Stiller presentation 22 BSPC

The Baltic Sea area ofinnovation – futurepotentials andchallengesThe 22nd Baltic SeaParliamentary ConferencePärnu, 26th August 2013Silvia StillerThe Baltic Sea Region• Regions of 8 EU-countries• 147 Million people inEuropean BSR countries• EU members of the BSRcountries account for29,3 % of EU populationand for 30,3 % of totalEU GDPHamburgischesWeltWirtschaftsInstitut (HWWI)IntroductionFramework of socio-economic development will change: continuing integration and convergence processes intensified trade and labour market networking demographic change structural change towards service sectors andknowledge industries• Crucial role of innovative potentialIntroduction Still distinct disparities in per capita income in the Baltic SeaRegion Differing potentials for innovation: private and publicinvestments in research and development, education distinctlydiffer between states in the Baltic Sea Area Improvement of innovations plays crucial role for the wholeregion as driver of productivity gainsGDP per capitaGross domestic product per capita in purchasing power standards 2000−201031,000Denmark25,10030,100Sweden24,30028,800Germany22,40028,200Finland22,30015,700Estonia8,60015,300Poland9,20014,000Latvia7,500201012,5002000Lithuania6,9000 5,000 10,000 15,000 20,000 25,000 30,000 35,000 €Sources: Eurostat (2012); HWWI.GDP GrowthCatching up of lower incomecountries opens up newpotentials for innovations andknowledge-basedstructural changeLeading role of small andmedium sizedenterpriesEconomic structure andknowledge intensiveindustriesdistinct gap betweencountries in the Baltic SeaRegion as tospecialisation inknowledge-intensivesectors- catching up processeshave to be fostered!7Specialisation in knowledge-intensive branchesShare of employment in knowledge intensive industries 20081Sweden 6.2 47.8Denmark 5.5 43.9Finland 6.4 41.2Germany 10.1 35.5EU 27 7.0 33.1Estonia 4.9 28.3Poland 6.8 24.9Lithuania 2.3 27.2 High-and medium technologymanufacturingLatvia 2.2 27.2 Knowledge intensive services0 10 20 30 40 50 60 %1 EU 27, Poland and Sweden 2007; data for Russia not availableSources: Eurostat (2010); calculations HWWI.Innovations, Research and Developmentdecisive role of qualified labour for innovationsPopulation between 15 and 64 by educational level 20091FinlandEstoniaDenmarkSwedenLithuaniaEU 27GermanyLatviaPoland%0 10 20 30 40 50 60 70 80 90 100Tertiary education Secondary education Primary education not specified1 Data for Russia not availableSources: Eurostat (2010); calculations HWWI.HamburgischesWeltWirtschaftsInstitut (HWWI)Innovation, Research and DevelopmentSweden andFinland invest morethan 3 % of GDP inresearch anddevelopmentInnovation Indicatorsshare of R&DInnovation Union share of R&D personnel in total Patent applications share of HRST3 inScoreboard1 expenditures in GDP employment to EPO2 total employment2011 2010 2009 2010 2010per 1 mill.Rating % % %inhabitantsEU 27 – 2.0 1.7 109.2 40.9Sweden 2 3.4 2.6 308.3 48.9Denmark 3 3.1 2.9 243.8 47.1Germany 4 2.8 2.0 267.5 45.5Finland 5 3.9 3.2 218.1 48.3Estonia 16 1.6 1.7 38.2 47.9Norway 17 1.7 2.6 84.2 47.2Poland 27 0.7 0.8 8.1 36.9Lithuania 30 0.8 1.3 6.5 47.1Latvia 33 0.6 0.9 11.7 41.1Russia – 1.0 1.44 1.5 –1 34 European countries compared2 European Patent Organisation3 Human Resources in Science and Technology4 from 2005Sources: Eurostat (2012); HWWI.11OutlookThe BSR is marked bysubstantial structural anddevelopmental differencesregarding innovative potentialdifferent challenges arisefor its regions in the comingyears for promoting structuralchange andcompetetivenessOutlookHigh potential for knowledge-based structural change –but catching up as to innvoations still necessary for lowincome countriesCrucial: Strengthening of research and developmentactivities in the public sectors and in firms• Fostering cross-border integration and cluster building,e.g. by supporting migration of labour, infrastructure etc.• focus on cities as engines of regional development inknowledge societiesSeite 13ContactHamburg Institute of International EconomicsDr. Silvia StillerResearch Fellowstiller@hwwi.org