Posts Tagged ‘infrastructures’

EFP Brief No. 230: From ‘Knowledge Capital’ to ‘Innovation System’ (follow-up)

Friday, November 23rd, 2012

As early as 2003, Manchester Science Parks sponsored a workshop that brought together leading players in the Manchester City region to develop a vision of how universities could contribute to the then newly established ‘Knowledge Capital initiative’. This exercise succeeded in many respects. Not only a vision and the respective action plan was jointly agreed and followed, but the knowledge base was also formed for a later vision creation exercise: that of developing an Innovation System in the Manchester City Region by 2015.

Powerhouse of the Knowledge Economy

The 2003 foresight exercise took place in the context of the strategic review of the Manchester Science Parks (MSP) to improve links between its tenant companies and universities and the city’s interest to capitalise on its concentration of higher education institutions and its cultural and leisure facilities. At the same time, the two most research-intensive universities were in the process of a merger that would later form the UK’s largest university. Thus, the opportunity emerged to drive the process much further over the next five years and secure Manchester’s position as a powerhouse of the knowledge economy.

MSP sponsored a scenario workshop in order to play a more proactive role both in the development of linkages with universities and in terms of local and regional policy-making. The two objectives of the exercise were:

• To develop a shared vision of the future of business–university linkages in the city region of Manchester. The aim was to link the strategies of the universities in the area with the city’s own vision of its future as a ‘Knowledge Capital’.

• To move towards a shared vision among senior stakeholders, such as local political leaders, heads of universities, heads of key intermediaries and industry associations, of what success in this area would look like in five years’ time and to begin the process of developing a road map to get there.

The Success Scenario Process

The workshop was organised following the success scenario process, which intended to develop a shared vision among senior stakeholders and the consequent roadmap to realise this vision. A key element of the method was that those who took part were also in a position to implement the outcomes, which they had already bought into, at least in part, through their own participation and contributions.

The workshop participants came from business and commerce, national, regional and local government, intermediary organisations and the city’s four universities. Participants were sent a briefing document setting out the objectives of the workshop and several background documents. The overall design of the process was based on three plenary sessions, interspersed with two rounds of facilitated break-out groups (the first on regional drivers and the second on modes of linkage), articulating elements of the scenario.

Five Success Dimensions

The output of the workshop was summarised in the form of a scenario for success in 2008. This brought together the key drivers and shapers identified by the participants and highlighted the different but related dimensions of this successful outcome. Five dimensions of change were identified to present the success scenario.

· Infrastructure: The reach of the knowledge producers spreads to all parts of the city region: a network of hotspots of university-industry interfaces has spread away from the campuses across the city region. Entrepreneurs are attracted by the combination of café culture and easily located specialised spaces for innovation. The Manchester Science Park brand defines the quality level.

· Human Resources: Manchester becomes a net importer of graduates: an exodus of graduates to Southeast England has been reversed as high quality jobs in small entrepreneurial firms attract the best. Rising teaching quality has pervaded the entire Manchester education system with mentoring being one of its hallmarks. Highly qualified and entrepreneurial immigrants are actively sought.

· University Missions: Each Manchester university is recognised as world-class in terms of its mission: following the emergence of the new University of Manchester as a world-class, research-driven institution, Manchester’s other two universities achieved similar levels of excellence within the context of their own missions. All three treat reach-out as an integral activity but approach it with distinctive and complementary styles.

· Inward Investment: Integrated policies attracts massive investment by multinationals and entrepreneurs: integrated packages combining land use, infrastructure and academic linkages have attracted huge investments by multinationals in the region, providing a natural market for start-up firms. Regional resources are used to gear and attract national and European investment.

· Networking: Firms of all sizes and ages in Manchester source knowledge and people and meet development needs from the universities: networking is seen as the key to businesses understanding how universities can help them. Much better interfaces now allow medium-sized firms to work with academics, while business joins city government in securing and supporting centres of excellence.

Progress Made

Around 2010, an assessment of the progress made in these five dimensions was carried out.1 In relation to infrastructure it was acknowledged that Manchester City Region had numerous innovation assets that already acted as hubs or that were seeing significant investment over the coming years. In fact, infrastructure was seen as the most developed element of the city region’s innovation system with 69% of survey respondents believing that it was nationally excellent or world-class. However, certain gaps were still present, including specialised facilities such as grow-on space for laboratory-based businesses, specialist incubation facilities, flexible, easyaccess space for a variety of enterprises, and slow development of next-generation broadband and wireless connectivity.

Ranking Improved

In relation to university missions, significant achievements were noted. The new University of Manchester ranking jumped from 78th in the world in 2004 to 41st in 2009. In doing so, it has moved from 24th in Europe to seventh and from eighth in the UK to fifth. The new university was complemented by the city region’s other universities also achieving high levels of success. The scientific strengths were also seen to attract nonuniversity public sector research into Manchester to create a new innovative growth pole for the UK. Survey respondents believed that Manchester City Region’s knowledge assets were world class, more than any other category. A third of the respondents also believed that Manchester City Region was a world-class location for learning.

Quality of human resources did not present significant improvements, however. Nearly 30% of city region residents had degrees, but this was no more than the national average and well below the rate in the US. Too many people lacked even basic skills and had very low aspirations, while too many Manchester residents lived in areas ranked as the most deprived in the country.

Raising skill levels was identified as the key issue on which the city region should focus in order to raise productivity and tackle deprivation, and further steps were taken in this regard. Nevertheless, perceptions of skills and future potential were positive. Over half of respondents thought that the availability of talented people in Manchester City Region was nationally excellent or world-class. In addition, the high rates of graduate retention (over 50% within 6 months and 91% of these still in the NW after 2 years) were encouraging for raising future skills.

The 2003 workshop had an impact on creating an inward investment initiative in Manchester. In 2005, Manchester City Council (MCC), Manchester Inward Investment Agency (MIDAS) and Manchester Science Parks came together to form a partnership, branded as Sino-Ventures in the UK, with funding from the Northwest Regional Development Agency. The scheme was launched as a pilot project aimed at attracting and supporting overseas science and technology businesses, mainly from China, wishing to establish a base in the UK. During the lifetime of the project, 27 companies (from Greater China, USA, India, Germany, Japan, Sweden, Australia and Norway) soft-landed in the Manchester International Innovation Centre located on MSP’s Corridor site. Of these 27 companies, nearly three quarters have remained within the North West region. Moreover, the project supported 70 overseas companies, created 76 gross additional jobs (FTE) and 32 net additional FTE jobs up to February 2008. The inward investment project generated a gross GVA of £4.8 million.

In 2010, Greater Manchester still accounted for half of all creative and digital investment in the region. It was also seen to have particular strengths in life sciences and biomedical sciences, accounting for 75% of the sector in the North West, recognised as a member of the ‘European Super League’ of biotech clusters by Strategem, and ranked among the top 50 in the world by Boston Consulting. However, two weak points were also noted in relation to inward investment: lack of international connectivity and linkages and access to seed, start-up and early-stage funding.

Innovation Manchester Network

Finally, several initiatives were set up to increase networking. The Innovation Manchester Boardroom was created, which provides a forum for top private, public and social sector innovators to discuss key issues, challenges and opportunities. It has the primary long-term objective of developing leadership across sectors/interests and changing how people connect and work with each other. The Innovation Manchester Network teams were launched in 2008 in recognition of the need for strong private sector involvement in the push for a more innovative city and the need to develop purposeful crosssector networks for innovators. Innovation Manchester brought together over 70 of the city region’s top business leaders and key city partners, who identified and prioritised ways in which Manchester’s capacity for innovation could be increased and developed those ideas into live projects, such as Manchester International Festival: Creative Learning (MIF Creative), Manchester Masters and Manchester: Integrating Medicine and Innovative Technology (MIMIT).

From ‘Knowledge Capital’ to ‘Innovation System’

The 2003 foresight exercise achieved its objectives to create a vision for the Manchester City region as well as a road map towards realising it. Five years later, notwithstanding certain gaps, significant progress was marked in all the five success dimensions. The output of the 2003 exercise had additional impacts. The exercise paved the way for a new foresight exercise, commissioned in 2006 by MSP with a more global look at science parks. The main objective of the workshop was to define the next stage of development for mature science parks also called ‘third generation science parks’.

In addition, the 2003 exercise formed a valuable knowledge base upon which the next foresight exercise could draw in 2010. The 2010 exercise led to a vision of the Manchester innovation system in 2015 that has seen a step change in its effectiveness and laid out the key actions to get there. The same success scenario process was applied bringing together senior stakeholders from the public, private, academic and third sectors. The vision was built around the idea of an innovation ecosystem that governs and facilitates the flows of people, knowledge, finance and services between the main actors and institutions involved in innovation. Manchester has a reasonable starting position in each of these dimensions, with the knowledge base being the strongest and the access to finance the most challenging. Cutting across all four flows is the need to increase connectivity. Key actions to achieve the vision were defined under five specific dimensions as follows. People and skills: Enterprise and entrepreneurship at the heart of the curriculum, and movement of people and ideas across sectors.

An understanding of business and enterprise, of creativity and entrepreneurship should be a core component of the education system and the basis for as natural a career path as employment. Colleges and universities should respond quickly to user input to curriculum design. A city region mentoring scheme should be developed to support understanding and mobility between public and private sectors, between education and business and to allow senior managers of small firms to benefit from the experience of their equivalents in medium and large firms.

Innovation ecosystem: Manchester as a market friendly to innovative products and services that links SMEs to demanding customers and harnesses the links between cultural and technological sectors.

Public procurement practices should demand innovation and not exclude SMEs through initial qualification requirements. SMEs need help to respond innovatively to the demands of large private sector customers. Crosssector barriers can be broken down by bringing together individuals around key challenges such as creating a low carbon city region. Artists or designers in residence at technology companies should be complemented by technologists in residence at cultural organisations.

Demanding innovation: Public services better connected to user demand through engagement, and new products and services trialled in Laboratory Manchester.

Public sector management teams can become private sector delivery companies that are responsive to consumer demand, while communities should seek and promote innovative solutions to local social problems. The Laboratory Manchester concept should offer large scale trials built upon the city’s reputation for delivering effective public private partnerships. Manchester should develop a low carbon economy ahead of the curve.

Finance: An effective city region proof of concept fund and a business angel network.

A city region proof of concept fund should be launched to encourage and facilitate the development of new intellectual-property-based businesses. At the same time, business angel activity in the city region should be encouraged by enabling wealthy individuals to learn about investing in innovative companies, preferably from previously successful angels.

Telling the story: A coherent narrative about the Manchester innovation ecosystem developed that helps to coordinate the messages about the attractions of Manchester as a place to live, work and play.

Manchester should have a coherent narrative about its innovation ecosystem built on its history but focused on present and future strengths in the low carbon environment, health and life sciences, sports and new media. The narrative should be used to inform a coordinated talent marketing strategy to attract the best students and workers. This should be supported by a Web 2.0 platform that would provide access to innovation stories and also to technological opportunities with market potential.

Download: EFP Brief No. 230_From Knowledge Capital to Innovation System.

Sources and References

Georghiou, L., Cassingena Harper, J. (2003): Contribution of Universities to the Knowledge Capital. A Scenario for Success in 2008, ISBN 0 946007 09 8 2003

Georghiou, L., Davies, J. (2010): An Innovation System for the Manchester City Region, Manchester Science Parks Ltd.

Georghiou, L. (2008): Universities and the City-Region as a ‘Knowledge Capital’ 2008, Foresight Brief No. 14.

www.mspl.co.uk, last accessed 9 November 2012.

www.manchesterknowledge.com, last accessed 9 November 2012.

EFP Brief No. 171: Research Priorities for Digital Creative Industries in Europe

Tuesday, May 24th, 2011

With creativity and strategy, the CReATE project designed and implemented a novel strategic cluster development approach integrating Strategic Policy Intelligence tools (such as foresight and impact assessment) and direct innovation support instruments. Guided by a trans-regional framework and based on very different regional strengths and research, technology development and innovation (RTDI) support histories, it aimed at fostering cross-cluster and transregional learning and knowledge exchange more effectively and successfully. In an iterative process, alternating between and mutually enriching the regional and the trans-regional levels, research priorities for information and communication technology innovations in “Culture and Creative Industries” were identified. Strongly related to their “fields of excellence & fields of aspiration” (the existing strengths but also the future development trajectories set by the regional stakeholders), the strategic capabilities of the different stakeholder groups were strengthened and a strategic joint research agenda was developed. On this base, broader and more far-reaching activities will be developed regionally and trans-regionally, also involving partners from outside the consortium and optimising regional, national and EU programmes from RTDI and other policy fields.

Strategic Importance of Creative Industries

To emerge invigorated from the current economic crisis is the most important challenge for the European economies, societies, policies and the European Union as a whole. New sources of sustainable growth must be tapped, creating new jobs and markets for European citizens and companies.

It is of strategic importance to better harness the potential of innovation and knowledge cutting across and connecting all sectors, and to better coordinate priority setting and programme design between regional, national and EU levels in order to tap synergies of actions and policies.

In this respect, the Culture and Creative Industries (CI) based on state-of-the-art information and communication technologies (ICT) play a strategic role. The CI sector is one of the emerging lead markets of the European knowledge economy, already ranks fourth in EU GDP contribution (626 bn € in 2007). As ICT constitute the technology base enabling the development of innovative CI products and services, research progress in ICT is a key ingredient for sustaining competitive CI. Therefore, it is a good investment to support ICT research and to encourage a more systematic and forward-looking use of its innovation potential. To fully harness this potential, it is important to develop new strategic guidance and RTDI support schemes, as the CI sector is characterised by a comparatively high percentage of micro-enterprises and non-conventional forms of employment.

The CI employment growth rate has been double that of the general economy in recent years and is forecast to continue at an average of 10 % annually. Cooperation with CI enterprises increases the innovativeness in all sectors, and regional CI specialisation explains about half of the variance of GDP/capita. Efficient knowledge generation and its creative application can transform the traditional industrial landscape into a competitive industry base and modern service sector, thus contributing to the generation of new markets and high-quality jobs.

In its EU 2020 proposal to the Council in March 2010, the European Commission highlights the importance of creativity and knowledge creation for sustained and sustainable growth. It aims at an impetus for overcoming the current crisis and advocates a new approach that explicitly addresses the complex interdependence between all governance levels.

Often, the main challenge for effective decision-making is the distributed nature of knowledge. SPI tools provide public and private decision-makers with comprehensive, objective, and forward-looking information (e.g. on long-term developments, global trends, societal and individual values, etc). Applied consecutively and consistently, they can help identify, select, structure and ‘translate’ all available information, thereby enabling the development of better decisions and policies.

The concept of a simplified policy support cycle (see graph) can help take this better into account for improving policies and programmes. It facilitates the analyses of decision-making processes and identifies the tools necessary to optimise the outcomes at each stage. Strategic policy intelligence (SPI) tools include technology or territorial foresight, innovation and technology assessment, roadmapping, evaluations and other interactive exercises.

Building on these concepts, the CReATE project (Creating a Joint Research Agenda for Promoting ICT Innovations in CI across Europe) developed a novel approach for enhanced strategic, trans-regional cluster development. Mobilising the commitment of and supporting consensus-building among all relevant stakeholders, project activities included trans-regional vision-building, priority-setting, project development and programme coordination across CI clusters in Baden-Württemberg (DE), Piemonte (IT), Rhône-Alpes (FR) and West-Midlands (UK).

From Music Composition to Architecture

CReATE was co-funded by the EU “Regions of Knowledge” (RoK) initiative, which aims to strengthen the research potential of European regions by encouraging and supporting the development of regional research-driven clusters.

The seven project partners, including public authorities, cluster managing organisations, technology transfer and research organisations, aim to increase CI competitiveness, market potential and outreach to other industry sectors by making more systematic use of ICT’s innovation potential.

To make the best use of their different RTDI support histories (EU, national, regional), factor and demand conditions, and strengths in the CI field, the partners worked with a common methodology (developed in an earlier RoK project) towards common overall priorities – and, on this base, developed different, regionally optimised applications. SPI tools were applied to identify promising RTDI priorities as a key ingredient of sustainable cluster growth, to foster trans-regional knowledge exchange more effectively and successfully, and to optimise the use of regional, national and EU infrastructures and programmes.

CReATE supports European co-operation of innovative clusters and focuses on the following six CI segments:

  • music composition and production,
  • film, television and video,
  • animation and computer games (entertainment software),
  • writing, publishing and print media,
  • advertising, graphic design and marketing,
  • architecture, visual arts and design.

Applying Strategic Policy Intelligence Tools

Based on a methodology developed in the earlier RoK project RegStrat (SPI Tools for Better S&T Investment Strategies in Europe’s Regions) and the policy support cycle shown above, several SPI tools were applied: innovation analyses and benchmarking were followed by foresight-type and impact assessment activities and resulted in recommendations for joint projects and for optimising RTDI programmes. The recommendations were adapted to the specific needs and policy objectives of the participating regions. To ensure both regional and trans-regional impact, the overall process was designed in an iterative way, alternating between and mutually enriching the different governance levels.

Stock-taking: Developing a Regional Knowledge Base

As a sound basis for the analysis of the state of play regarding the regional CI and ICT research potential and the identification of regional ‘fields of aspiration’, a background paper described general future trends and drivers in ICT research relevant for the application in CI. Based on this and the regional analysis template prepared by the strategy consultants of Steinbeis-Europa-Zentrum (SEZ), each region conducted stakeholder interviews and desk research to elaborate a comprehensive set of data and information on CI and ICT innovations. These regional knowledge-generating activities resulted in comprehensive regional reports including cluster maps and detailed SWOT-analyses.

Forward-looking: Identifying Regional Research Priorities

Prospective activities were undertaken in form of two workshops in each region, designed and supported by foresight consultants to ensure adequate and comparable results.

The first regional stakeholder workshop elaborated a common perception of important trends and drivers of possible future developments in CI. Then, key opportunities and challenges to be faced with regard to the regional strengths and weaknesses from the previous SWOT analysis were identified.

The second workshop developed a shared understanding of the possibilities arising from ICT RTDI for CI and derived a ‘ranking’ of regional research priority areas.

Outward-looking: Developing a Joint Research Agenda and Elaborating Joint Project Ideas

Based on the regional results, the identified ICT research capacities, the CI needs and the defined research priorities were related to each other, and joint priorities relevant to all project regions were identified. These were discussed with regional stakeholders and EU representatives during an international IC conference in Turin.

Subsequently, a synthesis report was drafted summarising the results of all regional activities. It also presented the five trans-regional research priorities that would form the basis of the Joint Research Agenda (JRA):

  1. Visual and Interactive Experience: new visual dimensions and digital interaction between humans and computers (3D internet, virtual worlds, simulations and computer-generated imagery).
  2. Tools of Productivity and Intelligent Automation: improved productivity and semantic software (rapid prototyping, conversion of 2D visualisations to 3D, more precise combination of web and database content).
  3. Digital Distribution: new distribution channels on the World Wide Web (collective availability of user-generated content, new markets and revenue streams).
  4. Mobility and Interoperability: a new level of flexibility in the mobile age (any time, any place access to information, location-related and personalised mobile services).
  5. User-Producer Interaction in Development: new production methods featuring user-generated content.

The JRA was based on a trans-regional analysis (‘match-making’) and enriched by input and feedback from regional stakeholders. It includes an outline of the current situation as well as future development perspectives, strategic research areas for CI and, more specifically, a comprehensive depiction of the CReATE transregional research priorities. Future lines of action and promising implementation activities for the CReATE and other regions were also outlined.

In line with this, the project partners and relevant stakeholders formulated promising cross-regional, cross-cluster project ideas and concepts. Feasibility and relevant funding opportunities were also scrutinized.

The implementation of these project ideas is not part of the CReATE project. However, as it plays a vital role for the sustainable impact of the whole process, the regional project partners aim to support and encourage regional stakeholders to continue the work in this sense. Also, the strategic CReATE results were designed in a way that they could be utilised in the medium-term for broader and long-term trans-regional cooperation and for the purpose of optimising regional research programmes and policy development more generally.

Increasing Project Impact and Outreach

The European outreach of the project was addressed by transforming the project methodology and good practices from the partner regions into a generally applicable and easy-to-use toolkit for all European actors. Furthermore, the know-how gained during the project served as input to interactive training and capability-building workshops for interested regions. By June 2010, two of these will have been conducted in the greater Dublin region and Pomerania, Poland. Even after the end of the project, such workshops can be set up in other regions interested in strategic cluster development.

Leverage Effects for other Regions and Sectors

CI play an important role in economic growth, both in terms of the sector’s own contribution to GDP and its role in the innovativeness of other economic sectors. Supporting CI clusters in Europe’s regions can thus considerably contribute, directly and indirectly, to regional, national and European competitiveness. Higher, better coordinated and more focused RTDI investments can be achieved if sector or cluster priorities are set based on a broad forward-looking perspective considering future technological, social and political developments on the local and global level.

Thus, future projects, programmes and policies need to focus on how to achieve the agreed direction or facilitate the desired change of direction. Success means that activities are designed and conducted not only aiming “to do things right” but rather “to do the right things right”.

Therefore, strategic guidance, as developed and implemented in the holistic three-stage SPI-supported CReATE approach, will become increasingly important for the long-term economic success of research-driven clusters.

CReATE’s intertwined bottom-up and top-down approach, enhancing cooperation on various levels and between a variety of actors, can lead to a better adjustment, coordination and optimisation of innovation policies on all governance levels.

This is especially attractive for Europe’s regions because, in times where RTDI budgets are stagnating, pooling funds and know-how in joint trans-regional projects can help to make the most efficient and effective use of regional resources and infrastructures.

The CReATE project showed that, by conducting such forward-looking trans-regional activities, comprehensive knowledge and priority generation and its application are facilitated, trans-regional synergies are tapped, internationalisation of regional actors is enhanced and the basis for more economic success is established.

These more general conclusions are based on the concrete lessons learned during the implementation of CReATE:

  • The methodology followed a multi-actor, multi-level and multi-disciplinary approach, fostered trans-regional cooperation and thus promoted synergies between regional, national and European initiatives. Similar to the ‘Strategic Research Agendas’ of the European Technology Platforms, the CReATE JRA can contribute to raising public and private RTDI investments at all governance levels and improve their impact through optimising efforts and resources.
  • The dialogue-oriented CReATE methodology involved all relevant regional stakeholders of the ‘triple helix’ (university-industry-government) and thus facilitated consensus-building based on personal relationships and mutual trust. The CReATE activities can serve as a starting point for a comprehensive cluster foresight exercise to define a common vision and strategy for a broader approach to sustainable cluster development in the regions. The experiences of the regional CReATE activities show that participatory interactive approaches are a good way to set the scene for joint actions across different regions, sectors and disciplines.
  • On the regional level, the stakeholder workshops have shown some barriers between the different business cultures, languages and mindsets between ICT and CI representatives. The challenge for innovation policies, for instance concerning cluster development, is to bridge the gap between these different mindsets and to leverage cross-disciplinary potential to boost innovation and competitiveness in new markets. The CReATE project’s regional stakeholder workshops clearly pointed out the need for specific support actions to optimally utilise the synergies between ICT and CI.
  • The trans-regional JRA tapped trans-regional synergies by identifying specific regional needs and capabilities as well as the most promising international technology and market development perspectives. It provided the base for optimised concrete actions, both regionally and trans-regionally, generating a clear added value for the regions. The JRA enables all regional actors (from public to private sphere) to rethink and eventually to adjust the focus, effectiveness and efficiency of their policies and (business) strategies. A number of project ideas have already been developed among the project partners and will ensure a sustainable impact of the project after its finalisation.
  • The CReATE methodology facilitated trans-regional and cross-cluster knowledge flows and learning processes across and beyond the CReATE regions and fostered the integration of the CReATE regions into international innovation networks. In this context, broadening and deepening the cross-regional activities beyond the project time frame is valuable to fully capitalise on the added value provided by this methodological approach.
Authors: Sabine Hafner-Zimmermann, Steinbeis-Europa-Zentrum,      hafner@steinbeis-europa.de

Dr. Björn Sautter,           Steinbeis-Europa-Zentrum,                     sautter@steinbeis-europa.de

Dr. Günter Clar, Steinbeis-Europa-Zentrum,                                  clar@steinbeis-europa.de

            Sponsors: European Commission (DG Research), participating regions
Type: Single issue brief
Organizer: MFG Baden-Württemberg GmbH Stuttgart, Steinbeis-Europa-Zentrum, Stuttgart, Germany
Duration: 3/2008-12/2010 Budget: 11m EUR Time Horizon: 2020 Date of Brief: March 2010

 

Download EFP Brief No. 171 CReATE

Sources and References

  • Project websites: www.steinbeis-europa.de/index.php5?file=484; lets-create.eu; www.regstrat.net
  • Contact persons as mentioned above
  • See, e.g., http://www.europe-innova.eu/web/guest/home/-/journal_content/56/10136/178407