Regional Development and Governance Symposium

Innovation Enhancement in Slovenian Regions

Tadeja Colnar Leskovek
Anteja ECG
Izmir, 26 October 2007

What does it take for region to become innovative?

Infrastructure conductive to Innovation
Conditions for Innovation Fostering

Education system Competition

Protection of intelectual and industrial property

INNOVATIVE REGIONS vision strategy action

DIVERSITY SHARING role models

INNOVATION CONCEPTS
NEW INTERACTIONS

divergent

CONSENSUS BUILDING LEADERSHIP

convergent

Administrative simplification

Taxation

Legal and regulatory environment

Cluster program for innovation enhancement

Slovenia is amongst the front runners of cluster development in Europe In Slovenia for instance, clusters are an integrated tool of investment and innovation policy, started in 1999.

Its overall success and its significant experience make Slovenia the prime candidate from which to learn about the success drivers of cluster initiatives.

The most prominent example is Slovenia, a country that has received much attention for its cluster program and the role clusters played in the impressive performance of the Slovenian economy.

Cluster program was part of proactive industrial policy

Improving enterprises competitive capacity (4 measures) Investment in technological development Internationalization of SME

Increasing productivity

Networking and cluster development

Innovative environment

 starting with mapping

which indicated:
Linking and networking was relatively weak.

Geographical (regional) dimension was not clear dispersed throughout Slovenia.

Infrastructure which could support cluster development was only emerging. Existing co-operations and flows could represent a basis for at least nine potential clusters. Which cluster is strategic for Slovenia? How to develop clusters?

... followed by measures to respond to identified needs.

From supporting strategic clusters to a set of horizontal policy measures
Measures aiming at Promoting cooperation and networking between companies and between companies and R&D institutions Developing clusters in practice Pilot Projects

Objectives: To gain experiences and develop knowledge To strengthen linkages along supply chains To strengthen linkages between R&D and business To promote cluster concept

Results achieved from 2001 to 2004 were encouraging

17 clusters - networking of more than 300 enterprises (57.000 employees) and 40 support institutions, 4 technological networks - networking of 43 enterprises (30.000 employees) and 15 support institutions, 29 technology centers - co-operating of 240 enterprises, 53 enterprises (22.700 employees) introducing the system for continuous improvement in production, processes and technology.

Key success factors Clear roles and competencies

Ministry of Economy acted as catalyst of the clustering process

Providing co-financing of startup costs (40%) of cluster initiatives (management, projects) Analysis Facilitation Training International networking

Key success factors Balanced Top Down And Bottom Up Process

Bottom-up process:
Measures not replacing market mechanism. Decisions about areas (industries) of cluster development, organizational and managerial issues are domain of participating actors (firms and institutions). No Constrains, no strict Rules, no guided Strategies. Initiative and responsibility for success of business and clustering remain domain of managers, employees and individuals.

Major challenge in implementing cluster policy

how to create trusting environment Public policy cannot be developed in the absence of strong public private partnership, which in return, can not be developed without the culture of trust. Trust is needed between partners, between employers and employees between boards and shareholders, and between state and citizens.