Baltic 21 Input to Chapter 3 Strategic Projects of the second draft of the bsr interreg programme 2007-2013



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ANNEX 3



Strategic Project 3: Innovation for Sustainable Development


Strategic Partners
Interested Partners: Baltic 21 Industry Sector, Ministries of Environment, Economics and/or Industry of a majority of BSR countries (e.g. German Ministry for the Environment, Swedish ministry of Industry The Baltic 21 Institute for Sustainable Industry, the Baltic 21 Institute for Sustainable Industry (National Coordinators) as well as other additional partners to be brought in at later stage.



Strategic Focus
Key Background Policy: EU Environmental Technology Action Plan

Complementary Funding: EU 7th Research Framework, LIFE, Cordis, etc.

Core Outcome: Triple Helix Support Structures and Activities

Baltic 21 Sectors/Members: Industry, Energy, Agriculture, Forestry

Interreg Priority Features: Diffusion of Innovation; Competitive Cities and Rural Areas; Innovative Solutions to Baltic Sea and Transport Issues



Project Background
EU Policy Framework

The main objective of the EU Lisbon Strategy 2000 is to develop the European Union by the year 2010 into the most competitive and dynamic knowledge based business region of the world, which was complemented during the EU Summit in Gothenburg 2001 with the EU Strategy for sustainable development. The strategic importance of investments into research and development to achieve these targets was stressed in Barcelona 2002 with the significant role of environmental technologies in that by their creation of positive synergies between environmental protection and economic growth being noted in October 2003.


The “Environmental Technologies Action Plan” published by the Commission early 2004 aims to support such technologies, which are characterised by innovation, growth and sustainable development. Environmental technologies are hereby defined as technologies and processes, which lead to direct reduction of environmental pollution or resource-saving and environmental friendly products and services as well as instruments of more efficient resource management.
Essentially the 28 measures of ETAP can be grouped under the following three headings:

  1. getting research to markets by promoting testing networks, technology platforms and R&D demonstration projects

  2. improvement of market conditions by setting performance targets, mobilisation of financing and reduction of harmful state aids

  3. global initiatives by supporting responsible investments and technology transfer

The ETAP platform as such aims towards establishing indicators and showing best practice cases.
Institutional Context

Especially in W-BSR countries the innovation sector is characterised by a large number of actors, programmes and funding mechanisms both on EU as well as national level; each of them targeting different elements of the “innovation value chain”. This can for instance be seen from the following Swedish example:





The fragmentation of actors and sheer number of players and programmes creates a problem of up-take especially by small and medium sized enterprises, which are, however, a key source especially in innovation for sustainable development. Little support is offered to pro-active promotion of communication between the various stakeholders – especially also on regional and sectoral level. There is also still a substantial lack of know-how among most of these actors in the specific area of assessing “innovations for sustainable development”.


Specific BSR context

The Baltic 21 Institute for Sustainable Industry was established by the members of the Baltic 21 Industry Sector in order to catalyse the work for sustainable development in the industrial sector. It is a network of research institutes, universities, environmental engineering businesses, manufacturing business and governmental bodies. The overall network is coordinated by the Swedish Environmental Research Institute (IVL). The work in each BSR country is coordinated by National Coordinators which have been nominated by the respective Ministries of Economy.


The main aim of the Baltic 21 Institute is to extend and improve the co-operation on research and development, knowledge and technology transfer throughout the BSR. To that end it initiates and develops joint projects, carries out training and education programmes and constantly aims towards strengthening the network as such. Based on its current funding structure, the work has so far mainly focused on Swedish-E BSR technology and best practice diffusion. The ultimate objective is, however, to create a strong BSR wide network including organisations and activities in all BSR countries.
Whereas the Baltic 21 Institute provides an ideal institutional platform on which to build on an “Innovation for Sustainable Development” initiative, it is currently hampered in its further development by a lack of permanent and BSR wide funding, which would allow the creation of and related capacity building measures as well as operational funds for “triple helix” national coordination bodies which pool the know-how necessary for SMEs to follow the whole innovation value chain as shown again in the following Swedish example:



Main Project Objective
It can be concluded that – while there is certainly a sufficient number of players and actors in all BSR countries dealing with innovation – there is currently a lack of capacities in all BSR countries (esp. E-BSR), which pool the necessary know-how to follow the whole innovation value chain and create the linkage to SMEs and / or regional clusters. While this might be true for any kind of innovation, this is especially crucial for innovations for sustainable development as this requires the additional know-how on how to assess their impact and re-financing potential
Thus the overall objective of this strategic project is to create the suitable support framework in all BSR countries for SMEs and regions to realise their innovation potential for sustainable development.
This shall be achieved by providing the strategic project partners (BSR Ministries of Economies and their National Coordinators) with the financial and know-how resources to create the suitable structures within the Baltic 21 Institute framework, extend its membership esp. among private players and realising a set of concrete activities via those structures. It should be noted that the project does NOT foresee to build up new institutions, but merely the creation of new working structures and capacities on the basis of existing bodies.



Main Project Activity Lines
Capacity building of “Innovation Supporters”

Organisation of regular BSR wide workshops for exchange of experience and capacity building among the BSR National Coordinators on such topics like:



  • Assessment of current national and regional support frameworks for “innovations on sustainable development;”

  • Creation of appropriate working structures among various support bodies;

  • How to organise regional or sectoral cluster initiatives;

  • Identification of “high potential” sectors within various regions;

  • Promotion and application of suitable sustainable development tools and concepts;

  • Organising technology transfer: Making use of various databases on identifying suitable innovations;

Organisation of national capacity building initiatives for selected members of local/regional structures



  • Diffusion of know-how gathered in BSR wide workshops

  • Creation of national networks


Organisation of Regional Activities

  • Identification of those areas, which offer the greatest potential for environmental technologies in selected regions (i.e. either based on “demand” due to most prominent problem areas in a) biodiversity b) natural resources c) climate d) health – or based on funding opportunities i.e. due to infrastructure programs, joint implementation projects – or based on “supply” by given regional companies and R&D facilities)

  • Organisation of regional workshops introducing suitable SD tools and concepts to interested companies

  • Organisation of targeted company visits by know-how pooling “expert teams”

  • Organisation of “cluster events” bringing together multiple sets of stakeholders in one given sector (i.e. agriculture, construction, energy, industrial processes, resources management, transport)


Network Building

  • Promotion of Baltic 21 Institute membership esp. among business associations, private companies, regional structure both on national and international level

  • Organisation of national and transnational networking activities

  • Further development of the virtual internet platform


Transnational clustering / technology transfer

  • Identification of “innovation/capacity gaps” within selected regions via above mentioned activities

  • Creation and operation of network platform via national coordinators to search for appropriate “offers”

  • Organisation of targeted transnational networking activities

  • Identification of appropriate transnational funding mechanisms


Recommendations

  • Continuous contributions to relevant EU policy and programmes as well as national programmes




Linkage to Interreg Priorities
Priority 1: Innovations

The project is fully in line with the thematic guidelines spelled out in the current draft of the BSR Interreg Programme for projects to be funded under Priority 1: Innovations. The given strategic project is designed as to support the performance of innovation sources esp in E-BSR countries; facilitates transnational transfer of technology and especially dissemination of knowledge and strengthens policy co-ordination. Even though the background note has focused on ETAP, the project is by no means meant to focus on technology as such, but understands “innovations for sustainable development” in a broad sense (namely: project, process, market, organisational, relation and logistic innovations). The main focus of activities does not lie in BSR network workshops of the support structures as such, but on concrete sets of activities “on the ground” (i.e. regional level / SME level). Thus a strong linkage is created to regional development activities and the related structures – while at the same time leading to best practice examples on regional communication and attracting people from various professions.

It should be noted that the system created by IVL and its Baltic 21 Institute has already attracted substantial interest by other countries / regions outside the BSR (i.e. Ukraine / South-East Asia), who want to join the network. Even though this might go beyond the scope of this strategic project in itself, opportunities to create such linkages will constantly be sought and assessed.
Priority 4: Competitive Regions

Even though the project is strongly tied to priority 1, its activities are at the same time targeted towards the promotion of attractive and competitive cities and regions. As has been mentioned above focus will be placed on realisation of regional activities for promoting innovations for sustainable development linking the identification of suitable sectors to regional development programmes (i.e infrastructure development programmes) and making use of the related regional support structures. With its capacity raising activities on national level, the project will enhance the capacities within regional structures in to support “innovations for sustainable development” by offering them the appropriate advice, facilitation of cluster creation and adapted procurement policies. Last but not least the project might lead to a marketing strategy for the BSR as such highlighting either its “Innovation Potential of the BSR in sustainable development” in general terms or in specific areas thereof.


Priority 3: Baltic Sea

The Baltic Sea as such provides of course for an enormous market in which innovations for sustainable development may be demanded and applied (water, mariculture, natural resource exploitation, sea transport, etc.). Over the course of the project it might be assessed to what extend either regional, national or esp. transnational cluster activities can and should be created around this “market”.


Priority 2: Accessibility

In a similar fashion than the linkage to the Baltic Sea, the project is of course also linked to many topics related to accessibility in view of related innovations in this area esp. application of new ICT solutions, creation of regional clusters and diffusion of innovations around transport themes).





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