The "Smart Specialisation Strategy" in the Region of Attica
2016 | Jan
The Greek economy is characterised by long-term structural problems, whose main characteristics are a gradual loss of productivity and competitiveness in the primary and secondary sector, the lack of a clear production model and the lack of export orientation. Primary and secondary sector contribution to GDP were gradually replaced by retail economic activity and a mistaken sense of financial prosperity, based on favourable financial conditions, mainly in the early 2000s.
The impact of the recent financial crisis both in Greece and in many other European countries highlights the urgent need for improvements in the business environment and the institutional framework affecting business competitiveness. In addition, there is a need to address social challenges in health and the environment, to redouble the efforts to tackle unemployment -mostly youth unemployment- and the increasing drain of the population’s most dynamic groups (General Secretariat for Research and Technology, Ministry of Education, 2015).
From 2010 onward, in spite of a deep recession, the Greek economy has been in a process of correction of the various internal and external imbalances which accumulated as a result of chronic structural problems and many failures in the implementation of fiscal adjustment programmes. The international financial crisis highlighted the chronic problems of the Greek economy and financial indicators deteriorated. The negative development of key aggregate country indicators is also reflected in the development of Regional economies.
The country generally lags behind in innovation development. It holds the 19th position in the relevant charts among 27 Member States, deviating significantly from the EU average (Innovation Union Scoreboard, 2013). However, the Greek Research and Innovation System (R&I) also presents strong performance points, such as: good performance in co-financed EU Framework Programmes, significant Greek representation in international research networks and projects of the European Roadmap for Research Infrastructures, a strong Greek research community abroad, high-quality human capital and high performance of public research institutions and the private sector as well as Greek presence in the field of scientific publications (above the EU average). These advantages, however, have not been utilised to help overcome structural weaknesses of the economy and to integrate research activity in production processes by improving the country’s overall performance compared to that of other EU countries (Ministry of Development and Competitiveness, 2014)
Research and innovation as a priority for 2014-2020
Within this context , the restructuring and strengthening of Research and Innovation is expected to become a vehicle for addressing global and national challenges and a means of increasing productivity and economic growth, by improving the traditional ways of conducting business and financial activities (General Secretariat for Research and Technology, 2015).
The European Union is firmly oriented towards economic and social development based on knowledge, human resources, research and innovation. According to the “Europe 2020” strategy (European Commission, 2010), adopted in 2010 by the EU’s 27 member states, the vision for a social economy of the market in Europe during the next decade is based on three, interrelated goals:
- Smart growth, through a knowledge- and innovation-based economy,
- Sustainable growth, promoting a competitive economy that will utilise available resources effectively and will reduce the impact on the environment (carbon dioxide, etc.),
- Inclusive growth, which will promote a high-employment economy and lead to social and territorial cohesion.
Within the framework of the “Europe 2020” strategy, the European Commission adopted a flagship initiative to create an ‘Innovation Union’ (European Commission, 2011), to strengthen Europe’s capacity to achieve smart, sustainable and inclusive growth while bridging the gap between science and the market, so that research results may be converted into new products and services. This initiative led to the birth of the concept of Smart Specialisation in research and RIS3 innovation (European Commission, 2015), allowing countries and each Region to independently focus on supporting specific categories of investments that will provide competitive advantages to their economy.
This place-based approach takes into account the specificities of different geographical regions, based on their characteristics, their potential and the route to be followed for economic development. In the context of Smart Specialisation, the Strategy for Research and Innovation links research and innovation with economic development in new ways, such as “business discovery” [2]»and prioritising, following close cooperation with country authorities. It aims to reorganise traditional sectors by switching to high added-value activities, new markets or value chains [3]. Additionally, it aims to modernise existing businesses through the adoption and diffusion of new technologies, to diversify them through technology and to develop new economic activities through innovation, as well as to explore new forms of innovation, such as open and user-friendly innovation, social innovation and service innovation.
The “Smart Specialisation Strategy” was introduced in the EU Cohesion Policy (European Commission, 2011) as a basic requirement, meaning an “ex ante conditionality” (European Commission, 2014). If this requirement is met, Member States will obtain financial support for investment in research and innovation through the European Structural and Investment Funds (GRNET) under Regulation (EU) No. 1303/2013 and in particular the European Regional Development Fund (ERDF) under Regulation (EU) No. 1301/2013. In order to achieve a competitive advantage Countries and Regions are asked to set priorities and to formulate national and regional research and innovation strategies. . An important element in the choice of activities is the presence or creation of a critical mass (or dynamics) in businesses and knowledge-generating bodies.
Brief economic profile of the Region of Attica
Attica is the largest Region of Greece, concentrating more than a third of the population and accounting for over 40% of the country’s GDP. Attica is also the most important hub for Research, Technological Development and Innovation (RTDI) in Greece, accounting for over 60% of GERD (gross domestic expenditure on research and technology).
Up until 2008, the Region of Attica presented satisfactory growth per capita (p.c.), as did the country on average. As evidenced in Figure 1, when the first effects of the global economic crisis appeared in Greece in 2008, there was a decrease of per capita GDP (PPS) in the Region of Attica, at an average annual growth rate of -3.9%, less than the country’s rate (-4.7%). This is directly connected with the metropolitan character of the Region. During the same period, per capita GDP (PPS) increased at an EU level at an average annual rate of 0.3%.
The region is definitely a focal point for services. Significant sectors, other than commerce, are financial services, transport, information technologies, health and social services, as well as leisure and recreation. The manufacturing sector is dominated by low/medium technology intensity sectors such as the food industry, metal products, chemicals – pharmaceuticals, textiles and shipyards, where productivity growth is mainly based on the acquisition of new technology and the substitution of manual labour. At the same time, dynamic and growing industries such as ICT, microelectronics and relevant applications seem to be integrated in international value chains.
The sharp decline in private investment after 2008, due to the crisis, has reduced the already low levels of private research and innovation expenditure within the Region. Reduced liquidity in the private sector, combined with the limited funding provided by the banking sector to private investment, especially to new businesses, significantly reduced resources available to support innovative enterprises.
Figure 1: Development of per capita GDP (PPS)
Source: Eurostat
In terms of regional governance, innovation and RTDI activities were not (at least until the programming period 2007-2013) a separate priority area. They were part of the overall strategy implemented by the General Secretariat for Research and Technology. In the programming period 2014-2020, and on the basis of the new architecture of the National Partnership Agreement 2014-2020, emphasis was placed on illustrating specific regional needs and advantages of the research system in Attica, on establishing a regional mechanism and on targeted financing actions and projects, mainly through the implementation of the Smart Specialisation Strategy.
The vision and strategy for the Region of Attica
Attica is the country’s dominant economic and political centre and a node for research infrastructure. It is the seat of dozens of institutes, nine higher educational institutions (seven universities and two Technological Education Institutes) and multiple innovative business activities. The majority of Greece’s research activities, in both the public and private sectors, is concentrated there.
Strengthening the capabilities and developing structures between local authorities, educational and research centres and private small and medium-sized enterprises can turn Attica into a leading metropolitan centre for research and innovation production and export, of significance to the wider region of the Eastern Mediterranean.
At the same time, the stable democratic political environment, combined with its geographical position as a gateway from Asia to the EU, makes Attica a focal point for the exchange of ideas and actions.
Its significant and scientifically and technically competent human resources can be a driving force in this endeavour. Another basic component is the effective collective organisation and democratic participation in support of welfare, security, modern working and business conditions and environmental protection of Attica.
The purpose of the Regional Strategy for Smart Specialisation (RSSS) for Attica is to contribute in shaping an ambitious and realistic roadmap that serves the vision and values described above.
A key aim of the RSSS is to restructure the productive fabric of Attica in the following ways:
- Industrial Reconstruction through the technological boost of enterprises and innovation development (development of new businesses, new products, technological development of existing businesses and products, development of research infrastructure, reinforcement of human resources for research, etc.).
- Planning based on existing and new production models, the criterion being the potential to develop competitive advantages and interconnections.
- Strengthening innovation activity for existing and new businesses, with emphasis on product innovation, the development of new products (and services) and complex technological products-systems (complex product-systems – CoPS).
- Reinforcing the assimilative capacity of enterprises to exploit technological advances and research results.
- Addressing social needs and the aggravation of problems caused by the humanitarian crisis (health, housing, nutrition, education, energy, labour, environment, culture, transport, etc.) for the development and implementation of innovative solutions and applications .
- Developing spatial investments in the urban space and upgrading sustainable social and environmental infrastructure in Attica (urban transport, energy saving, fighting urban pollution, upgrading social infrastructure and services, integrating ICT in urban functions in the service of citizens, waste and urban waste management etc.).
The RSSS aims to enhance innovation activity in three areas of expertise for Attica (Figure 2):
- Creative economy
- Blue economy
- Need-based Sustainable Economy
Figure 2: Fields of Smart Specialisation in Attica
Attica faces significant challenges in these three fields, but equally has the potential to enhance existing and to establish new activities in order to become a metropolitan centre of international scope.
The term “Creative Economy” refers to the socio-economic perspective of creativity and knowledge-intensive activities. At the core of the Creative Economy lie the Cultural and Creative Industries, which include arts, culture, business and technology. Their common element is that they transform creativity into value for productive use.
The sectors included in the Creative Economy are those of culture (theatres, arts, cultural heritage, archaeological sites, cultural centres, etc.), crafts (traditional and contemporary ceramics, jewellery, etc.), software and ICT applications in the fields of entertainment, learning, culture etc. (e.g. software application development and gaming technologies, creating services and content – mobile apps, e-learning, etc.), film production, video and cross-media digital content and broadcasting. In addition, creativity and culture refer to diverse activities from gastronomy, clothing and footwear to industrial design. Finally, the tourism and recreation industry belong to the broader field of design and production-provision of various forms of personal experiences such as leisure tourism, gastronomy and wine, culture, religion, sports, environmental tourism etc.
Attica has a strong reputation and a long tradition in the creative economy. Current activity in fields such as the arts (theatre, cinema, music, etc.), crafts (traditional and new ceramics, jewellery, etc.), education, tourism, creative manufacturing industries (such as clothing and furniture), could develop significant dynamics. Combined with information technology, communications and multimedia they will allow for a renewal and extension of the relevant economic and social activity with significant benefits both for the economy and for society.
The “Blue Economy” includes activities related to the aquatic environment, mainly shipping, fisheries, coastal tourism, management of the aquatic environment and related activities. It also includes the production of energy from renewable energy sources, such as wave energy, special tourism (e.g. wreck diving tourism), shipping museums, shipbuilding, protection of the marine environment, recording/exploring the marine world. It is also related to scientific and technological developments in (marine) biology-biochemistry-biotechnology, new materials, ICT, space technology, new forms of tourism, marine/underwater archaeology and history.
The “Blue Economy” is the subject of a long-term strategy to support the sustainable development of the EU’s marine and maritime sector. This strategy recognises that the seas and oceans are the driving force of the European economy, with great potential for innovation and growth.
Attica is already an international centre in the field of shipping and maritime tourism, while there already exists a critical mass of infrastructure and high activity in shipbuilding, in particular lifeboats and small and medium-sized vessels. At the same time, it faces serious challenges insofar as the management and protection of the aquatic environment and energy are concerned. However, the significant productive and technological capacity of the region can support efforts to address those challenges.
All the above are meaningful only when they serve the ultimate target of a “Need-based Sustainable Development”. This concept refers to improvements in the quality of every aspect of daily life. The challenges related to quality of life include an extremely wide activity spectrum: health, education, nutrition, energy, recreation and tourism, environmental protection and management, urban function, transport and spatial interventions, public services and the proper operation of the state. The main opportunities to pursue such business activities focus on addressing acute social and environmental challenges, with a view to developing solutions and technological capacities of international scope.
This sector includes activities dealing with the improvement of the quality of life of the residents in the Attica region. The strategy on this sector aims at making the region of Attica sustainable through the development and implementation of “smart city” and “smart neighbourhood” technologies, the management of solid and liquid waste, energy saving and renewable energy production, utilizing the agricultural-industrial sector and the active nutrition policy. The healthcare industry and the drug industry, which are strongly represented in Attica, should also be included here.
[1] This text is based on the study for the development of the Strategy of Smart Specialization in Attica (2015), carried out by the Special Service for the Management of the Operational Programme of the Attica Region. It is a summary of key structural and developmental characteristics of the region that have an impact on research and innovation, as well as the strategy and specialization fields that were produced from the consultation on the formulation of relevant developmental priorities.
[2] Smart specialisation is a business discovery process, which seeks to identify the areas in which a region or country has comparatively more expertise and better performance, in terms of research, development and innovation.
[3] The “Value Chain” technique (Porter, 1985) examines the inner workings of an organisation and the degree of synergy that develops between them. The value chain helps to identify the contribution of individual activities in the total value created for customers. It is a method for evaluating various strengths and weaknesses presented in a number of interconnected functions, each of which creates value/margin for the customer.
Entry citation
Pavleas, S. (2016) The “Smart Specialisation Strategy” in the Region of Attica, in Maloutas T., Spyrellis S. (eds) Athens Social Atlas. Digital compendium of texts and visual material. URL: https://www.athenssocialatlas.gr/en/article/smart-specialisation/ , DOI: 10.17902/20971.60
Atlas citation
Maloutas T., Spyrellis S. (eds) (2015) Athens Social Atlas. Digital compendium of texts and visual material. URL: https://www.athenssocialatlas.gr/en/ , DOI: 10.17902/20971.9
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