Can peripheral areas innovate? Sara Davies Open Innovation Forum, Kouvola, 23-24 August 2010 Research funded by the UK Innovation Centre (BIS, ESRC, NESTA and TSB) - PowerPoint PPT Presentation

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Can peripheral areas innovate? Sara Davies Open Innovation Forum, Kouvola, 23-24 August 2010 Research funded by the UK Innovation Centre (BIS, ESRC, NESTA and TSB)

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Can peripheral areas innovate? Sara Davies Open Innovation Forum, Kouvola, 23-24 August 2010 Research funded by the UK Innovation Centre (BIS, ESRC, NESTA and TSB) – PowerPoint PPT presentation

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Title: Can peripheral areas innovate? Sara Davies Open Innovation Forum, Kouvola, 23-24 August 2010 Research funded by the UK Innovation Centre (BIS, ESRC, NESTA and TSB)


1
Can peripheral areas innovate? Sara
DaviesOpen Innovation Forum, Kouvola, 23-24
August 2010 Research funded by the UK
Innovation Centre (BIS, ESRC, NESTA and TSB)
2
Outline
  • Concepts of innovation and peripherality
  • Sectoral structure and innovation
  • Conditions for innovation
  • Innovative strategies in peripheral areas
  • Policy challenges

3
Concepts of innovationand peripherality
  • Innovation and geographical proximity
  • Policy focus on innovation in the regions
  • What about peripheral/rural areas?
  • Case studies of innovation in remote areas
  • Social / organisational proximity
  • ICT opening up access to markets/knowledge
  • Idea of hidden innovation
  • Practices not reflected in RD/patent data

4
Patent applications/mn pop, 2007,National 2
rural regions(Source Eurostat)
5
RD spend as of GDP, 2007,National 2 rural
regions(Note France Italy data are for 2004.
Source Eurostat)
6
Sectoral structure and innovation in peripheral
areas
  • Sectoral structure differs in peripheral areas
  • More agriculture/forestry/fishing and energy
  • Less manufacturing
  • Fewer business services
  • More tourism/hospitality public services
  • Innovation varies across sectors
  • Traditional definitions of innovation are biased
    towards technology-based manufacturing

7
Conditions for innovation in peripheral areas
(1)(Framework developed by NESTA, UK)
Weaknesses Strengths
Entrepreneurship Scattered firms Weak profitability Self-employment (but not growth-oriented)
Skills Small labour pool, Weaker education incentives Hidden skills, Quality of life
Access to finance Few intermediaries Networks, Public aid
Public research Few universities / public RD centres Some niches
8
Conditions for innovation in peripheral areas (2)
Weaknesses Strengths
Competition Few firms ?
Demand Small local markets ?
Openness Hard Varies across countries but weaker than in cities Varies
Openness Soft Sparse population Strong ties may create risks Links across sectors within the region
9
Innovative strategies in peripheral areas
  • Becoming a leader
  • Using local natural resources
  • Drawing on an image of remoteness
  • Building on local human capital
  • Creating new processes services

10
Innovative strategies (1) Becoming a leader
  • Eg. oil/gas-related engineering, electronics
  • Kinds of innovation
  • Can include RD, technological, organisational
    and marketing innovations in specialist sectors
  • World-leading products for global markets
  • Conditions for innovation
  • Public funding for infrastructure, higher
    education, research, business aid
  • Attraction of dynamic, growing firms
  • But
  • Few regions
  • Few sectors even in these regions

11
Innovative strategies (2)Using local natural
resources
  • Eg. renewable energies, Arctic technologies
  • Kinds of innovation
  • Can include RD, technological, organisational
    and marketing innovations in specialist sectors
  • Focused on national/global markets
  • Conditions for innovation
  • Expertise and technology, often from outside
  • Natural resources that need to be used in the
    region
  • But
  • Limited to resource-based sectors

12
Innovative strategies (3)Drawing on an image of
remoteness
  • Eg. food, creative sector, tourism, outdoor goods
  • Kinds of innovation
  • Mainly organisational and marketing
  • Focused on national/global markets
  • Conditions for innovation
  • Value of remoteness in urban markets
  • Local human skills expertise
  • Policy support for infrastructure
  • But
  • Limited to certain sectors (some with low
    profitability)

13
Innovative strategies (4) Building on local
human capital
  • Eg. business services, creatives, tourism
  • Kinds of innovation
  • Mainly organisational, marketing, technological
    adaptation
  • Focused on national/global markets
  • Conditions for innovation
  • Depends on areas natural, cultural, social
    attractiveness
  • Transport and ICT networks
  • But
  • Some sectors have low pay, long hours and poor
    job security

14
Innovative strategies (5)Creating new processes
services
  • Eg. e-health, community enterprise
  • Kinds of innovation
  • Mainly organisational, technological adaptation
  • Focused on local/national markets
  • Conditions for innovation
  • Public sector funding or commitment to universal
    services
  • Local expertise, skills and commitment
  • Interest in other regions (eg. more efficient
    public services)
  • But
  • Limited sectors
  • Often public sector dependence

15
Policy challenges
  • Improve conditions for innovation in peripheral
    areas
  • Encourage entrepreneurship
  • Improve access to finance
  • Enhance (links to) public research
  • Stimulate (participation in) competition
  • Boost (access to) demand
  • Build infrastructure to allow physical openness
  • Promote openness in terms of attitudes and
    orientation
  • Support firms existing innovation strategies
    within the region
  • Becoming a leader
  • Using local natural resources
  • Drawing on an image of remoteness
  • Building on local human resources
  • Creating new processes and services

16
  • Thank you for listening!
  • Sara.Davies_at_strath.ac.uk
  • http//www.eprc.strath.ac.uk/irr/
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