Flemisch cluster policies Bart De Caesemaeker 27 February 2004 www'iwt'be

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Flemisch cluster policies Bart
De Caesemaeker27 February 2004www.iwt.be
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Overview of this presentation

• Flanders some figures
• General survey of IWT
• Overview of cluster policy
• Former cluster policy
• Technological Valleys
• Cooperative innovation Networks (2001)
• Flemish Technology Excellence Poles
• Conclusions

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Flanders Geographical situation.
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Flanders some figures

• One of the 3 regions in Belgium
• 6 million inhabitants
• 60 of European Union purchasing power lies
  within 400 km
• 7 universities of which 2 world-class
• Very open economy (80 export)
• Strong sectors automobile, petrochemicals and
  plastic processing, life sciences
• Excellent ICT-infrastructure
• Educated, productive, loyal, multilingual and
  flexible workforce

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IWT General survey

• History Established 1991
• Mission promotion of innovation
• Formal Government agency
• Personnel 50 scientific advisors

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IWT Key figures

• Annual budget 200 million euro
• 60 million for RD-projects
• 10 million for Innovation projects SMEs
• 30 million for Strategic Basic Research
• 7 million for HEI
• 30 million for Flemish Innovation Cooperation
  Networks
• Measures of Flemish Government
• Clients
• 150 innovative enterprises / year
• 500 SME projects / year
• Network of intermediairies
• 200 advisors in the field

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The RDI measures of IWT

• Subsidies
• Enterprises
• Research Institutes
• Grants to PhD
• Intermediairies
• Coordination
• Services
• Flemish Contactpoint FP6
• IRC-Flanders
• Information Office

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Historical overview of cluster policy

• 1994 Bottom-up accreditation of organisations as
  (economic) cluster
• 1998 Technology Valleys as policy choices
  (mapping)
• 2001 VIS (Cooperation for innovation)
  bottom-up competitive funding for
  projects (2x2 years) of
  animation/stimulation of innovation
  (semi-structural)
• Technological Excellence Poles special
  initiatives (picking winners by
  intermediairies) / start-up grants for
  specific infrastructure for
  collective research and innovation platforms

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Former Cluster Policy

• Definition A network in which firms/organisations
  in Flanders spontaneously participate to develop
  links with the scientific community in the field
  of
• scientific research
• product development
• technological innovation
• export promotion
• Criteria To enhance competitiveness of the
  cluster, new network, combine several aspects of
  the innovation chain, create new employment,
  SME-oriented.
• Financial aid50 of the total budget of the
  organisation

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Example former cluster policyFurniture cluster

• Main actor professional organisation of the
  furniture sector (Febelhout) 200 SMEs are member
• Aim is to stimulate the competitiveness of the
  furniture industry by enhancing its creativity,
  design potential and innovation capacity
• Four action lines
• stimulating creativity (trend watching, financial
  aid for stimulating collaboration with a
  profesional designer),
• market research and potential
• E-business platform
• Education and training
• Grant about 1 million euro 1997-2001

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Technological Valley

• A Flemish Valley is a cluster of knowledge driven
  by high-tech enterprises, knowledge centres and
  education centres
• Criteria one leading research institute,
  high-tech work force is available, instruments
  for risk funding, good infrastructure
• Aim more in the context for the promotion of the
  Flemish Region
• Timeframe top of the new-tech bubble economy,
  esp speech and language recognition FLV

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Example Technological ValleyDigital Signal
Processing Valley

• IMEC core actor / largest independent research
  institute in micro-electronics.Origin of DSP
  Valley lays in demonstration that IMEC research
  can bring economic benefits to Flanders and
  merit further governmental support.
• Two hours drive radius / English language
  newsletter, but only Flemish companies are
  memeber (25)Deepcluster application domains
  audio (Philips), communication (STMicroelectronics
  ), imaging (Agfa Gevaert)
• 2500 DSP engineers presented for marketing of
  the region for establishment of new ventures
• International cooperation with Finland (Tampere)
  and Sweden in 6 FP

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New VIS / CIN - Scheme 2001.Cooperative
Innovation Networks.

• VIS/CIN Decree philosophy
• transparent scheme, juridical sound (no
  authorisation anymore), open call
• structural financing for 2 x 2 years
• financing of projects and activities(not of
  organizations or institutes)
• management and control more follow-up and
  attention to the results and output, than
  (financial) verification of input

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New VIS / CIN - Scheme 2001.Cooperative
Innovation Networks. Definition.

• Cooperative Innovation Network
• structural cooperation between (in general)
  Flemish companies,
• in case together with knowledge
  organizations(universities, RD centres, )
• with the aim to organize activities of collective
  research, technological advice and/or
  technological innovation stimulation
• CIN can be seen as a counter part of support to
  individual companies

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New VIS /CIN - Scheme 2001Structure of a
Cooperative Innovation Network

• Formal juridical entity with at least 10 member
  companies or
• network organisation based on a consortium
  agreement, with main contractor or
• a de facto CIN organization (collective research
  organization, federations, )

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Cooperative Innovation Networks an overview.

• Flemish Innovation Cooperations (VIS) can
  introduce 4 types of projects.
• Technology advice
• Thematic cooperations (cluster projects)
• Subregional cooperations
• Collective research

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CIN project types.

• Projects of Thematic Innovation Stimulation (TIS)
• target group of companies with a common
  technological need or opportunity
• must cover Flanders
• Projects of Subregional Innovation Stimulation
  (RIS)
• target group of companies in a geographical
  region
• all (industrial) sectors
• Projects Technological Services (TD)
• to offer technological (innovative) solutions and
  opportunities
• Projects Collective Research (CO)
• from strategic long term research to cooperative
  technology transfer projects

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VIS/CIN-TIS Thematic networks

• Objective to bring together a group of companies
  to create networking and synergy. The instigators
  of the network receive financial support for
  their actions.
• Duration 2 x 2 years
• Participation open to everyone, cost are
  limited(maximum entrance fee for members of
  3.000 )Financial support 80
• Actual situation about 40 networks in high tech
  and traditional sectors
• Examples mechatronics, aluminium, steelplate
  working, Food conservation, Multimedia, Housing
  for elderly and disabled people,
• Actions seminars, workshops, advice in preparing
  innovation plans,
• Approximately 60 persons (full time)

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Expected resultsEnhanced Innovation Activity

• Measured by e.g.
• Number of innovation projects submitted for IWT
  support
• Number of technological cooperation agreements
  between companies in the target group
• Number of front-office services provided
• Number of innovation advices
• Number of networking events
• (All of course at acceptable quality levels)

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Description of the project type TIS

• First call (2001) 14 projects approved,
  starting date January 2002
• Second call (2002) 26 projects approved
• Expected date of completion of programmeopen
  ended
• Previously ad hoc Clusters
• The predominant role of the government
• selection and funding (80 of costs)
• coordination of actors
• support to actors

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Thematic innovation stimulation Origin of the
initiatives.
Proposals by clusters, VIS/CIN en new initiatives
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Clusters
15
VIS/CIN
10
New
5
0
2001
2002
2003
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Sectors involved in Thematic Innovation
Stimulation
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TIS 2003

• Main aid 515.240 euro / project for 4 years
• Average number of persons 1.7 FTE
• Total number of advisors 63 FTE
• Main cost per advisor 100.000 euro / year

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Global results of VIS /CIN (reported by the
initiatives).
112,5 FTE-year, 76 / 93 projects reported
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Example TISLeuven E-Security Cluster

• Leuven Security Excellence provides a single
  point of entry to a unique geographic
  concentration of world-class e-security expertise
  and e-security professionals in the Leuven -
  Brussels region
• Network of all actors in e-security value
  chainusers, hardware and software vendors,
  service and knowledge providors, experts in
  information technology law and research
  institutes
• Creation of internationally accepted standards
  that makes network trendsetter for e-security

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Flemish Technology Excellence Poles

• Driver need for more strategic basic research
• Aim long-term collaboration between industry and
  academia
• Fits in a broader scope of measures
• Public research organisations VITO (materials,
  energy and environment), IMEC (micro-electronics),
  VIB (biotechnology)
• Funding scheme of IWT Strategic Basic Research
• Funds at the universities for resarch
• Examples
• Flanders Institute for Logistics
• Flanders Mechatronics Technology Centre
• Flanders Innovation Centre for Communication in
  the graphical sector
• Flanders Drive

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Example Flanders Drive

• Automotive industry very important for employment
  (production/habitant). MNE production plants.
• Trauma closure Renault 1995Anchoring
  constructors through performant
  suppliers-Flanders Drive Non profit
  organisation 1996
• Testing and Engineering Centre (VETC nv) for
  mechanical product development (20 Meuro, with
  European aid) 2004
• LMS is initiator(world leader in CA dynamic
  testing for automotive)

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Example Flanders Institute for Logistics

• Flanders Central location for EDCs (180)Antwerp
  harbour (largest petrochemical cluster)
• Competition / cooperation with the
  Netherlandspressure of East-European transport
  companiesshift of EDC to the East with
  EU-enlargement.Promote Delta Port region
  (Holland, Flanders, Nordrhein Westfalen)
• Central role of academic entrepreneurs in
  initiating the network (firms are
  interchangeable).
• Shift to value-added logistics service
  innovation and organisational innovation (3PL/4PL)

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Conclusions (1)

• Cluster organizations are regional by nature
• Custer development in Flanders is also determined
  by the characteristics of the regional economy
  firm-based enterprise culture strong export
  orientation lack of big MNEs (because of weak
  capital market) strong B2B, part of global
  production systems.
• Cluster policies are a necessary instrument for
  structural change

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Conclusions (2)

• The evolution of economic clustering,
  establishment of cluster organizations and
  development of cluster policies need to be in
  co-evolution.
• Cluster policy was too early in the nineties
  because business actors were not engaged in
  networking,but too late at the end of the
  century because institutional set-up was not
  ready.

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Conclusions (3)

• Cluster policies have to be organized in a
  learning mode. In particular the identification
  and analysis of innovative clusters is a model
  for strategic positioning the national innovation
  system in a global economy (alliances and
  co-opetition).
• International policy learning can compensate for
  that if enough absorptive capacity is present.