Regional innovation strategies beyond Lisbon targets: improved regional innovation performance through cluster management

Dr. Rolf Reiner

Wirtschaftsförderung Region Stuttgart GmbH (WRS)

Content

1. Introduction

the European automotive sector

trends in the automotive sector

the cluster management approach

2. Background

regions and clusters

3. Services and tools

ppp models

examples for services

Lessons learned

Outlook

Introduction: the European automotive sector

OEM and suppliers:

Big multi-technology suppliers

medium-sized, family-owned suppliers of modules in the pre-modularisation sense

suppliers of components, mostly small firms.

Hierarchical structure

Globalisation and regionalisation

System integration and modularisation

Introduction: trends in the automotive sector

High innovation pressure

Increased number of car types and variants

Niches and specialists, knowledge intensive services

Reduced development time

Increased cost pressure and globalisation of the markets

Re-configuration of the production value chain

SMEs need high flexibility and inventiveness.

Innovation is crucial for competetiveness.

Introduction: the cluster management approach

information and communication services

initiation and support of co-operation projects

support of technology transfer

training and qualification

financial services

public relations and marketing

internationalisation

exchange of knowledge and good practices

Overall aim: to develop capabilities at small and medium enterprises and link them up to the fast changing developments in the sector.

Background: Stuttgart Region

~155.000 companies

Gross domestic product: 92 billion Euro (2003)

Unemployment rate ~6 %

Most important industries: Automotive, Engineering, Electrical, IT, Media.

Headquarter of corporate groups such as DaimlerChrysler, Porsche, Bosch, Trumpf, Behr, IBM, HP, Alcatel-SEL etc.

Extremely high research intensity and density

R&D expenditure by industry in the Stuttgart Region makes ~6 % of the GDP!

Background: automotive cluster in the Stuttgart Region

OEM‘s: DaimlerChrysler, Porsche

Suppliers: Bosch, Mahle, Behr, Valeo, TRW, Bennecke-Kaliko, Mann + Hummel, Recaro, Harmann/Becker, ......

SME‘s: 300

Machine Building Industry

Engineering

Research institutions

Roughly 180.000 Jobs

Raw materials, standardized parts

(Tier3)

Component suppliers(Tier2)

Suppliers of systems and modules

(Tier1)

OEMengineering

logistics

IT services

machine and plant

construction

tooling

265 partner companies:

175 SME

155 production companies

60 companies5 OEM

103 service providers & institutions

90 suppliers

Regional distribution:

Upper Austria 165

Other provinces 85

Germany 20

mould making

Background: automotive cluster in Upper Austria

Background: the Hungarian automotive sector

Production Value 6.44 Billion USD (2001)

14% of the total Industrial Production ; 31% of the machining industry

Total number companies: ~ 280-300 Number of companies with system certificates: ~ 220

companies

Advanced automotive systems in place: ~ 110 companies

Total number of employees: ~ 85.000 people

Export ratio: above 90 %

Most important export market: European Union

Significant ratio of foreign ownership: above 80% Approx. 10% of the total FDI, approx. 10 billion Euro in

automotive field

Towards ppp: the emergence of high-tech clusters in the Stuttgart Region

19001930

19601985

Future?

AutomotiveTelecomElectricalTextile

Radio/TVPrintAero

Automotive

Toolmaking

TextilePrint

19952005

AutomotiveTelecomElectrical

ComputersToolmakingMed techRadio/TV

PrintAerospace

AutomotiveElectrical

ComputersSoftwareTelecom

ToolmakingMed tech

MicrosystemsRadio/TVRobotics

Aerospace

AutomotiveTelecomElectrical

ComputersSoftwareMed tech

ToolmakingAutomation

RoboticsMechatronicAerospaceLogistics

AutomotiveTelecomsElectricalSoftware

ToolmakingAutomation

Simulation/VRMed tech

NanosystemsNanomaterialsTech. TextilesMechatronicAerospaceLogistics

Automotive?Nanosystems

FuelcellEnergy ConvertersSensors/actuatorsNeuroengineeringTissue-engineering

Drug modellingSentient computingAutonomous Sytems

...?

Matchstick, Portable Drilling Machine, Automobile, Spark Plug,

Perlon Stockings, Office Photocopier, Lever Arch File, Refrigerator,

Bra, Coffee- Machine, TV-Tower, Mainframe Computer, ABS, Airbag,

ESP…

Public-private partnership: identifying promising fields

Media

Automotive

Virtual Reality/Simulation

DesignICT

Toolmaking

ElectricalET

Fuelcell

A model for ppp: Regional Competence Centres

Well organized regional networks integrating possibly all regional companies, universities, research facilities working in the same field of technology.

Transformation of results to negotiable products and services

Optimization of the use of innovative potentials of companies, universities and research facilities

Stimulation and and support of co-operations(also Private-Public)

Initiation and support start-ups

Platform for (large scale) projects

Competence CentersCompetence Centers

Stuttgart RegionStuttgart Region

The Competence Centre Program

1999: Advertisement of a regional contribution program

„Regional Innovation and Competence Centres“

2000: Installing Competence Centre Support Unit at the WRS

(coordination office)

2000-2002: Supporting the implementation of „Regional Innovation

and Competence Centres“ with a contribution of 2 Mio. €

Since 2003: Supporting innovative projects initiated by the

Regional Competence Centres dealing with the support of the access to national international

contribution programmes the stimulation and support of business co-operations the support of innovative product or service development Budget for project contribution: 250.000 € per year

Competence CentersCompetence Centers

Stuttgart RegionStuttgart Region

Speech Technologies

Vaihingen/EnzMarbach

Kornwestheim

Landeshaupt-stadt

Stuttgart

Backnang

Welzheim

Weinstadt

Esslingen

Göppingen

Geislingen/Steige

Nürtingen

Kirchheim/Teck

Denkendorf

OstfildernLeinfelden-

EchterdingenFilderstadt Kreis GöppingenKreis Böblingen

Kreis Ludwigsburg

Rems-Murr-Kreis

Technical Textiles

E-Government

Environmental Technologies

Logistics

Facility Management

Telecommunication

Mechatronics

Solar Technologies

MediatechnologiesMobile Computing

Online Services

Virtual Dimension Center

Simulation and Virtual Reality in Industrial Applications

Competence Centers in the Stuttgart Region

Fuelcell Technology

Results of the Regional Competence Centre Initiative 16 Competence Centres in different fields of

technology Very high level of participation:

> 350 companies (80% SME) > 60 institutes and research facilities

Extensive private investments could be triggered with little public money

Many co-operation and/or research projects initiated (private and public funded) (> 80)

Significant improvements of the Private-Public-Partnership

Improved access to national and European funding programs for the members

Requests for additional Competence Centres (in and outside the Stuttgart Region)

The personal benefit for the participants: opportunity to get in touch with the direct contact persons – purchasers, engineers, construction, etc.

eg: Bombardier Rotax, BMW Motoren GmbH, Fronius International, Case, ECS St. Valentin, MIBA, Frictec, MIBA Sinter, Magna Intier Ebergassing, Magna Oberwaltersdorf, SKF Steyr, ZF Steyr, KTM Sportmotorcycles,…

Plant visits

Services: plant visits in Upper Austria

Further examples: services offered by PANAC

Access to industry news and information

Trainings, workshops, specialists events

Technology transfer services

Individual company assessment

Industry-wide benchmarking activity

Inter-company learning

International Relations Cluster to Cluster Cooperation (Business Forums, one-on-one business meetings,

international Cluster Cooperation projects)

Technical assistance Project management services

Involvement in EU co-operation projects

Dates and further information: www.automobil-cluster.at

Courses in „Quality management Automotive“

Services: courses offered by Clusterland Oberösterreich

Courses in „Project management Automotive“

Services: courses offered by Clusterland Oberösterreich

Some recommendations and lessons learned

Critical mass of customers needed

centralised approach for new sectors

decentralised approach for innovation support of „traditional“ businesses

Stakeholders‘ involvement necessary from the very beginning

Public support crucial for success

Cluster management by independent unit

Personal skills of cluster managers crucial for success

Lessons learned: relevance of services and activities

Stage of network creation:

Communication, marketing, events, partnering with other initiatives

Network operation:

Programs, communication, network consistence

Fostering innovation capability:

Projects, access to funding, education and training

Fostering competitiveness:

Projects, programs, education and training

Outlook

DG Enterprise and Industry supports learning in cluster management through Europe INNOVA

11 networks active within 7 industrial sectors

see: http://www.europe-innova.org

Join the first Europe INNOVA conference, Re-innovating Europe: Challenges for clusters and innovative businesses, Valencia, Spain, 26-28 November 2006

Thank You for Your Attention!

Wirtschaftsförderung Region Stuttgart GmbH

Dr. Rolf Reiner

Friedrichstr. 10

70174 Stuttgart

Germany

Phone : + 49.711.2283519

Fax : + 49.711.2283555

E-mail : rolf.reiner@region-stuttgart.de

Contact