Theme 3:

COOPERATION IN COMMON KEY COMPETENCE FIELDS

Proposal of Key Competencies of Cross-border Area

Damjan KavašInstitute for Economic Research

Ljubljana, 01. 12. 2011

Priorities for cooperation in the selected topics Gaps in knowledge and sources

Key common and complementary competences

in the selected topics

EU sectoral andtechnological trends

Capacities (competencies) in the selected topics of the regions involved:

analysis, policy framework, SWOT, ongoing/past projects

Global challenges

COMMON CBC OBJECTIVES IN THE SELECTED TOPICS EUROPE 2020

2. KEY COMMON AND COMPLEMENTARY COMPETENCIESUsually in regions there is an inevitable tendency to concentrate on the weaknesses (constraints). Definition of competencies (strengths) will be prepared by answering questions such as the following: What the region/area is doing well? What unique resources can the region/area draw on? What do others see as our strengths? Strengths represent the assets of the region.

In order to achieve a critical mass (knowledge, human resources, financial means) we propose to focus in the first place on strengths of the REGIOLAB AREA, where we will identify: Common competencies (focus on niches): potential strengths of the area,

where joint activities (projects) are feasible: common topics, no conflicts (competition) between both sides of the border

Complementary competencies (synergies): cooperation is predominantly based on exchange of information and experience

2. KEY COMMON AND COMPLEMENTARY COMPETENCIES

Besides strengths we have to observe weaknesses, opportunities and threats that have important impact on socio-economic development of the area. Common and complementary competencies of the cross-border (Regiolab) area will be presented and accepted at the Joint workshop.

We will focus on activities that are dominantly oriented towards economic development with a strong role of the business sector. Selection of topics is based on Priority 1 of the existing Operational Programme: Cross-Border Cooperation Slovenia – Austria 2007–2013, taking into account horizontal themes.

Horizontal themes, tools and principles:

Human resource development, Networking, Innovation

Information and communication technology

Sustainable development, Equal opportunities

Priority 1: Priority 2:

COMPETITIVENESS, KNOWLEDGE AND ECONOMIC COOPERATION

SUSTAINABLE AND BALANCED DEVELOPMENT

SME development Management of natural resources

Tourism Environment and energy

Framework for knowledge-based economy Urban and regional development

Thematic fields of strengths Social and cultural development

Priority 3: TECHNICAL ASSISTANCE

Tables below present the integrated SWOT analysis of the cross-border area and propose the key common and complementary competencies by field / theme. The proposed key competencies are coloured:

Common competencies (focus on niches): coloured in yellow Complementary competencies (synergies): coloured in green

Demography

Strengths Rank (1-3)

Weaknesses Rank (1-3)

Opportunities Rank (1-3)

Threats Rank (1-3)

Population growth (esp. at the Slovene side an in urban centres)

2 Ageing of population in all regions 1 Increasing levels of health and health care will enable people to stay productive for more years than was possible in the past

1 Increasing workplace stress levels will prevent people to stay in jobs for a longer time than was possible in the past

1

Migration of young people from rural to urban centres due to lack of employment possibilities

1 Increasing population pressure in developing countries will provide supply of – often well-trained – young people

1 Mistrust against foreigners – to be found also amongst other Alpine populations – will hinder immigration to be wholeheartedly welcomed as a means to fight demographic trends

1

Many other regions of nearby European countries have ageing populations, too, limiting immigration pool from countries with similar cultures

1

Further ageing of population 1

Brain-drain and emigration among young adults

2

Economy

Strengths Rank (1-3)

Weaknesses Rank (1-3)

Opportunities Rank (1-3)

Threats Rank (1-3)

Industrial clusters established in specific fields of strong industries, especially at the Austrian side

1 Few cross-border co-operations of industrial clusters and networks

2 Increasing possibilities for collaboration and information gathering over the Internet, improved transport infrastructures & logistic services reduce the effect of limited local availability of customers, suppliers, or development partners

1 Similar development visions – based on IT and renewable energy technology – will result in very strong competition in regional “future technologies“

2

Newly emerging strong industries, esp. in renewable energy

2 Bankruptcy of large manufacturing companies

1 Increased awareness of environmental issues and the expected consequences of climate change could attract investments in the field of green technologies, renewable energy and measures for efficient use of energy

1 Increasing international competition

1

Industrial tradition 2 Lack of knowledge based services (esp. at the Slovene side) and weak (export) competitiveness of the service sector

1 Demand for creative industries 2 Continuation of economic downturn

1

Export orientation of companies

1 Lack of business activities in the rural parts

2

Several business and industrial sites (or space for them) available

2 Low level of innovation in companies (esp. at the Slovene side)

2

Problems in the banking sector 1

Tourism

Strengths Rank

(1-3)Weaknesses Rank

(1-3)Opportunities Rank

(1-3)Threats Rank

(1-3)

Internationally competitive destinations (alpine & lakeside resorts, protected areas) in many areas

1 Low level of cross border destination development with internationaly visible tourist offers

2 Political unrest in the Mediterranean countries will increase attractiveness of safe holidays in Regiolab regions

2 Economic crisis in Mediterranean countries will drive down prices there and put pressure on prices here.

1

Variety of the landscape (Alpine region, wine growing regions, nature protection areas, thermal springs, cultural heritage) as a potential for development of attractive tourism products

1 Lack of destination management, especially at the Slovene side (lack of cooperation, lack of branding)

1 Increasing energy / fuel prices will increase cost of travel, esp. to overseas destinations, and thereby increase the attractiveness of destinations in the area for domestic tourists and for tourists from neighbouring countries

2 Climate change will adversely affect weather both in summer and winter, diminishing the attraction of the area relatively to destinations less dependent on outdoor offers

1

Innovative products existing 1 Inadequate quality of accommodation and service, especially at the Slovene side

2 Increasing wealth in CEE, Russia and Asian countries will increase the number of tourists from these markets

1 Decrease in spending capacity of population and tourists

1

Rich offer of wines and food 2 Non-recognisability of destinations andsub-destinations

1 Green tourism (nature, cultural heritage, personalisation, local supply)

1 Similar tourist products are provided in neighbouring regions/countries

2

Several traditional sport and cultural events

1

Good cultural offer also in smaller towns, but poorly integrated into tourism

2

Agriculture & Rural development

Strengths Rank (1-3)

Weaknesses Rank (1-3)

Opportunities Rank (1-3)

Threats Rank (1-3)

A lot of good practices in the field of organic farming, new products, food processing, innovative marketing (new brands, direct marketing, agro-tourism)

2 Small-sized farming structure is a permanent risk

2 Increasing concerns about food safety make domestic, quality-assured offers more attractive

2 Ever improved transport infrastructure & logistic technologies increase competition in food markets

1

Natural opportunities for traditional, organic and integral production in agriculture and forestry

1 Unfavourable age and education structure of farmers

1 Lifestyle changes to more resource- and value-consciousness increase demand for organic, local, and more expensive specialty food

2 Perspectives of highly liberalised European markets after 2013 represent a fundamental challenge for the majority of the farmers and – in a wider view – also for the entire rural areas

1

Expert services available providing education and training for people involved with agriculture and food processing

2 Low rate of specialisation in agriculture

2 Abandonment of production in agriculture and forestry and thus loss of traditional rural lifestyle

2

Diversity of cultural landscape and preservation of the natural environment on the countryside

1 Agriculture and forestry do not provide for sufficient income

2

Rich cultural (tradition, food, drinks, crafts) and natural heritage

1 Lack of efficient vertical and horizontal networking in agrifood and forestry sector and lack of efficient marketing, especially in Slovenia

1

Domestic products are not competitive in the single and world markets

1

Research & Innovation

Strengths Rank (1-3)

Weaknesses Rank (1-3)

Opportunities Rank (1-3)

Threats Rank (1-3)

A number of universities, many non-university research centres, competence centres and centres of excellence are present in the area

1 Low level of cross-border co-operation in the fields of research and innovation

2 Increasing international competition in many industries put pressure on companies to innovate and do research

1 Increasing pressure for specialisation of R&D service providers to keep up with state-of-the-art cut them off from regional customers

2

Some world-class research companies are present in the area

1 Low participation of regional SME's in innovation and technology transfer activities

1 Increasing possibilities for collaboration and information gathering over the Internet reduce especially the effect of limited local availability of R&D services or partners

1 Increased international competition of R&D service providers erode home markets of regional research institutes

2

Support infrastructure existing: technology parks and incubators offering space, services and seed capital

2 Low level of business R&D at the Slovene side

2 Expected faster development of R&D sectors in neighbouring (non-EU) countries might hinder involvement of regional R&D institutions into international consortia

1

Poor links between university's research capacities and economy (also due to lack of larger and innovative companies) and authorities, esp. at the Slovene side

3

Overlapping of support institutions: incomplete support

2

Lack of employment opportunities for highly educated individuals

1

Human Resources

Strengths Rank (1-3)

Weaknesses Rank (1-3)

Opportunities Rank (1-3)

Threats Rank (1-3)

Growth of the educational level of the employed

1 High unemployment rates, constantly above the national average

1 Increasing demand for work-life balance favours regions that offer both high-tech firms and recreation in a beautiful natural environment

2 In addition to demographic change, trend to “soft“ studies dries up supply of technology experts for traditional manufacturing- and high-tech sectors alike

1

A range of training and educational institutions, especially in urban centres (universities, high school colleges, research organisations, training organisations)

1 Lack of human resources in natural sciences and technology – of all qualification levels from university degrees to apprenticeships

1 Liberalisation of the Austrian job market on 1.5.2011 could support the Austrian industry (metal, electrics) to get additional human resources

2 In addition to demographic change, trend to higher schooling for most children dries up supply of skilled workers of lower qualification levels

1

Growth in the inclusion of people in lifelong learning

1 Structural unemployment (older workers, less educated, young workers, women)

1 Political support for social entrepreneurship

3 "Brain-drain“ due to lack of adequate jobs in the region might continue and increase

3

New regional educational institutions and programmes

1 High (and growing) share of unemployed with tertiary education (esp. at the Slovene side)

2

Specialised support institutions/programmes in place for unemployed and other vulnerable target groups

2 Educational system (all levels) rather rigid; does not respond to market needs

2

Well educated and trained workforce in some sectors

2 Business sector is not able to express longer-term needs (lack o larger companies) and insufficiently invests in HR development (esp. at the Slovene side)

2

Existence of regional scholarships schemes 2

ICT and Information society

Strengths Rank

(1-3)Weaknesses Rank

(1-3)Opportunities Rank

(1-3)Threats Rank

(1-3)Rather high level of ICT infrastructure and services (e-services) development; broadband Internet access in progress, also in some smaller (rural) municipalities

2 ICT services still rather poorly used in many SMEs

3 Further national and EU support for development of ICT infrastructure and services will enable development of new solutions and increase the use of ICT services in poorly covered areas of the region and among specific groups of potential users

2 Small market will further hinder competitiveness among ICT service providers resulting in higher costs

2

Generally, lower level of ICT infrastructure & services development in rural areas (with some exceptions)

2 Digitalization 1 »Digital divide« 2

Local and regional development

Strengths Rank (1-3)

Weaknesses Rank (1-3)

Opportunities Rank (1-3)

Threats Rank (1-3)

Established regional and local development structures

2 Insufficient project management capacities, in particular in smaller municipalities and with other actors at the local level

1 Increased companies‘ demand for innovation and R&D driven by international competition creates more responsive customer base of development institutions

2 Increasing pressure on public budgets will limit available resources for support activities

1

Strategic position as link between the EU (Germany, Italy, Central Europe)

1 Insufficient funds, in particular in smaller municipalities and with other actors at the local level

1 Improved, more focused and nationally better coordinated support for regional development focusing on main goals and obstacles could support agreed primary projects in the region (if such agreed actions exist)

3 Instable and politically to much influenced national policy in regional development may continue

2

History of projects that did not work so well will increase cynicism among development institution personnel as well as among the public (at the Slovene side)

2 Decreasing EU funds (Cohesion Policy, Rural Development)

1

Overlapping of support institutions 1

Lack of cooperation between support institutions and strong local interest

2

A large number of municipalities – rather low level of networking and cooperation, no regional goals / strategies implemented (at the Slovene side)

3

General lack of cooperation among actors in the region, in every fields and at all levels (at the Slovene side)

3

Thank you for your kind attention!

Damjan Kavaš Contact: kavasd@ier.si