French competitiveness clusters: a model for public-private partnership?
Europe needs more public-private research based initiatives if it is to remain competitive globally. This was the message unequivocally delivered by many of those participating in the European Research and Innovation Exhibition in Paris, which took place from 8 to 11 June. For some time now, pubic-private partnerships have been seen as a basis for addressing those areas of the European economy where critical mass is required for the development of innovative 'leading markets'. In 2005, the European Commission relaunched the Lisbon Strategy, calling for, among other things, an increase in investment in research and development (R&D) by industry and the lifting of barriers obstructing public-private partnerships. But what are the obstacles hindering effective relationships between the public and private sectors? 'The main reason is a cultural one,' Jean Audouze, Director of the exhibition's scientific committee, told CORDIS News. 'It is not in the mindset of many public research laboratories to go and meet with industry. They feel that they have to do basic research and that's it.' The situation is different in the US, where public laboratories have a long-established culture of working closely with the private sector, he added. On 7 June, Mr Audouze led a debate with a panel of experts who explored the subject further. Among them was Philippe Garderet of AREVA, a French nuclear fuel company, who spoke of the need for industry to also change its perspective and be ready to work with public research institutes. 'Even if industry decides to undertake its own research, if it is serious about being innovative and getting ahead, it also needs for research in the public domain to be of sufficient quality,' said Mr Garderet. 'Because it is in the public domain that it will find new knowledge that perhaps will be useful to it in the long term.' Yves Bamberger, Director of Research and Development at EDF, France's electricity group and another expert on the panel, agreed. Over the last 20 years, he has seen the development of several partnerships between public and private actors, most notably those between his company and France's Atomic Energy Commission (CEA). 'These partnerships have been very effective because each partner brought their own competencies, which were complimentary to one another,' he said. 'However, if industry is to create closer links with public research institutes, the public domain itself must be stable and easily accessible to industry in the long term because we all know developing contacts takes time,' noted Mr Bamberger. 'It also should focus on joining forces in areas of research where it can excel the most.' Mr Bambergerger referred to recent initiatives undertaken by the French government to build critical mass and excellence in research and innovation. Most notable among them is the creation in 2005 of 66 competitiveness clusters. These are regionally-based networks involving both public and private actors which focus on the development of technologies and industrial activities in which France is specialised or has proven potential. With an overall budget of EUR 1.5 billion over a period of three years, the clusters will seek to raise the competitive profile of French industry. In the region of Ile De France alone, a total of five poles are already in place, working in areas such as complex software and systems, high technologies for health and medicine, multimedia, and automotive and collective transport and environment. Among them is the Town and Mobility cluster, which aims to improve the long-term sustainability of the region's housing and its citizens' mobility, focusing on areas such as energy consumption, noise pollution, water, and air quality. While it is too early to talk about tangible results, with the cluster only getting off the ground at the beginning of 2006, many in the region see it as a successful example of public-private partnership, bringing together as it does a very diverse set of actors. They include global industrial groups such as the Suez, an industrial services groups, and PSA Peugeot Citroen; the global car manufacturing company; the region's most reputable higher level research and engineering institutes; as well as a whole host of small-and medium enterprises and the region's public authorities. 'The challenge for us was to bring together the largest possible number of actors from two opposing worlds: that of industry, which is primarily interested in applied research, and the public sector which continues to concentrate on basic research,' Daniel Royer, Director General of the Town and Mobility, told CORDIS News. This was achieved, said Mr Royer, thanks in part to some of the financial incentives which the government put in place to support the creation of the clusters. These include covering the costs of the public sector partners and up to 35 per cent of the costs of the private sector partners in any of the R&D projects proposed. Businesses participating would also benefit from corporate tax exemptions and lower social security charges. Furthermore, under the scheme, clusters would also receive funding towards putting in place the administration and infrastructure of the cluster, such as new buildings for partners and ultra broadband Internet access. The successful collaboration is also due in part to the 'local' nature of the clusters. 'Regions are best placed to provide a continuum for innovation, offering the perfect environment for continual dialogue, which is necessary between the actors involved in the process,' said Marc Lipinski, Vice-President of the Ille De France Region, during a presentation of the clusters in his region. 'This of course does not stop dialogue happening elsewhere such as at a European level.' This example of successful public-private partnership has not gone unnoticed by the European Commission. 'The Commission is following the development of these clusters with great interest and encourages the development of all initiatives which encourage innovation and growth,' said Emmanuelle Maincent, Policy Officer at DG Enterprise and Industry, noting that a number of other Member States, such as Hungary and Lithuania, were developing similar strategies to the French model.
Countries
France