Sustainability of Cross-Border RTDI Projects and Networks-The Case of CIRCE

Klaus SchuchZSI – Centre for Social Innovation

Austrian funded cross-border RTDI programme

In the first 3 calls 395 participants (mainly SMEs) involved

Partners were initially primarily from „Central Europe“; recently mostly from SEE

Seite 4

Programme Goals1. Increasing the innovation capacity of

enterprises and their capability to absorb and apply external knowledge

2. Increasing the cooperation capacity of enterprises and creation of cross-border innovation networks and cooperation structures

Both goals go together!

Seite 5

Basic Assumption

1) Innovation happens through cooperation (approximated by measuring exchange density, - intensity and patterns)

2) A balanced use for project partners and their contribution to build up capacities and knowledge depends on functioning exchange relations (approximated by inclusion/exclusion of partners; accessibility of partners etc.)

Globalisation of business R&D: the changing determinants of location

1996 to 2005

Legacy11%

Closeto HQ

7%

ProximityProduction

13%

Market &Customer

Insight19%

SkillsCapabilities

22%

Subsidiesincentives

14%

LowCost skills

9%

Up to 1979

Legacy29%

SkillsCapabilities

16%

ProximityProduction

18%

Close toHQ14%

MarketCustomer

10%

Subsidiesincentives

9%

1980 to 1995

Legacy17%

SkillsCapabilities

16%

Close toHQ10%

ProximityProduction

17%

Market &Customer

Insight19%

LowCost skills

2%

Subsidiesincentives

13%

Source: INSEAD survey

Seite 7

Measurement of Exchange Relations1. Communication about project

management 2. Communication about project content3. Non-project related communication4. Exchange of goods5. Exchange of services6. Exchange of money7. Exchange about important contacts8. Exchange about other important

information

9. And mutual trust!

Seite 8

Objective of our Study

Investigation how project networks are developing

Conclusion can be drawn on:

1) the management of project networks2) the development of science-industry relations3) development of customer-vendor relations4) development of internationalisation5) sustainability of public interventions

Seite 9

Evaluation Concept

t1

1 year after(t4)

t2

t3

Seite 10

Science-Industry Relations

Benchmark: at least 80 % of all possible relations between science and industry in terms of exchange about project content and other valuable information should be realised. Proj_cont density: science -> industry (SMEs) > 80 %

Information density: science -> industry (SMEs) > 80 %

Seite 11

Development of Science-Industry Relations

0.00%

20.00%

40.00%

60.00%

80.00%

100.00% proj_1

proj_2

proj_3 proj_4

proj_5

project content T1

project content T2

project content T3

Seite 12

Internationalisation

Benchmark: at least 30 % of all possible exchange relations between Austrian and foreign partners should be realised

of Exchange Austrian <-> EE/SEE partners > 30 %partners

Seite 13

Development of international exchange relations

All exchange relations – network density between Austrian and non-Austrian

Project_3 T1 46/485 = 9.48 %

All exchange relations – network density between Austrian and non-Austrian

Project_3 T2 50/405 = 12.35 %

All exchange relations – network density between Austrian and non-Austrian

Project_3 T3 175/469 = 37.31%

Seite 14

Increasing Network Density by Project (T1 vs T3)

Relative change between project start and project end (in percentage points)

-50 0 50 100 150 200 250 300 350

Projekt 1

Projekt 2

Projekt 3

Projekt 4

Projekt 5

project management

project content

not project related communications

goods exchange

services exchange

contacts exchange

information exchange

trust

Seite 15

Development of Project Networks (T1 vs T3)

0

20

40

60

80

100proj_management T1

proj_content T1

non-proj-related T1

goods T1

services T1

contacts T1

information T1

trust T1

proj_1

proj_2

proj_3

proj_4

proj_5

Seite 16

Development of Project Networks (T1 vs T3)

0

20

40

60

80

100proj_management T2

proj_content T2

non-proj-related T2

goods T2

services T2

contacts T2

information T2

trust T2

proj_1

proj_2

proj_3

proj_4

proj_5

Seite 17

Development of Project Networks (T1 vs T3)

0

20

40

60

80

100proj_management T3

proj_content T3

non-proj-related T3

goods T3

services T3

contacts T3

information T3

trust T3

proj_1

proj_2

proj_3

proj_4

proj_5

So Far - So Good?

Seite 19

Entwicklung der Netzwerke (T1 vs T4)

0

20

40

60

80

100proj_management T1

proj_content T1

non-proj-related T1

goods T1

services T1

contacts T1

information T1

trust T1

proj_1

proj_2

proj_3

proj_4

proj_5

Seite 20

Entwicklung der Netzwerke (T1 vs T4)

0

20

40

60

80

100proj_management T2

proj_content T2

non-proj-related T2

goods T2

services T2

contacts T2

information T2

trust T2

proj_1

proj_2

proj_3

proj_4

proj_5

Seite 21

Entwicklung der Netzwerke (T1 vs T4)

0

20

40

60

80

100proj_management T3

proj_content T3

non-proj-related T3

goods T3

services T3

contacts T3

information T3

trust T3

proj_1

proj_2

proj_3

proj_4

proj_5

Seite 22

Entwicklung der Netzwerke (T1 vs T4)

0

20

40

60

80

100proj_management T4

proj_content T4

non-proj-related T4

goods T4

services T4

contacts T4

information T4

trust T4

proj_1

proj_2

proj_3

proj_4

proj_5

Seite 23

Zuwachs der Netzwerkdichte pro Projekt (T1 vs T4)

Relative Change Between T1 and T4 (in percentage points )

-50 -30 -10 10 30 50 70 90 110 130 150

Project 1

Project 2

Project 3

Project 4

Project 5

project management

project content

non-project-related communication

goods exchange

services exchange

contacts exchange

information exchange

trust

Seite 24

Sustainability

Not all exchange relations make sense for measuring sustainability (e.g. project management)T4 > T1

– Trust network density – project content exchange relations– Other valuable information exchange

Seite 25

Development of Trust (T1 vs T4)

Seite 26

Project and non-project related communication (T1 vs T4)

Seite 27

0

0,5

1

1,5

2

2,5

3

T1 T2 T3 T4

proj_cont intensity project_1

proj_cont intensity project_2

proj_cont intensity project_3

proj_cont intensity project_4

proj_cont intensity project_5

Intensity of project related communication(T1 vs T4)(low=1; very high=3)

Seite 28

Sustainability of Science-Industry relations

T4 > T1– exchange on project content continues– exchange of other valuable information

continues

Seite 29

Industry-science Relations DynamicsRegarding Project Content Exchange and Information Exchange

T1->T3 and T1->T4

-60,00 -40,00 -20,00 0,00 20,00 40,00 60,00 80,00

proj_1

proj_2

proj_3

proj_4

proj_5

percentage points

project content t1->t3

project content t1->t4

information exchange t1->t3

information exchange t1->t4

Project content exchange and exchange about other valuable information (T1 vs T4)

Seite 30

Sustainability of Customer-Vendor relations

T4 > T1– Exchange of goods– Exchange of services

Seite 31

Change of network density by category (T1 vs T4)

Durchschnittliche Dichte von Projektstart bis Nachhaltigkeitserhebung (in %)

0

10

20

30

40

50

60

70

80

90

100

project start (T1)

interim report (T2)

project end (T3)

sustainability (T4)