REGIONS AND NEW PRODUCT DEVELOPMENT

Vangelis E.Katsaros

Chemical Engineer NTUA

PhD Candidate University of Thessaly

Ioannis L. Bakouros

Ass. Professor University of Thessaly

VERITE, MANTOVA, October 2002

THE CONTRIBUTION OF REGIONS TO NEW PRODUCT DEVELOPMENT

New Product Development Strategy

As Catalyst for Regional Welfare

Formulation & Implementation

The Case of Thessaly, Greece

IDENTIFICATION OF PROBLEM

“Underperformance” in relation to other regions

Structural deficiencies

Unemployment – Regional Welfare Decline

THESSALY’S INNOVATIVE PAST

Since 1997, the Region of Thessaly is actively involved into initiatives promoting innovation and technological development. The Region has been selected to participate in a number of innovative actions of the ERDF, including RIS Thessaly (1997-98), RIS+ Thessaly (1999-2001), Regional Economic Intelligence (Innovation Programme, 1998-2000), InnoRegio (RECITE II, 1999-2001), which led to the formulation and implementation of a regional strategy for innovation and technological development

THESSALY’S INNOVATIVE PAST

Up-today main tested priorities of the innovation strategy developed in Thessaly were:

the promotion of the culture of innovation,    the strengthening of the business innovation capabilities,   the promotion of R&D services,   the improvement of the human capital potential, and    the development of innovation financing mechanisms

These priorities were specified in pilot projects and soft actions that were implemented with funding from the Regional Operational Programme and other innovative actions

THESSALY’S CURRENT POSITION IN INNOVATION

Thessaly actually holds a leading position among the Greek regions in terms of social mobilisation, promotion, and support for innovation. This became evident at the

1st Innovation Week and Contest (7-13 May 2001) Thessaly’s four-year innovation strategy, established

through RIS and RIS+ programmes, is integral to the economic development and the growing research and development capacity of the region, assessing the strengths and weaknesses of Thessaly’s innovation system, and formulating ways to improve performance in this area. It also sought to provide a framework to address innovation policy issues in a comprehensive and coordinated manner

THESSALY’S CURRENT POSITION IN INNOVATION

The enhanced RIS+ plan was derived from the following needs to effectively move ideas to prosperity (i.e., the innovation cycle).

1. Identify fragmented streams of innovation activities which could be coalesced with a new common innovation framework;

2. Define the collaborative framework of shared prosperity; and

3. Suggest a blueprint for a dialogue, which may chart a direction toward the emerging 'world trade of ideas'.

THESSALY’S CURRENT POSITION IN INNOVATION

The Region’s RIS/RIS+ Action Plan for Innovation is articulated around six action axes:

1. Promotion of innovative mentality.2. Technological restructuring of the productive structure and

strengthening of the innovative competence of businesses.3. Development and promotion of services by the research

and technological infrastructure as well as by the business support organizations.

4. Development of human resources and business capabilities5. Development of financing mechanisms.6. Monitoring, evaluation and renewal of the region’s

strategy and its competence to learn and evolve.

THESSALY’S FUTURE

A WORLD CLASS OF IDEAS

INTO INNOVATIVE ACTIONS

THESSALY’S FUTURE

RIS+ of Thessaly moves a step forward the innovation process capitalizing on the progress of the RIS programme has achieved, and realizing the benefits of innovative actions in the application area of profitability and revenue generating outcomes.

The next step forward is the synchronization of regional innovation resources into a compound effort that incorporates generation of ideas funding, regional support and policies in order to facilitate the innovation mechanisms in Thessaly

This synchronization process has to take a deliberate and systematic effort that must

be equally contributed to:

  Retooling the innovation process with on-line tools

   Upgrade the human resources depository in the region

   Empower the innovation process inside SMEs with pilot actions

REG. SUSTAINABLE DEVELOPMENT EMPLOYMENT - WELFARE

Integration of the Regional Innovation System

Formation of Innovative Mentality and Regional Consciousness

Improvement of the Business Environment

Strengthening of the Innovative Competence

INTEGRATION OF INNOVATION IN THE REGIONAL DEVELOPMENT POLICY

STRATEGIC APPROACH

MAIN TARGETS

RISRIS+

REGION OF THESSALY:

3rd DEVELOPMENT POLE IN GREECE

1. Regional Dimension 2. Employment 3. Sustainable Development

ανάπτυξη 4. Dynamism

Flexible

Dynamic

NPD S T R A T E G Y

THESSALY’S COMPREHENSIVE STRATEGY

Thessaly’s InnovationStrategy

3rd Development Pole

Calibrating the innovation strategy

Transformation to innovative actions

Focus Area

NEW PRODUCT DEVELOPMENT STRATEGY

Why an NPD strategy

NPD Strategy What characteristics an NPD strategy must

have ? What steps must be taken to formulate and

implement such a strategy

MAIN TARGETS

Strategy’s main objective is to improve the capability of regional companies “to create and market”. This compound effort aims to result into a fast forward process that will accelerate the time needed from idea generation to a new product development.

NPD Strategy Targets

1.   Creation of new companies2.   Attracting new investments3.   Supporting private firm innovative activities4.  Modernizing the region’s industrial base

through technology transfer, upgrading existing infrastructure and skills within the region

5. Promoting social engagement and widening participation

6.  Continuously improve the regional policy making

INVENT (Innovative Ventures in Thessaly)

Targets

(1)   application of innovative practices for product development and marketing,

(2) creation of regional support structures for new product development, and

(3) building of regional awareness with demonstration and dissemination actions on new product development.

REGIONAL DEVELOPMENT FUND

AND

NEW PRODUCT DEVELOPMENT

STRATEGY

RESULTS – FUTURE ACTIONS

InnoRegio INVENT

a. Foundation of Mechatronics Center engaged in activities such as Rapid/Virtual Prototyping, etc

b. Establishing of Learning Networks in sectors:

        Food

        Textile & clothing

        Wood & furniture

        “Smart” building

RESULTS – FUTURE ACTIONS

RIS RIS+ INVENTa. Regional Innovation Support Center b. Innovation Week & Contestc. Digital Innovation Centerd. Documentation Center e. Thessalian Quality Trade Mark for Services in

Tourismf. 1st National Contest in Designing Furnitureg. Benchmarking Database

NEXT STEPS

Active participation in Networks of Excellence

Proposal & Initiatives for Interregional Networks of Businesses

REGIONAL WELFARE

Region of Thessaly, unanimously, has made the choice of New Product Development Strategy as the engine that will lead to sustainable economic and social development in the years to come.

THANK YOU!