Regional Innovation Monitor Plus 2016...Regional Innovation Monitor Plus 2016 i Table of Contents...

www.technopolis-group.com

30 May 2016

Regional Innovation Monitor Plus 2016 Regional Innovation Report Catalonia (Photonics, laser and 3-D printing)

To the European Commission

Internal Market, Industry, Entrepreneurship and SMEs Directorate-General

Directorate F – Innovation and Advanced Manufacturing

Regional Innovation Monitor Plus 2016

Regional Innovation Report Catalonia (Photonics, laser and 3-D printing)

technopolis |group| in cooperation with

Felipe López, ZABALA Innovation Consulting S.A.

Regional Innovation Monitor Plus 2016 i

Table of Contents Executive Summary 2!1. Advanced Manufacturing: Photonics, laser and 3-D printing 5!

1.1 Overview of performance and trends 5!1.2 Business sector perspective 6!1.3 Scientific research potential 9!1.4 Role of intermediary institutions 10!1.5 Developing skills for the future 11!1.6 Major investment projects 11!1.7 International cooperation 13!1.8 Policy support and delivery mechanisms 15!1.9 Good practice case 17!1.10 Leveraging the existing potential 19!

2. Regional Innovation Performance Trends, Governance and Instruments 23!2.1 Recent trends in innovation performance and identified challenges 23!2.2 Institutional framework and set-up 25!2.3 Regional innovation policy mix 27!2.4 Appraisal of regional innovation policies 33!2.5 Policy good practice 34!2.6 Possible future orientations and opportunities 36!

Appendix A Bibliography 37!Appendix B Stakeholders consulted 38!

Table of Figures Figure 1Framework of the Catalan Industry Policy ........................................................ 15!Figure 2 Management and implementation structure of regional innovation strategy 25!

List of Tables Table 1 Regional innovation support measures ............................................................. 29!

Regional Innovation Monitor Plus 2016 1

PREFACE In the context of the growth and investment package set out in the Investment Plan of the European Commission, the Regional Innovation Monitor Plus (RIM Plus) provides a unique platform for sharing knowledge and know-how on major innovation and industrial policy trends in in some 200 regions across EU20 Member States.

Launched in 2010, the Regional Innovation Monitor aimed at supporting sharing of intelligence on innovation policies across EU regions. Building upon the experience gained and results obtained during the period 2010-2012, the RIM Plus 2013-2014 provided practical guidance to regions on how to use the collected information, via a network of regional experts. Since 2014, the RIM Plus has introduced a thematic focus on Advanced Manufacturing.

The RIM Plus 2015-2016 evolved from a general monitoring of innovation policies towards establishing a more thematic focus in selected areas in order to contribute to improving the competitiveness of European regions.

Particularly, the RIM Plus aims through its activities and in close cooperation with the regional stakeholders and other relevant initiatives to:

•! Contribute to the development of new and open spaces of collaboration and exchange on Advanced Manufacturing, each with a clearly defined thematic focus.

•! Play an enabling role in providing evidence-based information on specific themes and bring in outside perspective from other regions.

•! Map out regional practices in support of Advanced Manufacturing and relevant pilot/demo projects and work towards involving the relevant stakeholders.

•! Provide an easy access and comparative overview of regional innovation policies and relevant actions in the field of Advanced Manufacturing.

•! Share the lessons learned with the European Commission services to feed into the preparation of future programmes.

The main aim of 30 regional reports is to provide a description and analysis of developments in the area Advanced Manufacturing with a clearly defined thematic focus and regional innovation policy, taking into account the specific context of the region as well as general trends. All regional innovation reports are produced in a standardised way using a common methodological and conceptual framework, in order to allow for horizontal analysis, with a view to preparing the Final EU Regional Innovation Monitor Plus report.

European Commission official responsible for the project is Alberto Licciardello ([email protected]).

The present report was prepared by Felipe López ([email protected]). The contents and views expressed in this report do not necessarily reflect the opinions or policies of the Regions, Member States or the European Commission.

Copyright of the document belongs to the European Commission. Neither the European Commission, nor any person acting on its behalf, may be held responsible for the use to which information contained in this document may be put, or for any errors which, despite careful preparation and checking, may appear.

Further information:

https://ec.europa.eu/growth/tools-databases/regional-innovation-monitor

2 Regional Innovation Monitor Plus 2016

Executive Summary 1. Advanced Manufacturing: Photonics, laser and 3-D printing

Catalan industry has been known for its high level of adaptation to new technologies and customer demands. The ‘integrated manufacturing and service sector production’ contributes more than two thirds of the total gross value added (GVA, 68% in 2011), being the backbone sector of the Catalan economy. Also, according to data from the Financial Times’ investment monitor, during the period from 2010 to mid-2015, Catalonia was the region that attracted most investment across Western Continental Europe, both in terms of job creation and financial investment (66 international R&D projects totalling €1,073 million in foreign investment and creating 5,985 direct jobs in the territory).

On the other hand, the Strategy for the Smart Specialisation of Catalonia (RIS3CAT) for the coming years focuses on six crosscutting ‘enabling technologies’, Advanced Manufacturing (AM) technologies being one of them. Catalonia is considered one of the major players internationally in the areas of photonics, lasers and 3-D printing. In fact, Catalan companies are mainly linked on customised markets in the field of ‘components and systems’ and ‘engineering and software developments’, and could be characterised as ‘smart followers’ and ‘endogenous innovative’. Moreover, the Vanguard Initiative for New Growth through Smart Specialisation is an initiative for boosting new growth through bottom-up entrepreneurial innovation and industrial renewal in European priority areas such as Advanced Manufacturing. In fact, two pilot initiatives are being carried out in the fields of ‘Efficient and sustainable manufacturing’ (led by Catalonia together with Lombardy) and ‘High-performance production with 3-D Printing’ (Catalonia as a participating region).

Currently, there is no agreement on whether future developments in additive manufacturing will be more or less expansive, whether they represent an evolution or a revolution, or what impact they will have and how to assess it, but what is clear is that it is a technology that will increasingly find more applications in the industrial field and continually create new business models. In this sense, the photonics industry in Catalonia, although still at an early stage, has experienced rapid growth in the past five years. Several industrial sectors related to photonics are growing in Catalonia, especially those related to energy efficiency and health. The Government of Catalonia has some international agreements with regions and countries such as Germany, Korea, Boston (USA) or Chile.

The role of scientific institutions is key in the Catalan innovation system. This factor has resulted in the creation of a large centre, EURECAT. However, there is no structured plan to solve the specific needs of Advanced Manufacturing, although, under the guidance of RIS3CAT, the basis has been established to address this issue, from which specific actions and instruments for the sector, such as ‘Comunitats’, will emerge in the coming years. RIS3CAT strategy is focused on six crosscutting enabling technologies of which Advanced Manufacturing technologies are one.

There are several pilots and demonstrations projects in which companies in Catalonia and scientific research institutions are working on the disciplines of Advanced Manufacturing (photonics, laser and 3-D printing). Moreover, Catalonia is involved in others initiatives, such as Bio-photonicsPlus, OLAE +, MANUNET and with the German Federal Ministry of Economics and Energy (BMWi).


•! Challenge 1: Value chains for manufacturing are increasingly more global

Value chains in manufacturing are undergoing a process of fragmentation that is global in nature, so integrating Advanced Manufacturing in global value chains will be a challenge in the present decade.

•! Challenge 2: Society and regulations are increasingly sensitive with regard to sustainability

Not only must Advanced Manufacturing insert environmental sustainability criteria and respect the economic and social environment in order to succeed, but it must also take into account increasingly appreciated aspects, such as quality, stability and safety of workers.

•! Challenge 3: Accelerated life cycles of industrial systems

Technological change is getting faster and the products are becoming more complex, because there is a sustained increase in investment in R&D in certain key technologies such as photonics and additive manufacturing.

2. Regional Innovation Performance Trends, Governance and Instruments

Catalonia has traditionally been one of the most dynamic, industrial and innovative areas in Spain. With a gross domestic product (GDP) of €197 billion in 2013, the Catalan economy is the biggest of all the autonomous communities of Spain. With regard to GDP per capita, Catalonia places in fourth position – after the Community of Basque Country, Madrid and Navarre – with €26,500 in 2013, superior to the Spanish average of €22,500, and in line with the EU28 average of €26,600.

During this period, approximately two thirds of R&D expenditure was by the private sector and one third by the public sector. This is in line with the recommendations of the European Union, which states that to become a leading knowledge-based economy, the distribution of effort in R&D should be two thirds by the private sector and the rest by the public administration sector.

Since 2013 Catalonia revised the current Research and Innovation Plan and the future plan for 2014-2020 to comply with the guidelines set out in the RIS3 strategy. The total investment allocated for four years amounts to €5,308 million, of which nearly 85% (€4,497 million) is allocated to R&D (science scope), and the rest (€811 million) for innovation (industrial scope). The main strength of the Catalan policy is a continued political and economic commitment, independently of which political party is in the Government at the time.

3. Future Actions and Opportunities

With regard to photonics, laser and 3-D printing

•! To achieve higher levels of internationalisation

Although the industrial systems sector of Advanced Manufacturing is highly internationalised, some companies that export over 80% of their production would need to take another step and move from export to market development by taking advantage of the new technologies. Regarding the investment of resources for the leap into internationalisation requires specific lines of financing aimed for this purpose, as


well as cooperation mechanisms or participation in consortiums providing access to new markets, both in the phase of analysis and in execution.

•! To strengthen the management of companies in order to increase their size, improve their commercial capacities and to strengthen them by providing suitable training

To increase the size of businesses, and to build large local companies which are able to realise big projects and disruptive innovations in the field of Advanced Manufacturing, is necessary in order to advance the rest of the sector. In all sectors it is important to know the needs of the buyer, but in industrial systems related to Advanced Manufacturing even more so, since the technology provider must solve the problems and challenges related to client requests.

•! To incorporate technology and innovation as a key factor of competitiveness and strategy.

Finally, to integrate Key Enabling Technologies (KET) such as photonics, the company strategy must promote technology as part of business strategies, in order to facilitate disruptive changes, while at the same time, promoting open innovation (with collaboration between different actors) and participation in European research projects.

With regard to innovation policy

Catalonia has been a region with a strong and active innovation system for almost two decades. Taking into account the policies of the European Union and the budgetary constraints coming from the Government of Spain, this new situation requires greater efficiency in the use of resources and greater emphasis on performance.

Nevertheless, in order for Catalonia to become one of the more dynamic and innovative regions, not only in Europe but also in the world, several strategic priorities have been established:

•! Promotion of entrepreneurship, especially by providing financial support in enterprise growth

•! Increased private investment through public funds

•! Provision of direct public assistance for companies that develop R&D and innovation projects

•! Promotion of participation of Catalan companies in national and European programs to support R&D and innovation projects

•! Catalan, Spanish and European funding for projects promoting business R&D outsourcing from agents that generate research technology (market pull and technology push)

•! Improvements in the identification of new technologies and technology transfer

•! Encouragement for high-technology clusters to compete in an international environment.


1.!Advanced Manufacturing: Photonics, laser and 3-D printing

1.1!Overview of performance and trends Catalan industry has been known for its high level of adaptation to new technologies and customer demands. According to the OECD 2010 report, the manufacturing sector in Catalonia represents over 20% of the total gross value added (GVA) in this region. The relative weight of sectors of medium and high technology in Catalonia significantly exceeds the Spanish average. While in Catalonia the GVA of the medium- and high-technology sectors accounted for 7.7% of GVA, for Spain, this sector represented 4.5%. The difference between Catalonia and Spain in the relative weight of knowledge-intensive sectors increases if we consider only the high-technology sectors, which represent 1.8% in Catalonia and 0.8% in Spain.

In 2009, the negative performance of the manufacturing sector, which shrank by 13.4% between 2008 and 2009, led to a fall of the GDP per capita in Catalonia of 4.2%. In fact, the manufacturing sector’s share of the total GVA has fallen steadily since 1995, moving from a 26% in 1995 to 19.2% in 2008.

Although Catalan industries are mostly part of a chain of fragmented development, and few produce final products for consumption, the region has achieved a successful combination of manufacturing capabilities and services, with a strategy based on technological research and innovation to promote industrial transformation and ensure a certain level of job creation.

The ‘integrated manufacturing and service sector production’ contributes more than two thirds of the total GVA (68% in 2011), being the backbone sector of the Catalan economy. In terms of employment, its representation is somewhat lower, at 57% in 2011. Between 1987 and 2005, this sector lost weight gradually, from 73% to 66% of GVA, but the trend reversed from 2005. In fact, between 2005 and 2011, the weight representing the ‘integrated sector’ in the economy increased slightly, going from 66% to 68%. In terms of employment, its weight has not increased but not decreased (maintaining 57% of total employment in Catalonia between 2005 and 2011).

Therefore, the balance of this sector in the period 2005-2011 is not entirely negative because the increase experienced by service sector production (which has increased from 44% to 51% of GVA) has offset the decline in manufacturing (21% in 2005 to 17% in 2011). This stable evolution in terms of employment, and positive in terms of GVA, contrasts with that recorded in the previous five years (2001-2005), during which the ‘integrated field’ lost so much weight in employment (58 % to 57%) and GVA (68% to 65%). Moreover, the weight loss of industry has traditionally been even more intense in terms of GVA. Between 2000 and 2013 (latest year available), the industry has reduced its weight in total employment in Catalonia by 10.3 percentage points, going from 25.6% it represented in the beginning of the century to 15.3 % in 2013.

In quantitative terms, the manufacturing sector is made up of more than 5,600 companies, employing more than 68,000 people and annual revenues of €10,000 million. Of this total turnover, nearly €6,000 million relates to suppliers of components and systems – of which, nearly €300 million to manufacturers of advanced materials, some €80 million to suppliers of optics and photonics, nearly €2,200 million to OEMs and €2,000 million in engineering and software developers.

Catalonia’s encouraging results confirm the positive trend and dynamism witnessed in recent years. According to data from FDI Markets, the Financial Times’ investment monitor, during the period from 2010 to mid-2015, Catalonia was the region that attracted most investment in Western Continental Europe, both in terms of job creation and financial investment. During this period, Catalonia attracted 66 international R&D projects totalling €1,073 million in foreign investment and creating 5,985 direct jobs in the territory.


Furthermore, the Vanguard Initiative for New Growth through Smart Specialisation is an initiative that is driven by a political commitment of regions to use their smart specialisation strategy for boosting new growth through bottom-up entrepreneurial innovation and industrial renewal in European priority areas. The Vanguard Initiative seeks to lead by example in developing interregional cooperation and multi-level governance for supporting clusters and regional eco-systems to focus on smart specialisations in priority areas for transforming and emerging industries. In fact, two pilot initiatives are being carried out in the fields of:

•! Efficient and sustainable manufacturing – project led by Catalonia together with Lombardy

•! High-performance production with 3-D Printing – project led by South Netherlands, Flanders and Norte, with Catalonia as participating region.

On the other hand, the Strategy for the Smart Specialisation of Catalonia (RIS3CAT) for the coming years focuses on six crosscutting ‘enabling technologies’, Advanced Manufacturing technologies being one of them. Catalonia is considered one of the major players internationally in the areas of photonics, lasers and 3-D printing. This is due to initiatives such as the SECPhO (Southern European Cluster in Photonics and Optics) which includes SMEs, R&D centres, technology transfer centres and big companies, also to the presence of institutions of international prestige as the ICFO (The Institute of Photonic Sciences) or more recently the existence in Barcelona of Fab Labs (fabrication laboratories) and the Fab Academy as global focus in Advanced Manufacturing. Besides the existence of 3-D printing associations, clusters and regional technology platforms, as well entities related to Advanced Manufacturing, such as CIM-UPC Foundation, LEITAT, EURECAT, IQS, make Catalonia a leading global region.

The main emerging trends with significant impact would be in line with the MANUFUTURE European platform, such as collaborative photonics, man-machine technology, augmented reality, artificial vision, big data for industry, zero defect manufacturing, energy efficiency in industry, surface treatment, metrology, 3-D printing and Industry 4.0.

In fact, the difference with the rest of Spain is that Catalonia has the whole value chain, e.g. the entire ecosystem in sectors such as capital goods or in robotics. There is however a sector such as packaging, in which there are no solutions in Catalonia industry for the entire value chain that would enable an integrated solution for the sector.

1.2!Business sector perspective The EU has classified photonics as one of the five main enabling technologies called to play a key role in European industrial development this century. The sector in Spain currently has a turnover of €1.4 billion, while providing nearly 7,500 jobs. The Spanish sector involves more than 110 enterprises.

The Spanish industry, and mainly the Catalan photonics industry, experienced a growth rate of 18% before the international economic crisis. Even in the economic downturn, many companies continued to invest in R&D, especially small to medium-sized enterprises (SMEs). In fact, this is an excellent moment to look at Catalonia for photonics innovation and investment opportunities in the coming years, especially with its strong research capabilities and laboratories.

Furthermore, Additive Manufacturing refers to a process by which digital 3-D design data is used to build up a component in layers by depositing material. The term ‘3-D printing’ is increasingly used as a synonym for Additive Manufacturing. In this context, the share of the manufacturing industry with teams in additive manufacturing


is less than 10% in France, Germany and Spain. For 2016, estimates the weight could reach 13% in Spain. These expectations have not only attracted the interest of companies to participate in business but also of government to make this technology develop in its territory.

In this sense, Barcelona is one of the most active spots in the worldwide fab labs network. The fab labs are digital manufacturing laboratories, spaces with 3-D printers, laser cutters, circuit board printers, etc. that permit digital manufacturing using 3-D design of an object. These fabrication laboratories are based on the collaboration between users, who share their knowledge and participate in the production of their own product themselves.

The first Barcelona Fab Lab has been open since 2007 and is now one of the leading members of the network. It is also the headquarters of the Fab Academy, a global campus of local laboratories where students find colleagues and mentors. The City Council is promoting a network of fab labs called “Fab Ateneus” in order to foster entrepreneurship and job creation. Makers of Barcelona (MOB) or MADE are examples of private fab lab initiatives. In addition to the fab labs, it has research centres such as the CIM-UPC Foundation, EURECAT, LEITAT, IQS, excellent schools and relevant companies in the field of video games that can also move towards the domain of 3-D printing.

Catalan companies mainly are more linked on customised markets in the field of ‘components and systems’ and ‘engineering and software developments’ within the international value chains as TIER1 - TIER2, and to a lesser extent as OEM manufacturers. Regarding the 3-D printing sector it may be indicated that the aspirations of leadership in international markets of companies would be characterised as smart followers and endogenous innovative companies, despite having a world centre such as Hewlett-Packard based in Sant Cugat del Valles (Barcelona).

In the centre of Sant Cugat del Valles (Barcelona), Hewlett-Packard designs and develops all models of additive manufacturing machines to be produced and assembled in Asia. In 2014, they launched their first 3D printer, Multi Jet Fusion. This project will receive €21 million from the Spanish government for the generation of R&D collaboration with companies and technology centres. Note that there are numerous multinational companies that were not in the business of 3D printing and now are getting into it, given the huge expectations aroused by its current and future development.

Nowadays, the Government of Catalonia has some international agreements with regions and countries such as Germany, Korea, Boston (USA) or Chile, in order to improve the position in international value chains and to cover those existing gaps into the Catalonia sectors. In addition, a more effective collaboration at the local and international level would be a must in Advanced Manufacturing.

Also noteworthy: the Vanguard Initiative, with support from the European Union, aims to advance the development of Advanced Manufacturing in Europe based on cooperation between 21 regions. Catalonia is part of the coordinating team of the platform, which has already launched three pilot projects. One such project is led by Catalonia, together with Lombardy, with the aim of improving the efficiency of European factories. The project, which is developing the EURESCAT Technology Centre, is open to the participation of Catalan companies. And the other pilot project also has the participation of Catalonia: dealing with Catalonia 3D printing collaboration by sharing knowledge gained in recent years.

As with many other sectors, the photonics industry in Catalonia has to tackle a major challenge: the reduction in recent years of R&D funds for high-risk medium- to long-term research. This will have a detrimental effect on innovative product development and increase the time-to-market cycle. The current model in Spain, and to a lesser extent in Catalonia, forces companies to take research loans, meaning less willingness to take risks and longer innovation times. The industry has taken at least two years to


adapt to the new conditions, but, at the same time, the situation has forced companies and researchers to consider markets and end users more closely when defining research strategy.

The photonics industry in Catalonia, although still in an early stage, has experienced rapid growth in the past five years. This technology can increase the value of products or manufacturing processes; in addition, non-photonics companies are actively introducing photonic solutions in their products or processes. An indicator of photonics industry good health is the fact that EURECAT, the Technology Centre of Catalonia, income has been growing every year, keeping a positive balance between public funding and industry contracts. The next few years the photonics industry will continue growing, pushed by market demand and supported by the Catalan and Spanish research agencies. Also, the increasing offer of venture capital will improve the environment needed for the creation of spin-off companies that will market top-of-the-line research results.

Meanwhile the industry of Ultrafast Lasers is taking off in Catalonia and Spain, and there are initiatives oriented to industrial applications. In fact, there have been initiatives to show the great potential of the pico- and femtosecond lasers in emerging fields such as micro-machining (cutting, welding or ablation at microscopic scales), processing and modification of fragile materials, precision surgery, medical imaging, and manufacturing of microchips or telecommunications.

On the other hand, the worldwide additive manufacturing sector (machinery, materials and associated services) was estimated at being worth €1,900 million in 2011, Hewlett-Packard estimates that it will reach €12,000 million in 2017, based on organic growth and continuous deployment of current technology. However, if trade barriers are overcome, some technological and other sources estimate that total sales could reach €100,000 billion in 2020 in the worldwide additive manufacturing sector. There are segments that are growing at rates exceeding 30% annually.

Nevertheless, there is no agreement on predictions of whether future developments in additive manufacturing will be more or less expansive, whether it is an evolution or a revolution, much less when it comes to assessing its impact, but what is clear is that it is a technology that will also increasingly find more applications in the industrial field and continually create new business models. It is especially recommended for those industries that are related to manufacturing high-value, low-volume and/or complex geometry and/or have a high component of customisation.

The phenomenon has attracted the interest of companies and governments, as Catalonia and the European Commission, with some support policies. Meanwhile, Barcelona stands out as one of the most active focus points on additive manufacturing, with its network of fab labs. The potential for generating value in additive manufacturing seems to lie both in hardware manufacturing – which is expected to be made in bulk by foreign multinationals, such as application design, the creation of new software and the formulation of new materials and processes of consolidation – and in technology development and post-processing of surface finishes for parts manufactured using 3D printing. Catalonia has an industrial base capable of absorbing new developments and benefitting economically in sectors such as manufacturers of consumer goods, software development firms, manufacturers of materials (polymers, ceramics, metal and composites), and companies capable of designing and developing applications.

Additionally, 3D printing has a huge potential for new growth and employment in Europe. It can induce more local production in Catalonia thanks to flexibility and customisation of manufacturing and also stimulate worldwide commercialisation of creative designs. Therefore 3D printing is considered to be an important component of the new industrial revolution that will benefit welfare and employment creation in Catalonia. Many application fields for 3D printing are still only partially exploited because of bottlenecks in the emerging value chains. So, it is still too soon to evaluate its impact, but one thing is sure: it will have more and more applications and it will


develop new business models, both on a small scale and in larger fields. Printing possibilities go far beyond just normal everyday objects. 3D printing technology can be used to print food (like the FOODINI printer, created by Natural Machines, a company based in Barcelona) and light components for aeroplanes or Formula 1 racing cars.

Currently, there is no an existing map of start-ups and emerging companies, but regional authorities are working on it. Catalonia is an important research-based industrial cluster, which makes it the perfect location to welcome 3D printing-related projects. The presence of manufacturers and producers, software developers and suppliers, and app designers and developers make Catalonia a great place out of which to expand additive printing.

1.3!Scientific research potential Catalonia is one of the top regions in Spain for research potential; among the region’s main strengths are its strong research infrastructure and regional attractiveness. Several major scientific installations in the region are associated with universities, such as the Barcelona Supercomputing Centre (Polytechnic University of Catalonia, UPC), the Synchrotron Light Laboratory, CELLS (Autonomous University of Barcelona, UAB), the Centre of Supercomputing of Catalonia, CESCA (all public universities), the Maritime Research and Experimentation Channel (UPC). Several other installations under construction in biological fields and engineering are associated with universities. This strong presence of scientific infrastructure also helps attract top international researchers.

The governance of the regional innovation system in Catalonia is complex. This complexity is due in part to the proliferation of research entities, networks and science parks over the last several years. Catalonia has 25 science and technology parks, 17 led by universities. The regional government has recently taken measures to better manage this complexity through mergers and new coordination structures. These measures should be continued and strengthened.

Catalonia’s R&DI system is basically made up of universities, research centres, science and technology parks, technology centres and private agents (enterprises’ R&DI departments, innovative companies, etc.) In 2013, there were more than 25,000 researchers in Catalonia and around 45,000 R&D personnel (about 1.1% of the labour force).

Catalonia has an extensive network of private and public research institutions. Some fields of scientific knowledge and research – particularly biomedical and electronics – have a long tradition. They continue yielding excellent fruit and are now accompanied by such fields as genomics, microelectronics, nanotechnology, photonics, material sciences and telecommunications. Catalonia also hosts three large research infrastructures, of which the ALBA synchrotron has been the latest to join the system, in 2010.

The role of scientific institutions is key in the Catalan innovation system. This factor has resulted in the creation of a large centre at EURECAT. In this sense, EURECAT is the main technology centre in Catalonia, born out of the integration of ASCAMM, Barcelona Media, Barcelona Digital, CETEMMSA and CTM.

EURECAT is a specialist in technologies and Advanced Manufacturing processes and has developed advanced and clean fabrication technologies and production processes that enable manufacturers to improve their productivity (production speed, precision in operating and material and energy consumption) and the management of waste and pollution, under a life-cycle perspective.

As a result of its specialisation and experience, EURECAT received the support of the ACCIÓ agency (Government of Catalonia) as a coordinating institution of the RIS3CAT Community for Advanced Manufacturing, in the area of industrial systems. At the same time, the network of technology centres grouped under the umbrella of


TECNIO brand is evolving as a technology and service provider to Catalan companies. In addition, an important role achieved by these centres has been to appear as a “push” to companies in order to promote their participation in the European Framework Programmes, and even to solve industrial companies’ needs that cannot be achieved with the current technologies.

Several industrial sectors related to photonics are growing in Catalonia, especially those related to energy efficiency and health. The ICFO (Institute of Photonic Sciences), based in Castelldefels (Barcelona), arranges collaborations and partnerships with Catalan companies and related photonics customers. In fact, the existence of institutions well known in the photonic area provides this sector with a specific competitive advantage in Catalonia. On the other hand, Catalonia and Spain have been internationally recognised for higher education programmes in photonics, which attract talented students from around the world.

Biotechnology is one area in which the government and industries in the Barcelona metropolitan area are focusing resources and initiatives. Clean technology is another area that has great potential in Catalonia, as is reflected by current investments.

As surely it is the case in many other regions, the photonics industry in Catalonia has realised that R&D must be more market-oriented than ever. Given the current global economic conditions and the national funding cutbacks, companies will have to work together to fund innovative research and engage labs and research centres in an effort to align strategy such that projects will result in value-added photonics-based technology, in shorter time – reducing the gap between research and market.

1.4!Role of intermediary institutions One of the roles of intermediary institutions such as ACCIÓ agency (Government of Catalonia) is to promote and disseminate the technological capabilities of research centres in order to transfer them into industry. This impulse is conducted through several programmes such as EEN (Enterprise Europe Network) through a public momentum and industry leadership. In fact, these institutions and programmes are a key instrument to boost growth and jobs in the industrial sector. For instance, ACCIÓ agency (Government of Catalonia), with the support of EEN, is bringing together around 600 business support organisations from more than 60 countries, in order to help small companies, seize the unparalleled business opportunities in the EU single market. ACCIÓ agency (Government of Catalonia) has been supporting local businesses for a long time and knows better their strengths and needs.

These institutions are promoting several events. One of the most famous in Catalonia is CONNECT-EU that is managed by ACCIÓ. This event is not only giving the opportunity of dissemination and first-hand advice on the opportunities provided by calls promoted by the European Framework, but also it gives tools for the finding of partners, in order to put as many resources as possible at the disposal of companies.

Moreover, and in contrast to many other European regions or countries, the Catalan photonics market is primarily led and represented through academic institutions, as its industry is not as dense as in some of its neighbours. Nevertheless, things are changing quickly and several organisations are working hard to counteract this situation, as well as the ACCIÓ agency (Government of Catalonia).

Finally, institutions such as ACCIÓ are helping several sectors, just as with photonics companies, to work together and give them the visibility they need through international exhibitions organised by and for the industry. Equally, these institutions are helping to foster international growth and give them a voice at the European level. In addition, they are linked up through powerful databases, sharing their knowledge and sourcing technologies and business partners across all network countries. But they are also closely linked with the European Commission, which enables them to keep abreast of EU policies and to feed companies' views on them back to Brussels.


1.5!Developing skills for the future Currently, there is no structured plan to solve the specific needs of Advanced Manufacturing, but under the guidance of RIS3CAT the bases are established to address this issue, and from which specific actions and instruments for the sector, such as ‘Comunitats’, are emerging in the coming years. The RIS3CAT strategy is focused on six crosscutting enabling technologies, of which Advanced Manufacturing technologies are one. Also, according to the regulations governing the operation of Cohesion Funds policy, over the 2014-2020 period the Structural Funds will provide an essential tool for reorienting the economies on investing in education, training and vocational training for skills and lifelong learning.

Thorough the guidance of RIS3CAT, there is work on the challenge of matching the education system to the needs of the production system. Training is an essential element for enhancing innovation culture in companies. Innovation must be present in curriculums for vocational training, university degrees, and MA courses related to the production sector, so that future professionals can internalise innovation as a habitual process for improving companies’ competitiveness. Intermediate-level vocationally trained technicians play an important role in developing the business fabric and, therefore, to generate employment and economic recovery. Vocational training should be the tool used to professionalise people and help them to obtain and retain employment. To this end, the Catalan system needs to advance towards a quality, flexible, integrated vocational training model (in coordination with the jobs market) that provides training throughout people’s working lives. Company-university and company-vocational training-centre cooperation programmes enable students to develop projects with companies, promote business innovation, build channels for knowledge transfer, foster transversal skills amongst students and improve their prospects of integration into employment.

Moreover, when it comes to digital skills amongst citizens in the knowledge society, it is vital to provide citizens with the appropriate tools for their professional development. Public administrations promote actions aimed at improving citizens’ digital skills and promoting ICT use. They also promote accessibility and the development of new multi-directional channels to enable communication and information sharing.

In that sense, some relevant actions have been taken into account, giving as outcome the ‘industrial doctorate’ instrument. The essential element of the industrial doctorate plan is the industrial doctorate project, that is, a strategic research project carried out at a company that allows the doctoral student to further develop their research training in collaboration with a university, and which is the object of a doctoral thesis. The Government of Catalonia provides two types of financial support to these projects, based on certain characteristics of project implementation: industrial doctorate projects co-funded by the Government of Catalonia, and industrial doctorate projects with specific funding.

1.6!Major investment projects There are several pilot and demonstration projects in which companies in Catalonia and scientific research institutions are working on the disciplines of Advanced Manufacturing (photonics, lasers and 3D printing).

Through the SECPhO (Southern European Cluster in Photonics and Optics) companies and institutions are planning to launch several co-funded projects supported by the Spanish national programme for Innovative Business Associations. In fact, seven out of eight projects that have been approved are oriented towards the development of an innovative product and/or process in cooperation with several partners and research institutions. These are the following projects:


•! FERTISAVE: Development of a photonic sensor for real-time measurement of macronutrient concentration in soil for selective application of fertilisers

•! OXIPACK: Improving the food safety by detecting oxygen inside the packaging

•! BUBBLESENS: CO2 detection to control the pressure in the process of making sparkling wines

•! LASERTRAIN: 3D laser profilometry for railway maintenance; scanning train wheels in motion

•! OLIVESENS: Development of a system for real-time monitoring of olive oil making process

•! CHAMELEON: Advanced Technology of multichannel LED signalling in automotive industry

•! QUALICROM: Surface quality control of chrome plated parts by deflectometry in dynamic, adaptive and robotised trajectory.

The eighth project is dedicated to conducting a technical feasibility study on creation of a network of incubators for start-ups specialising in photonic technologies. Without a doubt, the investment and support of these projects is a direct recognition of the importance of light technologies in our society, and institutions such as SECPhO will put efforts on improving the competitiveness of the Spanish/Catalan photonics industry by promoting collaborative innovation creation.

The EURECAT technology centre has been involved in MADE4U project, led by the Catalan multinational Indo, whose aim is to establish new business models within the ophthalmic industry to allow the user to provide a fully customised product. This European project, which integrates technologies and disciplines of different origins, such as Advanced Manufacturing and rapid manufacturing or 3D printing, places the European industry ahead of other regions of the world.

Currently, Indo offers the progressive optical lenses custom EyeMADE through Visual Map technology to calculate the user’s visual strategy and design and lenses to fit their needs and their behaviours. In addition, new manufacturing techniques known as Rapid Manufacturing can manufacture all kinds of geometries without having to go through economies of scale. Joining the two disciplines, the system EyeMADE and Rapid Manufacturing techniques, the project aims to define the business model and develop the technology (devices, software and knowledge) required to produce glasses that can be fully customised according to taste and needs of each user.

Among the technological challenges of the project are the creation of a Europe-wide production network that integrates design and manufacturing systems, plus the lens mount, its aesthetic and protective finish, and the platform interface between the user, laboratory and the producer of each item. This network will work with the principle of total user satisfaction without compromising the integrity of the production chain. Hence the need to define a new business model.

In addition, other major projects have been carried out by companies and research institutions, such as the following:

•! DigiPRINT (Large-Area High-Resolution Digital Printing for Organic Thin-Film Transistor Fabrication)

The DigiPRINT project explored low-temperature, maskless digital fabrication of organic thin-film transistors (OTFTs) on large-area substrates. Both ‘laser-assisted’ inkjet printing and ‘laser-induced forward transfer’ (LIFT) of functional materials were investigated. The novelty in the project stemmed from the intelligent use of advanced and industrially robust ultrafast DPSS lasers combined with real-time monitoring of deposition and patterning processes by in-situ surface characterisation with non-contact optical metrology heads. Novel OTFT


materials where especially formulated to match inkjet printing and laser patterning requirements. The developed technology is R2R compatible and a laser prototype was designed integrating the optical metrology tools, laser micro-structuring, laser transfer and laser curing modules.

!In the biomedical field, 3D technology is already being used to design and produce bone implants and dental prosthesis. There have been some success stories too in the medical scenario, such as the operation to remove a tumour from a child, made possible because doctors could previously practice the extremely difficult operation on a 3D model at Sant Joan de Déu Hospital in Barcelona. Furthermore, scientists and researchers are currently experimenting with the possibility to copy human tissue, organs and cells, which could replace those from sick people. However, these applications are still in a very early phase.

Also the CIM-UPC Foundation has developed a tumour in soft material, together with bones and arteries on hard material, in order to facilitate the testing of surgery that otherwise would have been impractical.

Another collaboration project has been between ELISAVA (Barcelona School of Design and Engineering) and LEITAT technology centre, which has enabled the design and creation of a low-cost active hand prosthesis, less than €700, while current ones can cost up to €20,000, as a solution to amputations below the elbow, using 3D printing technology. Each individual prosthesis is produced in custom sizes for the patient, reproducing the exact dimensions required.

On the other hand, a start-up Catalan company (named Natural Machines) has been developing FOODINI, in order to create the first 3D food printer ready to print all types of fresh ingredients – nutritious, real, salty or sweet – although not solids. It is suitable for domestic or professional kitchens. Not only does it allow customisation of forms, but it is also helpful to keep track of a person's nutrition.

Also noteworthy: the Vanguard Initiative, with support from the European Union, aims to advance the development of Advanced Manufacturing in Europe based on cooperation between 21 regions. Catalonia is part of the coordinating team of the platform, which has already launched three pilot projects.

One such project is led by Catalonia, together with Lombardy, with the aim of improving the efficiency of European factories. The project, which is being developed by EURECAT technology centre, is open to the participation of Catalan companies. One other pilot project also has the participation of Catalonia, which is dealing with the 3D printing technology. Catalonia is collaborating by sharing the knowledge acquired over the years.

1.7!International cooperation The ‘Vanguard Initiative for New Growth through Smart Specialisation’ seeks to better the position and embed the smart specialisation agenda within relevant EU policy frameworks through the following activities:

•! Matching strategic roadmaps between regional, national and European policy levels in support of European priority areas

•! Aligning strategic investments, arising from these roadmaps, in order to open new industrial pathways via flagship projects such as demonstrators and pilots identified in the European priority areas

•! Upgrading regional partnerships and clusters with global potential, which are identified in smart specialisation strategies, to European world-class clusters that can compete globally.


Catalonia as partner of the smart specialisation Vanguard Initiative is committed to several pilot projects, such as the following:

•! Efficient and Sustainable Manufacturing (ESM): The goal of the proposed project is to realise a network of demo-sites and pilot lines at regional level that will enable manufacturing companies of different sectors, including SMEs, to develop and introduce highly efficient and sustainable processes, technologies, systems and methods. The implementation of the demo sites and pilot lines will be based on the cooperation and synergy of the public and private sectors. Foreseen impacts will be the increase of competitiveness of companies through the improvement of manufacturing efficiency based on smart specialisation, knowledge acquisition and high added-value capacities, reduction of energy, water and other core resources consumption, and positioning of companies in new competitive value chains. The leading regions involved are Catalonia and Lombardia.

•! High-Performance Production through 3D Printing: The goal of this pilot initiative is the creation of a network of industry-led demonstrators across regions in Europe to improve the uptake of solutions provided by 3D printing technologies. By exploiting the potential of regions, regional clusters and of interregional collaboration at the level of demonstration and piloting activities, the development of the emerging industry in 3D printing will be accelerated and this on the basis of organised complementarities (smart specialisation).

This pilot initiative started in September 2014 with 16 regions that committed to develop a European demonstration network for 3D printing solutions. At this moment, 22 regions are involved in this pilot initiative. Catalonia is involved as a participating region, which is leading South Netherlands, Flanders and Norte.

Other cooperation agreements include the following:

•! Bio-photonicsPlus is a joint initiative of the participating countries and regions, as Agency for the Support of Businesses in Catalonia (ACCIÓ), to stimulate and fund R&D projects that will translate existing biophotonic technology and methods into appliances and put them into clinical, medical or industrial practice.

•! OLAE + (organic and large-area electronics) is a joint initiative participated in by Agency for the Support of Businesses in Catalonia (ACCIÓ). It will lead to the creation of whole new generations of products such as conformable and rollable displays, large-area efficient lighting, low-cost solar cells, low-cost RFIDs and memories, flexible and environmental friendly batteries, etc. Europe has a lead in the development of OLAE technology.

•! MANUNET is a network (ERA-NET) funded by the European Commission under the Sixth and Seventh Framework Programmes. Since 2006 MANUNET has been working with the objective to promote and fund transnational research and development projects in the field of manufacturing, through yearly calls for proposals.

•! The Catalan agency for competitiveness of the Catalan Ministry of Industry (ACCIÓ) and the German Federal Ministry of Economics and Energy (BMWi) have an agreement for a call of proposals for joint R&D projects focusing on developing innovative products, technology-based services or methods in all technological and application areas which have strong market potential.


1.8!Policy support and delivery mechanisms The Government of Catalonia has set out its priorities in Europe 2020 and RIS3 through the ECAT 2020 and RIS3CAT strategies.

Figure 1Framework of the Catalan Industry Policy

Source: (ACCIÓ) Own elaboration.

As a result of the analysis of the different production sectors, and on the basis of the three key future vectors of the economy of Catalonia (industrial tradition, quality of life and the green economy), the RIS3CAT strategy has identified seven sectors designed to lead the transformation of the economy of Catalonia towards the 2020 targets. The sectors have been linked in seven programmes:

•! Food Industries

•! Chemical, Energy and Resources Industries

•! Industrial Systems

•! Design Industries

•! Sustainable Mobility Industries

•! Health and Life Sciences Industries

•! Cultural and Experience-based Industries.

The implementation of the programmes will be monitored by a specific committee. This will comprise representatives of the Government of Catalonia (Ministry for Business and Labour and other ministries, as appropriate), and companies in each specific field, which can offer both their specific perspective regarding the general requirements as well as their practical experience.

In the programme for Industrial Systems, the focus is on companies involved in developing and supplying systems for industries engaged in any activity to operate efficiently. The core of the value chain includes manufacturers of both mechanical and electrical machinery and equipment, which can be referred to as OEMs or systems integrators. This core of the value chain draws from tier one and two suppliers (TIER1

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and TIER2) of components and systems. The main innovation priorities would be Advanced Manufacturing (new materials, additive manufacturing, eco-design, cooperative robotics, etc.).

RIS3CAT is structured into four pillars of action, which generate four strategic objectives and enable precise focus to be combined with a broader, crosscutting approach:

•! Pillar 1 – Leading sectors

•! Pillar 2 – Emerging activities

•! Pillar 3 – Crosscutting technologies

•! Pillar 4 – Innovation environment.

RIS3CAT strategy focuses on the six crosscutting enabling technologies, which are: ICT (in a broad definition including microelectronics and nanoelectronics); nanotechnology; photonics; advanced materials; industrial biotechnology; and Advanced Manufacturing technologies. Advanced Manufacturing is defined as the application of innovative know-how and technologies to optimise production systems in order to obtain new products, reduce time, energy, water and material costs in processes, improve precision, quality and safety, and reduce environmental impact.

Furthermore, RIS3CAT identifies the tools that enable direct action to be taken in order to match technology supply and demand. As a result, the R&DI system fosters the evolution of the economic base towards activities that generate greater added value, wealth and employment. The framework provided by pillars 1, 2 and 3 combines consolidated R&DI tools with new instruments to promote major initiatives and support and promote cooperation amongst stakeholders in the research and innovation system, enhance the competitiveness of the production system and find solutions to respond to new needs in society. These instruments include the following:

•! RIS3CAT communities

•! Emerging activities

•! Development of key technological capacities

•! Research and technology transfer infrastructure

•! Collaborative R&D projects

•! Technology valorisation and transfer

•! International cooperation

•! Innovative public procurement

•! Specialisation and territorial competitiveness projects (PECT).

These tools are guided by the following principles:

•! R&DI as a driver for economic growth

•! Quadruple helix public-private cooperation

•! Critical mass

•! International competitive advantage

•! Sectorial or technological commitment

•! Strategic change oriented towards strategic objectives and Vision 2020

•! Generation of new opportunities for economic activity and employment

•! Efficient use of resources (green economy).


To this end, the government has established mechanisms to ensure the coordination of resources from the European Union’s multi-annual financial framework programme 2014-2020 in Catalonia. Moreover, RIS3CAT also promotes an integrated focus on results oriented projects aimed at achieving the critical mass necessary to generate real impact on the socioeconomic situation.

The Catalan agency for competitiveness (ACCIÓ) organises and manages support tools (RIS3CAT communities, Collaborative R&D projects, ERA-NET), which can respond to the needs defined for Advanced Manufacturing.

The lessons learned in the RIS3CAT strategy and the RIS3CAT instrument ‘Comunitats’, in which several initiatives are framed as Advanced Manufacturing, are in early stage to get some outcomes. Nevertheless, it has served to highlight and organise the existing ecosystem in Catalonia. This is work, in cooperation with companies, which public bodies and agencies cannot do alone but only with a real commitment and effective collaboration.

Finally, it also requires a cultural change on both sides, companies and entities, for negotiation and cooperation, which would be vital to industry leadership. The agents of the R&D systems, such as universities, research centres and institutions, should know the real needs of companies and be able to understand, by putting themselves on the side of companies, with market requirements in time and cost, and bring practical solutions to companies in reducing time-to-market.

1.9!Good practice case BiophotonicsPlus is part of the Seventh Framework Programme. It takes the form of actions for the establishment of European networks to implement the European Research Space (ERA-Net) and has a total budget of €11 million for funding research projects in the field of optics and photonics applied to life and health sciences. The Government of Catalonia through ACCIÓ, co-finances this cooperative project with the European Union with an associated budget of €450,000 for Catalan participants.

Biophotonics is an area of multidisciplinary research that utilises light-based technologies. This is a springboard for Catalonia’s future and is expected to have a major impact on the agents participating in the development phase of the technologies and in their application. The participation in the ‘Development of Advanced Laser Imaging Techniques for the Anterior and Posterior Eye’ project makes the Institut de la Màcula one of the leading ophthalmological centres in this area.

Development of Advanced Laser Imaging Techniques for the Anterior and Posterior Eye (LITE) is an innovative, international eye research project involving the creation of a hybrid system that will allow for new eye imaging techniques to treat pathologies of the retina and cornea. These new techniques will enable high-resolution images of the retina’s photoreceptors to be obtained through the latest adaptive optical technique, together with the collagen fibres of the cornea.

LITE is aimed at developing advanced laser imaging techniques for both the anterior and posterior eye. The main goal is to advance in the field of diagnostic imaging in the eye by developing new cutting edge techniques, their applications to specific diseases, and finally their perspective of integration in a single platform, thus reducing the equipment and costs in the ophthalmology clinic.

The Institut de la Màcula, located in the campus of the Hospital Quirón Teknon, and the ICFO (Institute of Photonic Sciences), both located in Barcelona (Catalonia), are participating in the project Development of Advanced Laser Imaging Techniques for the Anterior and Posterior Eye (LITE) in collaboration with the following organisations:


•! C.S.O. Srl (SME – Italy – web site: www.csoitalia.it)

CSO is worldwide leader in the development and construction of ophthalmic instruments, including innovative fundus cameras, Scheimpflug cameras for corneal tomography, slit lamps and endothelial microscopes.

CSO will undertake the design of an instrumental prototype for SHG and AO-SLO imaging and provide clinical samples of corneas in collaboration with the public hospital Misericordia e Dolce, acting as subcontractor. CSO will coordinate this project and manage its dissemination and exploitation.

•! National Research Council – INO CNR (Public Research Organisation – Italy –

web site: www.ino.it)

National Institute of Optics (INO) belongs to National Research Council of Italy (CNR). INO has been carrying on research in optics for almost a century. Its current activities range from basic and applied research, to technology transfer and consulting. INO will provide for SHG imaging of corneal specimens with and without keratoconus, preparation of a bench-top demonstrator for SHG microscopy, design, development and implementation of SHG microscopy in a laser scanning ophthalmoscope.

•! National Research Council – IFAC CNR (Public Research Organisation – Italy –

web site: http://www.ifac.cnr.it/)

Institute of Applied Physics (IFAC) is part of National Research Council of Italy (CNR) with a focus on various laser applications including in biomedical optics, diagnostics and microsurgery and a history of relevant clinical developments. IFAC will undertake the modelling of SHG images from corneal samples in order to probe parameters of diagnostic relevance and follow the clinical developments of this project.

Two working teams have been created for the project, one in Catalonia and another in Italy. The Catalan team comprises the ICFO (Institute of Photonic Sciences) and the Institut de la Màcula. The idea of the international project is that all the knowledge acquired finally results in a single instrument. This is why it is a ‘must’ to work together using multidisciplinary teams.

The new system will provide a diagnosis that is better tailored to the cellular level, enabling improved knowledge of retinal diseases and offering new, more precise effectiveness assessment parameters. This responds to the new emerging experimental therapies, such as regenerative medicine treatments with stem cell implantation, for the degenerative retinal diseases currently lacking effective treatment and which are associated with severe vision loss, such as age-related macular degeneration (AMD) in its atrophic form, pigmentary retinosis and Stargardt’s Disease. Moreover, the new system of advanced imaging techniques will allow for treatment of the anterior and posterior eye segments at the same time, thereby reducing the costs of equipment.

The project is divided in three main parts. First, the anterior segment of the eye will be addressed by the use of Second Harmonic Generation (SHG) microscopy to image corneal collagen fibrils. Meanwhile, Adaptive Optics Scanning Laser Ophthalmoscopy (AO-SLO) will be introduced to investigate the posterior segment of the eye and its applications in the retina will be developed. Finally, the combination of these two techniques in a single platform will be detailed.

In the anterior eye, this project will investigate the introduction of second harmonic generation (SHG) microscopy. This non-linear technique can generate high-resolution images of collagen organisation without exogenous dyes. This feature will be exploited to understand modifications in the organisation of corneal collagen affected by


keratoconus, thus developing a non-invasive method for its early diagnosis. Cross-linking is a new approach to treat this disease by inhibiting its development. In this context, early detection of keratoconus is very desirable in order to reduce vision loss and avoid extensive surgery.

In the posterior eye, the project proposes the use of adaptive optics (AO) scanning laser ophthalmoscopy (SLO) for high-resolution retinal imaging. These images provide information at a cellular level, which is very valuable to detect degenerative processes in the retina. The consortium will build an AO-SLO system, which will be used to examine patients suffering from age-related macular degeneration (AMD). AO-SLO images will be used to follow those processes involved in photoreceptor cell death in peripheral regions of geographic atrophy. Data from these images will be correlated with information from standard techniques such as OCT, autofluorescence, etc.

Finally, by taking advantage of the laser scanning approach of both techniques, the project will design a unique integrated device, which may provide the ophthalmologist with new diagnostic information both on the anterior and posterior eye.

In the short term, the instrument will remain with the research centres, which have an interest in understanding why eye diseases develop. In the medium term, it will be transferred to clinical practice, once the problems that currently restrict the general availability of adaptive optics equipment have been resolved, such as acquisition time or the field of vision.

There is talk of transplants and implantation of tissues in the retina and this would be a way of being able to see what happens at a cellular level. The equipment that exists now does not allow one to see the cells individually. But it is exciting to imagine the applications that may be obtained with systems like this one; it will probably help to the sector to take a new approach to many diseases.

1.10!Leveraging the existing potential •! Challenge 1: Value chains for manufacturing are increasingly more

global

Value chains for manufacturing are undergoing a process of fragmentation of global nature, so that different production steps are found in the locations (countries) that are more efficient for them, which requires a manufacturing management communication that is distributed and has very good coordination. In addition, it makes increasingly important the role of emerging countries such as China, India and Brazil, not only in manufacturing but also in R&D. And in this sense, integrating Advanced Manufacturing in global value chains will be a challenge in the present decade.

•! Challenge 2: Society and the regulations are increasingly sensitive with regard to sustainability

Customers of manufacturers of industrial systems, pressured by society and regulations, need equipment to comply with environmental sustainability criteria and respect the economic and social environment. So important concepts include: analysis of the entire lifecycle of products, from cradle (consumption of raw materials and energy) to grave (recycling), or the circular economy, which aims at efficient use of resources and energy (lighter products, environmentally friendly, made through energy efficient production processes and systems and dismantling sustainable recycling).

As a consequence, not only must Advanced Manufacturing integrate these issues in order to succeed and be recognised as a friendly technology, but also take into account aspects that are increasingly appreciated such as quality, stability and safety of workers.


•! Challenge 3: Accelerated life cycles of industrial systems

Technological change is getting faster and the products are becoming more complex, because there is a sustained increase in investment in R&D in certain key technologies such as photonics and additive manufacturing. This acceleration means products have an ever shorter life cycle and therefore, manufacturers must make an effort to respond quickly to changes in demand by incorporating innovations.

Additionally, there is a trend towards customisation of products, where Advanced Manufacturing will become a big actor in order to respond to manufacturers needs.

•! To achieve higher levels of internationalisation

Although the industrial systems sector of Advanced Manufacturing is highly internationalised, some companies that export over 80% of the production still need to take another step and move from export to market development by taking advantage of new technologies such as Advanced Manufacturing. This means, for example, make market research studies that include the main target sectors in order to facilitate decisions and opportunities. Also, create a map of global markets for Advanced Manufacturing industrial systems, enabling the detection of potential cooperation countries, in order to focus efforts through active management of internationalisation.

This requires a qualitative leap in the internal preparation of companies and an investment of resources. The internal preparation implies, for example, a programme of strengthening of commercial structures and operations necessary to internationalise, such as languages, customer adaptation time, etc. The field also requires study and analysis to learn how existing patents may affect the sector and develop a patenting policy for new products. In addition, there is a need for a calendar of trade fairs relevant to industrial systems for Advanced Manufacturing.

The investment of resources for the leap into internationalisation requires specific lines of financing for this purpose, as well as cooperation mechanisms or participation in consortiums providing access to new markets, both in the phase of analysis and in execution.

•! To strengthen the management of companies in order to increase their size, improve their commercial capacities and to strengthen them by providing suitable training

Increasing the size of businesses, to grow large local companies able to realise major projects and disruptive innovations in the field of Advanced Manufacturing, is needed to develop the rest of the sector. A possible initiative would be to support the aggregation (or merger) of companies, professionalise the managerial structures (with greater presence of independent directors and executives), promote access to alternative financing systems to bank credit (such as venture capital or equity loans), and promote the establishment of protocols that facilitate a generational change in family businesses.

In all sectors, it is important to know the needs of the buyer, but in industrial systems related to Advanced Manufacturing even more so, since the technology provider must solve the problems and challenges presented by client requests. Therefore, it is necessary to promote the role of integration, which is based on offering global and turnkey solutions for the needs of customers, as well as offering a particular product.

Related to this demand for solutions rather than products, companies must act in the commercial, technology and customer service fields. That is, create business solutions tailored to customer needs through collaborations between companies, such as the consolidation of customer portfolios or by the creation of umbrella branding. Companies should also integrate all necessary technologies, such as Advanced Manufacturing, to offer global solutions, using their own skills or collaboration with


other companies that have them. Finally, companies need to develop after-sales service-provider solutions, rather than products, while maintaining contact with the client throughout the life of the equipment, which can even generate new business opportunities. Another way to improve understanding of customer needs is to create a space (Marketplace) incorporating customers, competitors and suppliers, and all members of the value chain. In addition, related to the speed of technological change, it seems interesting to create a system of surveillance technology to detect where innovation occurs and who makes it happen. To improve the training of professionals, it is important to introduce courses on business skills and knowledge in the curriculum of the university technical careers, enhance training in the technologies demanded by businesses (photonics, Advanced Manufacturing, ICT), and enhance dual vocational training in trades essential to the industry, with a focus that is applied and adapted to the needs of industries.

•! To incorporate technology and innovation as a key factor of competitiveness and strategy

To incorporate more technology into Advanced Manufacturing industrial systems, it is a must to increase the use of knowledge, promote eco-design (incorporating environmental criteria in the early stages of design, production, distribution, use, recycling and treatment of any final product for the purpose of preventing or reduce the environmental impact throughout its life cycle) by integrating Key Enabling Technologies (KET) such as photonics.

To increase the use of knowledge, it seems useful to introduce innovation criteria in public procurement processes and create a space (incubator) to allow entrepreneurs and experts in industrial technologies to develop, individually or cooperatively, new innovative business ideas.

To promote eco-design, it is important to promote a plan to renew lines and machines used by industry, which encourages the purchase of more energy-efficient machinery and a lower consumption of resources. Likewise, environmental criteria should be introduced in public procurement processes or a green label company could be created that identifies those companies and products that respect the environment from the point of view of the life cycle.

Finally, to integrate Key Enabling Technologies (KET), the strategy must promote technology as part of business strategies in order to facilitate disruptive changes, while at the same time, promoting open innovation (with collaboration between the different actors) and participation in European research projects.

•! To improve the environment and adapt the sector’s structure in order to encourage the competitiveness and sustainability of Advanced Manufacturing industrial systems, to improve public perception, to enhance its value and to promote industrial culture and callings

Among the stakeholders and structure of the sector are technological centres, associations and clusters. For technology centres, as part of the merger of the centres of Catalonia, it is necessary to create a map of the various specialised units, as well as to collect available projects and areas of interest for companies in Advanced Manufacturing so they can better understand it. At the same time, so that companies are encouraged to participate, it is necessary to implement technological bonuses subsidised by the government, in order to serve as an exchange for the technology centre services that companies need. In addition, mechanisms to promote a collaborative process between manufacturers and their customers to develop new products, and improving the tax treatment of R&D with validation processes accessible to SMEs, would help ensure improved technology transfer.


With regard to partnerships and clusters, it is important to encourage participating companies to maximise their collaboration initiatives. At the same time, it is appropriate to enhance Intercluster projects as a strategy for innovative initiatives that arise from collaboration.

To improve the image of industry, along with Advanced Manufacturing technology, it seems interesting to strengthen industrial culture as a basic pillar of the Catalan economy (as opposed to speculative activities) and spread the idea of the industry as a generator of talent and value, making it more attractive for students and researchers. Catalan industry being competitive in terms of good image and being appealing to work with, will become key to industrial systems for Advanced Manufacturing.


2.!Regional Innovation Performance Trends, Governance and Instruments

2.1!Recent trends in innovation performance and identified challenges Catalonia has traditionally been one of the most dynamic, industrial and innovative areas in Spain. With a gross domestic product (GDP) of €197 billion in 2013, the Catalan economy is the biggest of all the autonomous communities of Spain. With regard to GDP per capita, Catalonia places in the fourth position after the Community of Basque Country, Madrid and Navarre, with €26,500 in 2013, superior to the Spanish average of €22,500, and in line with the EU28 average of €26,600.

Over the period 2002-2013, Catalonia increased its R&D intensity from 1.2% to 1.5% of GDP. In absolute terms, the expenditure by all actors on R&D (public administration, businesses and higher education) increased two-fold over that period to almost €3 billion, or an average annual growth rate of over 4%. The inflection point to this trend was in 2009, when all actors on R&D expenditure recorded a decline (-3.3%); however, before that period, R&D expenditure recorded an annual growth of 7.3% on average.

During this period approximately two thirds of R&D expenditure was by the private sector and one third by the public sector. This is in line with the recommendations of the European Union, which states that to become a leading knowledge-based economy, the distribution of effort in R&D should be two thirds by the private sector and the rest by the public administration sector.

On the other hand, the figures from 2009 to 2011, although negative for businesses (-4.5%), show stagnation in public administration and higher education in R&D expenditure (-0.3%) and a contraction of GDP in Catalonia (-6%), but with a peak intensity of R&D in GDP at 1.7%, according to figures provided by the National Statistics Institute (INE).

A weak point in Catalan innovation performance has been the limited number of patents applied for with the European Patent Office (EPO). This indicator usually shows values in Catalonia (54.8 applications per million inhabitant in 2011) well below the EU28 average (109.6 applications per million inhabitant in 2011), although the value is consistently higher than for Spain as a whole (32.7 applications per million inhabitant in 2011). Nevertheless, from 1996 to 2006 the region’s share of publications in Spain grew from 21.2% to 25.5%, in the EU28 from 1.5% to 2.5%, and in the world from 0.5% to 0.9%. Between 2008 and 2012, the number of scientific papers per capita published in Nature and Science by Catalonia’s groups scored a similar level to Israel, and higher than Germany, France and Spain as a whole. Catalonia, with 0.1% of the world’s population, accounts for 1% of its scientific production. In absolute terms, the number of highly cited papers increased by 80% between 2004 and 2009, according to figures provided by the Ministry for Economy and Knowledge.

As a consequence of the Catalan innovation system, the type of innovation and propensity to innovate among Catalan businesses depends on several factors, as explained later. Despite the diverse sectors and businesses considered innovative, the bulk of R&D in Catalonia is conducted by a small group of businesses in only a few sectors; 50% of the overall expenditure on innovation in Catalonia is conducted by 50 businesses. The majority of researchers are found in two sectors:

•! Pharmaceutical (high-tech manufacturing)

•! Research and development (knowledge intensive services – KIS).

Businesses that innovate show several times the levels of innovation and R&D expenditure compared with businesses that did not report innovation. The probability of a Catalan enterprise increasing its innovation activity has usually depended on the following:


•! Business size

•! Access to public funds

•! Enterprises with a higher intensity of R&D expenditure per employee.

Despite the trends and numbers described before, Catalonia is one of the regions of Europe with an innovative activity considered as ‘moderate innovators’, with some indicators at the same level as some of the leading regions in Sweden and France, as reported in the Regional Innovation Scoreboard 2014.

Identified challenges

The most relevant challenges faced by industry in Catalonia are increasing competition from emerging economies, a lack of productivity growth in the region, and high rates of unemployment which have increased in recent times as a result of the economic crisis. Despite the crisis, Catalonia has the advantages of physical attractiveness, a research infrastructure, an open and international economy, and a broad-based innovation approach to address emerging market opportunities.

In order to improve competitiveness among Catalan businesses, and reduce the competition from emerging economies, the following specific challenges have been identified:

Challenge 1: Increase R&D expenditure in the private sector

In Catalonia the business enterprise sector represents 56% of total R&D expenditure, a contribution broadly in line with the recommendations of the European Union (two thirds from the private sector and one third from the public sector). However, in order to become a leading knowledge-based economy, comparable to the leading and most innovative regions in Europe, such as some Swedish territories, the private sector share should be much larger, around 80% of the total R&D expenditure.

Moreover, as shown by leading innovative regions, this development would improve productivity growth by increasing private R&D activities, thereby making public and private R&D personnel more productive and efficient.

The specific objective in this sense is to increase business expenditures in R&D and innovation to 1.6% of GDP.

Challenge 2: Increase technology transfer and valorisation of the technology

In the Catalan system, where a great deal of research is carried out in excellent universities and research centres, recognised as world class, more effort is required to encourage and intensify technology transfer and valorisation of the technology to businesses. Technology needs to be increasingly brought to market through:

•! market pull – R&D projects ordered from industry to the research and science system;

•! technology push – valorisation of research results through the creation of technology-based companies, usually university spin-offs.

The ultimate objective, as reflected in the last Regional Innovation Agency (ACCIÓ) Plan, would be to increase the number of Catalan companies present in international markets to two thirds of total Catalan firms and promote the value of their products.


Challenge 3: Increase the number and size of innovative firms

This third challenge follows from the need for technology transfer and valorisation of the technology into enterprises.

Despite Catalonia having an entrepreneurial tradition, with a large number and a high rate of creation of companies, Catalan companies are still typically quite small, and the ambition for growth based on new technology initiatives is rather weak (more than 70% of entrepreneurs have no expectation of expansion).

In order to change this scenario, more focused efforts must be made to stimulate the growth of companies beyond the ‘threshold’ of company turnover size (around €5 million) identified in the Catalan system. According to regional statistics, for many years, complacency has been noted among the majority of Catalonia firms that, having grown to this size, did not take further initiatives to grow beyond that threshold. Some of the new technology-based firms were created by researchers from the public sector, which explains part of the lack of ambition for growth.

In this respect, the specific objective set by the Regional Innovation Agency ACCIÓ would be to get a 20% increase in the number of innovative companies, and help companies to grow beyond the identified turnover threshold.

2.2!Institutional framework and set-up Innovation policy in Catalonia is supported by the Industrial and Research Directorates, and is implemented by the Agency for Business Competitiveness of Catalonia (ACCIÓ) within the Catalan Ministry of Enterprise and Labour (the main agency in terms of industrial innovation policies). This Agency is advised by the Agency for Management of University and Research Grants (AGAUR) and the Catalan Foundation for Research and Innovation (FCRI), both of which are within the Ministry of Economy and Knowledge of the Government of Catalonia. There are also other agencies and organisations affiliated with the Ministry of Health of the Government of Catalonia with specific activities related to R&D and innovation, such as BIOCAT (the government organisation to promote biotechnology and biomedicine in Catalonia).

Figure 2 Management and implementation structure of regional innovation strategy

Source: (ACCIÓ) Own elaboration.


Despite the provisions of the Spanish constitution, governance of research has never been transferred to the Government of Catalonia, because of the ruling of the Constitutional Court of 11 June 1986, which restricts the scope of activities of the Government of Catalonia.

Nevertheless, Catalonia took an interest in its own science and innovation policies well before Spain’s integration in the European Union, and the Government of Catalonia created at that time the Centre for Innovation and Business Development (CIDEM). In 1986, the Government of Catalonia established the policy of the Promotion and General Coordination of Scientific and Technical Research, and assigned to the Inter-ministerial Commission for Science and Technology (CICYT) the task of programming research activities by means of the preparation of a National Plan for Scientific Research, Technological Development and Innovation, which has been renewed and implemented several times.

Between 1993 and 2004, three Research Plans were approved in Catalonia, each lasting four years. Each of these specified the strategic policy of the Government in R&D for a given period, setting the fields of action, the priority programmes, and encouraging the creation of consolidated research groups, thematic networks and focal points for R&D.

As a second stage, the Catalan Research and Innovation Plan (PRI 2005-2008) was devised, as a joint action to promote research and innovation. The inter-ministerial Commission for Research and Technological Innovation (CIRIT) coordinated its preparation, and it was drafted mainly by the Catalan Ministry of Universities, Research and the Information Society, and the Catalan Ministry of Labour and Industry. PRI 2005-2008 defined a framework of actions to promote supply and demand of technology, and in particular to foster the Network of Technological Centres.

During this period, the weaknesses in Catalonia’s demand-side driven approach began to be recognised. The decision was taken (by CIDEM, the Centre for Innovation and Business Development, now the ACCIÓ agency) to develop an Industrial Innovation Plan distinct from the Research Plan (managed by CIRIT). This strategy reflected a more balanced approach between support for supply (academic/science) and demand (firm/industry) stakeholders. However, the integrated approach that underlies the conception of the Plan at the analytical level was not robustly implemented politically or financially.

There was little coordination in the form of joint management and financing procedures between responsible departments from different ministries or agencies. The increased resources devoted to support firms’ investment in R&D and innovative activities took the form of competitive grants, and, to a lesser extent, subsidised loans and guarantees.

As a consequence, a long-term roadmap was agreed and launched in 2008. The Catalan Agreement on Research and Innovation (PNRI) was signed with a broad political and social consensus (the government, universities, parliamentary groups and the main business organisations and trade unions), and established research and innovation as strategic priorities of Catalonia.

Among the new instruments described in the PNRI was the Agency for Business Competitiveness of Catalonia (ACCIÓ), which was launched along with its own Plan, in order to promote innovation and internationalisation among Catalan firms. ACCIÓ resulted from the merger of CIDEM (the agency to promote industrial innovation) and COPCA (the agency to promote internationalisation), and became the main agency in Catalonia for the execution and support of industrial innovation.

In 2010 the second Catalan Research and Innovation Plan (PRI 2010-2013) was launched. This Plan covered a period up to 2013, and was synchronised with European planning (EU Seventh Framework Programme for Research and Technological


Development (2007-2013)). PRI 2010-2013 identifies 17 priority research areas for Catalonia, including energy, water, healthy food, health and tourism.

On the other hand, there are strategies to change the model of competitiveness, the most important one being the Catalonia 2020 Strategy (ECAT 2020). In April 2012, the Government of Catalonia drawn up the Catalonia 2020 Strategy (ECAT 2020), in accordance with the new framework established by the European Union in its Europe 2020 Strategy, and building on the experience gained from the two previous Strategic Agreements for the competitiveness of the Catalan economy.

ECAT 2020 establishes objectives and provides a stable framework to guide policies for competitiveness towards the year 2020. This strategy is based on adapting production in line with the model of smart, sustainable and inclusive growth promoted by the EU. ECAT 2020 identifies six priority areas: employment and training; social cohesion; innovation and knowledge; entrepreneurism; internationalisation; and the green economy.

And finally, since 2013 Catalonia, according to Europe 2020 Strategy for smart, sustainable and inclusive growth, has worked on designing its own smart specialisation strategy based on its specific strengths and with a focus on activities with high levels of innovation and added value: ‘Leading sectors’, ‘Emerging activities’, ‘Crosscutting technologies’ and ‘Innovation environment’. In line with this, Catalonia revised the second Research and Innovation Plan and the future plan for 2014-2020 to comply with the guidelines set out in the RIS3 strategy. The total investment allocated for four years amounts to €5,308 million, of which nearly 85% (€4,497 million) is allocated to R&D (science scope), and the rest (€811 million) for innovation (industrial scope).

Research and Development policies in Catalonia have a wide consensus among the social, economic and political players, their goal being to become a competitive country in a knowledge society, based on progress through talent, science, technology and innovation. The main strength of the Catalan policy is a continued political and economic commitment, independent of which political party is in the government at the time.

The Catalan R&D strategy (science scope) is based on the “funding people, not projects” premise, the most representative being the ICREA Programme, which in the course of 14 years has hired 313 highly talented and internationally outstanding scientists, allowing for a higher flexibility in the Catalan Research System, with a talent attraction and retention model solely based on competitive criteria. The programme has recently been externally evaluated, with high qualifications.

The Catalan R&D policies have also boosted an environment of excellence, the flagship being the CERCA System, made of 44 Research institutions, acting in all knowledge disciplines and benefitting from unique features such as flexibility, autonomy, private management criteria, strong scientific management, university campus environments and ex-post evaluation processes, among others. Also key members of this environment are the Catalan large research facilities, unique in Southern Europe, such as the ALBA Synchrotron and the Barcelona Supercomputing Centre (BSC-CNS).

2.3!Regional innovation policy mix The innovation policy mix is the set of measures included in the different Plans introduced since 1993. In 1986, the Government of Catalonia established a regulatory framework to promote and coordinate scientific and technical research, and boosted the preparation of a National Plan for Scientific Research, Technological Development and Innovation, which has been implemented several times.


In Catalonia, R&D and innovation support policies have been periodically specified by Research Plans (1993-1996, 1997-2000, and 2001-2004) and an Innovation Plan (2001-2004). This evolution of research and innovation policies has been developed throughout the last few decades in different ways:

•! During the 1980s, the main priority was to increase basic scientific knowledge. Given low levels of national productivity, the main focus was on big companies and public research centres at the national level, such as the Consejo Superior de Investigaciones Científicas (CSIC, the Institutes of the Spanish Research Council located in Catalonia). Innovation policy was developed through the R&D Spanish Plans, the creation of new R&D structures, R&D grants, and tax incentives.

•! In the 1990s, R&D policy focused on the dissemination of tacit knowledge previously captured, focusing on technology transfer with a sectorial and European scope. The targets at this stage were SMEs and technological centres. Innovation policy included the creation of some new instruments, including Centres for Technology Transfer (CTT), incentives to SMEs promoted by regional and Spanish innovation agencies, the launching of the first research plan, the internationalisation of research, and the consolidation of research groups.

•! In the 2000s, the last stage, innovation policy focused on optimisation of the innovation system. In order to correct systematic errors and reinforce company competitiveness, it focused on subcontracting R&D activities and innovation management with both a regional/local and national/European scope. The main foci were clusters, technology providers and technology start-up companies. The instruments launched in this period were the creation of technology networks, a technological market, new tax incentives, entrepreneurial programmes and transition to the digital era.

During the last decade, innovation policy driven by the ACCIÓ focused on optimisation of the innovation system. In the last years it has focused more specifically on a range of support measures to bring up new R&D related to high technological risk and high critical mass projects, in order to get new R&D projects with strong support from the public sector to cover the market gap.

For the period 2014-2020, the European Commission has defined an integrated approach to all funds of the Cohesion policy, through a common strategic framework and a clear setting of priorities and outcomes to be achieved. Also, the European Commission requires that smart specialisation be prerequisite to investment in research and innovation co-financed with European funds (Horizon 2020). The member states and regions have to detect their own potential and concentrate European funds in economic areas that truly have the capacity to transform their region.

Within this framework, the Catalan Government has approved the RIS3CAT Research and Innovation Strategy, aimed at ensuring that European Union co-financed research and innovation investments are turned into economic growth and jobs.


Table 1 Regional innovation support measures

Title Duration Policy priorities Budget Organisation responsible More information

RIS3CAT communities

2015-2017 1.3.1 Cluster framework policies

2.2.3. R&D cooperation

2.2.2. Knowledge Transfer

2.3.1 Direct support of business R&D

3.3.2 Recruitment of skilled personnel in enterprises

€72m Agency for Business Competitiveness (ACCIÓ)

http://accio.gencat.cat/cat/ajuts-financament/ajuts2015/innovacio/empresa.jsp

Specialisation and territorial competitiveness projects (PECT)





€72m Local Administration Directorate-General http://municat.gencat.cat/u

pload/feder/guia_pect_2014_2020.pdf

Emerging activities

2016 2.2.2. Knowledge Transfer


€10m Research Directorate-General Not published yet



R&D Projects 2015-2020 1.3.1 Cluster framework policies





€30m Agency for Business Competitiveness (ACCIÓ)

http://accio.gencat.cat/cat/ajuts-financament/ajuts2015/innovacio/empresa.jsp

Public-private partnerships in R&D

2016-2022 2.2.3. R&D cooperation


5.1.1 Support to the creation of favourable innovation climate


Industry Knowledge

2015-2020 2.2.2. Knowledge Transfer


5.1.1 Support to the creation of favourable innovation climate

€12m Agency for Management of University and Research Grants (AGAUR)

Catalan Financial Institution (ICF)

http://agaur.gencat.cat/en/beques-i-ajuts/convocatories-en-termini/index.html?modalitat=t http://www.icf.cat/en/productes-financers/index.html?BotoOp=prestecs



Research and technology transfer infrastructure





Innovative public procurement

2015 - 2020 2.2.3. R&D cooperation



€50m Department of Economy and Knowledge http://comunitats.accio.gen

cat.cat/c/document_library/get_file?uuid=f9684ff2-faca-4510-9fd0-5337ed83c7c0&groupId=901324

Source: Own assessment.


2.4!Appraisal of regional innovation policies Scientifically successful outcomes have followed the launch of the first Research Plan in the early 1990s, with its focus on basic science. However, in recent years, innovation policy has become predominant, focusing on optimisation of the innovation system. In order to correct systematic errors and reinforce company competitiveness, it focused on subcontracting R&D activities and innovation management with an enhanced regional/local and national/European scope.

Partly due to Catalonian innovation policy, between 1996 and 2009 R&D increased more rapidly than GDP, raising the intensity of R&D from 0.9% of GDP (1996) to 1.68% (2009), with average annual increases in R&D of 11% during the second half of this period. Also, between 2006 and 2009 there was a large increase in public investment in R&D, which doubled between 2006 and 2009. At the same time, business expenditure accounts for more than 60% of R&D in Catalonia.

The business enterprise sector in Catalonia is characterised by the relevance of its SMEs, which in 2012 gathered 70.1% of the labour population in the non-financial business economy and accounted for 50.8% of its gross value added.

Despite this, the involvement of Catalonia’s business enterprise sector in R&D is quite noteworthy. According to the 2012 figures, it financed 55.2% of the total R&D expenditure – a figure in between the Spanish (45.6%) and EU average (54.9%) – and it executed up to 56.1% of it.

In 2013, the business enterprise sector expenditure on innovation accounted for 1.57% of the Catalan GDP, while between 2011 and 2013 nearly a third (29.1%) of Catalan firms with more than 10 employees introduced technical innovations, 14.4% as product or process innovations and 23.3% as marketing or organisational innovation.

In this context, the Strategy for the Smart Specialisation of Catalonia (RIS3CAT) defines the framework within which the Catalan Government establishes research and innovation (R&I) actions and programmes over the 2014-2020 period and provides support for the generation and development of innovative projects. Moreover, the Digital Strategy of Catalonia for 2020 establishes the framework for investment and action in the ICT field.

RIS3CAT was formulated in accordance with in-depth analysis of the strengths, weaknesses, opportunities and threats of the Catalan economy, taking into account the different sectors and technological capabilities. This analysis identifies three main vectors that provide the structure for the activities that will enable the Catalan economy to successfully tackle the major social and economic challenges of the 21st century:

•! The legacy of the great Catalan industrial tradition

•! The wellbeing of people in such spheres as food, health, leisure and lifestyle, in which R&I generates economic opportunities

•! The global challenges posed by climate change, the impact of human activity and shortages of natural resources.

To advance towards making Vision 2020 a reality, RIS3CAT establishes four strategic objectives and four pillars of action:

•! Leading sectors – to modernise the business fabric by improving the efficiency of production processes, internationalisation and the reorientation of consolidated sectors towards activities with greater value added

•! Emerging activities – to promote new emerging economic activities through research and innovation, to create and develop new market niches


•! Crosscutting enabling technologies – to consolidate Catalonia as a European knowledge hub and link technological and creative capacities to existing and emerging sectors in the territory

•! Innovation environment – to improve the overall Catalan innovation system, increase the competitiveness of companies and steer public policies towards promotion of innovation, internationalisation and entrepreneurship.

The evaluation of the effectiveness of regional innovation policies is carried out by means of surveys addressed to beneficiaries, who provide both quantitative and qualitative assessments of the implemented measures; however, it is rather difficult to establish a direct cause-effect relationship between an innovation policy measure and the evolution of the economic indicators of the beneficiaries.

There are some factors that could have had a bigger influence on innovation policy outcomes; some of which relate to the challenges as follows:

•! The first important factor is the need for some political and financial stability over a long period of time, at least 10 years, to ensure that companies have future security of instruments and budgets for innovation.

•! Another relevant factor is the inadequacy of incentives coming from the private sector designed to stimulate greater industrial investment and thus multiply the efforts of the public sector in terms of innovation. To support all innovative projects, it is necessary to develop some innovation-specific financial instruments, through financial institutions, public, private or semi-private banks.

•! Last but not least, there is the difficulty with certain companies growing beyond a ‘threshold’ level of turnover (€5 million). This happens in particular with companies coming from the public sector, which are often spin-offs set up by researchers who also have other income as employees.

If difficulties in the macroeconomic environment persist in the medium to long term, the principal barrier that the regional innovation stakeholders may face is the difficulty of accessing public or private finance, which will hinder future R&D and innovation initiatives.

The current set of regional innovation policy measures is oriented in the right direction to address the challenges identified in the Catalan innovation system.

2.5!Policy good practice The best example of good practice has been the creation and development of business competitiveness based on dynamic clusters, placing Catalonia as a leading region in the world on cluster initiatives. Following activity over almost two decades, Catalonia now has a rich system of 30 clusters in fields as diverse as food, textiles, capital goods and renewable energy, with the active involvement of a thousand entrepreneurs.

This initiative started in 1992 with the publication of ‘Avantatges Competitius de Catalunya’ (Competitive advantages of Catalonia), which for the first time configured the network of the Catalan economy around eight significant clusters. This study provided an assessment of all these competitive clusters and established some priority areas for strengthening the competitiveness of each of them. The Department of Industry and Energy of the Government of Catalonia sought to enhance the competitiveness of industrial clusters in the region by establishing a process of change inspired by the work of Michael E. Porter, The Competitive Advantage of Nations (1990).


This new cluster policy was introduced in parallel with the implementation of innovation initiatives to strengthen competition, in close collaboration with CIDEM (Centre for Innovation and Business Development), now the ACCIÓ agency, and the Ministry of Enterprise and Labour of Catalonia. This agency became responsible for implementing measures to strengthen competitiveness and facilitate strategic change.

This cluster initiative is well regarded as a good example of an innovative approach to supporting innovation, as the Barcelona City Council recognise, creating the new district named “22@”, which promotes projects with this approach in the field of so-called urban clusters that operate in highly knowledge-intensive areas such as renewable energy, information technology and communication, audio-visual and design.

There are many innovative capabilities attributable to clusters: economic revitalisation of the Catalan territory, increasing productivity and innovation capacity and the promotion of entrepreneurship, among others. The cluster policy is based mainly on promoting the planning of actions and common diagnosis, defining the strategic challenges of each cluster, and allowing deployment of joint policies to save resources. The Catalan Government thus is encouraging this common strategy through the cluster policy.

Rather than awarding grants, this approach seeks to identify what is most effective, innovative and functional.

ACCIÓ supported through the cluster policy 160 innovative projects that generated an investment of €20.8 million, in the fields of ‘innovative business models’, ‘winning strategies’ and ‘innovative platforms with a strategic approach’.

The most recent approach of support measures are the RIS3CAT communities, voluntary associations of companies and stakeholders in the Catalan R&I system that work in coincident sectors and cooperate to incorporate R&I into production activities in the leading sectors. These communities are an essential and innovative element of RIS3CAT. As active stakeholders in the Catalan innovation ecosystem, they ensure the participation of companies and stakeholders from the system in defining, monitoring and evaluating the priorities for R&I programmes. Their multidisciplinary profile and bottom-up focus make them leading players in entrepreneurial discovery processes that lead to increasing specialisation, as they identify and generate projects related to specific topics in the leading sectors.

The most recent precursors of RIS3CAT communities are European Technology Platforms (ETPs) and the Connect-EU groups. ETPs are industry-led forums of stakeholders that develop short- and long-term R&I agendas and European and national action plans that may be financed by either the public or the private sector. ETPs help to establish strategic agendas and to establish the priorities of R&I programmes. In the Horizon 2020 programme, ETPs provide external consultancy services and social connection.

For its part, the objective of the Connect-EU network of groups is to safeguard the research and innovation interests and needs of the sectors they represent, defending them before the European Union and lobbying European research programmes. The 15 Connect-EU working parties are all open groups formed by public and private stakeholders (companies, business associations, universities, etc.) that are representative of the outstanding science and technology sectors in Catalonia.

RIS3CAT communities, which continue the spirit of their precursors and are selected by open calls for proposals, implement agendas for the economic transformation of production activities through the incorporation of R&D. Within the sectors they represent, the members of the communities must generate critical mass and be representative and multidisciplinary, as well as feature considerable private sector involvement.


2.6!Possible future orientations and opportunities Following outcomes from innovation policies specified in the Research and Innovation Plans since 1993, Catalonia should keep pushing innovation boundaries to become one of the more dynamic and innovation regions not only in Europe but also in the world. Following this strong commitment, several strategic action lines have been established.

Entrepreneurship should continue to be promoted, especially by providing financial support for the growth of enterprises. In fact, about half of the companies that receive public support to finance R&D and innovation in Catalonia would not undertake the project without the support of the public administration.

Following this effort, there should be greater stimulation of private investment through public funds. Mainly, this reflects the trend to give increasing support to the promotion of collaborative projects between companies, to enable the development of larger scale R&D projects despite the small size of Catalan companies (98% are SMEs).

In relation to this effort, and due to the economic and budgetary constraints in Catalonia, the regional government must continue promoting the participation of Catalan companies in national and European programmes to support R&D and innovation.

In addition, regarding technology transfer and the improvement of technology in Catalonia, the administration should encourage both Catalan/Spanish and European funding for projects that promote business R&D outsourcing from agents which generate research technology (market pull and technology push).

Moreover, in the early stages of technology commercialisation, the public sector should encourage the identification of new technologies and their technology transfer, while at the same time letting the market choose the best business and successful technology.

Nevertheless, in order to focus on winning strategies through smart specialisation, with the new concept of high-technology clusters, to compete in an international environment, a reduction of the rivalry and an increase in alliances among the science and technology parks of Catalonia should be considered, in order to gain critical mass and focus on efficient public-private partnerships in regional sub-systems of innovation.

On the other hand, some opportunities will arise in the coming years as demand grows for knowledge-intensive social goods, many driven by the public sector (e.g. health, environment and aging). Also it should be an opportunity for Catalan firms to participate in global knowledge networks and technological platforms, and at the same time promote the diversification of production and trade towards goods and services with higher knowledge content.


Appendix A!Bibliography

Documents:

1.! Papers d’Economia Industrial. Observatori de Prospectiva Industrial (2010).Clústers i competitivitat: el cas de Catalunya (1993-2010).

Available at: http://www.gencat.cat/diue/doc/doc_11907125_1.pdf

2.! Informes de conjuntura econòmica.

Available at: http://www.idescat.cat/cat/economia/conjuntura/informes.html

3.! Porter, Michael E. (1998). On Competition,

4.! Porter, Michael E. (1990). The Competitive Advantage of Nations.

5.! Ferràs, Xavier. (2011). Innovation Programmes (presentation).

6.! Government of Catalonia. (2010) The Catalan Research and Innovation Plan (PRI 2010-2013).

Available at:

http://www10.gencat.cat/pricatalunya/recursos/pri_2010_13_cat.pdf

7.! OCDE. (2010). OECD Reviews of Regional Innovation: Catalonia, Spain.

8.! Available at: http://www.oecd.org/gov/regional/innovation

9.! Government of Catalonia. (2008). Pacte Nacional per a la Recerca i la Innovació (PNRI).

Available at: www.gencat.cat/diue/doc/doc_25250619_1.pdf

10.! ACC1Ó. (2009). Informe Anual de l'R+D i la Innovació a Catalunya.

Available at: www.acc10.cat/ACC1O/cat/talent-coneixement/publicacions/estudis-competitivitat/inversio_r_d_innovacio_catalunya.jsp

11.! Fontrodona Francolí, Jordi. Blanco Díaz, Raül. (2014). Estat actual i perspectives de la impressió en 3D.

Available at: http://empresaiocupacio.gencat.cat/web/.content/19_-_industria/documents/economia_industrial/impressio3d.pdf

12.! Poveda, Carmen. (2015). La nova indústria.

Available at: http://empresaiocupacio.gencat.cat/web/.content/19_-_industria/documents/economia_industrial/03_ARTICLES_ECONOMIA.pdf

13.! Grau Costa, Antoni Maria. (2015). Una estratègia industrial per a Catalunya. Available at: http://empresaiocupacio.gencat.cat/web/.content/19_-_industria/documents/economia_industrial/2_estrategia_industrial.pdf


Appendix B!Stakeholders consulted

1.! Carles Miranda, Business Innovation Manager, Agency for Business Competitiveness of Catalonia at (ACCIÓ), Enterprise and Labour Department, Government of Catalonia (17 December 2015).

2.! Jennifer Ruiz, Advanced Manufacturing Specialist, Agency for Business Competitiveness of Catalonia at (ACCIÓ), Enterprise and Labour Department, Government of Catalonia (17 December 2015).

3.! Joan Miquel Hernández, Manager of Business Development Area, Directorate General of Industry, Enterprise and Labour Department, Government of Catalonia (16 December 2015).

4.! Roger Suarez i Graells, Industrial Systems Coordinator at the Business Development Area, Directorate General of Industry, Enterprise and Labour Department, Government of Catalonia (16 December 2015).

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