Catalyzing Innovation and Resilience: insights from the Clusters meet Regions event in Graz
The picturesque city of Graz, Austria, hosted the 16th "Clusters Meet Regions" workshop on June 18-19, 2024. Organized by the European Cluster Collaboration Platform on behalf of the European Commission alongside regional partners, this dynamic event became a nexus of innovation, sustainability and digital transformation.
Nearly 100 industry leaders, forward-thinking innovators, and key stakeholders from over 20 countries gathered to ignite new ideas and strategies for boosting regional economic development. The agenda was packed with engaging activities and thought-provoking discussions, creating a fertile ground for collaboration. Highlights included more than 40 bilateral meetings and a company pitching session, where fresh ideas took centre stage.
Cross-sectoral collaboration as an approach to fortify the resilience of regional innovation ecosystems
Day 1 kicked off with stimulating discussions on regional economic development. Styria was considered a pioneer region in Austria in terms of cluster policy when cluster-oriented funding was first initiated in the 1990s. Styria's cluster policy was one of the catalysts for the region's transformation away from its former reliance on heavy industry. Today, the Economic Strategy Styria 2030 underpins the region's current cluster policy, with cross-cluster cooperation being a key element of the strategy.
In her opening speech, Barbara Eibinger-Miedl, Regional Minister for Economic Affairs, highlighted that Styria is one of the most innovative regions in the European Union. As the main reason for the region’s success, she mentioned the close cooperation between its scientific community and the business sector.
“One example of our cross-cluster approach is the transformation of our mobility sector. <…> The mobility cluster today represents over 300 companies with more than 70,000 employees. To manage the green transition of the sector, the mobility cluster and the Green Tech Valley cluster are strong partners that share their respective knowledge and know-how.” – said Barbara Eibinger-Miedl.
In the keynote speech Hubert Gambs, Deputy Director-General DG GROW – Internal Market, Industry, Entrepreneurship and SMEs, agreed that the cross-sectoral collaboration that clusters offer played a huge role in the region’s transformation away from its former reliance on heavy industry.
“EU clusters are dynamic platforms where diverse actors, such as SMEs, larger enterprises, research organisations and NGOs, together with public authorities, can prove their resources and their capabilities. This connective approach significantly increases their potential for innovation and employment creation compared to operating in isolation.”
Hubert Gambs also highlighted the proven value of clusters during the crisis “by finding, for example, critical suppliers during the COVID-19 crisis. This shows how clusters are really essential for our economic resilience because they can help in building these value chains across the European Union”.
Clusters’ role in implementing Twin Transition on the ground
As Jan-Philip Kremer, Head of EU Services, Prognos, presented in his input paper on the Styria region, cluster organisations are crucial for enhancing regional economic competitiveness and show positive correlations with key performance indicators like R&D expenditure, labour productivity, and patenting activities. The importance of cluster organisations in facilitating the Twin Transition was also highlighted.
Styria's innovation ecosystem shows robust strengths, underlined by a vibrant mix of multinationals and SMEs engaged in advanced technology and research. According to the 2023 Regional Innovation Scoreboard, the wider region of Southern Austria, which includes Styria, excels as a "Strong Innovator" with strengths in public-private co-publications, international scientific co-publications, and high levels of R&D expenditure. Therefore, cluster organisations are recognised by Styria policy makers as an instrument to strengthen and foster the regional innovation policy.
The important role of clusters was also recognised by Michael Liebminger, Cluster manager, Styrian Business Development Agency (SFG): “Cluster organisations are building knowledge about specific sectors that, in a business development sense, are very important for the region. Because they understand their partners, they understand their sectors, they give us a clue how the intervention logic is working and what should we do from the policy standpoint.”
Let’s talk about what clusters need
Moderator Mariella Masselink, Head of Unit of Industrial Forum, Alliances and Clusters at DG GROW, European Commission, opened the panel discussion asking how policymakers can best support clusters to foster resilience in their innovation ecosystem at regional, national and EU levels.
Josef Affenzeller, Director of Research Coordination at AVL, started the discussion with a practical example: “AVL is 75 years tradition on powertrain on the automotive side, but today we are dealing with a green approach in this direction. <…> What is needed for a mobility cluster, is not only technologies but also knowledge of other aspects: how to manage, how to deal with, how to integrate, and also how to support the public authorities for infrastructure.”
Montserrat Daban, President of The Council of European BioRegions (CEBR), and Director of Strategic Foresights and International Relations at Biocat, pointed out another thing that clusters need – an integrated approach and a supportive policy, designed to enhance the involvement of clusters by ensuring they have a more significant presence at decision-making levels and in areas where they can influence innovation procurement processes.
“Clusters are not the same they used to be, so the needs for policies are different at this moment. <…> Clusters are a variety of structures, they have evolved. Clusters require sustainability through programmes that facilitate connectivity and provide cascade funding; this includes initiatives like the Euroclusters” – said Montserrat Daban.
Thomas Krautzer, Head of the Social and Business History Institute at the University of Graz, added that the European Commission and the EU Member States should focus more on the conditional factors and conditions of demand within the Porter Diamond, and distinguished difficulties in accessing infrastructure, trained personnel, capital resources, scientific resources and strategic investments as a few of the largest problems for EU businesses.
“It's about a sound monetary and fiscal policy here in Europe. And let's name it, it's about less bureaucratic overkill”, - marked Thomas Krautzer.
Triple Transition Concept: Engaging Society
An interesting idea was raised during the second interactive session with the audience: discussing the twin transition, which focuses on digital and green transformations, is not enough. We need to start talking about the triple transition, where the third crucial component is society.
Including society in this transition involves ensuring that communities are well-informed, educated, and actively participating in these changes. It’s about making sure that the benefits of innovation are accessible to all, and that public policies reflect the needs and values of the people. This idea perfectly describes Hubert Gambs's quote from the keynote:
“Clusters are very often much more than only about profits, they are also about connecting people, about shared values and about leaving no one behind.”
Participants stressed the significance of creativity in innovation across various sectors, including mobility and health tech. These innovations offer opportunities for reducing European dependencies and enhancing sustainability goals. Cluster organizations play a crucial role in addressing these challenges by fostering collaboration, and driving technological advancements. Examples included projects implementing a "second forest" through carbon dioxide sequestration and exploring the use of wood in diverse applications, from wind turbines to automotive parts.
During the session, the need to think beyond regional or national borders and more as a European ecosystem was highlighted, emphasizing the need for visionary solutions to achieve zero emissions and a sustainable future.
“We should be one European ecosystem, which for me would be the by-design thinking of the future. And the ECCP for me is one of those facilitators for this ecosystem.” - Andreas Park, CEO of the BioNanoNet.
A pitching session followed, with diverse projects from clusters, development agencies and technology centers across Europe presented. This session highlighted various initiatives including acib GmbH, Inspiralia, Hungarian Progressive Construction Cluster, European Sustainable Energy Innovation Alliance (ESEIA), ACstyria Mobilitätscluster, Photonics Austria and Green Tech Valley.
Regional and EU financial instruments and programmes
At the end of the first day, various methods for co-financing regional activities with a trans-regional perspective were discussed. Birgit Weidel, Head of Innovation Ecosystems at EISMEA, European Commission, presented several funding opportunities for clusters and their members. She highlighted various programmes, including Horizon Europe, the Single Market Programme, the European Regional Development Fund (ERDF), and the Interregional Innovation Investment Instrument (i3). These programmes aim to foster a sustainable, digital, resilient, and inclusive EU economy by promoting innovation, entrepreneurship, and a high-performing Single Market, ensuring the highest standards of living and protection for EU citizens.
Following her presentation, a panel discussion focused on supporting cluster activities using ERDF funds and creating synergies. The panel moderator, Michael Kerschbaumer from the Styrian Business Development Agency (SFG) and the Enterprise Europe Network (EEN), introduced the SFG funding program, Spitzen!Leistung, developed specifically for cluster organizations. The discussion showcased the practical benefits and collaborative efforts that drive the success of the Spitzen!Leistung program and its positive impact on participating companies and the broader cluster network.
The Spitzen!Leistung program, launched in 2015, aims to enhance innovation management capacity. To overcome resource limitations, it utilized ERDF funds to extend its reach. The program was first piloted by the Green Tech Valley Cluster in 2017, involving close collaboration with EEN. This collaboration led to a nomination for the Enterprise Europe Network Best Practice Award in 2020.
Christina Seifried, Project Manager at Silicon Alps Cluster, Laura Daviña König, Project Manager at Human Technology Styria, Mario Gschwandl, Head of Technology at Ottronic E-Systems, Thomas Lechner, Co-Founder & CTO at Luminous Labs, Tibor Zechmeister, Managing Partner at CommuModo Gmb, and Daniela Riedler, Head of Global HR & Sustainability at Payer International GmbH, joined the stage to showcase the practical application of their projects.
Christina Seyfried acknowledged the challenges of convincing companies of the value of consulting projects but emphasised success stories like those of Ottronic E-Systems and Luminous Labs, who secured follow-up funding. Mario Gschwandl discussed how the program helped them address the challenges of digitalizing their production and maintaining quality in a high-mix, low-volume environment. Thomas Lechner, from a longevity startup, detailed how the assessment phase provided valuable insights that shaped their strategy and led to further funding for implementation.
Laura de Winder-Koenig spoke about the broader impact of running the Spitzen!Leistung program on the cluster organization. The program enhanced their role as enablers, supporting high-potential companies with customized consulting while raising awareness on key topics like sustainable transformation. She highlighted the importance of cross-cluster collaboration, mentioning the Transformation Lounge series aimed at fostering knowledge transfer across industries.
Tibor Zechmeister explained how their traditional consulting firm transitioned to developing a digital regulatory platform. They required support for digital strategies, which they successfully obtained through the grant. Daniela Riedler emphasized the substantial progress her company made in sustainability. An in-depth assessment showed they were already advanced in many areas, which led to the creation of three key projects.
Day 2 – visiting Austria’s leading innovators
The workshop concluded with two site visits to some of Austria’s leading innovators.
At AVL List GmbH, participants explored one of the world’s leading mobility technology companies for development, simulation and testing in the automotive industry and other sectors such as rail, marine, and energy. Based on extensive in-house research activities, the company delivers concepts, technology solutions, methodologies, and development tools for a greener, safer, better world of mobility and beyond.
Participants also had a chance to visit one of the largest biosample collections globally - with over 14 000 000 biosamples - at the European and Austrian headquarters of biobanking at the ZWT Graz. Afterward, they visited the extensive underground tunnel system and the heliport, with its breathtaking view of University Hospital Graz, and made a short stop at ZWT Accelerator to learn about future advancements in biotech and health-tech start-ups.
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