Policy Area Innovation

Macro-regional challenge-driven innovation policies and actions aim at fostering disruptive, breakthrough and market-shaping innovations to respond to the 21st century social, environmental, and economic grand challenges in the Baltic Sea Region(e.g. climate change, resource efficiency, demographic change, pandemics, rapid urbanisation, healthy living and aging, clean energy, inclusive societies, sustainable food and feed production and various environmental challenges of the Baltic Sea). Building on the strong background and experience on challenge-based innovation cooperation, and leveraging and scaling up the successes and best practices, stronger innovation ecosystems can be created and common BSR challenges tackled by developing shared solutions and related new pan-Baltic value chains. The aim is to turn challenges into opportunities for sustainable growth in Baltic Sea Region.

The COVID-19 outbreak in spring 2020 and its economic consequences in Baltic Sea Region also underline the need for EUSBSR level preparation of coordinated macro-regional recovery policies and actions on business and innovation, not just in the aftermath of the current crisis, but also in the longer term.

Smart specialisation is a key policy framework for challenge-driven innovation. The ‘next wave’ of the EU’s policy framework for Smart Specialisation is widely expected to focus on interregional collaboration through aligning regional S3 priorities and innovation investment efforts, and to help regions (and their industries) to draw on their collective strengths and common challenges to carve out new innovation focused value chain opportunities.

Digital transformation is a societal change. Emerging digital technologies such as AI, VR/AR, blockchain, robotics and Internet of Things (IoT) are key tools to tackle societal challenges, facilitate new businesses, innovations, services and more sustainable, usable and vital living environments and infrastructures, and develop BSR innovation (e.g. smart city initiatives) and startup ecosystems. ‘Industry 4.0’ relying on big data, IoT, AI and autonomous machines is a key challenge for SMEs even in Baltic Sea Region. It can be tackled with transnational sharing of best practice and knowledge. Developing common standards for interoperable public and private solutions (e.g. e-identity) and harmonising of data will support transfer of solutions across Baltic Sea Region, new market opportunities and globally more competitive digital ecosystems. This will put Baltic Sea regionat the vanguard of digital territories in Europe and worldwide. PA INNO gives businesses and public service providers opportunities to analyze, evaluate, develop, co-create and test new ideas and services together. Policy Area Innovation also promotes knowledge sharing and institutional capacity building within digitalisation to facilitate digital transformation and bridge digital divides in Baltic Sea Region.

Smart Specialisation is a relevant policy framework to support digital innovation and transformation related Baltic Sea Region cooperation. Smart Specialisation can generate scaled up innovation efforts (e.g. on Digital Innovation Hubs), accelerate cross-regional value chains (e.g. on digital transfor

Ecosystems and platforms are emerging as key frameworks for economic and innovation activity also in BSR. Transnational platforms and change agents are needed to connect Baltic Sea Regioninnovation ecosystems and having access to public, research and business groups, to engage them in the collaborative process of co-creation to bridge the existing knowledge, skills and market access gaps for SMEs. Efficient transnational linkages and matching of end users, innovative firms and research partners for team co-creation, and access to other resources such as knowledge and prototyping is a critical success factor for co-creation scale up and growth. Transnational linkages allow organisations to tap into a larger base of ideas and technology, find complementary expertise and pool competencies in order to overcome barriers, such as lack of management resources and technological competencies. They can also open a broader geographic market for companies.
Objectives of this action: to scale up the use of co-creation among Baltic Sea Region SMEs through improving their capabilities and absorptive capacities to efficiently turn market demand driven ideas into innovations; to connect innovation ecosystems across BSR through developing and piloting systematic models and practices to engage Baltic Sea Region SMEs, researchers, test facilities and end users in co-creation activities; to enhance the adjustment of regional innovation voucher schemes to BSR-wide transnational co-creation activities; to facilitate the understanding and change of mindset among policy makers and SMEs to scale up practical co-creation activities in the Baltic Sea Region and; to promote transnational cooperation and SMEs access to RDI infra, and transnational exchange and joint development between Innovation Infrastructure Organisations and incubators.

S3 also serves as a suitable policy framework for co-creative innovation in Baltic Sea Region by offering a fertile testing ground for its regions to develop new and reinforce existing industry-led collaboration efforts. Transnational S3 activities can include e.g. joint innovation investments aiming at widening the pool of resources and knowledge bases or at accessing complementary assets (e.g. through interregional voucher schemes). Regions can also develop and improve existing regional policy instruments such as ERDF to supporting the co-specialisation approach to S3.