competitiveness and resilience. Indirectly, a connection exists between them and sustainability in the case of eco-innovations. M.E Porter and C. van der Linde assert that the thrifty, reasonable use of natural resources, a reduction of the negative environmental impact and an improvement of eco-efficiency owing to eco-innovations determine competitiveness [Porter, van der Linde 1995, pp. 120–122, 133–134].

Where employment is concerned, its relatively high rate is one of competitiveness and resilience determinants as well, however this is not mentioned in the third concept. Taking into consideration salaries and other work benefits (e.g. satisfaction, social stabilisation), it may be regarded as an element of life quality also in the case of sustainable development.

Adaptability is crucial both for resilience and competitiveness. The capacity to recover after shocks is important for regional development in the two mentioned concepts. However the term is not connected with sustainability.

In ideas of competitiveness and resilience, using the region’s own resources is emphasized as well. Such an aim is consistent with the theory of endogenous regional development. It is not directly related to sustainability, nevertheless some authors remark that such a development based on their own resources, is more “green” and less environmentally harmful with regard to the limitation of food and other goods’ transport sometimes from distant parts of the globe [Hudson 2010, p. 15].

Fulfilling human needs is also connected with the quality of life, welfare and productivity and is fundamental to all three concepts. Regarding sustainability, the question is examined with reference to present and future generations.

However, some questions are only a part of sustainable development, namely nature protection and preserving biodiversity, life within environmental limits and social justice.

Another common element shared by these three concepts is the policy of local and regional authorities, essentially influencing the socio-economic situation in regions, the possibility of implementing all of them and reaching the required aims.

6. Conclusions

An analysis of the above mentioned concepts allows to formulate the following conclusion that there exist greater similarities between regional competitiveness and resilience than between them and sustainability. Some authors emphasize the close relationship between resilience and competitiveness and the fact that regional adaptability to external and internal changes (shocks) is common to both of them.

Resilience, competitiveness and sustainable development... 41

There are some similarities in all three concepts, namely the aim to improve the quality of life and standards of living, meeting needs, and the dependence on policy of local and regional authorities. Both in the case of competitiveness, resilience and sustainable development, long-term performance is fundamental (especially for the last concept).

Some authors treat all three ideas as mutually supplementary. Nevertheless, this question needs further study.

References

Balkytė A., Tvaronavičienė M., Perception of competitiveness in the context of sustainable develop-ment: facets of “sustainable competitiveness”, Journal of Business Economics and Management 2010, vol. 11, no. 2, pp. 341–365.

Brand F., Critical natural capital revisited: Ecological resilience and sustainable development, Eco-logical Economics 2009, vol. 68, pp. 605–612.

Bristow G., Resilient regions: re-‘place’ing regional competitiveness, Cambridge Journal of Regions, Economy and Society 2010, vol. 3, pp. 153–167.

Christopherson S., Michie J., Tyler P., Regional resilience: theoretical and empirical perspectives, Cambridge Journal of Regions, Economy and Society 2010, vol. 3, pp. 3–10.

Ciechanowicz-McLean J., Ochrona środowiska w działalności gospodarczej, LexisNexis, Warszawa 2003.

Dawley S., Pike A., Tomaney J., Towards the resilient regions?, Local Economy 2010, vol. 25, no. 8, pp. 650–667.

Foster K.A., A Case Study Approach to Understanding Regional Resilience, Working Paper 2007–08, MacArthur Foundation Research Network on Building Resilient Regions, Institute of Urban and Regional Development, University of California, Berkeley 2006.

Gardiner B., Martin R., Tyler P., Competitiveness, productivity and economic growth across the European regions, Regional Studies 2004, vol. 38, pp. 1045–1067.

Gawlikowska-Hueckel K., Potencjał rozwojowy polskich województw w latach 1995–2005, [in:] A. Zielińska-Głębocka (ed.), Lokalizacja przemysłu a konkurencyjność polskich regionów (w kon-tekście integracji europejskiej), Wydawnictwo Uniwersytetu Gdańskiego, Gdańsk 2008.

Ginsbert-Gebert A., Ekologiczne uwarunkowania społeczno-ekonomicznego rozwoju Polski, SGGW-AR, Warszawa 1990.

Godlewska H., Lokalizacja działalności gospodarczej, Wyższa Szkoła Handlu i Finansów Międzyna-rodowych, Warszawa 2001.

Graymore M.L.M., Sipe N.G., Rickson R.E., Regional sustainability: How useful are current tools of sus-tainability assessment at the regional scale?, Ecological Economics 2008, vol. 67, pp. 362–372.

Hill E., Wial H., Wolman H., Exploring Regional Economic Resilience, MacArthur Foundation Re-search Network on Building Resilient Regions, Institute of Urban and Regional Development, University of California, Berkeley 2008.

Hudson R., Resilient regions in an uncertain world: wishful thinking or a practical reality?, Cam-bridge Journal of Regions, Economy and Society 2010, vol. 3, pp. 11–25.

Houvari J., Kangasharju A., Alanen A., Constructing an Index for Regional Competitiveness, Pellervo Economic Research Institute Working Papers, 2001, No. 44.

Jarabeen Y., A new conceptual framework for sustainable development, Environment, Development and Sustainability 2008, vol. 10, pp. 179–192.

42 Hanna Kruk

Keiner M., Re-emphasing sustaianble development – the concept of ‘evolutionability’, Environment,

Development and Sustainability 2004, vol. 6, pp. 379–392. Klamut M., Konkurencyjność gospodarki regionalnej i lokalnej, [in:] Z. Strzelecki (ed.) Gospodarka

regionalna i lokalna, PWN, Warszawa 2008. Kruk H., Zrównoważona konkurencyjność regionów – ujęcie teoretyczne [in press]. Kruk H., Waldziński D., Rozwój zrównoważony i konkurencyjność regionów – rozważania teore-

tyczne, [in:] R. Brol (ed.), Problemy rozwoju regionalnego, Prace Naukowe Uniwersytetu Eko-nomicznego we Wrocławiu nr 110, Wrocław 2010, pp. 87–96.

Lambregts B., Janssen-Jansen L., Haran N., Effective governance for competitive regions in Europe: the difficult case of Randstad, Geojournal 2008, vol. 72, pp. 45–57.

Piontek B., Koncepcja zrównoważonego rozwoju Polski, PWN, Warszawa 2002. Porter M.E., On Competition. Updated and Expanded Edition, A Harvard Business Review Book,

2008. Porter M.E., van der Linde C., Green and competitive: ending the stalemate, Harvard Business Re-

view 1995, September-October, pp. 120–134. Rogall H., Ekonomia zrównoważonego rozwoju. Teoria i praktyka, Zysk i S-ka, Poznań 2010. Simmie J., Martin R., The economic resilience of regions: Towards an evolutionary approach, Cam-

bridge Journal of Regions, Economy and Society 2010, vol. 3, pp. 27–43. Swanstrom T., Regional Resilience: A Critical Examination of The Ecological Framework, MacAr-

thur Foundation Research Network on Building Resilient Regions, Institute of Urban and Re-gional Development, University of California, Berkeley 2008.

Swanstrom T., Chapple K., Immergluck D., Regional Resilience in the Face of Foreclosures: Evi-dence from Six Metropolitan Areas, MacArthur Foundation Research Network on Building Re-silient Regions, Institute of Urban and Regional Development, University of California, Berkeley 2009.

Vatn A., Valuing forest ecosystems – an institutional perspective, [in:] S. Kent, R.A. Berry (eds.), In-stitutions, Sustainability and Natural Resources. Institutions for Sustainable Forest Management, Springer Netherlands, 2005.

REZYLIENCJA, KONKURENCYJNOŚĆ I ROZWÓJ ZRÓWNOWAŻONY REGIONÓW – PODOBIEŃSTWA I RÓŻNICE

Streszczenie: Współcześnie do najczęściej spotykanych koncepcji powiązanych z teorią rozwoju regionalnego można zaliczyć: konkurencyjność regionów, rozwój zrównoważony oraz rezyliencję regionów (tj. zdolność do adaptacji do zachodzących zmian, umiejętność radzenia sobie z pojawiającymi się trudnościami). Celem artykułu jest analiza porównawcza definicji, celów i czynników determinujących te trzy koncepcje oraz próba znalezienia po-dobieństw i różnic między nimi.

Słowa kluczowe: region, konkurencyjność, rezyliencja, rozwój zrównoważony.



Andrzej Sztando Wrocław University of Economics

REGIONAL INNOVATION STRATEGY IMPLEMENTATION – SYSTEM MODEL COVERING THE RESULTS OF THE ANALYSIS OF THE POLISH EXPERIENCE

Summary: The paper discusses problems referring to regional innovation strategies (RIS) implementation. Its introductory part presents the rationale for the construction of the RIS implementation system model and its project assumptions. The paper’s main part illustrates the discussed model design. Its institutional components, their functions and mutual rela-tions are described by the author. The paper concludes with suggestions for the discussed model’s practical application.

Keywords: innovation, region, strategy, regional innovation strategy, Poland.

1. Introduction

Regional innovation strategies (RIS) represent planning documents aimed at both the determination and coordinated implementation of deliberately selected activities focused on raising the level of innovation in a particular region. They have been prepared by the regional authorities of different countries, mostly European, since the mid-1990s. In Poland this process began in 2003. Today, after eight years, and having gathered extensive experience in this matter, it is not only justified, but also desirable, to assess the selection of targets and tasks they define, the effectiveness and efficiency of the structures applied for their achievement and realization, as well as for the due implementation procedures. The reason for such an assessment is to improve the knowledge about the regional, strategic innovation’s construction in order to take advantage of and apply it while working on subsequent RIS strategies, not limited only to Poland.

The Department of Regional Economy at the Wrocław University of Economics performed one such assessment in the period 2009–2011, within the framework of the research project entitled: “Innovation of the European regional

44 Andrzej Sztando

space vs. the dynamics of regional economic development”. One of its components was the assessment prepared by the author regarding Polish RIS implementation [details in: Sztando 2010a]. It points to the defects of these systems1 and, in its final part, presents the hypothesis regarding the possibility of a model solution construction in the area under discussion which, after appropriate adaptation and taking into account regional conditions, could be applied in practice. This hypothesis constituted due guidelines for further investigation, the objective of which was to create and verify the practical usefulness of such a model. In order to meet the objective of its first part, the concept of such a model was developed by the author. In the process of its establishment, the systemic analysis and descriptive analysis application results used in the process of the above mentioned assessment, were taken advantage of along with logical and situational analysis. The primary building block of the discussed concept were the author’s experiences gained during several years of participation in the processes of local and regional development strategies’ construction and implementation for forty units of territorial self-governments, while its secondary component was made up of the European standards referring to RIS implementation, the analysis of which was carried out by the author as a separate topic of the research project mentioned above [details in: Sztando 2010b]. The purpose of this article is to present this concept. The author also wishes to emphasize that, due to the limited framework of this study, the presentation of the following model, as a result of the above-mentioned efforts, is purely schematic.

2. Assumptions

The model construction required a number of assumptions. The first of these refers to the core concept, i.e. the nature of RIS. According to the author, it should be perceived in two ways simultaneously, i.e. in terms of its functional and instrumental qualities. If observed from the functional point of view, it represents a long-term, complex and multi-faceted plan of regional self-government public intervention in market processes in order to raise the level of innovation applicable to the region. On the other hand, from an instrumental perspective, it is the concept of systemic activities focused on achieving the attainable goals related to regional innovation, through the execution of particular tasks, using measures that are, or will be, available to the actors involved in the implementation of this strategy. Following this provision, it was assumed that RIS is based on the classic, hierarchical internal structure, in which operational objectives are assigned to strategic ones and constitute their components or stages on the path leading to their

1 The defects of Polish RIS were also identified by other research teams, see e.g. [Gorzelak et al.

2006].

Regional innovation strategy implementation... 45 achievement. Operational goals, on the other hand, are subordinated to specific interventions (strategic tasks), the implementation of which brings about the same effects as these resulting from accomplishing operational objectives and indirectly the strategic ones.

The second assumption refers to the subject matter of the RIS implementation concept. According to it, there is a defined set of operations for: – the achievement of objectives put forward in it, in particular through the

implementation of investment projects, services, financial, administrative, organizational and law-making activities it covers,

– coordination in space and time of the above projects’ implementation, – monitoring of the above projects’ implementation and verification of its

objectives level accomplishment, – monitoring and correcting steps for the implementation arrangement, – monitoring RIS current practical reference and performing its due corrections.

The next assumption refers to planning and implementing entities. It is based on the standpoint that regional self-government represents the main planning subject, i.e. voivodeship self-government in the Polish case, which also serves as the RIS lead contractor, as well as the initiator, coordinator and the support source for a limited number of its partners responsible for co-creating and co-executing it. It is legally justified, it has due powers and resources and is also obliged to do so, both formally2 and – under the new paradigm of regional development – expected by the regional community and supra-regional authorities (state government and international organizations authorities, e.g. the EU). The above mentioned partners are represented by entities which have formally undertaken to participate in the planning process and the co-realization of individual projects included in RIS. The primary responsibility for its construction and implementation is therefore taken by regional self-government. For this reason, due resolutions are passed by the regional parliament and carried out by the regional management board, using the available instruments. The implementation must, therefore, be primarily based on the legal and financial solutions at the disposition of the regional self-government.

The meaning of RIS implementation procedure and RIS system implementation concepts has also been assumed. It was decided that this procedure is represented by a variable algorithm, auto-adaptive and open to the interference of entities applying it, of activities involved in the implementation process. Together with these entities it creates the above-mentioned system.

2 In accordance with Article. 11, paragraph 1, item 3 of the Law on regional self-government

dated 5 June 1998, this self-government defines regional strategy development, in particular taking into account the objective of raising regional economy innovation level, while in accordance with Ar-ticle 11, paragraph 2, item 6 of this Act, it follows such regional development policy which includes, among others, innovation fostering.

46 Andrzej Sztando

3. The system model and the functions performed

by its components

Having assumed the above, the model of the Polish RIS implementation system was constructed based on two groups of elements. The first group is represented by the implementing entities. These are as follows: regional self-government (within its framework there are implementing and executive bodies), its organizational units and companies, as well as strategic cooperation partners, such as other territorial self-governments (understood as the systems of local authorities), businesses, institutions for science and education, government administration units, and NGOs. The second group is made up of connections between these entities and activities carried out by them within the framework of RIS implementation, in particular by the primary entity, namely the regional self-government.

The first of the two characteristic qualities of the system, is the fact that it works for the purposes of RIS direct beneficiaries, which may include economic entities, NGOs, territorial self-governments (understood as corporations of residents), scientific and educational institutions, as well as natural persons. Therefore, the beneficiaries represent clients of the system and the system does not work for its own sake, even though a situation is possible when a particular entity functions simultaneously as the implementing entities group member and as the beneficiary. The second characteristic quality is the identity of the beneficiaries’ advantages resulting from the benefits offered to them by the system implementation, including – specified during the RIS construction phase as its goals – changes in the regional economy and regional community. In other words, while carrying out tasks for the benefit of the regional community and economy, the implementation system results in basic operational goals achievement, and indirectly, by means of them, also meeting the strategic objectives.

The roles played by different institutional actors of the system substance are discussed below. The regional self-government executive body is of crucial importance for it. This results from the functions it exercises, namely planning, cooperation, coordination, resources management, promotion, as well as monitoring and evaluation. Due to the complexity of the activities related to their execution it performs them mostly through the managing unit, i.e. the chosen organizational structure component of the marshal’s office, or by means of another entity, such as a local government company, or even a financially and administratively independent business. Nevertheless, the largest share of responsibility for the RIS implementation system functioning, and especially for its effectiveness and efficiency, rests on the regional self-government executive body, just like some of the activities which make up the above functions.

The planning function consists in preparing, by the entity responsible for project management, the realization of particular activities (tasks), which are covered by RIS,

Regional innovation strategy implementation... 47 and commissioning them to self-government subsidiaries or to external contractors, with a comprehensive supervision of their preparation to follow.

The co-operative function should be understood as delegating tasks included in RIS to individual contractors and also an ongoing cooperation with them for the entire duration of such implementation. As in the case of the planning function, these may be regional units or companies, as well as independent entities. The latter, taking the role – usually by agreement – of implementing or co-implementing entities, are incorporated into the system as strategic cooperation partners. They include e.g. businesses, local self-governments or NGOs. Moreover, the cooperative function is based on working together with these entities which do not perform tasks but, in a different way, support or allow their implementation. The providers of financial resources may serve here as examples (e.g. entities distributing EU funds), information resources (e.g. entities providing public statistics) and information distribution systems (e.g. the media). Despite their participation in RIS implementation, they are not referred to as the discussed system components and therefore they retain the title of entities against the outside ones. The function under analysis also covers the identification of potential partners and the assessment of any proposals for co-operation put forward by the system outsiders.

The consequence and extension of the former is the coordination function. It covers the ongoing monitoring and documentation of activities carried out by all the remaining actors involved in the implementation, passing on instructions and information resulting from this monitoring and the issuance of due dispositions – if there occurs any corresponding legal relationship with the discussed, central body of the system. The effectiveness and efficiency maximization of the implementation oriented activities, by coordinating them in temporal, spatial and institutional dimension, becomes the prerequisite for this function fulfilment.

Another function, referring to resources, applies exclusively to the executive body and consists in transferring to the managing entity and the involved regional self-government units, companies and also to the strategic cooperation partners, the indispensable material resources, including financial means in particular, to perform the due tasks. Obtaining such resources in various ways, e.g. in the form of grants, credits, or public-private partnership also represents an integral component of this function.

Another function, the promotional one, consists in efforts to disseminate information about RIS content and taking up activities carried out within the course of its implementation where entrepreneurs, individuals considering undertaking business activities, innovation creators and owners of intellectual property become its primary addressees. The reason for performing this function is the desire to enlarge the group of strategic tasks beneficiaries. Promotion also means the transmission of information streams addressed to the broadly understood public

48 Andrzej Sztando

opinion and designed to induce their impression that the system is working effectively on their behalf by means of pro-innovative regional economic development stimulation.

The monitoring and evaluation function refers to activities aimed at finding out about the results and determinants of RIS implementation. In consequence it means correcting the regional self-government executive body and its managing entity performance, as well as correcting activities and the composition of the implementation system remaining entities, their function and mutual relations. In this part, the purpose of this function refers to the high efficiency and effectiveness of RIS implementation. In addition to the above, this function also includes regional innovation level observation, the state of the associated internal regional structures, external determinants of regional innovation and the construction of these components’ changes foresight, resulting in the preparation of draft revisions or overhaul RIS changes, even before the end of its timeframe. This part is therefore focused on assigning the feedback quality to the implementation system which links the regional system of pro-innovation planning with the effects of its pro-innovative intervention. In both areas, this function may be carried out by the above-mentioned executive body and management entity directly, meaning independently, or indirectly, i.e. in the form of an audit performed by an external entity.

The self-government legislative body not only makes decisions that significantly affect the ability of the executive body to fulfil obligations contained in RIS, but also independently decides on the actions serving this purpose. On the other hand, as the controlling body at the same time, it is involved in the evaluation of implementation efforts undertaken by the executive body. More specifically, the role of the local parliament in the implementation system is as follows: expedient making of resolutions to ensure legal and financial conditions for the implementation, presenting opinions and influencing planning documents by making their content more detailed, ensuring its compliance with other resolutions and participation in its promotion and evaluation.

Organizational units and regional self-government companies play, in the discussed system, mainly the role of particular strategic tasks executors. It should be emphasized that this realization in practice can mean self-contained, comprehensive carrying out due task, or acting as their co-executors performing any of the related activities. It may also consist in playing the function – against the other tasks’ executors – of a financing source, professional or personnel support, informational, legal or non-financial resources. Apart from this they also conduct promotional activities regarding benefits provided to direct beneficiaries, however, this takes place mostly when they act as the exclusive tasks’ executors. The discussed units and companies may also become information sources applied in the above illustrated monitoring and evaluation process, as well as function as centres performing advisory or controlling functions in relation to the remaining

Regional innovation strategy implementation... 49 institutional components of the system. It should be emphasized that the implementation system can be based on units and companies already in operation before it was initiated, but also on the newly established ones, appointed to carry out projects it covers.

Strategic cooperation partners are responsible for similar roles. While remaining formally and legally independent from the managing entity, they may act as co-authors of the newly appointed RIS bodies, representing the regional self-government ownership (e.g. companies, foundations), the sources of information and professional support to other entities of the system implementation, as well as – based on adequate agreements – function as co-executors or independent contractors of the tasks under implementation.

As mentioned earlier, the system is made up of not only its components and tasks they perform, but also of mutual interaction entered into by these elements. Having applied the criterion of related entities participation in the implementation system, they may be divided into internal and external ones. The group of internal links consists of three kinds. The first represents task oriented relations resulting from an extremely desirable, formalized and transparent assignment of each RIS project to at least one of the system covered entities. There is no unique definition of responsibility, and thus resources’ allocation or activities’ monitoring, since this could result in the failure of many of these projects, or their suboptimal realization. Instructions or agreements represent a certain legal expression of these relations. They primarily combine the regional self-government executive body and its managing entity with the local self-government units and companies as well as strategic cooperation partners.

Material relations represent the second type of internal links. They are the consequence of task oriented relationships manifested by financial liabilities and the obligations to provide or make available the necessary material resources in order to implement the assigned tasks. They are group links, the value of which determines the possibilities for RIS objectives accomplishment. As for their subjective dimension, they combine the system entities in a similar manner as the previous relationships.

Information streams constitute the third category of internal links. They contain all data for the implementation process’ proper organization. As opposed to the previous two, they cover all system actors by means of bilateral connections or even multilateral ones, however, it is also here that the relations between an executive and managing body and the remaining implementation procedure participants are the dominating ones.

The external links of the implementation system can also be divided into three groups. The first combines organizational entities and regional self-government companies constituting its part, as well as the strategic cooperation partners with direct beneficiaries. It manifests itself in the form of agreements with beneficiaries

50 Andrzej Sztando

and services carried out for their benefit. Therefore these relations act as the derivative of particular benefits and so they are of e.g. a financial, informational, personnel or material oriented nature.

The second group is of a financial nature and involves two sub-groups of links. These are relations with entities providing direct funding sources for tasks carried out within the framework of RIS (e.g. banks, foundations, equity investors or state authorities and their agencies responsible for state budget means distribution) and also the relations with public governance and implementation institutions participating in the distribution of means used in RIS implementation and constituting the component of financing programs, mainly from the EU budget [for details see: Sztando 2010c]. All of the system entities may be involved in each of these links, except for interactions with state authorities and its agencies, which applies to the regional self-government executive body and is typical for the regional contract.3

Finally, the third group covers information oriented links connecting each implementation system actor with the media. They are applied to RIS activities promotion addressed to direct beneficiaries, for influencing public relations covering the system participants and mainly including regional self-government authorities, as well as for obtaining favourable RIS publicity.

4. Final remarks

The author is convinced that the presented model can become one of the starting points, initiating work on the construction of subsequent, not only Polish, RIS. According to his concept, the implementation of such a strategy is not necessarily narrowed down to the area of regional self-government structure, since it takes advantage of independent units potential as crucial for the development of a regional innovation system and for the diffusion of innovation oriented processes in the region. At the same time, the regional, self-government leader is visible in the overall system and its responsibility for RIS implementation. Taking into account the so far gained implementation experiences of all Polish regions, as well as the author’s research results and experience in the area of different development strategies implementation for dozens of territorial self-government units, the above presented solution seems the optimum one. In addition, the conducted literature studies indicate that it follows the current stream of models adopted for the purposes of RIS in other European Union countries [see e.g. Morgan, Nauwelaers (eds.) 2003; Cooke, Heidenreich, Braczyk (eds.) 2004; Cooke, Morgan 2003].

3 This is an agreement between Polish government and regional self-government which aims at

the state support for certain projects resulting from regional strategies and programs.

Regional innovation strategy implementation... 51 References

Cooke P.N., Heidenreich M.H., Braczyk J. (eds.), Regional Innovation Systems. The Role of Govern-ance in a Globalized World, Routledge, London 2004.

Gorzelak G., Bakowski A., Kozak M., Olechnicka A., Polskie regionalne strategie innowacji: ocena i wnioski dla dalszych działań, Regional Studies Association – Sekcja Polska, Warszawa 2006.

Morgan K., Nauwelaers C. (eds.), Regional Innovation Strategies. The Challenge for Less-Favoured Regions, Routledge, London 2003.

Sztando A., Analiza porównawcza i ocena systemów wdrażania regionalnych strategii innowacji, [in:] D. Strahl (ed.), Innowacyjność europejskiej przestrzeni regionalnej a dynamika rozwoju gospo-darczego, Wrocław University of Economics, Wrocław 2010a, pp. 192–223.

Sztando A., Regionalne strategie innowacji w wybranych krajach europejskich – rekomendacje dla Polski, [in:] D. Strahl (ed.), Innowacyjność europejskiej przestrzeni regionalnej a dynamika roz-woju gospodarczego,Wrocław University of Economics, Wrocław 2010b, pp. 274–295.

Sztando A., Program Operacyjny Innowacyjna Gospodarka (POIG) jako źródło wsparcia regionalnych strategii innowacji, [in:] D. Strahl (ed.), Innowacyjność europejskiej przestrzeni regionalnej a dy-namika rozwoju gospodarczego, Wrocław University of Economics, Wrocław 2010c, pp. 258–273.

The Act on regional self-government dated 5th June 1998, Official Gazette of 2001, No. 142, item 1590, as amended.

WDRAŻANIE REGIONALNEJ STRATEGII INNOWACJI – MODEL SYSTEMU STANOWIĄCY REZULTAT ANALIZY POLSKICH DOŚWIADCZEŃ

Streszczenie: Artykuł poświęcony jest zagadnieniom wdrażania regionalnych strategii in-nowacji (RSI). Jego wprowadzająca część prezentuje przesłanki stworzenia modelu systemu wdrażania takiej strategii oraz jego założenia. Główna część artykułu zawiera opis projektu takiego modelu. Autor opisuje jego instytucjonalne komponenty, ich funkcje oraz wzajemne relacje. Końcowa część pracy zawiera sugestie dotyczące praktycznej aplikacji tego modelu.

Słowa kluczowe: innowacje, region, strategia, regionalna strategia innowacji, Polska.



Andrzej Raszkowski Wrocław University of Economics

CREATIVITY IN THE CONTEXT OF REGIONAL DEVELOPMENT – SELECTED ISSUES

Summary: This study discusses problems referring to the selected aspects of creativity in relation to regional development. Its first part illustrates theoretical aspects of creativity and regional development. Creativity was defined as the source of innovation, tolerance and social sensitivity in the process of territorial units’ socio-economic growth. Next, basic assumptions of the 3T concept by Richard Florida were characterized. Factors referring to creativity and exerting potential impact on regional growth were presented, e.g. culture and art, place brand, innovation, tolerance, talent, regional identity. Selected creative industries, stimulating regional development, were also discussed among which the following were listed: advertising, architecture, art and antiques, publishing, film industry, fashion design, music industry, radio and TV.

Keywords: creativity, regional development, innovation, 3T concept, creative industries.

1. Introduction

Nowadays we are faced with a whole spectrum of phenomena which make us search for new methods and concepts capable of influencing the development of such a complicated system as represented by a region. The globalization of the economy, new consumption patterns, an individual approach towards consumers’ needs, the changing demographic situation, the advancing impact of culture and art on the perception of the surrounding reality, the growing aspirations of regional communities’ representatives, intensified competition by other territorial units in both a national and international dimension, fluctuations in finance markets, crisis of confidence in the political and business elites, the need for entering into cooperation with other regions in the process of more extensive development projects’ implementation – represent phenomena occurring within these processes.

Creativity, including the overall complexity of the defining concepts, seems one of the more interesting and relatively new areas analyzed in this context, which

Creativity in the context of regional development... 53 may be applied as dynamic stimulants of regional socio-economic growth. This approach originates from following modern, non-material factors of regional development which gradually substitute classical, hard factors deciding about successful economic rivalry. Creativity also transfers human capital, currently perceived as the key development factor, into another level of functioning, at which it is transformed into creative capital.

The objective of this study is an attempt to discuss selected aspects of creativity in relation to regional development, with particular consideration of the components underlying creativity and exerting an impact on the above mentioned development.

2. Theoretical aspects of creativity and regional development

Creativity may be understood e.g. as a mental process leading towards the creation of new ideas, concepts or associations, as well as relations with already existing ideas and concepts. Creative thinking represents a type of mental process which results in obtaining original and useful solutions. Creativity consists in the adequate integration of individual skills in order to concentrate them on a, so far, unexplored path and in this way establish a completely new value.

The above presentation of the concept of creativity is of particular importance in the context of territorial units’ development. In the swiftly changing and turbulent environment of contemporary organizations, countries or regions, the ability of flexible adjustment to the occurring situation, an opportunity for taking advantage of an extensive palette of potential solutions may result in strengthening both the competitive advantage and attractiveness of a particular place.

Yet another, frequently occurring, phenomenon is the perception of creativity in the category of an individual talent manifesting itself in the capacity for generating new ideas, concepts and non-standard solutions, sometimes coming up in unexpected moments and originating inside the human mind [Green 2010, p. 4]. Professional literature also offers examples of concepts combining creativity with inborn motivation, which activates performance aimed at the set target’s accomplishment opening up the way to both creative approach and solutions [Hennessey, Amabile 1988, p. 13; The Impact of Culture... 2009, p. 22]. Growth based on creativity may also support enhancing self-esteem which, following the feedback principle, will facilitate such development [Todaro, Smith 2009, p. 22].

In the process of theoretical considerations over creativity, one should not forget about openness of mind, tolerance and social sensitivity as the crucial elements of processes focused on the quality improvement of social life and understood as the combination of material aspects of life with less tangible items referring to the feeling of comfort, satisfaction, pride of the position accomplished in both private and professional dimension [Yuan, Yuen, Low 1999, pp. 3–4; Clark, Huxley, Mountford 2010, p. 22].

54 Andrzej Raszkowski

Based on the discussion presented so far, one may assume that creativity has a

positive influence on the innovative processes by stimulating value creation in certain economic and social areas. However, it also has to be pointed out that one of the more important effects resulting from the above mentioned innovation processes should be the supply of innovative technologies and services to the final recipient, thus confirming the usefulness of initiatives undertaken in the context of socio-economic growth support. Innovations appear more frequently when one is open to new influences, market trends and a constructive dialogue is initiated with entities functioning in the proximal and distant environment, having incorporated potential innovation recipients and competitors in this process [Chesbrough 2003, pp. 43–44]. Supporting the creation of innovative, specialized, constructive knowledge is highly advisable for the purposes of the construction of absorption capacity, which may facilitate integration with global knowledge and result in innovative products and services development.

It has to be emphasized that creative personalities seem particularly desirable and sought after and may bring extensive input in the development processes occurring within territorial units, which should take advantage of such creative potential owing to its role in solving civilization’s problems, generating new pro-development policy, stimulating economic processes, strengthening social tolerance as well as creating and implementing innovative solutions in both the social and economic sphere [Hall 2000, p. 33].

Providing the definition of regional growth turns out a relatively difficult task since this category has already been broadly theoretically discussed. For the purposes of this study certain selected and simplified approaches towards regional development characteristics will be presented.

Regional development can be understood as the transformation in regional productivity measured by the size of population, employment rate, income level and production added value. Regional growth also covers social development understood as the level of heath care, wealth, prosperity, environment quality and creativity. The complex nature of regional development results in the fact that it is an outcome of activities simultaneously carried out by diversified entities representing public authorities, enterprises, organizations and the regional community. The processes identified within the framework of regional development, on the one hand constitute the effect of microeconomic activities occurring in the market economy, however, on the other, result from targeted operations performed by public entities responsible for regional policy establishment.

The condition facilitating ongoing regional development is defined as the long-term integrity and co-dependence of all its subsystems, i.e. economic, social, natural, institutional and political [Sepulveda, Edwards 1995, pp. 13–15]. This is manifested in a material way by means of proper usage and management of a given space. The definition of continuous sustainable development, regarding its quality,

Creativity in the context of regional development... 55 may be understood as a vision or a signpost of long-term growth. With reference to real life practice, the activities undertaken by public authorities are expressed by defining strategic goals which should be verified by specific operational measures.

Regional growth should be identified with socio-economic development occurring in a region and referred to as the increase of regional economic potential manifesting itself by the improved living standards of its inhabitants and a higher level of competitiveness.

It may be assumed that the concept of regional growth is frequently used for the presentation of multidimensional quantitative and qualitative transformations in a regional territorial cross-section of the country. The complex identification of regional development represents a complicated and manifold process. In its theoretical and practical aspect, regional development is mainly identified with an increase of relative regional importance in both a national and international perspective, with higher management efficiency (optimization of conditions for running a business), with better living standards of its inhabitants, as well as with reducing interregional development differences [Pike, Rodriguez, Tomaney 2006, p. 7]. The new regional development paradigm emphasizes the key role of scientific and technological development enhancement tendencies by recognizing the overriding role of such factors as human capital, knowledge, research, creativity and innovation [Stimson, Stough, Roberts 2006, p. 388].

3. Creativity for regional development

One of the more interesting approaches indicating the significance of creativity with reference to the socio-economic development of territorial units is represented by the 3T concept (Technology, Talent, Tolerance) by Richard Florida. Among the crucial assumptions of this concept, the approach to human creativity as the basic source of the above mentioned development plays the key role. It has to be underlined that the 3T concept is well adjusted to the previously presented theoretical aspects of creativity since it arranges, in an orderly manner, its particular dimensions and facilitates attempts to measure it. The Global Creativity Index represents an exemplary tool for such measurement, which refers to monitoring changes in the area of the creative economy in several dozen countries worldwide. Owing to its cyclical nature, a relatively broad spectrum of factors taken into consideration in the creative process and its territorial range, the index may be referred to as one of the more interesting initiatives related to analyzing territorial units’ creativity, i.e. countries – in this case [Florida et al. 2011, pp. 3–4]. Regarding the 3T concept itself, in general terms the countries or regions which aspire to the position of creative ones and thus faster developing, competitive and attractive in the global market, should invest in new technologies, innovations, education and the development of their citizens as well as respecting their


differences and showing tolerance. Following Florida’s concept, human capital is no longer observed in the traditional way as the source of entrepreneurship and economic growth, but is substituted by creative capital [Oort, Raspe 2007, p. 282].

The assumptions of the 3T concept emphasize creativity, as opposed to traditional production factors, as an inexhaustible and renewable source undergoing continuous improvement. It is assumed that each and every unit may be creative, our development and wellbeing do not depend on obtaining knowledge reserved for selected groups only, but on releasing creativity resources ingrained in every human being. It is assumed that in the end it is human knowledge, skills, creativity and aspirations which decide about the attractiveness of any particular place, and establish its tourist, cultural, market, social and political potential [Anholt 2007, p. 75]. It is also emphasized that all three Ts are crucial and keep strengthening one another for the benefit of growth and construct a network of relations stimulating creativity. Strengthening just one factor may turn out to be insufficient for the accomplishment of particular developmental objectives.

Figure 1. Factors related to creativity and potentially influencing regional development

Source: own elaboration based on [Florida 2002; Florida 2005].

Regarding the partly characterized 3T concept, one should take a closer look at a wider range of factors, directly or indirectly related to creativity, with reference to regional development (see Figure 1). Among these factors, an undoubtedly important role is played by culture and art. The increase of human activities in these areas becomes frequently identified with stimulating growth incentives leading towards regional space development. At the same time, new production, distribution and consumption methods may be observed, which result in a higher demand for culture as well as new products and services as its direct impact

Regional development

Culture and art

Place brand

Innovations (including technologies)

Talent

Tolerance

Regional identity

Creativity in the context of regional development... 57 [Norrman (ed.) 2006, pp. 6–7]. Once an assumption is accepted that our existence is more and more focused on consumption and societies are ideologically driven, culture and art seem to be distinctive determinants which motivate towards undertaking certain actions and activate the resources of human entrepreneurship.

Place brand, in this perspective, refers mainly to creating unique, positive experiences in the minds of potential clients as certain space users [Cigler 2008, p. 315]. In other words, people inhabiting places, the brand of which has already been well established, commonly recognized as well organized and managed, declare themselves as happier compared to populations inhabiting other regions and, at the same time, they present a higher creativity, cognitive desire, the need for improving their skills, extending knowledge and openness. Such a situation facilitates, in a natural way, their involvement in activities aimed at strengthening their territory’s development.

In recent years, numerous studies have been published which present the role of innovative technologies, products and services in regional development. Beyond any doubt, creativity does help in breaking away from mental patterns of regional communities used to the existing order and established rules. It allows to move to another level of thinking, in which innovations influence regional development and result in a higher quality of social life.

A certain simplification may be adopted where regional identity represents the feeling of identification with a particular fragment of space which we observe as part of ourselves. It is also emphasized that the existence of an emotional bond with a particular place, the surrounding landscape, the community residing in a given area, the products of material and spiritual culture represent important determinants of territorial identity [Deffner, Mataxas 2010, p. 50] as well as the broadly understood cultural heritage [Miranda, Adib 2007, p. 19]. A high level of regional identity facilitates establishing creative attitudes, unleashes human potential and besides the identity itself is invaluable for regional growth. An emotional bond with a particular place enhances the probability of undertaking development supporting activities.

Such factors as talent and tolerance result directly from the earlier presented 3T concept. It may be assumed that the indirect impact of these factors on regional growth originates from the associated, larger dose of optimism, acceptance for diversification, openness of mind, and creative inspirations of creative society’s representatives who are supposed to represent stimulating agents for socio-economic development [Boschma, Fritsch 2007, p. 3].

The theory combining creative industries’ development with regional growth has also become more and more popular. Creative industries, following one of the more popular definitions, can be characterized as activities resulting from individual creativity, skills and talent, which present the potential for establishing new jobs and wealth by generating and implementing intellectual property [Investing in Creative


Industries... 2009, p. 4]. It is assumed that creativity is the major factor of creative industries’ manufacturing process, while intellectual property is a characteristic quality of its effect. The compilation of creative industries comprehensive overview is a matter for discussion. It results, to a great extent, from the available statistical classifications allowing for the construction of a comparative database of creative industries occurrence in particular regions or countries. The approach towards creative industries defining certain flexibility is also applied, which results from the specific and diversified nature of the activities conducted in a particular territory.

Figure 2. Selected creative industries stimulating regional development

Source: own elaboration based on [Investing in Creative Industries... 2009; Creative Industries Map-ping... 2001].

Apart from the most often listed creative industries (see Figure 2) exerting an impact on regional development, the overview is frequently extended by activities related to museums, theatre, opera, performing arts, tourism, computer games and software, designing services, pattern design and handicraft. Within the framework of a different division suggested by Dutch authorities, all domains of culture are suggested to be divided into three groups: art (e.g. performance arts and photography, visual arts and artistic events), media and entertainment (e.g. film industry, audio-visual sector, literature and journalism), creative business services (e.g. design, fashion, architecture, computer games market, advertising) [Our Creative Potential... 2005, pp. 14–15].

An attempt to analyse the potential influence of creative industries on regional development seems more interesting. It is assumed, based on British experiences [Investing in Creative Industries... 2009, p. 6] that investments in creative industries

Regional development

Music industry

Publishing

Fashion designing

Radio and TV

Film industry

Advertising Art

and antiques Architecture

Creativity in the context of regional development... 59 result in higher productive capacity. The gross value added, i.e. the value of all goods and services produced by all national entities less costs related to their manufacturing, presenting increased value of goods in a given period of time, generated by creative industries, grew in Great Britain by 4% in the period 1997–2006, compared to a 3% increase in the overall economy. A similar situation in the analysed time period, was observed in relation to establishing new jobs. The increase in employment in creative industries was twice as high compared to the total economy growth, respectively 2% and 1%.

Creative industries are observed as an important source for generating innovation, which on the other hand may result in opening new sales markets, production capacity increase, higher work efficiency and the increased competitiveness of entities offering innovative products and services, which taken together, stimulate regional development. Additionally, creative enterprises, as innovators in their sectors, disseminate innovative solutions by means of contacts with business partners.

Another phenomenon supporting the favourable impact of creative industries on regional development becomes their impact on material and social regeneration, revitalization, renovation of regional space, as well as strengthening social cohesion, having assumed that the projects resulting from activities performed within the scope of creative industries are placed in regional conditions and reality. Finally, creative industries are observed as sources of regional inhabitants’ life quality improvement and investment attractiveness.

4. Final remarks

In conclusion, it may be assumed that creativity does represent the crucial component facilitating the intensification of regional development. Its value is manifested by a broad spectrum of influences referring to diverse areas of human activity. Activating human creativity and the implementation of its effects, in the context of regional communities’ improvement of quality of life, seems one of the most important challenges of contemporary economy and social policy. Creativity is noted as an inexhaustible resource constituting, at the same time, the main source responsible for generating innovation, useful solutions, as well as an integral part of covering culture and art by business processes.

With reference to the discussed business sectors, observed as the driving agents of contemporary regional development, the largest difficulty is associated with their proper definition, specification and comparability based on the available statistical database. Apart from theoretical considerations, based on available studies, it may be concluded that they are undoubtedly these sectors and branches which feature extensive developmental potential, especially in times of economic downturn.


References

Anholt S., Competitive Identity. The New Branding Management for Nations, Cities and Regions, Palgrave Macmillan, New York 2007.

Boschma R., Fritsch M., Creative class and regional growth – empirical evidence from eight Euro-pean countries, Jena Economic Research Papers 2007, vol. 66.

Chesbrough H., Open Innovation. The New Imperative for Creating and Profiting from Technology, Boston, Harvard Business School Press, Boston 2003.

Cigler B., Economic development in metropolitan areas, [in:] D. Hamilton, P. Atkins, M.E. Sharpe (eds.), Urban and Regional Policies for Metropolitan Livability. Cities and Contemporary Soci-ety, New York 2008.

Clark G., Huxley J., Mountford D., Organizing Local Economic Development: The Role of Develop-ment Agencies and Companies, OECD Publishing, Paris 2010.

Creative Industries Mapping Document, Department for Culture, Media and Sport, London 2001. Deffner A., Mataxas T., Place marketing, local identity and branding cultural images in Southern

Europe: Nea Ionia, Greece and Pafos, Cyprus, [in:] G. Ashworth, M. Kavaratzis (eds.), Towards Effective Place Brand Management. Branding European Cities and Regions, Edward Elgar Pub-lishing, Cheltenham 2010.

Florida R., The Rise of the Creative Class: and How It’s Transforming Work, Leisure, Community and Everyday Life, Basic Books, New York 2002.

Florida R., Cities and the Creative Class, Routledge, London/New York 2005. Florida R., Mellander C., Stolarick K., Silk K., Matheson Z., Hopgood M., Creativity and Prosperity:

The Global Creativity Index, Martin Prosperity Institute, Rotman School of Management, Uni-versity of Toronto, Toronto 2011.

Green A., Creativity in Public Relations, Kogan Page Publishers, London 2010. Hall P., Innovative cities, [in:] L. Hagbarth (ed.), Structural Change in Europe. Innovative Cities and

Regions, Hagbarth Publications, Bollschweil 2000. Hennessey B., Amabile T., The conditions of creativity, [in:] R.J. Sternberg (ed.), The Nature of

Creativity: Contemporary Psychological Perspectives, Cambridge University Press, New York 1988.

Investing in Creative Industries. A Guide for Local Authorities, Department for Culture, Media and Sport, Local Government Association, London 2009.

Miranda C., Adib A., Sustainable Development and the Territorial Approach: Identities and Typolo-gies, Comuniica, Inter-American Institute for Cooperation on Agriculture, May-August, Third Year, 2007.

Norrman K.E. (ed.), Culture, the Heart of Knowledge-Based Economy. The Strategic Use of Culture in European Project, European Cultural Parliament – Lisbon Agenda Research Group, The Bank of Sweden Tercentenary Foundation, Tuscany 2006.

Oort F., Raspe O., Urban heterogeneity in knowledge – related economic growth, [in:] J. Surinach, R. Moreno, E. Vaya (eds.), Knowledge Externalities, Innovation Clusters and Regional Devel-opment, Edward Elgar Publishing, Cheltenham 2007.

Our Creative Potential. Paper on Culture and Economy, Ministry of Economic Affairs, Ministry of Education, Culture and Science, Hague 2005.

Pike A., Rodriguez A., Tomaney J., Local and Regional Development, Routledge, New York 2006. Sepulveda S., Edwards R., Sustainable Regional Development Methodologies for Microregional Diag-

nostics. Literature Review, Inter-American Institute for Cooperation on Agriculture, San Jose 1995. Stimson R., Stough R., Roberts B., Regional Economic Development. Analysis and Planning Strat-

egy, Springer, Heidelberg 2006.

Creativity in the context of regional development... 61 The Impact of Culture on Creativity, a study prepared for the European Commission (Directorate –

General for Education and Culture), KEA European Affairs, Brussels 2009. Todaro M., Smith S., Economic Development, Pearson Education, London 2009. Yuan L., Yuen B., Low C., Quality of life in cities – definition, approaches and research, [in:]

L. Yuan, B. Yuen, C. Low (eds.), Urban Quality of Life. Critical Issues and Options, School of Building and Real Estate, National University of Singapore, Singapore 1999.

KREATYWNOŚĆ W KONTEKŚCIE ROZWOJU REGIONALNEGO – WYBRANE ZAGADNIENIA

Streszczenie: W niniejszym opracowaniu poruszona została problematyka odnosząca się do wybranych aspektów kreatywności w relacji do rozwoju regionalnego. W pierwszej części omówione zostały teoretyczne aspekty kreatywności oraz rozwoju regionalnego. Wskazano na kreatywność jako źródło innowacji, tolerancji, wrażliwości społecznej w procesie rozwoju społeczno-gospodarczego jednostek terytorialnych. W dalszej części scharakteryzo-wano podstawowe założenia koncepcji 3T Richarda Floridy. Omówiono czynniki powią-zane z kreatywnością mające potencjalny wpływ na rozwój regionalny, takie jak: kultura i sztuka, marka miejsca, innowacje, tolerancja, talent, tożsamość regionalna. Przedstawiono również wybrane przemysły kreatywne dynamizujące rozwój regionalny, wśród których wyszczególniono m.in. reklamę, architekturę, sztukę i antyki, działalność wydawniczą, przemysł filmowy, projektowanie mody, przemysł muzyczny, radio i telewizję.

Słowa kluczowe: kreatywność, rozwój regionalny, innowacyjność, koncepcja 3T, przemy-sły kreatywne.



Yuliya Melnyk Ternopil National Economic University

REGIONAL PECULIARITIES OF THE GLOBAL ART MARKET

Summary: This article examines the development of the global art market from the point of view of its regional peculiarities. It uncovers new trends on the international art market that have an impact on different regions of the world. The research is based on comparative analysis and data collected by Artprice, the European Fine Art Foundation (TEFAF), ArtTactic and Barclays. This paper is aimed to discover the main drivers of the art market growth in different countries that could serve as feedback for further implementation in Ukraine.

Keywords: global art market, regional peculiarities, regionalization.

1. Introduction

Along with the processes of globalization in all branches of the global economy including the art market, each regional art market retains its own peculiarities influencing its development and regulation by the authorities. Despite the fact that the European art market is the oldest in the world, leadership in this area goes to Asia, especially in the contemporary art sector, according to the art market reports 2011 by Artprice and TEFAF. Considering that works of art have become profitable investment instruments all over the world, investors in this area should take into account the specifics of regional markets, interesting for them due to the offered assets. The Ukrainian art market is quite new to foreign investors and collectors, with a number of barriers for further development.

The research objective is to identify specific features of art markets in different regions of the world and work out recommendations for the further development of the Ukrainian art market taking into account the international experience.

2. Theoretical background

The research of the global art market as a whole, and its regional parts, requires an interdisciplinary approach. This research concerns cultural studies, regional economic

Regional peculiarities of the global art market 63 studies, investment theory, the economics of art, international economy etc. Taking into account the different types of consumers on the art market, a behavioral approach to the analysis should be also considered.

From the theoretical point of view, there are few regional studies in this area. A number of researchers [Mei, Moses 2002; Worthington, Higgs 2003; Hodgson, Vorkink 2004] made a comparison of Western (American and European) art assets and traditional financial assets. Later, Hsieh, Lee and Tzeng [Hsieh, Lee, Tzeng 2010] proved that Asian contemporary and modern art have a low correlation with stock market trends and therefore are an attractive asset for investment diversification. The research by Hiraki et al. [2003] was devoted to the impact of Japanese investments on international art prices.

Nevertheless, there is a lack of publications concerning the comparison of regional art markets’ peculiarities influencing their further development. Besides, there are no similar studies in Ukraine and other post-soviet countries. This article intends to fill this gap in economic literature. In this research different regional art markets will be compared, focusing on such aspects as dynamics of art sales, demand and supply, consumers’ motivation, market prices, market structure, infrastructure and intermediaries, and market regulation.

3. Globalization vs. regionalization of art markets

Over the last decade, the art market has become one of the most dynamic in the global economy. One of its main drivers is a growing interest in art industries not only from collectors but also investors. According to the 2011 Art market report, the total size of the global art market was 46.1 billion EUR (60.8 billion USD) for 2011 [The International Art Market… 2012], with the number of transactions up to 36.8 million. By way of comparison, in 2002 the total value of the global art market sales was 22.3 billion EUR, with the number of transactions totalling 25.8 million [The International Art Market... 2010].

At this stage of the global art market’s development, two parallel processes are being observed – globalization and regionalization. On the one hand, globalization leads to the more active exchange of cultural assets between countries and continents. It is followed by transnationalization – the opening of international fine art auctions’ and museums’ affiliates abroad (such as Poly International, Sotheby’s and Christies in Asia). L. Gagosian, the owner of 13 galleries in four continents, said: “Clearly the art market has become much more global in the past few years. We see evidence of this in the expansion of museums and art fairs internationally” [Burns, Pryor 2012]. Biennales have become global, too (in Sao Paolo, Brisbane, Dakar, Tirana, Vilnius, Cairo). Buchholz and Wuggenig call it the “biennalization of the art world” [Buchholz, Wuggenig 2011].

64 Yuliya Melnyk

Another driving force in the spread of globalization on the art market is the

Internet. According to the Art Market Trends 2011 by Artprice, with 2.7 billion people connected to the Internet in 2011, the old system of physical auction houses is being replaced by online sales. A number of auction houses (Christies, Sotheby’s, Heffel, Saffronart) have developed online trading platforms. During 2010–2011 Christies already posted a 29% increase in its online auction revenue [Art Market Trends... 2012].

On the other hand, the art market of each region or country maintains its regional peculiarities arising from cultural differences and mentality, peculiarities of economic and social development and local laws. The term “regionalization” is often used to explain the regional strategies of multinational corporations operating in different regions of the world. There is no clear definition of this notion. Moreover, previous studies of the art markets largely ignored the impact of this phenomenon on the art market.

4. The Asian art market: the phenomenon of Chinese growth

According to Artprice, the economic growth of China dramatically changed the global art market structure (see Table 1). The total art sales revenue in China amounted to 4.9 billion EUR in 2011 with a global market share of 41.4%. Beijing, which owns 27% of worldwide art market revenues, has become its new capital. China is the only art market that has shown unprecedented growth over the last five years. Moreover, it has become the main driver of the global art market recovery after the crisis.

Table 1. The global art market structure, 2007–2011

Art market share, % Country

2007 2008 2009 2010 2011 China 7.3 7.2 17.4 33 41.4 USA 41.7 35.6 27.9 29.9 23.6 United Kingdom 29.7 35.7 21.3 19.4 19.4 France 6.4 6 13.9 5.1 4.5 Germany 2.9 2.4 3.2 1.9 1.8 Switzerland 1.6 1.5 1.8 1.3 1.4 Italy 2.4 2.7 3.2 1.5 1.2 Other 7.9 8.6 11.4 7.9 6.7

Source: [Artprice 2008–2012].

Other Asian art markets have also shown growth, Indonesia expanded its operations to 39%, Singapore’s growth rate was 22% [O’Dea 2012]. Their development is powered by impressive GDP growth and the rise of rich collectors and investors. The number of billionaires in China nearly doubled in 2011 to 115,

Regional peculiarities of the global art market 65 while the USA added just 10 in the Forbes list of the world’s richest people. Moreover, this number is increasing by 20% each year [Harrison 2011].

Unlike Europe, the majority of art buyers in China are investors, not collectors. This derives from the fact that China has a lack of investment options. As A. Lin – the former Chairman of Christies – said, “the art market is one of the few areas where there is quite a strong investment position being taken” [Harrison 2011]. Their main benefit lies in earning speculative profit as a difference between the purchase price and the sales price of an art asset on the market as well as the diversification of financial risks in traditional fields of investment.

Taking into account the fact that 40 years ago it was illegal to own a work of art in China, demand exceeds supply in this regional market. As a consequence, the suppliers of art assets (galleries and auctions) do not face strong competition. On the Chinese art market the distribution is mostly represented by auctions rather than galleries or dealers. According to Colin Sheaf, the Chairman of Bonhams Asia, people are more confident in auction houses [O’Dea 2012]. In 2011, 5 Chinese auction houses have become the leaders in contemporary art sales all over the world (Poly International, China Guardian, Beijing Hanhai, Shanghai Tianheng, Beijing CNTC).

Barclays’ Wealth Report 2011 states that for most wealthy individuals, the emotional motivations for holding art treasures are far more important than the financial. Apart from investment needs, 52% of art treasures in China is being held for enjoyment. The Chinese buy works of art for such purposes as: enjoyment (they bring pleasure), showing off (they like to show them to other people), sharing (they enjoy sharing them with family and friends) [Profit or Pleasure?... 2012].

The Chinese art market structure differs from that in other regions and derives from Chinese culture and values: 1) Chinese contemporary art; 2) Chinese ceramics; 3) traditional Chinese ink-on-paper painting. According to the China Contemporary Art Market Report 2011 by Artprice, the Chinese contemporary art market has become the fastest-growing contemporary art market in the world.

According to the Art market trends 2011, 12.1% of works of art sold in Asia had the highest price level (from 100 thousand to 1 million USD). In the rest of the world this kind of assets accounted only for 2.2%. Two main reasons for such high prices can be defined. Firstly, the prices are driven by Chinese art investment funds in order to get extra profit. Secondly, they are caused by a new type of institution on the art market – cultural equity exchanges offering fractional ownership of packaged art assets. More than 60 of them already operate in China. The lack of proper government regulation in this branch of the art market caused a price bubble on the Tianjin Cultural Artwork Exchange in 2011, followed by a lack transparency of these exchange operations.

Despite the high growth rate of the art market, Chinese government regulation is considered to be its weak point. Tax and legal issues in China create obstacles for its further development (see Table 2).

66 Yuliya Melnyk

Table 2. Tax and legal issues in China

Type of tax Peculiarities in Mainland China Import tax 17% import tax on all works of art entering China. In addition, the work of art could

be liable for a further 12-14% customs duty tax on hand-made paintings and sculpture. Export Tax No tax on exports of works of art from China. If the work of art is more than 100 years

old, one would need an export license from the General Administration of Customs. VAT 17% sales tax is levied on the sale of all works of art within China. Stamp Duty 0.03% stamp duty is levied on re-sale of works of art. Capital Gains tax Up to 10% capital gains tax is payable when a work of art is sold within China.

Source: [The Chinese Contemporary... 2007].

Galleries, dealers and auction houses registered in Hong Kong fall outside the jurisdiction of the Chinese tax system, and sales tax does not apply. That is why Hong Kong is the world’s third-largest auction market after New York and Paris.

Apart from all the above mentioned positive features, the Chinese art market faces a number of problems affecting its further development: 1) the image problem on the global art business map (fakes, fraud, underhand practices and money laundering); 2) lack of art market transparency; 3) underdeveloped dealer network; 4) the price bubble.

According to the art experts’ forecasts, market correction is inevitable in China. The Chinese art market price bubble is predicted to be reduced by 40% over the course of 2012 [O’Dea 2012].

5. The traditional art markets: the USA and Europe

While China’s share in the global art market is growing rapidly, the share of the traditional leaders in this sector – Europe and the USA – is declining. In particular, during 2007–2011 the US art market share was reduced from 41.7% to 23.6%.

The regional structure of the European art market is dominated by the United Kingdom (a reduction of its market share from 29.7% to 19.4% over the last five years), France (a reduction of its share from 6.4% to 4.5%) and Germany (with a reduction from 2.9% to 1.8%). The main reason for this decline is the rising tax on art in Europe (the implementation of the so-called “droit de suite” in 2012). Since 2012, dealers and auctioneers must pay artists' heirs up to 4% of the sale price of works sold for more than 1,000 EUR.

The demand in this market is mostly represented by collectors. Europe is known on the global art market by its old tradition of collecting. This is proved by the art consumers’ motivation to buy art. Speculative operations with art assets on the European art market are not very popular.

According to Barclays’ Wealth Report 2011, the motivation of owning artworks in Europe differs from the Asian motivation. In most European countries, the percentage of art treasures held for enjoyment reaches 60% or more (57% in

Regional peculiarities of the global art market 67 Ireland, 69% in the United Kingdom, 79% in Monaco, and 60% in Switzerland). The top motivations for buying works of art in Europe are enjoyment, culture (they are a part of European culture) and heirloom (they can be inherited by the owner’s family). In the USA, 63% of art is also bought for enjoyment, heirloom and culture motives [Profit or Pleasure?... 2012].

The European art market has highly developed distribution channels, including auction houses, art dealers, fine art funds, galleries, art fairs and museums. The intermediaries on the art market are facing strong competition followed by the transnationalization of the art market members (auction houses). The same trend is observed in the USA – American galleries (the Gagosian Gallery, the Marlborough) have established their affiliates in other countries.

While China leads the contemporary art market, Europe is the oldest market of the old masters’ artworks and modern art. These segments are the least volatile and are not exposed to the influence of the recession, as was proved in 2007–2009.

Prices on the US art market are generally higher on average than in other markets, with average fine art prices at auction from four to nine times that of the European average. At the same time, the duty-free status of imported and exported works of art to and from the USA has been one of the features that promoted its development.

6. The emerging art markets: Arabian, Latin American and Russian

Analytical agencies such as Artprice, Artnet and TEFAF, pay attention in their reports to regional markets like China, the European Union, the UK and the USA, the main criteria for classification – the largest international auction houses. However, they do not include in this analysis a whole group of fast growing art markets: Latin America, India, the United Arab Emirates, Russia, etc.

The rapid growth of the Latin American art market is caused by the growth of the middle-class in Latin American society. The leader of this market is Brazil, with its centre in São Paolo. As on the other emerging markets, its market structure is dominated by contemporary art. The main infrastructure player in Brazilian art is the annual international art fair Art Rio. In 2011, it welcomed 83 exhibiting galleries, 700 artists, 46,000 visitors and about 60 million USD sales revenue [Art Rio... 2012].

The art market development in the United Arab Emirates is characterized by the steady growth in numbers and the influence of collectors from the Middle East, and the increasing participation of younger buyers. Middle Eastern clients accounted for 8% of Christie’s global auction turnover in 2011; up from 5% in 2010 [Art market... 2012]. The main consumers are collectors buying artworks from their own region. For the emerging art markets, the most common distribution

68 Yuliya Melnyk

channel is an art fair. In the United Arab Emirates, it is Art Dubai. In 2012, it welcomed 22500 visitors, including 75 international museum groups and hosted 75 galleries from 32 countries, covering the Middle East, North Africa and South Asia. According to the TEFAF Art market report 2010, the United Arab Emirates are more importers rather than exporters on the international art market. In 2008, their export of artworks amounted to 5.3 million EUR, and import – 62.0 million EUR [The International Art Market... 2010]. In the United Arab Emirates, investment in Western art is a priority declared in the national program of the art market development. By 2013, the foreign affiliates of the Louvre and Guggenheim Museum are planning to open in this country.

According to the behavioural approach, buying art has a strong emotional motivation. In all the mentioned countries, these motivations are quite different. The percentage of art treasures, including fine art, held for enjoyment is the highest in the United Arab Emirates (75%), because of the large amount of rich collectors. In other Arab countries it is much lower (38% in Qatar and 36% in Saudi Arabia). In India, 69% of art treasures is held for enjoyment. In Latin America, this percentage amounts to 54% in Mexico and 39% in Brazil. Moreover, the top motivations of buying art in Latin America are similar to those in Europe – enjoyment, culture, heirloom and sharing. In India it is different – consumers buy it to show off, for pure investment or to earn respect [Profit or Pleasure?... 2012].

Russia has also become an important global art market player in recent years, which is caused by its government regulation and the development of an art market infrastructure. Russia is importing more art than exporting. It has sharply increased its imports, from 8.9 million EUR in 2007 to 24.9 million EUR in 2008. On the Russian art market, the main consumers are collectors, too [The International Art Market... 2010].

It should be taken into consideration that the Russian art market already operates a number of institutions: the International Confederation of Antiques and Art Dealers; specialized schools training experts in the art business, and several antiques auctions. A number of art market analysis tools have been developed: the indicator of investment risk on the art market ARTinvestment, allowing to insure risks in capital investments in art; the art index ARTIMX, designed to track market trends; the evaluation model of cultural assets and collectibles. In 2005 Russia launched the annual issue of the price listing DAR (analogical to European Directories).

7. Ukraine: prospects for development

The Ukrainian art market can also be called emerging; no more than 1% of its consumers are collecting art. It is less than 20 years old, with an annual turnover of around 100 million USD. 95% of its commodity structure is antique art that is less

Regional peculiarities of the global art market 69 exposed to the influence of crisis. One of its main problems is the lack of infrastructure that is chiefly designed for art galleries and art fairs (ARSENALE, Art Kyiv Contemporary). The cost of artworks by Ukrainian artists is undervalued by about 40–60%, but the demand is much lower than the offered prices.

The key obstacles for its further development are: customs procedures; inadequate system of taxation and bureaucracy; undeveloped institutional framework; lack of art market analysis instruments; insufficient art projects’ funding. These are the areas requiring government reforms.

8. Conclusions

This research has proved that the global art market has its regional peculiarities influencing its further development. Thus, the main drivers of the regional art markets’ growth are the following: – GDP growth; the increase in the share of the middle class population in the

region, the emergence of the class of wealthy collectors; – favorable legislative environment, lowering taxes and customs duties on the art

market; – the development of the art market infrastructure.

The systematization of regional art markets’ characteristics can serve as an additional tool for decision-making by collectors and investors operating in these markets.

References

Art market takes a dive in Dubai, Arab News 2012, 13 June, 2012, http://www.arabnews.com/art-market-takes-dive-dubai.

Art Market Trends 2007, Artprice, 2008, http://imgpublic.artprice.com/pdf/trends2007_en.pdf. Art Market Trends 2008, Artprice, 2009, http://imgpublic.artprice.com/pdf/trends2008_en.pdf. Art Market Trends 2009, Artprice, 2010, http://imgpublic.artprice.com/pdf/trends2009_en.pdf. Art Market Trends 2010, Artprice, 2011, http://imgpublic.artprice.com/pdf/trends2010_en.pdf. Art Market Trends 2011, Artprice, 2012, http://imgpublic.artprice.com/pdf/trends2011_en.pdf. Art Rio International Art Fair, 2012, http://artrio.art.br. Buchholz L., Wuggenig U., Cultural globalization between myth and reality: the case of the contem-

porary visual arts, Art-e-Fact 2011, issue 4. Burns C., Pryor R., Grow, grow, Gagosian…, The Art Newspaper 2012, issue 238 (September). Harrison V., China’s art market boom threatens Europe, Market Watch 2011, 15 June. Hiraki T. et al., How did Japanese investments influence international art prices?, Yale ICF Working

Paper 2003, no. 03–09. Hodgson D.J., Vorkink K.P., Asset pricing theory and the valuation of Canadian paintings, Canadian

Journal of Economics 2004, vol. 37, pp. 629–655. Hsieh S.-H., Lee J.-P., Tzeng L.Y., Art as an Investment: Empirical Study of Asian Contemporary and Chinese

20th Century Modern Art, 2010, http://www.fin.ntu.edu.tw/~conference/conference2010/proceedings/pro ceeding/11/11-1%28A40%29.pdf.

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Mei J., Moses M., Art as an investment and the underperformance of masterpieces, American Eco-

nomic Review 2002, no. 92 (February), pp. 1656–1668. O’Dea M., How China went from art-market afterthought to world auction superpower, Artinfo 2012,

2 May. Profit or Pleasure? Exploring the Motivations Behind Treasure Trends, Barclays, 2012, http://www.

barclayswealth.com/US_Wealth_Insights_15_FINAL.pdf. The Chinese Contemporary Art Market, ArtTactic special report, November, 2007,

http://www.cherryartfoundation.com/pdf/ChineseReportNov07.pdf. The International Art Market Report 2007–2008, The European Fine Art Foundation (TEFAF), 2010,

http://www.tefaf.com. The International Art Market Report 2011, The European Fine Art Foundation (TEFAF), 2012,

http://www.tefaf.com. Worthington A.C., Higgs H., Art as an investment: short and long-term co-movements in major paint-

ing markets, Empirical Economic 2003, no. 28(4), pp. 649–668.

REGIONALNA SPECYFIKA GLOBALNEGO RYNKU SZTUKI

Strzeszczenie: Artykuł analizuje rozwój światowego rynku sztuki z punktu widzenia jego regionalnych osobliwości. Ujawnione są nowe trendy na międzynarodowym rynku sztuki, które mają wpływ na różne regiony świata. Badanie opiera się na analizie porównawczej oraz danych zebranych przez Artprice, Europejską Fundację Sztuk Pięknych (TEFAF), Art-Tactic i Barclays. Niniejszy dokument ma na celu odkryć główne czynniki wzrostu rynku sztuki w różnych krajach, które mogą posłużyć jako doświadczenie dla dalszego wdrażania na Ukrainie.

Słowa kluczowe: światowy (globalny) rynek sztuki, regionalne osobliwości, regionalizacja.



Elżbieta Załoga, Dariusz Milewski Szczecin University

THE IMPACT OF TRANSPORT ON REGIONAL DEVELOPMENT

Summary: Transport (both infrastructure and services) can be an essential factor of sustain-able development of a region. The effects of transport development for a region can be di-rect and indirect. From the point of view of the needs of sustainable development, it is im-portant to create such a transportation system which will allow to achieve not only economic goals but also social and ecological ones. The authors of the paper proposed a very simpli-fied and general model of direct and indirect effects of the development of a transport sys-tem of a region and their influence on its economic, social and ecological development. The model includes system relations.

Keywords: regional development, effectiveness of transport.

1. Introduction

The theory of the transport economy attributes to transport a significant role in the economic and social development of a country and its regions. It is interesting, however, how transport contributes to this development. The only analysis of the correlations between the data on, for example, expenditure for the development of transport and effects such as GDP growth, could not give an answer to this question. It is necessary to identify the relations between the impact of transport on specific social and economic effects. Identification should be systemic in nature, first, because of the large number of transport factors and its effects, and secondly, because of the relations between these effects. The goal of this article is to identify these links and present them in the form of a model.

2. Literature overview

For many years works of various kinds, both about the practical and theoretical impact of transport on economic and social development in general (e.g. in the whole country) have been published.

72 Elżbieta Załoga, Dariusz Milewski

The methods used to assess the economic impact of transport projects have

evolved over the years – mainly from the concentration on the economic benefits of saving time and travel costs for direct users to including a broader relationship with the environment. From a methodological point of view the classification into the direct and indirect is very important [Banister, Berechman 2000; Impact of Transport Infrastructure... 2002]. At present a wider range of factors is being included, such as the availability of transportation, the availability of the labor market, the impact on property values, changes in traffic flows, and the social and environmental effects (human life and health, social cohesion, noise, landscape) [Forkenbrock, Weisbrod 2001]. The conducted analyses show the complexity of the relationships, not just the effects and factors, but also the various effects on each other and the multidimensional nature of these effects. For example, transport, the factor of economic development, has an impact on the quality of the landscape, which is the effect of an environmental nature, and also has an impact on the economic development (the tourist attractions of the region).

In addition to the comprehensive analyses and models [Talley 1996; Weisbrod 2008], specific issues were analyzed, such as the value of travel time for passengers [Wardman 1998], the cost of congestion in cities borne by the company [Weisbrod, Vary, Treyz 2003]. As an alternative to the micro, macro and regional econometric models, the CGE model (computable general equilibrium) was proposed, which allows the meso-scale analyzes [Wing, Anderson, Lakshmanan 2008], taking into account the mechanisms of tracking the effects of adding infrastructure capacity (e.g. time-saving benefits to households and businesses).

In Poland it can be observed that interest in this field is increasing. A very interesting example is the work of Rosik and Szuster [Rosik, Szuster 2008], which is an attempt to examine this issue. As the authors state, transport infrastructure is not the only and not the most important factor of economic development – more important may be taxes, education and innovation. One can even argue that it is not the development of transport that affects economic development, but that richer countries or regions can afford to invest in transportation. After that, investments in transportation are needed to sustain this growth. The impact of the transport development on the development of the region depends on various factors, including the nature of the region and the level of socio-economic development.

Such thesis have long been posed by authors from other countries. A contribution to the development of the research on the issue was the view of F. Voigt [Voigt 1973], which assigned space transportation systems with different creation power of influence into regions, followed by the distinguishing of three types of regions: growth regions, underutilized regions and indifferent regions.

The earliest studies of a theoretical and empirical character showed that, depending on the industry, the improvement of the functioning of transport in varying degrees impacts on business costs (including transport costs) and the size

The impact of transport on regional development 73 of the labor market [Weisbrod, Vary, Treyz 2003, pp. 98–106]. First of all, it is noted that infrastructure investments can have a direct, as well as a complementary, impact on economic production. A growing economy needs additional investment to meet the transport needs [Talley 1996]. In order that accessibility of transport could bring the expected results other conditions should also exist.

Nowadays, at the beginning of the new century, the thesis of the importance of transport infrastructure to the economy and society is rarely called into question. Rather, it gives new features, such as the impact on the development and prioritization of territories, the impact on living standards, impact on the value of the property [Stanchev, Merat 2010], creation of mobility [Biała Księga Transportu 2011].

Analyses of the impact of regional development, generated by the transport, on the development of the country can be very cognitive. The economic development of the region does not have to contribute to the development of the whole country. A region may be more attractive than others and attract investment and human resources. In this case, we are dealing with the effect of redistribution between regions rather than economic growth in the whole country. Increasing transport accessibility for weaker regions can lead to the draining of resources by taking employees and exposing them to stronger competition [Banister, Berechman 2000].

3. Benefits for a region from transport development

Regional development involves the economic, social and spatial phenomenon. The measures of this development are effects like, for example, improving the competitiveness of businesses and the level of life, the potential of regional economic growth, the improvement of their availability.

The factors of regional development can be: demographic resources, the regional ecosystem, infrastructure, regional economy, the space region, exogenous factors (globalization, integration, macroeconomic conditions), the factors determining the region's ability to respond to changes in the macro-surrounding (flexibility of the region’s economy, internal equity options, activity and the openness of the region) [Stahl (ed.) 2006, pp. 13, 16–18]. The important factors in the development of the region should also include transport, which allows the achievement of the economic, social and environmental objectives. There is extensive empirical evidence that proves the existing relations between transport and positive economic and social regional effects.

For example, the conducted research on the effects of congestion in the US State of Portland on its economic development has shown that it has a significant impact on the region's ability to sustain economic growth. The conclusions (selected) set out in the report of the study are as follows [Economic Development Research Group 2005, pp. 3–5]:


1) competitiveness of Portland as a center of commerce, was largely dependent

on efficient transport. In particular, increased congestion posed a threat to the further development of the region. Entrepreneurs claimed that congestion already caused an increase in the cost of doing business;

2) failing to take action to improve the state of infrastructure might result in the loss of 844 million USD a year by 2025, which is 782 USD per household and 6,500 jobs. This was the equivalent of 28 hours of travel time per household per year;

3) it was estimated that every US dollar spent on transport investment would bring a 2 USD benefit.

Empirical data can be helpful in formulating the overall relationship between transport and regional development. It should be remembered, however, that the effects of the development of transport may be different in different regions. The focus of transport problems depends on the nature of the region. For example, in a region with one center (a large dominant city), it is important to have access to this centre. Accessibility is also important for regions, where tourism plays a key role in promoting economic growth.

OECD reports show that there are many different types of direct and indirect benefits for the development of the region, arising from the development of transport [Impact of Transport Infrastructure... 2002, pp. 20–21].

Direct effects are mainly travel time, cost and safety, which represent benefits of direct users of transport. Time savings are still quite widely regarded as the greatest economic benefit. According to M. Wardman, costs resulting from the extra time of transport has two components: the opportunity cost of time spent on traveling and the loss resulting from the non-use of the time for other activities (work, business or non-business purposes) [Wardman 1998, pp. 285–316]. On the other hand, however, these effects, especially the latter, are relatively difficult to estimate. Security improvement can take the form of reducing accidents and their consequences (death, loss of health, loss of property, the cost of health care insurance).

A detailed analysis of the direct effects leads to certain conclusions. Firstly, that all of them, not only costs, have both social and economic dimensions. Secondly, they are not tied only with transport factors. but there are also relations between themselves. An additional conclusion resulting from the first two is that there is the need for a systemic approach, in which the basic tool would be the Cause – Effect Analysis. The system approach is all the more needed, that from direct ones wider and indirect effects result.

Both direct and indirect effects relate to the following areas: – accessibility of a region, – employment, – effectiveness of business processes, – social inclusion, – environment.

The impact of transport on regional development 75

In addition to the above, other social and economic effects of transport investments are also featured: effects relating to the level of economic development, noise, landscape quality, etc. [Forkenbrock, Weisbrod 2001, p.6].

An improvement of access to transport can increase the accessibility to the markets in which companies operate. This in turn leads to the increased centralization of activities (economies of scale, agglomeration benefits), greater attractiveness of the region and improvement of competitiveness. This can be a factor encouraging settlement and preventing migration and exodus from the region.

The effectiveness of business processes achieved through transport development is relatively easier to identify in freight transport. Savings of time and costs, and the improvement of the accessibility and reliability of products allows increasing productivity in manufacturing and logistics, which in turn leads to improved profitability. Similar effects can however also relate to passenger transport. Improved accessibility can reduce the time spent on commuting. This can result in increased productivity of the workforce if the saved time can be then used in manufacturing. The second benefit is the increased geographical size of the labor market in the region (the increased range of options for employees and employers). This allows for specialization in regional labor markets through the better matching of skills (competences) offered and expected in these markets.

The influence of access to the region on its development, however, can be different in different regions and even negative in some cases. The best results can be achieved in regions lagging behind in development. The greater the attractiveness of the area, the greater the exposure of local economic centers to the competitive pressure from the center of a region. Consequently, the impact on the level of employment can also be double-edged. Increased transport accessibility may contribute to the creation of jobs, but it can also lead to the reallocation in the region thanks to the ability to commute from remote cities.

The decreasing accessibility of transport as a result of, e.g. closing rail or bus lines, can lead to social exclusion, which in turn can result in social phenomena such as unemployment, low level of literacy and income, poor housing, poor access to education, high level of crime, bad health and family breakdown. Social inclusion, as the opposite of social exclusion, can be the result achieved by increasing the transport accessibility and mobility. It is difficult to determine whether the improvement in the functioning of transport is able to restore the proper functioning of the community. Certainly, it creates the necessary conditions. Again, it should be stressed that these problems have, to some extent, not only a social but also an economic character. Greater accessibility to social capital can contribute to economic growth.

The environmental effects or the quality of air, water, noise, use of natural resources, etc., also depend on transport solutions in a region. However, the relationship of these results with others, especially with the efficiency of transport processes, is interesting and worthy of further examination. This means that the same factors which result in lower costs of enterprises can also contribute to lower external


costs. The relations between transport, business and environment are even more complex. A region can be an attractive place for investment and settlement thanks to its environmental values.

4. Model of impact of transport on the development of a region

Based on the information given earlier, the authors have attempted to synthesize the effects of transport development in the form of the model of the impact of transport on the sustainable development of the region. This model is presented graphically in Figure 1. The intention was to capture the complex and multifaceted relationship between the effects. The sustainable development of the region is expressed by considering three aspects: economic, social and environmental.

Improvements in the transport system of the region, both in terms of infrastructure and services (freight and passenger transport) result in specific parameters of the system in the form of travel time, cost, and safety of transport processes. As a result, congestion has been distinguished, although it is strongly associated with time, but it is a broader issue than just the length of travel time and has wider implications.

Figure 1. Systemic relationship of effects of regional transport development in the context of sustainable development


Direct effects: time, travel costs, congestion, safety

Region’s and transport accessibility

Employment

Social development Environmental effects (pollution, noise)

Economic development

Real estate prices

Environmental development

Attractiveness and competitiveness of a region

Social integration

Transport system of a region (infrastructure and services)

The impact of transport on regional development 77

Direct effects (time and costs) in turn have an impact, on the one hand, on the environmental effects, on the other hand the accessibility of transport, which in turn impacts on the price of the property, the attractiveness of the region, employment and social integration. These effects determine the level of economic, social and environmental development, among which different relations are also found. Among the objectives of the development of the region, there may be contradictions, that is, such growth is realized with an increase in social and environmental costs. On the other hand, economic development enables a region to incur expenditure on the implementation of the social or environmental objectives. Social integration can contribute to improving the economic potential of the region. Local values can also improve the attractiveness of the region and indirectly contribute to its economic development.

5. Conclusions and recommendations

As some authors rightly point out, although research material is abundant, however it does not allow to formulate clear conclusions, primarily because of the very different effects of measures taken in the area of transport.

It is necessary, therefore, to continue research on the relations of transport with socio-economic development. A very important issue is, for example, whether as a result of improvements in the transport system new values are created, or there is simply a redistribution of benefits. Improvement of transport accessibility creates new jobs in the region, although it is often not clear whether it can be considered as an additional advantage of improvements in transport or simply the reallocation of activity. The effects can also be quite the opposite (even greater centralization and marginalization of already marginalized areas).

The model presented in the paper, identified relations between transport developments and its effects aimed at proving that actions taken in the field of transport should be evaluated with the use of a relatively broader analysis. Thus the model indicates directions in searching for the effects of transport development. This can be the starting point for a more concrete model, even in mathematical form, which could be a decision – making tool in formulating a proper transport policy. There are, however, some conditions that have to be met.

First of all a very detailed analysis should be conducted. The concrete case studies of transport improvements in regions should be analyzed, taking into account not only the results of these improvements but also the reasons for their occurrence. The goal of this analysis would be to measure the links between transport decisions and their effect in economic categories (costs).

Secondly, if it is possible, the obtained data should be synthesized in order to generalize these relations.


References

Banister D., Berechman Y., The Economic Development Effects of Transport Investments, paper for presentation at the TRANS-TALK Workshop, Brussels, November 2000.

Biała Księga Transportu, Plan utworzenia jednolitego europejskiego obszaru transportu – dążenie do osiągnięcia konkurencyjnego i zasobooszczędnego systemu transportu, UE, Luxemburg 2011.

Economic Development Research Group, The Cost of Congestion to the Portland Region, Portland Business Alliance, Port of Portland and Metro, Portland 2005.

Forkenbrock D.J., Weisbrod G.E., Guidebook for Assessing the Social and Economic Effects of Transportation Projects, National Cooperative Highway Research Program. Report 456. Wash-ington, D.C. 2001.

Impact of Transport Infrastructure Investment on Regional Development, Organization for Economic Co-Operation and Development, 2002.

Strahl D. (ed.), Metody oceny rozwoju regionalnego, Wydawnictwo Akademii Ekonomicznej, Wro-cław 2006.

Rosik P., Szuster M., Rozbudowa infrastruktury transportowej a gospodarka regionów, Wydawnic-two Politechniki Poznańskiej, Poznań 2008.

Stanchev D., Merat N., Equity and accessibility, Thematic research summary. Transport Research Knowledge Centre, EC, 2010.

Talley W., Linkages between transportation infrastructure investment and economic productivity, Lo-gistics and Transportation Review 1996, vol. 32, issue 1, pp. 145–154.

Wardman M., The value of travel time: A review of British evidence, Journal of Transport Econom-ics and Policy 1998, vol. 32, no. 3.

Weisbrod G., Vary D., Treyz G., Measuring the Economic Costs of Urban Traffic Congestion to Business, Transportation Research Record #1839, Transportation Research Board, 2003.

Weisbrod G., Models to Predict the Economic Development Impact of Transportation Projects: His-torical Experience and New Applications, Springer-Verlag 2007, published online: 9 January 2008.

Wing I.S., Anderson W.P., Lakshmanan T.R., The Broader Benefits of Transportation Infrastructure, OECD/ITF, 2008.

Voigt F., Verkehr, Duncker & Humblot, Berlin 1973.

WPŁYW TRANSPORTU NA ROZWÓJ REGIONALNY

Streszczenie: Transport (zarówno jako infrastruktura, jak i usługi) może być istotnym czyn-nikiem zrównoważonego rozwoju regionu. Wpływ rozwoju transportu dla regionu może być bezpośredni lub pośredni. Z punktu widzenia wymogów zrównoważonego rozwoju ważne jest, aby stworzyć taki system transportu, który pozwoli osiągnąć cele nie tylko ekonomicz-ne, lecz także społeczne i ekologiczne. Autorzy zaproponowali bardzo uproszczony i ogólny model bezpośrednich i pośrednich skutków rozwoju systemu transportowego w regionie i ich wpływu na jego rozwój ekonomiczny, społeczny i ekologiczny. Model uwzględnia rela-cje systemowe.

Słowa kluczowe: rozwój regionalny, efektywność ekonomiczna transportu.



Alina Kulczyk-Dynowska Wrocław University of Environmental and Life Sciences

DIVERSIFIED SPATIAL NEIGHBOURHOOD – A METROPOLIS AND A NATIONAL PARK

Summary: Metropolisation – the process related to the transformation of large cities and acquir-ing new qualities and skills by them – constitutes a challenge for a spatial economy. The parallel side effects of the economic processes performed by human beings have forced the global com-munity to undertake global preventive and remedial activities resulting, among others, in the es-tablishment of forms of area conservation. The paper presents an example of neighbourhood di-versity in space, i.e. the close neighbourhood of a metropolis and a national park.

Keywords: space, protected area, metropolis.

1. Introduction

In the era of modern management models (among which a virtual organization is often listed), with faster and faster as well as more and more reliable ways of communication and data transmission, and the advancing popularity of teleworking and similar activities, it seems that the value of space has depreciated. Meanwhile, the status of space indispensability did not change, even with regard to the already mentioned virtual organizations which deal with rendering intellectual services. This is due to the fact that even though an organization’s seat does not exist literally, its members do perform, in a physical sense, all the tasks assigned to them. Therefore, they have to find space in order to plug in their computers (or other devices necessary for communication) and this particular space – frequently the same as private home space – turns out to be an adequate place required for economic processes to occur. The growing ecological awareness, as well as the increasing requirements relating to life quality, result in the fact that the quality of environment inhabited by people became crucial in taking up decisions regarding not just the place of residence or spending free time, but also the location constituting the centre of the professional activities. Such perception of space turns it into a multidimensional power having due influence on economic processes. This is because “space and in fact an area represents [...] such a component of nature

80 Alina Kulczyk-Dynowska

which determines socio-economic development in both a quantitative and qualitative sense” [Mierzejewska 2010, p. 53].

The value of space is also supported by the fact that, regardless of how economic development is defined, it is always related to space and the two-way pressure occurring between economic processes and those present in ecosystems. Neighbours in a space turn out as an inevitable issue – it is the effect of permanent land management development.

The diversity of space and also the variability of its usage opportunities result in the fact that there exist certain perplexing neighbourhoods, e.g. a metropolis and the highest rank protected areas represented by national parks. In Poland such a situation occurs in two cases – the Wielkopolski National Park and the town of Poznań and also the Kampinoski National Park and the capital city of Warsaw. This paper presents an attempt to discuss the most important properties of a metropolis and of protected areas, i.e. national parks, and the mutual interactions between them and putting a particular emphasis on the economic growth context in a given area. With reference to the above, the due literature covering the discussed subject matter was analysed and information from the Kampinoski National Park was obtained.

2. Metropolis is the most advanced form of space organization

The phenomenon of metropolisation still constitutes a challenge for a spatial economy – it represents the process related to transformations in large cities and obtaining both new qualities and skills by them. The absence of just one formal definition of a metropolis may suggest that this is a new and still not fully recognized issue. Meanwhile a metropolis represents a form of space organization which has been known to mankind for a long time – A. Karwińska quotes the examples of Carthage, ancient Rome and Constantinople, centres which, in line with the scale of economic processes occurring in the past, played the role of metropolis ages ago [Karwińska 2008, p. 235]. The location of listed centres allows for an additional conclusion that they were functioning independently from the type of national culture.

Having in mind the traditional division of space components into zone elements, linear and spot, metropolis should be included in the latter group. The development of a metropolis follows a multidimensional process exceeding by far the borders of just one country – owing to which a metropolis is characterized by a certain degree of autonomy regarding both territorial and national authorities. A metropolis is such a specific formation that it is not at all obvious to equate a metropolis and – even a large – city. In professional literature this problem is discussed in, among others, the book edited by B. Jałowiecki given a symptomatic title “Is metropolis a city?” Just like there is also no unequivocal reply to the question already put forward, there is also no possibility to include space metropolisation among

Diversified spatial neighbourhood... 81 clearly positive phenomena. M. Juchnicka and M. Proniewski emphasized the crucial aspect of a metropolis functioning, namely the negative influence on investment attractiveness characteristic for smaller settlements. The power – in the sense of intellectual potential, capacity for creating innovation, information transfer, quality of rendered services, social, cultural, political support characteristic for a metropolis – is totally incomparable to the power featuring in smaller, which does not mean small, settlement centres [Juchnicka, Proniewski 2009, pp. 14–16]. It is an unquestionable fact that a metropolis has great global significance, high quality and broadly understood potential, but also is in isolation from the surrounding region.

While discussing the phenomenon of metropolisation, social transformations have to be considered. A metropolis represents an environment in which a new social group was created, the, so-called, metropolitan class. The above mentioned collectivism is characterized by certain needs, ambitions and lifestyle featuring almost no resemblance to the traditional local community. The lack of attachment to any particular space is – according to the author – the most characteristic quality which manifests itself in the absence of local patriotism. Metropolitan class representatives, owing to their high qualifications and mobility related to it, are capable of functioning in any other metropolis in the world.

The establishment, development and current functioning of a metropolis is related to the process of economic development. The diversity and multitude of ways used to define economic growth results from both the evolution of ideas referring to the discussed problem and the need to adjust the definition of development to the economic reality in which such a definition will be used. It is important to differentiate specifically the two concepts, namely economic growth and development – “growth and development [...] are related to each other, however, they constitute different phenomena following different rules. Growth results in horizontal and quantitative expansion as well as the multiplication of the existing types of activity. Development refers to vertical or qualitative strengthening of systemic levels and/or structures” [Janikowski 2006, p. 19]. There is an unquestionable relation between a metropolis and economic growth – it is assumed that it transfers inhabitants and clients of a metropolis to the highest level of services provided by an urbanized area. However, the literature on the subject indicates problems of unsustainable metropolisation, the best example of which are large cities in the Third World [Karwińska 2008, p. 236].

3. Space protection and development vs. economic growth

The side effects of the economic processes conducted by human beings, forced the global community to undertake worldwide preventive and remedial activities focused on the natural environment. The global trend was reflected in changes and ongoing updates of legislation in force in particular countries. In Poland the


discussed issue is primarily regulated by the Environment Protection Act dated 27 April 2001 (Journal of Laws 2001, no. 62, item 627 with later amendments) and the Nature Protection Act dated 16 April 2004 (Journal of Laws 2004, no. 92, item 880 with later amendments). It has to be emphasized that both of the above legal acts are subject to ongoing modifications. While indicating legal acts which influence space protection in Poland, the Local Self-Government Act dated 8 March 1990 (Journal of Laws 2001, no. 142, item 627 with later amendments) has to be considered. From the perspective of space management, the most significant is the establishment of one of the nature protection forms listed in Art. 6 of the Nature Protection Act dated 16 April 2004. This regulation means reducing certain types of economic activities to be carried out in a given area. Among the listed forms, both national parks and Nature 2000 areas are of great importance. In spite of the fact that there have been established only 23 national parks in Poland, this represents a well-recognized form of nature protection. The network of Nature 2000 areas is an example of nature protection of international significance and also constitutes the confirmation of the need for broad cooperation in the discussed range.

The limitations related to spatial forms of nature protection may result in conflicts – including spatial – in particular when the society is not aware of the fact that the environment performs numerous services for the benefit of economic reality resulting from the natural processes occurring in it. An ecosystem provides indispensable goods for both life and the development of human beings as well as services of pollution absorption and nature regeneration. “Services may be preserved in time on condition that potential environment pollution, resulting from human activity [...], will not exceed the capacity ingrained in the environment for self-restoration” [Bernaciak 2009, p. 39].

The level of the inhabitants’ material status, the presence or absence of certain infrastructure in a given area as well as the opportunities offered by the natural environment, do influence the level of economic development and, in consequence, the interpretation and effect of the phenomena occurring in the sphere of broadly understood economic life – including also the assessment of the forms of area conservation. While discussing the problem of economic development, one should become aware of the discrepancies in assessing the same phenomena, e.g. “in Europe or in The United States a drought influences adversely the condition of backyard gardens. In poor countries a drought means the death of many people” [Begg, Fischer, Dornbusch 1999, p. 492]. The development characteristic for areas featuring a low national income per capita is limited by the specific attributes of such an area among which the following should be listed: unfavourable properties of human resources, insufficient natural resources, insufficient financial resources [Begg, Fischer, Dornbusch 1999, pp. 494–496].

The listed properties create an unfavourable synergy effect, i.e. they are mutually strengthening which augments their negative influence on the area they

Diversified spatial neighbourhood... 83 refer to. One cannot expect that growth, in the context of the above characterized area, will be perceived in the same way as the development in the context of an area generating high national income values per capita.

Returning to the problem of spatial conflicts related to space oriented forms of nature protection, it has to be emphasized that they are inseparably connected with the conflict of time perspective accepted by economic life as a settlement period, and also the conflict of time perspective characteristic for ecosystems’ development. It is of some concern, however, that certain representatives of economic science still – despite ecology oriented economic popularization – keep following the misconception that there is balance in nature [Michałowski 2009, p. 73]. In fact the environment keeps absorbing, up to a point, the results of human activity, which does not at all mean an indefinite occurrence of such regularity. The awareness of the multipath human influence on the environment represents the first stage for undertaking activities aimed at space protection. It is of importance to realize that the sole understanding of the need to protect space does not guarantee the acceptance of all activities focused on the discussed objective implementation – “when collective or individual interests are at stake indifference, resentment or even hostility towards such conservation occur” [Olaczek 2010, p. 9].

4. Warsaw – the metropolis located in the neighbourhood of the Kampinoski National Park

It is not possible to separate economic life space, or protected areas from the remaining part of the land area, however, the zones of particular activities can be distinguished. As already mentioned, the two national parks in Poland are located in the direct vicinity of the metropolis, i.e. Warsaw and Poznań. This confirms the fact that in practice situations occur in which the space covered by the highest rank of legal protection is situated in the neighbourhood of highly urbanized areas. Due to the fact that Warsaw is not just a metropolis, but at the same time the capital city, this case seems more interesting and therefore worthy of more detailed analysis.

The area of the studied objects indicates, that in regard to their territory, they are comparable. The area of Warsaw capital city amounts to 51,724 ha. the Kampinoski National Park (KNP) covers an area of 38,544 ha and is surrounded by a buffer zone, the area of which is almost equal to that of the Park. For clarification reasons it has to be added that 68 ha of the Park is taken up by an external Bison Breeding Centre in Smardzewice near Tomaszów Mazowiecki.

The Kampinoski National Park constitutes almost the borderline of Warsaw from the north-west side. The Park was established in 1959; therefore, it represents an area exerting a long-term influence on the spatial management not just of Warsaw, but also its neighbouring smaller locations. The urbanization pressure on both KNP and its buffer zone is a multipath one – the metropolis of Warsaw has


interests in the areas adjacent to Łomianki, Stare Babice, Leszno, and even as far as Kampinos. Smaller urban centres, i.e. Sochaczew and Nowy Dwór Mazowiecki, also aim at extension and development which – according to KNP – could exert a negative influence on the protected area. The metropolis represents an entity which requires a communication infrastructure offering a high capacity in this matter and therefore KNP is exposed to the influence of numerous linear components, such as the complex of main roads surrounding the KNP area, as well as the railway line running from the park’s western border. The communication needs are so extensive that there was a project prepared of a road running through Leszno in the direction of Nowy Dwór Mazowiecki, so through the centre of the discussed protected area (!). The construction of the A2 highway may also not be regarded as neutral for the KNP1 area owing to its direct vicinity of the Park.

The Kampinoski National Park provides, for the neighbouring metropolis, a service of immeasurable value, i.e. it supplies fresh air. The prevailing in the discussed area, west winds, blow in the air from the protected area towards the capital city. Such a role of the Park for the benefit of the capital also manifests itself in the provision of space for leisure. According to KNP estimations, the Park is annually visited by about 1 million people. Among the visitors the majority are Warsaw’s inhabitants who, owing to their place of residence, are legally exempt from paying the admission fee to the KNP (art. 12, point 7 of Nature Protection Act dated 16 April 2004). Therefore, the KNP management decided to refrain from collecting any admission fees.

5. Final remarks

A protected area is radically different from a highly urbanized, densely populated and intensively managed one, typical for a metropolis – these entities do not compete with each other at the level of rendered services. The type of competition occurring between the Karkonoski National Park and the Warsaw metropolis focuses on land, which constitutes the object of competition. Such a situation results from their vicinity – the metropolis aims at capturing Park areas and its buffer zone, which function as a barrier for its spatial development.

The protected area recalls the mood of the past by offering an opportunity for an actual and real return to an old, almost original environment – it functions very well as both a place for passive and active leisure as well as meeting health oriented needs. Therefore it is important for the quality of metropolitan community life. A period of over half a century of the protected area and the metropolis (which at the same time is the country’s capital) being neighbours, indicates that diametrically different areas may – if adequately managed – be placed adjacent to each other.

1 Based on the analysis of Central Statistical Office maps of Kampinoski National Park prepared

based on projects by B. Król and M. Skolimowska.

Diversified spatial neighbourhood... 85

It is worth emphasizing that a national park and metropolis do have certain properties in common, i.e. independence from local authorities, international significance and planned land cultivation (conservation). The existing neighbourhood of both entities presented in this paper points to the fact that the ecological order, economic order and social order do not exclude one another. On the contrary, they are mutually supportive. The limited nature of resources indispensable for economic life development resulted, on the one hand, in changing management methods and, on the other, in a more and more restrictive space protection. Participants in economic life have to come to terms with this fact.

References

Begg D., Fischer S., Dornbusch R., Ekonomia. Makroekonomia, PWE, Warszawa 1999. Bernaciak A., Ograniczenie antropogenicznych obciążeń środowiska jako czynnik trwałego i zrów-

noważonego rozwoju, Wydawnictwo Uniwersytetu Przyrodniczego w Poznaniu, Poznań 2009. Geise M., Wpływ wybranych problemów gospodarki globalnej na rozwój lokalny, Wydawnictwo

Uniwersytetu Ekonomicznego w Bydgoszczy, Bydgoszcz 2009. Janikowski R., Zrównoważony rozwój lokalny, PAR, Warszawa/Katowice 2006. Juchnicka M., Proniewski M., Procesy metropolizacyjne w Polsce – metropolizacja przestrzeni, [in:]

W. Czarnecki, M. Proniewski (eds.), Metropolie, problemy rozwoju, Wydawnictwo Wyższej Szkoły Finansów i Zarządzania w Białymstoku, Białystok 2009.

Karwińska A., Gospodarka przestrzenna, PWN, Warszawa 2008. Michałowski A., Usługi środowiska a rozwój miast, [in:] W. Czarnecki, M. Proniewski (ed.), Metro-

polie, problemy rozwoju, Wydawnictwo Wyższej Szkoły Finansów i Zarządzania w Białymsto-ku, Białystok 2009.

Mierzejewska L., Rozwój zrównoważony miasta, Wydawnictwo UAM, Poznań 2010. Olaczek R., Czy wiek XXI będzie erą ekologiczną?, [in:] A. Traut-Seliga (ed.), Ochrona przyrody

szansą rozwoju regionalnego, PRINTPAP, Skierniewice 2010. Rogall H., Ekonomia zrównoważonego rozwoju, ZYSK, Poznań 2010.

Legal acts Prawo ochrony środowiska z dnia 27 kwietnia 2001 r. (Dz.U. 2001 r. nr 62, poz. 627, z późn. zm.)

[Environment Protection Act dated 27 April 2001, Journal of Laws 2001, no. 62, item 627 with later amendments].

Ustawa o ochronie przyrody z dnia 16 kwietnia 2004 r. (Dz.U. 2004 r. nr 92, poz. 880, z późn. zm.) [Nature Protection Act dated 16 April 2004, Journal of Laws 2004, no. 92, item 880 with later amendments].

Ustawa o samorządzie gminnym z dnia 8 marca 1990 r. (Dz.U. z 2001 r. nr 142, poz. 1591, z późn. zm.) [The Local Self-Government Act dated 8 March 1990, Journal of Laws 2001, no. 142, item 627 with later amendments].

Websites [WWW1] http://www.kampinoski-pn.gov.pl/. [WWW2] http://www.stat.gov.pl.


ZRÓŻNICOWANE SĄSIEDZTWO W PRZESTRZENI – METROPOLIE I PARK NARODOWY

Streszczenie: Metropolizacja – proces związany z przekształcaniem wielkich miast i naby-waniem przez nie nowych cech i umiejętności – jest wyzwaniem dla gospodarki przestrzen-nej. Równolegle skutki uboczne prowadzonych przez człowieka procesów gospodarczych wymusiły na społeczności światowej podjęcie globalnych działań prewencyjno-napraw-czych, których efektem jest m.in. tworzenie obszarowych form ochrony przyrody. W arty-kule ukazano przykład różnorodności sąsiedztwa w przestrzeni jakim jest sąsiedztwo metro-polii oraz parku narodowego.

Słowa kluczowe: przestrzeń, obszar chroniony, metropolia.

Part 2

The results of European regional space

research and analyses



Małgorzata Markowska, Danuta Strahl Wrocław University of Economics

POLISH REGIONS AGAINST THE BACKGROUND OF EUROPEAN REGIONAL SPACE WITH REGARD TO SMART GROWTH – AGGREGATE PERSPECTIVE*

Summary: This study presents the assessment of ranking regarding Polish NUTS 2 level regions against the background of European space, with regard to aggregate measure values in smart growth pillars, i.e. smart specialization, creativity and innovation. Each of them was depicted by a set of characteristics. The evaluation of Polish regions’ positions was also per-formed considering the aggregate assessment of smart growth level.

Keywords: aggregate measure, smart growth, position, Polish regions.

1. Introduction

Smart growth is included among the three priorities of Europe 2020 Strategy [Europa 2020. Strategia... 2010] and is understood as the development of a knowledge-based economy and innovation. The implementation of seven flagship projects is expected to facilitate the accomplishment of ambitious strategic objectives. In Poland the realization of a national operational programme is planned in the course of the next funding period. The programme, under the working name of “Smart growth”, is focused on innovation, research work and their relations with the business sector.

The objective of this study is to evaluate the position of Polish NUTS 2 level regions against the background of European space with regard to the values of aggregate measures referring to smart growth and also in relation to the selected pillars, i.e. smart specialization, creativity and innovation, of which each one is illustrated by an appropriate set of characteristic qualities.

* The study was prepared within the framework of the research grant No. 2011/01/B/HS4/04743 entitled: Classification of European regional space in the perspective of intelligent development con-cept – dynamic perspective.

90 Małgorzata Markowska, Danuta Strahl

2. Smart growth – the strategic objective of Europe 2020

The development of European and global civilization faces on-going challenges. Europe 2020 Strategy [Europa 2020. Strategia... 2010] which is the continuation of the Lisbon Strategy, constitutes a part of the development oriented vision for the European continent covering three related priorities [A strategy for smart... 2010]:

1) smart growth: knowledge and innovation based economy growth; 2) sustainable growth: support for an efficiently operating economy, taking

effective advantage of the available resources, more environmentally friendly and more competitive;

3) inclusive growth: support for an economy featuring a high level of employment, ensuring social and territorial cohesion.

The accomplishment of the goals listed above requires harmonized activities at each of the following levels: European, national, regional and local. The EU member states, by entering into partnership cooperation with regional and local entities, are supposed to implement the National Reform Programmes decided on and agreed by each of them, since they define the methods responsible for carrying out both the priorities and the objectives of the Europe 2020 strategy. The primary support instruments applied by the European Commission with reference to the implementation of these priorities and objectives, take the form of the following projects: – Innovation union: the concentration of research, development and innovation

policy on major challenges and activities focused on eliminating the gap occurring between science and the market, which is expected to result in transforming innovation into products,

– Youth on the move: actions aimed at the improvement of quality and international attractiveness of the European higher education system by means of promoting the mobility of students and young professionals,

– A digital agenda for Europe: increased sustainable socio-economic advantages as the result of a uniform digital market based on the ultra-fast Internet,

– A resource-efficient Europe: support for reorientation towards a low-carbon economy using its resources more efficiently,

– Industrial policy for Europe: support directed towards the European industrial base, mainly referring to competitiveness, the promotion of entrepreneurship and learning new skills,

– Agenda for new skills and jobs: establishing conditions for the transformation of job markets, which is supposed to enhance employment rate increase and the sustainability of social models,

– European agenda for fighting poverty: ensuring economic, social and territorial cohesion implemented as the form of support for the poor or individuals suffering social exclusion, and in consequence facilitating their active social participation.

Polish regions against the background... 91

With reference to each of the above projects, measurable targets were defined regarding the economy in the united Europe, i.e.: – share of expenditure on R&D in the EU GDP – not less than 3%, – workforce participation rate of people aged 20–64 at the level of 75%, – less than 10% share of student dropouts, – at least 40% share of university graduates aged 30–34, – reduced greenhouse gasses emission by at least 20% compared to the 1990

level and the improvement of energy efficiency by 20% where the share of energy originating from renewable sourced makes up 20% of the overall energy,

– reduction – by at least 20 million – of the number of people at risk of poverty and social exclusion,

the achievement of which is supposed to be finalized by 2020.

3. Aggregate approach in measuring the complex phenomenon of smart growth

In the EU strategic documents, smart growth is defined as the development of a knowledge-based economy and innovation [A strategy for smart... 2010]. In flagship initiatives and priorities, as well as other documents, the more effective support for research, development and innovation has been emphasized as particularly significant. It is also crucial to strengthen the knowledge triangle along with digital economy potential optimization. The increase of qualified workforce resources is of fundamental importance, so that it can more intensely respond to the job market requirements. The emphasis is also on lifelong learning and on-going efforts towards the improvement of both the quality and efficiency of the functioning education systems and training. More and more people deciding to undertake university education (or the equivalent) are also of key importance along with the decreasing share of people who drop out of the education system prematurely.

The suggested approach is in line with the measurement concept prepared by the World Bank for the assessment of a Knowledge-Based Economy (KBE). Within the framework of the KBE evaluation, it was accepted that knowledge creation becomes more and more effective as well as its acquisition, transfer and implementation in companies, organizations, and by individuals and communities, since this facilitates economic and social development [Knowledge Assessment... 2006; Kukliński 2001; Woroniecki 2001; Zienkowski 2003].

Regarding the concept of KBE, it was agreed that it is composed of four pillars: education and training, information technology infrastructure, economic incentives and institutional conditions and also innovation systems. The study presents an analysis of Europe 2020 strategy objectives, a review of smart growth flagship projects and statistical resources of databases for the EU NUTS 2 level regions, in


order to indicate areas allowing for the identification of pillars and to specify the initial set of smart growth measures. The performed analysis assumes that three pillars represent smart growth components: smart specialization, creative regions and innovation, for which the following measures, facilitating smart growth identification, were suggested.

Pillar I – smart specialization (SS), smart specialization indicators (whether a given variable is a stimulant (S) or a destimulant (D)was indicated in brackets):

SS1 – workforce employed in knowledge-intensive services as the share of workforce employed in services (S),

SS2 – average growth rate of workforce in knowledge-intensive services as the share of workforce employed in services (S),

SS3 – workforce in mid and high-tech industry sector (as % or workforce employed in industry) (S),

SS4 – average working rate of workforce in mid and high-tech industry sector (as % of workforce employed in industry) (S).

Pillar II – creative regions (CR), creativity indicators: CR1 – share of tertiary education workforce in total workforce number in the

region (S), CR2 – share of population aged 25–64 participating in life-long learning in a

region (S), CR3 – human resources in science and technology as % of working population (S), CR4 – people aged 15–64 born in a different country as % of population aged

15–64 (S), CR5 – unemployment rate as % of active population (D), CR6 – basic creative class (% of population aged 15–64) (S), CR7 – share of residents in their working age who moved from different EU

regions in the recent year (S), CR8 – tertiary education graduates aged 30-34 (% of population aged 30–34) (S), CR9 – access to broadband Internet (% of households) (S). Pillar III – innovation (I), indicators of innovation potential, capacity and

effects: I1– patents registered in the European Patent Office (EPO) per 1 million of

workforce (S), I2– productivity in industry and service sectors (PPS per worker) index EU27 =

100 (S), I3– employment rate (% of population aged 20–64) (S), I4– investments in private sector per 1 inhabitant by purchasing power parity (S), I5– R&D expenditure in business sector (% of GDP) (S), I6– R&D expenditure (% of GDP) (S). The list presented above represents, on the one hand, the consensus between

the ambitions and desires of the authors, and on the other the possibility of obtaining indispensable information necessary for further database calculations.


Aggregate measures become useful in analyses referring to the development level evaluation of multidimensional phenomena and resulting in the comparison of objects (regions) and their linear arrangement with regard to the analysed phenomenon level.

Regional comparisons may be performed considering the available set of diagnostic variables characterizing the discussed problem, which cannot be directly investigated or assessed, since it is impossible to measure the smart growth level directly as well as the pillars which comprise it. Synthetic variables are most frequently applied (taxonomic measures of development) in order to describe the aggregate complex phenomena.

While selecting diagnostic variables, it is crucial to define the synthetic criterion precisely. Variables chosen for the description of the analysed problem may refer to it either directly or indirectly, however, the direct relation means an opportunity to measure the particular aspect of a given phenomenon, while a direct one facilitates the presentation of broader immeasurable aspects.

An agreed set of variables was prepared, as has already been indicated, in the process of their substantive selection and the analysis of data availability in databases. In order to compare variables, the nature of each of them was defined (stimulant, destimulant, nominant) and next, by means of applying unitarization [Kukuła 2000], i.e. dividing variable value, or its distance from one of the variability extreme values by the range, due characteristics were normalized. The variables were transformed using the following formulas:

{ }

{ } { }'

min;

max min

ij i ij

ij

i ij i ij

x xx

x x

−=

− stimulant,

{ }

{ } { }'

max;

max min

i ij ij

ij

i ij i ij

x xx

x x

−=

− destimulant,

where: i – object (region) number, j – characteristics number, max, min – extreme values in the set of a given characteristics objects.

The fixed range of normalized characteristics variability, which take values in the range of [0; 1], was obtained as the result of the above method application.

An aggregate measure, applying comparable variables, was prepared as the synthetic index ranking for each pillar separately (smart specialization – 4 variables, creative regions – 9, innovation – 6 variables) and in total for all variables (19 variables). A synthetic indicator was separately defined for each of EU NUTS 2 level regions and calculated based on the following formula:


'

1

100,

ij

m

i jjW a x

m == ∑

where: m – number of characteristics considered (depending on the pillar: 4, 9, 6 and for smart growth, total of 19),

αj – weight of j-th variable. Since it was assumed that all variables influence regional smart growth to the

same extent, the weights assigned to the variables were set at a fixed level (equal to 1) – therefore, the above formula took the following form:

'

1

100.

ij

m

i jW x

m == ∑

Index values may be included in the range of [0; 100], the higher the index value

the higher the level of smart growth (or a particular pillar) in a region.

4. The position of Polish regions regarding aggregate measures of smart growth and the respective pillars

The assessment of the position of Polish regions against the background of other EU territorial units was prepared for NUTS 2 level [Regions in the European Union... 2007], however, not for the total of the 271 regions. The analysis does not cover French overseas regions (Guadeloupe, Martinique, Guyane, Réunion) and two Spanish regions (Ciudad Autónoma de Ceuta, Ciudad Autónoma de Melilla) due to the absence of all data – the discussion refers to 265 regions. The timeframe of the study, resulting from data availability in the Eurostat base and EU reports as well as their presentation, covered mainly the period of 2000 – 2010. Therefore, it referred to the year 2007 for CR6, I2, I5, I6, 2008 (for CR1–CR5, CR8, I1, I3) and 2009 (CR9) and also 2010 (SS1 and SS3). Additionally, in the case of I4characteristics it was the mean value covering the period of 2002-2006, the mean value referring to 2007–2008 for CR7, while in the case of SS2 and SS4

characteristics – the geometric mean for the period of 2000–2010. The highest values of aggregate measure for the overall smart growth

assessment in the European regions – over 60 – was obtained for the British region of Inner London (65.7) and Danish Hovedstaden (61.9), while the lowest values – below 20 – for the twelve following regions: Romanian – Nord-Est (16.7), Centru (17.1), Sud-Est (19.2), Sud-Muntenia (19.7), Italian – Sicilia (16.8), Campania (18.1), Puglia (19.7), Calabria (19.9), Bulgarian – Severozapaden (17.2), Yuzhentsentralen (19.7), Severoiztochen (19.8) and the Greek region Ionia Nisia (18.5). The relation of measure values for regions ranked at extreme positions amounts to almost 4.


Having analysed the particular smart growth pillars the leading regions could be indicated, as well as those which were ranked at the bottom regarding aggregate measures values: – smart specialization: measure value not less than 60 features four German

regions, i.e. Bremen (66,3), Kassel (64,7), Saarland (62,1) and Braunschweig (60,0) and also French Corse (62,4), measure values below 20 for the Spanish region Comunidad Valenciana(18);

– creative regions: among eleven regions the measure of which was not less than 60, four British ones were included (Inner London – 89.5, Outer London – 70.7, Berkshire, Buckinghamshire and Oxfordshire – 64.3 and Surrey, East and West Sussex – 60.3), Danish Hovedstaden (69.9), two Dutch regions (Utrecht – 67.9 and Noord-Holland – 63.5) and two Belgian ones (Prov. Brabant Wallon – 62.3 and Prov. Vlaams-Brabant – 60.0), Swedish Stockholm (67.4) and Finnish Etelä-Suomi (60.8), while the lowest measure value – 20 and less refers to five Greek regions (Ionia Nisia – 17.5, Dytiki Makedonia – 18.6, Peloponnisos – 18.9, Sterea Ellada – 19.1, Notio Aigaio – 19.1), four Romanian regions (Sud-Muntenia – 16.0, Nord-Est – 18.2, Sud-Vest Oltenia – 18.8, Sud-Est – 19.3) and the Italian region Sicilia (19.6);

– innovation: measure value above 60 was recorded only for the German region of Stuttgart (71.3), in the case of 86 regions the measure value did not exceed 20, while among regions for which the value of less than 10 was assigned, three Hungarian regions were included (Észak-Magyarország – 7.2, Dél-Dunántúl – 7.6, Észak-Alföld – 9.1) and three Romanian (Sud-Est – 7.7, Centru – 9.6, Nord-Vest – 9.6), two Bulgarian (Severentsentralen – 7.8 and Severozapaden – 8.4) and two Italian (Calabria – 7.9 and Sicilia – 9.9) and as many as six Polish regions (Zachodniopomorski – 8.3, Warmińsko-Mazurski – 8.5, Lubuski – 8.9, Kujawsko-Pomorski – 9.0, Opolski – 9.0 and Lubelski – 9.9). Polish regions, with regard to the aggregate measure values referring to

particular smart growth pillars, are ranked at the bottom of the list in relation to innovation, since as many as the six listed above presented, for this particular pillar, have a measure of less than 10, additionally 15 of them are listed among the last three hundred EU regions – see Table 1. Only the Mazowiecki region, characterized by an 18.6 measure value, is listed as 192 out of the 265 analysed EU regions. Additionally, it should be also indicated that none of the Polish regions presented a measure value above the EU average, while the measure for the Mazowiecki region amounted to 75% of the EU mean value (see Figure 1).

With reference to smart specialization, which evaluates workforce share in the sector of knowledge-based services and in high and mid-tech industry, as well as the average rate of changes recorded in these shares within the last decade, Polish regions are ranked at positions from 56 – Dolnośląski presenting a measure value at the level of 47.2 (the only one in the top one hundred) down to 234 – Mazowiecki featuring


a measure value equal to 29,3. Measure values exceeding the EU average of 39.7, apart from the Dolnośląski region, were also recorded in the case of Lubuski (41.9), Podkarpacki (40.9) and Warmińsko-Mazurski (40.2) – see Figure 1.


Figure 1. Aggregate measure values against the background of adequate EU results

Source: authors’ compilation by means of the Statistica programme.


The Mazowiecki region, with regard to the aggregate measure value illustrating

the pillar of creative regions, concludes the first one hundred on the list of the EU NUTS 2 level regions – the due measure value is 44.8, the regions listed among the third hundred ones are: Kujawsko-Pomorski – position 207, a measure value equal to 30.6 and Podkarpacki – position 204 (measure – 31.3).

Table 1. Regions ranked regarding aggregate measure values against the background of the European space

Positions regarding aggregate values for pillarsRegion

SS CR I

Positions regarding aggregate measure values

for smart growth Łódzki 171 178 234 209 Mazowiecki 234 100 192 162 Małopolski 218 164 222 202 Śląski 217 163 248 213 Lubelski 174 197 251 223 Podkarpacki 114 204 247 220 Świętokrzyski 214 199 245 233 Podlaski 184 180 236 214 Wielkopolski 229 179 226 218 Zachodniopomorski 197 148 260 203 Lubuski 105 183 257 208 Dolnośląski 56 173 239 186 Opolski 182 167 255 211 Kujawsko-Pomorski 211 207 256 237 Warmińsko-Mazurski 123 192 258 216 Pomorski 169 140 229 183

Source: authors’ estimations based on Eurostat data.

The globally assessed smart growth allows for indicating whether only three regions are ranked among the second hundred, including the Mazowiecki– presenting a measure value of 33.3 at position no. 162, Pomorski (measure – 30.6), ranked as 183 and Dolnośląski (30.4) listed as 186, while the other 13 are ranked at positions from 202 (Małopolski) to 237 (Kujawsko-Pomorski).

The globally assessed smart growth allows for indicating whether only three regions are ranked among the second hundred, including Mazowiecki – presenting a measure value of 33.3 at position no. 162, Pomorski (measure – 30.6), ranked as 183 and Dolnośląski (30.4) listed as 186, while the other 13 are ranked at positions from 202 (Małopolski) to 237 (Kujawsko-Pomorski).

5. Final remarks

The ranking of Polish regions regarding aggregate measure values for particular pillars, i.e. smart specialization, creative regions and innovation, as well as the aggregate assessment of smart growth, are far from satisfactory due to the fact that

Polish regions against the background... 99 the only place among the first one hundred is occupied by the Dolnośląski region with regard to smart specialization, or position no. 100 for Mazowiecki in relation to the measure value for regional creativity assessment; also places among the second hundred taken by thirteen other Polish regions do not present high results against the background of the European space at NUTS 2 level.

This is also true regarding innovation, since the ranking presents very distant positions of Polish regions too – the first of the Polish regions is ranked as low as 192 (Mazowiecki) and positions 162 (Mazowiecki), 183 (Pomorski) and 186 (Dolnośląskie) place Polish regions also down the list with reference to the assessed synthetic smart growth.

References

A strategy for smart, sustainable and inclusive growth, Communication from the Commission, Eu-rope 2020, European Commission, COM(2010) 2020 final, Brussels, 2010

Europa 2020. Strategia na rzecz inteligentnego i zrównoważonego rozwoju sprzyjającego włączeniu społecznemu, European Commission, Communication from the Commission, COM(2010), 2010.

Europe 2020. Flagship Initiative Innovation Union, Communication from the Commission to the Eu-ropean Parliament, the Council, the European Economic and Social Committee and the Commit-tee of the Regions, Brussels, 6.10.2010, COM(2010) 546 final, SEC(2010) 1161, 2010.

Knowledge Assessment Methodology (KAM), World Bank Institute, World Bank, Washington 2006. Kukliński A., Gospodarka oparta na wiedzy: Wyzwanie dla Polski w XXI wieku, KBN, Warszawa 2001. Kukuła K., Metoda unitaryzacji zerowanej, PWE, Warszawa 2000. Regions in the European Union. Nomenclature of territorial units for statistics NUTS 2006/EU-27,

Series: Methodologies and Working Papers, European Commission, Luxemburg 2007. Woroniecki J., Nowa gospodarka: miraż czy rzeczywistość? Doktryna, praktyka, optyka OECD, [in:]

Gospodarka oparta na wiedzy: Wyzwanie dla Polski w XXI wieku, KBN, Warszawa 2001. Zienkowski L., Wiedza a wzrost gospodarczy, Scholar, Warszawa 2003.

POLSKIE REGIONY NA TLE EUROPEJSKIEJ PRZESTRZENI REGIONALNEJ W KONTEKŚCIE INTELIGENTNEGO ROZWOJU – UJĘCIE AGREGATOWE

Streszczenie: W pracy dokonano oceny pozycji polskich regionów szczebla NUTS 2 na tle europejskiej przestrzeni z uwagi na wartości miar agregatowych w filarach inteligentnego rozwoju, tj.: inteligentnej specjalizacji, kreatywności i innowacyjności, z których każda zo-stała zilustrowana zestawem charakterystyk. Dokonano także oceny pozycji regionów Polski z uwagi na oceniany sumarycznie poziom inteligentnego rozwoju.

Słowa kluczowe: miara agregatowa, inteligentny rozwój, pozycja, regiony Polski.

PRACE NAUKOWE UNIWERSYTETU EKONOMICZNEGO WE WROCŁAWIU RESEARCH PAPERS OF WROCŁAW UNIVERSITY OF ECONOMICS nr 286 2013


Beata Bal-Domańska Wrocław University of Economics

DOES SMART GROWTH ENHANCE ECONOMIC COHESION? AN ANALYSIS FOR THE EU REGIONS OF NEW AND OLD ACCESSION COUNTRIES*

Summary: The objective of the paper is to assess relations between smart growth described by means of three pillars (smart specialization, creativity, innovation) and economic cohe-sion by measuring both the intensity and direction of their mutual relations. The study was conducted among NUTS 2 level regions of the European Union countries divided into the regions of new accession from 2004 and 2007 (EU12) and the remaining regions, i.e. old EU ones (EU15). The study covered the period of 2000–2009. An analysis of smart growth pil-lars’ impact on economic cohesion confirmed that the key factor and also the one which de-velops most dynamically is represented by human capital creative resources (pillar II) in both the EU12 and the EU15 regions.

Keywords: smart growth, economic cohesion, NUTS 2 level regions of the European Union countries.

1. Introduction

Within the framework of the EU Europe 2020 strategy [A Strategy... 2010], smart growth is listed as one of the major policy goals aimed at the situation improvement in such domains as education, research, innovation and digital society. It can be demonstrated that smart growth represents the set of instruments stimulating dynamic growth and therefore enhancing economic and social cohesion, which results in upgrading the inhabitants’ standard of living.

The Europe 2020 strategy defines three goals for the whole European Union, the aim of which is to support smart growth. They are as follows:

* The study was prepared within the framework of NCN nr 2011/01/B/HS4/04743 research grant

entitled: The classification of European regional space in the perspective of smart growth concept – dynamic approach and constitutes a part of the series of analyses referring to these issues.

Does smart growth enhance economic cohesion? 101

1) increase the overall level of public and private investment in research and development (R&D) up to 3% of EU GDP and ensure better conditions for R&D and innovation,

2) improve the employment rate for the population aged 20–64 up to 75%, mainly by means of enhancing larger numbers of women, youth, the elderly, low-skilled workers and legal emigrants entering the job market,

3) provide a better level of education by cutting the percentage of young people dropping out of the education system to below 10% and take up efforts resulting in at least 40% of the population aged 30–34 obtaining tertiary level education (or equivalent).

These indicators refer to goals set for the whole EU and additionally, for individual countries, national targets were also specified. With reference to Poland, goals regarding two indicators were defined at a slightly lower level, namely: 1.7% GDP for research and development, 71% in the case of the employment rate for the population aged 24–64. On the other hand, slightly higher requirements were put forward before the education system for which it was assumed that the number of students dropping out of school should not exceed 4.5% and the amount of higher education graduates should reach the level of at least 45%.

The objective of this paper is to provide an assessment of relations between smart growth and economic cohesion by measuring the intensity and direction of mutual relations. The study was conducted among NUTS 2 level regions of European Union countries divided into the regions of new accession from 2004 and 2007 (EU12), as well as the remaining regions of the, so called, old European Union (EU15). The study covers the period of 2000–2009.

2. Research procedure and data

The basic problem encountered while preparing the research was defining the adequate measures of smart growth and economic cohesion, since these are complex phenomena for which adequate measures are difficult to find.

The study presented in this paper was designed at a regional level (NUTS 2). The availability of data at this level is limited and not all smart growth indicators are available. Therefore the measures defined in the study by [Markowska, Strahl 2012] constituted the starting point for smart growth measurement. From them the measures for smart growth and economic cohesion measurement were selected. With reference to the analyzed approach, smart growth is defined by means of indicators grouped in 3 pillars: pillar I – smart specialization, pillar II – creativity (Knowledge Based Economy KBE) and pillar III – innovation.

Two qualities were used as smart growth measures in pillar I – smart specialization (SS): – KIS – employment in knowledge-intensive services as the share of total

employment (%),

102 Beata Bal-Domańska

– HTMS – employment in high and medium high-technology manufacturing as

the share of total employment (%). The above variables characterize the scale of employment in enterprises

implementing advanced technologies and knowledge as well as requiring ongoing investment into research and development. Therefore it may be stated that they result from market and competition pressure on the development of knowledge and innovation based activities.

Qualities characteristic for human capital in a region, representing the basic factor enhancing regional creativity and the primary factor of innovation facilitating and implementing innovative solutions, were used as measures for pillar II of smart growth – regional creativity (CR). The study takes into account: – TETR – share of tertiary education workforce in the overall number of

workforce in a region (%), – HRST – human resources in science and technology as a percentage of the

active population (%). The following measures were used in relation to pillar III – innovation

activities (INN) potential and capacity: – R&D – research and development expenditure in the business sector (GDP %).

This quality is responsible for identifying which part of financial means is allocated by enterprises to research and development regarding the size of GDP in a region. The results of such activities bring about positive effects for a region in which a given unit and research base is located and may also be disseminated to other regions.

All variables constituting smart growth pillars represent stimulants. Their higher values strengthen developmental processes focused on innovation and a knowledge-based economy, while the processes which accompany them enhance economic cohesion.

Economic cohesion (SGMECON) is described by means of GDP per capita in PPS. This indicator is regarded as a relatively good measure of economic results. For comparison these values were calculated per 1 inhabitant.

The study was performed following three stages which covered: 1) collecting statistical materials for the description of economic cohesion and

smart growth of regions – the EUROSTAT1 data base was the source of data for the indicators. This allowed for obtaining methodologically comparable data for the regions at EU NUTS 2 level. The selection of regions and the research period was limited by statistical data availability. The study covers 205 out of the 271 EU regions at NUTS 2 level, which constitutes 76% of the European Union regions population.2

1 http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/. 2 The study does not cover the following 53 regions: Danish, Slovenian, Belgian, Romanian, Swed-

ish, Malta, Luxemburg, Cyprus, Estonia, 5 out of 37 German regions (Brandenburg – Nordost, Branden-burg – Südwest, Dresden, Leipzig and Sachsen-Anhalt), 5 out of 37 British regions (Eastern Scotland,

Does smart growth enhance economic cohesion? 103 Data gaps were filled by means of an extra and interpolation method. Among the regions chosen for analysis, 43 described the new accession countries (EU12) and 162 the old EU countries (EU15). The study covered the period of 2000–2009;

2) constructing synthetic measures for each of the smart growth pillars – smart growth measures are presented in a standardized form. Therefore the procedure of unitization with zero minimum and aggregate measures (AM) for composite variables (pillar I and II) were applied. This allowed for presenting each variable value in the range from [0;1]. In the process of AM construction, Euclidean distance and common growth pattern, defined for each variable, were used considering all regions in all studied years [Walesiak 2011, pp. 78–79].

3) estimating linear econometric models to describe relations which combine economic cohesion with particular pillars of smart growth by means of applying panel data in (NUTS 2) regions of EU15 and EU12 countries, which is presented in the form of the following model construction:

, , ,

ECON it

l li l SM it itSGM SGM (1)

where: ,lECON itSGM – an aggregate describing economic cohesion in i-th region

(I = 1, 2, …, N) and (t = 1, 2, …, T) t-th year;

l

itSMSGM , – variable for l-th l (l = I, II, III) smart growth pillar in i-th re-

gion and t-th year;

l – evaluations of parameters measuring the impact intensity and

direction of l-th smart growth pillar on economic cohesion; αi – constant in time individual effects for i-th region.

Models in (1) constituted the grounds for the selection of variables used in model constructions allowing measurement of all smart growth pillars’ joint impact on economic cohesion, which may be presented as follows:

, ,l

ECON it i l SM it itl

SGM SGM . (2)

In order to estimate evaluations of l structural parameters of models, adequate

estimation techniques, typical for panel data, were applied [Maddala 2006; Wooldridge 2002; Verbeek 2000; Greene 2003; Dańska 2000]. LSDV (Least Squares with Dummy Variable) model was applied in the study. The final model (2) structure resulted from the selection of variables (pillars) based on the significance of

South Western Scotland, North Eastern Scotland, Highlands and Islands and also Northern Ireland), 1 out of 5 Finnish regions (Åland), 5 out of 26 French regions (Corse, Guadeloupe, Martinique, Guyane and Réunion), 2 out of 19 Spanish regions (Ciudad Autónoma de Ceuta (ES), Ciudad Autónoma de Melilla (ES)), 1 out of 19 Italian regions (Valle d’Aosta/Vallée d’Aoste), 3 out of 7 Portuguese regions (Algarve, Região Autónoma dos Açores (PT), Região Autónoma da Madeira (PT)) and 6 out of 13 Greek regions (Ipeiros, Ionia Nisia, Dytiki Makedonia, Voreio Aigaio, Notio Aigaio, Kriti).


structural parameters’ evaluations in single regression models (1) and a posteriori elimination procedure [Nowak 2006]. In the process of econometric models estimation, certain problems related to meeting due assumptions, referring to the applied methods, may occur, e.g. autocorrelation, and heteroskedasticity. In order to minimize their possible negative effects, in assessing the significance of structural parameters evaluation, robust standard errors [Arellano 2003] were used. All estimations were performed in the GRETL programme.3

3. Statistical analysis of regional economic cohesion and smart growth

The level of economic cohesion in EU regions is extensively diversified in space. Major differences are observed in the level of growth regarding the group of EU12 and EU15 regions (see Figure 1). If the GDP aggregate in PPS is considered per 1 inhabitant it appears that the mean value for the EU12 group in 2000 was at the level of 9,311.63, while in the EU15 it was over twice as large (2.27) and amounted to 21,117.28. Slightly smaller differences (1.83) persisted in the final period of the study, i.e. in 2009 (EU12 – 15,305.16 and EU15 – 27,938.93), which may be observed as the decrease in differences between the old EU regions and those of the new accession.

The EU12 and EU15 regions differ between each other regarding smart growth (see Figure 2). The EU15 regions are better prepared for smart growth idea implementation in each of the analyzed areas (innovation, creativity and specialization). The largest differences between the groups of regions under analysis are observed in relation to the scale of investment in research and development made by enterprises (SGMINN). In the EU12 regions (SGMINN) value presented a very low level, i.e. less than 0.04. While in the case of the EU15 regions the measure median was ranging from 0.114 at the beginning up to 0.123 at the end of the studied period in the years 2000–2009. The situation in regional innovation improved only slightly. At the same time, extensive disproportions between regions persisted within each group, which is presented in Figure 2 in the form of outliers (at the top). This results from the fact that there are a few regions which are definitely the leading ones regarding the scale of investments in R&D. In the EU12 countries the following Czech regions were the leading ones in investing the largest part of GDP produced in a region into R&D: Strední Cechy, Jihovýchod and Strední Morava. In the case of the EU15, the top ranking positions were occupied by the German regions: Braunschweig (DE) and Stuttgart (DE).

The situation improved significantly in the case of both groups of regions (EU12 and EU15) in the creativity pillar (SGMCR). (SGMCR) median value in the EU12

3 www.kufel.torun.pl.

Does smart growth enhance economic cohesion? 105

0.2

.4.6

.81

SM

R_G

OS

P

UE12 UE152000 2009 2000 2009

Figure 1. The distribution of economic cohesion measure in EU12 and EU15 regions in the years 2000 and 2009

Source: author’s compilation in the STATA programme.

01

0,2

0,6

0,4

0,8

UE12 UE152000 2009 2000 2009

SMR_IS SMR_KR SMR_INN

Figure 2. The distribution of smart growth synthetic measures values for EU12 and EU15 regions in the years 2000 and 2009

Source: author’s compilation in the STATA programme.


group of regions increased from 0.205 in 2000 up to 0.33 in 2009. Therefore these regions came closer to (SGMCR) value in the EU15 group of regions observed in the initial period of the study (in 2000 it was 0.353). As a result of the situation improvement in 2009 the measure, in the cross-section of the EU15 regions, increased to the level of 0.472.

A very similar situation referred to the EU12 and EU15 regions regarding smart specialization (SGMSS). The mean value of SGMSS (median) in 2000 for the EU12 was 0,227 and for the EU15 0.330, while in 2009 the respective values were 0.287 and 0.330 (as in 2000). A positive development is observed in the growing importance of knowledge-based economy sectors, in the analysed period, regarding the economic structure of the EU12 regions and therefore their situation was approaching that of the EU15 regions.

4. The assessment of smart growth influence on economic cohesion in regions

The strengthening of human capital, knowledge, science and innovation potential in a region results, in a long-term perspective, in regional economic and competitive position strengthening. Tables 1–4 present estimation results of models which allow for the assessment of each smart growth pillar impact on economic cohesion separately for the EU12 and the EU15.

Table 1. Linear models estimations (1) for each smart growth pillars and economic cohesion for (NUTS 2) regions of the new EU accession countries (EU12) in the period 2000–2009

Specification , ,ECON it

l li l SM it itSGM SGM

Coefficient of determination

R2

Akaike information

criterion

Test F (p-value)

SGMSS 0.947*** [0.215] 0.878 –1215.38 40.26 (0.000) SGMCR 0.758*** [0.094] 0.911 –1353.14 119.48 (0.000) SGMINN 0.624 [0.623] 0.849 –1122.72 41.67 (0.000)

*** significant at the level of 0.1, *** significant at the level of 0.05, *** significant at the level of 0.001. Arellano robust standard error is quoted in parentheses [ ].

Source: author’s compilation in the GRETL programme.

In the case of the EU12 new accession regions (see Table 1), two out of three smart growth pillars (model 1) presented a positive, statistically significant impact on economic cohesion, i.e. pillar I – smart specialization and pillar II – creativity.4

4 However, the model in which SGMCR is an independent variable represents a better option bet-

ter due to the Akaike information criterion.

Does smart growth enhance economic cohesion? 107 The statistically significant influence of regional innovation (pillar III) on economic cohesion could not be confirmed – which may seem surprising. The reasons should be found in the low level of outlay in research and development, as well as their rate of insignificant changes in time. In the period under analysis the size of financial means invested in research and development in relation to GDP was only slightly increasing. Therefore, one may conclude that these changes were insufficient and the observed increase of economic cohesion was inspired by other factors (e.g. the growing share of workforce in knowledge-based economy enterprises and the increase of creative resources in the region).

While assessing the simultaneous impact of both pillars (for which the statistically significant relation with economic cohesion was confirmed) it may be concluded that the increase in creative resources of human capital in a region (pillar II) represented the factor exerting the highest impact on economic cohesion improvement. The regions featuring an increase in the creative resources of human capital by a unit are also characterized by improved economic cohesion by 0.657 units ceteris paribus at each level of statistical significance. At the level of 0.05 statistical significance the statistically significant impact of smart specialization (pillar I) may also be confirmed. The situation improvement by a unit (SGMSS) is also connected with a 0.348 increase in economic cohesion ceteris paribus.5

Table 2. Linear models estimations (2) of smart growth and economic cohesion for (NUTS 2) regions of the new accession countries (EU12) in the period 2000–2009

Specification , ,1

lECON it i l SM it it

l

SGM SGM

Coefficient

of determination R2

Akaike information

criterion

Test F (p-value)

SGMCR 0.657*** [0.088] 0.915 –1367.18 30.31 (0.000)

SGMSS 0.348** [0.167]



All three smart growth pillars (Table 3) were significantly related to economic cohesion regarding the old EU (EU15) regions. In the case of pillar I and II this

5 Conclusions following the analysis of parameter estimation values referring to single structural

regression indicate the stronger impact of smart specialization on economic cohesion than that of creativity. In the case of single regression this seems to result from overtaking the variability of other factors than these included in the SGMSS variable. Multiple regression allowed for considering, at the same time, the impact of different variables and therefore separating variability into particular factors, hence the conclusions drawn should be regarded as final.


was true for any significance level, while in the case of pillar III to a lesser extent (at 0.05 significance level).

Table 3. Linear models estimations (1) for each smart growth pillars and economic cohesion for (NUTS 2) regions of the old EU accession countries (EU15) in the period 2000–2009

Specification , ,ECON it

l li l SM it itSGM SGM

Coefficient of determination

R2

Akaike information

criterion

Test F (p-value)

SGMSS 0.187*** [0.067] 0.879 –6266.81 54.44 (0.000) SGMCR 0.502*** [0.025] 0.944 –7524.85 97.36 (0.000) SGMINN 0.112** [0.052] 0.879 –6261.63 59.79 (0.000)



The economic cohesion of the EU15 regions persists under the influence of smart growth pillars included in two pillars – creative and innovative (Table 4) with the leading role played by the creative pillar (II). The situation improvement regarding creativity by 1 unit results in economic cohesion higher by 0.499 of a unit ceteris paribus. On the other hand, the measure increase for innovation pillar by a unit had an insignificant impact on the increase of economic cohesion (structural parameter was evaluated as 0.049).

Table 4. Linear models estimations (2) of smart growth pillars and economic cohesion for (NUTS 2) regions of the old EU accession countries (EU15) in the period 2000–2009

Specification , ,1

ECON it

li l SM it it

l

SGM SGM

Coefficient

of determination R2

Akaike information

criterion

Test F (p-value)

SGMCR 0.499*** [0.012] 0.945 –7532.61 96.89 (0.000)

SGMINN 0.049*** [0.0167]



In the summary of the obtained results, it may be easily noticed that the size of human capital creative resources in a region exerted the highest impact on economic cohesion (out of the pillars responsible for outlays – II and III). One of the reasons for such a situation is their comprehensive significance manifesting

Does smart growth enhance economic cohesion? 109 itself not only in initiating and implementing innovative solutions, but in the overall performed activities, including the creation of social capital. The second reason is time. Bringing human capital to the market allows for positive results observations in a much shorter time than obtaining the effects from outlays on research and development. Another reason is the low dynamics of outlays on research and development as compared to changes in economic cohesion,, which suggests that economic cohesion dynamics is, to a larger extent, the effect of other sources.

5. Final remarks

The smart growth of regions, as the set of growth factors, influences the development processes enhancing the improvement of economic development and the inhabitants’ living standards. Therefore it represents a tool of regional policy aimed at ensuring dynamic and self-supporting regional development in a long-term perspective by strengthening their competitive advantage and, at the same time, intensifying economic and social cohesion.

While analyzing the influence of smart growth pillars on economic cohesion in the cross-section of EU12 and EU15 regions, it was noticed that the key factor, and also the one which develops most dynamically, is represented by human capital resources (pillar III) both in the EU12 and in the EU15 regions. Additionally, in the new accession regions, pillar I of smart specialization characterizes regional economy structure (workforce employed in knowledge-based economy sectors). On the other hand, in the old EU regions a slight, but significant impact on economic cohesion in the period 2000–2009 was exerted by the investment rate in research and development (pillar III – innovation).

References

A Strategy for Smart, Sustainable and Inclusive Growth, European Commission, Communication from the Commission EUROPE 2020, Brussels, 3.3.2010.

Akaike, H., A new look at the statistical model identification, IEEE Transactions on Automatic Con-trol 1974, vol. 19, no. 6, pp. 716–723.

Arellano M., Panel Data Econometrics, Oxford University Press, Oxford 2003. Dańska B., Przestrzenno-czasowe modelowanie zmian w działalności produkcyjnej w Polsce.

Zastosowanie modeli panelowych, Absolwent, Łódź 2000. Greene W.H., Econometric Analysis, Pearson Education International, New Jersey 2003. Maddala G.S., Ekonometria, PWN, Warszawa 2006. Markowska M., Strahl D., Klasyfikacja europejskiej przestrzeni regionalnej ze względu na filar inteli-

gentnego rozwoju, 4th National Scientific Conference memorial of Professor Aleksander Zeliaś “Modelling and forecasting of socio-economic phenomena” Zakopane, 15–18 May 2012, Cra-cow University of Economics Publishing House (in print).


Nowak E., Zarys metod ekonometrii. Zbiór zadań, PWN, Warszawa 2006. Verbeek M., A Guide to Modern Econometric, John Wiley & Sons, 2000. Walesiak M., Uogólniona miara odległości GDM w statystycznej analizie wielowymiarowej z wykorzy-

staniem programu R, Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu, Wrocław 2011. Wooldridge J.M., Econometric Analysis of Cross Section and Panel Data, Massachusetts Institute of

Technology, 2002.

CZY INTELIGENTNY ROZWÓJ SPRZYJA SPÓJNOŚCI EKONOMICZNEJ? ANALIZA DLA REGIONÓW PAŃSTW UNII EUROPEJSKIEJ NOWEGO I STAREGO ROZSZERZENIA

Streszczenie: Celem artykułu jest ocena relacji łączących inteligentny rozwój opisany trzema filarami (inteligenta specjalizacja, kreatywność, innowacyjność) oraz spójność eko-nomiczną poprzez pomiar siły i kierunku zależności je łączących. Badanie przeprowadzono wśród regionów szczebla NUTS 2 państw Unii Europejskiej w podziale na regiony państw nowego rozszerzenia z 2004 i 2007 roku (UE12) oraz pozostałe regiony tzw. starej Unii (UE15). Badaniem objęto lata 2000–2009. Analizując wpływ filarów inteligentnego rozwo-ju na spójność ekonomiczną, zauważono, że czynnikiem kluczowym i jednocześnie najdy-namiczniej się rozwijającym są kreatywne zasoby kapitału ludzkiego (filar II) zarówno w regionach UE12, jak i UE15.

Słowa kluczowe: inteligentny rozwój, spójność ekonomiczna, region Unii Europejskiej szczebla NUTS 2.



Elżbieta Sobczak Wrocław University of Economics

TYPOLOGY OF EUROPEAN REGIONS VS. EFFECTS OF WORKFORCE CHANGES BY THE LEVEL OF RESEARCH AND DEVELOPMENT ACTIVITIES INTENSITY*

Summary: The objective of this study is to classify the European NUTS 2 level regions re-garding structural, competitive and allocation changes in the workforce number and also to identify and characterize smart workforce structures related to the reference space, i.e. the regional area of the European Union member states. The shift-share analysis constituted the research tool applied in workforce number structural changes analysis in the European re-gional space in the period of 2008–2010.

Keywords: workforce structure, NUTS 2 European regions, shift-share analysis.

1. Introduction

In June 2010 the European Union adopted the Europe 2020 development strategy reflecting the long-term vision of a social market economy. This strategy defines the goals supporting EU member countries in their efforts focused on fighting economic crisis and providing smart and sustainable growth facilitating social inclusion. Smart growth, as defined in the strategy, consists in knowledge-intensive economy development and innovation [Europe 2020. The Strategy... 2010]. Among the qualities describing the determinants of knowledge-intensive economy development (KIE) and related to human resources, the following can be listed: workforce share in high and medium high-technology manufacturing and knowledge-intensive services in the total workforce number [Gaczek 2010, pp. 203–215]. Innovation referring to employment may result in workforce structure changes due to shifts from traditional to modern sectors. Both the

* The study was prepared within the framework of NCN nr 2011/01/B/HS4/04743 research grant

entitled: The classification of European regional space in the perspective of smart growth concept – dynamic approach and constitutes a part of the series of analyses referring to these issues.

112 Elżbieta Sobczak

direction and rate of human resources shifting decide about transformations in the nature of production and trade oriented specialization regarding countries and regions by defining their comparative and competitive position in international markets [Zielińska-Głębocka 2012, p. 62].

For the purposes of analysis covering both specialization and employment structural changes, the classification of economy sectors by R&D activities intensity is used [Wojnicka (ed.) 2006, p. 7; Nauka i technika... 2009, p. 259] also called technical intensity, calculated as the relation of expenditure on research and development activities against added value or total value of sector production [Zielińska-Głębocka 2012, p. 83].

The objective of the study is to classify European NUTS 2 level regions with regard to structural, competitive and workforce number changes allocation effects, as well as the identification and characteristics of smart workforce structures related to reference area, i.e. the regional space of the European Union member states. A shift-share analysis, called the classical analysis of Dunn shares shift, and the recurrence Barff and Knight dynamic model, represent research tools for workforce number structural changes analysis, in the European regional space, in the period of 2008–2010.

2. The research background

The classification of economy sectors by technological intensity is based on the Statistical Classification of Economic Activities in the European Community, commonly referred to as NACE, updated and changed in 2008. The names of high and medium high-technology manufacturing and knowledge-intensive services were changed and therefore in 2008 the comparability of statistical data was lost. For this reason it was accepted that the period of research will cover the years 2008–2010 (in line with NACE Rev. 2 classification).

The workforce structure constitutes the reference basis of the conducted analyses, in the cross-section of the following technological intensity sectors, prepared by Eurostat and OECD [Nauka i technika... 2009, pp. 294–295]:

1) HMHTM – High and medium high-technology manufacturing, 2) LMLTM – Low and medium low-technology manufacturing, 3) KIS – Knowledge-intensive services, 4) LKIS – Less knowledge-intensive services, 5) the remaining sectors. The analysis covered 237 European regions selected following NUTS 2 (The

Nomenclature of Territorial Units for Statistics) classification. Due to the unavailability of statistical data, the analysis does not cover the following regions: 1 Belgian, 1 Italian, 1 Dutch, 1 Austrian, 1 Finnish, 2 German, 3 Spanish, 5 British, 6 French (including 4 overseas ones) and 10 Greek regions. Information unavailability amounted to 1%. The statistical data originate from the Internet Eurostat database.

Typology of European regions... 113

The structural-geographic analysis of the workforce was performed by the intensity of R&D activities in the European NUTS 2 regions having applied the classical Dunn shift-share analysis (SSA) [Dunn 1960, pp. 97–112; Perloff et al. 1960; Suchecki (ed.) 2010, pp. 162–168, 180–183], and the dynamic competitive model by Barff and Knight [Barff, Knight 1988, pp. 1–10]. The structural and regional effects of changes were defined as recurring every couple of years in the analyzed period, which was later aggregated in line with the Barff-Knight concept.

The shift-share analysis of workforce growth rate in NUTS 2 regions allowed for: – the classification of EU regions regarding the positive and negative values of

the aggregated effects of changes: structural and competitive (regional); – the identification of human resources allocation effects resulting in the

classification of the analysed regions regarding their local specialization and competitive advantages;

– the identification of regions featuring smart workforce structure.

3. The classification of EU regions regarding the positive and negative effects of workforce number changes in economy sectors

The classical equation of the shift-share analysis indicates that the interregional diversification of the average workforce number changes rate may represent the effect of two reasons: different regional workforce structures (structural effect of changes) as well as the diversification of dynamics of workforce number changes in high-tech intensity sectors characteristic for these regions (the competitive effect also referred to as the regional or geographical effect of changes).

Following the dynamic recurrence Barff and Knight model (a modified approach to classical shift-share analysis) [Barff, Knight 1988, pp. 1–10] the average workforce number changes rate in the period of 2008–2010 was decomposed in the regional research of the European NUTS 2 regions into two types of aggregated effects, structural and competitive. Figure 1 illustrates the relations occurring between aggregated structural effects and aggregated regional effects. Their analysis allowed for the classification of the European Union regions into groups regarding the positive or negative impact of aggregated structural and competitive effects on average workforce number changes rate in particular regions (see Table 1). The interdependence between aggregated structural and competitive effects does not occur.

A positive structural effect indicates that the workforce number changes rate, in a given region, was more favourable than in other regions regarding sector oriented employment structure present in this particular region. On the other hand, a positive competitive effect informs that the workforce number changes rate, in a given region, was higher compared to others, since the high-tech intensity sectors of this particular region were characterized by more favourable dynamics of workforce number changes rate than in the case of other regions.


2010/2008

-20,00

-15,00

-10,00

-5,00

0,00

5,00

10,00

15,00

20,00

25,00

30,00

-3,00 -2,50 -2,00 -1,50 -1,00 -0,50 0,00 0,50 1,00 1,50 2,00 2,50

Aggregated structural effects

Agg

rega

ted

regi

onal

effe

cts

Figure 1. Aggregated structural effects vs. aggregated regional effects


Class I includes regions featuring the positive influence of both the structural and competitive effects on employment changes, which indicates that workforce number transformations in these regions were more favourable for two reasons: due to the workforce sector structure’s positive impact on employment rate growth and economic sectors featuring the higher dynamics of workforce number changes than other regions.

This class covered 57 EU15 regions and 5 EU12 regions (Cyprus, Malta, Praha, Közép-Magyarország, Bucuresti – Ilfov).

Class II is characterized by the positive influence of the structural factor only, out of 61 regions included, of just one region from the country of the newly enlarged EU, i.e. Bratislavský kraj.

Class III, with the positive influence of just one regional factor on employment changes, covered the largest number of the new EU regions (29), including 14 Polish regions (excluding Łódzkie and Mazowieckie).

Class IV covered regions characterized by both employment structure and internal regional development determinants exerting a negative influence on workforce number changes in the period of 2008-2010. This class turned out to be the least numerous, since it included only 48 regions of which 21 originated from the EU12 countries.

Typology of European regions... 115 Table 1. Classification of NUTS 2 regions by positive and negative values of aggregated structural and competitive effects

Class Division criterion Countries Number

of regions Great Britain 18(37/32)*, Germany 11(39/37), Belgium 10(11/10), France 9(22/16), Italy 2(21/20), Austria 2(9/8), Sweden 2(8), Luxembourg 1(1), The Netherlands 1(12/11), Finland 1(5/4)

I Aggregated effects: structural (+) regional (+)

Cyprus 1(1), Malta 1(1), The Czech Republic 1(8) capital region, Hungary 1(7) region covering the capital city, Rumania 1(8) capital region

62 EU15 57 EU12 5

Great Britain 13(37/32), The Netherlands 10(12/11), France 7(22/16), Sweden 6(8), Denmark 5(5), Italy 5(21/20), Germany 4(39/37), Spain 4(19/16), Ireland 2(2), Finland 2(5/4), Greece 1(13/3), Portugal 1(7/4)

II Aggregated effects: structural (+) regional (–)

Slovakia 1(4) region covering the capital city

61 EU15 60 EU12 1

Germany 16(39/37), Italy 9(21/20), Austria 6(9/8), France 4(22/16), Portugal 1(7/4), Great Britain 1(37/32)

III Aggregated effects: structural (–) regional (+) Poland 14(16), Rumania 6(8), The Czech Republic 5(8),

Hungary 2(7), Slovakia 1(4), Slovenia 1(2) region covering the capital city

66 EU15 37 EU12 29

Spain 12(19/16), Germany 6(39/37), Italy 4(21/20), Greece 2(13/3), Portugal 2(7/4), Finland 1(5/4)

IV Aggregated effects: structural (–) regional (–) Estonia 1(1), Latvia 1(1), Lithuania 1(1), Bulgaria 6(6),

Hungary 4(7), The Czech Republic 2(8), Poland 2(16), Łódzkie, Mazowieckie, Slovakia 2(4), Romania 1(8), Slovenia 1(2)

48 EU15 27 EU12 21

* a(b/c) – a – number of NUTS 2 regions included in group, b – overall number of NUTS 2 regions in administrative division, c – number of analysed NUTS 2 regions.


4. The classification of NUTS 2 regions by the effects of workforce number allocation in high and medium high-technology manufacturing and knowledge-intensive services

The share and rate of the workforce number changes in high and medium high-technology manufacturing as well as knowledge-intensive services were analyzed in the studied regions. The identification of allocation effects regarding the workforce number and resulting in the classification of the regions under analysis, with regard to smart specialization and competition advantages, was performed in line with the concept defined by A. Malarska and B. Nowakowska [Malarska, Nowakowska 1992, pp. 75–85]. Tables 2 and 3 respectively present the effects of workforce number allocation in high and medium high-technology manufacturing (HMHTM) and knowledge-intensive services (KIS) in 2010. Four local


specialization and competitive advantage combinations are possible. It was assumed that a region is characterized by a specialized smart workforce structure if the share of workforce in high and medium high-technology manufacturing or in knowledge-intensive services in this region is higher than the average workforce share in the respective European Union sectors. If the rate of workforce number, in the region under analysis, changes in HMHTM or the KIS sector is higher than the average rate of workforce number changes in the respective EU sectors, then competitive advantages are present in that region.

53 NUTS 2 regions featuring smart specialization of workforce structure in 2010 and competitive advantages in the period of 2010/2008 were identified in high and medium high-technology manufacturing. German regions constituted the vast majority in this group (24 out of the 37 analysed German regions).

Table 2. The typology of regions regarding workforce number allocation effects in high and medium high-technology manufacturing in 2010

Workforce number allocation effects in high and medium high-

technology manufacturing Countries

Number of regions

Germany 24(39/37)*, Italy 4(21/22), France 3(22/16), Belgium 3(11/10), Austria 3(9/8), Great Britain 3(37/32), Spain 1(19/6), Denmark 1(5), Ireland 1(2)

Smart specialization of the region Competitive advantage

Hungary 4(7), The Czech Republic 2(8), Poland 2(16), Slovenia 1(2), Romania 1(8)

53 EU15 43 EU12 10

Germany 9(39/37), France 4(22/16), Italy 4(21/20), Spain 3(19/16), Sweden 3(8), Great Britain 3(37/32), Finland 2(5/4),

Smart specialization of the region Competitive disadvantage

The Czech Republic 5(8), Slovakia 3(4), Poland 2(16), Romania 1(8), Slovenia 1(2), Hungary 1(7)

41 EU15 28 EU12 13

Great Britain 7(11/10), Italy 7(21/20), Spain 6(19/16), The Nederlands 5(12/11), France 5(22/16), Austria 4(9/80), Germany 3(39/37), Finland 2(5/4), Sweden 2(8), Portugal 2(7/4), Greece 2(13/3), Luxembourg 1(1), Denmark 1(5)

Absence of smart specialization in the region Competitive advantage

Poland 5(16), Romania 2(8), Hungary 1(7)

55 EU15 47 EU12 8

Great Britain 19(37/32), France 8(22/16), Belgium 7(11/10), The Netherlands 6(12/11), Spain 6(19/16), Italy 5(21/20), Denmark 3(5), Sweden 3(8), Portugal 2(7/4), Ireland 1(2), Germany 1(39/37), Austria 1(9/8), Greece 1(13/3),

Absence of smart specialization in the region Competitive disadvantage

Poland 7(16), Bulgaria 6(6), Romania 4(8), Hungary 1(7), Slovakia 1(4), Malta 1(1), Estonia 1(1), The Czech Republic 1(8), Lithuania 1(1), Latvia 1(1), Cyprus 1(1)

88 EU15 63 EU12 25

* a(b/c) – a – number of NUTS 2 regions included in group, b – overall number of NUTS 2 regions in administrative division, c – number of analysed NUTS 2 regions.


Typology of European regions... 117

Smart specialization and the competitive advantage in the HMHTM sector were characteristic for ten EU12 regions only, including two Polish regions (Opolskie and Lubuskie). Among the regions featuring the highest smart specialization level the following are listed: the German region of Stuttgart (18.16%), Hungarian Közép-Dunántúl (16.23%), German Niederbayern (16.01%) and Oberpfalz (15.94). The workforce share in high and medium high-technology manufacturing in 2010 in the EU was at the level of 5.58%. Definitely the largest number of regions – as many as 88 – were included in the group featuring the absence of smart specialization and competitive advantages.

Table 3. The typology of regions regarding workforce number allocation effects in knowledge-intensive services in 2010

Workforce number allocation effects in knowledge-intensive

Countries Number

of regions Great Britain 19(37/32), France 10(22/16), Germany 8(39/37), Belgium 5(11/10), Denmark 4(5), Sweden 3(8), The Netherlands 3(12/11), Finland 2(5/4), Luxembourg 1(1), Austria 1(8), Spain 1(19/16), Italy 1(21/20),

Smart specialization of the region Competitive advantage

The Czech Republic 1(8), Malta 1(1), Poland 1(16), Romania 1(8), Slovenia 1(2)

63 EU15 58 EU12 5

Great Britain 12(37/32), Germany 11(39/37), The Netherlands 8(12/11), France 6(22/16), Belgium 5(11/10), Sweden 5(8), Ireland 2(2), Italy 2(21/20), Denmark 1(5), Finland 1(5/4), Greece 1(13/3), Portugal 1(7/4), Spain 1(19/16)

Smart specialization of the region Competitive disadvantage

Slovakia 1(4), Hungary 1(7)

58 EU15 56 EU12 2

Germany 8(39/37), Austria 7(9/8), Spain 6(19/16), France 1(22/16), Great Britain 1(37/32), Portugal 1(7/4)

Absence of smart specialization in the region Competitive advantage Poland 13(16), The Czech Republic 5(8), Hungary 4(7),

Slovakia 3(4), Romania 3(8), Cyprus 1(1), Slovenia 1(2), Bulgaria 1(6)

55 EU15 24 EU12 31

Italy 17(21/20), Germany 10(39/37), Spain 8(19/16), France 3(22/16), Portugal 2(7/4), Greece 2(13/3), Finland 1(5/4)

Absence of smart specialization in the region Competitive disadvantage

Bulgaria 5(6), Romania 4(8), Hungary 2(7), The Czech Republic 2(8), Poland 2(16), Estonia 1(1), Latvia 1(1), Lithuania 1(1)

61 EU15 43 EU12 18

* a(b/c) – a – number of NUTS 2 regions included in group, b – overall number of NUTS 2 regions in administrative division, c – number of analysed NUTS 2 regions


Smart specialization and competitive advantage in knowledge-intensive services were characteristic for the group covering 63 NUTS 2 regions which included only five EU12 regions (Praha, Malta, Mazowieckie, Bucuresti – Ilfov


and Zahodna Slovenija). British regions were the dominating ones among the EU15 regions. The workforce share in the EU KIS sector in 2010 amounted to 38.54% and with reference to the most specialized regions it was respectively: Stockholm (Sweden) – 59.47%, Hovedstaden (Denmark) – 58.93%, Luxembourg – 54.98%, Outer London (Great Britain) – 53.08%, Berkshire, Buckinghamshire and Oxfordshire (Great Britain) – 53%.

Table 4. NUTS 2 specialized regions and featuring competitive advantages in high and medium high-technology manufacturing and knowledge-intensive services

Specialization (% of workforce share)

Competitive advantage (excess of employment rate growth

in a region over the rate of changes in EU in %) Country Region

HMTM KIS HMTM KIS European Union (reference area) 5.58 38.54 –8.46 2.12

Prov. Antwerpen 7.99 43.88 4.02 4.88 Belgium Prov. Oost-Vlaanderen 6.16 46.35 4.84 4.56 Kassel 12.97 42.17 42.18 9.23 Saarland 10.96 41.88 129.44 4.35

Germany

Thüringen 8.81 40.15 5.58 4.33 Denmark Midtjylland 6.54 46.00 9.50 0.94 France Alsace 10.46 41.69 15.65 7.45

Tees Valley and Durham 6.42 44.86 34.31 12.17

Great Britain

Derbyshire and Nottinghamshire 6.73 45.04 5.66 0.93

HMTM – high and medium high-technology manufacturing, KIS – knowledge-intensive services.


In the group of regions featuring both the absence of smart specialization and competitive advantages in knowledge-intensive services, 43 EU15 and 18 EU12 regions were included with two Polish regions among them (Łódzkie and Opolskie).

Table 4 presents smart specialization regions featuring the competitive advantages in both sectors characterized by intensive outlays on R&D. Among 237 analyzed NUTS 2 regions, as few as nine regions representing five of the so called ‘old’ EU15 countries met these criteria. This group covered three German regions, two Belgian and two British, one Danish and one French region. These regions are characterized by a two-sector smart specialization and two-sector competitive advantages.

5. Conclusions

The global crisis resulted in a negative average rate of workforce number changes in the European Union in the period of 2010/2008 and showed the level of –2.27%. The application of dynamic shift-share analysis allowed for the decomposition of

Typology of European regions... 119 factors responsible for employment changes in the European NUTS 2 level regions into structural and competitive (regional) effects. About 51% of the analyzed regions featured a negative structural effect, which indicates that the workforce structure in these regions exerted a negative effect on employment rate transformations. Negative structural effects (89.3%) were observed in 50 regions from the EU12 countries (out of 56 analyzed regions) and also in 64 regions originating from 181 EU15 (35.3%).

A negative competitive effect occurred in 46% of the regions, which means that adequate sectors were characterized by average lower dynamics of changes than in other regions. This group covered 22 out of 56 EU12 regions (39.3%) and 87 out of 181 EU15 regions (48%). In 14 Polish regions, negative structural and positive regional effects were recorded. In the Łódzkie and Mazowieckie regions both effects were negative, however, in the Mazowieckie region they were much closer to zero (–0.008 and –0.61).

Smart specialization and competitive advantages in high and medium high-technology manufacturing were characteristic for 53 NUTS 2 regions (22.4%), including 43 out of 181 EU15 regions (23.8%) and 10 out of 56 EU12 regions (17.9%). The workforce share and the rate of changes in the HMHTM sector exceeded the average EU rate.

More regions, as many as 63 (26.6%), feature smart specialization and competitive advantages in the knowledge-intensive services sector. Among them as many as 58 out of the 181 EU15 regions under analysis, were present (32%) and as few as five out of 56 (9%) of the EU12 regions.

There were also nine regions distinguished which presented smart workforce structures in both innovative economy sectors and also featured more favourable than the EU average rate of employment changes in the period of 2008–2010.

The occurring employment rate transformations were related to economic crisis, however, their interregional diversification resulted from both internal (competitive) and structural determinants. Analogous regional-structural research of workforce number by R&B outlays intensity in particular sectors should be continued as more statistical information is available and extended by comparative analyses referring to structural, competitive and allocation changes in particular sub-periods.

References

Barff R.A., Knight III P.L., Dynamic shift-share analysis, Growth and Change 1988, no. 19/2, pp. 1–10. Dunn E.S., A statistical and analytical technique for regional analysis, Papers of the Regional Science

Association 1960, no. 6, pp. 97–112. Europe 2020. The Strategy for Smart and Sustainable Development Facilitating Social Inclusion. The

Communication from the Commission, The European Commission, Brussels 2010. Gaczek W.M., Gospodarka oparta na wiedzy w regionach polskich, [in:] S. Ciok, P. Migoń (eds.),

Przekształcenia struktur regionalnych. Aspekty społeczne, ekonomiczne i przyrodnicze, Instytut Geografii i Rozwoju Regionalnego, Wrocław 2010, pp. 203–215.


Nauka i technika w 2007 r., Główny Urząd Statystyczny, Warszawa 2009. Malarska A., Nowakowska B., Metoda przesunięć udziałów analizie dynamiki zmian strukturalnych,

Przegląd Statystyczny 1992, biuletyn 1, pp. 75–85. Perloff H.S., Dunn E.S., Lampard E.E., Mutha R.F., Regions, Resources and Economic Growth, John

Hopkins Press, Baltimore 1960. Suchecki B. (ed.), Ekonometria przestrzenna. Metody i modele analizy danych przestrzennych,

C.H. Beck, Warszawa 2010. Wojnicka E. (ed.), Perspektywy rozwoju małych i średnich przedsiębiorstw wysokich technologii w

Polsce do 2020 roku, Polska Agencja Rozwoju Przedsiębiorczości, Warszawa 2006. Zielińska-Głębocka A., Współczesna gospodarka światowa. Przemiany, innowacje, kryzysy, rozwią-

zania regionalne, Wolters Kluwer Polska, Warszawa 2012.

TYPOLOGIA REGIONÓW EUROPEJSKICH A EFEKTY ZMIAN LICZBY PRACUJĄCYCH WEDŁUG POZIOMU INTENSYWNOŚCI PRAC BADAWCZO-ROZWOJOWYCH

Streszczenie: Celem opracowania jest klasyfikacja regionów europejskich NUTS 2 ze względu na efekty strukturalne, konkurencyjne i alokacji zmian liczby pracujących oraz identyfikacja i charakterystyka inteligentnych struktur pracujących w odniesieniu do obsza-ru referencyjnego, za jaki przyjęto przestrzeń regionalną państw członkowskich Unii Euro-pejskiej. Narzędziem badawczym zmian strukturalnych liczby pracujących w europejskiej przestrzeni regionalnej w okresie 2008–2010 jest shift-share analysis.

Słowa kluczowe: struktura pracujących, regiony europejskie NUTS 2, analiza shift-share.



Małgorzata Karczewska Wrocław University of Economics

GROSS DOMESTIC EXPENDITURE ON RESEARCH AND DEVELOPMENT IN GDP OF EUROPEAN UNION COUNTRIES – CHANGES IN TRENDS

Summary: Since the establishment of the Lisbon Strategy, the European Union has been trying to achieve the target of 3% of expenditure on research and development in GDP in the whole EU. According to the Strategy Europe 2020, this should be reached in 2020, which will result in the competitiveness of the member states’ economies with regard to such coun-tries as the USA or Japan. The purpose of this article is to identify and analyse the trends in changes of expenditure on research and development in GDP of European Union member states, as well as an assessment of the deviations of expenditure on R&D in 2010 from the targets set in the Strategy Europe 2020.

Keywords: research and development, GERD indicator, Strategy Europe 2020.

1. Introduction

New technologies are more often developed by their users [von Hippel 1988, p. 3], who are able to define the ways for their improvement while using them so they can become more efficient. But, they are inventors – outstanding individuals who discover completely new solutions. However, nowadays new products are usually created gradually, by conducting observations as well as research, which require the creative effort of many specialists from many different scientific fields [Czupiał (ed.) 1994, p. 7]. Such teams develop innovative solutions which will be implemented in the country’s enterprises – they will be useful for the whole of society. Financial funds are necessary to establish the team of specialists and gain crucial tools for effective work. Successful companies are able to invest in innovation from their own resources. Whereas enterprises struggling with financial problems, the public sector and higher education undoubtedly require government support. The European Union recognized this problem long time ago, therefore in 2010 the Strategy Europe 2020 described the target for the whole EU as spending 3% of GDP on investments in research and development.

122 Małgorzata Karczewska

The purpose of the following article is to identify and analyse changes in trends

in the share of expenditure on research and development in the GDP of EU member states as well as an assessment of the deviations of expenditure on R&D in 2010 from the targets set in the Strategy Europe 2020.

2. Research and development in the Strategy Europe 2020

Research and development (R&D) and innovation activity (both are related [Oslo Manual... 2005, §457]) cover consistent creative work undertaken in order to increase knowledge resources. Also, knowledge about people, culture and society as well as the use of these knowledge resources contributes in elaborating modern technologies [Frascati Manual... 2002, §63]. Therefore, we should be aware of the need for systematic, creative work so innovations (new technologies) can come into common use [Schumacher 2011, p. 127]. European Union treaties were developing fields which were supposed to be included into an innovation-oriented policy. However, only the Lisbon Strategy strengthened the innovation issue as one of the most important directions of EU policy. Its plan included diametrical changes, very high development and rapid transformations in the economic policy. The basic output for those transformations was supposed to be strongly developed and extensive research, used by the economies of European countries. A major role was assigned to innovations, modern knowledge fields, which are the source of development. The Lisbon Strategy targets were defined for 2000–2010. They focused mainly on discussable investments in scientific research and development, which were about to increase GDP expenses on R&D by up to 3% [Lisbon Strategy 2000]. The implementations of the Lisbon Strategy assumptions fell apart because of the lack of priorities, despite establishing many initial goals. Therefore, efforts to improve the situation in the European Union were ineffective and did not bring the expected results.

In 2010, the European Commission presented the Strategy Europe 2020, which is the successor of the Lisbon Strategy. Expenditure on research and development activity include current expenditure incurred for basic and applied research as well as development works and investment expenditure on fixed assets connected with R&D activities, independently from the funds’ sources. The measure used to determine their value is the GERD indicator – gross domestic expenditure on research and development, which is commonly used in order to illustrate the intensity of research in the national economy, and so its ability to create new products and services’ development [Walwyn 2010, p. 183].

The Strategy Europe 2020 includes three interrelated priorities: – smart growth: development of the economy based on knowledge and innovation; – sustainable growth: support the economy which effectively uses resources,

which are more environment-friendly and more competitive; – inclusive growth: supporting the economy with a high employment level,

ensuring social and territorial cohesion.

Gross domestic expenditure on research and development... 123

The most important thing for the European Union is defining in which place and on what position it wants to be in 2020. From this reason the European Commission proposed to establish five measurable EU targets:

1) the employment rate of people aged 20–64 years should be 75%; 2) 3% of EU GDP should be designated for investment in research and

development; 3) to achieve the goals “20/20/20” within climate and energy (including carbon

dioxide emissions); 4) the amount of people finishing education too early should be limited to 10%,

and a minimum 40% of people from young generations should have a higher education;

5) the amount of people at risk of poverty should be decreased by 20 million. The targets above are interrelated and their achievement will indicate the success

of the Strategy Europe 2020. However, taking into account the differences in the development of the countries which belong to the European Union, the above measurable targets were changed into targets and the activity method for each of the 27 EU member states because of their differences in innovation level. As a result, every member state is able to fit the Strategy Europe 2020 to its specific economic situation. The current EU target in the area of investment in R&D activities is 3% of GDP. This allowed to pay attention to how important are both public and private investment in research and development. The most important thing is to improve the condition of private research and development activity in the EU countries, therefore, the Strategy Europe 2020 described the necessary actions. By creating a uniform attitude to research and development activity as well as to innovation, it would be possible to use more funds, which would result in business activity development and an increase in productivity stimulants [Strategy Europe 2020... 2010].

3. Statistical information and research methods

The study subject in this article is the GERD indicator as a GDP percentage. The analysis included the European Union as a whole as well as 27 member states separately. The time range of research covers the period of 1995–2010. The statistical information used in the research was taken from the Eurostat internet databases.

The GERD indicator data were incomplete in the case of Estonia (lack of data: 19%), Greece (lacking 44%), Cyprus (lacking 19%), Luxembourg (lacking 44%) and Sweden (lacking 25%). Missing statistical information were completed on the basis of trend estimation models with the use of inter and extrapolation. In the situation of Malta, the statistic data covers the period from 2002 to 2010 because it was impossible to fill in data by the use of extrapolation (negative values of GERD in GDP).

Econometric trend estimation models were used in research. For a selection of analytical trend function, the author used the heuristic method and the visual


assessment method with its specific variant as well as segment approximation method in cases when the distribution of empirical points was complicated.

4. Trend estimation models and forecast of expenditure on R&D in GDP

On the basis of the GERD indicator value (in 27 countries of the European Union 1995–2010) trends estimation models were built, marking trend lines on them; in mostcountries it is a linear trend estimation, for some of them, polynomial function was applied. In the case of France and Sweden, segment approximation was made. Because of the high data diversification in the case of Latvia, Luxembourg and Great Britain, there was no possibility to match the trend function, for this reason scatter plots are presented. All trend estimation models were chosen so the coefficient of determination R2 (the basis measure of model fit) is not lower than 0.7 (see Table 1). This means that more than 70% of expediture changes on research and development were explained by the trend function. After construction of the forecast, the indicator deviation in year 2010 from the goal for 2020 and deviations of the target from the forecast for 2020 were also shown.

Figure 1 presents (in 13 EU countries) linear trend estimations of expenditure changes on R&D in GDP. In 12 countries it is an ascending trend – it increases the value of a variable in time. Expenditure on R&D in the GDP of countries like Austria, Cyprus, Spain or Poland are growing systematically. This proves that governments of those countries are aware of the importance of investment in research and development. In the Netherlands the trend is descending – it decreases the value of a variable in time. This is a worrying situation when taking into account the target of this country. In 2020, expenditure on R&D in GDP is supposed to be 2.5%, but the value decreased in 2010 to the level of 1.83% from 1.97% in 1995.

Figure 2 shows polynomial trend changes of expenditure on R&D in GDP. They were fitted for data from nine EU countries (Ireland, Slovakia, Greece, Malta, Slovenia, Romania, Poland, Belgium, Bulgaria) but also for all of the EU27 together. In six countries (Ireland, Slovakia, Greece, Malta, Slovenia and Romania) there are polynomial trends estimations of the second grade. In the cases of Ireland, Slovakia, Slovenia and Romania, those are descending-ascending trends, which means that expenses on R&D in GDP of the mentioned countries were decreasing to a certain moment, after which they started to increase. This indicates that the governments of these countries realized the need to invest in innovation, which is the source of economic development.

For Malta and Greece this tendency is ascending-descending. Attention should be paid to those countries in whose economies tourism is the most important sector.


Figure 1. Linear trend functions of expenditure on R&D in GDP of EU countries 1995–2010

Source: own elaboration on the basis of the Eurostat database.


For this reason, investment in research and development is not so crucial as for

countries in Central Europe. For Poland, Belgium, Bulgaria (descending-ascending tendency) and the EU generally (ascending tendency), polynomial trend estimations of the third grade were matched. Poland and Bulgaria, though with a descending-ascending tendency, spend a small percentage of GDP on research and development, whereas in Belgium there is much higher expenditure.

Figure 2. Models of polynomial trend functions of expenditures on R&D in GDP of EU countries 1995–2010



Figure 3 presents segment approximants of the expenditure on R&D in GDP. To define the analytical form of trend estimation segment approximation for France and Sweden was applied. In the case of France, the first segment (polynomial trend estimation of the second grade) covers 1995–2002, and the second (polynomial trend estimation of the second grade) 2003–2010. For Sweden, 1995–2001 (the first segment) linear trend estimation was used, and for 2002–2010 (the second segment) polynomial trend estimation of the third grade. In France, the expenditure on R&D in GDP was very different in each of the studied years (1995 – 2.28%, 1998 – 2.14%, 2002 – 2.24%, 2007 – 2.08% and 2010 – 2.26%). In Sweden, up to 2001 that expenditure was systematically increasing (from 3.26% in 1995 to 4.13% in 2001), and from 2002 started to decrease (2002 – 3.97%, 2010 – 3.42%). There also started to occur a huge dispersion between the subsequent years. Although Sweden is the country which, besides Finland, allocates the highest GDP percentage on R&D.

Figure 3. Segmentation models of expenditure on R&D in GDP of EU countries 1995–2010


Figure 4 presents scatter plots for Latvia, Luxembourg and Great Britain. Because of irregular expenses on R&D in GDP of specific years, it was not possible to match the analytical form of trend estimation. Among the mentioned countries, the lowest expenditure on research and development in GDP was in Latvia, the highest in Luxembourg. From the scatter plot for Latvia it can be observed that expenses slightly increased (0.47% in 1995, 0.60% in 2010). In Luxembourg, expenses were on a similar level to 2003 (1.65%). In subsequent


years they started to have different values. The case of Great Britain is very interesting – expenses on R&D from 1995 to 2010 are strongly diversified (i.e. in 1995 –1.91%, 1998 – 1.76%, 2004 – 0.68%, 2009 – 1.86% and 2010 – 1.77%).

Figure 4. Scatter plots of expenditure on R&D in GDP of EU countries 1995–2010


Table 1shows the coefficient of determination: R2 and trend functions for EU27 as well as for the member states separately. The coefficient of the determination of the trend function for the EU27 is 0.81; the highest R2 for Austria 0.99, the lowest for Bulgaria (0.70)). Because of the lack of the appropriate trend estimation fit for Latvia, Luxembourg and Great Britain, it was not possible to determine the equation and R2 coefficient. According to the presented equations the forecast of expenditure on R&D in member states GDP to 2020 was also made. Moreover, the structural parameters significance of trends estimation models was tested. Only for Bulgaria and the second segment of Sweden were these parameters not statisticaly significant.

Table 2 presents the actual values of the GERD indicator for 2010, the forecasted values for 2020 and the target described in the Strategy Europe 2020 for year 2020 for EU member states. Table 2 also presents deviations of the GERD indicator in 2010 from the target in 2020 as well as the deviation of the forecast for 2020 from the target for 2020. Countries included in Table 2 are those for which it was possible to match the trend function. The forecast does not respond to the target in any country, which is the reason for setting the target to which they should strive to, but with additional support from government and the EU. The set targets illustrate the values necessary to achieve, so the member states’ economies can be competitive (in comparison with the USA or Japan).

Figure 5 presents the deviation of the GERD indicator in 2010 from the target for 2020. More than a half of the member states have to take action to reach the target set in the Strategy Europe 2020, countries like Spain, Estonia, Portugal, Poland and Romania need to increase to year 2020 significantly their share of R&D in GDP. However, countries such as Sweden and Germany were already in 2010 close to achieve their targets. The GERD indicator from 2010 corresponds to the target in 2020 for Cyprus and Denmark.

Gross domestic expenditure on research and development... 129 Table 1. Models of trends estimation of expenditure on R&D in GDP in chosen EU countries

Countries Trend functions R2 Significance of parameters

EU27 Ŷ = 0.0003t3 – 0.007t2 + 0.0542t + 1.703 0.81 YES

Austria Ŷ = 0.0843t + 1.4483 0.99 YES

Cyprus Ŷ = 0.0248t + 0.113 0.97 YES

Spain Ŷ = 0.0443t + 0.6725 0.96 YES

Czech Republic Ŷ = 0.0417t + 0.8783 0.93 YES

Lithuania Ŷ = 0.0266t + 0.4365 0.93 YES

Denmark Ŷ = 0.0781t + 1.742 0.92 YES

Italy Ŷ = 0.0181t + 0.9453 0.91 YES

Estonia Ŷ = 0.0818t + 0.1326 0.91 YES

Germany Ŷ = 0.0382t + 2.1575 0.90 YES

Finland Ŷ = 0.0908t + 2.503 0.87 YES

Hungary Ŷ = 0.0327t + 0.6123 0.85 YES

Portugal Ŷ = 0.0698t + 0.3025 0.79 YES

Netherlands Ŷ = –0.0122t + 2.0053 0.75 YES

Ireland Ŷ = 0.0077t2 – 0.1037t + 1.4517 0.91 YES

Slovakia Ŷ = 0.004t2 – 0.0999t + 1.1208 0.85 YES

Greece Ŷ = –0.0021t2 + 0.0421t + 0.3821 0.80 YES

Malta Ŷ = –0.0111t2 + 0.3058t – 1.4985 0.80 YES

Slovenia Ŷ = 0.0063t2 – 0.0733t + 1.5262 0.80 YES

Romania Ŷ = 0.0045t2 – 0.0857t + 0.7876 0.75 YES

Poland Ŷ = 0.0005t3 – 0.0113t2 + 0.0585t + 0.5791 0.91 YES

Belgium Ŷ = 0.0008t3 – 0.0218t2 + 0.1781t + 1.4915 0.77 YES

Bulgaria Ŷ = 0.0002t3 – 0.0036t2 + 0.0027t + 0.5745 0.70 NO

France t = 1,…,8

Ŷ = 0.0095t2 – 0.0939t + 2.3848 0.89 YES

t = 9,...,16

Ŷ = 0.0111t2 – 0.2642t + 3.674 0.82 YES

Sweden t = 1,…,7

Ŷ = 0.1321t + 3.0693 0.91 YES

t = 8,…,16

Ŷ = –0.0054t3 + 0.2037t2 – 2.5358t + 14.004 0.74 NO

Source: own elaboration on a basis of the Eurostat database.


Table 2. Comparison of the actual values of the GERD indicator from 2010 with values set for the EU countries in the Strategy Europe 2020

Country GERD 2010

Target 2020

GERD 2010 in comparison

with target 2020

Country GERD 2010

Target 2020

GERD 2010 in comparison

with target 2020

EU27 2.00 3.00 –1.00 Germany 2.82 3.00 –0.18

Malta 0.63 0.67 –0.04 Slovakia 0.63 1.00 –0.37

Spain 1.39 3.00 –1.61 Bulgaria 0.60 1.50 –0.90

Netherlands 1.83 2.50 –0.67 Cyprus 0.50 0.50 0.00

Lithuania 0.79 1.90 –1.11 Denmark 3.06 3.00 0.06

Estonia 1.62 3.00 –1.38 Finland 3.87 4.00 –0.13

Portugal 1.59 2.70 –1.11 Slovenia 2.11 3.00 –0.89

Romania 0.47 2.00 –1.53 France 2.26 3.00 –0.74

Sweden 3.42 4.00 –0.58 Ireland 1.79 2.50 –0.71

Hungary 1.16 1.80 –0.64 Poland 0.74 1.70 –0.96

Austria 2.76 3.76 –1.00 Belgium 1.99 3.00 –1.01

Italy 1.26 1.53 –0.27


Figure 5. GERD indicator value in 2010 and the goal for expenditure share on R&D in GDP identified by EU on year 2020


Gross domestic expenditure on research and development... 131 5. Conclusions

The conducted studies allowed for conclusions resulting from changes in expenditure on research and development in GDP of the EU27 and each member state separately. The most important of them are as follows: There is a visible difference between the EU15 countries and the new member

states. The countries which belonged to the EU before 2004 spend the highest percentage of their GDP on R&D. The highest value in 2010 was allocated by Finland in the amount of 3.87%, the lowest by Romania: 0.47%. Poland allocated 0.74%, which puts the country at a position which is much below the average. The average for all member states of the EU in 2010 was 1.64%.

Generally, EU spending did not change a lot during 15 years. In 1995 it was 1.8%, and in 2010 it increased only to 2%. During that period, the most increased expenditure on R&D was in Finland – from 2.26% in 1995 to 3.87% in 2010. In Poland, expenditure increased respectively from 0.63% to 0.74%.

12 member states of the EU have an ascending linear trends estimation of expenditure on R&D.

Many countries (i.e. Poland, Lithuania, Spain, Portugal, Romania) face a great challenge in the near future, because by 2020 they need to increase significantly their share of expenses on R&D in GDP. On the basis of the performed analysis of expenditure on R&D in GDP of the

EU member states, it can be concluded that the financial situation of the research and development activities in the member states is improving. This is a positive signal, which shows that some action in this direction has been taken. However, to achieve the set targets in 2020, the EU will face a lot of work. The data taken from the Eurostat database allowed to present the situation up to 2010.

References

Czupiał J. (ed.), Ekonomika innowacji, Wydawnictwo Akademii Ekonomicznej Wrocławiu, Wrocław 1994. Frascati Manual, Proposed Standard Practice for Surveys on Research and Experimental Develop-

ment, OECD 2002. Hippel von E., The sources of Innovation, Oxford University Press, New York 1988. Lisbon Strategy, Lisbon 2000. Oslo Manual – Guidelines for Collecting and Interpreting Innovation Data, OECD 2005. Schumacher E.F., Small is Beautiful. A Study of Economics as if People Mattered, Vintage Books,

London 2011. Strategy Europe 2020. A European strategy for Smart, Sustainable and Inclusive Growth, Brussels 2010. Walwyn D.R., Determining research and development expenditure targets based on an affordability

index, International Journal of Innovation and Technology Management 2010, vol. 7, issue 2.

Website http://epp.eurostat.ec.europa.eu.


UDZIAŁ NAKŁADÓW NA BADANIA I ROZWÓJ W PKB KRAJÓW UNII EUROPEJSKIEJ – TENDENCJE ZMIAN

Streszczenie: Unia Europejska od ustanowienia Strategii Lizbońskiej stara się osiągnąć cel 3% udziału nakładów na badania i rozwój z PKB całej UE. Według najnowszej Strategii Eu-ropa 2020 ma być on osiągnięty w 2020 roku, przez co gospodarka państw członkowskich będzie konkurencyjna dla takich potęg jak USA czy Japonia. Celem opracowania jest iden-tyfikacja i analiza tendencji zmian udziału wydatków na badania i rozwój w PKB krajów na-leżących do Unii Europejskiej oraz ocena odchyleń nakładów na B+R w 2010 roku od ce-lów założonych w Strategii Europa 2020.

Słowa kluczowe: badania i rozwój, wskaźnik GERD, Strategia Europa 2020.



Marzena Grzesiak, Anita Richert-Kaźmierska Gdańsk University of Technology

EDUCATIONAL ENGAGEMENT OF THE ELDERLY* – THE EXPERIENCES OF SELECTED BALTIC SEA REGION COUNTRIES**

Summary: The aim of this article is to present the engagement of adults close to retirement age in the Baltic Sea Region countries in the education of adults, as well as to discuss the possibilities and conditions for the educational activity of the elderly. The authors also refer to the relationship between the participation of the elderly in education and their socio-economic situation.

Keywords: ageing society, adult education, the essence of elderly education.

1. Introduction

The ageing of society is currently a phenomenon which touches all the European countries. According to the European Commission’s forecasts [The 2009 Ageing Report... 2009, p. 11], the median of the European Union age in 2060 will be 47.9 years, which means that it will be 7.5 years higher than the median from 2008. Moreover, the number of the elderly over 65 years old will almost double in the 2008–2060 period (it will increase from 85 to 151 million). The number of people over 80 years old will triple, increasing from 22 million in 2008 to 61 million in 2060.

For the European economy, the prospect of the member countries’ inhabitants getting older means, among others, a threat to the stability of public finance [The 2009 Ageing Report... 2009], increasing difficulties with access to qualified labour resources [Znajmiecka-Sikora, Kędzierska, Roszko (eds.) 2011] and the development of new markets [Stround 2005]. On the Pan-European and member country level,

** “The elderly” are defined herein as the people over 65 years old, i.e. in the non-mobile productive and beyond-retirement age.

** The article was prepared as a part of the project Quick IGA, part-financed by the European Union (European Regional Development Fund) in the Baltic Sea Region Programme 2007–2013. Research paper financed from the funds for science 2012–2013 for co-financed international projects.

134 Marzena Grzesiak, Anita Richert-Kaźmierska

some programmes and activities are being implemented to ease the forecasted unfavourable consequences of the ageing of European society. Their purpose is, among others, to increase the vocational activity among the elderly, mainly those close to the retirement age, as well as to promote social inclusion.

Education constitutes one of the key areas of influence on the vocational and social activity of the elderly. The authors of the Learning: The Treasure Within report, claim that education leads to global activity on the basis of the democratic participation in the information technology and learning society. It is also claimed that it plays a crucial role in human development and the maintenance of fluency and usefulness of people in the context of life and work [Learning... 1996, pp. 100–101]. According to Matlakiewicz, “the lack of intellectual challenges and stimulating oneself to find them, based only on routine everyday private and professional life tasks, leads to lowering the intellectual competence of individuals” [Matlakiewicz, Solarczyk-Szwec 2005], which is equivalent to the slow withdrawal from professional life and social exclusion.

The aim of this article is to present the engagement of the elderly close to retirement age in the Baltic Sea Region (BSR) countries in the education of adults, as well as to discuss the possibilities and conditions for the educational activity of the elderly. The authors also refer to the relationship between the participation of the elderly in education and their socio-economic situation.

2. The essence of the education of the elderly

The education of the elderly is a part of the general concept of adult education. According to the Recommendations of the 19th General Conference of UNESCO in Nairobi (1976), it encompasses the system of educational activities in varied forms and scopes, aimed at the development of abilities, enrichment of knowledge, improvement of qualifications or the change of attitudes and behaviours, enabling the rightful participation in the sustainable social and economic development [Recommendation on the development... 1976].

First of all, adult education has its proper (extending one’s knowledge) and compensatory (supplementing education by those who did not obtain it when they were of adequate age) functions [Milerski, Śliwerski (eds.) 2000, p. 142]. As far as the elderly are concerned, there are also other important functions, such as [Jankowski, Przyszczypkowski, Skrzypczak 1996, p. 28]: – preventive function – secures against job loss, as well as the mental and moral

stagnation, as well as counteracts the knowledge inflation and qualification ageing process;

– personalization function – provides the basis for the solution of problems related to one’s own identity;

– pragmatic function – support related to practical approach to making use of the world shaped by modern science and technology;

Education engagement of the elderly... 135 – cultural function – providing the individual with broad access to the active

participation in culture; – social function – helping the individual to participate actively and creatively in

the socio-economic life, as well as to play a constructive role in it. Education constitutes an exceptionally important aspect of the active ageing

concept [Kalachea, Kickbusch 1997, pp. 4–5; Active Ageing... 2002]. It is essential for maintaining physical ability and the possibility of performing professional work by the elderly, as well as for their active participation in social, economic, cultural and civil life [Zych 1999; Czerniawska 2003, pp. 15–22]. As the research results show, the elderlywho were graduates of universities or high schools are healthier and more physically and intellectually capable in comparison to their inactive peers [Kozieł, Trafiałek 2007, pp. 104–105].

Learning constitutes for the elderly a way to fulfil their specific needs. Synak [1992, pp. 3–8] highlights the need of affiliation, usefulness, recognition and life satisfaction. Migała [2012], on the other hand, refers to social and cultural needs, as well as to the need for attaining a high quality of life. Moreover, the participation of the elderly in various forms of education promotes the establishment of interpersonal bonds, prevents social isolation and shapes the positive image of old age and the elderly themselves, thus acting against marginalisation [Rejman 2010, p. 83].

The educational activities aimed at adults due to their biological and personality traits, as well as their experience, should be implemented differently in comparison to the activities addressed to the youth. The difference in learning between the young and the elderly relates mainly to the fact that the elderly display inferior information processing skills and superior (professional) expertise [Matlakiewicz, Solarczyk-Szwec 2009].

In particular, late adulthood1 is a time for integration and harmony of the logical-rational and the intuitive-emotional spheres [Harwas-Napierała, Tempała (eds.) 2001, pp. 263ff]. The crystallised (social) intelligence related to life experience remains constant or increases, whereas the fluid (biologically determined) intelligence is responsible for the processing information and acquiring new skills.

Ensuring the possibly high effectiveness of learning of the elderly requires the proper organisation of the whole process, including: – selection of content and methodology depending on the needs and expectations

of the participants, – adjusting the pace of work (knowledge transfer, practising practical skills etc.)

to individual conditions of the student, – using personal and professional (pre-training) experience, – ensuring a good atmosphere in the group, – using interactive methods, including taking into consideration the individual

knowledge system and professional experience.

1 Adulthood stages: early adulthood: 20 to 30–40 years; medium adulthood: 30–40 to 50–60 years; late

adulthood: over 55–60 years. The division can be found in [Turner, Helms 1999, pp. 545ff].


3. The politics and activities of BSR countries aimed

at adult education

In the European Union, the significance of the life-long learning idea is paid special attention to.2 The Copenhagen Declaration [2002] places special stress on the strategies of continual education and mobility as important for the promotion of employment increase, active citizenship, fighting social marginalisation and enabling personal development. The policy of the Union related to the education and training of the adults [Council conclusions... 2009] aims at developing the systems of education and vocational training, which will be more attractive, supportive for the social inclusion and professional career, adequate, flexible and innovative, by the year 2020. The European Commission assumes that by the year 2010, 12.5% of working-age Europeans (25–64 years old) should take part in life-long learning [Council conclusions... 2003], whereas in 2020 such a proportion should amount to at least 15% [Council conclusionson... 2009].

Figure 1. The participation in varied forms of education according to age in the European Union in 2005

Source: [Ala-Mutka et al. 2008, p. 16].

Adult education is implemented in three main forms: formal education, informal education (learning through experience) and non-formal (incidental) education [International Standard Classification... 1997]. The elderly use mainly informal and non-formal forms of education (see Figure 1).

2 OECD defines life-long learning as “personal development of every human being and the de-velopment of social features, allowing it to function in society, in all its forms and in all settings – in a formal system and within formal and incidental learning”.

Education engagement of the elderly... 137

In the Baltic Sea Region countries (Denmark, Estonia, Finland, Lithuania, Latvia, Germany, Poland and Sweden) varied initiatives related to the implementation of the EU adult education policy have been introduced. Some of them relate to people looking for a job or threatened with social exclusion or to immigrants. Many of them relate to improving qualifications, acquiring new skills or learning foreign languages (see Table 1). They can be implemented mainly within the framework of the Lifelong Learning Programme. Initiatives addressed to adults can be found here, e.g. Leonardo da Vinci for vocational training or Grundvig for adult education.3

A distinctive group of educational activities is formed by those addressed to the elderly. Most often they are performed as informal and non-formal education. Not all of them are shown in the statistical data related to the participation in continuous learning.

In Sweden the education of the elderly is conducted in folk high schools, study associations and student organisations in folk high schools. These include enhancing people’s ability to influence their own lives and fostering a commitment to the development of society.4

In Denmark a wide range of different schools operates within the framework of liberal non-formal adult education. The courses do not lead to recognized formal qualifications, the aim being personal development. The most well-known type of non-formal adult (including elderly) education are the folk high schools. Courses last between 1 and 36 weeks, and are attended by people aged from 18 to 70–80. Evening Schools, Day Folk High Schools and University Extension Courses offer other possibilities for non-formal adult education in Denmark.5

In Germany the process of adult education is implemented by numerous institutions and organisations, for example in: Volkshochschulen (adult education centres), church organizations (Catholic and Protestant), ARBEIT und LEBEN Educational Association, community adult education centers (Heimvolkshochschulen), National and Federal Agency for Civic Education etc. Most courses offered to the elderly are held in the extramural or evening mode. Correspondence e-learning courses are also available. In general, there are three types of educational institutions for the elderly, folk universities, training centres and academies for seniors organized at almost every university, known in Poland as “the universities of the third age”.

The main form of elderly education are the universities of the third age. Ziębińska [2007] lists the following characteristics of the Polish universities of the third age: – purpose – aimed at stimulation of the intellectual activity of the participants, – lack of uniformity of the organisational form and financing method,

3 http://ec.europa.eu/education/lifelong-learning-programme/index_en.htm [date of access: 10.09.2012). 4 http://www.sweden.gov.se/sb/d/6997 (date of access: 12.09.2012). 5 http://en.iu.dk/education-in-denmark/detailed-information/adult-and-continuing-education (date

of access: 12.09.2012).


Table 1. Policies and activities aimed at adult education – examples in selected BSR countries

Country The assumptions of the adult education policy Denmark [Denmark... 2012]

The Ministry of Education started to work on the definition of the National Qualification Framework. In 2009, the proposal was accepted and it has been implemented in the Danish education system since 2010. Eight levels of learning have been distinguished in Denmark, including one related to the qualifications of adults participating in the continuous learning system (VET).

Germany [Hippach-Schneider, Hensen, Schober 2011]

In 2004, the Strategy for Lifelong Learning in the Federal Republic of Germany was adopted – it underlined the role of informal and non-formal education forms in Germany. The purpose of the Potential Areas of Flexibility in Initial and Continuing Training programme is increasing the flexibility of the adult education for the needs of the labour market. The programme is financed by the Federal Ministry of Education and Research (BMBF) and implemented by the Federal Institute for Vocational Education and Training (BIBB). The e-learning continuing training database ELDOC, operated by the Federal Institute for Vocational Education and Training (BIBB) in Germany, lends support to those planning their continuing training and interested in finding suitable e-learning or blended learning provision. The main focuses of the ELDOC database are the areas of computers/IT, economics and law, cross-curricular qualifications, languages, technology and the natural sciences.

Poland [Strategia rozwoju edukacji... 2005; Strategia kształcenia ustawicznego... 2003]

Adult education in Poland takes place in the schools for adults and in continuous learning institutions, practical learning institutions, as well as training and vocational improvement institutions. The organization of adult education in Poland is regulated by the Strategy for the Development of Education for 2007–2013 and the Strategy for the Development of Continuous Learning.

Sweden [Bostrom, Boudard, Siminou 2001]

The basic principal of Swedish education policy is that all basic education shall be provided at school. To attain a workforce which can develop further in the workplace and be flexible, a good foundation in general subjects is the most important prerequisite. The Swedish authorities see upper secondary education as a minimum and tertiary level as the ideal goal – and even a right for all Swedes. They aim at laying a solid foundation for learning through life, a commitment to equity and social inclusion, openness and participation. Sweden has a long tradition of social partner involvement in VET. The idea behind the government’s initiative is that the greatest knowledge on the criteria and suitable measures for local and regional growth and employment is to be found among those most closely involved.


– syllabuses taking into account the specifics of the region and the interests of the participants,

– the promotional activity related to the activity patterns for the elderly, – size: 50–1500 participants.

Education engagement of the elderly... 139 4. Educational engagement of the elderly

in selected BSR countries

The educational activity of adults in the Baltic Sea Region varies strongly. According to the ELLI Index Europe 2010 (see Table 2), in all the categories directly related to the participation of adults in formal and informal education, the Scandinavian countries – Denmark, Sweden and Finland – are the leaders inthe ranking. The adults in the new EU member countries (Poland, Lithuania and Latvia) display definitely lower educational activity.

Table 2. European Lifelong Learning Indicators – 2010 results of BSR countries

Participation in lifelong learning

Adult participation rates

in formal education and training

Participation in job related

non-formal education

and training

Learning new things

at work

Participation of employees

in CVT courses

Country

Rank/27 Rank/23 Rank/22 Rank/27 Rank/25 Denmark 2 5 – 3 8 Sweden 1 2 1 2 4 Finland 3 4 2 1 6 Germany 12 14 3 20 14 Estonia 9 15 5 7 18 Latvia 16 13 15 18 22 Lithuania 21 9 14 26 22 Poland 22 12 19 17 19

Source: [ELLI... 2011].

The analysis of data available in the Eurostat database [Eurostat 2012] and related to the participation of the elderly in education and training in the 2000–2012 period, allows for concluding that, like in the general adult population, also in the 45+ age groups such initiatives have definitely more participants in the Scandinavian countries. Moreover, the educational activity is decreasing with age. Persons aged 45–54 display much larger engagement than persons aged over 55. In all the analysed BSR countries, women increase their qualifications more often than men (see Figures 2 and 3).

As the research led by Ziębińska [2007] shows, the main motives of participation in the classes offered to the elderly include the willingness to maintain intellectual ability, expanding one’s knowledge and keeping in touch with people from the same age group. The barriers for the participation of adults (including the elderly) in education include the lack of time, high costs and excess professional and family duties [Kształcenie ustawiczne w Polsce... 2012].


Figure 2. Participation of persons aged 45–54 in education and training in 2011 (%)

Source: own elaboration based on the EUROSTAT data.

Figure 3. Participation of persons aged 55–64 in education and training in 2011 (%).

Source: own elaboration based on EUROSTAT data.

5. Summing-up

The example of the Baltic Sea Region countries shows a significant diversity in the level of adult participation in education. It is highest in the Scandinavian countries, whereas in the new EU members it is definitely lower. Educational activity decreases with age. This trend can be observed in all BSR countries, although

Education engagement of the elderly... 141 again the participation of the elderly is two (Finland, Sweden) to five (Denmark) times higher than in other countries covered by the analysis.

The distinct diversity of the level of educational activity of the elderly in the individual BSR countries depends on several factors, such as: – the educational culture and social acceptance for the life-long learning model, – the assumed role of knowledge and intellectual capital in the enterprise and in

the broader context of the national economy, – system of direct and indirect incentives to continue education, – the national educational system, including the size and diversity of the

institutions offering training on different levels and in different forms, – the needs and expectations related to education displayed by the adults,

including the elderly, – the availability of the educational offer adjusted substantially and methodologically

to the needs of the elderly, – the assumed image and the social role of the elderly – the way they are

perceived in society. The basic barriers for the active participation of adults in the educational activities

in Poland include the lack of education need awareness’, negative social attitude towards the idea of life-long learning (especially among the poorly educated elderly), low availability of the Internet and even the insufficient cooperation between the educational institutions and the employers or social and economic partners.

The educational mobilization of the elderly has an important socio-economic significance. As suggested above, the participation in various forms of education, especially for the elderly, is connected with maintaining the professional, social and public activity, while positively influencing their psychophysiological condition.

References

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Ala-Mutka K., Malanowski N., Punie Y., Cabrera M., Active Ageing and the Potential of ICT for Learning, European Commission Joint Research Centre, Seville 2008.

Bostrom A., Boudard E., Siminou P., Lifelong Learning in Sweden. The Extent to Which Vocational Education and Training Policy is Nurturing Lifelong Learning in Sweden, CEDEFOP Panorama series, Luxembourg 2001.

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Stiftung, Gutersloh 2011. Eurostat, http://epp.eurostat.ec.europa.eu/portal/page/portal/education/data/database (date of access:

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TEMPLATE/pdf/isced/ISCED_A.pdf (date of access: 10.02.2011). Hippach-Schneider U., Hensen K.A., Schober K., Germany. VET in Europe – Country Report 2010,

Cedefop 2011. Jankowski D., Przyszczypkowski K., Skrzypczak J., Podstawy edukacji dorosłych. Zarys problematy-

ki, Wydawnictwo Naukowe UAM, Poznań 1996. Kalachea A., KickbuschI., A global strategy for healthy ageing, World Health 1997, no. 4 July-

August. Kozieł D., Trafiałek E., Kształcenie na Uniwersytetach Trzeciego Wieku a jakość życia, Gerontolo-

gia Polska 2007, nr 15. Kształcenie ustawiczne w Polsce na tle innych krajów – na podstawie badania TRAL. Informacja Mi-

nisterstwa Pracy i Polityki Społecznej, http://www.mpips.gov.pl/userfiles/File/nowe/Polskanatle TRAL.pdf (date of access: 10.09.2012).

Learning: The Treasure Within, report to UNESCO of the International Commission on Education for Twenty-first Century, UNESCO Publishing, Paris 1996.

Matlakiewicz A., Solarczyk-Szwec H., Dorośli uczą się inaczej, Toruń 2005. Matlakiewicz A., Solarczyk-Szwec H., Dorośli uczą się inaczej: andragogiczne podstawy kształcenia

ustawicznego, wyd. II, Centrum Kształcenia Ustawicznego w Toruniu, Toruń 2009. Migała P., Edukacja dorosłych – powszechną i wielowymiarową formą aktywności człowieka,

http://www.almamer.pl/aa%20materialy%20dydaktyczne/TiR_Socjologia_czasu_wolnego_Migala.pdf (date of access: 28.09.2012).

Milerski B., Śliwerski B. (eds.), Leksykon tematyczny PWN Pedagogika, Wydawnictwo Naukowe PWN, Warszawa 2000.

Recommendation on the development of adult education, adopted by the General Conference at its nineteenth session. Nairobi 26 November 1976. UNESCO, [in:] J. Półturzycki (ed.), Dydaktyka dorosłych, WSiP, Warszawa 1991.

Rejman K., Znaczenie edukacji w procesie integracji społecznej osób w wieku senioralnym, [in:] B. Balogova (ed.), Elan vital v priestore medzigeneracnych vztahov, Presovska Univerzita v Pre-sove, Presov 2010.

Strategia kształcenia ustawicznego do roku 2010, dokument opracowany przez Ministerstwo Eduka-cji Narodowej i Sportu i przyjęty przez Radę Ministrów w dniu 8 lipca 2003r., http://www.men.gov.pl/ (date of access: 10.10.2010).

Strategia rozwoju edukacji na lata 2007–2013, Narodowy Plan Rozwoju 2007–2013, Ministerstwo Edukacji Narodowej i Sportu, Warszawa 2005.

Stround D., The 50-plus Market, Kogan Page, London 2005. Synak B., Człowiek stary i jego rodzina w zmieniającej się rzeczywistości ekonomicznej, Problemy

Rodziny 1992, nr 1. The Copenhagen Declaration. Declaration of the European Ministers of Vocational Education and Train-

ing, and the European Commission, convened in Copenhagen on 29 and 30 November 2002 on en-hanced European cooperation in vocational education and training, http://ec.europa.eu/education/pdf/ doc125_en.pdf (date of access: 05.09.2012).

The 2009 Ageing Report: Economic and Budgetary Projections for the EU-27 Member States (2008–2060), “Forthcoming European Economy” 2/2009 (working document). Joint Report prepared by the Euro-pean Commission (DG ECFIN) and the Economic Policy Committee (AWG), Brussels 2009.

Education engagement of the elderly... 143 Turner J., Helms D., Rozwój człowieka, WSiP, Warszawa 1999. Ziębińska B., Uniwersytety trzeciego wieku jako instytucje przeciwdziałające marginalizacji osób

starszych, rozprawa doktorska, Uniwersytet Śląski w Katowicach, Wydział Nauk Społecznych, Katowice 2007.

Znajmiecka-Sikora M., Kędzierska B., Roszko E. (eds.), Podstawy kształcenia ustawicznego od A do Z. Kompetencje pracowników a współczesne potrzeby rynku pracy, Wydawnictwo Ego, Łódź 2011.

Zych A., Człowiek wobec starości. Szkice z gerontologii społecznej, Katowice 1999. 2009 Aging Report. Economic and Budgetary Projections for EU-27 Member States (2008–2060).

Statistical Annex, European Commission, Economic and Financial Affairs Directorate General, Brussels 2009.

ZAANGAŻOWANIE OSÓB STARSZYCH W EDUKACJĘ – DOŚWIADCZENIA WYBRANYCH PAŃSTW REGIONU MORZA BAŁTYCKIEGO

Streszczenie: Celem artykułu jest prezentacja zaangażowania osób w starszych w pań-stwach regionu Morza Bałtyckiego w edukację dorosłych oraz omówienie możliwości i uwarunkowań aktywności edukacyjnej osób starszych. Autorki odniosły się także do zależ-ności pomiędzy udziałem osób starszych w edukacji a ich sytuacją ekonomiczno-społeczną.

Słowa kluczowe: starzenie się społeczeństwa, edukacja dorosłych, istota edukacji osób starszych.



Ewa Coll Polish Academy of Science

THE CLASSIFICATION OF EU AND EASTERN PARTNERSHIP COUNTRIES REGARDING ECONOMIC DEVELOPMENT LEVEL – A DYNAMIC APPROACH

Summary: The study presents the classification of the European Union member states and the Eastern Partnership countries with regard to economic potential illustrated by GDP per capita value in a dynamic perspective (covering the period of 1995–2009).

Keywords: the Eastern Partnership, economic integration, classification, GDP per capita.

1. Introduction

The development of the European Union as well as its competitiveness may depend on both the establishment of long-term, permanent principles of dynamic economic and social development in particular member countries, as well as strengthening international relations not only with partners who set global development tendencies, but also with neighbouring countries, creating opportunities for the accomplishment of external advantages. Therefore the evaluation of the prospects for the European Union’s competitive advantage requires an in-depth analysis of the relations occurring in the sphere of the economy between EU member states and its neighbours, i.e. countries featuring significant political potential and represented, beyond any doubt, by the Eastern Partnership.

The main purpose of this paper is to classify the EU and the Eastern Partnership with regard to their economic potential, illustrated by the value of GDP per capita, taking a dynamic approach perspective in the period of 1995–2009.

2. Determinants of the European Union external relations

The directions of systemic reform introduced by the Lisbon Treaty are of fundamental importance for the future of the European Union, its cohesion and its

The classification of EU and Eastern Partnership... 145 position perceived in the international arena. It is of crucial importance that the EU was established as a legal entity in accordance with the Lisbon Treaty provisions [Barcz 2008; 2010; 2012; Barcz (ed.) 2008; Wróbel (ed.) 2012] and therefore it has became a coherent international organization acting upon a unified legal structure and its sources. As the legal system underlying an international organization, EU legislation currently covers the following [Barcz, Kawecka-Wyrzykowska, Michałowska-Gorywoda 2012; Bujalski, Błędzki 2008]: – primary law, i.e. treaties constituting EU fundamentals (TUE – Treaty on

European Union and TFUE – Treaty on the Functioning of the Union), revision treaties, accession treaties and general principles of law developed by the judicature of the European Court of Justice (ECJ);

– derivative law – an internal EU legislation accepted by the Union institutions in order to regulate their functioning, i.e. institutional rules, inter-institutional agreements or binding legal agreements, addressed to the member states and units representing these states (natural persons and legal entities). These decision take the form of legislative and non-legislative acts divided into categories. EU international agreements with third countries or international organizations

constitute a crucial component of primary law. In accordance with the Lisbon Treaty, the scope of EU competencies for entering into international agreements was prepared, following Art. 216, paragraph 1 of TFUE: “The Union may conclude an agreement with one or more third countries or international organisations where the Treaties so provide or where the conclusion of an agreement is necessary in order to achieve, within the framework of the Union's policies, one of the objectives referred to in the Treaties, or is provided for in a legally binding Union act or is likely to affect common rules or alter their scope”.

The EU functioning in international relations occurs through many institutions, based on diverse TUE and TFUE legal regulations and within the framework of activities performed by the High Representative of the Union for Foreign Affairs and Security Policy appointed by the Lisbon Treaty1 [Cała-Wacinkiewicz 2012; Chruściak 2010]. The element which binds these activities is the concept of EU external relations, since: “In its relations with the wider world, the Union shall uphold and promote its values and interests and contribute to the protection of its citizens. It shall contribute to peace, security, the sustainable development of the Earth, solidarity and mutual respect among peoples, free and fair trade, eradication of poverty and the protection of human rights, in particular the rights of the child, as well as to the strict observance and the development of international law, including respect for the principles of the United Nations Charter” (Art. 3, paragraph 5 of TUE).

1 Referred to as High Representative.

146 Ewa Coll

Within the framework of external relations, the following are distinguished

[Barcz, Kawecka-Wyrzykowska, Michałowska-Gorywoda 2012]: Common Foreign and Security Policy (CFSP) which “is subject to specific rules and procedures” (Art. 24 of TUE) and the European Neighbourhood Policy (ENP). The significance of ENP was emphasized by separate regulations (in Art. 8) of the Treaty on European Union. External relations also cover – listed in Part five of TFUE – “external activities of the Union”. These areas are covered by a common catalogue of values and focused on the implementation of common goals. The most important components of these activities are as follows [Łazowski, Łabędzka 2011; Osica 2010]: Common Commercial Policy, association, cooperation for development, economic, financial and technical cooperation with third countries, humanitarian aid, mitigation measures, concluding international agreements by the Union, EU relations with international organizations and third countries, as well as the Union delegations and solidarity clause.

3. Partnerships as the result of the European Neighbourhood Policy

The European Neighbourhood Policy (ENP) was initiated following the subsequent stages of EU enlargement taking place in 2004 and 2007. The main purpose of the ENP is to avoid new divisions which might occur between the EU and its new neighbours [Communication… 2008a; Communication… 2008b].

The ENP, in carrying out the set goals, takes advantage of the existing legal measures and especially association agreements presented in the form of special action plans. The significance and rank of the ENP was defined in Art. 8 of the TUE, which states that in order to develop the ENP, “special agreements” are planned to be concluded:

“1. The Union shall develop a special relationship with neighbouring countries, aiming to establish an area of prosperity and good neighbourliness, founded on the values of the Union and characterised by close and peaceful relations based on cooperation.

2. For the purposes of paragraph 1, the Union may conclude specific agreements with the countries concerned. These agreements may contain reciprocal rights and obligations as well as the possibility of undertaking activities jointly. Their implementation shall be the subject of periodic consultation”.

Therefore, the main task of the ENP is to counteract potential break ups by facilitating and developing relations with new neighbours of the enlarged Union, as well as supporting political reforms in these countries. The European Neighbourhood Policy covered 16 countries altogether within the framework of: – The Eastern Partnership: Byelorussia, Ukraine, Moldova, Armenia, Azerbaijan

and Georgia [Communication… 2008a],

The classification of EU and Eastern Partnership... 147 – The Union for the Mediterranean: Algeria, Egypt, Israel, Jordan, Lebanon,

Libya, Morocco and also Palestinian Autonomy, Syria and Tunisia [Communication… 2008b]. The possibility of economic, financial and technical cooperation with third

countries, carried out within the framework of Partnerships, was introduced as a separate legal basis by the Treaty of Nice and adopted by the TFUE in accordance with the Lisbon Treaty. It is emphasized that its introduction was necessary for the development of EU relations with the former Soviet Union states. It was not possible to conclude any association agreement and besides, these states were not covered by aid programmes aimed at the developing countries. Provisions of these articles offer the possibility of undertaking unilateral measures by the Union in order to develop cooperation with these countries and concluding international agreements as well as providing them with financial support.

The Eastern Partnership (EP) represents the programme inaugurated in Prague in 2009 which defines the eastern dimension of the policy realized within the framework of the European Neighbourhood Policy – the form of regional cooperation directed towards the EU’s eastern neighbours. The initiative and the project of the Partnership initiated activities undertaken by Polish diplomacy and supported by Swedish partners.2 The programme objectives focus on closer cooperation with Byelorussia, Ukraine, Moldova, Georgia, Azerbaijan and Armenia, while the manifestations of its implementation are, among others [Łapczyński 2009]: trade preferences including the proposal of a free trade zone, fewer restrictions along the visa application process, intensification of human relations, as well as aid programmes. The idea of the Partnership is also to prepare its member countries for possible accession. The financial support for the programme amounts to 600 million EUR, including 250 million coming from the European Neighbourhood Partnership Instrument ENPI and the, so called, additional means make 350 million [Communication… 2008a; Communication… 2008b].

4. Economic integration of the European Union with Eastern European countries

The fundamental purpose of the European Neighbourhood Policy is to attract Eastern neighbours closer to the EU, to develop relations between the Union and Eastern European countries as well as the Southern Caucasian states, which may facilitate the gradual participation of these countries in EU policies and programmes and will also allow for integration with the common market.

2 The project was accepted by the European Commission on 3rd December 2008, approved by the EU leaders on 20 March 2009 and officially initiated on 7 May in Prague at the summit of EU Heads of Member States and Governments – the first session of EuroNest as the assembly of the European parliament representatives and national parliaments of Eastern Partnership.

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Additionally, cooperation is supposed to result in passing on good EU practice in such areas as: trade, economy and policy, while the pace of cooperation development depends on changes occurring in these countries and the expectations of their partners.

Many EU member states influenced the content of the signed agreement, since the need for the intensification of relations with eastern neighbours was emphasized, among others, by the Visegrad countries (V4): Czech Republic, Poland, Slovak Republic and Hungary, which presented substantive proposals in this mater, also joined by Lithuania, Latvia and Estonia. In 2006, during its EU Presidency, Austria suggested the establishment of a common power engineering policy with its integral part taking the form of a dialogue with energy transit countries, i.e. Ukraine and Byelorussia. During the German EU Presidency (2007) Germany suggested the “ENP Plus” concept which postulated offering EU neighbours an attractive and broad proposal of extending relations to facilitate concluding sector oriented agreements by EU and ENP countries. The manifestation of changes in the approaching neighbourhood policy was adopting the Polish-Lithuanian proposal of southern and eastern ENP dimension development by the European Council (in December 2007), not only within the framework of bilateral, but also multilateral relations [Wojna, Gniazdowski (eds.) 2009].

The Eastern Partnership, following its bilateral dimension, aims at preparing a new legal basis in relations between the EU and its eastern neighbours, including association agreements as well as the establishment of broad and complex free trade zones. It also focuses on activities for the total liberalization of visa obtaining regime in relations with particular partnership countries and also the development of cooperation in the area of power engineering safety. A further deepening of relations with the Union depended, among others, on the partners’ progress in the realization of such values as democracy, rule of law and respect for human rights and also in the implementation of the market economy, sustainable development and the rules of good management practice. The EU, on the other hand, follows the commitment of supporting reform oriented activities in the neighbouring countries, including the support for their administrative capacity improvement. Even though the Eastern Partnership does not stand for enlargement strategy, however, it is not ruled out that its member countries may, in the future, become EU member states. It is emphasized that the model, defined within the framework of the Eastern Partnership, for relations development with the Union is flexible enough to become attractive for both those countries which are only interested in close cooperation with the Union and those aspiring to be covered by the process of European integration [Wojna, Gniazdowski (eds.) 2009].

The significance of the Eastern Partnership for countries referred to as “supporters of the Black Sea Cooperation”, i.e. Germany (the authors of the Black Sea Synergy concept), Romania and Bulgaria, as well as the Mediterranean Greece,

The classification of EU and Eastern Partnership... 149 is crucial owing to the geographical location of these three countries and their cultural, political, economic and social ties. Interest in the eastern neighbours is also growing among other European countries oriented towards the southern neighbourhood, which mainly refers to economic, power engineering, internal safety and cooperation in border management. The desire for the ENP extension constitutes, beyond any doubt, the common ground for countries interested in relations with southern and eastern neighbours and, in spite of discrepancies regarding the type of EU political and financial involvement in the east and south, it is of mutual interest to promote political, legal, institutional and good management standards, as well as democratic norms in the EU neighbourhood areas [Wojna, Gniazdowski (eds.) 2009].

5. The results of EU and Eastern Partnership countries’ classification regarding GDP per capita

in the period of 1995–2009

The performed analysis covered EU27 countries and the Eastern Partnership nations, i.e. Armenia, Azerbaijan, Byelorussia, Georgia, Moldova and Ukraine in the period of 1995–2009. The International Monetary Fund3 database resources served as the source of statistical information. GDP per capita based on purchasing power parity (PPP) represents the measure selected for the primary evaluation of the listed countries economic development level. PPP GDP is the gross domestic product converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GDP as the US dollar has in the United States. GDP at purchaser’s prices is the sum of gross value added by all resident producers in the economy, plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for the depreciation of manufactured assets or for the depletion and degradation of natural resources. The data presented are in current international dollars.

The group of countries featuring the lowest GDP per capita level, both in 1995 and in each subsequent year, included: Armenia, Moldova and Georgia (in 1995 it was respectively 1,232, 1,298 and 1,438, while in 2009 in Moldova – 2,862, in Georgia – 4,766.5 and in Armenia – 4,987.7). At the same time, GDP per capita value increased in Luxembourg from 44,500 up to 77,400, while in Poland from 7,300 up to 18,000. GDP growth in 2009, assessed in relation to 1995 levels, allows to conclude that almost a sixfold increase is characteristic for Azerbaijan (from 1,600 up to 9,500), fivefold for Lithuania (from 3,400 up to 16,600), fourfold for Armenia and the smallest one was recorded in Italy (up to 140% of the 1995 level, i.e. from 20,700 up to 29,100). The above brief characteristics confirm the extensive diversification of both the level and pace of GDP changes in the countries under analysis.

3 http://data.worldbank.org/indicator.

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The next stage of analysis consisted in investigating groups of countries

featuring similar GDP values in the period of 1995–2009. The study used time series grouping by means of applying the Ward method with the square Euclidean distance. The analysis of the groups obtained was conducted based on, among others, mean values, standard deviations and variation coefficients.

The European Union and Eastern Partnership countries grouping was made regarding GDP per capita value based on purchasing power parity throughout an overall period which means that there are as many “qualities” as time units. The standardization of qualities was not performed due to data uniformity. This procedure allowed for obtaining groups distinguished both with regard to the level of analyzed quality and its changes in time. The classification results obtained using the Ward method are presented in Figure 1. It is only by means of visual assessment that the analyzed countries may be divided into four groups, of which one constitutes a single-element group comprising Luxembourg, and therefore it was decided that a split into 5 groups of countries will be applied in the course of further analysis.

Figure 1. Dendrogram prepared following the Ward method presenting division into classes

Source: own elaboration based on IMF data applying the Statistica programme.

Among the five groups obtained, group B is the most numerous featuring the second GDP per capita value level in both the first and the last year of analysis and covering twelve “old” EU countries – see Table 1.

The classification of EU and Eastern Partnership... 151 Table 1. Selected characteristics of groups

Group Number

of countries (from EU, from EP)

Countries Mean GDP values Mean GDP

dynamics in 1995-2009

in 1995 in 2009

A 1 (1 EU) Luxembourg 40,537.8 77,363.5 104.7

B 12 (12 EU) Austria, Netherlands, Belgium, Sweden,

Italy, Spain Denmark, Ireland, Finland, United Kingdom, France, Germany, 20,769.8 34,922.5

103.8

C 6 (6 EU) Cyprus, Czech Republic, Greece, Slovenia,

Portugal, Malta, 14,494.2 26,019.8 104.3

D 6 (6 EU) Estonia, Hungary, Slovak Republic, Latvia,

Poland, Lithuania, 6,714.6 17,694.0 107.5

E 8 (2 EU, 6 EP) Bulgaria, Romania, Armenia, Azerbaijan,

Belarus, Georgia, Moldova, Ukraine 2,970.9 8,230.3 108.1

Source: own elaboration based on IMF data.

Poland, including five other countries of the 2004 accession (Estonia, Hungary, Slovak Republic, Latvia, Lithuania), represent the group featuring the second mean value of GDP per capita level (but in the ranking from the smallest), while mean dynamics is almost the highest in this group.

The Eastern Partnership countries, as well as Romania and Bulgaria (i.e. countries of the 2007 accession), represent “the weakest” group regarding GDP per capita value, however, at the same time this group shows the highest mean dynamics of this particular characteristics.

For each group mean values, standard deviations and variation coefficients were also determined, as illustrated in Figure 2.

It can be easily noticed that the obtained division resulted mainly from the mean value of GDP per capita level, however, it is worth paying attention to the fact that in the case of weaker groups the downturn was slower in recent years since the drop was from a lower level.

The graph illustrating standard deviation indicates that the diversification between countries in the same group measured by standard deviation was increasing at a similar pace among both the “rich” EU countries (group B) and the “eastern” ones (group E). Group D, to which Poland belongs, presented a smaller diversification at first, however, in recent years it increased again. The analysis of variation coefficients indicates that the “old” EU countries maintained their diversification at a similar level (up to 10%) while the group including Poland converged and due processes were initiated even before EU accession. The Eastern countries are, on the other hand, characterized by an extensive diversification regarding GDP value and their convergence was slowed down.

GDP value per capita in the obtained clusters and mean values in these groups are presented in Figure 3 which illustrates that group B features an initial quick

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increase of GDP per capita in the case of Ireland and a spectacular drop in 2008. The lowest values in this group, throughout the entire analyzed period, were recorded in Spain. For the first few years and in 2009, the highest GDP values per capita were observed in group C, both Czech Republic and Slovak Republic were ranked last regarding GDP per capita level in the pre-accession period (Slovak Republic) and in the accession year (Czech Republic) recorded higher values of this characteristic than, among others, Portugal and Malta representing, since 2005, the countries characterized by the lowest GDP per capita levels in this group.

Figure 2. Mean, standard deviation and variation coefficient values in the obtained groups

Source: own elaboration based on IMF data.in group B in the Netherlands.

Group D, which includes Poland, forms the cluster characterized by a relatively stable GDP per capita growth. It is worth emphasizing that Poland is the only country included in this group which also preserved its growing tendency in 2009. It should also be remembered at this point that group D covers countries acting as strong advocates of the idea of the Eastern Partnership.

The classification of EU and Eastern Partnership... 153

Figure 3. GDP per capita values in countries forming B, C, D and E clusters


Group E includes all countries of the Eastern Partnership, as well as Bulgaria and Romania. Azerbaijan represents the country which features the most dynamic GDP per capita growth, while Moldova is the country characterized by the slowest pace of transformations in this group.

The next part of the study discusses information regarding the two poorest groups in terms of GDP per capita (see Figure 4). These groups are made up of countries whose initial GDP per capita values start from 1,200 up to 9,400, and the final ones take the range of 2,800 up to 21,000 per inhabitant.

The relations presented in the middle picture of mean GDP values per capita in groups D and E indicate that, following the initial period of growth (till 2000), a gradual decrease of relationship was assessed in relative terms. Nevertheless, the difference of these values in both groups illustrated in the right-hand picture shows a worrying, ongoing increase of the distance (till 2007) between group D and E (evaluated as the absolute distance).

154 Ewa Coll

Figure 4. GDP per capita in groups D and E and the presentation of mean values in these groups


The drop in GDP per capita values is clearly visible in almost all the analysed countries apart from Poland, Byelorussia and Azerbaijan, where in 2009 GDP growth was still observed.

Meeting the underlying provisions of the agreement concluded between the European Union and the Eastern Partnership countries constitutes the next step in carrying out the policy of opening towards the east. These countries represent the natural direction of economic cooperation for the Union. The discussed research indicates that the Eastern Partnership countries feature a very low GDP per capita level, as well as a significant spread of its values. This means a great challenge for the economies of such countries as Azerbaijan, Moldova, Georgia, Armenia, Byelorussia and Ukraine in undertaking activities aimed at both GDP per capita value growth and minimizing developmental disproportions.

The classification of EU and Eastern Partnership... 155 6. Final remarks

The preformed analysis allows for making an observation that in the studied period of time there occurred characteristic economic development tendencies illustrated by GDP per capita value. Groups of countries featuring relatively high GDP per capita values presented, in the period under consideration, a weaker development dynamics, while the diversification between countries covered by these groups was relatively stable. On the other hand, countries with lower GDP per capita values, in the studied years, registered high dynamics of economic development while the differences between countries were undergoing changes from a dynamic increase in spread to mitigating development disparities. The Eastern Partnership countries are characterized by a significant spread regarding GDP per capita level and the low level of this measure values. The Eastern Partnership countries have a difficult path ahead of them focused on a gradual increase of GDP per capita values and the simultaneous mitigation of development disproportions.

The conducted analysis illustrates how complicated the provisions for carrying out integration processes are, which should result in economic and civilization advantages for all their participants.

References

Barcz J., Przewodnik po Traktacie z Lizbony. Traktaty Ustanawiające UE, Lexis Nexis 2008. Barcz J., Traktat z Lizbony. Wybrane aspekty prawne działań implementacyjnych, Lexis Nexis 2012. Barcz J., Unia Europejska na rozstajach. Traktat z Lizbony, wyd. 2, EuroPrawo, Warszawa 2010. Barcz J. (ed.), Traktat z Lizbony. Główne reformy ustrojowe Unii Europejskiej, Urząd Komitetu Inte-

gracji Europejskiej, Departament Dokumentacji Europejskiej i Publikacji, Niezależny Instytut Prawa Międzynarodowego i Europejskiego, Warszawa 2008.

Barcz J., Kawecka-Wyrzykowska E., Michałowska-Gorywoda K., Integracja europejska w świetle Traktatu z Lizbony. Aspekty ekonomiczne, PWE, Warszawa 2012.

Bujalski R., Błędzki P., Traktat z Lizbony. Ujednolicone teksty aktów podstawowych Unii Europej-skiej, Wolters Kluwer, 2008.

Cała-Wacinkiewicz E., System instytucji Unii Europejskiej w świetle postanowień Traktatu z Lizbony, wyd. 2, C.H. Beck, 2012.

Chruściak R., Ratyfikacja Traktatu z Lizbony. Spory polityczne i prawne, Elipsa, 2010. Communication from the Commission to the European Parliament and the Council; Eastern Partner-

ship, COM(2008) 823 final version, Brussels, 3 December 2008. Communication from the Commission to the European Parliament and the Council: The Barcelona

Process: The Union for the Mediterranean region, COM(2008) 319 final version, Brussels 2008b.

Łapczyński M., The European Union’s Eastern Partnership: chances and perspectives, Caucasian Re-view of International Affairs 2009, vol. 3(2), Spring.

Łazowski A., Łabędzka E., Działania zewnętrzne UE. Aspekty prawne, EuroPrawo, Warszawa 2011. Osica O., „Ujarzmianie chaosu” – przyszłość stosunków zewnętrznych UE w świetle Traktatu z Li-

zbony, Sprawy Międzynarodowe 2010, nr 2.

156 Ewa Coll

Wojna B., Gniazdowski M. (eds.), Partnerstwo Wschodnie – raport otwarcia, Polski Instytut Spraw

Międzynarodowych, Warszawa 2009. Wróbel A. (ed.), Traktat o funkcjonowaniu Unii Europejskiej, t. 1–3, C.H. Beck, 2012.

Website http://data.worldbank.org/indicator.

KLASYFIKACJA PAŃSTW UE I KRAJÓW PARTNERSTWA WSCHODNIEGO ZE WZGLĘDU NA POZIOM ROZWOJU GOSPODARCZEGO – UJĘCIE DYNAMICZNE

Streszczenie: W pracy przeprowadzono klasyfikację państw Unii Europejskiej i krajów Partnerstwa Wschodniego ze względu na potencjał gospodarczy ilustrowany wartością PKB per capita w ujęciu dynamicznym (w latach 1995–2009).

Słowa kluczowe: Partnerstwo Wschodnie, integracja gospodarcza, klasyfikacja, PKB per capita.



Anetta Waśniewska Gdynia Maritime University

THE POTENTIAL OF THE POPULATION IN THE BALTIC SEA REGION IN THE YEARS 2001–2011

Summary: The Baltic Sea Region comprises an area of approximately 1,676,024 km2, which in 2011 was inhabited by 146,953,922 people. Thus 87.7 people lived in one square kilometre. The purpose of this article is a demographic analysis of selected aspects of the socio-economic situation of the population in the BSR in 2001–2011, as well as the presen-tation of the index of the study area potential based on the Human Development Index.

Keywords: potential, human capital, Baltic Sea Region (BSR).

1. Introduction

The concept of the potential may be expressed in various aspects. In the article, this term has been discussed in terms of the economy including the human factor. Selected elements of the socio-economic situation in the countries belong to the Baltic Sea Region 2001–2011 on the basis of the data published by EUROSTAT were presented.

The purpose of this article is to present the potential population of the Baltic Sea Region based on the available statistical data and the index of potential, whose construction was based on the Human Development Index

The following BSR countries were considered: Denmark, Estonia, Finland, Lithuania, Latvia, Germany, Poland and Sweden. The study does not include the Kaliningrad region, due to the inability to obtain data for analysis.

2. Human capital and its potential

The term “potential” refers to the various areas and spheres of life. The same concept commonly means the resource capabilities, power, generation capacity inherent in structures, machinery or equipment. Today, the term also refers to the possibilities inherent in the communities or individually in each person. Then, the potential of a single person means human capital.

158 Anetta Waśniewska

The concept of human capital to economics was introduced in the mid-20th century

by T.W. Schultz (Nobel Prize 1979) and G.S. Becker (Nobel Prize 1992). However, the theoretical basis relating to the concept of human capital can be discerned already in the work of W. Petty and A. Smith. Currently, the possible impact of human capital on the growth and economic development of countries is being analysed.

The concept of human capital may be analysed in a narrow definition as it relates to the level of education and in broad terms – natural ability, knowledge resources, health, education and vital energy. Human capital in a wider sense, is also professional experience, innovation, level of cultural, socio-economic activity and worldviews of every person, but also society as a whole.

Mostly in economic terms, human capital is considered as a resource of knowledge, skills, health and vital energy. It should be emphasized that these resources can be enlarged by investing in people. In microeconomics terms, human capital is characterized by stability, and the period of its life is defined and determined by the natural death of the owner or the moment of retirement (cessation of labour). In this case, the owner of human capital, as the manager who has time and specific resources (skills, experience) is trying to maximize his/her objective function, which may be usefulness or income level. Human capital is immortal (eternal) in terms of macroeconomics, because the profession does not die with the death of its representatives. In this case, one can analyse the problem of depreciation of human capital, which cannot be analysed by the human life cycle [Domański 1993, pp. 92–93].

A person is characterized by dichotomy in economic terms. On the one hand, he/she is a producer of goods and services, but on the other hand, a consumer. Therefore, the potential for people living in the area is affected by the condition and structure of the population considered, by the production capacity of the region, as well as the structure and size of the desired amount of final goods. This depends, among other things, on [Latuch 1985, pp. 300–301, Holzer 2003, pp.163]: – the distribution of productive forces, – principles of distribution of national income, – the investment, – the employment and social benefits, – the technical and technological progress, – the level of education, – the quality of health care.

Numerical population change occurring in a given area depends on the size of natural increase and migration. These processes are different in terms of time and space. Also, the development of the population in numbers and their distribution is influenced by these factors [Holzer 2003, pp. 19–23]: – natural and geographical: climate, soil type, topography, mineral and energy

resources; – socio-economic: the degree of socio-economic development, forms of social

organization, the development of technology, government policy;

The potential of the population... 159 – demographical: population growth, migration.

The population of the country is a factor that affects the development and economic growth, and so is its potential. Then the human factor can be considered by the opportunities for economic and demographic area (see Figure 1).

The concept of the economic potential of the population is ambiguous and complex. To the economic potential belong the elementary potentials [Gazińska 2003, pp. 19–23]: – the life potential (otherwise demographic): concerns the length of life of the

individual and is associated with age, gender, place of residence, marital status, etc.; – the physical potential: refers to the physical entity which is highly influenced

by genetic factors, individual work and external factors; – intellectual potential: referred to as intelligence, which equally affect the

genetic and environmental factors, such as the ability to inherit the social and economic status of parents, home, furnishings, library, etc.;

– emotional potential: to a large extent determines the success in life, as a person characterized by high self-confidence, strong motivation, resistance to stress, diligence and perseverance in the pursuit of the goal they are able to achieve more than is consistent with their physical or intellectual potential.

POTENTIAL

demographic economic

living physical intellectual emotional

Figure 1. Assigned elementary human potential

Source: own elaboration based on [Gazińska 2003, p. 20].

Demographic potential is strongly correlated with the population of the area and the possibilities of its reproduction and development. The regions which are home to a small number of people, may have a large stock of human capital and vice versa. Countries and regions investing in labour and education resources are characterized by a more dynamic growth and achieve a higher level of national income [Gawlikowska-Hueckel 2003, p. 81].

The author of the potential demography is L. Herach, who in the 1940s suggested a method of analysis. According to this concept, individuals have a significant impact on future reproduction, participation in work or length of life that they had before them. Differences between people are significant.

Therefore, in the potential demography, each person has a certain importance corresponding to, for example, his/her age, period of employment. People of different ages have different relation to the further long life expectancy, that is, each person has a different potential in life.


The life potential of the group depends on the number of the members of this

group, age structure, the average life expectancy for different generations. Changes of the life potential can be caused by such factors as the number of

births, number of deaths, the age structure of people who died, the average life expectancy for different generations, aging people, migration [Holzer 2003, p. 264].

The economic potential of the population is determined by such factors as: – the economic age of the population, – the share of the working age population in the total population, – the level of education of the population.

The population living in the area can also be divided based on the age of the people. In this arrangement, the population is divided into the population in pre-, production and post-production stage. If the proportion of people of working age decreases, the available labour force will be more rationally used, for example, by: raising the retirement age, extending the employment of women, increasing the number of odd jobs, the effective management of the unemployed to work and retrain, greater use of volunteers, increasing pressure on teaching young people skills that can be used in the labour market [McRae 1996, p. 154].

The rapid development of human potential is possible in the area of a region by the inflow of educated people, who have the qualifications, experience or skills. However, the growth of the population by increasing the number of births does not provide the opportunities for development, because human resources must be first invested in (educated, provided with medical care and social security), and in the future used to improve the socio-economic development.

3. The demographic situation in the BSR

The Baltic Sea Region was inhabited by 147,144,825 people in 2001. In 2011, compared to 2001, the population decreased by 190,903 people. The population grew until 2003, after which there has been a decrease in the number of people living in that area.

The largest population decline in 2011, compared to 2001, was recorded in Germany (down by 507,938 persons), Latvia (a decrease of 289,649 persons) and in Lithuania (a decrease of 242,397 people). The increase in the number of people affected Sweden (an increase of 532,778 persons), Denmark (an increase of 202,825 people) and Finland (an increase of 194,161 people). The population in BSR is shown in Figure 2.

The most densely populated country is Germany. For one square kilometre there are about 230 people. Whereas the smallest share of the population per square kilometre occurs in Finland, where in one square kilometre live 17 people (see Figure 3).

The potential of the population... 161

Figure 2. Number of population in 2001 to 2011 in the BSR

Source: based on EUROSTAT data.

Figure 3. Population density in 2001–2010 in the BSR


In the numerically analysed area women dominated (see Figure 4). The highest values of the feminization index were recorded in Latvia and Estonia, where in the analysed period, for every hundred men, there were 117 women. The lowest values were recorded in Sweden in 2011 and amounted to 100.7.

The natural increase in the BSR is presented in Figure 5. Only Denmark and Finland recorded a positive growth rate in 2001–2011. Countries such as Germany, Estonia, Latvia and Lithuania in the analysed period recorded a negative growth


rate. The highest negative rate was recorded in Latvia in 2001 (–5.7), and the largest positive value in Sweden in 2010 (2.7).

Figure 4. Women per 100 men in 2001–2010 in the BSR


The negative values of the natural increase are alarming. The values of this ratio translate into the number of people living in the area affected, the BSR, and a decline in its population.

Figure 5. Natural population change in 2001–2010 in the BSR



The socio-economic situation in the BSR and its potential can also provide the economic share of the population according to age groups. The declining share of the total population of pre-production age people (0–14 years), as shown in Figure 6. The largest decrease in the number of people in this age range were recorded in Lithuania, Poland and Latvia. The smallest decline in the share of the population in the pre-production occurred in Denmark.

Figure 6. Share of the population aged 0–14 years in2001 to 2011 in the BSR (%)


Figure 7. Share of the population aged 15–64 in 2001 to 2011 in the BSR (%)



The high percentage of people of working age (15–64 years) living in Poland

and in the BSR shows an increase from 68.6% in 2001 to 71.4% in 2011. Only in the three analysed countries the working age population shows a downward trend (Finland, Denmark and Germany).

Figure 8. The share of the population aged 65 + years in 2001 to 2011 in the BSR (%)


The largest population increase in the retirement age group was recorded in Germany in the given period. All countries in the BSR during the discussed period reported an increase in the percentage of people in the retirement age group. This trend is very unfavourable. There is evidence of an aging population and the increasing costs associated with the payment of benefits for the elderly. People of working age are supporting a growing number of people in the retirement age group.

4. Potential of the BSR

The demographic potential of the BSR may also involve the rate of potential, which was built based on the Human Development Index (HDI). The indicator of the potential in this case will determine the possibility of development of a country based on data collected in the area of human resources. The indicator obtained in this way is characterized by the relative simplicity of the calculations. The general form of the potential indicator for a given country in a given year can be represented by the formula:

31

,3j iji

H H

wherein


min

,max min

k tktj x

ijk tk k tk

xH

x x

j – the country and has a value from 1 to 8, i – an index calculated rate, Hij – the specific value of the i-th factor achieved by the j-th country in a

given period of time. The article presents calculation using normalization with fixed parameters. The factors included in the rate of capacity based on:

– employment rate – which represents the percentage of people employed in the total working-age population during the years between 2001 and 2011 (see Table 1),

– total population having completed at least upper secondary education – which shows the share of people aged 25–64 who have achieved at least upper secondary education or higher (see Table 2),

Table 1. Employment rate of the BSR in 2001–2011 (%)

Total Employment rate geo\time 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Denmark 78.3 77.7 77.3 77.6 78.0 79.4 79.0 79.7 77.5 75.8 75.7 Germany 69.1 68.8 68.4 68.8 69.4 71.1 72.9 74.0 74.2 74.9 76.3 Estonia 67.8 69.2 70.0 70.6 72.0 75.8 76.8 77.0 69.9 66.7 70.4 Latvia 65.1 67.0 68.9 69.3 70.3 73.5 75.2 75.8 67.1 65.0 67.2 Lithuania 64.2 67.2 68.9 69.0 70.6 71.6 72.9 72.0 67.2 64.4 67.2 Poland 59.4 57.4 57.1 57.3 58.3 60.1 62.7 65.0 64.9 64.6 64.8 Finland 72.6 72.6 72.2 72.2 73.0 73.9 74.8 75.8 73.5 73.0 73.8 Sweden 78.7 78.5 77.9 77.4 78.1 78.8 80.1 80.4 78.3 78.7 80.0


Table 2. Share of the population with at least secondary education in the BSR in 2001–2011 (%)

Total Total population having completed at least upper secondary education geo\time 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011




– proportion of population aged 25–64 – which represents the share of the

working age population to the total population under the assumption of educational opportunities of at least average and/or higher education (Table 3).

Table 3. Share of the population aged 25–64 in 2001–2011inthe BSR (%)

Total Proportion of population aged 25–64 geo\time 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011



Based on the data in Tables 1–3, the index potential was calculated, presented in Table 4.

Table 4. Index value potential in 2001–2011 in the BSR

Total Potential factor geo\time 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011



The lowest values of the potential index were obtained for Poland in the period from 2001 to 2005, and in 2007. This was primarily the result of the partial lowest values on the level of employment in the period 2001–2011 (with the exception of 2010). In 2010, the value of the lowest employment rate occurred in Lithuania.

In 2006 and 2008, the lowest rate of capacity occurred in Sweden. The lowest level of the ratio, decided by the lowest value of the partial factor for the share of people with at least a secondary education (2006),was the lowest for people aged 25–64 in the population of Sweden (2008). It is worth noting that the partial participation rate of people aged 25–64 in Sweden remained low until 2011, although the index has risen to a higher potential.


In 2010, the index reached the lowest value of the potential in Latvia. Its low value primarily affected the low values of partial employment and participation rate of the population aged 25–64 in the population of Latvia.

For 2010–2011, Denmark obtained the lowest potential index values. This was due to the lower value of the partial factor for the participation of people with at least a secondary education and to obtaining low values of the partial rate of the population aged 25 to 64.

Figure 9. Index value potential in 2001–2011 in the BSR

Source: own calculations based on data contained in Tables 1–3.

The highest value of the potential index in 2001–2006 was obtained by Denmark. Its value was mainly due to the highest values of partial employment.

In 2007, the maximum value of the potential index was obtained by Estonia. In this case, the high value was caused by the sub-factor of the share of educated people.

From 2008 to 2011 the highest values of the potential index was obtained by Germany. This result was mainly due to the high value of the coefficient of partial employment and participation of people with at least a secondary education population.

5. Summing-up

The obtained values of the potential index indicate that there is no clearly defined leadership in the region which could directly affect the development of other countries.

However, there are significant disparities between countries, which is especially visible in Figure 9. It is encouraging that Poland has received increasingly higher values of the index. It is a pity that the increase in Poland owes


its importance mainly due to the high proportion of people aged 25–64 , and not the increase in the employment rate, which in Poland, throughout the period remained at a low level, or the lowest of all the analysed countries.

The trend of the partial factor relating to the share of people with at least a secondary education is also beneficial for Poland, because there is a relationship between the educational system and economic development. Human capital created by the system of education, is becoming an important factor in growth and economic development while improving the competitiveness of the country in the international arena.

References

Domański S.D., Kapitał ludzki i wzrost gospodarczy, PWN, Warszawa 1993. Gawlikowska-Hueckel K., Procesy rozwoju regionalnego w Unii Europejskiej. Konwergencja czy po-

laryzacja?, Uniwersytet Gdański, Gdańsk 2003. Gazińska M., Potencjał demograficzny w regionie. Analiza ilościowa, Uniwersytet Szczeciński,

Szczecin 2003. Holzer Z.J., Demografia, PWE, Warszawa 2003. Latuch M., Demografia społeczno-ekonomiczna, PWE, Warszawa 1985. McRae H., Świat w roku 2020, Dom Wydawniczy ABC, Warszawa 1996.

Website http://epp.eurostat.ec.europa.eu.

POTENCJAŁ LUDNOŚCI REGIONU MORZA BAŁTYCKIEGO W LATACH 2001–2011

Streszczenie: Region Morza Bałtyckiego obejmuje obszar około 1 676 024 km2, który w 2011 roku zamieszkiwały 146 953 922 osoby. Jeden kilometr kwadratowy zamieszkiwało 87,7 osoby. Celem artykułu jest analiza demograficzna wybranych aspektów dotyczących sytuacji społeczno-ekonomicznej ludności zamieszkującej RMB w latach 2001–2011, jak również prezentacja indeksu potencjału analizowanego obszaru w oparciu o Indeks Rozwoju Społecznego.

Słowa kluczowe: potencjał, kapitał ludzki, Region Morza Bałtyckiego.



Alla Melnyk Ternopil National Economic University

MODERNIZATION OF REGIONAL STRUCTURAL POLICY MECHANISMS IN UKRAINE IN THE PROCESS OF ITS EU INTEGRATION

Summary: Based on the theory of modernization, the question is raised as to how to im-plement in Ukraine the EU mechanisms of regional policy and the regional structural policy as its component. On the basis of the comparative analysis, the prerequisites and factors de-termining the structural policies of the EU and Ukraine are outlined. The risks (geo-economic, economic, energy, demographic) are determined that are associated with the structural distortions and can adversely affect Ukraine’s integration into the EU. The mechanisms of regional structural policy are assessed, and the problems of their upgrading in Ukraine identified. The conclusion is made about the need for radical institutional solu-tions in Ukraine, including the development of selective programs of structural adjustment of regional economies.

Keywords: structural policy, EU regional policy, mechanisms of structural policy.

1. Introduction

The expansion of the European Union, Ukraine’s entry into the WTO, the global economic crisis, and the expectation of its second wave, like other globalization processes, produce a tremendous effect on the socio-economic development of the regions. In general, external challenges and internal problems cause a sharp differentiation of the Ukrainian regions. The internal factors include a deepening of structural distortions among regional economies. The main reasons are the following: absence of active measures on the structural transformation of the national economy, poor methodological base for choosing the priority structural adjustment of the national economy in general, and specifically its regional imperfections of acting mechanisms of structural policy.

Nevertheless, different mechanisms of structural adjustment depending upon the specificity of the national economy has been used by the countries of Western Europe, as well as by these of Central and Eastern Europe (second integration

170 Alla Melnyk

wave), and that provides a relevant methodological and practical basis for the modernization of regional structural policy in Ukraine.

The institutional model of D. North [North 2000], scientific works by D. Puchala [Puchala 1993], R. Jones [Jones 2001], T. Bal-Woźniak [Bal-Woźniak 2007], I. Hladii, [Hladii 2006], N. Mikula and V.Tolkovanov [Mikula, Tolkovanov 2010], D. Lukianenko [Lukianenko 2007], W. Pappa [Pappa 2008] and others, make up the methodological base of this research.

The basis of the given research is a hypothesis on the improvement of the possibility for the regions to increase their compatibility on the basis of the structuring of their economies taking into account the challenges for the development of the national economic system and the modern processes occurring in the world economy. Based on the theory of modernization, we put forward the issue of implementation accounting for national identity, mechanisms of regional EU policy and its component, i.e. regional structural policy.

2. Preconditions and factors defining the regional structural policy in the EU and Ukraine

In general, the regional structural policy of any country is determined by the following prerequisites: economic potential of the regions; regional equilibrium rate, geo-political and geo-economic statement of the regions; internal and external factors that determine trends of transformation of regional economic structures; challenges caused by the globalization and regionalization processes; institutional base for economic structuring of the regions.

The European Union, like the European market, is an example of a regional centralized model of development with a formed series of mega-regional contradictions [Lukianenko 2007, p. 32]. The main factors determining regional equilibrium (or imbalance) in the EU and in some member countries of this union are the following: peculiarities of modern regionalization of the global market, the complication of “globalism-regionalism” interrelation, development of a new model of spatial architectonics of the global market; functional regionalization of the modern European economic environment. Actually, there are three types of regional economic systems in the EU: a) formal, unified; b) functional (concentrated around a focus center, that is, a big company, a trade center, a research center); c) perceptual (determined by people’s attitudes towards territories). Four multifunctional centers have been formed within the European territory, whose economies are described through diversified structures, namely: “Big London”, “Amsterdam-Rotterdam” region, “Big Frankfurt with adjacent territories”, “Big Milan” [Hladii 2006, p. 320].

The structure of the economy and structural policy of the regions are affected by such contradictions of economic globalization as irregularity, asynchronality,

Modernization of regional structural policy... 171 and disproportionality. Practically all asymmetries of the development that are available in the conditions of the expansion of the Euro-Union pertain to Euro-centrism as a modern integration process [Lukianenko 2007, p. 32].

The peculiarity of the regional structural policy of the EU and the selection of the mechanisms for its implementation is also effected by the chosen models of regional development, in particular: the model of functional regional development (Sweden, Ireland, Norway, Finland, the Netherlands); system of national level planning with clearly structured operational plans; creation of regional development strategies; model of regional approach to economic development (Slovakia); orientation at financial instruments (structural and other funds). The EU has created special financial institutes, Structural Funds and the Common Structural Fund. The countries of Central and Eastern Europe were provided with funds within the PHARE and Interreg II Programs.

The definition of a regional policy aimed at the promotion of socio-economic convergence of countries and regions, leveling of territorial disparities through supporting uncompetitive regions is crucial for economic structuring. Among the priorities there are the following: promoting the structural transformation and development of depressed regions (GDP per capita in recent years < 75% average – Greece, Ireland, Eastern regions of Germany, etc.); providing financial assistance to the regions where a stagnant industry is observed; combating long-term unemployment; employment support initiatives; financing of agricultural areas, and accelerating the restructuring of agriculture; assistance to under-populated regions, where the population density does not exceed 8 people per 1 km2 (Sweden, Finland); differentiation decrease in levels of economic development of the new EU member countries. In 2007–2013, the EU regional policy was budgeted with 348 billion EUR, including 278 billion EUR for the structural funds and 70 billion EUR for the Cohesion Fund. However, researchers are paying attention to the lack of flexibility of these financial institutions. The developed mechanisms for financing the EU regional policy include (TACIS 1996–2006, EU – 2.4 billion EUR, SHS – 90 million EUR, ENPI – 2007–2010 – 295 million EUR, 2010–2013, Eastern Partnership – 600 million EUR) [Mikula, Tolkovanov 2010, p. 8]

A certain effect of the structural adjustment of regional economies in Europe has been provided through cross-border cooperation, in particular, the development of Euro-regions. Such countries as Poland, the Czech Republic and Hungary, unlike Ukraine, have been directly bordering the EU since the 1970s and were provided with a significant amount of foreign direct investment and funds for cross-border cooperation.

The main challenges that exacerbate the problem of structural adjustment of the economy in Ukraine are the following: increasing competition for access to all resources, especially energy; Ukraine’s lagging behind other European countries in terms of quality of life, level of investment attractiveness, development of

172 Alla Melnyk

innovative environment; growth of disparities between regions; creation of a potential strain on Ukrainian borders through the formation of economic growth centers by neighboring states, leading to the outflow of labor, intellectual and other resources from the border regions; the growth of asymmetry regions, including the border ones. From the standpoint of the modern European Union, Ukraine looks like a typical “border country” where systemic reforms lag behind neighboring Poland, according to economist estimations by 7–8 years [Chuzhikov 2007, p. 87].

Based on the indicator evaluation of gross regional product, we can say that in Ukraine it is heavily differentiated by regions. The differences in its maximum and minimum parameters in 2008 were 13.3 times (in the Donetsk region – 117.646 million UAH, and in the Chernivtsi region – 8833 million UAH, respectively). In 2009–2010, against the background of the overall dynamics of the GRP decrease throughout the country (by about 15% in 2009 compared to 2008), these differences increased by 13.8 times [Osadnyk 2011]. The significant inter-regional differentiation is illustrated by the gross regional product per capita.

The level of structural imbalance in regional economies is described by the following factors: mismatch of the regional structural contribution into socio-economic performance of Ukraine in the natural-material part of their economic potential; certain monofunctionality of regional economies; technological conservatism and asymmetry of technological development; uneven concentration of labor capacity, etc. The post-transformation stage of regional development is characterized by a deepening of the structural deformations in their economies. Characteristic features of this trend include: uneven spatial concentration of business, the growth of entrepreneurial activity in the “center” at the expense of the periphery; deepening of imbalance between demand and supply of the workforce; deepening of the reproduction proportions distortion; lack of significant changes in the development of depressed regions [Melnyk 2011, p. 62].

The industrial and technological potential is powerfully shown in the Kyiv, Donetsk, Kharkiv, Dnipropetrovsk, Zaporizhzhia and Lviv regions. The share of the three regions with the highest rated social and economic development (the city of Kyiv, Donetsk, Dnipropetrovsk regions) is more than 42% of the total gross regional product. Low-technology industries (share in the structure of production is 49–53%) are concentrated in the Donetsk, Luhansk, Zaporizhzhia, and Lviv regions, medium-low-tech (40%) – in almost all areas (except Zhytomyr, Zakarpattia, Ivano-Frankivsk, Kherson, Chernivtsi, Chernihiv); medium-high (6–8%) – Kyiv, Kharkiv, Lviv regions; high-tech (1–3%) – Kyiv, Kharkiv, and Lviv regions. Also other regional imbalances are still present [Melnyk 2012, pp. 115–137].

Institutionally the prerequisites and factors of regional policy in Ukraine are presented in the following way. The formation of structural regional policy in Ukraine was influenced by such factors at the European level as: implementation of the process of European regionalization; formation and implementation of

Modernization of regional structural policy... 173 communitarian regional policy of the EU directed at the support of the depressed, and restructuring of, the old industrial regions meeting the requirements of Maastricht Agreement; intensification of the processes of regional economic management and expanding the responsibilities of local authorities (according to the European Charter of Local Self-government); the EU’s enlargement on the account of the countries of Central and Eastern Europe; intensification of interregional and cross-border cooperation.

Stating the regional imbalances and assessing Ukraine’s place in the mega-regional economic environment, we can indicate the risks that may negatively affect its EU integration: 1) geo-economic risks caused by polarization of economic growth poles (western and eastern borders of Ukraine), which can create a bipolar environment that under favorable conditions may provide a synergistic effect of economic interaction of the East and West, and under unfavorable conditions may turn the country into a zone of competitive geopolitical struggle [Chuzhikov 2007, p. 87]; 2) economic risks which manifest themselves even today creating the problem of the choice of alternatives, either to choose an open competition of Ukrainian goods and services in the European market or focus on the CIS markets; 3) energy risks associated with the need to review the branch-wise and sectoral structure of regional economy, and promotion of the development of the economic energy sector; 4) demographic risks associated with the outflow of labor resources from the periphery to the center, the intensification of legal and illegal migration.

3. Mechanisms of regional structural policy and ways of their modernization in Ukraine

Framework conditions of structural changes in the regions are identified by the mechanisms of the EU regional policy, including: targeted support of structural funds; provision of financial resources and financial assistance; promotion of enterprise restructuring and innovative development; granting investment premiums for the construction of facilities that improve the economic structure, i.e. the provision of soft loans for investment and the guarantees for loans, development of targeted programs of national, regional, and local significance; the introduction of unique social standards; government guarantees for commercial bank loans; encouragement of the deployment of new enterprises in the overcrowded cities and regions. Most of these mechanisms are used in the structuring of the regional economy in Ukraine. Some of them, like the directions of modernization, are described in the State Regional Development Strategy to 2015 [Liga.net 2013]: strategic programming and planning of regional development, implementation of agreements concluded between the government and local authorities, the mechanism implementation of concentration and

174 Alla Melnyk

optimization of state resources flows, optimization of the network of special economic zones and territories of priority development, infrastructure development of regional and interregional markets; strengthening the role of local government to create a favorable investment climate; improvement of the transfers allocation assigned from the state budget; funding the priority actions of state targeted programs. A series of measures has been taken to stimulate the depressed areas.

The analysis revealed the following shortcomings and problems in the application of the regional structural policy in Ukraine:

1. The mechanism of choosing priorities. The State Regional Development Strategy for the period of up to 2015 institutionalized the priorities of state regional policy in respect of individual regions, and defined the mechanisms of their financial support. The lack of trends in reducing regional disparities is associated with the imperfect methods for determining priorities. There are two approaches to this: the first consists in eliminating disparities through government support, and subsidizing enterprises of various industries in depressed regions; the second (upgraded) is the efficient use of the regions’ capacities, an independent determination of their priorities in the context of their business opportunities and networking with other regions [Marcou, Hildreth 2009]. Ukraine tends to the first option, because the agreements on the regional development are signed between the Government and local authorities in accordance with the national priorities of the development of regions identified in Appendix 1 of [Marcou, Hildreth 2009].

2. Mechanisms for financing structural changes in the regions. In practice, in Ukraine, they are underdeveloped. In the EU countries the following funding instruments are used: investment incentives and transfers to municipalities; subsidies provided to companies for initial investment; loans to municipalities for joint financing of economic infrastructure development; loans and guarantees provided to the companies engaged in agricultural business; investments in specific projects of regional significance; the state capital transfers to municipalities for collective investment into the regional development projects. The underdevelopment of the funding mechanisms of regional structural changes in Ukraine is caused by the following factors: poor budget share (low percentage) of the local budgets assigned for the development of regions; poor targeting of banking system of credits for the economy; imperfect mechanisms for the management of communal property.

3. Strategic mechanism. Despite the elaboration of regional development strategies in Ukraine, most of them lack a program of economic restructuring. This is caused by the absence of the active program of economic restructuring in Ukraine, as well as some caution in choosing a “breakthrough strategy”. This situation creates an environment for the conservation of technological, reproductive, and sectoral imbalances in the regions.

Modernization of regional structural policy... 175

4. Mechanisms for innovation in the structural policy of the regions. The European innovation tools that are aimed at improving the equalization of individual EU economies are reflected in the table of results of European innovations (Europe Innovation Scoreboard). Based on the method of creating EIS, the following five types of mechanisms can be distinguished: educational, financial, motivational, economic and institutional. Educational mechanisms are aimed at creating human capital; financial mechanisms follow the formation of knowledge, the development of the economy based on knowledge; motivation mechanisms are aimed at stimulating the innovation in the form of technological, organizational and managerial innovations; economic are for the development of industry and services, which require medium and high technology development; and mainly institutional concern the protection of intellectual property. According to T. Bal-Woźniak’s estimates, the synthetic rate of innovation in the EU25 is 0.42. The leader is Sweden (0.72), the rate of Poland is 0.23 [Bal-Woźniak 2007, p. 321]. Ukraine does not have these estimates for regions. This is connected not only with the lack of an adequate statistical base, but also with the absence of decisive steps towards the innovative model of development. In this regard, there remains a raw vector of development inherent in most regions.

5. The mechanism of reorientation of investment in priority sectors of the economy is most common in structural regional policy. It provides for the investment promotion in the priority economic activities, improvement of the investment climate in the regions. Despite the fact that such mechanism was initiated in Ukraine, investments, including foreign, are concentrated in the industries with rapid turnover (financial sector, trade, real estate transactions), and in economically powerful regions, like Kyiv, Autonomous Republic of Crimea, because of the competitive sectors of the economy concentration there, and their good infrastructure.

6. The mechanism of interregional, including cross-border cooperation. 19 out of 25 regions of Ukraine have national borders. The EU-countries practice corroborated the efficiency of the Euroregions to improve the structuring of the regional economies which joined them. In Ukraine there are seven Euroregions, namely: Buh, Carpathian Euroregion, Lower Danube, Upper Prut, Dnipro, Slobozhanshchyna, Yaroslavna, initiated by the Council of Europe – the Black Sea region [Mikula, Tolkovanov 2010, p. 9]. The initiated mechanisms that will contribute to the structural changes of the areas joined with the Euroregions, including financial support for the projects and programs of cross-border cooperation, the formation and development of cross-border clusters. Despite the fact that four Euroregions include the areas of the European EU member countries, the asymmetry remains in the development of Ukrainian and Polish regions, particularly those whose participation in these regional organizations is insufficiently effective to improve the structure of the regional economies.

176 Alla Melnyk

However, the intensification of economic cooperation in the border areas and in the Euroregions should be considered as a sectoral integration of Ukraine into the EU.

4. Conclusions

The improvement of the regional economic structure of Ukraine is impossible without radical institutional decisions. The current mechanisms of Ukraine’s regional structural policy present a number of shortcomings. As far as the restructuring is impossible in the short term, it should be viewed within the framework of the State and regional development strategies and should be based on the multi-criterion principle. With respect to some regions within their development strategies, there should be elaborated a selective program of structural adjustment of the economy. The flexible use of the European mechanisms of regional structural policy is possible by following the course of decentralized management that is involved in the administrative and territorial reform.

References

[Bal-Woźniak T.] Баль-Вожняк Т., Інструменти інноваційності в процесах зближення рівнів розвитку країн ЄС, [in:] Д. Лук’яненко, В. Чужиков (eds.), Спільний європейський економічний простір: гармонізація мегарегіональних суперечностей, КНЕУ, Київ 2007, pp. 90–111.

[Chuzhikov V.] Чужиков В., Україна в мегарегіональній моделі «Європа концентричних кіл», [in:] Д. Лук’яненко, В. Чужиков (eds.), Спільний європейський економічний простір: гармонізація мегарегіональних суперечностей, КНЕУ, Київ 2007, pp. 23–31.

[Hladii I.] Гладій І., Регіоналізація світового ринку: Євроінтеграційний аспект, Економічна думка, Тернопіль 2006.

Jones R., The Politics and Economics of the European Union, Stanford University Press 2001, pp. 40–45. [Liga.net] Деловые новости Ліга.net; http://www.liga.kiev.ua. [Lukianenko D.] Лук’яненко Д., Суперечності та асиметрії глобалізації в євроінтеграційному

контексті, [in:] Д. Лук’яненко, В. Чужиков (eds.), Спільний європейський економічний простір: гармонізація мегарегіональних суперечностей, КНЕУ, Київ 2007, pp. 31–47.

[Marcou G., Hildreth P.] Марку Ж., Хілдріт П., Консолідований експертний звіт щодо нової концепції державної регіональної політики, [in:] В. Куйбіда (ed.), Нова державна регіональна політика в Україні, Крамор, Київ 2009.

[Melnyk A.] Мельник А., Структурні трансформації національної економіки як виклик модернізації державного управління, [in:] О.Амоша, С.Аптекар та ін. (eds.)., Структурні реформи економіки: світовий досвід, інструменти, стратегії для України, Економічна думка ТНЕУ, Тернопіль 2011, pp. 57–68.

[Melnyk A.] Мельник А., Структурні дисбаланси розвитку економіки України, Журнал європейської економіки 2012, №1 (березень), pp. 115–137.

[Mikula N., Tolkovanov V.] Мікула Н., Толкованов В., Сучасний стан та перспективи розвитку транскордонного співробітництва в Україні (основні положення проекту), Регіональна економіка 2010, №3, pp. 7–20.

Modernization of regional structural policy... 177 [North D.] Норт Д., Інституції, інституційна зміна та функціонування економіки, Основи,

Київ 2000. [Osadnyk O.] Осадник О., Статистичний щорічник України за 2010 рік, ТОВ «Август Трейд»,

Київ 2011. [Pappa V.] Паппа В., Структурна трансформація економіки України у контексті євроінтеграційних

процесів, Регіональна економіка 2008, №1, pp. 23–31. Puchala D., Institutionalism, intergovernmentalism and European integration, Journal of Common

Market Studies 1993, vol. 37(2), pp. 317–331.

MODERNIZACJA MECHANIZMÓW REGIONALNEJ POLITYKI STRUKTURALNEJ UKRAINY W PROCESIE INTEGRACJI Z UNIĄ EUROPEJSKĄ

Streszczenie: Opierając się na teorii modernizacji, podniesiono kwestię wdrożenia na Ukrainie mechanizmów polityki regionalnej UE i jej składowej – regionalnej polityki strukturalnej. Na podstawie analizy porównawczej przedstawiono założenia i czynniki determinujące politykę strukturalną UE i Ukrainy. Zaznaczono ryzyka (geoekonomiczne, gospodarcze, energetyczne, demograficzne), które są związane ze strukturalnymi deformacjami i mogą negatywnie wpły-nąć na integrację Ukrainy z UE. Oceniono mechanizmy regionalnej polityki strukturalnej i określono problemy ich modernizacji na Ukrainie. We wnioskach zaznaczono potrzebę radykal-nych rozwiązań instytucjonalnych na Ukrainie, m.in. opracowane selektywnych programów strukturalnej korekcji ekonomii regionów.

Słowa kluczowe: polityka strukturalna, polityka regionalna Unii Europejskiej, mechanizmy polityki strukturalnej.

Part 3

Selected problems of Polish regions

functioning and development



Dariusz Głuszczuk Wrocław University of Economics

BARRIERS TO INNOVATION ACTIVITIES IN INDUSTRIAL ENTERPRISES BY POLISH REGIONS IN 2004–2006 AND 2008–2010

Summary: Barriers to innovation activities in industrial enterprises are identified based on the Oslo Manual [2005] guidelines. The assessment of these solutions, and especially the level of their reference to public statistics, constitutes the theoretical part of this paper, while its empirical discussion concentrates on specifying the most significant barriers to innova-tion in industry referring to Polish regions in the periods of 2004–2006 and 2008–2010. The observed shortcomings (methodological, empirical) may become the reason for improving the PNT-02 report on innovation in industry, as well as a stimulus for undertaking indispen-sable activities aimed at weakening barriers hampering innovation activities in industrial en-terprises.

Keywords: Oslo Manual, barriers to innovation activities.

1. Introduction

The objective of regional innovation policy is to increase the number and stimulate the efficiency of innovation processes. The effective implementation of its goals is influenced by an adequately created and fostered innovation focused climate by means of, among others, the identification and weakening of barriers hampering innovation oriented activities initiated by industrial enterprises. Does this situation occur in Polish regions? Are adequate statistical data collected? Do the disturbances in creating innovation and implementing capacity, recognized on their basis, become the focus of regional policy? The answers to the above questions constitute the core (goal) of this discussion.

2. Barriers to innovation activities – Oslo Manual guidelines

The Oslo Manual (2005) defines the rules for statistical materials collecting and interpreting with reference to broadly understood innovation at an enterprise level.

182 Dariusz Głuszczuk

They include “guidelines for collecting data on the general process of innovation (for example, innovation activities, expenditures and linkages), the implementation of significant changes in the firm (i.e. innovations), the factors that influence innovation activities, and the outcomes of innovation” [Oslo Manual… 2005, p. 15]. The abundance of such problems results in the fact that relatively little attention is paid to factors hampering innovation activities. In general, they refer to obstacles of a financial, market and institutional nature and also barriers related to knowledge and other reasons for abandoning innovation processes (see Table 1). Difficulties specified in this classification do not always refer to all types of innovation. For example, the missing infrastructure does not constitute any barrier for organizational innovation, while problems in finding marketing partnerships, limit innovation only in this particular nature. The full spectrum of barriers for enterprise innovation, arranged in this way, may be identified by conducting due surveys in companies performing innovation activities, as well as those which are not involved in such projects. This standpoint is of significant importance, since there may occur certain reasons for totally abandoning innovation development and implementation, as well as reasons for slowing them down. Additionally, the situation cannot be disregarded when the actual effects of innovation activities may turn out differently from the expected . The different consequences resulting from innovation barriers explicitly indicate that factors which constitute barriers in developing and implementing new or significantly improved solutions present various overall impacts. Their weight (importance) has to be specified during surveys in order to recognize properly not only the set itself, but also the scale of problems characteristic for post-innovation enterprises [Oslo Manual... 2005, p. 112]. An open issue here is the frequency of the conducted surveys (Oslo Manual 2005 guidelines – every two years and if the economic situation does not allow it – once in three or four years, however, it is recommended to perform them every year [Oslo Manual... 2005, p. 129]).

The presented Oslo Manual guidelines are characterized by a relatively flexible framework. For example, the problem of particular innovation barriers’ weight (importance) may be approached in a different way. The above arrangement of due attributes may represent the actual measure in this matter, since they quantify the intensity of the analysed properties presented in a descriptive manner (e.g. 1, 2 and 3 referring respectively to: high, medium and low level of innovation activity hampered by a given factor). Another, and even better, solution seems to be the correlation of underlying reasons (factors responsible for barriers) with their potential effects. Among them the following may be listed: abandoning the innovation project in its conceptual or implementation phase, its realization postponement or only partial implementation. The scale of negative results, defined in this way, should be referred to the set of the most important, i.e. the most frequently occurring innovation barriers. In this respect the Oslo Manual guidelines seem correct, however, in some cases incomplete. This is particularly visible in the

Barriers to innovation activities... 183 area of factors responsible for financial (cost oriented) innovation rigidities. In this matter the absence of external financing sources is exclusively associated with obtaining funds within the framework of venture capital and public aid, disregarding at the same time, the availability of bank credits, loans from natural and legal persons, public debt, etc.

Table 1. Factors hampering innovation activities

Relevant for: Product

innovationsProcess

innovationsOrganizational

innovations Marketing innovations

Cost factors: Excessive perceived risks * * * * Cost too high * * * * Lack of funds within the enterprise * * * * Lack of finance from sources outside the enterprise: • Venture capital * * * * • Public sources of funding * * * *

Knowledge factors: Innovation potential (R&D, design, etc.) insufficient * * * Lack of qualified personnel: • Within the enterprise * * * • In the labour market * * * Lack of information on technology * * Lack of information on markets * * Deficiencies in the availability of external services * * * * Difficulty in finding co-operation partners for: • Product or process development * * • Marketing partnerships * Organizational rigidities within the enterprise: • Attitude of personnel towards change * * * * • Attitude of managers towards change * * * * • Managerial structure of enterprise * * * * Inability to devote staff to innovation activity due to production requirements * *

Market factors: Uncertain demand for innovative goods or services * * Potential market dominated by established enterprises * *

Institutional factors: Lack of infrastructure * * * Weakness of property rights * * Legislation, regulations, standards, taxation * * *

Other reasons for not innovating: No need to innovate due to earlier innovations * * * * No need because of lack of demand for innovations * *

Source: [Oslo Manual… 2005, p. 113].


The Oslo Manual’s shortcomings should be eliminated by, among others,

considering the needs of statistical systems users. In this perspective – for example – a set of collected information may be developed regarding factors functioning as obstacles for innovation activities and it is also possible to narrow down the observed object (e.g. expand the set of innovation barriers and stop assigning them to substantive innovation types). These changes, however, have to be performed based on international consensus (statistical data comparability). Such a philosophy is followed by the Central Statistical Office (CSO).

3. Barriers to innovation activities in industrial enterprises – CSO statistics

A statistical picture of innovative activities carried out by enterprises was prepared based on reports about innovations in industry (PNT-02). Their compliance with international standards is guaranteed by the questionnaire prepared by the European Union and OECD experts (the Harmonized Survey Questionnaire). These studies are conducted within the framework of the Community Innovation Survey programme focused on the assessment of the scope and nature of the innovation activities carried out by enterprises representing different economy sectors in EU and EFTA countries [Explaining notes... 2008–2010, p. 12]. The identification of the factors functioning as barriers to innovation activities constitutes, among others, the significant part of the discussed problems (see Table 2).

Table 2. Innovation barriers in PNT-02 statistical report*

Factors hampering innovation activities Impact level lack of funds in an enterprise or in a group of enterprises lack of funds from external sources

Cost factors

innovation costs too high absence of qualified personnel lack of information regarding technology missing information about markets

Knowledge factors

problems in finding cooperation partners for innovation projects market dominated by established enterprises Market

factors uncertain demand for innovative (new) products no need to perform innovation activities due to innovations implemented in previous years

Other factors

absence of demand for innovations

1 – high 2 – medium 3 – low 4 – insignificant

* Data on innovation in industry [PNT-02] are collected annually, however, not in relation to barriers for innovation activities. Information about it were collected in 2007 and 2011 (see http://form.stat.gov.pl /formularze).

Source: own elaboration based on [PNT-02… 2004–2006, 2008–2010].

Barriers to innovation activities... 185

The accepted solutions regarding survey registration of innovation activities barriers are worth evaluating against the background of the Oslo Manual 2005 guidelines. In such a perspective, attention has to be paid to the fact that the scope of collected information, within the framework of the PNT-02 report, is in many respects more limited than it should be in accordance with the formal recommendations. This report from (see Tables 1 and 2): – ceases correlating innovation barriers with innovation types, – disregards institutional factors (absence of infrastructure, weakness of property

rights, legislation, legal regulations, standards, taxation) by eliminating them from innovation barriers for companies,

– frequently reduces types of obstacles which may occur in a certain group of factors hampering innovation activities (e.g. factors referring to knowledge do not cover: organizational rigidity inside an enterprise, insufficient innovation potential, etc.),

– aggregates Oslo Manual items (e.g. lack of external funds without distinguishing barriers related to venture capital availability and sources of public funds). The reduced set of factors recognized as barriers for innovation activities

influences adversely the accepted method for their impact intensity assessment. Its measure is represented by the arrangement of attributes which define the impact level of particular barriers as high, medium, low or insignificant (respectively: 1, 2, 3 and 4). In the perspective of such Oslo Manual guidelines interpretation, the possibility for defining the consequences of the occurrence of certain barriers disappears, while the need for it is signalled by, at least, the 2007 report form (PNT-02 for the period of 2004–2006). In its structure the identification of innovation activities barriers, applying the above presented scale of assessment, is preceded by the following question: “Was there at least one project, in the period of 2004-2006, related to innovation which was not at all initiated (abandoned in the phase of concept preparation), interrupted while in progress (stopped after its initiation) or extensively delayed?” [PNT-02... 2004–2006, p. 4]. Including this issue in the PNT-02 report does not solve the problem, since there is no possibility to correlate an answer to the presented question and the level of innovation activity reduction (high, medium or low). A better solution seems, as has already been mentioned, to refer to factors hampering innovation activities to the effects they may bring about (e.g. abandoning a project in its preparation phase, etc.).

The lack of precision in the Oslo Manual is related not only to the flexibility of solutions (e.g. “It is recommended to collect data on barriers to innovation activity and their relative importance for the period under review” [Oslo Manual… 2005, p. 112], but also to many underlying variants of possible solutions. The guidelines regulating the frequency of surveys’ organization and conducting are an excellent example in this matter (once, twice, three or four times a year). The CSO,


following these guidelines, decided to collect information about innovations in enterprises once a year, however, not in full. The factors constituting barriers to innovation activities are identified once in four years. The latest surveys of this type were performed in 2007 and 2011 and covered 3-year periods (2004–2006 and 2008–2010). Such periodicity does not seem to correlate with the needs of statistical systems users and especially the entities involved in regional innovation policy.

The listed shortcomings of the statistical data collecting system, regarding barriers to innovation activities in industrial enterprises, narrow down the area of the conducted analyses, however, they allow for putting forward certain general observations.

4. Barriers to innovation activities in industrial enterprises in Polish regions

Barriers to innovation activities in industrial enterprises are diagnosed based on the survey questionnaire prepared by the European Union and OECD experts. They take the form of classical questionnaire questions with a prepared set of answers. The PNT-02 form lists eleven barriers arranged in four groups which may to a high, medium or low extent reduce innovation activities in enterprises, or do not influence it at all. In the accepted scale of assessing the identification of the most important innovation activity barriers should be associated with the significant percentage of respondents qualifying the importance of a given factor as “high” in the overall number of industrial enterprises (see Table 3). Additionally, while presenting the general conclusions in the spatial system, attention should be paid to the minimal percentage of such indications in 16 Polish regions (voivodships), since such a minimum means that the problem refers to all regions in, at least, such a scale. This perspective allows for the following observations: – cost factors represent a major barrier for innovation activities in industrial

enterprises, mainly due to extensively high innovation costs. In the period of 2004–2006, the minimal percentage of indications pointing to the high level of this factor’s influence amounted to 30.4% (Podkarpackie region), which was most probably related to the absence of funds in enterprises or their groups (min. 28.3%; Lubuskie region), or the unavailability of these funds from external sources (min. 22.6%; Pomorskie region). These problems have slightly intensified, which raises concerns, in the subsequent reporting period (2008–2010) when the minimum percentage of indications towards the high importance of the listed factors presented the respective levels: 31.5% (Kujawsko-Pomorskie region), 28.8% (Małopolskie region) and 24.5% (Kujawsko-Pomorskie region);

– market factors reduce the capacity of industrial enterprises towards creating and implementing innovation to a much lesser extent than in the case of cost barriers, even though they are ranked as second among the obstacles hampering

Tab

le 3

. Fac

tors

ham

peri

ng in

nova

tion

act

ivit

ies

in in

dust

rial

ent

erpr

ises

by

voiv

odsh

ips

duri

ng 2

004–

2006

and

200

8–20

10

Cos

t fac

tors

K

now

ledg

e fa

ctor

s M

arke

t fac

tors

O

ther

fact

ors

lack

of

fund

s w

ithin

th

e en

terp

rise

or

gro

up

lack

of

fina

nce

from

sou

rces

ou

tsid

e

your

en

terp

rise

inno

vatio

n co

sts

to

o hi

gh

lack

of

qua

lifie

d pe

rson

nel

lack

of

in

form

atio

n on

te

chno

logy

lack

of

in

form

atio

n on

mar

kets

diff

icul

ty

in fi

ndin

g co

oper

atio

n pa

rtne

rs

for

inno

vatio

n

mar

ket

dom

inat

ed

by

esta

blis

hed

ente

rpri

ses

unce

rtai

n de

man

d

for

inno

vativ

e go

ods

or

ser

vice

s

no n

eed

due

to

pri

or

inno

vatio

ns

no n

eed

beca

use

of

no

dem

and

fo

r in

nova

tions

en

terp

rise

s w

hich

mar

ked

“hig

h” d

egre

e of

impo

rtan

ce re

leva

nt fa

ctor

as

% o

f tot

al e

nter

pris

es

Spec

ific

atio

n

2004–2006

2008–2010

2004–2006

2008–2010

2004–2006

2008-–2010

2004–2006

2008–2010

2004–2006

2008–2010

2004–2006

2008-–2010

2004–2006

2008–2010

2004–2006

2008–2010

2004–2006

2008–2010

2004–2006

2008–2010

2004–2006

2008–2010

Pola

nd

34.7

31

.8

27.7

26

.9

34.5

34.2

10.7

14.6

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innovation activities. In the period of 2004–2006, the minimum percentage of indications towards their high importance ranged from 14.2% (uncertain demand for innovations/new/ products) up to 15% (a market covered by dominating enterprises) and was registered in the Pomorskie region. This situation did not change in the period of 2008–2010, even though the thresholds of these indications did change (uncertain demand for innovations/new/products – 20.0% in the Wielkopolskie region, the market covered by dominating enterprises – 19.2% in the Kujawsko-Pomorskie region);

– barriers related to knowledge and other obstacles hampering innovation activities did not present major problems in the system of Polish regions. The observed irregularities are confirmed by data for all the industrial

enterprises (see Poland – Table 3), which explicitly indicate that the fundamental barriers for innovative activities in the periods 2004–2006 and 2008–2010 were caused by difficulties related to cost oriented factors, followed by the market ones. It is also worth emphasizing that slight changes in the percentage of indications towards these particular factors in the two subsequent reporting periods reveal the passive or ineffective nature of innovation policy with regard to these barriers.

5. Conclusions

Barriers to innovation activities in industrial enterprises are identified based on Oslo Manual guidelines, however, to a much lesser extent (the PNT-02 Report on innovation in industry), which deepens the shortcomings of their prototype. The collected data do not seem to meet the expectations of statistical systems users and especially the entities of regional innovation policy. The low effectiveness of their operations cannot, however, be excused by the shortcomings in the Harmonized Survey Questionnaire. Data for the periods 2004–2006 and 2008–2010 invariably show that cost factors and market factors are responsible for the most important barriers to innovation activities in Polish regions. Such a situation will not change in the reporting period to follow unless adequate action is undertaken.

References

Forms, http://form.stat.gov.pl/formularze. Innovation Activities of Enterprises in 2004–2006, Central Statistical Office, Warsaw 2008. Innovation Activities of Enterprises in 2008–2010, Central Statistical Office – Statistical Office in

Szczecin, Warsaw 2012. Explaining notes to PNT-02 form – Report on innovation in industry in the period of 2008–2010. Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, 3rd Edition,

OECD/European Communities 2005. PNT-02 – Report on innovation in industry in the period of 2004–2006 and 2008–2010.

Barriers to innovation activities... 189

PRZESZKODY DZIAŁALNOŚCI INNOWACYJNEJ PRZEDSIĘBIORSTW PRZEMYSŁOWYCH WEDŁUG REGIONÓW POLSKI W LATACH 2004–2006 I 2008–2010

Streszczenie: Przeszkody działalności innowacyjnej przedsiębiorstw przemysłowych są identyfikowane w oparciu o zalecenia Oslo Manual [2005]. Ocena tych rozwiązań, a zwłaszcza stopnia ich przełożenia na statystykę publiczną, wypełnia teoretyczną część arty-kułu. Jego empiryczne rozważania koncentrują się na ustaleniu najistotniejszych barier in-nowacyjności dla przemysłu w polskich regionach w latach 2004–2006 i 2008–2010. Za-uważone nieprawidłowości (metodyczne, empiryczne) mogą być przyczynkiem do dopra-cowania sprawozdania PNT-02 o innowacjach w przemyśle, a także impulsem do podjęcia niezbędnych działań na rzecz osłabienia barier działalności innowacyjnej przedsiębiorstw przemysłowych.

Słowa kluczowe: Oslo Manual, bariery działalności innowacyjnej.



Piotr Hajduga Wrocław University of Economics

SPECIAL ECONOMIC ZONES AS STIMULI TO REGIONAL DEVELOPMENT DURING A CRISIS

Summary: This article draws special attention to the effects of the operation of special economic zones located within Poland in the period from 2008, that is the year considered as the beginning of the global financial and economic crisis. It has been also assumed that it is important to verify the thesis about the effectiveness of special economic zones as the tools of social and economic development, especially in the context of decreasing unemployment.

Keywords: special economic zone, financial and economic crisis, effects of operation of special economic zones in Poland.

1. Introduction

The modern world is grappling with various economic problems whose causes have not yet been fully defined. The researchers are engaged in a dispute about the ways of responding to them. To affect them actively or rather leave them to the free market? However, such a long existing division among economists acquires another meaning, especially when one becomes aware that the mechanisms and institutions that appear in the global economy necessitate a different reaction than previously. It seems that civilisation changes caused by huge social transformations do have an impact on the methods of effective influence. In other words, it is no longer possible to apply the same tools that used to be widespread and effective because the circumstances and environment conditions have changed [Radek 2010, p. 177].

In such a situation, each country tries to find some specific institutional approaches and economic and legal conditions allowing for the growth of competitiveness of its economy. With the use of certain determined instruments of the market economy, a country may stimulate positive processes enforcing such competitiveness and limit the negative consequences at the same time. The tools which are decisive for the economic development include the solutions existing in special economic zones (SEZ). Such zones, as well as the areas with a similar

Special economic zones as stimuli... 191 intended use, have been established in many countries since other methods of encouraging investments were not effective enough. Practice shows that such solutions are still a relatively effective instrument for encouraging investments. After all, if they had proven ineffective, they simply would be no longer applied [Radek 2010, p. 177].

The aim of this article is to analyse the effects of operation of special economic zones in Poland from 2008, that is the year which is considered by many researchers as the beginning of the world financial and economic crisis, as well as their influence on the economic activation of regions. The numerical data is quoted from reports by the Ministry of Economy.

2. Establishment and development of special economic zones in Poland

Zones with preferential conditions for business activity have been a permanent element of contemporary reality for decades (worldwide), and for several years in Poland. A special economic zone in legal terms is an administratively separate part of the country’s territory, within which a specific system of legal norms applies. “Zone” means that that area is an enclave within the State territory. Determining a zone as “special” should be associated with the fact of a particular “special” regulation of it by provisions of law. The condition of “economic” means that the application of the solution regards economic issues. The legal norms – introduced by the act establishing a zone – are to protect, i.e. allow or facilitate the implementation of specific tasks and economic goals. The establishment of zones with preferential conditions for business activity is a form of the so-called indirect state intervention in the economy, that is such an intervention that involves a system of tax exemptions and preferences for the entities operating within a given zone [Waligórski 1997, p. 16].

The business activity within the area with investment privileges is subject to administrative and legal restrictions [Zbyd 1997, p. 273]. The Act of October 20, 1994 on special economic zones, defines the special economic zone as “separated according to the provisions of the Act, uninhabited part of territory of the Republic of Poland, where an economic activity may be conducted under the terms and conditions of the Act” [Ustawa z dnia 20 października 1994…, Article 2]. This means that the entities located within the zones, and satisfying the conditions in terms of the amounts of capital expenditure and/or created new jobs, may benefit from state aid in the form of exemption from income tax (CIT – corporate or PIT – personal income tax – depending on the legal form of the conducted business activity) and property tax (to be decided by the municipal authority).

The main idea of creating zones with preferential conditions for business activity in Poland, was striving to alleviate the effects of structural unemployment

192 Piotr Hajduga

in selected regions of the country by targeting new investments there, with a package of financial incentives.

During the establishment of special economic zones in Poland, it was assumed that they will serve both for the implementation of the aim of accelerating the economic development of part of the national territory, in particular by [Ustawa z dnia 20 października 1994…, Article 3]: – development of certain business activities; – development of new technological solutions and their use in the national

economy; – development of exports; – increasing the competitiveness of manufactured products and provided

services; – development of existing industrial assets and economic infrastructure; – creation of new jobs; – development of unused natural resources, preserving the principles of

environmental sustainability. Such a formulation of goals for the areas with investment privileges suggests that

on the one hand, they should be a tool of industrial policy implementation in the scope of the development of certain industry sectors, transfer of modern technologies and pro-export production support, and on the other hand, a significant instrument of regional policy [Bazydło, Smętkowski 2000, pp. 35–36].

The general goals of creating special economic zones in Poland defined in the act are made more precise by the Council of Ministers in a regulation concerning the establishment of a given zone, and by the minister responsible for the economy in the regulation specifying the plan of its operation. Although the legislature has formulated several goals for creating zones with preferential conditions for business activity, in practice, however, with the deepening of uneven economic development, the foremost is the objective of combating unemployment – particularly in regions where unemployment is structural, but there are conditions allowing the acquisition of relevant investments. The first Polish experience shows that the establishment of individual zones was justified by the necessity of limiting structural unemployment and to prevent the further exploitation of that process, solving the problem of restructuring the local industries (especially protection against the negative, often unavoidable impact of restructuring), finalizing important long-term contracts of an economic and technical significance strategic for the State and the rational use of available resources within the zone and in the region [Lizińska, Kisiel 2008, pp. 13–14].

Polish special economic zones do not have any centuries-old traditions. The oldest of them were established little more than fifteen years ago, but their rapid development caused that they have had a significant impact on the regions in which they are based.

Special economic zones as stimuli... 193

The first SEZ established on September 5, 1995, was EURO-PARK Mielec based on the model of the Irish export processing zone in Shannon. The next two special economic zones were created a year later – the Katowice Zone was set up on June 18, 1996, and the Suwałki Zone on June 25. The year 1997 abounded in the establishment of privileged areas. In the period from April to October 1997, fourteen special economic zones were created: the Legnica, Łódź and Wałbrzych economic zones in the first half year, and the remaining eleven economic zones towards the end of the year, that is the Kostrzyn-Słubice, Słupsk, Tarnobrzeg, Starachowice, Tczew, Warmia and Mazury, Częstochowa, Żarnowiec, Kamienna Góra, Mazowsze (Technopark in Modlin), and Cracow (operating in a form of a technological park) economic zones [Hajduga 2005, p. 150]. In 2000, there were seventeen areas with special privileges throughout the country. Due to lack of investors’ interest, the Częstochowa zone was liquidated in March 2001; the same happened to the Mazowsze zone. In July 2001, the Tczew and Żarnowiec zones were merged and created the Pomeranian Zone. Such changes resulted in decreasing the number of zones in Poland to the present fourteen.

3. Effects of operation of special economic zones in Poland in the years 2008–2011

The analysis of the effectiveness of the operation of zones with preferential conditions for business activity and their influence on their environment is a very complex task. It is caused by a range of problems which preclude their synthetic assessment. The first group of problems is related to the sphere in which the research is conducted. The changes in the administrative division of the country seriously disrupt the possibility of the continuous aggregation of data. The next obstacle is the lack of adequate documentation that would evidence the occurrence of the regularities searched for. Therefore, a full analysis is not possible to complete and some of its elements may be based only on the immeasurable opinions on the occurrence of a given phenomenon. The next group of problems arises directly from the specificity of the researched object, that is a special economic zone. Its changeability in time and space results in numerous imperfections which lead to complications in the dynamic analysis of the phenomenon. On the one hand, we are not able to determine whether the transformations that have taken place in recent years result from the operation of the applied instrument or are only a consequence of time delays in “expenditures-effects” sequence which coincides with the solutions applied earlier [Broszkiewicz 2006]. The assessment of the significance and impact of zones with preferential conditions for business activity on regional development requires research in the scope of the investment processes in the sub-zones system. However, it is sometimes simply impossible to obtain complete and reliable information

194 Piotr Hajduga

concerning – for example – the value of invested capital or the level of employment in individual sub-zones.

In view of this argument, it seems justified to carry out a dynamic analysis concerning special economic zones located in Poland with the elements of a multi-dimensional comparative analysis. Also, in order to observe the diversity of zones, special attention has been paid to the basic indexes and ratios characterising each zone. The capital expenditure and employment have been also thoroughly analysed.

3.1. Capital expenditure

The costs of investments made in zones with preferential conditions for business activity were incurred by both domestic and foreign companies (see Table 1).

Table 1. Value of incurred capital expenditure in special economic zones in 2008–2011 (in current prices)

Zone Capital expenditure

(as at the end of the year, in PLN million) Dynamics of capital expenditure

(previous year = 100%) 2008 2009 2010 2011 2008 2009 2010 2011

Kamiennogórska 1 332.90 1 436.20 1551.10 1 667.20 109.6 107.8 108.0 107.5 Katowicka 13 843.70 16 025.30 16 869.60 18 154.60 117.7 115.8 105.3 107.6 Kostrzyńsko-Słubicka 3 125.10 3 332.70 3 786.30 4 215.50 127.5 106.6 113.6 111.3 Krakowska 1 243.10 1 564.10 1 655.70 1 773.80 121.2 125.8 105.9 107.1 Legnicka 4 024.00 4 257.60 4 568.80 4 889.00 111.0 105.8 107.3 107.0 Łódzka 5 801.10 7 163.80 8 184.80 9 033.10 148.9 123.5 114.3 110.4 Mielecka 3 781.90 4 177.10 4 690.30 5 097.00 121.5 110.4 112.3 108.7 Pomorska 3 701.80 5 910.10 6 727.40 7 298.90 139.8 159.7 113.8 108.5 Słupska 728.30 769.10 963.60 1 106.50 118.3 105.6 125.3 114.8 Starachowicka 980.20 1 260.20 1 528.90 1 621.00 132.5 128.6 121.3 106.0 Suwalska 1 341.40 1 376.50 1 474.90 1 596.70 134.0 102.6 107.1 108.3 Tarnobrzeska 4 733.00 5 459.40 6 081.40 6 792.90 114.6 115.3 111.4 111.7 Wałbrzyska 9 626.70 11 219.80 12 105.40 13 095.00 122.6 116.5 107.9 108.2 Warmińsko-Mazurska 2 442.50 2 637.80 3 033.40 3 328.90 121.7 108.0 115.0 109.7 Total 56 705.70 66 589.70 73 221.60 79 670.10 123.0 117.4 110.0 108.8

Source: own elaboration pursuant to the data given by the Ministry of Economy.

Pursuant to the data included in Table 1, the dynamics of capital expenditure in different years and zones located within the territory of Poland were diversified and conditioned by numerous factors depending both on the managing companies (in the scope of encouraging the investors) and on the possibilities of the entrepreneurs themselves. However, it is difficult to expect a regular growing tendency because the inflow of investors is not systematic and one big investment is enough to significantly increase the dynamics of capital expenditure in a given year.

Special economic zones as stimuli... 195

In 2008, a considerable increase in the dynamics of capital expenditure in comparison with the previous year was noted in the Łódź zone (by 48.9%), the Pomeranian zone (by 39.8%), and the Suwałki zone (by 34%). In 2009, the highest increase of capital expenditure in comparison with 2008 was in the Pomeranian SEZ (by 59.7%), the Starachowice SEZ (by 28.6%), and the Cracow SEZ (by 25.8%). In 2010, the Słupsk zone was the one with the highest dynamics of investments. The value of investments in this zone increased by 25.3% in comparison with 2009. The relatively high dynamics of capital expenditure were also observed in the Starachowice SEZ where the capital expenditure grew by 21.30%. Whereas in the Warmia and Mazury zone, the capital expenditure increased by 15% in 2010 in comparison with the previous year.

By the end of 2011, the entrepreneurs conducting the business activity within all special economic zones in Poland made capital expenditure amounting to PLN 79,670.10 million.

In 2011, the highest share in the overall investment belonged to the Katowice SEZ and equalled 22.8%. It was followed by the Wałbrzych zone with the share of 16.4%. The percentage of investment made in the Łódź SEZ in the overall capital expenditure was 11.3% at the end of 2011. The share of investment in total expenditure within the remaining eleven zones with preferential conditions for business activity did not exceed 10%. The Słupsk zone had the worst result in this scope which equalled 1.4% of overall investment.

The Słupsk SEZ was once again the one with the highest dynamics of investment. In 2011, its value increased by 14.8% in comparison with the previous year. The relatively high dynamics of capital expenditure were also observed in the Tarnobrzeg SEZ where the capital expenditure grew by 11.7% when compared with the previous year. An increase in investment exceeding 10% in 2011 occurred also in the Kostrzyn-Słubice SEZ and the Łódź SEZ.

Pursuant to the data included in Table 1, the rate of increase of the accumulated value of investment has been slowing down since 2009, which is the consequence of the financial and economic crisis.

3.2. Jobs

Created jobs are one of the criteria describing the companies operating within the special economic zones. Bearing in mind that those enterprises conduct their business activity in an economically separate area, it is relatively easy to define all economic parameters for this group of companies and determine whether it stands out against other enterprises in the country [Pastusiak 2011, p. 228].

The changes in the level of employment (accumulated figures) in the zones with preferential conditions for business activity operating in Poland in 2008–2011 are shown in Table 2.

196 Piotr Hajduga

Table 2. Level of employment in special economic zones in 2008–2011

Zone Employment

(as at the end of the year, in persons) Dynamics of jobs

(previous year = 100%) 2008 2009 2010 2011 2008 2009 2010 2011

Kamiennogórska 4 469 4 087 4 349 4 618 88.8 91.5 106.4 106.2 Katowicka 42 593 40 724 43 473 48 541 120.7 95.6 106.8 111.7 Kostrzyńsko-Słubicka 16 446 15 601 17 252 19 089 127.6 94.9 110.6 110.6 Krakowska 7 699 8 594 8 936 9 790 138.3 111.6 104.0 109.6 Legnicka 8 698 8 079 8 803 9 300 107.3 92.9 109.0 105.6 Łódzka 18 983 20 844 23 248 24 824 128.6 109.8 111.5 106.8 Mielecka 15 824 15 558 16 516 18 387 120.8 98.3 106.2 111.3 Pomorska 17 545 19 013 19 275 18 812 100.3 108.4 101.4 97.6 Słupska 2 728 2 383 2 683 3 390 125.1 87.4 112.6 126.4 Starachowicka 8 030 6 512 6 349 7 270 115.2 81.1 97.5 114.5 Suwalska 5 132 5 026 5 471 5 452 100.7 97.9 108.9 99.7 Tarnobrzeska 22 538 23 335 27 832 28 710 119.9 103.5 119.3 103.2 Wałbrzyska 30 924 28 473 30 057 31 276 107.9 92.1 105.6 104.1 Warmińsko-Mazurska 8 933 9 799 10 558 12 135 106.2 109.7 107.7 114.9 Total 210 542 208 028 224 802 241 594 115.5 98.8 108.1 107.5

Source: own elaboration pursuant to the data given by the Ministry of Economy.

In 2008, the overall employment grew most in comparison with the previous year in the Cracow zone (by 38.3%), the Łódź zone (by 28.6%), and the Kostrzyn-Słubice zone (by 27.6%). Whereas the Kamienna Góra SEZ for Small Enterprises witnessed the reduction of the employment by many business entities and thus the number of jobs dropped by 11.2%.

The decrease in overall employment in all special economic zones in Poland in 2009 – when compared with 2008 – by 1.2% with a parallel increase in capital expenditure by 17.4% was only partially the consequence of the economic depression. Another equally significant factor was the increase in the number of innovative investments which caused the significant replacement of human work with the applied technologies. When comparing the year 2009 with the previous one, the overall employment level dropped the most in the Starachowice zone (by 18.9%), the Słupsk zone (by 12.6%), and the Kamienna Góra zone (by 8.5%). Whereas the biggest increase in the number of jobs was observed in the Cracow SEZ (by 11.6%), the Łódź SEZ (by 9.8%), and the Warmia and Mazury SEZ (by 9.7%).

In 2010, the overall employment grew most in comparison with 2009 in the Tarnobrzeg zone (by 19.3%), the Słupsk zone (by 12.6%), and the Łódź zone (by 11.5%). A decrease in the number of jobs by 2.5% occurred only in the Starachowice SEZ.

By the end of 2011, the entrepreneurs conducting business activity within all special economic zones in Poland employed a total of 241,594 persons. In 2011, the overall employment grew most in comparison with the previous year in the

Special economic zones as stimuli... 197 Słupsk zone (by 26.4%), the Warmia and Mazury zone (by 14.9%), and the Starachowice zone (by 14.5%). A decrease in the number of jobs was noted only in the Suwałki SEZ (by 0.3%) and the Pomeranian SEZ (by 2.4%).

4. Conclusion

The assessment of the effectiveness of the operation of zones with preferential conditions for business activity and their influence on their environment is a task requiring thorough and detailed research on each of them separately. Simultaneously, such an assessment is a difficult task because it is based on multiple factors and it should be borne in mind that the same fact may be assessed in different ways by various entities or stakeholders’ groups [Kubin 2010, p. 32].

Special economic zones operating in Poland are characterised by diversified investment attractiveness, which has been reflected in the degree of their development. The clever use of the possibilities given by the areas with preferential conditions for investments may be of benefit to both the entrepreneurs, regional and local communities, and the local government units. These are the entities decisive for the success of those zones and whether they may be considered as an actually effective mechanism of entrepreneurship development and support.

Special economic zones have become a permanent element of the economic sphere in Poland and they are an important factor behind the developing innovativeness of the enterprises located therein. At the same time, they play a significant role in shaping the competitiveness of each region as part of the economic sphere in our country.

The discussion presented in this article refers to a wider range of issues and also does not fully exhaust the explored topics. Therefore, the author intends to continue the research in that scope, especially to analyse the impact of special economic zones located in Poland on the social and economic sphere. It is worth emphasising that the complete verification of the phenomenon will be possible only after the end of a specified operating period of the applied regional policy instrument. The question about the future of entrepreneurs investing in privileged areas, which is already relevant, opens a new stage in the history of the research on special economic zones.

References

Bazydło A., Smętkowski M., Specjalne strefy ekonomiczne – światowe zróżnicowanie instrumentu, [in:] E. Kryńska (ed.), Polskie specjalne strefy ekonomiczne – zamierzenia i efekty, Scholar, War-szawa 2000.

Broszkiewicz P., Specjalne strefy ekonomiczne jako czynnik rozwoju regionalnego (na przykładzie Dolnego Śląska w latach 1997-2005), rozprawa doktorska, AE we Wrocławiu, Wrocław 2006.

198 Piotr Hajduga

Hajduga P., Specjalne strefy ekonomiczne i ich funkcjonowanie w obrębie dużych miast Polski, [in:]

M. Łyszczak, K. Wilk (eds.), Kierunki transformacji społeczno-ekonomicznej przestrzeni Polski ze szczególnym uwzględnieniem obszarów metropolitalnych, PN nr 1087, Wydawnictwo Akade-mii Ekonomicznej we Wrocławiu, Wrocław 2005.

Kubin T., Specjalne strefy ekonomiczne jako forma pomocy przedsiębiorcom ze strony państwa, [in:] M. Kolczyński, W. Wojtasik (eds.), Innowacyjne i społeczne oddziaływanie specjalnych stref ekonomicznych i klastrów w Polsce, Towarzystwo Inicjatyw Naukowych, Katowice 2010.

Lizińska W., Kisiel R., Specjalne strefy ekonomiczne jako instrument polityki regionalnej na przykła-dzie Warmińsko-Mazurskiej Specjalnej Strefy Ekonomicznej, Wydawnictwo Uniwersytetu War-mińsko-Mazurskiego w Olsztynie, Olsztyn 2008.

Pastusiak R., Specjalne strefy ekonomiczne jako stymulator rozwoju gospodarczego, Wydawnictwo Uniwersytetu Łódzkiego, Łódź 2011.

Radek R., Wpływ specjalnych stref ekonomicznych na rozwój polskiego pogranicza, [in:] M. Kolczyński, W. Wojtasik (eds.), Innowacyjne i społeczne oddziaływanie specjalnych stref ekonomicznych i klastrów w Polsce, Towarzystwo Inicjatyw Naukowych, Katowice 2010.

Ustawa z dnia 20 października 1994 r. o specjalnych strefach ekonomicznych, DzU 1994, nr 123, poz. 600, tekst jednolity: DzU 2007, No. 42, poz. 274 z późn. zm.

Waligórski M., Administracyjnoprawna reglamentacja działalności gospodarczej w tzw. specjalnych strefach ekonomicznych, Studia Prawnicze 1997, nr 2.

Zbyd M., Publiczne prawo gospodarcze, Kraków 1997.

SPECJALNE STREFY EKONOMICZNE JAKO STYMULATOR ROZWOJU REGIONALNEGO W DOBIE KRYZYSU

Streszczenie: W niniejszym artykule szczególną uwagę poświęcono efektom funkcjonowa-nia specjalnych stref ekonomicznych zlokalizowanych na obszarze Polski, począwszy od roku 2008, tj. roku uznawanego za początek globalnego kryzysu finansowego i gospo-darczego. Za istotną uznano również weryfikację postawionej tezy o skuteczność specjal-nych stref ekonomicznych jako narzędzia służącego rozwojowi społecznemu i gospodar-czemu, szczególnie w kontekście zmniejszania bezrobocia.

Słowa kluczowe: specjalna strefa ekonomiczna, kryzys finansowy i gospodarczy, efekty funkcjonowania SSE w Polsce.



Adam Przybyłowski Gdynia Maritime University

SUSTAINABLE TRANSPORT DEVELOPMENT PREREQUISITES IN SELECTED POLISH REGIONS

Summary: An analysis of implemented policy and planning requires the guidance of accu-rate information in order to facilitate making strategic decisions. This is particularly impor-tant for sustainable planning, which takes into account diverse, indirect and long-term im-pacts. Also, there is a need to integrate closer the processes of extending the necessary transport infrastructure with the rule of balancing development by seeking selective and op-timal solutions at the level of regional and at local level. Based on the available strategic documents and statistical data 2004–2010 regarding transport indicators, the paper presents the sustainable transport development prerequisites based on selected regions representing northern (Pomorskie), eastern (Podlaskie), southern (Małopolskie), western (Wielkopolskie) and central (Mazowieckie) parts of Poland.

Keywords: sustainable transport indicators, EU, Polish regions.

1. Introduction

Sustainable transportation indicators are an important tool for better transportation planning. There is currently no standard set of sustainable transportation indicators. A variety of indicators are used, some of which are particularly appropriate and useful for planning and policy analysis. It is important to establish standardized sets of sustainable transportation indicators and to improve the collection of transportation statistics, expanding these efforts to reflect key economic, social and environmental impacts [Borys 2008; Litman 2008, p. 11]. Efficient and affordable transport systems are necessary for poverty alleviation and the need to mitigate adverse externalities to health and the environment. From an environmental and social point of view, the failure to unhitch growth in transport from growth in GDP is an extremely worrying tendency. Based on the available strategic documents and chosen statistical data (2004–2010), the paper presents the sustainable transport development prerequisites in Poland using the example of selected regions in the

200 Adam Przybyłowski

context of the sustainable development paradigm and sustainable transport policy guidelines in the EU policy. The analysis takes into consideration regions representing northern (Pomorskie), eastern (Podlaskie), southern (Małopolskie), western (Wielkopolskie) and central (Mazowieckie) parts of Poland.

2. Sustainable development paradigm and sustainable transport in the EU policy

The idea of sustainable development is contained within two key concepts [WCED 1987, p. 43]: – the concept of needs, in particular the essential needs of the world's poor, to

which overriding priority should be given; – the idea of limitations imposed by the state of technology and social

organization on the environment's ability to meet present and future needs. It is possible to graphically represent (see Figure 1) the achievement of

sustainable development by the simultaneous coexistence of three capitals/capacities: environmental (natural), economic and social. There exist numerous other sustainability development models, taking into account four capitals: natural, social, economic and human [see more: Medhurst 2003, p. 4; Vivien 2005].

Figure 1. Sustainable Development triangle

Source: [Mauerhofer 2008, p. 497].

Sustainable transport development prerequisities... 201

According to the European Council of Ministers of Transport [ECMT 2004] definition, a sustainable transport system: – allows the basic access and development needs of individuals, companies and

society to be met safely and in a manner consistent with human and ecosystem health, and promotes equity within and between successive generations;

– is affordable, operates fairly and efficiently, offers a choice of transport mode and supports a competitive economy, as well as balanced regional development;

– limits emissions and waste within the planet’s ability to absorb them, uses renewable resources at or below their rates of generation, and uses non-renewable resources at or below the rates of development of renewable substitutes, while minimizing the impact on the use of land and the generation of noise. Transportation is expected to be the major driving force behind the growing

world demand for energy. It is the largest end-use of energy in developed countries and the fastest growing one in most developing countries. Furthermore, adequate, efficient, and effective transport systems are important for access to markets, employment, education and basic services critical to poverty alleviation. Current patterns of transportation development are not sustainable and may compound both environmental and health problems. Therefore, there is a need for urgent action, ranging, inter alia, from the promotion of integrated transport policies and plans, the accelerated phase-out of leaded gasoline, the promotion of voluntary guidelines and the development of partnerships at a national level for strengthening transport infrastructure, promoting and supporting the use of non-motorized transport and developing innovative mass transit schemes. International co-operation is required in order to ensure transport systems support sustainable development [WWW1].

Figure 2. Most likely 2000–2020 growth in transport demand in EU27

Source: [Grzelakowski 2008].

Overall • Freight: +50% • Passengers: +35% • GDP: +52%

Freight • Road: +55% • Rail: +13% • Shipping: +59% • Inl. Waterways: 28%

Passenger • Private cars: +36% • Rail: +19% • Aviation: +108%


In the EU, as a result of the currently formed modal split in the transport sector,

and as predicted realistically, by 2020 there is no chance for any shift towards the more environmentally friendly modes of transport such as rail and inland waterways, reaching the set up transport policy’s objective is thoroughly impossible. If this tendency continues, sustainable mobility by a still rapidly growing transport activity may even slip away [Grzelakowski 2008]. For sustainable mobility, this means disconnecting mobility from its many harmful effects for the economy, society and environment. The most likely 2000–2020 growth in transport demand in the EU27 is presented in Figure 2 [Ponthieu 2008, p. 10].

Table 1. Ten goals for a competitive and resource efficient transport system: benchmarks for achieving the 60% GHG emission reduction target

I. Developing and deploying new and

sustainable fuels and propulsion systems

II. Optimising the performance of multimodal logistic chains, including

by making greater use of more energy-efficient modes

III. Increasing the efficiency of transport and of infrastructure use

with information systems and market-based incentives

Halve the use of ‘conventionally-fuelled’ cars in urban transport by 2030; phase them out in cities by 2050; achieve essentially CO2-free city logistics in major urban centres by 2030.

30% of road freight over 300 km should shift to other modes such as rail or waterborne transport by 2030, and more than 50% by 2050, facilitated by efficient and green freight corridors. To meet this goal will also require appropriate infrastructure to be developed.

Deployment of the modernised air traffic management infrastructure (SESAR) in Europe by 2020 and completion of the European Common Aviation Area. Deployment of equivalent land and waterborne transport management systems (ERTMS, ITS, SSN and LRIT, RIS). Deployment of the European Global Navigation Satellite System (Galileo).

Low-carbon sustainable fuels in aviation to reach 40% by 2050; also by 2050 reduce EU CO2 emissions from maritime bunker fuels by 40% (if feasible 50%).

By 2050, complete a European high-speed rail network. Triple the length of the existing high-speed rail network by 2030 and maintain a dense railway network in all Member States. By 2050 the majority of medium-distance passenger transport should go by rail.

By 2020, establish the framework for a European multimodal transport information, management and payment system.

A fully functional and EU-wide multimodal TEN-T ‘core network’ by 2030, with a high quality and capacity network by 2050 and a corresponding set of information services.

By 2050, move close to zero fatalities in road transport. In line with this goal, the EU aims at halving road casualties by 2020. Make sure that the EU is a world leader in safety and security of transport in all modes of transport.

By 2050, connect all core network airports to the rail network, preferably high-speed; ensure that all core seaports are sufficiently connected to the rail freight and, where possible, inland waterway system.

Move towards full application of “user pays” and “polluter pays” principles and private sector engagement to eliminate distortions, including harmful subsidies, generate revenues and ensure financing for future transport investments.

Source: [White Paper 2011].


Recently, the EU proposed a new document: Europe 2020 Strategy [Europe 2020… 2010]. The Commission has identified three key drivers for growth, to be implemented through concrete actions at EU and national levels: smart growth (fostering knowledge, innovation, education and digital society), sustainable growth (making the production more resource efficient while boosting the competitiveness) and inclusive growth (raising participation in the labour market, the acquisition of skills and the fight against poverty). In order to update the EU transport policy, the European Commission published a new document: White Paper ‘Roadmap to a Single European Transport Area – towards a competitive and resource efficient transport system’ [White Paper 2011] where a set of very ambitious goals have been presented to be achieved by 2050 (see Table 1).

As one can see, the EU is one of the most active promoters of the idea of sustainable development. Thus, in its transport policy the EU aims at changing the demand pattern by shifting potential demand from the road transport sector towards rail, inland waterway and sea transport – short-distance shipping as well as promoting combined transport and collective public transport. Such solutions are more environmentally friendly, thus helping pursue sustainable development. The above presented goals will be very difficult to achieve, especially for such new EU members as Poland. It is necessary to adopt a high quality sustainable transport indicators monitoring system in order to better plan and manage the transport development [Borys 2009; Nicolas 2010].

For a comprehensive and balanced analysis, indicator sets should include indicators from each of the major categories of issues, such as those listed in Table 2. For example, it is important to have indicators of transport cost efficiency (economic), equity and livability (social), and pollution emissions (environmental).

Table 2. Sustainable transportation issues*

Economic Social Environmental Accessibility quality Equity/fairness Air pollution Traffic congestion Impacts on mobility disadvantaged Climate change Infrastructure costs Affordability Noise pollution Consumer costs Human health impacts Water pollution Mobility barriers Community cohesion Hydrologic impacts Accident damages Community livability Habitat and ecological degradation DNRR Aesthetics DNRR

* This table lists various impacts which should be reflected, as much as feasible, in sustainable trans-portation indicator sets. (DNRR = Depletion of Non-Renewable Resources).

Source: [Litman, Burwell 2006, p. 335].

These are examples of sustainable transportation issues, but the table is not intended to be comprehensive. Some indicators reflect multiple impact categories; for


example, traffic accidents impose economic costs from damage and reduced productivity, and social costs from pain and reduced quality of life. Fuel consumption can be a useful indicator because it reflects energy consumption, pollution emissions, climate change, and total vehicle travel, and to a lesser extent mileage-related impacts such as congestion and crash rates. On the other hand, it provides limited information about actual damage to the environment [Litman 2008].

3. Sustainable transport indicators in selected Polish regions

Below, some available transport indicators regarding selected Polish regions in the period 2004–2010 are presented. The following indicators have been taken into consideration: – social: fatalities in road accidents/100 thousand inhabitants, one-way tram

ticket price; – economic: motorways in km, number of passengers in the airports, inland

waterway cargo transport in thousand tons; – environmental: railways electrified normal gauge in km, CO2 emissions.

Figure 3 presents fatalities in road accidents/100 thousand inhabitants. Fatalities in road accidents/100 thousand Inhabitants – their number has been constantly decreasing in all the regions.

Figure 3. Fatalities in road accidents/100 thousand inhabitants in selected Polish regions (2004–2010)

Source: own elaboration based on [Transport 2004–2010…].

Out of the compared regions, the ‘safest’ is Małopolskie (7.1). The highest number of victims occurred in Mazowieckie and Podlaskie (12.5 and 12.3, respectively). Poland remains the country with one of the highest number of road accidents and casualties in the EU. This is due to the low quality of Polish road infrastructure and the high number of drunk drivers.


As regards one-way tram ticket price (see Figure 4), it has been only slightly increasing in most selected regions (except for the Podlaskie region where there is no tram system).

Figure 4. One-way tram ticket price in selected capital cities of the Polish regions (2004–2010)


As one may see, the price has decreased in Pomorskie to 2.5 PLN. The most expensive – and therefore the least accessible – is the ticket price in Mazowieckie – 2.8 PLN. Public transport plays a major role in decongesting major regional capital cities. It should be accessible also in terms of pricing in order to allow greater mobility.

The length of motorways has been increasing, except for two regions where there have not been any highways being constructed at all (see Figure 5).

Figure 5. Motorways in km in selected Polish regions (2004–2010)



The leader is the Wielkopolskie region with almost 200 km. In Pomorskie the first

part of motorway A1 was opened in 2008. In two regions, Mazowieckie and Podlaskie, there was not any infrastructure of that kind in the analyzed period of time.

Figure 6. Number of passengers in the airports in selected Polish regions (2004–2010)


As far as the number of passengers in airports is concerned, it has been increasing (especially in Mazowieckie reaching 8,689,655 passengers in 2010), except for Podlaskie where there is no airport (see Figure 6). This intensity is connected, among others, with the activity of low-cost carriers in Poland.

However, when it comes to inland waterway cargo transport, the results prove that this form of transport remains neglected, except for the Wielkopolskie region where there has been a considerable (but occasional) growth – 1812 thousand tons in 2009 (see Figure 7).

Figure 7. Inland waterway cargo transport in thousand tons in selected Polish regions (2004–2010)



These results prove that the inland waterway transport plays unfortunately a minor role in reaching more sustainable development of the transport systems in the analyzed regions.

The length of electrified railways with normal gauge (see Figure 8) remained at the same level, which is also an extremely worrying tendency.

Figure 8. Railways electrified (normal gauge) in km in selected Polish regions (2004–2010)


This environmental-friendly form of transport could have contributed more to greater sustainability. The statistics prove that the railways stagnation concerns all parts of Poland, totalling 1412 km in Mazowieckie and only 220 in Podlaskie.

CO2 emissions have been remaining more or less at the same level, with two exceptions: in Mazowieckie their number has increased and in Małopolskie region it has slightly decreased (see Figure 9).

Figure 9. CO2 emissions in selected Polish regions (2004–2010)



4. Conclusion

Indicators are important tools for making decisions and measuring progress. The statistical data analysis regarding transport indicators in 2004–2010 of selected Polish regions confirms that the attainment of sustainable transport development is a difficult and long-lasting process. There are some optimistic signs, like in the case of the decreasing number of fatalities in road accidents. However, in the case of inland waterways and railways, the indicators show that there is not a great chance of shifting to environmental-friendly modes of transport. Taking into consideration the analyzed sustainable transport indicators, the eastern region – Podlaskie – is lagging behind the others, except for the amounts of CO2 emissions being the lowest out of the selected regions.

Therefore the implementation of the ambitious goals presented in the updated EU White Paper seem unrealistic to achieve by 2050, unless the Polish public authorities responsible for transport investment take urgently the necessary decisions. Public authorities should support the greater use of public and non-motorized transport and promote an integrated approach to policy-making, including policies and planning for land use, infrastructure, public transport systems and goods delivery networks, with a view to providing safe, affordable and efficient transportation, increasing energy efficiency and reducing pollution, congestion and also adverse health effects. Other instruments should include the much wider application of the principle of genuine social participation in the decision-making process, in order to balance the interests of local and regional communities and their development ambitions. A further decentralisation of the state and public finance, along with a more extensive scope of decisions taken at regional level would also contribute to the harmonisation of investment activities and to facing sustainable development challenges.

Although transportation-related statistics are extensively gathered, their quality is highly variable, and even the best data are often incompatible with those from other organizations and jurisdictions. It is highly recommended to develop a research program concerning the collection, analysis and application of high quality, standardized transportation data in order to be able to provide a suitable framework for transportation planning and policy benchmarking.

References

Borys T., Analiza istniejących danych statystycznych pod kątem ich użyteczności dla określenia po-ziomu zrównoważonego transportu wraz z propozycją ich rozszerzenia, Raport z realizacji pracy badawczej, Ministerstwo Infrastruktury, Jelenia Góra/Warszawa 2008.

Borys T., Pomiar zrównoważonego rozwoju transportu, [in:] D. Kiełczewski i B. Dobrzańska (eds.), Ekolo-giczne problemy zrównoważonego rozwoju, Wydawnictwo WSE w Białymstoku, Białystok 2009.

Sustainable transport development prerequisities... 209 ECMT, Assessment and Decision Making for Sustainable Transport, European Conference of Ministers of

Transportation, 2004, Organization of Economic Coordination and Development (www.oecd.org). Europe 2020 Strategy COM(2010)2020, final. Grzelakowski A.S.G., European greener mobility, Baltic Transport Journal 2008, Litman T., Sustainable Transportation Indicators. A Recommended Research Program For Develop-

ing Sustainable Transportation Indicators and Data, 2008, http://www.vtpi.org/sustain/sti.pdf. Litman T., Burwell D., Issues in sustainable transportation, International Journal of Global Environ-

mental Issues 2006, vol. 6, no. 4, pp. 331–347, at www.vtpi.org/sus_iss.pdf. Medhurst J., A Thematic Evaluation of the Contribution of Structural Funds to Sustainable Develop-

ment: Methods and Lessons, REGIONET Network of Excellence Workshop, Manchester 2003. Nicolas J.-P., SIMBAD: un outil pour integrer le developpement durable dans les politiques

publiques, [in:] J.-P. Antoni (ed.), Modeliser la ville. Forme urbaine et politiques de transport, Economica, coll. Methodes et Approches, Paris 2010.

Ponthieu E., European Economic and Social Committee (EESC). Towards an Integrated and Coordi-nated Sustainable Logistics and Transport Policy for Europe, Roma 2008.

Transport 2004–2010 – activities results, GUS, Warsaw. Vivien F.-D., Le developpement soutenable, La Decouverte, Paris 2005. White Paper. Roadmap to a Single European Transport Area – Towards a Competitive and Resource

Efficient Transport System, COM/2011/0144 final – eurlex.europa.eu. World Commission on Environment and Development (WCED), Our Common Future, Oxford Uni-

versity Press, Oxford 1987.

Website [WWW1] http://www.un.org/esa/dsd/susdevtopics/sdt_transport.shtml (date of access: 10.07.2010).

PRZESŁANKI ZRÓWNOWAŻONEGO ROZWOJU TRANSPORTU W WYBRANYCH POLSKICH REGIONACH

Streszczenie: Analiza realizowanej polityki i planowanie powinny opierać się na właściwej bazie informacyjnej ułatwiającej podejmowanie strategicznych decyzji. Jest to szczególnie istotne w przypadku planowania zrównoważonego rozwoju, gdyż należy uwzględniać róż-norodne, pośrednie i długookresowe efekty. Istnieje także potrzeba większej harmonizacji procesów rozwijania niezbędnej infrastruktury transportu z zasadą równoważenia rozwoju poprzez poszukiwanie selektywnych i optymalnych rozwiązań na poziomie regionalnym i lokalnym. Celem publikacji jest przedstawienie przesłanek zrównoważonego rozwoju trans-portu w świetle dostępnych dokumentów i danych statystycznych za lata 2004–2010 doty-czących wybranych pięciu polskich regionów reprezentujących następujące części kraju: północną (Pomorskie), wschodnią (Podlaskie), południową (Małopolskie), zachodnią (Wiel-kopolskie) i środkową (Mazowieckie).

Słowa kluczowe: wskaźniki zrównoważonego transportu, UE, polskie regiony.



Mariusz E. Sokołowicz University of Łódź

THE IMPACT OF TRANSNATIONAL CORPORATIONS’ ACTIVITY ON REGIONAL HUMAN CAPITAL. CASE STUDY OF THE ŁÓDŹ METROPOLITAN AREA

Summary: Contemporary regional economies are very open, and one of the facets of this openness is hosting subsidiaries of transnational corporations (TNCs). Thus, studies on mu-tual relations between the regional human capital (HC) and the activity of TNCs appear to be an interesting issue. The above assumptions were a base for the empirical verification of the impact of TNCs’ activity on regional HC, and the significance of this capital as a loca-tion factor. The research was conducted among head representatives of TNCs operating in the Łódź metropolitan area with more than 50 employees. The paper presents the main as-pects of the study, and leads to the conclusion that HC is an important, but not the key, loca-tion factor of TNCs in the region. Also, there is a relatively weak positive impact of TNCs’ activity on regional development.

Keywords: human capital, transnational corporations, regional development, Łódź metro-politan area.

1. The role of human capital in the processes of regional development

The significance of human capital in the economy has been a subject of growing interest at least since the 1950s, although the thesis about the important role of human beings and their skills in the creation of added value was already stated by Adam Smith or Johann von Thünen. However, the term “human capital” was popularized in economic literature in the second half of the 20th century by Jacob Mincer [1958], Theodor W. Schulz [1961] and Gary S. Becker [1962]. Contemporary research on the determinants of economic development show that international (or interregional) differences in the accumulation of material capital and labor explain only ca. 2530 % of the differences in GDP level [Orłowski 2000; World Bank 1998]. Among other factors, one can indicate technical development and innovation. The latter, in turn, are fundamentally based on human skills, capabilities

The impast of transnational corporations’ activity... 211 and creativity which are treated as so called human capital (HC), in order to differentiate them from other forms of human (physical) effort (labor power).

The term ”human capital” means a valuable and useful resource of knowledge accumulated in the process of education and professional practice [Oleksiuk 2009, p. 9]. Human capital is also defined more broadly, as a renewable and constantly magnified stock of knowledge, skills, abilities, qualifications, attitudes, motivation and health, having an economic value and being a source of future gains [Grodzicki 2003, p. 46]. Putting an emphasis on the economic value of human capital corresponds to the findings of Mincer [1974, p. 46], who confirmed a positive correlation between the extension of education and the growth of wages earned by employees. Walukiewicz [2010, p. 25] explains that human capital means “all, absolutely all, intangible resources (attributes) associated with a man treated as a separate human being”.

Initially, most economic models were focusing on the issue of human capital, abstracted from the concept of “space” [Nowakowska, Przygodzki, Sokołowicz 2011, pp. 5556]. However, with time the increasing impact of human capital on economic development became widespread in the literature on issues of local and regional development. In this context, a region is a complicated socio-economic system, where a high level of human capital development is one of the key conditions for its development. This is a consequence of the atmosphere of innovativeness, shared commonly by all actors in a given region [Sokołowicz 2008, p. 57]. The existence of a well-functioning education system, providing both formal knowledge and the system of inter-linkages between the actors, represented by various forms of collective learning (learning by interacting, learning by doing, etc.), ensures the sustainable capacity of the region to adapt to changing economic circumstances.

2. Human capital and spatial strategies of transnational corporations – interrelations

One can indicate many examples of economic research, proving the growing role of human capital in attracting foreign direct investment, as well as determining its nature [see e.g. Lucas 1990; Dunning 1988; Noorbakhsh, Paloni, Youssef 2001]. It should be noted however, that the relation between human capital and the spatial strategies of transnational corporations is of a two-sided nature. Human knowledge, skills, attitudes, or vital force, are not only the important location advantages of territories, but can be also enhanced by the activities of TNCs [more reviews in: Nowakowska, Przygodzki, Sokołowicz 2011, p. 175]. For example, when FDI contributes to technology transfer to regions, it is indirectly associated with the improvement of human capital [Donakowski 2003, pp. 314315]. Also, in the context of the impact of TNCs on human capital via labor markets, both direct and indirect, as well as quantitative and qualitative consequences should be considered [more: UNCTAD 1994, p. 167; Zorska 2007, p. 289].

212 Mariusz E. Sokołowicz

Human capital becomes an important location factor of transnational

corporations (TNCs) not only due to labor force availability, but also because the socio-economic development is accompanied by increasing specialization and complexity of the economic structures. The latter leads to the growth of so called transaction costs [Coase 1937; Wiliamson 1975], in opposition to direct production costs [see: Pakulska, Poniatowska-Jaksch 2008, p. 36]. This implies a desire to seek a high level of human competences in order to minimize them.

Finally, it is worth recalling the conclusion of the United Nations Conference on Trade and Development (UNCTAD), according to which, although in many cases corporations have a tendency to invest in the development of competencies and skills of local workers to a greater extent than incumbent companies, the host countries and regions should not rely only on TNCs in this area. Usually, corporations transmit to the host countries and regions technologies which are adapted to the “ambient” (typically lower) level of human capital and tend primarily to the efficient education of the operators of these technologies, which are rarely the newest. Thus, strengthening the level of skills and ensuring a high level of specialized training is still a task of the authorities of the host counties and regions, for these strategies may result in attracting foreign investment of a higher quality and encourage existing investors to take more sophisticated development strategies towards the host locations [UNCTAD 2000, p. 17].

3. Interrelations between the activities of transnational corporations and human capital development in the Łódź metropolitan area

The impact of the activity of transnational corporations on the competitiveness of regional economies is particularly interesting when examining this problem in metropolitan areas. Hosting a large number of TNC subsidiaries and branches is one of the important conditions for classifying a given area as having a metropolitan potential [see ESPON 2007; Sokołowicz 2010, pp. 109110].

In this context, the Łódź metropolitan area became a subject of research aimed at the identification of the level of significance of various features of human capital against other location factors (human capital as a location factor). The second aim was concentrated on the verification of the extent to which TNCs’ activities contribute to the strengthening of this type of resource (the influence of corporations on the level of human capital in the region). The study was based on personal interviews among head representatives of companies with foreign capital operating in the Łódź metropolitan area, employing at least 50 employees.1

1 Research sample of 97 entities was drawn from a commercial database of stock and limited lia-

bility companies. After verification of these companies from the point of view of the adopted criteria and also the refusal of many of them of participation in the research, finally 12 representatives partic-ipated in face-to-face interviews. In consequence, the results of the study should be interpreted with some caution because of the limited representativeness.

The impast of transnational corporations’ activity... 213

0 20 40 60 80 100 120 140

15

16

25

26

28

28

34

35

49

50

52

53

59

67

78

80

96

101

103

115

116

123

134 labour costs (M: 8; D: 10)

transport accessibility of the region (M: 5; D: 5)

receptive market for products / services (M: 5; D: 10)

low cost of lease / rent / purchase of production space (M: 7; D: 7)

presence of skilled workers (M: 5; D: 8)

low cost of lease / rent / purchase of office space (M: 5; D: 5)

local taxes and charges (M: 5; D: 0)

telecommunication accessibility of the region (M: 5; D: 5)

academic potential of the region (M: 4; D: 0)

costs of using technical infrastructure (M: 3; D: 0)

quality of the offer of office space (M: 3; D: 0)

presence of other large enterprises as subcontractors (M: 1; D: 0)

research potential of the region (M: 2; D: 0)

quality of the offer of production space (M: 2; D: 0)

presence of small and medium enterprises as subcontractors (M: 1; D: 0)

quality of service and competences of public sector entities (M: 1; D: 0)

quality of life in the region (M: 1; D: 0)

industrial traditions of the region (M: 1; D: 0)

availability of raw materials (M: 1; D: 0)

support from the Łódź Special Economic Zone (M: 0; D: 0)

support from the Investor Relations Office of the city of Łódź M: 0; D: 0)

support from the Investor Relations Offices of the communes in Łódź metropolitan area (M: 0; D: 0)

support from the Investors and Exporters' Service Center at the regional Marshal's Office (M: 0; D: 0)

Letters in parentheses indicate the level of evaluation of a given location factor on a 110 scale of 1 to 10, where M median, D – dominant. Numbers on the left present the sum of the assessments made by all respondents on a 110 scale. Factors referring directly to the issues of human capital are in dark grey color.

Figure 1. Business location factors of large international companies in the Łódź metropolitan area



The first of the areas of analysis was an identification of location factors,

including those semantically connected with the term “human capital”. From the perspective of transnational corporations operating here, the latter is not a dominating but a relatively important feature of the Łódź metropolitan area. Although the presence of qualified staff was in fifth place on the list of advantages, it was relatively highly rated (median: 5, dominant: 8; see Figure 1).

One of the adverse aspects of the interrelations between TNCs activities and human capital in the region are the much less common, and much lower scores of respondents concerning academic potential and the research and development capacities of the region. In addition, also the rare indications of the presence of local subcontractors, the competences of the public sector representatives and support from pro-investment policy agencies, are alarming (Figure 1). In consequence, the level of the assessment of locally embedded human capital in its various forms (local competences of both own employees and employees of cooperating companies, universities or R&D institutions), when compared to more “primal” location factors (costs of labor and transport, access to markets), has been specified with a high degree of restraint.

0 20 40 60 80 100 120

R&D offer of other enterprises (M: 1; D: 1)

offer of technology transfer centers (M: 1; D: 1)

offer of local and regional development agencies (M: 1; D: 1)

offer of R&D institutions (M: 1; D: 1)

R&D offer of universities (M: 1; D: 1)

level of education of graduates of local technical and vocational schools (M: 6; D: 6)

level of education of graduates of local universities (M: 6; D: 8)

35

37

39

45

55

105

117

Letters in parentheses indicate the level of evaluation of a given location factor on a 110 scale of 1 to 10, where M median, D – dominant. Numbers on the left present the sum of the assessments made by all respondents on a 110 scale.

Figure 2. Assessment of the “knowledge offer” of the institutions of the Łódź metropolitan area from the perspective of transnational corporations



Another element of HC assessment referred to the effects of the activities of local and regional knowledge institutions. In this case, large enterprises with foreign capital ranked highly the level of education of graduates of the universities of Łódź. More than half of the respondents assessed it as not less than 6 on a 110 scale, while 8 was the prevalent rating. The level of education of alumni of local vocational and technical schools was only slightly lower.

On the other hand, the attractiveness of the other knowledge institutions was rated much lower. This allows us to admit that the surveyed companies do not perceive the competitive advantage of the region in both the offered knowledge and skills, and human resources of these entities. Similarly, the unfavorable evaluation referred to such bodies as regional development agencies and technology transfer centers.

When assessing the importance of cooperation with institutions of knowledge, a similar picture is painted as to the perception of what they offer. In other words, while the student placements or internships were declared commonly by surveyed enterprises as a popular form of cooperation, when looking at the more “advanced” and knowledge-transfer-oriented forms of cooperation, the picture is not optimistic (Figure 3).

0 10 20 30 40 50 60 70 80

acquisition of ready to use technology projects (M: 0; D: 0)

access to specialized equipment (M: 0; D: 0)

obtaining scientific and research information (M: 0; D: 0)

opening lines of education in the profile corresponding to the requirements of the companies (M: 1; D: 0)

consulting, expertise, training (M: 1; D: 0)

student placements (M: 4; D: 0)

31

33

41

52

56

77


Figure 3. Areas of cooperation with the institutions of knowledge in the Łódź metropolitan area



Definitely the lowest evaluation appeared in such areas as acquiring the results

of R&D made by institutions operating in the region, sharing of specialized equipment and the acquisition of ready-made technological solutions. In other words, subsidiaries of transnational corporations located in the Łódź metropolitan area, evaluate lower both the “technological offer” of the region and the level of its adaptation to their needs.

These findings lead to the identification of the barriers of cooperation of TNCs with regional and local knowledge institutions. Here, the lack of information about the R&D offered in the region and the possibility of technology transfer turned out to be the most common. On the other hand, such barriers as lack of confidence in the institutions of knowledge, their reluctance to cooperate or their small number are not dominant barriers in the eyes of the respondents.

Table 1. Barriers to cooperation with knowledge institutions in the Łódź metropolitan area in the eyes of large multinational companies

Barriers Sum of the assessments

made by respondents on a scale of 1 to 10 No information about the knowledge institutions 82 Limited ability to adapt local solutions to business needs 82 Poor quality of the offer 76 Lack of confidence in the knowledge institutions 45 Too few / no knowledge institutions in the city/region 43 Reluctance of the knowledge institutions to cooperate 43


From the perspective of cities and regions as places of TNCs location, the latter should not only profit from, but also contribute to, the strengthening of the level and the quality of local human capital. In the case of the agglomeration of Łódź and the Łódź metropolitan area, both the directions and the level of this kind of commitment remain diversified. One can notice here that investment in human capital inside subsidiaries of transnational corporations visibly dominates over knowledge transfer via cooperation with their local environment (Figure 4).

The structure of the nationality of staff, divided into various levels of organizational structures of enterprises, was the last element of analysis aimed at the identification of TNCs’ involvement in the development of human capital. The basic conclusion is the observation that the proportion of workers from outside Poland increases with the level of the qualification requirements.


0 20 40 60 80 100 120 140 160

unpaid transfer of innovative solutions to local subcontractors (M: 0; D: 0)

preferentially priced sale of modern solutions to local subcontractors (M: 0; D: 0)

supporting local contractors in the implementation of modern standards and quality management systems (M: 2; D: 0)

participation in the monitoring of regional labor market (M: 2; D: 0)

cooperation with local R&D institutions (M: 1; D: 0)

training conducted among subcontractors (M: 3; D: 0)

partnerships with schools (vocational, universities) in the training of future employees (M: 2; D: 0)

quality audits of subcontractors (M: 5; D: 5)

funding for local staff training (e.g. postgraduate courses) (M: 7; D: 8)

implementation of modern human resource management systems (M: 8; D: 10)

23

30

60

63

64

69

79

89

138

146


Figure 4. The level of involvement of the subsidiaries of transnational corporations from the Łódź metropolitan area in the transfer of innovative solutions and the quality of human capital


Table 2. Structure of the origin of staff in the surveyed companies – the level of human capital internationalization

Staff Local workers [%] Foreign workers [%] Top management 85.60 14.40 Administration 88.33 11.67 Engineers 77.14 22.86 Technicians 86.19 13.81 Production/low end services 99.99 0.010


While in the case of production and low end service workers, one can observe almost exclusively local staff, in the case of management and administration as well as technicians, the share of foreign staff grows to over 10%. The highest share of foreign workers was recorded in relation to engineering staff (22.9%). This structure, compared with the results of previous studies carried out by the author in 2005, lets us conclude that within 5 years, the share of foreign staff has noticeably


increased in 2005 it exceeded 21%, although only for the group of top managers, but the other groups (lower-level managers, technical staff and production workers) did not exceed 3% [Sokołowicz 2008, pp. 107109].

4. Conclusions

The relations between TNCs and regions are a double-sided, since foreign direct investment can both derive from and strengthen locally embedded human capital. Such a consideration became a subject of empirical verification on the territory of the Łódź metropolitan area, where the research results lead to two main conclusions:

1. In the territorial system being the subject of research, human capital is an important, but not the key, location factor of TNCs

2. Another side of these mutual relations – the potentially positive impact of TNCs’ activity of regional development – does not occur in a clearly visible manner.

The subsidiaries of transnational enterprises located in the Łódź metropolitan area, mention among the most important location factors firstly low costs, and secondly a highly qualified labor force. Moreover, while the competences of graduates from local high schools and universities are rated highly, this is not necessarily the case of the potential of local R&D institutions and the skills of their employees. In consequence, the transfer of knowledge from the region to TNCs takes relatively simple forms (like the “capture” of resources by hiring employees directly in enterprises). More sophisticated ways of HR development (networking, inter-firm cooperation, building vertical and horizontal linkages, etc.) occur much more rarely.

On the other hand, a comparison of the structure of employment observed in the region in 2005 and more recently, led to an observation that the labor force in the region is becoming more and more internationalized. However, the observed situation is more derivative of the current stage of economic development, than simply the consequence of an erroneous strategy in the region to attract foreign direct investment.

What seems to be a basic challenge for regional FDI policy, is not an overall reorientation, but the greater attention to other than the traditional (labor costs, communication accessibility) factors of economic development (knowledge, human capital, regional social capital). What can be recommended here, is firstly, the wider promotion of the existing regional knowledge potential and subsequently, stimulating its further development.

It is worth emphasizing that the effectiveness of the proposed action is conditioned by the knowledge according to which the FDI attracting policy should be based not on a sectoral, but rather a territorial approach, referring to the capacity of the Łódź metropolitan area to exhibit territorially-rooted specific competitive advantages, which is hidden in, among other things, human capital. A territorial approach means also the need for the combining in one place the objectives and

The impast of transnational corporations’ activity... 219 actions conducted in such policy areas as: industrial policy, promotion policy, cluster supporting policy, or HC development policy and innovation policy with FDI supporting policy [see Nowakowska 2011, pp. 176178]. This kind of approach still seems to be underappreciated by the regional and local authorities.

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Becker G., Investment in human capital: A theoretical analysis, Journal of Political Economy 1962, vol. 70, pp. 9–49.

Coase R., The nature of the firm, Economica 1937, vol. 4(16), pp. 386–405. Donakowski A., Wpływ bezpośrednich inwestycji zagranicznych na transfer technologii do polskiej

gospodarki; [in:] W. Karaszewski (ed.), Bezpośrednie inwestycje zagraniczne w Polsce, Wydawnictwo Uniwersytetu Mikołaja Kopernika, Toruń 2003, pp. 314–315.

Dunning J.H., Explaining International Production, Unwin Hyman, London 1988. ESPON, Study on Urban Functions, Final Report, march 2007 Grodzicki J., Rola kapitału ludzkiego w rozwoju gospodarki globalnej, Wydawnictwo Uniwersytetu

Gdańskiego, Gdańsk 2003. Lucas Jr R.E., Why doesn’t capital flow from rich to poor countries, American Economic Review

1990, no. 89, pp. 92–96. Mincer J., Investment in human capital and personal income distribution, Journal of Political

Economy 1958, vol. 66, pp. 281–302 Mincer J., Schooling Experience and Learning, Columbia University Press, New York/London 1974. Noorbakhsh F., Paloni A., Youssef A., Human capital and FDI inflows to developing countries: New

empirical evidence, World Development 2001, vol. 29, no. 9, pp. 15931610. Nowakowska A., Przygodzki Z., Sokołowicz M.E., Region w gospodarce opartej na wiedzy. Kapitał

ludzki – innowacje – korporacje transnarodowe, Difin, Warszawa 2011. Nowakowska A., Regionalny wymiar procesów innowacji, Wydawnictwo Uniwersytetu Łódzkiego,

Łódź 2011. Oleksiuk A., Inwestowanie w kapitał ludzki w Polsce, Wydawnictwo ECONOMICUS, Szczecin

2009. Orłowski W., Knowledge economy and knowledge-based growth: Some issues in a transition

economy, [in:] A. Kukliński (ed.), The Knowledge-Based Economy. The European Challenges of the 21st Century, KBN, Warsaw 2000.

Pakulska T., Poniatowska-Jaksch M., Globalne pozyskiwanie zasobów – zarys problemu, Gospodarka Narodowa 2008, nr 12, pp. 1735.

Schultz T.W., Investment in human capital, The American Economic Review 1961, vol. 51(1), pp. 117. Sokołowicz M.E., Region wobec procesów globalizacji – terytorializacja przedsiębiorstw międzynaro-

dowych (na przykładzie regionu łódzkiego), Prace Doktorskie z Zakresu Ekonomii i Zarządzania, Wydawnictwo Uniwersytetu Łódzkiego, Łódź 2008.

Sokołowicz M.E., Strategie lokalne wobec korporacji transnarodowych jako czynnik integracji lub dezintegracji Łódzkiego Obszaru Metropolitalnego, [in:] A. Jewtuchowicz, M. Wójcik (eds.), Łódzka metropolia. Problemy integracji gospodarczej, Wydawnictwo Biblioteka, Łódź 2010, pp. 109124.

UNCTAD, The Competitiveness Challenge: Transnational Corporations and Industrial Restructuring in Developing Countries, Geneva 2000.

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Walukiewicz S., Kapitał ludzki. Skrypt akademicki, Instytut Badań systemowych Polskiej Akademii

Nauk, Warszawa 2010. Williamson O., Market and Hierarchies. Analysis and Antitrust Implications, Free Press, New York 1975. World Bank, Knowledge and Development. World Development Report, Oxford University Press,

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Ekonomiczne, Warszawa 2007.

WPŁYW KORPORACJI TRANSNARODOWYCH NA ROZWÓJ KAPITAŁU LUDZKIEGO W REGIONIE. PRZYKŁAD ŁÓDZKIEGO OBSZARU METROPOLITALNEGO

Streszczenie: Współczesne gospodarki regionalne pozostają otwarte na otoczenie, a jednym z wymiarów tego otwarcia jest goszczenie filii korporacji transnarodowych (KTN). Z tego względu interesującym zagadnieniem jest badanie relacji między kapitałem ludzkim (KL) w regionie a działalnością KTN. Dlatego autor artykułu dokonał empirycznej weryfikacji wpływu KTN na KL w regionie oraz identyfikacji znaczenia tego kapitału jako czynnika lo-kalizacji. Badanie zostało przeprowadzone wśród filii KTN działających na terenie łódzkie-go obszaru metropolitalnego i zatrudniających min. 50 pracowników. Artykuł prezentuje główne elementy badania prowadzące do wniosku, że w badanym regionie KL pozostaje ważnym, ale nie najważniejszym, czynnikiem lokalizacji filii KTN. Ponadto zaobserwowa-no relatywnie słaby pozytywny wpływ KTN na rozwój kapitału ludzkiego w regionie.

Słowa kluczowe: kapitał ludzki, korporacje transnarodowe, rozwój regionalny, łódzki ob-szar metropolitalny.



Anna Jasińska-Biliczak Opole University of Technology

INTERREGIONAL COOPERATION AS THE STIMULATION OF PROINNOVATION ACTIONS –THE CASUAL ANALYSIS

Summary: The subject of the article is to show the usefulness of interregional cooperation as well as the analysis of pro-innovative actions as an effect of the cooperation of the Opol-skie Region and Lower Austria. Regional development depends on a good analysis of its residents’ needs connected with the effective use of resources of the region. The Opolskie Region’s self-government’s actions are a specific kind of the use of best practice. These practices positively affected the SME’s sector and tightened cooperation with the partner-ship region. The undertaken action has brought benefits for enterprises and for self-government during its operation. It will also influence SME’s and the region’s development in the future.

Keywords: innovation, SME’s support, interregional cooperation.

1. Introduction

The subject of the new aim of European cooperation is increasing EU territorial integration as well as providing the synergy for finding joint solutions for existing problems. This is shown, among other things, in an increased trans-border competition by innovations and research and development [Koszyk-Białobrzeska, Kisiel 2004, p. 73].

The present paper has as its aim to show the example of the actions undertaken by self- government units in different regions of the European Union as an example worth imitating for the practitioners. This kind of actions showed that between the higher and lower developed regions cooperation is possible, which brings effects for both of them.

2. Trans-border cooperation and its aims

The “trans-border cooperation” concept is understood as “every action taken together whose aim is the consolidation and further development of neighbouring

222 Anna Jasińska-Biliczak

contacts between communities and territorial self-government of two or more agreeing parts, as well as concluding and signing agreements which are necessary for the realization of those intentions”.1 Trans-border cooperation is also defined as both: neighbourhood cooperation – neighbouring border regions and international cooperation – regional and local authorities, organizations or institutions representing border territories. It is emphasized that trans-border cooperation is related not only to regional and local authorities’ acts, but also to common initiatives of enterprises, organizations and inhabitants.2

Trans-border cooperation can take its course at different levels, can have different forms and concern different aspects of socio-economic life. This can be, for example, cooperation of two communes creating a partnership called “twinning”. Common activities can be also held as the basis of agreements between neighbouring countries. Euro regions are pointed out as the most institutional form of cooperation, because they act as the base of agreements between local and regional level authorities and, in some cases, also with the participation of social and economic subjects. The aim of this kind of cooperation is the undertaking and coordination of actions profitable for both parts in the fields of economy, science, culture, education, as well as developing and facilitating contacts of their inhabitants and enterprises [Żelazko 2004, p. 23].

3. Regional cooperation inside the European Union framework

The widely understood cooperation between regions influences a number of factors. Regionalization on one side, and globalization on the other, are not without importance. The development of cooperation and closer contacts at regional level lead to the development of actions in different areas: social, cultural, economic or environment protection.

A factor favourable for cooperation between particular regions’ development is also the continual increase of regions’ significance within the European Union. Surely, this is the result of the decentralization process and the observed increase in regional awareness and activity.

The EU programme European Transborder Cooperation favours supporting, promoting and the realization of union projects of an international

1 European Frame Convention about Transborder Cooperation Between Communities and Terri-

torial Authorities, document of European Council signed on 21 May 1980 in Madrid. Poland ratified the Convention in April 1993 (Dz.U. z 1993 r., nr 61, poz. 287). The expression “communities and territorial authorities” refers to self-government units, offices and organs realized local and regional tasks and others considered for those by internal law of each country. The mentioned document state legal and structural standards of cooperation.

2 European Charter of Border and Transborder Regions, published in 1981 by European Border Regions Society, changed in 1995.

Interregional cooperation as the stimulation... 223 character within the territory of the entire European Union.3 It has been implemented during the planning period 20072013 with the aid of three types of operational programmes: – trans-border cooperation, whose aim is developing common local and regional

initiatives, – transnational cooperation, directed at European Union territorial integration by

supporting accessibility, sustainable development of urban areas, innovation and environment protection,

– international cooperation, which makes possible the exchange of experiences and best practices among the other things supporting innovation and knowledge-based economy as well as environmental protection. A legal instrument introduced by the EU law which allowed making formalized

cooperation groups by public institutions from different EU countries is the European Group of Territorial Cooperation.4

Then supranational cooperation is recognized as one of the most effective ways of spreading the new ideas or innovative solutions. This kind of cooperation repeatedly leads EU programmes, including the European Social Fund.5

The unquestionable merits of international cooperation are such factors as exchanging experiences, knowledge transfer, parallel working out new solutions or jointly creating new products (for example a service), dividing tasks connected with the achievement of common aims. Also important is exchanging between partners, people who realise the projects or who take part in the projects as well as dividing the costs of producing the common product.

4. Pro-innovation actions in cooperation between regions – the Opolskie Province case study

The actions undertaken by the self-government of the Opolskie Province as the result of supranational cooperation have turned into concrete programmes directed to defined sectors of enterprises – that is to the small and medium enterprises sector. So directed stream of actions underlines the range of the mentioned sector for the regional economy as well as allowing to find that self-government

3 It is the continuation of trans-border, trans-national and international cooperation programmes

realized in the framework of Common Initiative INTERREG III 20042006. 4 Ruling of European Parliament and Council no. 1082/2006 from 5 June 2006 on the matter of

European Group of Territorial Cooperation. Admittedly, the ruling does not have a binding character and is not directly obligatory legal act but article 16 puts into force the duty of establishing by mem-ber countries regulations which will effectively provide when using this regulation. In the Polish legal system the legal basis of this kind of cooperation is the Act dated 27 November 2008 about the Euro-pean Group of Territorial Cooperation (Dz.U. z 2008, nr 218, poz. 1390 z późn. zm.).

5 http://www.equal.org.pl/spolecznosc.php?CID=3&lang=pl (date of access: 28.08.2012).


(regional) authorities have made a conscious choice of the direction of the actions, and the subject of their interest are the real problems of the regional economy. Stimulated sector, which has got the biggest influence at regional development, is the endogenic factor of development and simultaneously creates opportunity of new work places (self-employment) for local inhabitants.

The area of agreement between partners establishing supranational cooperation can be: the realization of a common subject, a similar kind of organization, a similar kind of problem, an action undertaken in favour of a similar target group. All the mentioned factors should be together taken into consideration when planning and looking for a partner from another member country.

The partner of the analysed project is Lower Austria, being the European leader inadapting regional policy of innovations.6

The actions provided at present by the Lower Austria region are concentrated on strengthening the innovation’s leader position as well as spreading of the regional system of innovation model as the standard model (European benchmark). Cooperation with the Opolskie Province enters into the realization of the above mentioned strategy assumptions- Lower Austria agreed to support the Opolskie Province as the partner fulfilling the role of an “expert”, targeting permanent cooperation in the field of adapting the Regional Innovation System.

In the project realized by the regions, Lower Austria is the partner being both adviser” and expert in the range of the programme’s “Technology & Innovation Partner Coaching Methodology” adaptation process into the Opolskie Province as well as making and adapting an effective regional system of innovation.7

“Technology & Innovation Partner Coaching Methodology” is the methodology adopted since 1979, being one of the pillars of the regional system of innovation in Lower Austria. The methodology is based on proactive approach and relies on that in the so-called “Technology & Innovation Partner” – in the Opolskie Province the “Innovation Partner” meets the opposite enterprise’s needs which are defined by direct contact. After defining the enterprise’s needs, the Innovation Partner gives information about services accessible in the region which are provided by public and private institutions, as well as helps to indicate a concrete partner or partners who will support the enterprise in realizing an innovative action. As a result those institutions raise the supported enterprises’ innovation level.

Innovation Partners are in constant contact with both regional “services’ providers” and enterprises acting as a “go-between”.

6 This fact is confirmed by the acquired prizes:

– “The Award of Excellence for Innovative Regions” – European Commission, – “Award for Europe’s most innovative Region – Assembly of European Regions, – Regio Stars Awards – for the programme “Innovation Assistant”.

7 http://oris.opolskie.pl/projekt_oris/273_14_dolna-austria-partner-projektu.html (date of access: 28.08.2012).

Interregional cooperation as the stimulation... 225

Actions undertaken by Innovation Partners also involve organizing specialist workshops for enterprises – subjects are adapted to the needs of enterprises which are recognized during visits in these enterprises.8

The first stage of cooperation (from April 2009 to March 2010) was realized within the framework of the international project entitled “Opening Regional Innovation System in the Opolskie Voivodeship (ORIS)”. The institution which was responsible for the project at the Opolskie Province’s side was the Opolskie Center of Economy Development. The project’s aim was creating an effective Regional Innovation System in the Opolskie Province by opening up international cooperation and using knowledge, best practices as well as the experiences of its partner region – Lower Austria.

One of the project’s elements was a pilot adaptation of an Austrian programme entitled “Innovation Assistant” into the Opolskie Province. The programme aims at strengthening the cooperation between science and business.9

To realize the above mentioned goal, 13 persons were chosen from among scientists (doctoral students and doctors from the range of sciences, applied science or economy) from the Opolskie Province’s academies during a period of three months, as “innovation assistants” in the enterprises embraced by the pilot scheme. The effect of this action is shown in Table 1.

On the basis of the above data it is possible to state that the suggested innovative solutions concern different fields of science as well as a wide range of enterprises. For example, for the enterprise dealing with production, a solution was suggested of work ergonomics, but for the food company the solutions concerned the investment activity. There are significant divergences between the branch of the company and the field of the innovative solution – these divergences attest to the real diagnosis and define the needs of the enterprise as well as the real opportunities of putting the suggested solutions into practice. The data states that the project showed also an equality of opportunities and the gender equality between the 6 women and 7 men participating in the project.

The next stage of the interregional cooperation based on best practice was a continuation of the ORIS programme under the ORIS II10 name (form April 2010 to March 2012). The project was aimed at the continuation of the opening of the Regional Innovation System in the Opolskie Province and implementing best practice in the Regional Innovation Strategy (RSI) of European Union regions. Its practical dimension is an adaptation of Lower Austria’s best practise called

8 http://oris.opolskie.pl/projekt_oris/273_15_na-czym-polega-austriacki-program.html (date of

access: 28.08.2012). 9 http://ocrg.opolskie.pl/a/174/Projekt_ponadnarodowy_ORIS (date of access: 27.08.2012). 10 Project called “ORIS II” realised by Opolskie Center of Economy Development was co-financed

from Human Capital Operational Programme’s funds in frames of activity 8.2.2 “Regional Strategies of Innovation”.


Table 1. Realization of the pilot scheme in the “Innovation Assistant” programme made within the ORIS programme framworkin the Opolskie Province

Sector of enterprise participating

in programme

Domain of suggested innovative solution

Suggested innovative solutions

Gender of Innovation

Assistant

Industrial chemistry – production, research and development

Organic chemistry – research and development

Organization of chemical technological incubator based on unused part of infrastructure in the aim of organization the administrative, research and development background, laboratories and offices used for realization of the Project in research and development fields as well as commercialization of processed solution M

Installment and service of industrial energy equipment

Automation and robotics

Automation and robotics of installment of thermal boiler works – reduction of work runtime and decrease of expenditure of energy and protective gas M

Thermal energy – produce, sending, distribution

Energetics /ecology

Building of associated system adapter for biomass burning in the process of directing burning with coal. Solution will allow simultaneous production of warmth and electricity F

Installment of power lines

Information technologies

Using GPRS/GSME technology for creation of new service in frames of leading activity. Start-up of private access point of APN access and supplying of service related with creation of safe client network for data transmission and adapting the service of data hosting M

Production of electronic and electrotechnical equipment for motor industry

Electromechanics Production of engine steering raising the research and development capability of the enterprise. Building own steering for whole system of steering of a Diesel engine – widening the company’s product range improvement of research and development process, reduction of time and cost of carrying out tests; correction of offered products’ quality M

Plants’ production Irrigation technologies

Applying modern automatic systems of the irrigation with help of dropping and of capillaries - reducing consuming water and lowering the risk of the transfer operation of fungal diseases. Installation will save from generating in the warm weather more energy-efficient and ecological F

Production and adornment of ceramics and Glass

Technologies of heating and production

Modernization of stoves for ceramics by applying the process of cooling a furnace chamber and methods of the recycling of the warmth; improvement in the technology of decorating by buying the new machine to the screen printing. Shortening the production time, removal expenses of the individual product and the protection of the natural environment F

Processing of poultry Heating technologies

Thermal application of the system based on using biomass M

Diagnostics and mechanics of about all-out mass for 3.5 t cars

Car mechanics Innovative method of the exchange of draught-proofing of engine - introduction of a new technology of repair without the need for the disassembly of the engine M

Tele-informationand net services

Information technologies

Drawing up applications of the so-called technology Building Management System (BMS) will allow for more effective comprehensive buildings management M

Production of nutrient for children and infants

Investments management

New practice rules of supporting the planning system and of organizing the investment activity F

Buildings thermo-modernization

Ergonomics and efficiency of work

The new solutions concerning the work studyin the destination of shortening the time of the installation process F

Installment and modernization of energy installation

Ergonomics and efficiency of work

Implementing the long-term plan of training in raising the ability of employees and of applying the measurment and control modern tools F

Source: own elaboration on the basis of [Projekt ponadnarodowy ORIS... 2010, pp. 47].

Interregional cooperation as the stimulation... 227 “Technology and Innovation Partner Coaching Methodology” by creating a new service called the “Innovation Partner”, creating the ORIS11 Portal as the new tool supporting the regional innovation system in the Opolskie Province, and supporting experts from Lower Austria in implementing RSI.

Amongst the results of the project one should mention: – good cooperation between scientists, B+R institutions and SMEs, – better use of the B+R potential in the Opolskie Province, – greater awareness of SMEs of the importance of innovation, – transparent information system about RSI and promoting innovative companies, – partnership between institutions involved in implementing RSI in Lower

Austria and the Opolskie Province, – implementing RSI more effectively in the Opolskie Province.

Amongst the benefits for enterprises participating in the project should be: – simple, free of charge access to the new group of the key clients, – getting detailed information from checking the level of customer’s satisfaction,

positioning the company relating to other anonymous contractors of the same branch,

– involvement in the supranational project, aimed at developing and “opening” Regional Innovation System by the Opolskie Center of Economy Development.

5. Conclusions

To sum up the considerations on the subject of cooperation taken by the Opolskie Province and Lower Austria, it should be stated that the action turned out to be intentional, directed and has brought (and still will be bringing) measurable results for both the involved enterprises and regional development. The interest of entrepreneurs confirms that, and next was translated into the response of the regional authorities in the form of the announcement of the third edition of the supporting programme. Undoubtedly, this is an example of best practice and the ability of introducing, by regional authorities, solutions bringing notable effects for the development of the region.

References

Koszyk-Białobrzeska R., Kisiel R., Euroregionalna współpraca i integracja na przykładzie eurore-gionu Bałtyk, UNESCO, Zakład Poligraficzny UWM, Olszyn 2004.

Projekt ponadnarodowy ORIS Program „Asystent Innowacji” na Opolszczyźnie – działanie pilotażo-we, OCRG, Opole 2010, pp. 47.

Żelazko A., Pojęcie współpracy transgraniczej samorządu terytorialnego, Biuletyn Polskiego Instytutu Spraw Międzynarodowych 2004, nr 24(212), pp. 11371138.

11 www.oris.opolskie.pl.


WSPÓŁPRACA MIĘDZYREGIONALNA STYMULANTEM DZIAŁAŃ PROINNOWACYJNYCH – PRZYKŁAD WOJEWÓDZTWA OPOLSKIEGO

Streszczenie: Artykuł ma na celu wykazanie celowości współpracy między regionami oraz analizę działań proinnowacyjnych wynikających ze współpracy Opolszczyzny z Dolną Au-strią. Rozwój regionu zależy od umiejętnej analizy potrzeb jego mieszkańców oraz efektyw-nego wykorzystania posiadanych zasobów. Działania samorządu województwa opolskiego to szczególny rodzaj stosowania dobrych praktyk, które przyczyniły się do wymiernych efektów dla sektora MŚP oraz zacieśnienia współpracy z regionem partnerskim. Podjęte działanie przyniosło korzyści zarówno dla przedsiębiorców, jak i samorządu już w jego trakcie; będzie także skutkowało rozwojem MŚP, a tym samym regionu, w przyszłości.

Słowa kluczowe: innowacje, wspieranie MŚP, współpraca międzyregionalna.



Franciszek Adamczuk Wrocław University of Economics

CROSS-BORDER COOPERATION OF LOWER SILESIA AND SAXONY – CURRENT RESULTS AND PROSPECTS*

Summary: The objective if this paper is to present the most important aspects of coopera-tion between two European regions at NUTS 2 level, i.e. the Lower Silesian voivodship (also called Lower Silesia) and the region of Saxony, a part of the federal country – Ger-many and more specifically one of its parts, the so called Dresden district. The author at-tempts to carry out another review of the so far accomplished effects resulting from this co-operation and to present their assessment. In the final part of the paper the directions for the improvement of this cooperation and the conclusions regarding the stimulation of cross-border cooperation in this part of Europe were suggested.

Keywords: cross-border cooperation, European regions NUTS 2, bilateral relations between Lower Silesia and Saxony.

1. The concept of cross-border cooperation and other theoretical aspects of the problem

The concept of cross-border cooperation is relatively clear in professional literature. The European Union distinguishes three basic forms of cooperation [Praktyczny podręcznik... 2000, p. 12]: – cross-border cooperation, – interregional cooperation, – transnational cooperation often referred to in other sources as international.

In practice, there are also used such terms as: along-the-border cooperation, Euro-regional cooperation, or cooperation of the, so called, partner entities and even intraregional cooperation [Sztando 2010, pp. 184194]. The cooperation of

* The first comprehensive assessment was performed at the conference held in Wrocław on 29 June

2005 entitled: Lower Silesia and Saxony – partners in the European Union, organized by the Marshal Office of Lower Silesia region.

230 Franciszek Adamczuk

European regions may take the form of an along-the-border cooperation of a cross-border one. Therefore, the latter does not refer exclusively to these local entities (e.g. communes) which are adjacent to each other on both sides of the border, including regions [Pietrzyk 2000, pp. 166–196].

Figure 1. Spatial arrangement of Lowers Silesia and Dresden district

Source: Tschechisches Amt für Statistik, Statistical Office in Wrocław, Statisches Landesamt des Freistaates Sachsen, Kartengrundlage: GfK MACON AG.

The cooperation of regions in professional literature, especially referring to international economic relations, is regarded as one of the forms and manifestations of integration [Budnikowski 2001, pp. 246–256]. It directly influences the development of partners’ economic potential, but most of all affects the development of production, commercial and financial relations [Dickheuer 2004, pp. 16–23]. Bilateral and multilateral advantages are discussed in more detail in contemporary international exchange theories and mainly the modern theories of localization, intra-

Cross-border cooperation of Lower Silesia and Saxony... 231 sectoral commerce and other demand-supply theories [Łoś-Nowak 2000, pp. 38–58]. These advantages are mainly visible in along-the-border areas (borderland) and manifest themselves in the living standards of inhabitants residing in regions cooperating with each other.1 The process of European integration undoubtedly provided adequate arguments for partnership relations to become much stronger [Tomaszewski 2007, p. 104].

For the purposes of this analysis, Lowers Silesia and Saxony will be referred to as the synonyms of common economic space (understood as a common economic area in accordance with EU documents) and especially their endogenous and exogenous potentials. The spatial arrangement of the cooperating regions is presented in Figure 1.

As the presented map shows, the two cooperating regions are adjacent to each other on both sides of the border. Dresden and Wrocław are the regional capitals. It should also be remembered that in the period of real socialism (the Polish People’s Republic and the German Democratic Republic) there was cooperation between the Wrocław voivodship of that time and later the much smaller Jelenia Góra voivodship with the Dresden district. It was, however, centrally managed and ideologically burdened.

2. The characteristics of Lower Silesia and Saxony economic space – selected aspects

The European NUTS classification (The Nomenclature of Territorial Units for Statistics) divides the European Union economic space into territorial units representing different levels by assigning specific number codes to them. Therefore NUTS stands for the hierarchical classification from NUTS 1 to NUTS 5. Germany, as a European Union member, is made up of 16 states (federal countries) – NUTS 1, 41 governmental districts (Regierungsbezirk) – NUTS 2, 439 counties (Kreise) – NUTS 3. Poland is divided into six regions – NUTS 1, 16 voivodships – NUTS 2 and 45 sub-regions – NUTS 3.2

Saxony, as the federal state (Land) of Germany, having been assigned NUTS 1 status, consists of three NUTS 2 regions. They are: Dresden District, Leipzig District and Chemnitz District.3 The Lower Silesia region is therefore referred to, in the system of NUTS classification, as NUTS 2 and covers four NUTS 3 sub-regions (wrocławski sub-region, jeleniogórsko-wałbrzyski sub-region and legnicki

1 Already in 1997 the selection of expert opinions was published entitled International coopera-

tion of regions. 2 NUTS 4 and NUTS 5 levels will not be discussed owing to the specific subject matter of the

study. 3 In professional literature covering the problems of regionalism, especially in German, also ad-

jectives are used as the names of regions, e.g. drezdeński or lipski region.


sub-region and also a metropolitan area – the town of Wrocław).4 These issues are discussed because, while referring to the cooperation of Saxony and Lower Silesia, we have to remember that Saxony is classified as NUTS 1 and the Lower Silesian voivodship as NUTS 2. This decides, to a great extent, about the scope and forms of inter-regional cooperation between Lower Silesia and Saxony. Formally we should refer to it as the cooperation of the Lower Silesian voivodship and the Dresden district.

The common declaration of cooperation between the Lower Silesian voivodship and the Free State of Saxony was signed on 17 September 1999. It stated extending cooperation between the local authorities of the Lower Silesian voivodship and the government of the Free State of Saxony based on the treaty dated 17 June 1991, signed between The Republic of Poland and The Federal Republic of Germany regarding Good neighbourhood and friendly cooperation and based on the exchange of documents stating the establishment of the governmental commission for regional and cross-border cooperation. The objective of such cooperation was to bring the citizens of both regions closer and therefore to support the on-going European integration process.5 The economic characteristics of both regions are presented in Table 2.

Table 2. Basic information on Lower Silesia and Saxony (2010)

Specification Lower Silesia Saxony Area (thousands of km2) 19.9 18.4 Population (in millions) 2.8 4.1 The unemployed registered in thousands 158 230 Registered unemployment rate 13.6 10.8 GDP per 1 inhabitant in accordance with PPS*in thousands 10.5 18.5 Share of regional GDP in national GDP 7.8 3.9

* PPS the unit of purchasing power parity used in international statistics.

Source: EUROSTAT data.

The presented data indicate both the similarities (similar size of the area) and the differences shared by both cooperating regions, of which Saxony represents a more economically developed region, which is indicated by the GDP per inhabitant – higher by about 80% than that of Lower Silesia, besides, Saxony features a lower registered unemployment rate and a definitely larger population number and therefore population density. Both regions are neighbouring ones and their borderline is only 80 km long. The length of the overall Saxony border with Poland

4 Therefore NUTS 1 in this part of Poland covers Lower Silesian and Opolskie voivodships. 5 Lower Silesian voivodship also signed the agreement with the Federal State of Lower Saxony

on 24 August 2000. Lowers Silesian entities cooperate with the State of Brandenburg too.

Cross-border cooperation of Lower Silesia and Saxony... 233 is 123 km. The remaining part – 43 km – is Saxony’s border with the Lubuskie voivodship.6

As far as Saxony is concerned, the first document referring to the spatial development of this German federal state (Land) in new socio-political conditions (German unification) was the document prepared in 1994 and called Landesentwicklungsplan (Federal country development plan), later referred to as LEP. Based on Saxony’s legislation, LEP is a spatial development plan (Raumordnungsplan) for the whole federal state of Saxony. Currently, a new LEP is in preparation and the proposal presented online, calls for making adequate remarks or suggestions.7

Having established the Lower Silesian voivodship, work was initiated to prepare the concept of development in a spatial system for the voivodship itself and for Lower SilesiaSaxony cooperation. Already in October 1999 a draft of the document entitled SaxonyLower Silesia Strategy of Development for INTERREG IIIA/PHARE CBC for the period of 20002006 was prepared. It was the first joint document referring to spatial development and cooperation between Saxony and Lower Silesia. With reference to Saxony, the Lower Silesia Strategy equivalent is the document entitled: “Spatial order and development of the Federal State of Saxony (Raumordnung und Landesentwicklung in Sachsen), developed in 2003 and referred to by the abbreviation of ROLES in the following part of the paper.

The above mentioned document frequently quotes the term “economic space” of Lower Silesia and Saxony. It is difficult to specify when and where the term of common economic space or common economic area, in relation to Lowers Silesia and Saxony, was first used. This terminology appeared in the activities performed by working groups, meetings of spatial planners and regionalists, and was included in the documents at the end of the1990s and also in the mentioned above Development plan (LEP). This problem was also frequently discussed by the Working Group for Lower Silesia-Saxony cooperation, established in 2000.

In the first strategy for Lower Silesia development as a voivodship – region, Lower Silesia was defined as the “Region which connects Poland with Europe” (also understood as connecting it with Saxony – author’s note). The new Strategy of the Lower Silesia voivodship development till 2020 refers to this problem, putting more focus in its marketing aspects: Lower Silesia as the crucial European region. Such an approach extensively raises the importance of the region and puts new pro-development challenges before it. In the new development Strategy of the Lower Silesian Voivodship, currently in preparation, cross-border cooperation is referred to as the crucial development factor.

6 The border between Lower Silesia and The Czech Republic is more than 5 times longer and

amounts to 434 km. 7 http://www.landesentwicklung.sachsen.de/11117.htm.


Saxony (Freistaat Sachsen) prepared its first federal state development plan –

the mentioned above LEP, in 1994. Since 2003, this country has had a new document, currently in force, referring to the issues of spatial order and development, entitled “Spatial order and the development of the Federal State of Saxony”, which is based on the above mentioned study called ROLES.

The problems of the Saxony and Lower Silesia cooperation are discussed in ROLES. The study presents platforms of this cooperation as well as the general advantages which may result from cooperation development with foreign entities. The issues of inter-regional cooperation are visible in two concepts of economic development in Europe, the so called “Blue and Orange Banana” (Europ. Wirtschaftsraum “Blaue Banane” und “Orange Banane”). This area covers both Wrocław and Katowice, and in this respect common space or even economic area can be discussed, which covers both Saxony, Lower and Upper Silesia.

It seems that the cooperation of Lower Silesia and Saxony should be analysed in a more extensive perspective as the cooperation of European regions taking care of sustainable development of this area (space). Polish-German cooperation is presented as the background of the European regional development concept, so called EUREK (EuropäischenRaumordnungskonzept), broadly discussed in ROLES and also highly evaluated.

In the period of 20002012, as has already been pointed out, the Lower Silesia-Saxony Working Group was functioning and operating within seven thematic sub-groups. The meetings were held once a year alternatively – in Saxony and in Lower Silesia – altogether 12 meetings. The sub-groups are listed below: – economy and labour, – environment and farming, – spatial management, communication, border crossings (since 2004 the topics

related to border crossings were limited and reduced to operational issues), – internal issues (crisis management, police, fire brigade), – culture and education, – welfare issues (health care policy, social issues), – coordination.

The number of working sub-groups may change, as well as their name and scope of work. In the period of 20002011 the following meetings were held:

1) 1718 May 2000 in Dresden, 2) 2425 April 2001 in Wrocław, 3) 56 July 2002 in Dresden, 4) 1718 June 2003 in Krzyżowa, 5) 1314 June 2005 in Schmochtitz, 6) 2829 June 2005 in Wrocław, 7) 3031 May 2006 in Dresden 8) 56 June 2007 in Wrocław,

Cross-border cooperation of Lower Silesia and Saxony... 235

9) 1718 June 2008 in St. Marienthal, 10) 910 June 2009 in Wrocław, 11) 2425 June 2010 in Miśnia, 12) 2122 November 2011 in Karpacz, 13) 1213 December 2012 in Dresden. As the above presented schedule indicates, the 12th meeting of the Working

Group was held on 2122 November 2011 in Karpacz. Eight working sub-groups were functioning: 1. Coordination, 2. Education and Sport, 3. Health care and social issues, 4. Economy, 5. Transport, 6. Labour, 7. Environment, farming and forests, 8. Spatial management. Among the most important decisions taken during this meeting the following should be listed:

1) evaluation of the Working Group functioning in 2011, 2) presenting and defining the work schedule for 2012. At this meeting the accomplishments carried out in 2011 were positively

evaluated, among others the Strategy for Western Poland was presented, the project entitled “Together for borderline areas”, activities undertaken within the framework of Polish Presidency in the European Union Council, as well as the project referring to Wrocław as the European Capital of Culture in 2016.

The cooperating regions were not consistent in all matters regarding the evaluation of the problems discussed, their significance hierarchy or financial issues. This should, however, be considered as typical, and it is not the Author’s intention to assess each single detail of the above mentioned matters. What matters most is the fact that there were always present positive intentions and good will towards searching for compromises and solutions favourable for both parties involved.

Lowers Silesia and Saxony represent a very important component of the European economic space and an example of the advancing and extending – in spite of numerous obstacles – regional cooperation in an integrating Europe.8 The proposal of a common economic area (so called “3CIP”) with the Federal State of Brandenburg, Wielkopolskie and the Lubuskie voivodships and the Czech partners, even though slightly underestimated, seems quite interesting. It was initiated and carried out in the period of 2001–2002 and its spatial scope is presented in Figure 2 [Adamczuk 2012, pp. 35–45].

Apart from the above quoted initiative, another cooperation platform has been functioning in PolishGermanCzech borderline areas since 16 February 2006. It was established in Zittau under the name of the trilateral Lower Silesian – Saxony Northern Czech Group (referred to as Group later in the text). This institution was dissolved in 2011. It was not a competitive initiative for the Working Group and its objective was to extend both the scope and forms of cooperation between Lower Silesia and Saxony by their partner located in the northern part of the Czech Republic.

8 The Connecting Office of the Free State of Saxony has been established in Wrocław.


After a few years of its functioning it was, however, decided that it replicated some forms of borderline and cross-border activities and therefore the decision was taken to wind it up. A more detailed discussion regarding this cooperation platform, in the period of 2006–2011, does not constitute the subject matter of this study.

Figure 2. Region “3-CIP” in Europe

Source: http://www.3-cip.com/en/3-CIP_Region/17082.html.

Euroregional cooperation of communes and districts along the borderline areas of three regions: Lower Silesia, Saxony and the Liberecki voivodship (CZ) plays a supplementary role for the cooperation of both regions within the framework of the NeisseNisaNysa Euroregion (ERN) established in 1991. The activities focused on ERN development were undertaken in 1993 and 1994 to be finalized by the approval of a controversial strategy prepared by the Dornier company. Currently, work on a new concept (strategy) preparation for ERN development till 2020 is in progress.

3. Final remarks

Based on the conducted analysis, and having studied numerous documents referring to Lower Silesia and Saxony development, the following conclusions may be put forward:

1. Bilateral cooperation between Lower Silesia and Saxony is both economically and socially justified since it establishes the background, in Polish-German

Cross-border cooperation of Lower Silesia and Saxony... 237 borderline areas, for a common economic zone. So far the conditions for this goal’s accomplishment have not been met. The basic document is still missing, i.e.: The Concept of PolishGerman borderline areas development.

2. The efforts undertaken and carried out by the Working Group should be very positively assessed, in spite of numerous critical remarks and reservations regarding the set goals. This mainly refers to spatial planning on both sides of the border and infrastructure compatibility.

3. Within the regional development strategies covering both partners, i.e. Lower Silesia and Saxony – The Strategy for Lower Silesian Voivodship until 2020 as well as in the Saxony Development Plan (Landesentwicklungsplan F.S. Sachsen), the issues of common economic area establishment require further substantializing. These matters are not dealt with by the, so called, “3CIP” Concept which may, at most, serve as the starting point for preparing the necessary documents. The extension of bilateral cooperation: Lower SilesiaSaxony or CzechSaxony into a trilateral one – manifesting itself in the attempts undertaken by the Lower Silesian–SaxonyNorthern Czech Group represents a particularly valuable form of activity in borderline areas – at the border of the three countries. It is necessary to return to some form of trilateral cooperation in spite of the fact that the results of the above mentioned Group work effects, in the period of 20062011, seemed to be quite limited.

4. The concept of the, so-called “blue banana”, as well as other documents, such as e.g. The study of borderline areas management along the Polish-German border, prepared in 2006 by the Institute of Geography and Spatial Management of the Polish Academy of Science (Polish abbreviation: IGiPZ PAN) may become the starting point for deepening and extending the cooperation of both regions.

The prospects for inter-regional cooperation of Lower Silesia and Saxony seem promising, despite numerous problems in cooperation between Poland and Germany occurring at central level. A stimulus for further stage of cooperation may take the form of appointing the European Group for Territorial Cooperation (EGTC) in the borderline PolishGermanCzech areas [Branda 2009, p. 2].

References

Adamczuk F., Stymulowanie lokalnej przedsiębiorczości na obszarze pogranicza – aspekty instytu-cjonalne i organizacyjne, [in:] R. Brol, A. Sztando (eds.), Gospodarka lokalna w teorii i prakty-ce, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu nr 243, Wrocław 2012.

Branda P., Czy Euroregion Neisse – Nisa – Nysa utworzy Europejskie Ugrupowanie Współpracy Te-rytorialnej (EUWT)?, Euroregion Nysa. Biuletyn Informacyjny 2009, nr 9/10, SGP ERN, Jelenia Góra.

Budnikowski A., Międzynarodowe stosunki gospodarcze, PWE, Warszawa 2001. Dickheuer G., Internationale Wirtschaftsbeziehungen, Oldenburg Verlag 2004.


Łoś-Nowak T., Stosunki międzynarodowe. Teorie – systemy – uczestnicy, Wydawnictwo Uniwersyte-

tu Wrocławskiego, Wrocław 2000. Pietrzyk I., Polityka regionalna Unii Europejskiej i regiony w państwach członkowskich, PWN, War-

szawa 2000. Praktyczny podręcznik współpracy transgranicznej, wyd. trzecie, Stowarzyszenie Europejskich Re-

gionów Granicznych, Gronau 2000. Sztando A., Współpraca intraregionalna – pojęcie, podmioty, cele, instrumenty, [in:] R. Brol (ed.),

Problemy rozwoju regionalnego, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu nr 110, Wrocław 2010.

Toczyńska W., Sartorius W., Zaucha J. (eds.), Międzynarodowa współpraca regionów. Wybór eksper-tyz, Wydawnictwo Przedświt, Warszawa 1997.

Tomaszewski K., Regiony w procesie integracji europejskiej, Wolters Kluwer, Kraków 2007.

WSPÓŁPRACA TRANSGRANICZNA DOLNEGO ŚLĄSKA I SAKSONII – AKTUALNE WYNIKI I PERSPEKTYWY

Streszczenie: Celem tego opracowania jest przedstawienie najważniejszych aspektów współpra-cy między dwoma europejskimi regionami NUTS 2, tj. województwem dolnośląskim (zwanym również Dolnym Śląskiem) i Saksonią stanowiącą część państwa federalnego Niemiec, a zwłasz-cza jej część zwaną okręgiem drezdeńskim. Autor podejmuje próbę przeprowadzenia kolejnej oceny dotychczasowych efektów współpracy oraz przedstawia jej wyniki. W końcowej części ar-tykułu zasugerowane zostały kierunki udoskonalenia tej współpracy oraz wnioski dotyczące dal-szego rozwoju współpracy transgranicznej w tej części Europy.

Słowa kluczowe: współpraca transgraniczna, regiony europejskie NUTS 2, bilateralna współpraca między Dolnym Śląskiem i Saksonią.



Agnieszka Barczak West Pomeranian University of Technology in Szczecin

MANAGING THE PRODUCTION PROCESS OF A GROUP OF AGRICULTURAL FARMS IN THE POMORZE AND MAZURY REGION AND THEIR ECONOMIC DEVELOPMENT

Summary: The aim of this article is an application of the method which enables the maxi-mization of the volume of output on agricultural farms. The research was based on the Pomorze and Mazury region, which was selected after the analysis of the level of gross out-put, final output and commodity production. For the sake of the study, a group of farms spe-cializing in field crops was selected, using data for 20042009, made available by the Polish FADN. The method used for the production optimization is the method of the Lagrange multipliers.

Keywords: agricultural farms, economic development, region.

1. Introduction

Economic development is the term which denotes an increase in various aspects of the standard of human living. Some of them are immeasurable. This means that it covers both quantitative and qualitative changes, bringing on the region from a lower to a higher level of development, which can be related to the concept of economic growth [see Bartkowiak 2003]. It should be noted that optimal production creates opportunities for a faster economic growth, and consequently, for regional development.

Due to the increasing economic disparities between different regions of Poland, it is particularly important to find the means that lead to optimal economic growth. Aligning these disparities is the main objective of the activities of the regional policy [see Churski 2005, p. 13].

It should also be noted that the Polish accession to the European Union, as well as trade liberalization, forced the growth and development of agricultural farms. This is conducive to enlarging their productivity and efficiency, which are the

240 Agnieszka Barczak

conditions of maintaining and improving their competitive position. The concept of growth should be understood as the change of the scale of production and the incurred production factors expenditure of the farms, whereas development is a change of the structure of this expenditure [Czekaj, Józwiak 2009, p. 29].

The differences between the regions can be observed on many levels, and this article concerns a branch of the economy, namely agriculture.

Therefore, the objective of this study is the application of the method which enables the maximization of the volume of output on farms. The research is based on the Pomorze and Mazury region, selected according to the analysis of the level of gross output, final output and commodity production. For consecutive study, a group of farms specializing in field crops was used, using data for 20042008, made available by the Polish FADN. The method used for the optimization of production is the method of Lagrange multipliers. Broader studies are included in the doctoral dissertation [Barczak 2011].

2. Analysis of the Pomorze and Mazury region

For the analysis of the macro-region, some chosen economic variables based on data from the Central Statistical Office for the period 20042008 were used. These include gross output, final output and commodity production.

Gross agricultural output includes [Rocznik statystyczny rolnictwa... 2009, p. 49]: – crop production i.e. unprocessed products of plant origin, harvested in a given

year, – livestock production i.e. the production of animals for slaughter and

unprocessed products of animal origin, increase in livestock (livestock – primary livestock and current livestock); the term livestock covers: cattle, pigs, sheep, horses and poultry,

– products from own production, which have been used for production purposes, such as feed, seed, manure. CSO data does not include agricultural processing, the value of off-farm

services and investment and overhauls of the related services [Rychlik, Kosieradzki 1976, p. 110].

The final agricultural output is defined by the CSO as the sum of commodity production value, the natural consumption of agricultural products from own production, the increase in inventories of plant and animal products and the increase in livestock (livestock – primary livestock and current livestock).

Commodity agricultural production is the sum of agricultural products sales to point-of-purchase and on the markets. Commodity production does not include sales between particular legal entities ranked as the same group of entities as well as sales of agricultural products by agricultural production cooperatives to the members of these cooperatives [Rocznik statystyczny rolnictwa... 2009, p. 49].

Managing the production process... 241

Over the entire study period, gross agricultural output was the lowest in the Pomorze and Mazury region. The highest values were recorded in 20042005 and in 2007 in the regions of Wielkopolska and Śląsk and in 2006 and 2008 in the Mazowsze region and Podlasie (see Table 1).

Table 1. Gross output, final output and commodity production according to various regions of Poland in 20042008

2004 2005 2006 2007 2008

Pomorze and Mazury Gross output [in million PLN]* 11 123 11 857 10 726 12 468 14 355 Final output [in million PLN] 8 584 8 979 8 466 9 853 11 021 Commodity agricultural production [in million PLN] 7 453 8 631 8 096 8 882 10 352

Wielkopolska and Śląsk Gross output [in million PLN] 16 385 18 709 16 240 17 850 20 031 Final output [in million PLN] 12 427 14 278 13 072 14 238 15 158 Commodity agricultural production [in million PLN] 10 797 13,199 12,172 12,746 13,538 Mazowsze and Podlasie Gross output [in million PLN] 14 910 16 295 16 353 17 036 21 883 Final output [in million PLN] 10 940 12 373 13 175 13 450 16 517 Commodity agricultural production [in milioln PLN] 9 565 11 004 11 857 11 590 14 599 Małopolska and Pogórze Gross output [in million PLN] 14 464 16 031 14 266 16 462 19 648 Final output [in million PLN] 10 387 11 709 10 978 12 790 14 447 Commodity agricultural production [in million PLN] 8 415 9 783 9 726 10 075 12 081

* Gross output, final output and commodity production are given in current prices.

Source: own elaboration based on the CSO data.

The values of final output looked similar. Over the study period, the final output was the lowest in the region of Pomorze and Mazury. The highest values were recorded in 20042005 and in 2007 in the region of Wielkopolska and Śląsk and in 2006 and 2008 in the region of Mazowsze and Podlasie.

The lowest commodity production value was recorded in the Pomorze and Mazury region and this trend continued throughout the entire period under study. The highest value of this production was achieved in 20042007 in the region of Wielkopolska and Śląsk, and in 2008 in the region of Mazowsze and Podlasie.

Preliminary analysis based on data published by the Central Statistical Office shows that in the regions of Pomorze and Mazury, over the entire study period, the smallest value of gross output, final output and commodity production, was recorded. Therefore, it seems necessary to analyze production processes on the farms of the Pomorze and Mazury region. Due to the limited size of this article, this is limited to the study of the group of farms specializing in field crops.


3. Methodology of the study

Due to the use of the method of Lagrange multipliers, it should be noted that the non-linear programming task is divided into two groups: without constraints and with constraints (inequality constraints). In both cases the methods for searching for the optimum are iterative numerical methods of solving the non-linear programming task. These methods can be divided into [Pogorzelski 1996, p. 79]:

1) a zero order optimization methods (gradient-less), i.e. those that only search for results on the basis of the value of objective function and constraints if necessary,

2) first order optimization methods (gradient), i.e. those in which in the process of searching for the optimum value, the value of the first derivative of the objective function and if necessary constraints are used,

3) second order optimization methods, in which the Hessian matrix value is used (matrix of second derivatives).

The method of Lagrange multipliers which is used is ranked as the second order optimization method.

Another division (identical as in the case of linear programming) is a division into the programs in canonical form and in standard form. The Lagrange unmarked multipliers method can be classified into programs in canonical form. A characteristic feature of canonical programs is that all the constraints (except for the boundary conditions) are in the form of equations and when it comes to standard programs all constraints are in the form of inequality.

When the objective function is a non-linear function and the constraints are linear functions then the Lagrange function can be used. This is the so called Lagrange unmarked multipliers method.

The production function (objective function) of the form nXXXfY ,,, 21

is maximized (where nXXX ,,, 21 are the decision variables) with the following

constraints: ini bXXXF ,,, 21 , mi ,,2,1 and 0jX nj ,,2,1 .

It is assumed that the functions Y and iF are continuous functions and that

they have the first and second order partial derivatives. Additionally, the production function Y is an increasing function of the variables jX . It means that

0

jX

f , nj ,,2,1 .

When the balance conditions of the task take the form of equations, the

function of variables jX and multipliers i is created which is called the

Lagrange function. It takes the form:

Managing the production process... 243

1

,m

j i j i i j ii

L X f X F X b

, (1)

where:

m

iijii bXF

1

is a function of resource expenditures which characterizes

the use of resources and their constraints. The Lagrange function has the same values (in the area of feasible solutions) as the objective function Y .

A necessary condition for the existence of an extremum is:

0j

L

X

, 1, 2, ,j n , (2)

0i

L

, 1, 2, ,i m s , (3)

or:

1

0m

ii

ij j j

FL f

X X X

, 1, 2, ,j n . (4)

After determining derivatives j

im

ii

j X

F

X

f

1

and 1

mi

iij j

Fu

X X

,

nj ,,2,1 the principle of equality of marginal increments of the product with

the cost function is used and more specifically, with marginal increments of expenditure.

The principle means that the condition of optimality of use of the resource is that the marginal increment of the objective function, caused by the increase of expenditure of any of the resource, was equal to the marginal increment of the resource expenditure function caused by the increase of this resource. If

jj X

u

X

f

, then it is beneficial to increase the expenditure of j – resource,

whereas if jj X

u

X

f

, then it is beneficial to decrease the expenditure of j –

resource [Zegar 1974, pp. 124125]. A necessary condition to achieve the optimal solution is the same marginal

increment of the objective function Y for all resources (per unit of resource expenditure).

A necessary condition for the existence of the function’s extremum nXXXfY ,,, 21 can be determined using the following formula:


1 2

1 2

n

n

ff fXX X

u u uX X X

. (5)

A sufficient condition for the existence of a maximum (minimum) of the Lagrange function is fulfilled when the second derivative determined for the values of variables, which meets the necessary condition of the existence of the extremum, is less (greater) than zero.

4. Findings

According to the Lagrange unmarked multipliers method, the production function, which is the objective function, is maximized under the assumption that the level of incurred expenditure on production will not change. Cost functions are the functions of resources expenditure which characterize the degree of their use and their constraints.

Assumptions concerning the continuity of the production function and its constraints, as well as the first and second order partial derivatives, have been met.

Due to the fact that although the obtained results meet all the assumptions, they are not always possible to introduce in reality and that is why this study is limited only to a short analysis of these results. It should be also kept in mind that the solutions given apply to a group of farms which are diverse internally, and in the estimates the average values were used.

Table 2 presents the Lagrange functions built for a group of farms specializing in field crops, where:

1X labour total labour expenditure total expenditure of human labour

within the farm operational activity, expressed in conversion units of labour in people employed on a full-time basis (2 200 hours/year);

2X land utilized agricultural area the total area of land used for

agriculture consisting of: land ownership, land additionally leased for one year or longer, the land utilized on the principle of participation in harvesting with the owner as well as fallow and uncultivated land, does not include mushroom cultivation area, additionally leased land for the period of time less than 1 year, wooded land and other land, expressed in hectares;

3X capital total assets includes only assets owned by the farmer (fixed

assets and current assets) in PLN. A non-linear optimization method was used to determine the optimal value of

expenditure, which enables the maximization of the value of output. The study of the value of second derivatives, under the adopted assumptions, indicates that for this group of farms over the entire period under study, the maximum values were obtained.

Managing the production process... 245 Table 2. Lagrange functions for a group of farms specializing in field crops

Years Model 2004

1 2 3

1 2 3

0.2335 0.4195 0.545519.83

152176.44 37579.61 1873.41 0.0731 346794.7

L X X X

X X X

2005

1 2 3

1 2 3

0.3251 0.3562 0.558118.85

133558.80 27183.30 1753.08 0.1227 472245.0

L X X X

X X X

2006

1 2 3

1 2 3

0.3677 0.3443 0.478954.67

93867.33 36243.51 1983.37 0.0948 607119.0

L X X X

X X X

2007

1 2 3

1 2 3

0.3066 0.4729 0.440364.15

278931.51 85546.74 1018.27 0.2261 598424.0

L X X X

X X X

2008

1 2 3

1 2 3

0.4044 0.4119 0.470442.28

136702.62 48975.27 2932.32 0.0716 634623.0

L X X X

X X X

Source: own elaboration based on the Polish FADN data.

Figure 1. The values of production of the group of farms specializing in field crops, actual and determined with the use of the method of Lagrange unmarked multipliers

Source: own elaboration based on the Polish FADN data.

For the group of farms specializing in field crops, over the entire period under study, the Lagrange unmarked multipliers method generated values of production which are higher than the actual production (see Figure 1).

In 2004, in order to achieve a higher production by 45.59% (180 786.49 PLN), the method suggests a reduction of labour and land expenditure, respectively, by 10.80% (682 hours/year) and 34.76% (49.67 ha), and at the same time, an increase in capital expenditure by 119.29% (1 160 747.17 PLN).

In order to achieve production which is higher by 16.09% (83 195.73 PLN), in the consecutive year, the method indicates the need to increase the labour expenditure by


94.85% (6,270 hours/year) and capital expenditure by 96.27% (1 090 516.64 PLN) and at the same time reduce land expenditure by 47.73% (90.69 ha).

A similar solution was generated for 2006, in which a 13.53% (77 825.48 PLN) increase in production could be achieved by increasing labour expenditure by 49.28% (4,334 hours/year) and capital expenditure by 198.66% (2 972 478.06 PLN) and at the same time reduce land expenditure by 54.79% (123.82 ha).

In 2007, in order to reach a 4.71% (30 628.23 PLN) of increase in production, the method indicated a reduction in employment and capital expenditure, respectively by 14.08% (924 hours/year) and 8.60% (131 818.79 PLN) and at the same time an increase in land expenditure by 74.89% (143.04 ha).

The increase in production by 8.23% (48 230.07 PLN) in 2008, according to the obtained solution, could be reached after the reduction of land expenditure by 53.48% (96.80 ha) and at the same time an increase in labour expenditure by 64.99% (4 290 hours/year) and capital expenditure by 101.36% (1 982 562.96 PLN).

5. Conclusion

The analysis relates to the data from a group of farms of one type. Therefore, the conclusions are preliminary. In order to make them more general, the area of research ought to be expanded to all types of farming. At the same time, it should be kept in mind that the group of farms under study is diverse internally. In order to make the results more meaningful, they should be divided into sub-groups with similar characteristics so that it is possible to minimize the differences.

All things considered, it can be said that the analysis has made it possible to use the method of the Lagrange multipliers which enables the maximization of the volume of output in the group of farms specializing in field crops. Its application in practice can be helpful in the optimization of production in agricultural farms according to agricultural types. The introduction of the method will enable an increase, which is a change in the scale of production, in incurred production factors expenditure and development – a change of the structure of incurred expenditure.

References

Barczak A., Wykorzystanie metody mnożników Lagrange’a do oceny efektywności produkcji na przy-kładzie wybranych grup gospodarstw rolnych (PhD dissertation), IERiGŻ PIB, Warszawa 2011.

Bartkowiak R., Historia myśli ekonomicznej, PWE, Warszawa 2003. Churski P., Czynniki rozwoju regionalnego w świetle koncepcji teoretycznych, [in:] Gospodarka re-

gionu na Jednolitym Rynku Europejskim. Wybrane zagadnienia, Zeszyty Naukowe Wyższej Szkoły Humanistyczno-Ekonomicznej we Włocławku. Nauki ekonomiczne, 2005 T. XIX. Z. 3, pp. 1330.

Managing the production process... 247 Czekaj T., Józwiak W., Bariery wzrostu i rozwoju indywidualnych gospodarstw rolnych w makrore-

gionach Polski, Roczniki Nauk Rolniczych 2009, seria G, T. 96, z. 4, pp. 2940. Pogorzelski W., Teoria systemów i metody optymalizacji, Oficyna Wydawnicza Politechniki War-

szawska, Warszawa 1996. Rocznik statystyczny rolnictwa. Roczniki branżowe, GUS, Warszawa 2009. Rychlik T., Kosieradzki M., Podstawowe pojęcia w ekonomice rolnictwa, PWRiL, Warszawa 1976. Zegar J.S., Wybrane zagadnienia rachunku ekonomicznego w rolnictwie, Szkoła Główna Planowania

i Statystyki, Warszawa 1974.

ZARZĄDZANIE PROCESEM PRODUKCJI GRUPY GOSPODARSTW ROLNYCH REGIONU POMORZE I MAZURY Z UWZGLĘDNIENIEM POZIOMU ROZWOJU GOSPODARCZEGO

Streszczenie: Celem niniejszego opracowania jest zastosowanie metody umożliwiającej maksymalizowanie wielkości produkcji w gospodarstwach rolnych. Przeprowadzone bada-nia dotyczą regionu Pomorze i Mazury, który został wybrany po dokonaniu analizy poziomu produkcji globalnej, końcowej i towarowej. Do badania wybrano grupę gospodarstw rolnych specjalizujących się w uprawach polowych, wykorzystując dane za lata 20042009, udo-stępnione przez Polski FADN. Metodą wykorzystaną do optymalizacji produkcji jest meto-da mnożników Lagrange’a.

Słowa kluczowe: gospodarstwa rolne, rozwój gospodarczy, region.



Tomasz Dorożyński, Wojciech Urbaniak University of Łódź

EXPERIENCES OF COUNTY EMPLOYMENT AGENCIES IN THE USE OF EU STRUCTURAL FUNDS TO PROMOTE EMPLOYMENT. THE CASE OF THE ŁÓDŹ VOIVODESHIP

Summary: EU funds are, among other means, deployed to promote employment and pre-vent unemployment. The ESF plays a special role here as the main source of funding for projects that support the labour market. Aid is addressed mainly to natural persons disadvan-taged on the labour market and those at risk of social exclusion. The paper focuses on the evaluation of the operations of labour market institutions in respect of the use of EU struc-tural funds. The premise for such an approach was the difference in opinions about the effi-ciency and efficacy of the use of EU resources on the labour market. Hence, the main objec-tive of the paper is to assess the operations of county employment agencies in the Łódź voivodeship in the field of employment promotion and counteracting unemployment in the context of the systemic projects co-financed with the ESF.

Keywords: EU structural funds, county employment agencies, Łódź voivodeship.

1. Introduction

One of the aims of EU structural funds is to promote employment and prevent unemployment. The European Social Fund (ESF) plays a special role here as the main funding source for projects supporting the labour market. The aid is addressed mainly to natural persons disadvantaged on the labour market and at risk of social exclusion.

The beneficiaries of ESF in Poland are mainly state-financed units, non-public entities, non-governmental organizations and entrepreneurs. Still, the main role in shaping the regional and local employment policy is that of the public employment services.

Experiences of county employment agencies... 249

In our paper, we have focused on the description and functional assessment of labour market institutions regarding the use of EU structural funds. The reason for taking up this issue were varied opinions on the efficiency of the use of EU funds on the labour market, in particular under the so called systemic projects run by county employment agencies (Powiatowe Urzędy Pracy; henceforth PUPs).

Therefore, the main aim of the paper is to evaluate the opinions of PUPs with respect to their operations designed to promote employment and prevent unemployment in the context of systemic projects co-funded by the ESF under the Human Capital Operational Programme (HCOP).

2. Impact of structural funds on the domestic labour market

In 20042010 the impact of EU funds on the Polish economy was relatively insignificant. The situation improved considerably in 20092010, mainly owing to the accumulation of payments under the National Development Plan and the gradual implementation of new programmes. According to forecasts, the biggest impact of EU funds on economic growth is expected in 20132015.

According to the MaMoR3 and HERMIN models, in 2010 the absorption of EU funds increased the employment rate in the 1564 age group by 0.71.2 pp, increased the total number of the employed by 188,000315,000 and reduced the unemployment rate by 1.11.8 pp in relation to the scenario without the EU funds. Much higher indices are expected in 20132015. Employment should increase by 1.61.7 pp and unemployment should decrease by 2.42.7 pp. It is estimated that the number of the employed may even be higher by 450,000 compared to the no EU funds scenario.

The forecasts, based on the EuImpactModIII model, are even more optimistic. They predict that the positive impact of EU funds on the labour market will peak in 2013, when the employment rate will be higher by 5.2 pp, unemployment lower by 3.5 pp and the total number of the employed higher by 1,356,000.

The dynamics of EU funds spending seems to validate the predictions of the third model, according to which the accumulation of the positive effects of EU funds disbursement is more likely in 2013 than in successive years. Nevertheless, the scale of the impact seems to be rather optimistic, especially in the light of the current economic problems. Besides, according to numerous microeconomic evaluation studies, the effects of EU projects in promoting employment and curbing unemployment are less significant than expected [Wpływ polityki spójności... 2011].

250 Tomasz Dorożyński, Wojciech Urbaniak

3. The impact of PUP systemic projects on the labour market

as shown in evaluation studies

To start with, it needs to be stressed that the general very negative assessment of the efficiency of the PUP systemic projects seems unjustified. This is evidenced by the percentage of the unemployed and jobseekers who took up employment within 6 months after they completed their participation in the project. In 2010 the share was 47% for the systemic measure 6.1.3 HCOP and was higher than for the whole of Priority VI (45%). It is worth adding that 54% of those who took part in the PUP systemic projects in 2009 still worked or ran their own businesses in 2010, yet only 41% of them believe that they owe their employment to their participation in the project.

However, not all the unemployed are the beneficiaries of systemic projects. Extra support in 2009–2010 was granted to nearly 315,000 people, i.e. 7.08% of the unemployed in 2009 and 9.26% in 2010. In the Lódź voivodeship the percentages were 8.97% and 10.13% respectively.1 However, systemic projects generally do not differ much from the “normal” PUP operations in activating the unemployed. The support is limited to the instruments listed in the Act on Employment Promotion and Labour Market Institutions. The only fundamental difference introduced by systemic projects is the larger scale of the activation thanks to more resources available in counties.

Thus, employment agencies are extremely restricted in implementing systemic projects, compared to the beneficiaries selected in competitive calls for proposals, who can flexibly choose the forms and methods of the support and shape the management of projects. In practice, systemic projects boil down to fulfilling statutory tasks only in a slightly different formula and with extra formal duties resulting from the specificity of EU projects, e.g. payment applications, reporting, information and promotion, eligibility.

The agencies (like any other legal business entity) may, of course, implement projects selected on general terms in calls for proposals. Some do that voluntarily, with varying degrees of success, simply seeking extra funds from county authorities and the management of the agency.

Projects co-funded by ESF differ from other PUP activities in that they address the aid to target groups, mostly to persons disadvantaged on the labour market [Act on Employment Promotion... 2009, art. 49]. Today these are mainly people under 25, often with higher education. An issue in this case is how to select the right people for a project. Employment agencies, seeking to achieve specific result indicators, usually select clients with the best chances to take up employment within a short period. Those in a really difficult situation are offered basic aid from

1 Some of these persons may appear in the statistics twice as they participate in a systemic pro-

ject again.

Experiences of county employment agencies... 251 the Labour Fund. Besides, systemic projects deliver only the so-called active labour market measures, meaning e.g. they may not offer unemployment benefits. All the above may lead to the efficiency of intervention under systemic projects that is statistically higher than the average for the overall activities of county employment services.

Efficiency assessment must take into account the management of systemic projects, and two issues are relevant here. Firstly, PUPs’ personnel is in general well-qualified, experienced and familiar with the way in which public employment agencies operate and how EU projects should be prepared and implemented. That follows from the standards used in public employment services and from the fact that they were the first to operate similar projects under the Operational Programme Human Resources Development since 2004. On the other hand, because of the restrictions resulting from the systemic project funding rules, extra duties are usually not paid for and the bulk of project management costs are borne by the local government. Therefore, the employees operating the projects are worse off than those involved in commercial projects (lower pay, worse workplace conditions, smaller teams, worse equipment) with similar responsibilities. The result is high staff turnover and migration of employees to the private sector.

The list of impediments faced by the beneficiaries of systemic projects is long. Their elimination may help to improve the efficiency of the projects. The biggest problems stem from project guidelines and procedures and not from the law or the specificity of the labour market. Therefore, to change them would not involve undue costs or difficulties. Some guidelines would only need clarifying and simplifying or even lifting. Experts agree that the present situation is not conducive to achieving notable effects. What is visible is the primacy of procedures and control over the essence of the projects. The main aim, which is pursued unconditionally, is to spend 100% of the allocation.

The effects of systemic projects depend not only on the organizers but also on the participants. In 2007–2011, over 538,000 people took advantage of PUP systemic projects and 472,000 completed them according to plan. The majority of the participants were under 25 (44%). The average participant’s education was considerably higher than the average for the total of the unemployed in Poland. In cities, 17% of the participants had tertiary education qualifications, compared to 13% in the country. Among all the unemployed, the ratio is only 10%. At the same time, people with few or no qualifications rarely take part in projects. As already mentioned, this may stem from the anxiety about the so-called “difficult customer” and potential discipline problems (attendance, examinations, completing successive stages of the project, duration of effects). It is worth noticing that the share of long-term unemployed in the projects is too small in relation to the total of the unemployed in Poland (about 50%).

Another significant problem is the availability of systemic projects to potential candidates. There are two basic barriers here. Firstly, the prevailing group (57%)


are city dwellers. It is necessary, therefore, to facilitate participation to rural residents, e.g. through adequate information, promotion and transport facilitation. Secondly, there remains the problem of the unemployed taking permanent care of dependants (children, elderly persons). This would require the allocation of extra financial support during the project. Also, it seems necessary to subsidize this aid directly after starting a job, e.g. during the next 6 months.

Flaws in systemic projects are sometimes the fault of the participants. At present, the biggest problem is the turnover in the target group. In 20072011 the dropout rate was 7%. For the most part, the people who quit are young and with low qualifications, very often the dropouts are trainees who take up odd jobs or seasonal jobs.

4. Results of direct study for the Łódź voivodeship

Below we present the results of a direct study of PUPs’ EU projects. The general population included 23 PUPs in the Lódź voivodeship. The study was conducted on the whole community and covered all the agencies. The respondents were EU programme specialists. A questionnaire was used that consisted of 23 questions (classifying q., behaviour q., attitude q.) The study was partly structured.

4.1. Benefits from operating EU projects

The evaluation of the projects was based on the analysis of the system of project delivery. In an open-ended question, PUPs agreed that the main benefit was the extension of the scope of activities addressed to the unemployed (“Through projects the agency can better promote employment, develop human resources and activate unemployed persons”).

Thanks to EU funds, various forms of employment support have become more available and the number of beneficiaries has grown. Thanks to the relatively high quality of services to the unemployed, their position on the labour market has improved and their chances of finding employment have grown (“Unemployed people acquire practical skills [...] They improve their vocational qualifications. [...] Entrepreneurship is promoted. [...] Support from a vocational counsellor confirms the sense of applicants’ actions”). The image of the agencies as institutions supporting the unemployed has improved. So has people’s awareness that training courses and workshops are useful.

The PUPs assess the impact of EU projects on the labour market as moderately positive. They realize that the rate of unemployment is determined mostly by economic activity, and with the present slowdown the number of the unemployed has grown, despite the implementation of EU programmes. It is believed that in order to fight unemployment more efficiently, more funds are needed.

Experiences of county employment agencies... 253 Table 1. Impact of EU funds on the labour market in the Łódź voivodeship as perceived by PUPs

Evaluation criteria

Evaluation

very good (5)

good (4)

neither good

nor bad (3)

bad (2)very bad (1)

no answer (hard

to tell)

total average

number of answers Employment rate 3 19 1 23 4.14 Unemployment rate 2 15 5 1 23 3.86 Workers’ qualifications 3 19 1 23 4.14 Structure of employment 19 3 1 23 3.86 Migrations 4 10 1 8 23 3.13 Average wage 5 13 1 2 2 23 3.00


Most of the PUPs believe that the participation in EU educational and training projects improves the qualifications of the unemployed and increases their chances of finding a job. Regarding the usefulness of particular forms of aid, the opinions varied. Vocational training and traineeships were found the most useful. The PUPs also admitted that these forms were the most popular with the jobseekers. E-learning has been found the least useful, maybe because it is still a relatively new and uncommon form, its efficiency and usefulness has not been thoroughly reviewed yet.

Table 2. Impact of educational and training schemes on the qualifications of the unemployed as perceived by PUPs

Evaluation criteria

Evaluation

very good (5)

good (4)

neither good

nor bad (3)

bad (2)very bad (1)

no answer (hard

to tell)

total average

number of answers Job trainings/workshops 8 13 2 23 4.38 Language courses 5 12 1 1 4 23 4.11 Post-graduate studies 6 9 6 2 23 4.00 Higher education studies 5 9 6 3 23 3.95 Traineeships 12 9 2 23 4.57 E-learning 2 5 5 2 9 23 3.50


EU competitive bidding programmes were oriented at the agencies’ own staff. Half the respondents believe that the job training and higher education studies improve the qualifications and the professionalism of the staff in their activities addressed to the unemployed and by that improve the quality of their services. New


Table 3. Benefits to PUPs resulting from EU projects

Category Percentage of answers

(23 = 100)* Number

of answers Increasing the number of beneficiaries 100 23 Staff gaining experience and improving skills 56.52 13 Possibility of employing extra staff, including counsellors and employment agents

21.74

5

* Open-ended question with no limit to the number of answers.

Source: own elaboration. workers (vocational counsellors, employment agents) employed to operate new projects improve and speed up the serving of jobseekers. High marks were also given to the possibility of rewarding the regular staff involved in projects (though this only applies to projects awarded in tenders) and upgrading the workplace environment. EU funds were relatively seldom used to survey the county labour market for information about desirable forms of action and target groups.

4.2. Obstacles in project implementation

The study was an attempt to indicate and systematize the factors which impede the participation of PUPs in EU projects. To this purpose, a number of open-ended questions were asked. First, obstacles were described which were present throughout the whole project, next, those encountered in successive stages.

The agencies were very critical about the frequent changes of document templates, application generating tools, regulations and their interpretations. Because of the volatility in this field they cannot rely on the already acquired knowledge and have to constantly learn new regulations and guidelines. More time is consumed by reporting, payment applications or applications for projects similar to the already completed ones. The respondents were particularly critical about any changes in rules introduced during project implementation, e.g. regarding age categories and eligibility of costs. Ambiguous rules and the long waiting time for official interpretations, especially when it comes to new regulations, were found to be serious barriers by some agencies.

Also, some agencies have voiced criticism about having to go through numerous formalities, often unnecessary in their opinion, and about extensive reporting requirements. Others, however, did not find that a big problem. Many reservations were made about the large number of quantity indicators and their standardization (“Results and indicators are very strict; one tends to think about figures instead of people; sometimes a project seems to be geared to achieving required indicators and these do not necessarily fit the situation in the county”). Binding norms are often not only unrealistic but also difficult to attain (“For example, for a traineeship it is recommended that 40% of the trainees should be

Experiences of county employment agencies... 255 employed by the institution and that is beyond the competence of the employment agency”). The PUPs generally believe that the system is geared towards complying with norms and not towards the efficient use of resources.

The lack of extra remuneration for systemic project operators has been found to be unjust. More duties are imposed without any form of bonus, giving no incentive for better work. The PUPs assess project funds to be insufficient. The demand for their services is so high that the projects, including statutory activities, can satisfy it only in part.

Table 4. Obstacles in the overall implementation of EU projects in the Łódź voivodeship experienced by PUPs


(23 = 100)* Number

of answers Frequent change of regulations and documents: 47.83 11 change of guidelines and regulations during a project 26.09 6 change of document templates 21.74 5 Requirement of extensive reports; generating numerous documents 34.78 8 Different interpretations of regulations 13.04 3 Too long time of waiting for official interpretations Strict quantitative norms (indicators) 26.09 6 Limited project funding 52.17 12 No extra remuneration for project operators 13.04 3 Own contribution required 13.04 3



There are four stages in project management: preparation, implementation, financial settlement, control. In the preparation stage there are problems with the application generating tool. This results from the insufficient number of characters allowed in descriptions, which makes it impossible to elaborate on issues (a requirement, incidentally). There have been many reservations about the last--minute calls for applications for systemic projects and the long processing procedure. As a result, the time for spending the funds was short.

Table 5. Obstacles in project preparation stage


(23 = 100)* Number

of answers Difficulty in handling application generating tool 26.09 6 Long period of project assessment 39.13 9 No obstacles 26.09 6




In the implementation stage, significant difficulty is caused by the targeted

unemployed persons. Some agencies signalled problems with recruitment. The common problem for most PUPs is trainees dropping out of the project. This causes enormous difficulty because in order to achieve desired quantitative results and indicators, a new recruitment has to be announced and new participants have to be found. They join a project when it is already under way, which weakens the effects (“The biggest barrier is that some participants sometimes drop out [...] This is very troublesome because we need to find a replacement quickly”). Those who leave, usually do not explain their decision. For some agencies a big obstacle is the long waiting for funds, which puts their financial liquidity at risk.

Table 6. Obstacles in the project implementation stage


(23 = 100)* Number

of answers Dropping out of the project 65.22 15 Late transfers of tranches 34.78 8



Table 7. Obstacles in the financial settlement stage


(23 = 100)* Number

of answers Long settlement process 13.04 3 No problems 56.52 13



There have been no major reservations regarding the quality of controls which pointed only at minor technical slips.

Table 8. Irregularities found during control activities


(23 = 100)* Number

of answers Minor formal errors 30.43 7 erroneous description in document/ column 21.74 5 Faulty coding / marking 21.74 5 unattractive logo (in controller’s opinion) 13.04 3 No irregularities 39.13 9



Experiences of county employment agencies... 257

The settlement of a project is not a problem for most PUPs. In some opinions, it is “quite easy”. Such a positive evaluation probably results from accumulated experience and is enhanced by good collaboration with the provincial employment agency. Occasionally, there have been problems with completing a project due to a long settlement process.

5. Conclusions

The assessment of systemic projects run by PUPs and of their impact on the domestic labour market is generally positive. The above quoted findings justify the conclusion that EU funds have helped ameliorate the situation on the labour market, mainly by increasing employment, reducing unemployment and activating disadvantaged or vulnerable social groups, particularly the disabled, those at risk of social exclusion and the unemployed under 25. However, the range of support is limited and does not meet all the needs.

The HCOP has streamlined the operations of public employment services. It has made possible the raising of standards of assistance to the unemployed, the implementation of new methods and instruments of vocational and social activation of the unemployed, the strengthening of collaboration with external stakeholders, including employers. It has also made possible the financing of studies and market analyses, although PUPs conduct these relatively seldom.

In addition, the HCOP finances operations targeted at public employment agencies and their staff. This helps them upgrade their qualifications e.g. through the system of on-the-job training and post-graduate studies. By joining international projects, they can learn high standards from others, both in Poland and abroad. Also, there has been considerable improvement in working conditions, including remuneration (although mainly for those who run projects selected in competitive bids) and workplace environment. The career path has been outlined clearly, which helps limit staff turnover and retain experienced employees in the local administration.

Lastly, an important benefit highlighted by the PUPs is the improvement of their image as institutions supporting the unemployed. The public has become more aware of the usefulness of agencies’ activities.

References

Act on Employment Promotion and Labour Market Institutions, (consolidated text), Journal of Laws (Dz.U.) of 2004, no. 99, item 1001.

Data of the Ministry of Regional Development, www.mrr.gov.pl. Dorożyński T., Urbaniak W., Rola funduszy strukturalnych UE w promocji zatrudnienia w świetle

doświadczeń powiatowych urzędów pracy w województwie łódzkim, [in:] J. Świerkocki (ed.),


Rola funduszy strukturalnych Unii Europejskiej w rozwoju kapitału ludzkiego i społecznego w regionie łódzkim, Wydawnictwo Uniwersytetu Łódzkiego, Łódź 2012.

Ocena jakości projektów systemowych realizowanych w ramach poddziałania 6.1.3 PO KL, GHK Polska Sp. z o.o., commissioned by the Department of ESF Management in the Ministry of Re-gional Development, Warsaw 2011.

Wpływ polityki spójności na rozwój społeczno-gospodarczy Polski w latach 2004-2015 w świetle wy-ników badań makroekonomicznych, Ministerstwo Rozwoju Regionalnego, Warszawa 2011.

DOŚWIADCZENIA POWIATOWYCH URZĘDÓW PRACY W ZAKRESIE WYKORZYSTYWANIA FUNDUSZY STRUKTURALNYCH UE W CELU PROMOCJI ZATRUDNIENIA. PRZYKŁAD WOJEWÓDZTWA ŁÓDZKIEGO

Streszczenie: Fundusze strukturalne UE mają m.in. promować zatrudnienie i przeciwdzia-łać bezrobociu. Szczególna rola przypada Europejskiemu Funduszowi Społecznemu. Adre-satami pomocy są przede wszystkim osoby fizyczne defaworyzowane na rynku pracy oraz zagrożone wykluczeniem społecznym. W artykule skoncentrowano się na charakterystyce i ocenie funkcjonowania instytucji rynku pracy w świetle wykorzystania funduszy struktural-nych UE. Przesłanką do podjęcia tej problematyki były niejednoznaczne opinie co do sku-teczności i efektywności wykorzystania środków unijnych, w szczególności w ramach pro-jektów systemowych powiatowych urzędów pracy. Dlatego głównym celem artykułu jest ocena działalności urzędów pracy w regionie łódzkim w zakresie promocji zatrudnienia i przeciwdziałania bezrobociu w świetle projektów systemowych współfinansowanych z EFS.

Słowa kluczowe: fundusze strukturalne UE, powiatowe urzędy pracy, region łódzki.



Małgorzata Golińska-Pieszyńska Łódź University of Technology

CONTEMPORARY INNOVATIVE PRACTICES IN A REGIONAL CONTEXT OF THE ŁÓDŹ REGION

Summary: Organizations maintain or improve their position on the market as a result of ef-fective innovations that are a socially complex and relatively difficult phenomenon, as they include science, technology, production and community. While assuming the criterion of the complexity of an innovative process, one has to aim at the creation of innovations based on networks. A search for various sources of support, and joining them into a network that will help in the implementation of a new innovative concept, is a challenge for creative entrepre-neurs. The attempt was made to investigate the aims of the Łódź region at indicating good patterns of innovative activities that will certainly influence the increase of competitiveness of this region.

Keywords: innovations, region, innovative networks.

1. Introduction

Although the terms created in the previous century, such as a knowledge-based society and a knowledge-based economy have stood the test of time, as the result of the creation of mechanisms of world economy, globalisation and various regional initiatives where an attempt to implement the Lisbon Strategy in the European Union was one of them, today it is necessary to apply a new approach to the issue of innovation and innovativeness. It turns out that the model approach to innovation, to the functioning of innovation systems and building learning regions, does not work when confronted with the world crisis we are currently experiencing. Therefore, it is necessary to consider what the current innovative practices are like, whether they stopped at the point of deliberation on the so-called innovative policies or if there is a constant return to the models of innovative systems and an elaboration of almost schematic policies and strategies.

The aim of this article is to prqesent and summarize selected initiatives and innovative practices in the region of Łódź, as the fact that the actual process of creating innovations should not be just a subject of interest of the authorities and

260 Małgorzata Golińska-Pieszyńska

various institutions in the region, but it should be within the reach of organizations and the entire society. It has to be mentioned that in the micro-perspective, special attention should be paid to the elaboration of the concept of the innovative process in the aspect of its management.

2. Innovation compared with the concept of innovative process

Innovations have been the subject of various studies for many years, starting from the studies of individual researchers and their teams, through research inspired by various scientific institutions and local, national and international organizations, ending with systematic statistical surveys. The scope of the notion of innovation is very broad, it has many definitions, and many scientists have interpreted its meaning (e.g. G. Altschuler, P. Drucker), however, it has to be said that the term “innovation” was introduced to economic sciences by J. Schumpeter [Schumpeter 1960, p. 60] in the previous century. In contemporary literature [Berschi, Malerba, Orsegnio 2000, pp. 389390], two paths of Schumpeter’s innovation are analysed. The first path is characterized by the so-called “creative destruction”, which is connected with the expansion of the innovative base through the entry of new innovators whereas the other is “creative accumulation” connected with the predominance of big companies and high barriers of entry (specific technologies, unique qualifications in the scope of research and development activity, production, distribution and the result of owned non-material resources in the form of e.g. external relations).

New models of innovative activities that are created are the new ways of generating innovations in an organization. From the point of view of an innovative process realised in an organization, one has to assume that the creation and gathering of ideas are the beginning of this process, regardless of the place of their creation. The next stages concern the choice of those ideas that have a chance for success, and a decision is then made on the method of their realisation and implementation, meaning introducing the innovation into organizational reality. One has to consider the fact that in order to achieve rational benefits from the “original technical creativity”, the innovative process cannot be a uniform unity, but it has to be composed of stages, in which proper measures and techniques of control of this process in the aspect of management should be used. A discerning analysis of every substage will help to avoid mistakes in the future [Nowak-Far 2000, p. 200].

It has to be mentioned that not all innovations have the same organizational dimension. A pharmaceutical company may deem “intelligent packaging” very valuable to inform users that somebody has opened it, however it can be completely uninterested in a new kind of a touch screen. On the other hand, a bank that has its network of ATMs, will treat these innovations in a completely different way [Fenn, Raskino 2010, p. 72]. Therefore, it can be believed that an organization shows a smaller or bigger tendency to adopt or avoid innovations. According to

Contemporary innovative practices... 261 J. Fenn and M. Raskino [Fenn, Raskino 2010, p. 72], in order to make a good decision on the time when an innovation should be adopted, the following issues have to be considered: – a potential value of innovation for an organization; – a current phase of maturity; – a company’s ability to tolerate and manage the risk.

Many companies that consider an innovation as their main target are not able to fully engage into it, because a comprehensive concept of an innovative process has not been developed before, and it is typical of the nature of innovations that they do not always bring the expected benefits. The issue can become further complicated by the fact that sometimes the innovative process generates profits, though not a direct one (through a specific new product), but through benefits sometimes hard to detect. It has to be firmly said that during the innovative process knowledge is created, where part of it can be used in many ways to generate profits. An organization often forgets the fact that an innovation influences keeping new excellent specialists in a company (and this has to be regarded as a creative factor of the organization). Examples of companies show that every time Intel engineers develop a new generation of microprocessors, the creativity of the organization’s members constitutes a driving force of the innovative process [Harvard Business Essentials 2005, p. 48]. According to Clayton M. Christensen [Christensen 2010, p. 15], it may happen that companies previously famous for their innovation skills, show their weakness and lose a business struggle at some point (both Apple and IBM were left 5 years behind the leaders in the introduction of portable computers on the market). The majority of new technologies, called “continuing technologies”, improve the functionality of products, but sometimes the so-called “disruptive technologies” appear and stop the previous development of a given product. The result of disruptive innovations is the worsening of the functionality of the products. Those products are usually cheaper, simpler, smaller, often with worse effectiveness characteristics than the products previously available on the market [Christensen 2010, pp. 2122]. Therefore, it can be said that the management of an innovative process that is not fully developed may sometimes lead to a company’s market failure. It has to be understood that in certain situations, innovations do not mean only positive changes and a new combination of existing possibilities in connection with an organization, even though they can be analysed as innovations based on networks and a source of competitive edge in the region.

3. Network of connections in innovativeness

Although good ideas, energy and passion are the necessary conditions for the innovative success, the most successful entrepreneurs on the market are also aware


of the fact that they have to enter into partnership relations with others, on various platforms and in various dimensions (local innovation networks, innovation networks in the region). The ability to efficiently operate in the networks, both during their creation and maintenance of their functioning in order to build a long-term and efficient model of innovative process, is of great significance.

In reality, one can find quite a diversified approach to networking, although the network of connections is something more than a simple total of bilateral connections (or partners). From the configuration of the nature and composition of networks, one can gain the benefits resulting from common specialization, common use of infrastructure, and each party will be interested in sharing information and providing full collaboration. Each organization, and especially an enterprise, has a given group of partners with whom it cooperates (universities, suppliers, clients, distributors, etc.). Over time, because of increasing trust, interpersonal relations are strengthened, and because of that, according to F. Bidault and W. Fischer “companies associated in networks are more prone to purchase and sell technologies in their circle” [Tidd, Bessant 2011, p. 394].

In Poland, many discussions focus on the innovativeness of companies and regions. Research on various aspects of awareness of an individual’s privacy, conducted in 2010 in the region of Łódź, provided an example of sectoral innovativeness [Golińska-Pieszyńska 2011, pp. 145155]. The general result of this research shows the awareness of the importance and essence of privacy among the respondents, assuming that the creation of sectoral innovations enables not only to identify the problems resulting from the creation of new frameworks of a contemporary economy and society, but also to get acquainted with the foundations and mechanisms of the functioning of innovative practices according to deliberations in the socio-psychological context, where such practices facilitate action, social progress, development and general effectiveness in the region, thus leading to an increase of its innovativeness. Having observed previous activities in the region of Łódź, it is difficult to be fully optimistic. Therefore, on the one hand good examples of innovative practices become very important, and on the other hand the innovative policy in the regional dimension should be analysed.

An important quality of a regional innovative system is the historically shaped culture and collected knowledge and experience, creating a unique character of particular relations and interactions. As a result of the activities of “Collaborative network of cooperation and exchange of experiences” concerning the interventions within the Human Capital Operational Programme (HC OP), supporting the realisation of the Regional Innovation Strategy INTREGRISNET, implemented within the grant of the Technical Assistance of HC OP jointly by Intermediate Bodies of HC OP – Office of the Marshall in Łódź (as the grant coordinator), Office of the Marshall of the Kujawsko-Pomorskie voivodeship, Office of the Marshall of the Pomorskie voivodeship, Office of the Marshall of the Śląskie

Contemporary innovative practices... 263 voivodeship, Office of the Marshall of the Warmińsko-Mazurskie voivodeship a Regional Thematic Network for Łódzkie voivodeship was created [WWW2].

The benefits of gaining knowledge and technologies from external sources encourage companies to establish and develop various forms of cooperation with external partners (R&D entities, institutions mediating in the transfer of innovations, financial institutions, etc.). Generally speaking, the aim of this cooperation is to gain access to sources of new knowledge. This means formulating innovations in a systemic manner. Innovations are the result of interactions and feedback occurring between “actors” dealing with the creation, transfer and use of various kinds of knowledge. The term “innovation system” then means a collection of various subjects influencing processes of innovations and connections (relations) occurring between them. In practice, it is the region that most often takes up initiatives that are supposed to improve the transfer of knowledge and innovativeness. The Regional Thematic Network [WWW2] for the Łódzkie voivodeship within the Human Capital Operational Programme, constitutes a forum of dialogue between the beneficiaries implementing innovative projects on the one hand, and experts and practitioners in the field that the projects concern on the other hand.

The need to support innovativeness was an impulse for the development of the Regional Innovation Strategy Project – RIS 2030. This project is a continuation of the project “RIS Actualization – Research and Monitoring” implemented from 2008 to 2010 [WWW1]. The New Regional Innovation Strategy is supposed to contribute to an increase of innovativeness and competitiveness of the region, to stimulate the development of innovations in companies in Łódź, mainly as the result of activities within the scope of the transfer of knowledge as per Measure 8.2. Currently, within Priority VIII HCOP – Regional Human Resources for the Economy, which aims at the development of a qualified workforce and capable of adaptation and the improvement of functioning of the change management system, the following activities are conducted:

1. Developing a workforce and enterprises in the region, 2. Transfer of knowledge. As part of Measure 8.1 and Sub-measure 8.1.3 Strengthening local partnership

for adaptiveness, twelve projects have already been realised, whereas four projects are currently in progress. Within the framework of Measure 8.2 and Sub-measure 8.2.1 Support to cooperation of scientific environment and enterprises, by the end of August 2012, as many as two hundred and fifteen projects were completed, and thirty projects are in progress. Below are listed the selected projects implemented within Measure 8.2 “TRANSFER OF KNOWLEDGE” in the region of Łódź, that are especially important for innovations and innovativeness in the region.

Innovation Assistant – adapting solutions facilitating the cooperation of scientific and business environment from the region of Lower Austria in the Łódzkie voivodeship. The main aim of this project is the organization of


internships in the companies for fourteen “Innovation Assistants”. This initiative is addressed to entrepreneurs in the Łódzkie voivodeship (especially from the small and medium business sector) and students in the final years of studies, doctoral students and PhDs who graduated from universities in the Łódzkie voivodeship (mainly the University of Łódź, Łódź University of Technology, Medical University of Łódź). The beneficiary of the project is the Foundation for Promotion of Entrepreneurship in Łódź.

Łódzki Spinacz – cooperation of business and science. The main aim of this project is to support the scientific and business environment by organising three editions of “information campaigns” and four conferences to promote the transfer of knowledge and innovations, as well as to provide training and consulting on opportunities of and benefits from establishing and running spin off/spin out companies for 485 people in the Łódzkie voivodeship within two years of the project. The target group for this project includes people from this voivodeship and it is directly addressed to employees of enterprises in Łódź, researchers, scientists and academics, doctoral students, students and graduates in the Łódzkie voivodeship. The beneficiary of this project is Grupa ERGO sp. z o.o.

Łódź World of Innovation. This project provides internships and training courses to a specific number of researchers working for enterprises that are crucial for the development of the region of Łódź (electronics, ITC, biotechnology, pharmacy, chemistry). The aim of this project is the improvement of skills of thirty two researchers and academics in respect of commercialization of knowledge and the increase of knowledge on the importance of activities directed at innovation in the area of science and business, through participation in training and internships in enterprises, which will result in the development of innovative solutions for companies in the period from July 2012 to September 2013. The beneficiary of this project is INVESTIN sp. z o.o.

The described innovative practices [Golińska-Pieszyńska 2011, pp. 145155] and the conducted initiatives and activities in the region of Łódź show a high level of commitment to an increase of competitiveness of this region, which means directing future initiatives at a further increase of its innovativeness. An attempt was made to show that various projects and initiatives conducted in the Łódzkie voivodeship that were oriented at an increase of innovativeness of this region and the development of both good practices and then model enterprises were of a great importance for cooperation and building knowledge and innovations.

4. Conclusion

The attempt taken to analyse the region of Łódź is aimed at the presentation of good patterns of innovative actions, which will certainly facilitate the creation of many effective networks of cooperation in an innovative activity. Approaching it from a

Contemporary innovative practices... 265 broader perspective of actions in the community in this region, the network structure aimed at innovation includes general connections of organizations created for the implementation of common tasks and mutual communication on the one hand, whereas on the other hand it means the search for various sources of support, both on the intellectual, financial and social platform and joining them into a network which will facilitate the realisation of a new innovative concept. The multidimensional nature of innovativeness is a fact. Good patterns of innovation activities may facilitate the market success of many organizations, this being no longer an illusion because of an extraordinary intellectual exertion and various types of resources that are necessary for the implementation of the innovative process.

A complex approach to the innovative process was proposed in this article, both when it comes to theory and innovative practices. This paper presents various projects conducted in the region of Łódź (including those aimed at networks) and initiatives oriented at an increase of innovativeness in this region. An attempt was made to show that not only the innovative development of business activity in the region is important as an element of a regional innovation strategy, but also the cooperation based on creating knowledge and innovations within various initiatives and networks may be treated as a way to increase the competitiveness of the region of Łódź.

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WSPÓŁCZESNE PRAKTYKI INNOWACYJNE W KONTEKŚCIE REGIONALNYM W OPARCIU O REGION ŁÓDZKI

Streszczenie: Organizacje utrzymują lub poprawiają swoje pozycje na rynku dzięki efek-tywnym innowacjom. Wyzwaniem dla kreatywnych przedsiębiorców jest poszukiwanie różnych źródeł wsparcia, zarówno na płaszczyźnie intelektualnej, jak i finansowej czy spo-łecznej. Podejście do zarządzania oparte na strukturze sieciowej zdecydowanie ułatwi zre-alizowanie nowej koncepcji innowacyjnej. Podjęta próba wglądu w region łódzki nakiero-wana jest na wskazanie dobrych wzorców działań innowacyjnych, co zapewne pozwoli w przyszłości wykreować nowe, skuteczne sieci współpracy w działalności innowacyjnej, a co zdecydowanie wpłynie na wzrost konkurencyjności w regionie.

Słowa kluczowe: innowacje, region, sieci innowacyjne.

Publishing House of Wrocław University of Economics

NEW PUBLICATIONS

Innowacyjność w rozwoju lokalnym i regionalnym, red. Danuta Strahl, Dariusz Głuszczuk, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu nr 285, Wrocław 2013.

Gospodarka lokalna w teorii i praktyce, red. Ryszard Brol, Andrzej Sztando, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu nr 284, Wrocław 2013.

Local Economy in Theory and Practice. Local Development Governance Aspects, ed. Ryszard Brol, Andrzej Sztando, Research Papers of Wrocław University of Economics No. 283, Wrocław 2013.

Local Economy in Theory and Practice. Planning and Evaluation Aspects, ed. Ryszard Brol, Andrzej Sztando, Research Papers of Wrocław University of Economics No. 282, Wrocław 2013.

Problemy rozwoju regionalnego, red. Elżbieta Sobczak, Małgorzata Markowska, Prace Nauko-we Uniwersytetu Ekonomicznego we Wrocławiu nr 281, Wrocław 2013.

Finanse i nieruchomości w rozwoju lokalnym i regionalnym, red. Ryszard Brol, Beata Bal--Domańska, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu nr 280, Wrocław 2013.

Śląski Przegląd Statystyczny 2013, nr 11(17). Zmiana warunkiem sukcesu. Współczesne uwarunkowania i metody wspomagania procesu

zarządzania zmianami, red. Jan Skalik, Joanna Kacała, Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu nr 277, Wrocław 2013.

Ekonometria 2013, nr 1(39). Paweł Hanczar, Modele decyzyjne w koordynacji strumieni podaży produktów w łańcuchu do-

staw, Monografie i Opracowania nr 224, Wrocław 2013. Bogusław Półtorak, Hipoteczny pieniądz bankowy, Monografie i Opracowania nr 243,

Wrocław 2013. Nauki o Zarządzaniu 2013, nr 1(14). Mirosław Moroz, Kształtowanie elastyczności przedsiębiorstw internetowych, Monografie

i Opracowania nr 237, Wrocław 2013. Anetta Zielińska, Gospodarowanie na obszarach przyrodniczo cennych w Polsce w kontekście

rozwoju zrównoważonego, Monografie i Opracowania nr 236, Wrocław 2013. Jerzy Niemczyk, Strategia. Od planu do sieci, Wrocław 2013. Dorota Rynio, Kształtowanie nowej polityki regionalnej Polski w warunkach globalizacji i inte-

gracji, Monografie i Opracowania nr 240, Wrocław 2013. Dorota Teneta-Skwiercz, Uwarunkowania realizacji koncepcji społecznej odpowiedzialności

biznesu w przedsiębiorstwach polskich – na tle doświadczeń Wielkiej Brytanii i Niemiec, Monografie i Opracowania nr 234, Wrocław 2013.

Helena Dudycz, Mapa pojęć jako wizualna reprezentacja wiedzy ekonomicznej, Monografie i Opracowania nr 229, Wrocław 2013.

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