Technology Adoption and Innovation in Public Services(TAIPS)A project funded by Eiburs –European Investment Bank, University Research Sponsorship Programme
Department of Economics and Quantitative Methods (DEQM), Università di URBINOp Q ( Q ),
Dec 9 2010
EU Cohesion Policy 2007‐13 and public e‐services development
Luigi Reggi* and Sergio Scicchitano*
*University "La Sapienza", Department of Public Economics and Ministry for Economic Development, Department for theDevelopment and the Economic Cohesion.
1
The views expressed in this article are those of the authors and, in particular, do not necessarily reflect those of the Ministry of EconomicDevelopment.
OutlineOutline
• Regional policy and e‐services: institutionalliterature
• The resources for e‐services and information societysociety
• Empirical analysis: preliminary results– at national level– at regional level (cluster and factor analysis)at regional level (cluster and factor analysis)
2
Cohesion Policy and ICT (1)Cohesion Policy and ICT (1)COUNCIL DECISION of 6 October 2006 on Comm nit strategicCOUNCIL DECISION of 6 October 2006 on Community strategic
guidelines on cohesion:
...“Guideline: Improving knowledge and innovation for growthThe guidelines for action are as follow:The guidelines for action are as follow:— Ensuring uptake of ICTs by firms and households and promoting
development through balanced support for the supply and demand of ICT products and both public and private services as well as throughICT products and both public and private services, as well as through increased investment in human capital…
— Ensuring availability of ICT infrastructure and related services where the market fails to provide it at an affordable cost and to anthe market fails to provide it at an affordable cost and to an adequate level to support the required services, especially in remote and rural areas and in new Member States”.
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Cohesion Policy and ICT (2)Cohesion Policy and ICT (2)“Th f d ll th i i ith• “Thus, resources are focused on all the regions coping with structural adjustment and on investment with a particular emphasis on the cluster of activities around research, innovation, and the information society”, p XV EC (2007), Fourth report on economic and social cohesion
• “Digital agenda: Member states should consider how to better use the European Regional Development fund (ERDF ) to accelerate achievement of the EU 2020 objectives for broadband access including total coverage, making use of the different technologies (fibre, adsl, wireless, satellite) available to suit the diverse geographical needs and challenges of different regions across the EU”EC (2010) Regional Policy contributing to smart growth in EuropeEC (2010), Regional Policy contributing to smart growth in Europe 2020, SEC(553)Final
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Lisbon Strategy and Cohesion Policy“…Europe must renew the basis of its competitiveness, increase its growth potential and its productivityand strengthen social cohesion, placing the main emphasis on knowledge, innovation and the optimization of human capital To achieve these objectives, the Union must mobilize all appropriate optimization of human capital To achieve these objectives, the Union must mobilize all appropriate national and Community resources – including the cohesion policy”.(European Spring Council 2005).
“…In line with the re‐launch of the Lisbon strategy for Growth and Jobs, cohesion policy should focus on knowledge, research and innovation and human capital. Accordingly, the global financial effort in support of these fields of action should be significantly increased”.(E.C. 2005 Cohesion policy in support of growth and jobs. Community strategic guidelines, 2007‐2013 )
“In the 2007‐2013 planning period the share of Structural Funds of the European Union allocated to Research and Innovation (the “Lisbon Agenda”) received theUnion allocated to Research and Innovation (the Lisbon Agenda ) received the largest increase, in absolute and relative terms. It is no exaggeration to claim that, for many countries, the entire Lisbon Agenda rests on Structural Funds.”(Bonaccorsi A 2010 Towards better use of conditionality in policies for research and innovation under(Bonaccorsi A., 2010, Towards better use of conditionality in policies for research and innovation under Structural Funds: The intelligent policy challenge, working paper underlying Barca Report “An agenda for the reformed Cohesion Policy.) 5
Categories of expenditureCategories of expenditure
• How to calculate the contribution of structural Funds to each priority/sector?
• COUNCIL REGULATION (EC) No 1083/2006 general: 86 categories of expenditure86 categories of expenditure– Of which 6 are dedicated to the information Society
• Of which 1 is dedicated to public E‐servicesOf which 1 is dedicated to public E services
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6 categories of expenditure forInformation Society (IS)
10. Broadband networks11. Information and communication technologies: access,g ,
security, interoperability, risk‐prevention, research,innovation, e‐content, etc.
12 Information and communication technologies (TEN ICT)12. Information and communication technologies (TEN‐ICT)13. Services and applications for the citizen (e‐health, e‐
government, e‐learning, e‐inclusion, etc.)government, e learning, e inclusion, etc.)14. Services and applications for SMEs: e‐commerce, education
and training, networking, etc.15. Other measures for improving access to and efficient use of
ICT by SMEs
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What do structural funds co‐finance? European Regional Development fund (ERDF)European Regional Development fund (ERDF)
Structural funds for e‐services are much more relevant in the CONVERGENCE (CONV) Regions
REGULATION (EC) No 1080/2006 (ERDF)CONV
“…information society, including development of electronic communications infrastructure, local content,services and applications, improvement of secure access to and development of on‐line public services; aidand services to SMEs to adopt and effectively use information and communication technologies (ICTs) or toexploit new ideas;”exploit new ideas;
COMPETITIVE (COMP)“ promoting access to take up and efficient use of ICTs by SMEs by supporting access to networks the“… promoting access to, take up, and efficient use of ICTs by SMEs by supporting access to networks, theestablishment of public Internet access points, equipment, and the development of services andapplications, including, in particular, the development of action plans for very small and craft enterprises.”
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What do structural funds co‐finance? EUROPEAN SOCIAL FUND (ESF)EUROPEAN SOCIAL FUND (ESF)
ERDF ibi i l dERDF exibits a more important role compared tothe ESF in financing e‐services
/REGULATION (EC) No 1081/2006 (ESF)
“…the dissemination of information and communicationtechnologies, e‐learning, eco‐friendly technologies and managementskills, and the promotion of entrepreneurship and innovation and, p f p pbusiness start‐ups”;
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EU Cohesion policy: 2007 13EU Cohesion policy: 2007‐13
• 27Member states• Almost 344 billion Euros:
– 281 CONV, 56 COMP, 7 COOP– 278 ERDF 76 ESF– 278 ERDF, 76 ESF– Almost 28 to ITALY
• 21 CONV 6 2 COMP 0 8 COOP• 21 CONV, 6.2 COMP, 0.8 COOP• 21 FESR, 7 SFE
M th 15 billi E t I f ti S i t• More than 15 billion Euros to Information Society• More than 5 billion Euros to e‐Services
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EU Cohesion policy 2007‐13:p yCategories of expenditure dedicated to Information
societysociety
10 Telephone infrastructures (including broadband networks) 2,257,722,464 15%11 + 12 Information and communication technologies (including TEN) 4,121,115,554 27%Information and communication technologies (including T N) 4, , 5,554 7%13 Services and applications for citizens (e‐health, e‐
government, e‐learning, e‐inclusion, etc.)5,225,072,351 34%
14 Services and applications for SMEs (e‐commerce, education 2,144,358,160 14%pp (and training, networking, etc.)
15 Other measures for improving access to and efficient use of ICT by SMEs
1,537,162,147 10%
15,285,430,676 100%
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Resources allocated by Member State: absolute values (MEuro)
1,600
1,8003,714
1,621
1,200
1,400
1,600
800
1,000
,
400
600
0
200
Cat 13 (a v) Tot IS (a v )
Note. Authors’ calculations on EC – DG Regio data
Cat.13 (a.v) Tot IS (a.v.)
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Resources allocated by Member State: % values
10.00 %
8.00 %
4.00 %
6.00 %
2.00 %
0.00 %
SK GR
MA FI KR ES CK EE
COOP LT PO FR
EU (M
ean) SL IT PT HU RM ND SE UK DE BG LV BE DK IR LU AT
% cat 13 over tot SF % IS over tot. SFNote. Authors’ calculations on EC – DG Regio data
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Correlation between Inf soc and E‐services: abs values
4,000,000,000
Correlation between Inf. soc. and E‐services: abs. values
PO
3,000,000,000
3,500,000,000
R² = 0.800
2,000,000,000
2,500,000,000
t. Inf. soc.
GRIT
1,000,000,000
1,500,000,000
Tot
ES
GR
SKFR
0
500,000,000
CKHUDE
RM
0 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000
Cat. 13 E‐services
Total Structural Funds
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Note. Authors’ calculations on EC – DG Regio data
RESOURCES ALLOCATED BY FUND (ERDF and ESF) AND OBJECTIVE (CONV, COMP, COOP)
15 158
1.91 %
1 50 %
2.00 %
6,000
7,000
Resources allocated by Fund (Meuro)
12,4191 56 %
1.80 %1 60 %
2.00 %12,000
Resources allocated by Objective (Meuro)
15,158
5 135
1.00 %
1.50 %
3,000
4,000
5,000 1.56 %
1.26 %
0 80 %
1.20 %
1.60 %
6,000
8,000
10,000
128
5,135
90
0.12 %
0.00 %
0.50 %
0
1,000
2,000
2,312 554
4,388696 141
0 00 %
0.40 %
0.80 %
0
2,000
4,000
ERDF ESFI.S. CAT 13 CAT 13 / S.F.
0.00 %0
CONV COMP COOPI.S. CAT 13 CAT 13 / S.F.
Note. Authors’ calculations on EC – DG Regio dataNote. Authors’ calculations on EC – DG Regio data gg
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Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5ITF3 Italia GR11
GreciaCZ02 CZ01 Rep. Cec AT11 DEF0 Germania MT00 Malta
PL12Polonia
GR30 CZ03 DEG0 Germania AT12 DK01 NL11
CLUSTER ANALYSIS ON ALL EUROPEAN REGIONS: TOTAL INFORMATION SOCIETY (CAT. 10‐15)
Rep. Cec Austria
Polonia
Danimarca
Olanda
PL22 ITF4Italia
CZ04 EE00 Estonia AT21 DK02 NL12SK02
Rep. SlovacITG1 CZ05 ES12
Spagna
AT22 DK03 NL13SK03 LT00 Lituania CZ06 ES30 AT31 DK04 NL21SK04 LV00 Lettonia CZ07 ES41 AT33 DK05 NL22
PL11 CZ08 ES42 AT34 ES13
Spagna
NL23PL21 ES11
Spagna
ES43 BE10 ES21 NL31PL31 ES52 ES62 BE21 ES22 NL32PL32 ES61 ES63 BE22 ES23 NL33
Polonia
Spagna
Belgio
PL32 ES61 ES63 BE22 ES23 NL33PL33 ES70 ES64 BE23 ES24 NL34PL34 GR14
Grecia
FI13Finlandia
BE24 ES51 NL41PL41 GR21 FI19 BE25 ES53 NL42PL51 GR22 FR30
Francia
BE31 FI18Finlandia
PT15
PortogalloPL61 GR23 FR61 BE32 FI1A PT17PL62 GR25 FR71 BE33 FI20 PT20PT11
PortogalloGR41 FR91 BE34 FR10 PT30
PT16 GR43 GR12 BE35 FR21 SE12PT16 GR43 GR12Grecia
BE35 FR21 SE12
SveziaHU21
Ungheria
GR13 BG31
Bulgaria
FR22 SE21HU22 HU10 Ungheria BG32 FR23 SE22HU23 ITF5 Italia BG33 FR24 SE32
FR25HU31 RO11
Romania
BG34 SE33HU32 RO12 BG41 FR26 UKC1HU33 RO21 BG42 FR41 UKC2ITF6 Italia RO22 CY00 Cipro FR42 UKD1ITG2 RO31 DE21 FR43 UKD2
Francia
ITG2 RO31 DE21 FR43 UKD2PL42
Polonia
RO32 DE22 FR51 UKD3PL43 RO41 DE23 FR52 UKD4PL52 RO42 DE24 FR53 UKD5PL63 SE31 Svezia DE25 FR62 UKE1PT18 Portogallo SI01
SloveniaDE26 FR63 UKE2
SI02 DE27 FR72 UKE3SK01 Rep.Slov. DE30 FR81 UKE4UKK3 DE41 FR82 UKF1
Gran Bret.
Germania
UKK3Gran Bret.
DE41 FR82 UKF1UKL1 DE42 FR83 UKF2
DE50 FR92 UKF3DE60 FR93 UKG1DE71 FR94 UKG2DE72 GR24
GreciaUKG3
DE73 GR42 UKH1DE80 IE01
IrlandaUKH2
DE91 IE02 UKH3GermaniaDE91 IE02 UKH3DE92 ITC1
Italia
UKI1DE93 ITC2 UKI2DE94 ITC3 UKJ1DEA1 ITC4 UKJ2DEA2 ITD1 UKJ3DEA3 ITD2 UKJ4DEA4 ITD3 UKK1DEA5 ITD4 UKK2DEB1 ITD5 UKK4DEB2 ITE1 UKL2DEB3 ITE2 UKM2DEC0 ITE3 UKM3DED1 ITE4 UKM5DED2 ITF1 UKM6DED3 ITF2 UKN0DEE0 LU00 Lussemb.
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Information society (cat. 10‐15): first evidencefrom cluster analysis
• Campania shows the largest amount of Investments in Information Society (almost 535Investments in Information Society (almost 535 milions of euros)
• In the cluster 1: Západné Slovensko StrednéIn the cluster 1: Západné Slovensko, StrednéSlovensko e Východné Slovensko (SlovackRepublick – 367 milions of euros each), pMazowieckie (341) e Slaskie (337) in Poland.
• Cluster 2: Puglia (305), Sicily (258), Attiki and Anatoliki Makedonia (Greece), Latvia, Lithuania, Centro and Norte (Portugal), 10 Regions in PolandPoland.
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Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 ES61 S ES12 CY00 Ci CZ01 BE33 B l i FR41 PT30 P t ll
CLUSTER ANALYSIS ON ALL EUROPEAN REGIONS: CAT. 13 “E‐SERVICES”
ES61 Spagna ES12Spagna
CY00 Cipro CZ01
Rep. Ceca
BE33 Belgio FR41 PT30 PortogalloGR30 Grecia ES43 DE93
GermaniaCZ02 BG31
Bulgaria
FR42 SE21
SveziaITF3 Italia ES62 DEG0 CZ03 BG32 FR43 SE22SK02
Rep. Slov.FR30 Francia ES24
Spagna
CZ04 BG33 FR51 SE31SK03 GR12 ES30 CZ05 BG34 FR52 SE32SK04 GR13 ES41 CZ06 BG41 FR53 UKC1
GR22 ES42 CZ07 BG42 FR62 UKC2
FranciaGreciaGR23 ES63 CZ08 DE21 FR63 UKD1
GR25 ES64 EE00 Estonia DE22 FR71 UKD2GR41 FR61 Francia ES11
SpagnaDE23 FR72 UKD3
GR43 GR24 Grecia ES52 DE24 FR81 UKD4HU31 Ungheria HU10 ES70 DE25 FR82 UKD5ITG2 Italia HU21 GR11 DE26 FR91 UKE1
Germania
UngheriaGreciaPL11
Polonia
HU22 GR14 DE27 FR92 UKE2PL31 HU23 GR21 DE41 FR93 UKE3PL33 HU32 LT00 Lituania DE42 FR94 UKE4PL34 HU33 PL12
Polonia
DE50 GR42 Grecia UKF1PL42 ITF4
ItaliaPL21 DE60 ITC1 UKF2
PL43 ITF6 PL22 DE91 ITC2 UKF3
Gran Bret.
Polonia
Italia
PL52 ITG1 PL32 DE92 ITC3 UKG1PL61 MT00 Malta PL41 DE94 ITD2 UKG2PL62 RO11
R i
PL51 DEC0 ITE4 UKG3PL63 RO12 PT11
PortogalloDEE0 ITF1 UKH1
RO21 PT16 DEF0 ITF2 UKH2RO22 PT18 ES13 ITF5 UKH3
Romania
Spagna
RO31 ES21 LV00 Lettonia UKI1RO32 ES22 NL11 UKI2RO41 ES23 NL12 UKJ1RO42 ES51 NL13 UKJ2SI01
SloveniaES53 NL21 UKJ3
SI02 FI13 NL22 UKJ4
OlandaFinlandia
UKL1 Gran Bret. FI18 NL23 UKK1FI19 NL31 UKK2FI1A NL32 UKK3FI20 NL33 UKK4FR10 NL34 UKL2FR21 NL41 UKM2
FranciaFR22 NL42 UKM3FR23 PT15
PortogalloUKM5
FR24 PT17 UKM6FR25 PT20 UKN0FR26
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E services: first evidence from cluster analysisE‐services: first evidence from cluster analysis
ll h i i Sl k bli• All the regions in Slovack Republic except Bratislavsky have planned high investments in e‐
i ( th 189 ili f )services (more than 189 milion of euros)• Campania (147,5 milion of euros), Andalucia (Spain) and Attiki (Greece) also belong to the first cluster
• In the 2nd cluster: Sardinia in Italy, 3 Spanish, 7 Greek and 10 Polack Regions, Pas‐de‐Calais (France), Észak‐Magyarország (Hungary)
• A number of COMP regions decided not to use structural funds to co‐finance e‐services development
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Resources for e‐services and information isociety
an exploratory factor analysisp y y
• What is the “allocation strategy” of EU Regions?
• What is the relationship between the resources for e‐services and the rest of theresources for e services and the rest of the money allocated to “Information Society”?
• Is there any difference between CONV and• Is there any difference between CONV and COMP Regions?
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Principal component analysis: all regionsVariable cat. n. average min maxp_broadband (%) 10 263 14.134 0.000 100.000p_ICT (%) 11+12 263 27.831 0.000 100.000
Descriptivestatistics
p_e-services (%) 13 263 23.763 0.000 100.000p_SME1 (%) 14 263 19.218 0.000 100.000p_SME2 (%) 15 263 15.055 0.000 100.000
Correlation matrixCorrelation matrix
Variable p_broadband p_ICT p_e-gov p_SME1 p_SME2
p_broadband 1.00p_ICT -0.37 1.00p e ser ices 0 16 0 30 1 00
Correlation matrix
p_e-services -0.16 -0.30 1.00p_SME1 -0.17 -0.32 -0.30 1.00p_SME2 -0.22 -0.33 -0.28 0.02 1.00
N. Eigenvalues % Cum %g1 1.5061 30.12 30.122 1.3866 27.73 57.853 1.1330 22.66 80.514 0.9744 19.49 100.005 0 0000 0 00 100 00
Eigenvalues table
5 0.0000 0.00 100.00
Var n distance from origin dim1 dim2 Coordinates of
ObjectiveC3= CONVERGENCE 99 0.28386 0.28 0.41C3= COMPETITIVENESS 164 0.10344 -0.17 -0.25
illustrative variables:CONV & COMP
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ALL REGIONS (CONV AND COMP)
Convergence obj.
Competitiveness objCompetitiveness obj.
e‐services
CONVRegions
COMPRegions
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Principal component analysis: CONV regions
Variable cat. n. average min max
i ip_broadband (%) 10 263 15.049 0.000 100.000p_ICT (%) 11+12 263 25.452 0.000 100.000p_e-services (%) 13 263 33.058 0.000 100.000p_SME1 (%) 14 263 16.466 0.000 100.000
Descriptivestatistics
p_SME2 (%) 15 263 9.975 0.000 100.000
Correlation matrix
Variable p_broadband p_ICT p_e-gov p_SME1 p_SME2
p_broadband 1.00p_ICT -0.43 1.00p_e-services -0.23 -0.44 1.00
Correlation matrix
p_SME1 -0.03 -0.41 -0.32 1.00p_SME2 -0.02 -0.44 -0.02 0.29 1.00
N. Eigenvalues % Cum %1 1.8448 36.90 36.902 1.3606 27.21 64.113 1 1293 22 59 86 70
Eigenvalues table3 1.1293 22.59 86.704 0.6652 13.30 100.005 0.0000 0.00 100.00
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Facteur 2ONLY CONV. REGIONS
3.0
p e go i
1.5
p_e-gove‐services
0 p_SME2
p_broadband
p ICT
-1.5
p_SME1
p_ICT
Example:Sicily has programmed a single action for both e‐business and
-3.0 -1.5 0 1.5Facteur 1
broadband
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Factor analysis: preliminary evidenceFactor analysis: preliminary evidence
• Low correlation between e‐services and the other categories of expenditure => Regions investing in e‐services made a “clear choice”
• CONV Regions tend to choose the “e‐servicesCONV Regions tend to choose the e services strategy” more frequently than COMP regionsI CONV R i h t t l f d th• In CONV Regions – where structural funds are the main source of funding for information society –h i d i b ithe measures aimed at promoting e‐business are often accompanied by the development of broadband networks (see Sicily strategy)
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Conclusion (1)Conclusion (1)
li d f h i li1. Stylized fatcs: European Cohesion Policy 2007‐13 is a really ( in many cases, probably the most) important source for financing e‐servicesin the CONV Regions.
2. Cluster analysis: As to the allocated resourcesof Structural funds for e‐services:a) Significant heterogeneity across Member Statesb) Significant heterogeneity within Member Statesb) Significant heterogeneity within Member States
and across European Regions
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Conclusion (2)Conclusion (2)
3. Factor analysis: a) Allocated resources for e‐services stands alone: )
an “e‐services strategy” could be identified.b) CONV Regions are more likely to adopt such a “e‐b) CONV Regions are more likely to adopt such a e
services strategy”.
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