Clusters, FDI Policies & Competitiveness in the Light of RIS3: The Basque Country caseDavid Fernández Terreros

Parallel 3.2 Topics on New Cluster Trends

12 November 2014

Clusters, FDI Policies & Competitiveness in the Light of RIS3: The Basque Country case

The Basque Country 1990s’.

A context of economic decline and industrial restructuring.

Need for a Competitiveness Upgrade.

Pioneer Cluster Policy in Europe

Clusters’ Programme: a tool of Industrial Policy to Address Competitiveness Challenges

Clusters Policy in the Basque Country 1990s’: 11 Priority Cluster 2008 : 11 Pre-clusters

CLUSTER

ORGANISATIONYEAR

ACEDE – Basque Home

Appliances Cluster 1992

AFM – Machine Tools

Cluster1992

ACICAE – Basque

Automotive Cluster1993

GAIA – Electronics &

ICT Cluster 1994

UNIPORT – Port of

Bilbao Cluster 1994

ACLIMA – Basque

Environmental Cluster1995

Energy Cluster 1996

HEGAN – Basque

Aerospace Cluster 1997

Basque Maritime -

Shipbuilding Cluster1997

Paper Cluster 1998

EIKEN – Basque

Audiovisual Cluster 2004

PRE-CLUSTER ORGANISATION YEAR

AFV - Basque Country &

Navarre Foundries Assoc. 2008

SIFE – Die-press Forging 2008

HABIC - Habitat, Wood, Office

& Hospitality Cluster 2009

Food Cluster of the Basque

Country2009

Basque BIOcluster 2009

HERRAMEX - Spanish Assoc.

of Hand tool Manufacturers2010

Spanish of Steel Products &

Equipment Exporters Assoc.2010

ERAIKUNE – Basque

Construction Cluster2010

MLC-ITS – Mobility, Logistics &

ITS Cluster2011

MAFEX Spanish Railway

Assoc.2012

LANGUNE Basque Assoc. of

Language Industries 2012

Economic Development & Clusters Policies reviewing and updating

Basque Country

Industry Plan 2013-2016

Basque Science,

Technology & Innovation Plan 2015

RIS3

“a right balance betweenCompetition and Co-operation Leads to Excellence.”

RIS3: funding allocation criteria within HORIZON 2020 & European SFI

RIS3 a precondition & allocation criteria

for EFSI.

RIS3 strategies are defined as

integrated, place-based economic transformation agendas in thenational/regional level:

• Focusing policy support & investments on key national/regionalpriorities, challenges & needs for knowledge-based development.

• Building on each country/region’s strengths, competitiveadvantages & potential for excellence.

• Supporting technological as well as practice-based innovation &aiming to stimulate private sector investment. Public PrivatePartnership

• Getting stakeholders fully involved and encouraging innovation &experimentation in a process of Entreprenurial Discovery.

RIS3

RIS3

RIS3

Focusing resources Prioritisation

Building on each country/region’s Strengths Specialisation

Bottom Up – PPP - Open Innovation Entrepreneurial Discovery

Social, Organisational, Market, Service & Technological Broad View of Innovation

Monitoring & Evaluation Accountability

More Efficient Resources Allocation

&

Higher Impact

Basque Country RIS3

Priority domains: Smart Specialisation of the Basque Country

ADVANCED MANUFACTURING

Transportation

& mobility

Equipment

ENERGY

Smart

Grids

Renewable

Offshore

Electrification

Storage

HIGH TECHNOLOGY INTENSIVE

Micro Nano

Bio-Health ICT / CPS*(*) Cyber-Physical Systems

Basque Country’s RIS3: Priority Domains and KETs

Cross-cluster solutions

A Joint Offer of Cleantech & Sustainable UrbanDevelopment Solutions

Related Diversification: Wave Energy

The Biscay Marine Energy Platform(BIMEP) is an open sea test infrastructurefor research & demonstration of offshoreWave Energy Converters (WEC).

Mutriku OSC Project. Since 2011,the 1st plant in Europe incommercial operation using Oceanenergy to generate electricity.

Hybridisation for Industrial Transformation

A Joint Offshore Wind Energy Work Group:

+ 70 Companies

Working on a first Offshore Wind Farm 50 MW

Starting collaboration with other European Clusters.

Public-Private Engagement

Cross-cluster solutions & Public-Private Partnerships

Open Innovation & Public-Private Partnerships

• 3 Year Mobility Lab joint project “Mobility for Sustainable Territories”

• Design, development and validation of new Mobility technologies.

• One of 3 Basque projects in the Living Lab initiative, promoted by the EUin order to boost new models of open innovation & collaborationbetween the Administration, Business community and Society.

Coopetition & Public-Private Partnerships

Open Innovation & Innovation through Cooperation

26 Companies (local & multinational, OEM, Tier1, Tier2 and Tier3) have set up R&D units in AIC premises.

• Will allow to Integrate & Validate co-developed Advanced technologies &innovations.

• Open & Customer Driven Innovation, ensuring its Rapid Transfer to theMarketplace.

• Public-private Governance: a mix of industrial founding partners, institutionalstakeholders (Basque Country & Provincial Govs.), University, R&D centres & relevantCluster organisations.

• Better Alignment between Technology Providers and User Clients.

CFA Aerospace: Aerospace cluster + Machine Tool Cluster,

CFA Wind Energy WINDBOX: Energy + Machine Tool Cluster.

Cross-cluster cooperation: ADVANCED MANUFACTURING CENTRES

FDI Policy in the Basque Country

Invest in the Basque Country: a Lean Team structure based on distributed knowledge.

SPRI

Support

Programmes

Sectors

Operational

Costs

Infrastructure

Logistics

Diputacion

es ForalesDDEC

DMAPAP

DEAS

CEIs

TECH

Parks

SPRILUR

Employers

’ Board

EVE

Utilities

SGCR

Clusters &

Pre-Clusters

Technolog

y Centres

Other

Agencies:

Environment,

Energy

Sector

Diversification

Initiatives

Business

Associations

Port of

Bilbao

Vías

Port of

Pasaia

Bilbao

Air

• Automotive

• Advanced

Manufacturing

• Aerospace

• Agro food

• Audiovisuals

• Shipbuilding

• ICT (GAIA)

• MLC-ITS

• Environment

• Energy Cluster

• HABIC

• Construction

• Household

appliances

• Paper Cluster

• Railway Eq.

• Uniport

• …

• Universities (UPV/EHU,

Deusto, UM/MU)

• Basic Excellence Research

Centres (BERCs)

• Cooperative Research

Centres (CICs)

• TECNALIA

• IK4

• Sector Technology Centres

•EVE

•IHOBE

•BIOBASQUE

•NANOBASQUE

•BASQUETOUR

•AGRAGEX

•FLUIDEX

•FUNDIGEX

•HERRAMEX

•SIDEREX

•AVIC

Working on a task-force scheme for each project, engaging relevant cluster organisations,

and other agents and key players in a matrix lead by Invest in the Basque Country.

Invest in the Basque Country: THE CLUSTERS’s Role

Clusters’ Main Contribution within FDI Policy

Clusters role within FDI policy implementation:

Providing relevant information for drafting location promotiondocuments and, together with qualified contacts, for specificinvestment location proposals.

Identifying portfolio of local companies/projects that might bereinforced through Co-investment and FDI, fostering strategicpartnerships.

• Defining an Action Plan for Co-investment & Urgent FDI search forlocal companies threatened with closure or delocalisation.

Identifying new opportunities and specific target companies andhelping to prioritize the most interesting niches for attracting FDI intothe Basque Country:

• Allowing for related diversification and hybridisation.• Strengthening the Value Chain.

Diagnostics for Proactive Action in FDI Attraction & Development: ENERGY

NICHE Priority MAIN REASONS MAIN ASSETS (Attractiveness Factors)

T&D Smart

Grids

HVDC • Would have a driving effect on

Basque suppliers with relevant

capabilities.

• Possible increased activity of

multinationals currently located

in the B.C.

• Existence of local companies that could be potential

partners for a JV agreement.

• Presence HVDC companies in the BC currently

engaged in other activities (aftercare FDI

development).

Wind Energy

(Offshore)

Another

Leader

OEM

• Would have a driving effect on

the network of Basque

suppliers.

• There is no market competition

in Euskadi

• Presence of a large network of companies and

Technology Centres in Onshore and Offshore wind

power.

• Sea Access to key offshore markets

Storage Batteries /

storage

systems

Current lack of industrial capacity

to manufacture the batteries.

• Linked with development/ attraction of an Electric

Vehicle OEM.

• Presence of companies integrating storage

technologies and

Marine

Energies

Converters Possibility to take advantage of

various initiatives with

considerable public investment

(BIMEP)

• Existence of demonstration infrastructure and other

initiatives with public support (BIMEP, Mutriku Wave

Power Plant).

• Presence of companies in the maritime and

offshore sectors.

Electric

Vehicle

Electric

Vehicle

OEM

It would exert a pull effect on

energy and automotive cluster

suppliers

• Charge infrastructure already in place (IBIL

government agency).

• Access to major markets in Europe.

• Presence of a remarkable supply base in the

energy and automotive clusters.

“When Small Is Beautiful; Lessons From Highly–Innovative Smaller Countries”

Available at:http://www.nesta.org.uk/sites/default/files/when20small20is20beautiful20final.pdf

“When Small Is Beautiful; LessonsFrom Highly–Innovative SmallerCountries”: Finland, Estonia, Israel,Singapore and the Basque Country.

Eskerrik askoMuchas gracias

Thank You Very Much

David Fernández Terrerosdfernandez@spri.es