ARC FUND Presentaion

1
Mapping and Rebuilding the Local Innovation
System of the Regions The Case of the
South-Central Region (SCR) in Bulgariaby Ruslan
StefanovARC FundKEF III, Budapest, March
24-26th, 2004
2
Outline

• Introduction
• Case Study Description
• institutions
• process
• results
• Knowledge Gained (Lessons Learnt)

3
Introduction Why This Case

• Comes from KE Practice - Addresses a Core KE
  Pillar - Innovation System From Different View
  Points
• Reveals Insights on Country Region and Company
  Level
• Highlights the Importance of Processes and
  Institutions
• Underscores the Role of Trust and Public-Private
  Partnerships
• Follows Local Demand and Conditions but Uses EC
  and International Knowledge and Instruments

4
The Case -Background
Source World Bank and authors calculations

• Econ. Incent Inst. Reg
• Information Infrastructure

• Education Training
• Innovation Systems

5
The Case - Geography
6
Case Features

• Focus Managing and Shaping Regional Innovation
  System Change Through PPP - the Strategy as a
  Tool, not an End
• Features
• Private Sector Lead, Bottom-Up Approach
• Learning and Knowledge Sharing Core
• Results Knowledge on Different Management Levels

7
Institutional Setup
8
Process (1)
Involve Key Players
Study the Region
Know Supply Demand
Institutionalize
Implement Projects
Pilots
Find Success Stories/ Leaders
Outline Possible Actions
9
Process (2)

• Involved in Carrying Out the Project more than
  40 organizations and 120 persons
• Indirectly Project Activities more than 500
  organizations and 1,200 persons
• Number of Public Meetings 110
• Duration 2,5 years

10
Results

• Internationally comparable knowledge and data
  bank on SCRs innovation system
• Direct knowledge transfer on innovation to some
  400 companies in the region
• 10 technology audits and 6 international company
  matches
• Experience and knowledge transfer to the other 5
  planning regions in Bulgaria which now prepare to
  conducting RIS projects
• Trans-border knowledge transfer (e.g. Romanian
  organization successfully consulted on adapting
  the RIS initiative)

11
Knowledge Gained Management Level

• Create flexible and effective internal knowledge
  management system the organization evolves with
  the process
• Balance knowledge and management capabilities
  outsource when necessary
• Focus on local demand and conditions but know
  international benchmarks discrepancies are
  usually overwhelming
• Do not expect knowledge and interest from the
  other stakeholders inform and engage
  proactively keep doors open
• International partners are good steering anchors
  but copying practices should be avoided

12
Example Level of Cooperation
Source Regional Innovation Strategy for
South-Central Region of Bulgaria
13
Knowledge Gained Macro Level

• Setting a predictable but flexible innovation
  policy framework is fundamental for streamlining
  common efforts
• Governments are stuck with rigid remnants of the
  old innovation system reform them, introduce
  competition and complementarities
• Rule of thumb governments should put an euro in
  projects that attract at least another euro in
  private or external funds

14
Example RD Expenditure
Source European Innovation Scoreboard, 2002
15
Knowledge Gained Meso Level

• Regional governments tend to be outsiders to both
  central and local developments
• But might be more flexible and cooperative
• Local authorities are more interested and eager
  to participate but might often lack specific
  knowledge and skills
• Active private sector associations are a key
  bridge to involving the business at national and
  regional level

16
Knowledge Gained Company Level

• Most companies are well behind theoretic and best
  practice models transfer knowledge, gather as
  much data as possible
• Only a few, usually foreign owned play, at global
  markets motivate to share knowledge, highlight
  best practice
• Truly innovative companies are exceptionally rare
  FDIs and technology transfers precede genuine
  innovations
• Private companies are the most interested and
  long-term ally in shaping the regional innovation
  system

17
Example - Companies
Source Regional Innovation Strategy for
South-Central Region of Bulgaria
18
THANK YOU

• ARC Fund
• 5, Alexander Zhendov Str.
• 1113 Sofia
• http//www.arc.online.bg
• E-mail ruslan.stefanov_at_online.bg

19
Bulgaria KE Useful Links

• http//www.bgrazvitie.net/bg/ke/
• http//www.developmentgateway.org/node/130667/sdm/
  docview?docid364943
• http//www.arc.online.bg
• http//www.bulgaria-gateway.org/
• http//www.vitosha-research.com/
• http//europa.eu.int/comm/lisbon_strategy/index_en
  .html
• http//www.helsinkikef.org
• http//www1.worldbank.org/gdln-scripts/programs/ka
  m2002/kamscript.exe/show_page
• http//trendchart.cordis.lu/Scoreboard2002/index.h
  tml
• http//www.developmentgateway.org/node/130667/

20
Bulgaria KE Useful Documents

• Towards a Knowledge-Based Economy, Bulgaria,
  UNECE, 2002
• A Preliminary Strategy to Develop a Knowledge
  Economy in EU Accession Countries, World Bank,
  2002
• Bulgaria, 2003 Special 301 Report,
  International Intellectual Property Alliance
• Bulgaria, Country Report, European Trend Chart,
  2002
• Bulgaria E-Readiness Assessment 2003, ARC Fund,
  upcoming and 2002
• Bulgarian E-Government, ICT and Innovation
  Strategy
• Inventory of Bulgarias Innovation System,
  PHARE Project, Upcoming