Innovation policy governance and regional
innovation systems
Per Koch, Director for Analysis and Strategic Development
The Research Council of Norway
DEMOSREG-conference Sept 18, Oslo
Companies are increasingly operating on
three levels
 The regional level
 Local suppliers, customers,
and knowledge institutions
(regional value chains and
clusters)
 The national level
 National partners (national
value chains and clusters)
 The global level
 Suppliers, customers and
other partners in other
countries.
The three levels of innovation policy
governance
International innovation policy cooperation
 (EU Framework Programme, CIP)
National innovation policy development
 (National programmes for R&D and innovation,
National knowledge infrastructure)
Regional innovation policy development
 (Local knowledge institutions, local public
innovation funding)
Normal one dimensional model: Competence
flows in the national innovation system
Industrial structure
International framework
Policyinstitutions
Customers
and users
Company
R&D
Institutions
Learning
Networks
innovation
Suppliers
Public policy
Consultants
Financial
Institutions
Cultural framework
A national innovation policy without a
regional dimension
 There is a tendency among
some policy makers to focus
on the national arena only
 Of practical reasons: it is
manageable
 Of ideological reasons: The
nation as an arena for fair
competition and neutral as
regards picking winners
 Tradition
A national innovation policy without a
regional dimension, problems
 There may be a lack of
analysis of the regional
division of labor within the
national innovation system.
 The regional embedment of
core industries may be
ignored.
 Special regional competence
needs may be ignored.
Others focus on top-down regional policy
without innovation
 Of practical reasons: The
need for employment in the
regions
 Of ideological reasons:
regions against the capital,
North against the South etc.,
 especially when a
regionally oriented party
takes over the ministry
A focus on top-down regional policy sans
innovation, problems
 Lack of regional policies that
takes the role of
development of regional
clusters into consideration.
 A one-sided focus on
subsidies and funding rather
than innovation and growth.
Another one dimensional model: Competence
flows within the regional innovation system
Industrial structure
Regional framework
Local policyinstitutions
Local customers
and users
Company
Local R&D
Institutions
Learning
Networks
innovation
Local suppliers
Regional policy
Consultants
Financial
Institutions
Cultural framework
Regionally based innovation policies
 In some countries regions take
a lead in developing innovation
policies for their own region:
 Bottom-up initiatives
 May be focused on the needs of
one region only
 Positive effects:
 Strengthens local innovation
capabilities
 Leads to local innovation policy
learning
Regionally based innovation policies,
problems
 National fragmentation of
policy development
 Conflict between national and
regional priorities
 Unnecessary duplication of
knowledge base development
 Unnecessary duplication of
policy learning strategies
Competence flows in the global innovation
system
Global markets
International framework
EU, OECD,
WTO, UN…
Customers
and users
Multinationals
Company
co-op and regulations
R&D
Institutions
Learning
Networks
innovation
Suppliers
International policy
EU FWP
Int R&D coop
Consultants
Financial
Institutions
Int
knowledge
markets
Global cultural framework
Problems with some current innovation
policy efforts in Europe
 Benchmarking and economic theory
ignores the heterogeneity of national
and regional innovation systems
 Regulations do not take the different
national and regional development
trajectories and socio-cultural
differences into consideration
 There is a tendency to imagine
regions, countries and continents as
competing firms.
 Regional strategies are not coordinated
with national strategies which are not
seem in the context of international
cooperation efforts (EU research and
innovation)
One regional front office for nearly all
innovation policy measures
 The local Innovation Norway offices
 Experts cooperating with county authorities
 The Research Council of Norway has representatives in
most of Innovation Norway’s regional offices
 The local staff is to help companies and their partners to
identify relevant regional, national and international
schemes.
The VRI Programme
 The Research Council of Norway has a separate
division for research-based innovation
 The counties and the Research Council co-finance
 R&D projects with participation from local industry and
society
 Innovation studies made by innovation researchers
 Develop a common learning arena, knitting the
counties together
OBJECTIVE: To foster innovation, knowledge development,
and value creation and strengthened R&D efforts in and
for the regions.
Need for a three-level national strategy
including all three levels
Need for a broad-based analysis of
 The national innovation system and
its regional components
 The NIS in a global context
 Identification of strengths and
weaknesses
 Identification of priority areas (i.e.
areas where the RIS’ and NIS has
strong knowledge and industrial
bases)
 Leading up to new strategic policychoices
The Research Council of Norway
www.rcn.no
[email protected]