Moravian-Silesian Region - Regional Authority (Moravskoslezský Kraj)

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EU local and regional authorities contribute

mid-term review of Europe 2020

Assessment of the flagship initiative

An industrial policy for the globalisation era

Almost three years after the launch of Europe 2020, the Committee of the Regions has launched a broad assessment of the Strategy in preparation for its mid-term review, expected in 2014.

As part of this assessment, the replies to this questionnaire on the state of play of the flagship initiative An industrial policy for the globalisation era will be discussed at a conference to be held on 10 April 2013 in Brussels.

This conference will be the third in a series of CoR events and monitoring initiatives on the Europe 2020 Flagship Initiatives, preparing the mid-term review in 2014[1].

By participating in this survey, you will:

ensure that your views are taken into account in the debate held during the conference;
contribute to the CoR's consultative activity over the coming months, to include an opinion drafted by Claude Gewerc, President of Picardy Regional Council (PES/FR), scheduled for adoption at the CoR plenary session on 10-11 April 2013;
contribute to the fourth CoR Monitoring Report on Europe 2020, to be published in October 2013;
contribute to the mid-term review of Europe 2020 in 2014.

If you wish to participate in this survey, please complete this questionnaire in any eu language, using the spaces provided, and return it in text format to:

by 1 March 2013

The questionnaire will be available in all languages in mid January

For more information on this survey and for details on how to join the Europe 2020 Monitoring Platform, go to:

CDR2050-2013_00_00_TRA_TCD

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Contributor information[2]

Name of sender: / Miroslav Novák
Contact details: (address, telephone, email) / 28. října 117, 702 18 Ostrava, Česká republika, +420 595 622 775,
On behalf of:
(name of local or regional authority) / Moravian Silesian Region (Moravskoslezský kraj)
Type of organisation / City/Town/Municipality Region
County/Province Association of local and/or regional authorities
Other (please specify)
Country: / Czech Republic
Member of the EUROPE 2020 Monitoring Platform: / yes no

Current policy challenges and responses at regional and local level

1)What are the main challenges faced by industry in your region/city?
Please answer with respect to competitiveness (market trends; positioning in the market; competitors) and employment (finding the necessary workforce with the right skills; ability to create new jobs).
Partly because of its strong industrial tradition, the motor behind the region's economic performance is to a large extent the concentration of export-oriented heavy industry and the associated value chains in raw materials processing and engineering, which are important exporters of know-how to developed foreign markets around the world. The companies in these chains have a great potential for innovation in research and development.
However, despite many strengths and the positive development of recent years, even Moravian Silesian Region has not been immune to a raft of problems, which the responses below seek to identify. The region has one of the most polluted environments in Europe, adversely affecting the health of the population and damaging the region's image. It is important to realise that the current state of the environment impedes the region's further development (meeting the declared aims of the strategy) both in badly polluted areas themselves and in areas of natural beauty whose deterioration would lessen the region's appeal. Low long-term employment levels and limited business activity compared with other regions in the Czech Republic account for a below-average economic performance. Companies that cannot cope with a long-term drop in orders due to the crisis risk decline and loss of markets. It will be impossible to further develop R&D-based activities without closer links between institutions of knowledge and the applied sector: hence the need to continue bolstering the innovation system in the region and to reverse the adverse trend in funding public R&D.
2) Do these challenges differ from those being faced in 2010 (when the Europe 2020 strategy was launched)? If yes, in what respect?
Please make a distinction between structural problems and problems resulting from the impact of the economic and financial crisis.
The region's defining features remain the same as in past years. However, the impact of the crisis is taking its toll on the business of industries in the region.
3)How are your regional/local policies addressing these challenges?
How are your regional/local policies addressing these challenges? Please make clear whether you are (i) working on the basis of a local/regional industrial strategy; (ii) providing direct support to firms and networks/clusters; (iii) encouraging stronger relationships between firms, universities, public and private research institutions; (iv) improving the business environment, including through administrative simplification; (v) undertaking a proactive industrial policy, focusing on certain activities or sectors; or a mix of these actions.
Please provide examples (or at least web references[3]).
Moravian Silesian Region's regional strategy documents include, in particular, the Moravian Silesian Region Development Strategy 2009–2020 and the Regional Innovation Strategy 2010–2020. These are based on the Regional Development Strategy 2007–2013 and also take account of the core instrument of land-use planning, the Regional Development Policy. The region implements the Moravian Silesian Employment Pact, which reacts swiftly to changes in the labour market.
The region's aim with its development strategy is to foster the competitiveness of the regionally-based economy. The success of economic activity located in the region in the face of worldwide competition is crucial to the prosperity of the urban populations. A high, sustainable and increasing level of competitiveness translates into economic growth and more resources available to companies and the population and for the region's further development. While low costs may provide temporary success, it is a strategy that cannot be sustained over the long term. The challenge for Moravian Silesian Region is to host more activities whose competitiveness does not rest on mineral resources or on low costs. In achieving these broad strategic goals, Moravian Silesian Region looks for those key projects and activities that support major structural changes in companies and the public sector designed to focus a greater share of science and research expenditure on final outcomes and innovative activities that boost the chances of retaining and reinforcing a competitive edge in worldwide competition. A whole raft of such instruments is in use around the world and in the Czech Republic, from the support of sector-based cooperation groupings, through intermediate bodies responsible for managing links and relations between institutions of knowledge and companies / generating demand for innovations, incubators of innovative companies, technology transfer centres at universities, regional agencies for supporting foreign investment, support for region-specific exports, and so on. The goals in this broad strategy are about 1) creating the kind of modern service infrastructure and products that result in better import and export performance by firms doing business in the region, and 2) attracting new high added value activities.
This global strategic goal has the following specific strategic objectives (SSO):
SSO 1.1 – Ensuring coordinated and systemic support for research, development and innovation in Moravian Silesian Region
SSO 1.2 – Improving the export performance of SMEs and bolstering their participation in global value chains.
SSO 1.3 – Support for business start-ups (SMEs, including the self-employed and young entrepreneurs)
SSO 1.4 – Attracting investors to the region for (not only) high-value-added activities.
BOX 1 – An Industrial Policy for the Globalisation Era
The Europe 2020 flagship initiative An integrated industrial policy for the globalisation era, adopted by the European Commission on 28 October 2010, sets out a strategy that aims to boost growth and jobs by maintaining and supporting a strong, diversified and competitive industrial base in Europe, offering well-paid jobs while becoming more resource-efficient[4]. The flagship initiative highlights ten key actions for European industrial competitiveness: They are:

"competitiveness proofing" i.e. analysis of the impact on competitiveness of all policy proposals;
"fitness checks" of existing legislation aimed at reducing the cumulative effects of legislation in order to cut costs for businesses in Europe;
making it easier for SMEs to access credit and facilitating their internationalisation;
a strategy to strengthen European standardisation;
more efficient European transport, energy and communication infrastructure and services to serve European industry;
a new strategy on raw materials creating the right framework conditions for sustainable supply and management of domestic primary raw materials;
addressing sector-specific innovation performance with specific actions, in such areas as advanced manufacturing technologies, construction, bio-fuels and road and rail transport, particularly with a view to improving resource efficiency;
actions to improve framework conditions and support innovation in energy-intensive industries;
a space industrial policy creating a solid industrial base and covering the whole supply chain;
reporting on Europe's and Member States' competitiveness, industrial policies and performance on an annual basis.

These actions are implemented through more than 70 measures, whose state of play can be found on DG Enterprise and Industry's website[5].
You can find more information on An industrial policy for the globalisation era, seen from the point of view of local and regional authorities, in the Committee of the Regions' publication Delivering on the Europe 2020 Strategy. Handbook for Local and Regional Authorities[6]). General information on Europe 2020 can be found on the strategy's official website[7].

How is the Europe 2020 flagship initiative An industrial Policy for the Globalisation Era relevant to your city or region?

4)With respect to industrial policy, how would you evaluate the support your city/region has received from EU policies so far? Was it sufficient in view of the challenges you are facing in this area? As concerns EU-financed investments, in which area has more added value been created (e.g. infrastructure, skills, innovation, etc.)?
Please answer with reference to the various existing strands of EU policy (Europe 2020 flagship initiative "An industrial policy in the globalisation era", Structural Funds, 7th Framework Programme, Competitiveness and Innovation Programme, etc).
Please comment both on the policy tools used and on funding.
The main EU fund instrument for supporting the region's development is the Regional Cooperation Programme, whose instruments take account of regional specificities and have been used for the areas of regional infrastructure and accessibility, support for the region's prosperity, and urban and rural development. The JESSICA revolving fund has been launched under this programme and has supported projects included in the integrated urban development policies (IPRM – Integrovaný plán rozvoje měst).
5)The Europe 2020 flagship initiative An integrated industrial policy for the globalisation era (see Box 1 above), as reviewed by the Commission Communication A stronger European industry for growth and economic recovery of 10 October 2012, sets out a "renewed industrial policy"[8] based on the four pillars presented in Box 2 below.
Which of these pillars are more relevant to your specific local/regional situation?
Given that the main priorities of Moravian Silesian Region are increased competitiveness, support for innovation and boosting employment and social cohesion, all of these pillars are relevant to its development.
BOX 2 - An industrial policy for the globalisation era: 2012 update
The flagship initiative on industrial policy, as modified by the Communication of 10 October 2012, places more emphasis on short-term, growth-enhancing measures resulting from the economic crisis and its impact on EU industry. The flagship initiative is based on an extensive consultation of stakeholders carried out in the first semester of 2012, which highlighted the impact of the crisis in terms of job losses, the decline of industrial production and very low business confidence. Those short-term problems go hand in hand with EU industry's structural competitiveness problems. The European Commission's response is based on these four “pillars of the reinforced industrial policy”, to be addressed through partnership involving the EU, its Member States and industry: These are:
 Investments in innovation, with a focus on six priority areas with great potential (advanced manufacturing technologies for clean production; key enabling technologies; bio-based products; sustainable industrial and construction policy and raw materials; clean vehicles and vessels; smart grids).
 Better market conditions, both in the internal market, with special reference to goods, entrepreneurship and the protection of intellectual property rights, and in international markets.
 Access to finance and capitals, through better mobilising and targeting of public resources, including from the EIB, and by unlocking private funds.
 Human capital and skills, to promote job creation and better anticipation of, and investments in, the skills needed to promote industry's competitiveness[9].


Are your country's policies relevant to your city or region?

6)To help meet these objectives, your country has set its own targets, which you can find at Are your country's targets appropriate to your local (regional) situation?
Please explain, bearing in mind that "An industrial policy for the globalisation era" can potentially contribute to at least the following Europe 2020 targets:
 in a quite direct manner: 75% of the 20-64 year-olds to be employed; 3% of the EU's GDP to be invested in research and innovation (public and private investment);
 in an indirect manner: 20% less greenhouse gas emissions than in 1990; 20% of energy from renewables; 20% increase in energy efficiency.
National documents reflect the needs of the Czech Republic as a whole and also match the priorities of each region.
7)Do you think that the industrial competitiveness policies set in your country's current (2012) National Reform Programme[10] meet the needs of your city or region?
If not, how would you change your National Reform Programme next year?
The National Reform Programme corresponds to the principal needs and priorities of Moravian Silesian Region when it comes to competitiveness.
8)Which measures, in the field of industrial and competitiveness policy could be more helpful in the short term?
The regional innovation strategy is designed in line with ex-ante conditionality – S3 strategies. The region's development should focus on its competitive advantage and initiatives should be targeted at tangible areas in which the region has a tradition and which are specified in its strategy documents.

Managing and funding issues

9)Is industrial competitiveness policy in your region/city adequately funded? Apart from EU funding (which you described in reply to question 4) to what extent did you have recourse to other sources (e.g., PPPs, financial engineering)? Do you think you will have enough funds to run your policy programs in this field in the future?
Moravia Silesian Region uses the JESSICA financial instrument. It anticipates making greater use of financial engineering instruments in the future.
10)What kind of cooperation/coordination takes place between your region/city and the national and EU levels in the fields of industrial competitiveness policy?
Do you see any room for even stronger cooperation between different tiers of government in this field? If so, please explain.
The region works with the relevant ministries (trade and industry, for example). One outcome of this is the Inostart programme financed from Swiss funds and geared to supporting innovative business.
11)Are the forthcoming Partnership Agreements/Contracts (under the new 2014-2020 cohesion policy) an opportunity for better coordination between different tiers of government in the field of industrial policy? If so, why? And what could be the role of the different stakeholders (other levels of government and other stakeholders)?
Yes, the scope of the partnership agreement matches the priorities of the region and will serve as a support instrument for action in the next EU programming period.
12)Please add any further comments you might wish to make on the matters dealt with in this questionnaire.
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SHARE YOUR GOOD PRACTICE
With a view to the CoR conference to be held on 10 April 2013 and the exhibition of good practices in the fields covered by An industrial policy for the globalization era, you might wish to submit an example of good practice. To do so, please complete the form available on our website:

/ JOIN THE EUROPE 2020 MONITORING PLATFORM
To help convey the voice of EU cities and regions in the implementation of Europe 2020 at EU level and in your country, join us. For details on how, see:

THANK YOU FOR YOUR COOPERATION!

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[2] Privacy Statement: The follow-up to your contribution requires that your personal data (name, contact details, etc.) be processed in a file. All the answers to the questions are voluntary. Your replies will be kept for a period of 5 years after the receipt of your questionnaire. Should you require any further information or wish to exercise your rights under Regulation (EC) No 45/2001 (e.g. to access, rectify or delete your data), please contact the data controller at . If necessary, you may also contact the CoR Data Protection Officer (). You have the right of recourse to the European Data Protection Supervisor at any time ( Please note that the questionnaire with your contribution and your contact details will be published online. Your questionnaire may be transmitted to CoR rapporteurs and other EU institutions for information. Should you not agree to this, please inform us accordingly.

[3] You may also submit your good practice to the CoR online database on Europe 2020 policy cases:

[4] More information at:

[5]

[6] The Handbook can be downloaded from:

[7]

[8]

[9] This pillar is addressed by another CoR survey (deadline: 21 January 2013) available on the following website:

[10] Your country's current National Reform Programme can be found here: