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Islands of Innovation 5 



Foreword 



Today Europe's challenge is to strive for effectiveness and efficiency in a globalised 
economy without forgetting its fundamental European values of solidarity and welfare. 
Innovation is a solution, since it is now well known that innovation is a central element 
of economic performance. Its growing importance makes it a core feature of the 
knowledge-based economy in addition to facilitating its development. 

The Lisbon summit in 2000 set the critical strategic goal that "the EU should, by 2010, 
become the most competitive and dynamic knowledge based economy in the world, 
capable of sustainable economic growth with more and better jobs and greater social 
cohesion". However Member States have been slow to respond to the rapid 
technological, economic and social change that we face as a society. As a result, the 
European Commission launched on 2005 a new partnership for "Jobs and Growth" to 
reinvigorate the Lisbon strategy. 

Following the success of the regional policy experiment of the regional programmes 
of innovative actions in the 2000-2006 programming period, the guiding principle of 
innovation is to be transferred both in the relevant operating programmes of the current 
and the forthcoming 2007-2013 programming period embedded in all three proposed 
objectives. 

This publication takes a closer look at the island communities' regional programmes 
of innovative actions. Built on the preliminary experiences of their implementation, it 
describes their programmes vis-a-vis their socio-economic environment. 

Most of the people in the developed world are tourists in one way or another, either 
for business or leisure. It is this fact that makes the tourist industry one of the world's 
biggest, where Europe is the leading player. However, despite the big potential customer 
base, the competition among service provider is constantly increasing. Developing new 
types of holidays, new facilities and more efficient ways to manage them are some of 
the many facets of innovation in this most service-oriented of industries. The tourism 
industry is one of Europe's leading employers, and in particular for many island regions 
that are highly dependent of tourists' spending, innovation could make the difference 
between growth and stagnation. 

Building on its unique physical resources and intangible assets, each island region 
needs to promote its "exclusive myth". I believe that this publication will help policy 
makers as well as regional innovation policy practitioners to find elements of knowledge 
and best practices in constructing their myths. 



Charalambos Kokkinos 
General Secretary of the Region of South Aegean 



6 Islands of Innovation 



Table of Contents 



Foreword 5 

Editorial 9 

Invited article on innovation in tourism 

From theory to implementation 10 



Chapter 1 

the innovation laboratories 

1.1 PRAI island regions per country 15 

1.2 PRAI island regions structural handicaps 16 

1.3 PRAI island regions during the 2000-2006 programming period 17 

1.4 New Island Regions: From EU-15 to EU-25 17 

1.5 Impact and Added-value of the Island PRAIs 18 



Chapter 2 

schematisation of the island PRAI island regions 19 

2.1 PRAI island regions proposals per country 21 

2.2 PRAI island regions proposals per strategic theme 23 

2.3 PRAI island regions participation to the Innovative Actions networks 24 

2.4 PRAI island regions participation to the Innovating Regions in Europe network 24 

2.5 PRAI Island regions participation to the Conference of Peripheral Maritime Regions of Europe 25 

2.6 PRAI island regions entries in the European Awards of Regional Innovation 25 

2.7 Participation of Island Regions in past Regional Innovation actions 26 

2.8 PRAI island regions statistics 27 



Islands of Innovation 7 



Annex 1 

THE PRAI ISLAND REGIONS REGIONAL PROGRAMMES OF INNOVATIVE ACTIONS 30 

Innovation in the Ionian Islands (31) 31 

North Aegean Innovative Actions & Support (NAIAS) 32 

Innovation for Sustainable Tourism and Services in the South Aegean (ISTOS) 33 

Canari@sDigital-Innova (CD-I) 34 

Crete Innovative region (CRINNO) 35 
Innovation aimed at diversification and sustainability of the Islas Baleares (INNOBAL XXI) 36 

comptoir de la nouvelle economie de guadeloupe 37 

Investir dans l'homme Reunionnais 38 

Innovazione-sicilia 39 

Driving Innovative Exploits for Sardinian Information Society (DIESIS) 40 

PRAI Acores 41 

PRAI Madeira 42 



Annex 2 

THE SOCIO-ECONOMICM PORTRAIT OF THE ISLAND REGIONS 44 

GR22 - Ionian Islands 45 

GR41 - North Aegean 47 

GR42 - South Aegean 49 

GR43 - Crete 51 

ES53 - Balearic Islands 54 

ES70 - Canary Islands 56 

FR83 - Corsica 58 

FR91 - Guadeloupe 60 

FR92 - Martinique 62 

FR94 - Reunion 63 

ITGi - Sicily 64 

ITG2 - Sardinia 65 

PT20 - Azores 67 

PT30 - Madeira 69 

FI20 - Aland Islands 72 



Annex 3 

GLOSSARY OF TERMS AND ABBREVIATIONS 74 



Annex 4 

CONTACTS, BIBLIOGRAPHY AND WEB RESOURCES 77 



Islands of Innovation 9 



Editorial 



'Regional policy is already making a substantial contribution to achieving the aims of the Lisbon 
strategy, especially in the area of research and innovation. The Ell's structural funds finance 
investments in research infrastructure and networks in regions where the potential for world- 
class research is there to be developed, while strengthening innovative capacity and technology 
transfer throughout the Union', stated Commissioner for Regional Policy, Danuta Hubner. 

The geographic location of the islands regions and their functions as natural boundaries 
between Europe and third countries makes them strategic territories for the EU. Islands 
represent an area of around 110.000 km(^ and are home to about 14 million people. Their 
structural handicaps, such as scarce resources and a small-scale market, makes their "periphery 
economy" more fragile than the bigger and better connected "mainland economies". 

Taking into account these problems, the Structural Funds encourage islands to adopt 
innovative technologies suited to their particularities. Developing in a sustainable way and 
integrating in the new information society economy without endangering their regional identity 
is a way of taking advantage of the islands' potential. 

In particular, the objectives of the Regional Programmes of Innovative Actions are to 
strengthen the regional knowledge and skills base in selected areas and to speed up 
exploitation of innovations. It is particularly important for the least-developed regions, such as, 
among others, the islands, that they have the chance to experiment in fields outside the norm 
of their structural funds programmes and develop greater co-operation and networking with 
more developed regions. 

The two features of these programmes that are particularly pleasing to the regions are: first 
the fact that the entire region is considered eligible for co-funding, in contrast to the detailed 
Objective 1 and Objective 2 zoning, and second the fact of giving a chance to the regions for 
the first ever time deal directly with the European Commission, thus building local 
administrative capacity. Both features helped the regions to better learn and grow sustainably 
in the knowledge based economy. 

This publication, entitled Islands of Innovation, highlights the regional programmes of 
innovative actions of the "PRAI island regions". The experiences of these island regions provide 
an example to others of how regions, remote and with less favourable conditions, could thrive. 

In conclusion we should restate the goals of the Community regional policy which is to 
protect the fragile nature of these ecosystems while at the same time empowering their 
inhabitants to live a prosperous and productive life carrying out their activities in the most 
effective way. 



Christos Bezirtzoglou 



io Islands of Innovation 



Invited Article on Innovation in Tourism 

From theory to implementation 

Innovation can be defined in a multiplicity of ways. The leading theoretician of 
innovation, Joseph Schumpeter (1883-1950), already had a broad vision of the concept, 
encompassing products, new production processes, new markets, new raw materials 
and new forms of organisation. 

For Schumpeter, the common thread between all these changes is that they involve 
"carrying out new combinations" which are qualitatively important and introduced by 
dynamic business leaders, or "entrepreneurs". 

Innovation and creativity are two very closely connected and "cooperating" terms. 
Creativity refers to the production of new ideas, new approaches and inventions, 
whereas innovation corresponds to the application of new and creative ideas and the 
implementation of inventions. From this it follows that people and organisations may be 
creators without being innovators. 

The importance of innovation was long underestimated in service activities. In contrast 
to the radical innovations vital to growth in manufacturing sectors, innovations in 
services and tourism were secondary and capital-scarce, and for this reason they were 
excluded from the scope of government interest and action. 

However, innovation is at the heart of any successful company's agenda as well as any 
economy as a whole, so it is very worthy of discussion on the role that innovation plays 
in securing competitiveness. 

Identifying the nature of innovation in tourism entails looking for features that are 
either shared with or distinct from those of innovations in other service industries, but 
it also entails comparisons with the more general models found in manufacturing. 

The "public good" nature of tourism innovation prompts SMEs in the sector to adopt 
a "free rider" attitude, particularly since much of the effort to make territories more 
attractive (destination marketing) is borne by public bodies. Many people do not 
understand the point of adopting co-operative types of behaviour, yet they are crucial 
to the effectiveness of the tourism cluster. 

Travel and tourism influence everyday lifestyles. They have left their mark on our 
modern leisure society. The biggest innovations in tourism occur at the level of 
applications. Basic innovations in the transport field opened up new horizons for 
tourism. The inventions of the railway, of the automobile and of the plane revolutionised 
the industry, rolling back distances and making travel affordable for many. 

These innovations in transportation have made the creation of tourism growth poles 
possible and have allowed the development of new markets. The same is true with New 
Information Technologies (NIT) which have been extensively used by the tourism 
industries at a relatively early stage; NIT have contributed to a badly needed increase 
in productivity. 



Islands of Innovation 11 



Innovations in the supply chain management and in promotion mechanisms are very 
important tools for tourism. 

In the large tourism industry firms, innovations are a matter of routine. They are no 
longer a question of a happy accident or a sudden stroke of genius. In general, 
innovations are programmed by the enterprise. In modern enterprises, innovation is a 
standard component of corporate decision-making at the level of resource allocation. To 
make sure that they will not be caught off guard by unexpected innovations, today's 
companies have made the innovation process part of everyday planning. 

However, innovation also has a macroeconomic aspect. It is closely connected to the 
economic welfare and competitiveness of economies, among which tourism 
destinations. 

In a rather competitive global environment destinations must find ways to produce 
and promote their uniqueness. The purpose is twofold: On the one hand is the attraction 
of tourism, with all the socioeconomic benefits that this may entail, while on the other 
in the safeguard and protection of the destination and resources on which tourism is 
based. 

ISTOS, the "Innovation for Sustainable Tourism and Services Project" is a public - 
private initiative inspired and implemented in South Aegean Region, one of the major 
tourism destinations of Greece. 

It constitutes a best practice collaboration between public and private entities for the 
promotion of innovation and sustainability in the tourism, and generally the service 
sector, providing tools and know-how for the effective planning and implementation of 
tourism on a long term basis. 



DlMITRIOS STAGOS 

Business Architects Consultancy S.A. 
President 



14 Islands of Innovation 



The offer of an ERDF Regional Programme of Innovative Actions (PRAI) 1 elicited a very 
positive response from the regions: by February 2005, 144 of the 156 eligible regions 
were participating including all regions of Austria, Belgium, Greece, Italy, Ireland, 
Netherlands, Portugal, Spain, Sweden, United Kingdom as well as Denmark and 
Luxembourg. 

The synergy between the three strategic themes (regional economies based on 
knowledge and technological innovation, e-EuropeRegio: the information society at the 
service of regional development & regional identity and sustainable development) has 
been well exploited by most regions that have opted to include a number of actions 
covering at least two of the three eligible themes. 

The regional programmes of innovative actions have succeeded in acting as catalysts 
giving the regions a chance to experiment with new actions to promote innovation. Most 
programmes have taken a comprehensive approach to innovation, designing new 
products, processes or services and in some cases, new forms of co-operation between 
the public and the private sectors. This has helped the regions develop a coherent 
approach to innovation and sustainable development in order to secure their long-term 
competitiveness. 

The programmes contain adventurous actions that otherwise might have been 
postponed or been ignored in the mainstream Structural Funds programmes in spite of 
their potentially strong impact on regional competitiveness. For the least-developed 
regions it has been particularly important to have the opportunity to experiment in the 
three strategic themes on offer which are traditionally under-funded by comparison with 
other types of needs such as those concerned with infrastructure. 

A further value of the innovative actions lies in the way these programmes have been 
designed and implemented directly by regional stakeholders working together in 
partnership. Successful regions understand how to link local and regional enterprises, 
universities, research institutions, associations, and public administration to collect the 
know-how and distribute it amongst individuals and business so that it can be 
transformed into new products, processes and services. 

Each region has been encouraged to find its own solutions, based on regional needs 
and potential, to fully incorporate innovation in its regional development planning. The 
regional programmes have been designed and managed directly by the regions without 
any national implication in the decision-making process. Regional governments have 
taken full responsibility for improving conditions crucial for their future competitiveness 
in cooperation with their local stakeholders. This has been done in partnership with the 
private sector which was involved in the drawing up and the implementation of the 
programmes. 



PROGRAMMES 
SUBMITTED 


PROGRAMMES 
APPROVED 


TOTAL ERDF 
INTERVENTION 


TOTAL AMOUNT FOR 
APPROVED PROGRAMMES 


TOTAL AMOUNT FROM 
PRIVATE SECTOR 


103 


81 


€206.000.000 


€393.000.000 


€59.000.000 


51 


45 


€109.000.000 


€204.000.000 


€25.000.000 


16 


10 


€31.000.000 


€65.000.000 


€7.000.000 


16 


9 


€23.000.000 


€41.000.000 


€6.000.000 


48 


29 


€55.000.000 


€112.000.000 


€19.000.000 





'Other less-often used acronyms are: RPIA and IAP. 



Islands of Innovation 15 



1.1 PRAI island regions per country 

Eligibility for the Regional Programmes of Innovative Actions as well as for the Objective 
1 areas is principally defined with reference to NUTS level 2 regions. In particular for 
the calculation for the 153 EU-15 eligible regions we have included the NUTS level 1 
regions for Belgium, Denmark, Germany and UK, while the remaining countries are 
calculated with their NUTS level 2 regions. 

An island, according to the five objective criteria of Eurostat, must: 

• have an area of at least one sq. km; 

• be at least one kilometre from the continent; 

• have a permanent resident population of at least 50 people; 

• have no permanent link with the continent; 

• not house an EU capital. 

In alignment with the above definition of islands areas as well as the definition of 
PRAI regions, only six out of the EU-15 Member States have "PRAI island regions" for a 
grand total of 15 regions. 

The PRAI island regions include six of the seven "outermost regions" 2 , notably the 
three out of the four French Overseas Departments (Guadeloupe, Martinique and 
Reunion), the Spanish Autonomous Community of the Canary Islands and the Portuguese 
Autonomous Regions of the Azores and Madeira. 

Despite the aim of ensuring that regions of comparable size all appear at the same NUTS 
level, each level still contains regions which differ greatly in terms of area, population, 
economic strength or administrative powers. This heterogeneity at Community level is 
often only the reflection of the situation existing at Member State level. 

The current nomenclature [Regulation (EC) No 1888/2005] laying down the rules for the NUTS 
EU-15 regional classification, including the PRAI Island regions, gives us the following table: 



EU-15 


NUTS LEVEL 1 


NUTS LEVEL 2 


NUTS LEVEL 3 


PRAI ISLAND REGIONS 




3 


11 


43 


- 




1 


1 


15 


- 




16 


40 


442 


- 




4 


13 


51 


4 




7 


18 


52 


2 


SPAIN 

France 


9 


26 


100 


4 





11 




20 




103 


2 




1 




1 




1 


- 




4 




12 




31 


- 




3 




9 




35 


- 




3 




7 




30 


2 




2 




6 




20 


1 




1 




7 




21 


- 








35 














208 











2 These regions are generally referred to by their French acronym 'RUPs' (Regions Ultra Peripheriques). 



16 Islands of Innovation 



In example, in terms of populations (2000 data) at NUTS 2 level, the Tie de France and 
Lombardia have 11 and 9 million inhabitants respectively, whereas there are 13 regions 
(most of them peripheral regions or islands) with fewer than 300.000: Aland, 
Burgenland, Guyane, Ceuta, Melilla, Valle d'Aosta/Vallee d'Aoste, Belgian Luxembourg, La 
Rioja, Corse, Azores, Madeira and two Greek regions (Ionia Nisia and Voreio Aigaio). 

In administrative terms, the degree of autonomy of the PRAI island regions varies from 
a great degree of autonomy (i.e. Aland Islands, Azores, Madeira, Canary islands) to the 
other extreme of having no special administrative powers (i.e. Ionian Islands, North 
Aegean, Crete). 



1.2 PRAI island regions structural handicaps 

In addition to the specific problems caused by their peripheral location, the fact that a 
PRAI island region has more than one island - archipelago - and/or is often mountainous 
constitutes a permanent structural handicap. 

The usual structural deficiencies linked with PRAI island regions are: 

• Small Island Size equals small local markets, inefficient local production capabilities, 
seasonality problems for mono-sector industries and stagnating local economies 

• Isolated Islands equals limited contacts with central governments, problematic access 
to export markets and transportation problems. 

• Scarce Human & Natural Resources equals limited access to human / social capital, 
demographic and environmental problems 



PRAI ISLAND REGION 



Ionian Islands 



OUTERMOST 
REGION 



ARCHIPELAGO 



MOUNTAIN 
AREAS 



NUMBER 
OF ISLANDS 



GEOGRAPHIC LOCATION 



Mediterranean sea 



North Aegean 



Mediterranean sea 



South Aegean 



42 



Mediterranean sea 



Crete 

Canary Islands 
Balearic Islands 
Corsica 



Mediterranean 
Atlantic ocean 
Mediterranean 
Mediterranean 



sea 

SEA 



Guadeloupe 



Caribbean sea 



Martinique 



Caribbean sea 



Reunion 

Sardinia 
Azores 






Indian ocean 

DITERRANEAN 

Mediterranean 
Atlantic ocean 



sea 



- 




Madeira 
Aland Islands 



Atlantic ocean 
Baltic sea 




Islands of Innovation 17 



1.3 PRAI island regions during the 2000-2006 
programming period 

During the current programming period thirteen out of the fifteen regions are classified 
as Objective 1 areas, which show the vulnerabilities of the PRAI islands regions mostly 
caused due to their geographical position in the periphery of Europe. 



Kriti (Crete) 



Ellada (Greece) 

Objective 1 



Ionia Nisia (Ionian Islands) 



Objective 1 



Voreio Aigaio (North Aegean) 



Objective 1 



Notio Aigaio (South Aegean) 




Islas Canarias (Canary Islands) 



Objective 1 
Espana (Spain] 

Objective 1 




Islas Baleares (Balearic Islands) 



Partially Objective 2 




jUADELOUPE 




Partially Phasing-out Objective 2 (till 31/12/2005) 
France 
Objective 1 



Martinique 



Objective 1 



Reunion 



Objective 1 



Partially Phasing-out Objective 1 (till 31/12/2006) 
Italia (Italy) 

Objective 1 




1.4 New Island Regions: From EU-15 to EU-25 

Following the enlargement of May 2004, 10 new Member States have joined the 
European Union including 2 island countries, Cyprus and Malta. However, according to 
the guidelines, these regions cannot apply for a PRAI. 



It is important to note that both island countries have invested in regional innovation: 

• Cyprus in the period 2001-2004 with the RISC 3 (Regional Innovation Strategy in Cyprus) 
programme 

• Malta with the MARIS 4 (The MAlta Regional Innovation Strategy) project 

3 For more information: www.talos-rtd.com/nqcontent.cfm?a_id=i49 

4 For more information: www.maltaenterprise.com/page.asp?p=93o6&l=i 



18 Islands of Innovation 



1.5 Impact and Added-value of the PRAI Island regions 

The PRAI Island regions represent a small amount of the bigger structural and cohesion 
funds package to their respective countries, but several studies showed that some of 
the cumulative GDP growth could be attributed to EU funds, including the PRAIs. 

In addition to economic growth, PRAI Island regions have allowed the regional 
governments to establish regional policy priorities taking into account the wider Member 
State and EU strategic priorities. These include such high added value areas as 
information society, R&D, business support services, environmental awareness, human 
and social capital development. 

Finally the PRAI Island regions helped the enhancement of a regional innovation 
culture, the establishment of new partnerships inside and outside the regions as well as 
providing spillover benefits for the regional public administrations for the introduction of 
modern management and auditing methods. 

Some of the projects financed within the programmes are indicated below: 

• Technological Innovation clustering, incubators, spin-off, support to research and 
technological projects, new technological services to business; 

• Information Society support for e-Business (e-commerce, web services, knowledge 
management tools), for e-Government (services and applications for local administration 
and citizens) and for e-Learning solutions (broadband tele-working, distance training); 

• Sustainable Development development of new applications for energy and waste 
management, sustainable tourism and innovative technologies for enterprises in the 
environmental sector. 

Of particular interest for the island communities are actions linked to the tourism 
sector. Tourism is a cross-cutting sector, involving a big diversity of services and 
professions and has a profound impact on the social, cultural and economic life of all 
Europeans. Almost everybody in the developed world is a tourist at one point or 
another, yet the huge customer base in no way reduces the competition among service 
providers for their custom. Developing new types of holidays, new facilities and more 
efficient ways to manage them are some of the many facets of innovation in this most 
service-oriented of industries. 

The tourism industry is one of Europe's leading employers, and for many regions 
highly dependent on tourists' spending, innovation is the difference between growth and 
stagnation. Tourism generates approximately 9 million jobs in EU-25, while the European 
tourism industry crates more than 4% of GDP with about 2 million enterprises employing 
about 4% of the total labour force. 

Finally it is interesting to note that only one PRAI island region is among the top 5 
EU-25 regions for tourism, in terms of nights spent in hotels in 2003. 



RANK 


REGION 




NIGHTS SPENT 


SHARE IN % OF EU-25 




ESTE (ES) 




152,422 


7.3 




Nord Est (IT) 




139,784 


6.7 




Canarias (ES) 




83,764 


4.0 




Centro (IT) 




79,702 


3.8 


5 


Bayern (DE) 











20 Islands of Innovation 



COMMISSION EUROPEENNE 

direction generale European Union 

politique regionale ERDF: Regional Programmes of Innovative Actions 2001-2006 




DGREGIO-SIG 




EuroGeographics Association pour les limite 

500 



LEGEND (^ 6800 K€: (ERDF + region) total investment 

I Regional economies based on knowledge and technological innovation 

e-EuropeRegio: the information society at the service of regional development 
I Regional identity and sustainable development 



EU25, Regions = NUTS2 ; BE, DE, UK = NUTSi 

Excluding accompanying measures and technical assistance, NUTS2 = Trentino-Alto Adige (Bolzano-Bozen [1 prg.] + Trento[i prg.]) 

& Ceuta y Melilla (Ceuta [1 prg.] + Melilla [1 prg.]) & Ceuta y Melilla (Ceuta [1 prg.] + Melilla [1 prg.]) 

Source : DG-Regio (31/05/2004) 




Islands of Innovation 21 



2.1 PRAI Island regions proposals per country 

Following the publication of the COM (2001) 60-005 Communication from the Commission 
to the Member States all PRAI Island regions managed to apply for at least one Regional 
Programme of Innovative Actions. 



YEAR 


No OF EU-15 REGIONS 
SUBMITTING A PRAI 


No OF ISLAND REGIONS 
SUBMITTING A PRAI 


No OF EU-15 REGIONS 
OBTAINING A PRAI 


No OF PRAI ISLAND 
REGIONS OBTAINING A PRAI 


2001 
2002 
2003 
2004 
inns. 


103 




10 


81 


5 


51 




6 


45 


6 


16 




2 


10 


2 


16 (10) 




- 


9(6) 


- 


48 (43) 




4(3) 


28 (23) 


3(2) 





It should be noted that during the last two periods (2004-2005), the regions who had 
successfully finish their first programme could apply for a second time (data concerning 
second applications are shown inside parenthesis). 

A representation of the PRAI Island regions efforts, codified by country as of December 
2005, is shown in the following diagrams: 

2005 2001 

Biodiversity resources for innovative 



Business development (BIOBUS) 



North Aegean 
nnovative Actions 
& Support 
(NAIAS) 



2002 

Crete Innovative region 
(CRINNO) 



e accesible-health 




I accepted 



I rejected 



I non eligible 



22 Islands of Innovation 



2001 

Job-Net Creation 



Driving innovative 
Exploits for Sardinian 
Information Society 
(DIESIS) 



Triggering the Economic 
Resources of Regional Areas 
in the new Scenario 
of "glocal" identity 
(TERRAS) 




2001 

Canari@sDigital-lnnova 
(CD-I) 



Innovation aimed 
fri at diversification 
and sustainability 
of the Islas Baleares 
(INNOBAL-XXI) 



Sistema de Apoyo 
a la Innovacion Turistica 
en las llles Balears 
(SAITUR) 



| accepted 



| rejected 



| non eligible 



Islands of Innovation 23 



2002 



Comptoirde la 
nouvelle economie 
de Guadeloupe 

2001 



2003 



Comptoirde la 
nouvelle economie 



Programme Regional 
d' Actions Innovatrices 
de la Region Corse 



COCOM 
(SAMKOM) 




2.2 PRAI Island regions proposals per strategic theme 



PRAI ISLAND REGION 



TECHNOLOGICAL 
INNOVATION 



INFORMATION 
SOCIETY 



SUSTAINABLE 
DEVELOPMENT 



Ionian Islands 



North Aegean 



South Aegean 




The above table includes all PRAI Island regions that have completed and/or are 
currently implementing a PRAI by May 2005. 



24 Islands of Innovation 



2.3 PRAI Island regions participation 
to the Innovative Actions networks 



In addition to the regional programmes of innovative actions, three networks, one per 
strategic theme, were launched to foster co-operation between regions and to share 
experiences and good practices: 

• ERIK (European Regions Knowledge-based Innovation Network) for technological 
innovation, which is led by Toscana and Emilia-Romagna and includes 13 members and 
23 associate members; 

• ERIK+ (European Regions Knowledge-based Innovation Network-Plus) for technological 
innovation, which is led by Toscana and Emilia-Romagna and includes 13 members and 
27 associate members (ERIK successor); 

• IANIS (Innovative Actions Network for the Information Society) for Information society 
at the service of regional development, which is led by Sachsen and includes 28 
regions; 

• IANIS+ (Innovative Actions Network for the Information Society - Plus) for Information 
society at the service of regional development, which is led by Sachsen and includes 
39 regions (IANIS successor); 

• Sustainable Regions for Regional Identity and Sustainable Development, which is led 
by Wales and includes 11 regions. 

The PRAI island regions, members of Innovative Actions networks, are: 



JHErljc 


2004-5 


Ionian Islands, Crete, Balearic Islands 




2006-7 


Ionian Islands, Crete, Balearic Islands 


9- 


2004-5 


Canary Islands, Reunion, Madeira 


€»* 


2006-7 


Reunion, Sardinia, Madeira 


i": \r^l * r ' T r '" : £3Efc 


2004-5 





*uu3rt*A T 




2.4 PRAI Island regions participation to the 
Innovating Regions in Europe network 

The network of Innovating Regions in Europe 5 (IRE) is a joint platform for collaboration 
and exchange of experiences in the development of regional innovation policies and 
schemes. 

The network aims to enable regions to access new tools and schemes for innovation 
promotion and to create an inter-regional learning process. It also seeks to put 
innovation at the top of the regional policy agenda. It is open to all European regions 
that can demonstrate good practice in the promotion of innovation. 

The PRAI island regions members of the IRE network are North Aegean & Crete 
(Greece), Madeira (Portugal), Sicilia (Italy) and Balearic Islands & Canary Islands (Spain), 
a total of 6 out of the 15 regions. 

The two island countries of Cyprus and Malta are also members of IRE. 



5 For more information: www.innovating-regions.org 



Islands of Innovation 25 




2.5 PRAI Island regions participation to the Conference of 
Peripheral Maritime Regions of Europe 

The Conference of Peripheral Maritime Regions (CPMR) brings together 154 regions from 
26 countries representing more than 170 million people. 

Being located along Europe's shoreline brings both advantages and specific difficulties. ^ 
The CPMR is working to promote more balanced development across the whole of Europe 
(territorial cohesion), and increased regional competitiveness through its action on policies 
which have a significant territorial impact: Transport, R&D, employment and training, 
competitiveness (balanced competitiveness). In parallel, it is striving to strengthen the 
participation of the regions in the design and delivery of EU policies (governance). 

More broadly, it is working to enhance Europe's maritime dimension (maritime issues) 
and to promote sustainable development, giving particular attention to energy policies 
on the one hand, and agricultural and rural policies on the other hand (sustainable 
development). In the context of globalisation, the CPMR is helping to position the 
peripheral maritime regions with regard to their neighbouring areas and on the 
international stage (external cooperation and neighbourhood policy). 

The Geographical Commissions aim to ensure that work is as decentralised and as 
close to the reality of each sea basin as possible. There are six in all: Atlantic Arc, Balkan 
and Black Sea, Islands, Intermediterranean, Baltic Sea and North Sea. 

All 15 PRAI island regions as well as the two island countries of Cyprus and Malta are 
members of CPMR. 



2.6 PRAI Island regions entries in the European Awards 
of Regional Innovation 

During 2004, the Commission organised a competition 6 to identify the best, most 
innovative projects. It invited the regional authorities to recommend projects which were 
judged by a panel of high-level experts, presidented by Mr. Antonio Guterres (U.N. High 
Commissioner for Refugees and ex-prime minister of Portugal). 

71 eligible entries were received from all EU-15 countries. 5 out of 15 PRAI Island regions 
participated in that competition. Their respective entries were: 

Canary Islands (Spain) in the Sustainable Development theme with the project entitled 

Gomer@Digital www.parcan.es/iniciativa.py?numero=5L/PO/C-0384 

Balearic Islands (Spain) in the Technological Innovation theme with the project entitled 

AVANTHOTEL: Support for Innovation in the Hotel trade 

www.ibit.org/home/proyectos/proyecto.php?id=i96 

Guadeloupe (France) in the Information Society theme with the project entitled 

Plateforme de commerce electronique www.planete-guadeloupe.com/ 

Reunion (France) in the Information Society theme with the project entitled PASARTIC: 

Preparation for Access to Further Education and Professional Qualification in Visual Arts 

and Information Technology http://tic.regionreunion.com/article.php37id_articles84 

Azores (Portugal) in the Sustainable Development theme with the project entitled H2RE: 

Bases for Research and Development in Renewable Hydrogen in Azores (ID-H2RE) and 

Interactive Centre for Renewable Energy and Renewable Hydrogen Technologies in Azores 

(Ptec-H2RE) 

www.drepa.raa.pt/prai-acores/lamteci.html, www.drepa.raa.pt/prai-ac0res/lamtec2.html 

6 For more information: http://europa.eu.int/comm/regional_policy/innovation/concours_en.htm 



26 Islands of Innovation 



The i st European Awards for Regional Innovation were handed at a ceremony during the 
54 th plenary session of the Committee of the Regions, held in Brussels in April 2004. The 
nine awarded regions (three per strategic theme) come from: 

• Technological Innovation 

1. Saarland (Germany) 

2. Centro (Portugal) 

3. Sachsen-Anhalt (Germany) 

• Information Society 

1. Extremadura (Spain) 

2. Overijssel (The Netherlands) 

3. Schleswig-Holstein (Germany) 

• Sustainable Development 

1. Eastern Styria (Austria) 

2. Ostra-Mellansverige (Sweden) 

3. Limousin (France) 



2.7 Participation of PRAI Island regions in past Regional 
Innovation actions 

Some of the PRAI Island regions were pioneers in the early nineties when they start working 
with regional innovation projects (such as the Article 10 family of projects from DG Regional 
Policy or the RITTS project from DG Enterprise) as shown in the following table. 



Country 


Region 








PROJECTS 
















DG Regional Policy: Art 


10 






DG 
Enterprise 




RTT 


T 


RTP 


RIS RIS+ 


IRISI | 


RISI 1 


RISI 2 


RISI+ 


RITTS 


Greece 


Voreio 
Aigaio 




















Kriti 


• 












• 




• 


Total 


2/13 


1/2 




0/1 


0/4 0/4 


0/1 


0/1 


1/4 





2/4 


Spain 


Baleares 














• 




• 


Canarias 


• 






. 










• 


Total 


2/19 


1/8 




0/1 


0/7 1/6 


0/1 


0/2 


1/5 





2/8 


Italy 


Sardegna 








1 1 


1 










Sicilia 


















• 


Total 


2/21 


0/3 







0/5 0/3 


O/l 





1/2 





1/4 


Portugal 


Madeira 


• 


















Total 


1/7 


1/6 







0/2 O/l 








1/2 





0/1 


EU-15 


Total 


7/1393 


3 






| | 


1 








| 



The second figure in the above table represent either the total number of regions in a 
specific MS or the total number of regional innovation projects by project type. 



Islands of Innovation 27 



2.8 PRAI Island regions statistics 

The principle socio-economic statistics for the PRAI Island regions as well as two of the 
main innovation-related indicators of the new "Lisbon partnership for growth and jobs" 
are available in the following table. 





POPULATION 
DENSITY 


POPULATION 
GROWTH 


UNEMPLOYMENT 
RATE 


EMPLOYMENT 

IN 
AGRICULTURE 


EMPLOYMENT 
IN INDUSTRY 


EMPLOYMENT 
IN SERVICES 


R&D EPO PATENT 
EXPENDITURE APPLICATIONS 




inn. /km 2 


Average 

annual % 

change 


% of active % of total % of total % of total 
population employment employment employment 


% of GDP 


per million 
inhabitants 


















Ellada 


83,5 


0,5 


9,3 


l6,4 


22,2 


61,3 


0,7 


7,4 


Ionia Nisia 


93,i 


0,8 


11,0 


19,3 


12,8 


67,9 


0,1 


0,0 


Nisia Aigaiou 


63,2 


0,7 


8,0 


24,2 


17,5 


58,2 


0,6 


6,3 


Voreio Aigaio 


53,3 


0,1 


7,4 


17,7 


18,2 


64,1 


0,2 


0,0 


Notio Aigaio 


56,9 


1,0 


10,9 


8,9 


21,9 


69,1 


0,1 


3,3 


Kriti 


7L7 


0,7 


6,8 


33,3 


15,3 


51,5 


1,0 


9,9 


Espafia 


81,8 


0,7 


n,3 


5,6 


30,6 


63,8 


1,0 


26,3 


llles Balears 


177,4 


2,5 


9,3 


2,0 


23,3 


74,7 


o,3 


15,1 


Canarias 


248,7 


2,1 


11,4 


4,6 


20,4 


74,9 


0,6 


8,7 


France 


109,4 


0,4 


9,3 


4,3 


25,0 


70,7 


2,3 


142,8 


Corse 


30,6 


0,4 


12,1 


5,8 


8,5 


85,8 


o,3 


9,2 


Overseas 
Departments 


19,6 


1,1 


27,1 


3,1 


12,9 


84,1 


1,6 


4,4 


Guadeloupe 


256,2 


0,6 


26,3 


2,8 


12,8 


84,4 


1,6 


7,0 


Martinique 


345,3 


0,1 


21,0 


5,7 


12,5 


81,9 


1,6 


5,9 


Reunion 


296,5 


1,8 


31,8 


1,7 


12,9 


85,4 


1,6 


3,1 


Italia 


189,7 


0,1 


8,7 


4,9 


31,8 


63,3 


1,1 


77,7 


Sicilia 


193,3 


-0,1 


20,1 


8,3 


20,9 


70,7 


o,9 


14,1 


Sardegna 


67,8 


-0,1 


16,9 


8,0 


24,0 


68,0 


0,7 


10,2 


Portugal 


112,8 


0,5 


6,3 


12,5 


32,3 


55,2 


o,9 


4,9 


Ago res 


102,2 


0,0 


2,9 


12,8 


28,2 


59,0 


0,5 


0,0 


Madeira 


309,2 


-0,5 


3,4 


9,5 


26,6 


63,8 


o,3 


3,2 


Suomi/Finland 


17,1 


0,3 


9,0 


5,1 


26,3 


68,6 


3,5 


343,6 


















119,8 





ANNEXES 



ANNEX 1 

THE PRAI ISLAND REGIONS 
REGIONAL PROGRAMMES OF INNOVATIVE ACTIONS 

ANNEX 2 

THE SOCIO-ECONOMIC PORTRAIT 
OF THE PRAI ISLAND REGIONS 

ANNEX 3 

GLOSSARY OF TERMS & ABBREVIATIONS 



ANNEX 4 

CONTACTS, BIBLIOGRAPHY & WEB RESOURCES 



It is in vain to expect our prayers to be heard, 
if we do not strive as well as pray. 



Aesop 
620?BC-560BC 

A semi-legendary author who wrote hundreds 
of animal fables illustrating human follies and foibles. 



30 Islands of Innovation 



ANNEX 1 

THE PRAI ISLAND REGIONS REGIONAL PROGRAMMES 
OF INNOVATIVE ACTIONS 



Following the enlargement of May 2004, 10 new Member States have joined the 
European Union including 2 island countries/regions, Cyprus and Malta. However, 
according to the guidelines, these regions cannot apply for a PRAI. 

It is important to note that Cyprus has already invested in regional innovation in the 
period 2001-4 via the RISC (Regional Innovation Strategy in Cyprus) programme. 

The challenge for the PRAI Island regions is to capitalise on the emerging experiences 
in order to stimulate innovation on a wider scale. It is also expected that the lessons 
learned from the implementation of the regional programmes of innovative actions will 
be incorporated into the future Structural Funds programmes. This will help regions to 
view innovation as a crucial factor for regional development, and provide them with the 
basis to become in the knowledge society. 

The above table includes all PRAI Island regions that have completed and/or are 
currently implementing a PRAI by December 2005. 

ELLADA GREECE 



& 



ESPANA504//V 



Islas Baleares (Balearic Islands) 

http://innobalXXI.caib.es 

Islas Canarias (Canary Islands) 

www.canarias-digital.org 



© 



Ionia Nisia (Ionian Islands) 

http://hermes.westgate.gr/3i 

Voreio Aigaio (North Aegean) 

www.naias.gr 

Notio Aigaio (South Aegean) 

www.istosweb.org 

Kriti (Crete) 

www.innocrete.gr/ 



ITALIA ITALY 



Sicilia (Sicily) 

www.innovazionesicilia.it/ 



Sardegna (Sardinia) 

www.diesis-sardegna.it/progetto/ 





FRANCE 

Guadeloupe 

www.made-in-guadeloupe.fr/ 



■j 



Reunion 

tic.regionreunion.com/rubrique. php3?id_rubrique=21 



It is expected that innovation will become a priority in the future generation of 
Structural Funds post-2006 and best practices from the regional programmes of 
innovative actions have been incorporated into the future objective of regional 
competitiveness and employment for the period 2007-2013 7 . 



7 For more information: http://ec.europa.eu/regional_policy/debate/forum_en.htm 



Islands of Innovation 31 




Programme Name (Acronym) 

Innovation in the Ionian Islands (31) 

Programme Summary 

For years the predominant sector of financial growth for the Ionian Islands has been the 
tourism sector. The innovation aspect puts another view into these improvement efforts 
by defining the methods for collectively defining new types of services, using technology 
and promoting the new ideas into successful business ventures. The strategy imposed 
by the 31 PRAI is interconnected to the regional needs to include Ionian Islands into the 
new era of economy while protecting the traditional business practices and retain the 
strong region's identity and distinctive cultural characteristics. This strong social need 
drives the region into policies for inclusion of only "soft technologies" and the blending 
of digital services into traditional services providing information and context for the 
creation of innovative actions in the tourism sector. 

Programme Themes 
>> regional economies based on knowledge and technological innovation 
>> e-EuropeRegio: the information society at the service of regional development 
» regional identity and sustainable development 

The main objectives and added-value of the 31 PRAI are: 

• To blend digital services into traditional services providing information and context for 
the creation of innovative actions in the tourism sector, deriving mechanisms that will 
produce the incorporation of technological innovation promoting the information 
capacity of the region. The digital platform will be the regional recourse that will be 
used for the creation of innovative services in the tourism sector (i.e. weekend 
traveling roadmap, hotel selection and booking, virtual cultural routes, senior citizen 
off-season traveling, cultural event traveling) 

• To improve the current state of business reality by improving the quality levels of all 
traditional services. The devotion to sustainable development endorses the 
competitive spirit of the tourism industry of the region, combining the development 
of quality standards and the development of benchmarking in large tourist operations. 

• To create new services and innovative start-ups capitalizing on the local resources of 
tourism, culture, local agricultural products and artefacts blending them with 
technology features, where appropriate. New forms of tourism such as cultural, 
archaeological, religious, athletic must be produced accelerating the impact of this 
sector in the regional economies. The action deals with environment issues related to 
protecting rural areas from illegal construction which is often the case in tourist areas 
and to provide on-line feedback on water conditions in the areas that receive a "blue 
flag" to ascertain that water in certified swimming areas is not polluted. 

• To exercise foresight in order to raise awareness within regional actors, entrepreneurs, 
decision makers, researchers and opinion leaders. 

• To provide regional support in the innovation cycle by assisting business planning and 
promoting the financing of innovative ideas from third party financing. 

• To provide information about regional innovative status and to transfer best practices 
from relevant regions. 



32 Islands of Innovation 



NAIAS 



Programme Name (Acronym) 

NORTH AEGEAN INNOVATIVE ACTIONS & SUPPORT (NAIAS) 




Programme Summary 

The NAIAS programme aimed at contributing to the transformation of an insular, boarder, 
and poor region to a dynamic, innovative region in the new knowledge based economy. 
The pilot actions proposed address the needs for innovative culture, competitiveness, e- 
business, green products, new, traditional products, and better environment. These are 
a) the use of innovation management techniques, b) the use of modern services on 
business planning, and internationalization, c) the use of portal e-commerce system, d) 
the provision of local eco-label, using integrated product schemes, e) the production of 
new products, from traditional resources, f) the use of an innovative olive oil waste water 
treatment system. These actions are part of the innovation action plan, already developed 
through a RITTS program. The adaptation of these actions into the mainstream 3 rd CSF, 
requires prior pilot, small scale testing in order to access the effectiveness, the added 
value, and the best method for implementation. 

Programme Themes 

regional economies based on knowledge and technological innovation 
e-EuropeRegio: the information society at the service of regional development 
» regional identity and sustainable development 



The NAIAS program aimed at contributing to the development of a new, innovative, 
regional identity in the region of North Aegean, and enhancing the usage of new 
technologies, methods, know how, by the professionals. Following the regional 
technology transfer plan of North Aegean, it was proposed the implementation of six 
pilot applications in the fields of innovative culture, competitiveness, e-business, green 
products, innovative, traditional products, and environment. The application of the 
proposed projects will contribute to the preparation of the North Aegean region for the 
transition to a knowledge-based economy, as well as the enhancement of the process 
of structural reformation for competitiveness and innovation. 

The programme's objectives were placed within the overall objectives of the regional 
operational plan. More specifically, the aim of the program was to develop pilot 
applications to cover the needs of significant economic sectors for the region of North 
Aegean, improve the quality of life, experiment with innovative use of new technologies, 
and finally monitor the benefits of their application and identify how the results can be 
improved in order to provide high-quality applications for the whole activities of the 
region, following the end of the program. 



Islands of Innovation 33 



Programme Name (Acronym) 

INNOVATION FOR SUSTAINABLE TOURISM AND SERVICES 

IN THE SOUTH AEGEAN (ISTOS) 




Programme Summary 

The strategic objective of the ISTOS programme is to build the necessary environment 
for sustainable development through regional innovation in the South Aegean region. The 
programme is based on the planning of an integrated public-private-partnership among 
the stakeholders in the region. The region's stakeholders have agreed on a strategy based 
on the needs of the tourism and services sector that dominates the economic and social 
activity in the region. Thus sustainable tourism development identified as the main 
component of sustainability on the South Aegean region. The PRAI is based on a strategy 
that has three interconnected layers. The first layer concerns the innovation in services, the 
second the sustainability and the third the information and communication technologies. 

Programme Themes 
>> regional economies based on knowledge and technological innovation 
>> e-EuropeRegio: the information society at the service of regional development 
>> regional identity and sustainable development 

The ISTOS programme specific objectives are: 

• To promote the regions competitiveness and its ability to adopt regional development 
strategies to meet the needs of the social, environmental and business stakeholders. 

• To push an innovative and sustainable approach into the regional development 
strategies of the local authorities and SMEs participating in the programme. 

• To make the best use of all available, regional, national and European resources in 
the region in platforms for development of innovative and sustainable structures both 
in the private and the public sector. 

• To develop public-private- partnerships in order to facilitate innovative projects in the 
service and tourism sector. 

• To blend digital services into traditional services providing information and context for the 
creation of innovative actions, deriving mechanisms that will produce the incorporation 
of technological innovation and thus promoting the information capacity of the region. 



The above objectives are being succeeded through the following actions: 

Action 1: Innovation, Sustainability and Local Agenda 21 

The action regards the creation and the development of the necessary environment for the application of 
Local Agenda 21 in the South Aegean region. The action's components include the measurement of the 
sustainable performance of the region, the estimation of its social, economic and environmental footprint, as 
well as the promotion of regional and local innovative governance for the successful application of Local 
Agenda 21. It should be noted that it is the first time that governance is being studied for an insular area. 

Action 2: Regional framework for sustainable tourism 

The aim of the action is the development and pilot application of a comprehensive regional framework for 
sustainable tourism. Specifically, the action involves the development and pilot application of a standard for 
sustainable tourism, the monitoring of the quality level of the regional tourism product through enterprise 
benchmarking in the tourism sector, as well as the creation of two Centers of Innovation (one in the 
Dodecanese and one in the Cyclades Prefecture) for the provision of consultancy and technical assistance to 
the local SMEs on sustainable development and innovation issues. 

Action 3: Drawers of Innovation 

The action involves the provision of support to 30 drawing-firms (or to 3-7 clusters of firms) from Dodecanese 
and Cyclades, for projects based on innovation in the production, organisation, operation and marketing 
functions in the tourism sector. 



34 Islands of Innovation 



Action 4: Digital Aegean Island (DI.AG.I) 

The overall objective of the action is to implement and demonstrate innovative telematic services to the 
tourism industry through the utilization of the most advanced telecommunication technologies and computer 
network applications developed in the Internet. The aim of this action is to produce the drives and 
mechanisms that will develop the incorporation of technological innovation promoting the information 
capacity of the region. 

Action 5: Wireless Island Area Network 

The action refers to the establishment and operation of a wireless local network in the island of Paros. The 
services will be geared to the tourism and visitor market as well as to other local enterprises. The network 
will facilitate direct access to Internet and the exploitation of the practical telematics applications. 

Action 6: Networking with other regions 

The action aims at the development of cooperation between the Region of South Aegean and other European 

Regions sharing common characteristics and development prospects. This cooperation will be primarily 

focused on the exchange of experience, knowledge and best practices in view of undertaking common action 

in fields of common interest. 

Apart from project reporting and evaluation the action regards the planning and implementation of the 

publicity campaign of the programme as well as actions orientated towards the dissemination of its results. 



a 






•* 



Programme Name (Acronym) 

Canari@sDigital-Innova (CD-I) 




Programme Summary 

The final goal of the programme of innovative actions Canarias Digital-Innova is 
closely linked to the central objective of the "Canarias* Information Society Strategy": 
"This strategy aims to fully integrate Canarias into the Information Society both in 
economic and social terms and to improve employment, competitiveness and territorial 
and social cohesion levels in the archipelago". 

Building upon the existing Regional Development Innovation and Information Society 
Strategy Plans, Canarias Digital-Innova will feed and optimise the Canarias' 
Operational Programme funded by the European Regional Development Fund through a 
closer co-ordination of strategic planning and management bodies. 



Programme Themes 

regional economies based on knowledge and technological innovation 
» e-EuropeRegio: the information society at the service of regional development 
» regional identity and sustainable development 



» 



The CD-I programme specific objectives are: 

Establishment of an integrated platform for co-operation and knowledge management. 

Experimentation with the most innovative technologies for broadband access to 

networks and services and establishment of a network of public access points to 

networks and resources. 

Stimulating public-private partnership, for further generalisation throughout the 

archipelago. 

Use of information, communication and technology to contribute to a sustainable 

development of the islands transport system. 

Creation of small and medium-sized enterprises and citizens-oriented content, in 

particular aimed at exploiting the potential of local resources and e-tourism (i.e. broad 

band rural homes and service-related centres). 



Islands of Innovation 35 




Programme Name (Acronym) 

CRETE INNOVATIVE REGION (CRINNO) 



Programme Summary 

The strategic objectives of the CRINNO programme are: 

• To create an environment accelerating introduction of private and public sectors to first 
class University and Research Institutes technological developments and know-how. It 
encourages the establishment of partnerships, which facilitate the development of 
innovative enterprises and innovative products in both high-tech and traditional sectors. 

• To promote the regional cohesion and sustainability through an integrated approach to 
manage high risks that threatens the existence of insular and historical characteristics, 
which constitute high value components of the region's development capacity. 
Innovative methodologies and partnerships are adopted in order to provide scientific 
know-how and to establish the platform to promote innovative solutions. 

Programme Themes 
>> regional economies based on knowledge and technological innovation 

e-EuropeRegio: the information society at the service of regional development 
>> regional identity and sustainable development 

The prime objectives of the CRINNO programme are to achieve a significant cultural 
change towards innovation and sustainability throughout the region and progressively 
develop an interactive regional innovation system capable to support the competitiveness 
of Cretan economy. Crucially, and to ensure that the regional innovative actions are much 
more than a research or academic exercise, the programme will give much emphasis to 
strengthen the partnerships which consolidate the social consensus and sustainability. 
The programme will also seek to mainstream the results and general approach of the 
programme to structural funds and other strategic programmes in Crete, identifying the 
means for transferring and sustaining the innovative approaches and knowledge 
generated to all relevant sectors. In order to ensure that the learning process is not 
insular, the PRAI will network with other regions in Europe, to ensure that current best 
practice is adopted by the pilot actions and that further best practice, developed by the 
programme is widely disseminated throughout the region and to other EU areas. 

IN THE CONTEXT OF THE OVERALL CRINNO PROGRAMME THE KEY OBJECTIVES ARE THE FOLLOWING: 

• Develop and strengthen the permanent regional structures and networks which: 

> Support regional authorities in defining, monitoring and evaluating regional 
development policy based on innovation and sustainability 

> Transfer of technology, knowledge and information from Universities and Research 
Institutes to firms, rural communities and public sector 

> Motivate and support innovative entrepreneurship and product innovation 

• Adoption of innovative practices and methodologies in managing rationally natural 
resources which are considered as vital elements for the island sustainable 
development in a rationale manner ensuring sustainability 

• Make effective use of innovative methodologies and practices to manage unique 
cultural, environmental and traditional assets that define regional identity, which are 
in danger because of the increased demand, physical, social and human pressure with 
negative sustainability consequences. 



36 Islands of Innovation 




Programme Name (Acronym) 

INNOVATION AIMED AT DIVERSIFICATION AND SUSTAIN ABILITY 
OF THE ISLAS BALEARES (INNOBAL XXI) 




Programme Summary 

The INNOBAL XXI programme of innovative actions focuses on promoting economic 
sustainability in a small region suffering from the impact of mass tourism. 

Developing the regional economy through knowledge and technological innovation is 
the priority in the programme. 

Programme Themes 
>> regional economies based on knowledge and technological innovation 

e-EuropeRegio: the information society at the service of regional development 
regional identity and sustainable development 



The INNOBAL XXI programme specific objectives are: 

• Adaptation of the programme to the regional situation 

Creation of three innovation centres (one on each of the three largest islands). 

• Improvement of the technological level and innovation process in enterprises and in 
the whole region 

Creation of 15 e-enterprises and providing specialist support and technical 
assistance to 40 regional enterprises, which will implement 15 Innovation Plans. 

• Economic diversification by making use of new knowledge-based activities 

Introduction of information and communication technologies in at least 40 hotel 
enterprises as well as creation of a tourist and hotel innovation cluster involving 
more than 30 regional businesses. 

• Best practices transfer of the innovative actions to the whole region 

Definition of a set of new measures within the framework of the existing Regional 
Innovation Strategy (Pla BIT). 



Islands of Innovation 37 




Programme Name (Acronym) 

COMPTOIR DE LA NOUVELLE ECONOMIE DE GUADELOUPE 



Programme Summary 

One of the priorities of the programme is the implementation of strategies for 
technological innovation and information society, in order to allow the economic and 
cultural revalorisation of the territory. 

The programme aims at making the region capable of entering the information society 
era, to equip her with the necessary instruments for its economic development, to 
enable her to reduce its insulation with respect to the remainder of European Union, to 
create a centre for the development of activities of company, and to create employment 
in the Caribbean area. 

The regional strategic programme is built in two planned stages over the period 2003- 
2006. First a starting phase of 2-year duration (2003-2004), which is the object of this 
programme; and a second deployment phase with a 2-year duration (2005-2006). 

Programme Themes 
>> regional economies based on knowledge and technological innovation 
>> e-EuropeRegio: the information society at the service of regional development 

regional identity and sustainable development 



The Comptoir de la nouvelle economie programme is built on a principal base: an 
electronic trading platform. It has as an aim to give the inhabitants a regional market 
place and local trade gallery, as well as a number of accompaniment services necessary 
for the awareness-raising, mobilisation of the companies and for their progressive entry 
in the new economy. These accompaniment services will be externalised during the 2nd 
phase of the programme. 



Islands of Innovation 





Programme Name (Acronym) 

INVESTIR DANS L'HOMME REUNIONNAIS 



Programme Summary 

The regional programme of innovative actions aims to give Reunion a coherent regional 
strategy and an action plan likely to help develop better its assets, while controlling the 
specific weaknesses and the constraints arising from its geographical environment. 

The programme covers the topic of "the regional information society" by allowing: 

• the qualification and adaptation of the competences of the population at the offer of 
the companies of the Information and Communication Technologies sector; 

• the encouragement and the competitiveness of the local economy, by creating 
activities and jobs via the Information and Communication Technologies. 

Programme Themes 

regional economies based on knowledge and technological innovation 
>> e-EuropeRegio: the information society at the service of regional development 
regional identity and sustainable development 

The Investir dans l'homme Reunionnais programme specific objectives are: 

• Pilot projects for training of the population to the Information and Communication 
Technologies 

• Access to the world wide web of the upper secondary education schools 

• Distribution of know-how by the organisation of a seminar for the ultra peripheral 
European regions, as well as for the other less-favoured regions of Europe and the 
ACP (Africa-Carribbean-Pacific) area. 



Islands of Innovation 39 






Programme Name (Acronym) 
INNOVAZIONE-SICILIA 




Programme Summary 

The objective of the Programme is the implementation of diffusion processes for the 
distribution of innovation in the regional economy, through the creation of cooperation 
networks among companies, centres of research, universities, centres in the services of 
the companies, local authorities, financial organisations, training agencies and other 
similar structures to the service of companies. 

These networks aim to assemble the technological and scientific know-how, of 
research and management of the interested areas with the aim of working out processes 
of diffusion of economic innovation realizable elsewhere, which could be applied within 
the framework of regional programming with/without the support of the Community 
funds. 

Programme Themes 
>> regional economies based on knowledge and technological innovation 

e-EuropeRegio: the information society at the service of regional development 
regional identity and sustainable development 

The Innovazione-Sicilia programme foresees: a) the creation of three networks of 
cooperation in the sectors of the agriculture, particularly for the biological crops, of the 
agri-foodstuffs industry and of the craft industry; b) the implementation of a regional fund 
for innovation; c) experience sharing between regions in the field of economic innovation; 
and d) technical assistance for the implementation and the evaluation of the programme 
and for communication and information activities. 



The Innovazione-Sicilia programme specific objectives are: 

• The programme aims to create innovative processes which could help the companies to 
activate in the selected sectors the continuing training and permanent innovation. 

• The innovation that one intends to stimulate includes all the production processes and 
management of the companies: management innovation as such, product innovation, 
processes (technological), market, finance; the innovation applied to products and the 
traditional companies as well as to products and to high technology companies. 

• At short term, the cooperation networks connecting the companies to the centres of 
research, to the universities, to the official authorities and to the specialised experts 
represent instruments to acquire and exchange the knowledge which does not help only 
the companies, but also the other participants in the networks, to know better their 
needs and to make changes their working methods. Work in network raises the average 
level of the professional capacities of those involved and helps them to give relevant 
answers to the innovation requests. 

• In the long run, the objective is to defer the techniques of innovation to other production 
sectors of the whole region to recycle gradually all the production system and that of 
services to companies. 



40 Islands of Innovation 





Programme Name (Acronym) 

DRIVING INNOVATIVE EXPLOITS FOR SARDINIAN INFORMATION SOCIETY 


mi sis 



Programme Summary 

The main objectives of DIESIS are promoting discussion, a positive attitude towards 
innovation and intensive actions among the regional administration and the different 
stakeholders. On this basis, to prepare a mid-term financial plan with appropriate guidelines 
in order to exploit all available financial resources supporting innovation at regional, 
national and European level. 

Programme Themes 

REGIONAL ECONOMIES BASED ON KNOWLEDGE AND TECHNOLOGICAL INNOVATION 
>> E-EUROPEREGIO: THE INFORMATION SOCIETY AT THE SERVICE OF REGIONAL DEVELOPMENT 
>> REGIONAL IDENTITY AND SUSTAINABLE DEVELOPMENT 



The DIESIS programme specific objectives are: 

• dissemination and fine tuning of the regional strategy, including consensus among the 
main stakeholders. 

• preparation of mainstream projects in five key areas for sustainable development that 
will also contribute to improving the position of the region in the global market. These 
key areas regard e-tourism, e-government, e-learning, e-commerce and knowledge 
management (as a horizontal area crossing the other four). 

• promotion of financial strategies and the diversification of the financial sources to 
duplicate the investment in infrastructure and Information Society products or services 
in the next two years. 



Islands of Innovation 41 



Programme Name (Acronym 
PRAI A£ORES 




Programme Summary 

The regional programme of innovative actions of the autonomous Region of the Azores, 
outlines the regional strategic priorities for the sustainable development. It is structured 
on four actions, which contain fields of intervention like renewable energy, the information 
society and culture. On the preparation and the development of this programme, several 
public and private entities took part, in the spirit of an active partnership. The actions 
proposed, moreover to correspond to a strategy of development of innovation in the 
Azorean company, also aim to complement and improve the quality of the intervention of 
the current operational Community Support Framework programme. 

Programme Themes 
» regional economies based on knowledge and technological innovation 

e-EuropeRegio: the information society at the service of regional development 
>> regional identity and sustainable development 

The PRAI Azores is positioned as one of the strategic priorities for regional 
development, particularly increasing competitiveness, within the framework of a 
horizontal policy of sustainable development, by developing and strengthening the role 
of the public and private partnerships. 



The PRAI Azores specific objectives are: 

• Backing of renewable energies for the supply of the electric power 

• Diffuse, even in the more isolated communities of the region, new information 
technologies 

• Stimulate the use of Information and Communication Technologies in the Azores both by 
the companies and the private individuals 

• Promote the disclosure of Azorean culture, in conjugation with the new Information 
Society technologies 



42 Islands of Innovation 



)n'f: 



Programme Name (Acronym) 
PRAI MADEIRA 




Programme Summary 

The programme aims to equip the Madeira region with a coherent regional strategy and 
with a programme of actions likely to develop better the assets and the opportunities 
of its regional reality while taking into consideration specific weaknesses and constraints 
of its geographical environment. 

The programme aims at carrying out the following actions: 

• The definition of a regional strategy in the fields of the RTD & Innovation and of local 
& sustainable development (RDTI-SD); 

• The definition of an integrated development programme articulated around emerging 
and pilot projects in the fields of the RDTI-SD); 

• The development of know-how in territorial management with a view to perpetuating 
development dynamics generated by the implementation of the PRAI. 

Programme Themes 
>> regional economies based on knowledge and technological innovation 

e-EuropeRegio: the information society at the service of regional development 
>> regional identity and sustainable development 



The PRAI Madeira specific objectives are: 

Strengthening of the strategic capacity of the Region in the field of the RTD-lnnovation 
and Sustainable Development and promotion of an action plan and measures 
according to an integrated approach: 

> Development of a regional Innovation and sustainable Development strategy (RDTI- 
SD) for the autonomous Region of Madeira; 

> Development of an action plan and measures in RDTI-SD in the region which would 
give a coherent orientation to the policy of development of pilot projects in these 
strategic sectors of the region. 

> Integration of the action plan in RDTI-SD in the operational programme and in the 
economic and social development plan of the region. 



Islands of Innovation 43 



Emerging project identification in conformity with the strategy and the action plan as 
well as project design which can influence the regional actions positively: 

> Proposal for pilot projects for each of the two subjects of the innovative regional 
actions: knowledge and technological innovation and sustainable development; 

> Feasibility analysis of pilot projects. 

Strengthening of the public-private regional partnership and stimulation of experience 
sharing and of the creation of networks and partnerships: 

> Creation of a regional institutional system which, in a permanent way, would define 
and support the adoption of the regional strategy in RDTI-SD; 

> Encourage stakeholders partnership in RDTI-SD of the proposed pilot projects. 

Development of administrative capacity for territorial management ensuring the 
strengthening of RDTI-SD projects: 

> Improvement of methodologies and of the tools for programme management and 
the administrative capacity for project design; 

> Creation of a system of promotion and evaluation of the RDTI-SD in the region; 

> Staff training in the management aiming to improve cooperation between the actors 
and operators and to strengthen the efficiency of the interventions in the in the 
ROPs. 



44 Islands of Innovation 



Annex 2 

The socio-economic portrait 
of the PRAI Island regions 



The five islands groupings of Sicily, Sardinia, the Balearic Islands, Crete and Corsica 
account for over 80% of the PRAI islands regions population. 

PRAI Islands regions are almost radically different from their countries. National and 
global trends are not felt the same way in these regions. As a result, the disparities 
between PRAI Islands regions and the other regions are far greater than the differences 
between the respective Member States. Success will go to those PRAI Islands regions 
which are swift to adapt and open to change. 



NUTS 


COUNTRY- REGION 


GDP* 


ELIGIBILITY SIMULATION 2007-2013 




ellada (Greece) 






GR22 


Ionia Nisia (Ionian Islands) 


65,53 


Below 75% threshold 


GR41 


Voreio Aigaio (North Aegean) 


74,30 


Below 75% threshold 


GR42 


Notio Aigaio (South Aegean) 


87,74 


Phasing-in 


GR43 


Kriti (Crete) 


72,27 


Below 75% threshold 




Espana (Spain) 






ES53 


Islas Baleares (Balearic Islands) 


116 




ES70 


Islas Canarias (Canary Islands) 


87,79 


Phasing-in 




France 






FR83 


Corse (Corsica) 


86,80 




FR91 


Guadeloupe 


67,32 


Below 75% threshold 


FR92 


Martinique 


74,88 


Below 75% threshold 


FR94 


Reunion 


60,63 


Below 75% threshold 




Italia (Italy) 






ITG1 


Sicilia (Sicily) 


71,98 


Below 75% threshold 


ITG2 


Sardegna (Sardinia) 


82,65 


Phasing-in 




Portugal 






PT20 


Acores (Azores) 


61,61 


Below 75% threshold 


PT30 


Madeira 


87,84 


Phasing-in 




SUOMl/FlNLAND 






FI20 


Aland Islands 


156 





By June 2005 there were no PRAI Islands regions classified as "Statistical effect" regions. 



8 GDP/head index data : average of years 2000-2002 (EU-25=ioo) 



Islands of Innovation 45 



GR22 - Ionian Islands 



The region of Ionian Islands includes several 
islands, of common historical and cultural 
history. The Islands have common social 
and financial characteristics, coming from 
the structure of the insular area in which 
they belong. The Region appoints also a 
very remarkable physical environment with 
many excellent landscapes, which presents 
the special characteristics of the insular 
area. The totally area of the region is 2.318 
km 2 , it covers the 1,8% of the totally area of 
the country. The region consists of 
Perfectures of Corfu, Lefkada, Kefalonia, 
Ithaka, and Zante and of 33 municipalities 
and 6 communities. The headquarters of the 
region is located in the city of Corfu. 

Generally the Region of the Ionian Islands, 
because of its important development of 
the tourism sector, gives the impression 
that they deal with a developed region. But 
in the reality the region have to do with a 
insular marchland with in-regional 
differences at the level of the social and 
financial development and with important 
problems at the connection between the 
islands and the rest of the country. 

The population of the region is up to 
202.000 people (1998) and it is correlated 
to 2% of the total population of the 
country. The civil population is up to 26% 
of the totally population (1991) and since 
then it is increasing in connection to 1981, 
the agricultural population is up to 63% of 
the totally population and it shows a small 
increasing, the residential population is 
decreasing and it is 11% of the total 
population of the country. 

The region produces the 1.74% of the 
total Production (GNP) of the country. The 
17% of the regional GNP is produced by the 
primary section, the 14% in the secondary 
section and the 69% in the tertiary section. 
The corresponding numbers for all the 
country are (1994) 15% for the primary 
section, 25% for the secondary section and 
60 for the tertiary. Diachronically there is a 
turn in regionally finance of the Ionian 
Islands to the tertiary section, the tertiary 
section has increased its participation to 



IRKYRAIl 






* 



© EuroGeographics Association for the administrative boundaries 



I Objective 1 



the total of the regionally GNP, but in the 
other side the participation of the primary 
and secondary section has been decreased. 

The GNP of the region (for every single 
person) is up to 90% to the average of the 
GNP of the country in the year 1994. If we 
compare the EU data with the 
correspondent data, we will find out that 
the regional GNP is 62 % of the European 
average GNP. The region is ranked in the 
twenty two place of the 25 poorest regions 
of the EU (in 1986 the rank was 15). 
According with newest statistical data, with 
GNP at 3.97 million drachmas for the year 
2001, 98% of the total average of the 
country, it takes the 5th rank in all the 
region, the rank is for almost 10 years 
stabilized. The region had the lowest 
percentage of unemployment in the country 
for the year 2000 9% to 11,1% of the 
country unemployment. 

The productivity of the region is low, 
corresponding to the country and the 
European committee. The productivity in 
the year 1996 was 63% of the EU average, 
(the corresponding percent of the country 
was 72%). However it showed a little 
improvement corresponding to the year 
1993 in which the percent was 62%. 

The region accumulates 2% of the 
population and produces 1,9 % of the GNP 
of the country. Between 1991 and 2001 the 



46 Islands of Innovation 



population has been increased 11%, which 
was the 3rd biggest increase in the 
country after South Aegean and Creta. 

The productivity of the region is up to 
3% of all the agriculture production 0,5% 
of the manufacture productivity and 2% of 
services. According to Eurostat the working 
force of the region is going to get 
increased at 7,9% in the years 2000-2010, 
almost a double increase for Greece as 
total (4.3%). 

The 3/4 of the products comes from the 
services, and at first from tourism, 12% 
(1999) the hosted tourists, it has also the 
2nd highest hosted tourists. 

In the 5 years 1995-1999 the region had 
86 new licenses for industries, 2% of the 
total. The proportion of the industries who 
are in the area is only 0,3% of the 
manufacture and construction units of the 
country and 1,1% of the commercial . 

After a research carried out on 2000 in 
relation of Information Technology and 
Internet diffusion in the Region of Ionian 
Islands private sector, the following results 
have produced: 

• 20% of citizens have access on a 
Personal Computer. This amount was 
very lower before 1998. 

• Among civilians not having access on a 
Personal Computer, only 10% has the 
intention to do so. 

• Internet penetration is 14%. The majority 
of citizens not using Internet, believes 
that it is not useful, very difficult to learn 
and expensive. 

• The most ordinary use of Internet is for 
Information Search and Retrieval, and 
for Entertainment. 

• Only 2,5% off the people having Internet 
access, uses it for Electronic Commerce 
(to buy products). However 50% of 
them, are willing to do so (mostly to buy 
books, songs and e-games). 



The basic outcome of this research is 
that Informatics and Internet penetration 
in the Region of Ionian Islands is very 
small. However there was a definite 
incremental tender. 

From another research targeted only in 
SMEs, the basic conclusion was that very 
few companies in Ionian Islands own up- 
to-date technological equipment in the 
area of Info ration technology (Personal 
Computers, Servers, Software etc). The 
majority of the ones having such equipment, 
continuously notify themselves concerning 
new tenders and they are willing to buy new 
useful products. As a result, among SMEs 
having Personal Computer, there is 50% 
Internet Penetration. However is lack of use 
of the Web for business purposes (web sites 
for promotion, Electronic Commerce etc). 
Companies are willing to do so but they 
don't know how to do it. This happens either 
because they don't have the specialized 
personnel or they can't pay to have it. 
Additionally there is lack of companies 
producing and supporting such application in 
the Region of Ionian Islands. 



Islands of Innovation 47 



GR41 - North Aegean 



The region of North Aegean is located in 
the northern part of the Aegean Sea. It 
comprises three administrative levels: the 
regional administration, which is part of 
central government; prefectural authorities 
and local authorities. There are three 
prefectural authorities: Samos, Chios, and 
Lesvos, which contain the islands of the 
same name and many smaller ones. The 
ensemble that is composed by these is 
characterized by the absence of geographical 
and economical cohesion. 

The population of the region numbers 
182.990 (1999) inhabitants. The small 
positive growth of the 1981 - 1991 decade 
(2,1%) was reversed in the 1991-1999 where 
a reduction of 8,8% of the population 
occurred. 

The regional transportation infrastructures 
are of average condition, fact that may be 
largely explained by its insular and border 
area characteristic. The same situation 
prevails in what regards the technical and 
social infrastructures, while it appears to be 
a shortage in industrial infrustrures. The 
existence of the University of Aegean 
represents a great advantage. 




I Objective 1 



For what regards the regional GDP, in 
1998 it represented 1,6% of the total 
country's GDP. The major contribution to 
the regional GDP is made by the 
prefecture of Lesbos (55%), while the 
prefecture of Chios participates at a level 
of 22%, and the prefecture of Samos 23%. 
During the 1981-1991 period the average 
annula growth of the regional GDP was 
1,4% while in the period 1991-1994 period 
it was of 1,6%. The primary sector 
produces 20%, the secondary sector 17%, 
and the tertiary sector 63% of the regional 
Gross Domestic Product (1994). In the 
primary sector the olive oil contributes 
15% of the national product, and the 
chesse 4%. The regional economy is 
mainly based on the tertiary sector 
(Tourism, Public Administration, and 
Services), while the two other sector are 
on the declining course. In 1999, the 
regional GDP per head represented 52% of 
the average European Union's GDP per 
head, and North Aegean was one of the 
poorest regions of the Union. It ranks one 
of the poorest region of the EU, and of 
Greece (10 th out of the 13 Greek regions). 



Islands of Innovation 



The labor force is characterized by a 
continuous shrinkage. Its reduction rhythm 
was 3,8% during the 1981-1991 decade 
while for the 1991-1996 period it was even 
higher, reaching 5,9%. The same happens 
with employment, which reduces 
continuously. The greatest losses in 
employment positions appear in the 
secondary sector. In the primary sector the 
losses are smaller, while in the tertiary 
sector a growth in available positions is 
observed. The employment reduction during 
the 1991-1999 period was the main reason 
for the growth of unemployment during the 
same period. While in the 1992-1995 period 
a reduction was observed, in the period of 
1995-2000, unemployment showed ups and 
downs, to finalize itself at a higher level in 
2000, compared to 1993 (11% compared 
with 7,5%). 

Between the region's prefectures a 
significant diversity in the structural 
production fabric exists, since each 
prefecture presents a different production 
physiognomy. 



The main advantages of the region are: 

• The scenic environments and beauties 

• The possible use of renewable sources 

• The operation of the Aegean University 

• The traditional regional products 

The main disadvantages are: 

• The insular and boarder area character 

• The unfavorable demographic conditions 

• The low level of GDP 

• The absence of dynamic and modern 
productions 

• The lack of infrastructures 

• The difficult linkages of the region's 
islands 

The main opportunities are: 

• The size of public investment 

• The traditional products (mastic, oil, wine) 

• The linkage between research and 
production 

• The traditional and cultural heritage 

• The unexplored areas of natural beauty 

• The development of major infrastructures 



The main threats are: 

• The adjustment of the locals to innovation 

• The difficulties to create scale economies 

• The insecure syndrome due to the border 
character 

• The adjustment into the globalization 



The social and economic analysis clearly 
indicates that the secondary sector is the 
weakest part of the economy. 



Islands of Innovation 49 



GR42 - South Aegean 



The South Aegean Region consist of the 
Prefectures of Cyclades and Dodecanese 
and extends in the Aegean Archipelagos 
from the coasts of Attica and Evia, where 
there is Makronisos and Andros, to the 
South coast of Turkey, where there is 
Kastelorizo or Megisti. The region consists 
of 80 islands from which only the 47 are 
inhabited. The total area of the region is 
5.286 km 2 and covers the 4% of the area of 
the country. The relief of most of the islands 
is mountainous and rocky, the mineral 
resources are poor, apart from some rare 
exceptions, and there is severe scarcity 
regarding conventional energy resources. 
On the other hand, the rich natural and 
cultural resources represent the comparative 
advantage of the South Aegean Region. 

The population of the region has 
increased in the late decades (1961-1991) 
and up to 1997. The increasing rate is 
about 24,17% placing the region of South 
Aegean first (concerning rates of 
population growth) between the thirteen 
regions of the country. The population of 
the region from 207.354 ' n a 96i became 
268.643 in 1997. Analogically the growth 
is the same between the islands. The 
urban population has the major growth in 
the region, following the semi-urban 
population, except the agricultural 
population, which after the decreasing in 
1981 is up to the same level of 1961. The 
general growth is not succeeded only from 
the increasing rate of births but also from 
internal and external emigration. 



> 




1 M ■* "^ ~. t " 




y ^ERMOUPOLIS >^ 






A<* * 4 




* - ¥ 




> 




*■*• © EuroGeographics Association for the 


rative boundaries 


H Objective 1 





The GNP of the region is higher than the 
average GNP of the country. In particular 
arises up to 122% of the average GNP of 
the country, which is, also arises in 74% of 
the average GNP of the European Union. 
Statistically the region of the islands of 
South Aegean appears as prospering but it 
is known that this is ought to the financial 
development of specific islands, particularly 
Rhodes, Kos, Santorini, Mykonos, and 
Paros. Respectively the productivity of the 
region lies in a higher level from the 
country but in a lower lever from the 
average of the European Union. The growth 
is ought to the islands of Rhodes, Kos, 
Santorini, Mykonos and Syros. Assuming 
that these five islands are excluded from 
the statistics the South Aegean Region 
would drop dramatically to the last places 
of the country in terms of wealth. The 
geographical morphology of the South 
Aegean is keeping down the diffusion of 
the income and the known how, and 
creates different levels of development and 
serious internal inequalities. 



50 Islands of Innovation 



The decrease of employment together 
with the decrease of productivity are the 
main facts that characterising the primary 
sector. The manufacturing sector also is 
facing dramatically decrease of employment. 
Manufacturing includes in the majority 
SMEs except the dockyard of Syros, which 
is considered as a big firm, but it is still an 
SME according to the EU classification. In 
the contrary, the sector of services and 
mainly tourism is continually rising, the 
employment in the sector accounts for up 
to 65%. Services and particularly tourism 
account also for almost 75% of the GNP of 
the region. The research activity is very low 
just the 1% of the total research industry 
and rank the region in the last of the 13 
regions of the country. 

According to the latest research concerning 
the Technology and Internet diffusion in 
the South Aegean Region, the following 
results have been reported: 

• In 2001, only the 11% of the population 
have access on Personal Computer and 
Internet. 

• In 2002 the percentage of citizens having 
access on Personal Computer and 
Internet rises to 14,9%. 



Despite the increasing percentage 
through the years, the basic outcome of 
this specific research is that Informatics 
and Internet penetration in the region of 
South Aegean Islands is very small. 

The majority of the enterprises in the 
region of the South Aegean islands are 
grouped in SMEs category and their 
master activity are in Services and 
especially in Tourism. A research that has 
been undertaken during 2001 by 
Eurobarometer shows that the rate of use 
of personal computers and internet is 
related to the size of the firms. Small firms 
(up to 10 people) are using less PCs and 
the internet than larger firms (more than 
11 people). 

The South Aegean region is endued with 
natural beauty and local culture and 
tradition. These are the reasons that make 
the specific area to have a strong 
advantage in the tourism development. A 
major percentage of the wholesale and 
retail commerce concerns the tourism 
activities and especially the business 
sectors of Hotels and Restaurants. 



Islands of Innovation 51 



GR43 ■ Crete 



The region of Crete is the southernmost 
region of European Union. The largest of the 
Greek islands covers an area of 8.335.880m 2 
(6,3% of the country's overall extent). 
According to the 2001 census, Crete counts 
601.000 inhabitants (5,9% of the country's 
total). Heraklio and Chania, the two biggest 
cities are the basic gateways of the island. 

The excellent climate of the island, the 
sun and the sea, the historic monuments, 
the beautiful landscape and modern 
tourist resorts, attract more than 
2.000.000 visitors every year. Crete is 
known worldwide for the quality of its 
agricultural products, which constitutes 
the basis of the Cretan diet. 

The economy of Crete is being 
characterized by its intense dependence 
on the primary sector (38% of the labour 
force) and tourism (50% of the labour 
force), while the contribution of the 
combined primary and tertiary sector in 
the Gross Regional Product is approximately 
87% (primary 31% and tertiary 56%). Crete 
is considered one of the most dynamic 
regions of Europe in terms of economic 
development yearly rates. The per capita 
Gross Regional Product corresponds 
approximately to 100% of the respective 
Greece average and 75% of the EU 
average. Unemployment remains at low 
level (4,6% of the total labour force the 
year 1997), significantly lower of the Greek 
average 10,3%. 

New technologies are represented in Crete 
by a range of educational and research 
institutes. Crete boasts two dynamic 
universities, a college of technology, a major 
research foundation (FORTH), an institute of 
marine biology and three agricultural 
research institutes. These facilities, combined 
with high quality personnel, are transforming 
the island into a scientific centre in areas 
such as computing, biotechnology, lasers, 
polymers and marine technology. 




I Objective 1 



52 Islands of Innovation 



The main advantages of the region are: 

• Economic Issues 

• The local economy dynamism is equally 
depended on two important activities 
(tourism and agriculture) 

• In the tourism sector, economies of 
agglomeration have been achieved 
along with top quality 

• Good quality and wide variety of local 
products 

• Availability of internationally known 
educational and research Institutes with 
high quality human and entrepreneurial 
capacity, which can ensure the wide 
spread of innovative actions 

• Social Issues 

• The natural increase rate of the 
population is higher compared to the 
country's average 

• Low unemployment rate. (Half price of 
the country's average) 

• Population homogeneity 

• Well defined and internationally known 
living and gastronomy standards 

• Spatial Issues 

• Availability of areas with natural beauty 
and biodiversity 

• Existence and spatial spreading of areas 
with important elements of historical 
cultural interest 

• The characteristics and optimum size of 
the island can serve as a very good 
background for applying methods of 
integrated development and spatial 
development strategies 



The main disadvantages are: 

Economic Issues 

Highly dependent economy on massive 
tourism 

Agricultural sector characterized by 
unexploited capacity of innovation and 
inefficient trade and marketing networks 

Low level of productivity and human 
resources specialization 

Low level of intersectoral links within 
Cretan economy, basically between 
tourism and agriculture 

Social Issues 

High indexes of old, non-active population 
compared to the country's average 

The Educational level of the work force 
is lower than the country's average 

Underdeveloped and not efficient 
network of social infrastructures 

Limited participation of women in the 
workforce and a high trend of 
concentration of the female activities in 
the primary sector 

Spatial Issues 

Difficulties in the development of 
interregional cooperation due to the island 
constraints 

Environmental pressures due to the 
highly populated and tourism developed 
north side of the island 

Increased demand for the environmental 
and cultural protection 

Increased demand in basic infrastructure 
projects because of the population 
spread in numerous small residential 
areas 



Islands of Innovation 53 



The main opportunities are: 

Economic Issues 

Innovation, quality stability, standardization 
and efficient marketing policy of selected 
local products 

Enrichment and differentiation of the 
tourist product 

Entrepreneurship reinforcement and 
organization of the production units in 
such a way that can facilitate innovation 
and technology upgrade 

Development of strong links between 
research-technology and local economy 
actors 

Social Issues 

Completion of the social infrastructure 
network especially for the children 
protection-guarding 

Fighting of social isolation 

Strengthening of cultural institutions 

Protection and valorization of traditional 
society assets 

Spatial Issues 

Strengthening spatial specialization 

Strengthening the links between the 
urban centers and the harbors and ports 
of the island 

Promotion of local into vest urban 
centers and secure of their business 
links with rural zones 

Integrated management interventions 
for the natural and cultural heritage 
valorization and protection 



The main threats are: 

Economic Issues 

Limited private funds in R&D activities 

Bureaucracy 

Lack of skills prevents the public sector 
from supporting the development of a 
regional innovation system 

Social Issues 

Authentic and traditional society 
characteristics are progressively 
transformed to folklore, commercial 
products vulnerable to negative influences 

Spatial Issues 

Significant pressure to Nature 2000 eco- 
systems and bio-diversity. The necessary 
partnerships for their successful 
management and protection by local 
societies are not easily accepted 

Water resources management models are 
not easily adopted by decision makers, 
on regional level 



54 Islands of Innovation 



ES53 - Balearic Islands 



PALMA DE MALLORCA 



-LORCA M ^ 



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# 

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© EuroGeographics Association for the administrative boundaries 



I Objective 2 
Phasing-out Obj. 2 



In 2003, the population of the Balearic 
Islands was 916.968, representing 2,2% of 
the Spanish population. The density of 
population is one of the highest with 
183,69 inhab/km 2 , with a tendency to 
expanding, this is especially influenced by 
migratory variations. The population is 
very badly distributed, with almost 40% of 
the population living in Palma de 
Mallorca, the capital, making it the 10th 
most populated city in Spain. From i960, 
demographical growth has been 
spectacular, especially in the last five 
years where migratory influx has been 
extremely high. Both factors threaten 
insular sustainability. 

Main economic activities are tourism, 
services and industry. More than 85% of 
the Balearic Gross Value Added (GVA) 
comes from the service sector with the 
highest contribution derived from the 
tourist sector. The industrial sector has 
minor contribution and is fragmented (lots 
of sectors, small companies and a low 
level of technology), representing only 
7,11% of the Balearic GVA. 



Islands of Innovation 5 5 



It is possible to summarize the islands' 
main features from a social-economic 
perspective by carrying-out a SWOT 
analysis: 

The main advantages of the region are: 

• The inhabitants have a culture of 
entrepreneurship and initiative. 

• Historical tradition of exporting and 
trading 

• Historical capacity to creatively adapt 
and to learn from new circumstances. 

• "Quality" image associated with the 
Balearic Islands' businesses. 

• Existence of a natural tourist cluster 
with a lot of potential for encouraging 
innovation. 

• Favourable outside conditions susceptible 
of encouraging the information society. 

• Progressive social awareness in matters 
of sustainable development. 

• Presence of technological centers and 
laboratories, basis for the development 
of the business structure. 

The main disadvantages are: 

• Limited resources and growing 
demographic pressure. 

• Minimal cooperation among the different 
agents of the regional innovation system. 

• Insufficient presence of advanced 
services in companies. 

• Non-existence of a clear and explicit 
business demand when considering 
technological services. 

• Lack of methodological and practical 
references for the definition of an R+D+l 
policy focused on tourism and related 
sectors. 



The main opportunities are: 

• Stable growth of the tourist sector at 
international level. 

• Existence of basic infrastructures and 
high public awareness. 

• Global tendencies to insert ICT and 
innovation into the tourist sector. 

• Political and social desire to focus the 
Balearic Islands' economic growth on 
technology and innovation as a way to 
insure sustainability. 

• The possibility to sell appropriate 
services and technologies for tourist 
activities in emerging areas of the 
European and Worldwide economy. 

The main threats are: 

• The tendency to globalize and disperse 
production is a threat to traditional 
sectors (including tourism) unless we 
greatly entrust to innovation. 

• The seasonal nature of our main 
regional economic activity (tourism). 

• Geographical limitations (pressure that 
it can handle, particularly the coastline) 
to maintain the growth of tourist activity 
if the extensive model of sun and sand 
tourism is maintained. 

• Cultural difficulties to take on the need 
of a systematic approach of the 
innovative process in a population used 
to tourism with pragmatic and short- 
term management. 



56 Islands of Innovation 



t 






% 




^^/ 


V 


< 


BpLAS PALMAS DE^K CANARIA 


X 


© EuroGeographic 


s Association for the administrative boundaries 


H Objective 1 







ES70 - Canary Islands 

The Canaries Archipelago comprises 7 
islands located 1.000 km away from the 
European mainland and has a population 
of 1,6 million inhabitants. 

Due to its location it is included in the 
group of "outermost peripheral regions", 
well recognised in the legal EU framework. 

Due to its difficult geographic conditions, 
the Canary Islands have special needs of 
ICT in order to achieve a greater economic, 
social and territorial cohesion and ensure a 
sustainable development. 

The main disadvantages are: 

• Small and fragmented markets, due to 
the insular fact, with low dynamism and 
lack of equilibrium. 

• Low ICT equipment both in the 
productive and social sectors. 

• Lack of a culture of ICT, in economic and 
social sectors, but also in the territorial 
administration. 

• Low diversification of the economic 
structure, mainly based on Tourism and 
agriculture. 

• Scarce weight of the industrial and 
technological sectors in the territorial 
economy. 

• Very small service enterprises (micro 
SMEs). 

• Enterprises of small value added, more 
based on manpower than on intellectual 
capital. 

• Low structured RDT system, with lack of 
orientation towards innovation. 

• Low potentiality of University-Enterprise 
collaboration. 

• Low level of technological culture and 
use of technology in private enterprises. 

• Low coordination among ICT territorial 
players. 



Islands of Innovation 57 



The main threats are: 

• Danger of loss of competitiveness due 
to the disappearance of key local 
sectors, in particular those which are in 
a mature situation and economic wealth, 
but do not appreciate the need for 
innovation and the potential benefits of 
ICT. 

• High cost of social services (lack of 
budgetary viability). 

• Increasing differences between the 
islands in relation with their geo-strategic 
framework. 

• Environmental impact of technologies. 

• Loss of social cohesion and of cultural 
identity. 

• Apparition of multi-sector monopolies. 

The main advantages of the region are: 

• REF (Canary Islands Economic and fiscal 
regime), allowing for the availability of 
local capital in the development of new 
economic sectors in the islands. 

• ZEC (the Canaries Special Area), which 
can constitute an operational base for 
Canaries' firms, as well as for the 
localisation of foreign enterprises. 

• Environmental and landscape conditions 
that can attract the localisation of new 
enterprises and the development of the 
visual industry. 

• Potentiality of the tourism industry to 
attract the localisation of new enterprises. 

• Availability of ICT agents within the 
territorial administration (persons and 
organisations) 

• ICT agents in the University with 
experience in developing commercial 
projects. 

• Existence of ICT experiences (telemedicine, 
attention to disabled persons, tele-training, 
etc.) 

• Industrial ICT poles and enterprise 
incubators. 



The main opportunities are: 

• Innovation in traditional productive sectors 
(new selling channels and new ways of 
selling). 

• Diversification of the Canaries' economy. 

• Maintain, improve and reduce social 
services costs. 

• Plan national: Info XXI (guidance and 
funding). 

• eEurope Initiative (guidance and funding 
guideline). 

• PDCAN (many of its guidelines and actions 
relate directly to ICT). 

• Careful environmental and landscape 
management. 

• Lowering distance between the islands 
and with Europe and America. 

• Reducing transport needs professional 
for but administrative motivations, etc. 



58 Islands of Innovation 



FR83 ■ Corsica 




© EuroGeographics Association for the administrative boundaries 

I Phasing-out Obj. 1 (till 31/12/2006) 



With its 260.000 inhabitants on surface of 
8.700 km 2 , Corsica posts the lowest 
density of metropolitan France. 

The disabilities of the region are 
connected with the constraint of insularity 
and on its mountainous and partitioned 
relief, inducing difficulties of connection 
and of important equipment. 

The local economy is strongly 
unbalanced and is crossed by numerous 
cleavages: the tertiary sector accounts for 
78% of the jobs, almost non-existent 
industry, agriculture in change, a lack of 
project engineering. 

This official report, such as the figures of 
the gross domestic product per capita and 
of the average income, testify to the 
development delay of the region. 

It is to rectify this situation that the 
European Union committed itself, within 
the framework of the Structural Funds and 
within the framework of the other 
Community policies, to creating the 
conditions of harmonious development of 
the island, in order for it to make better 
use of the wealth which it has. 

The diagnosis which of it is made 
present the Corsica Region as being at the 
same time carrying fragilities to dam up 
and source of potential to be optimised. 

The development of the local potential 
represents an important development 
potential insofar as they constitute a 
strong attractiveness factor. This wealth 
layer has to serve as a levier to develop a 
sustainable development strategy for the 
island. 

The local Authority of Corsica decided to 
encourage the development of innovative 
technologies and the use of new 
information and communication technology 
as tools which can be put at the service of 
the promotion of its identity, of its culture, 
of its environment and of its local 
productions. 



Islands of Innovation 59 



The main advantages of the region are: 

• A location in the Mediterranean arc that 
places Corsica in the middle of the trade 
and passage network 

• An exceptional environmental potential, 
of rich ecosystems, a preserved way of 
life, a renewable energy potential, an 
abundant and quality water resource 

• A high and diversified tourist potential: 
a coast which kept its authenticity, sites 
registered by UNESCO as common 
inheritance of humanity 

• Successes targeted in the sector of high 
quality agri-foodstuff productions 



The main disadvantages are: 

• The constraint of insularity, with its 
chain effects (discontinuity, increase in 
the price of the transport costs of life, 
partitioning of the markets) 

• The weakness of the inland and urban 
transports which accentuates the 
partitioning of the island in about 
twenty micro-regions 

• A too low demographic level, often 
underneath the critical point and 
marked by a strong opposition between 
the disillusionment of the rural and 
mountain areas and the attractiveness 
of the cities of the coast, and between 
the resident and "holiday period" 
people 

• A development delay pointed by numerous 
symptoms: 

> a GDP households income underneath 
7% of the national average 

> unbalanced economy (fragility of the 
SMEs, lack of project engineering, 
marked seasonal variation, tourism to 
be professionalised, almost non- 
existent industry, high weight of the 
public and semi-public sectors) 

> high unemployment rate compared 
with the national average 



The main opportunities & threats are: 

Build an open relation of exchange and 
synergy with the continental regions of 
the Mediterranean arc vis-a-vis markets, 
companies and education institutions: 

Build up the development potential that 
the natural and cultural heritage of 
Corsica constitutes 

Encourage the development of the new 
technologies as a response to insularity 
in identity and exchange search 

Improve the employment situation 



Importance of tourism 
economic activity 



in the insular 



6o Islands of Innovation 



FR91 - Guadeloupe 




© EuroGeographics Association for the administrative boundaries 



I Objective 1 



The region of Guadeloupe is a territory 
marked by a number of characteristics 
which constitute difficulties in its 
development. 

It is an "archipelago" made up of eight 
islands. The island of Guadeloupe constitutes 
"continental Guadeloupe" and play the role of 
metropolis. Guadeloupe's bipolarity is 
between Pointe-a-Pitre (industrial with 50% 
of the jobs), and Basse-Terre (administrative 
with 15% of the jobs). 

There are between 40.000 and 45.000 
companies, of which 90% are very small 
enterprises. 

Marked by the remoteness of the 
metropolis, the region is subject to vigorous 
commercial competition from the Caribbean 
islands under American influence, assembled 
within the CARICOM (Carribean Community). 

The Guadeloupe economy is based on 2 
main activities: tourism (380 MEuros) and 
agriculture (153 MEuros), which by 
themselves, will not be able to give a 
potential activity and employment to the 
working population, even if each one of 
them has development margins. In 
particular, the sector of cruising tourism is 
a sector with high potential, despite the 
hard competition from the other islands, 
subject to projects around nature and 
quality of service. For pleasure sailing in 
particular, the development of new 
services "from beginning to end" has to 
make it possible to propose to the 
customers' one-stop solution for all the 
professionals of the technico-economic 
chain: hiring, maintenance and maintenance 
(cold channels, composite materials, 
motorisation), fuelling, accommodation, 
restoration. There is a number of SMEs in 
the tourist sector, which should be able to 
emerge, structure themselfs, to coordinate 
and intervene in the shipping supply-chain 
with added-value activities. For its part, 
the agricultural activity should be able to 
benefit from alignment of the markets 
permitted by the ICT, to revitalise or 
diversify sectors, insufficiently attractive or 



Islands of Innovation 61 



powerful, or to control the exchanges 
between firms in the region. 

The land transport sector in Guadeloupe 
has a real need for structuring. It is a 
sector proposing a big but insufficiently 
organised offer (more than 500 craftsmen 
on this sector). There still, ICT are at the 
same time a factor making it possible to 
organise the market and to build new 
solutions based on minimum rationalisation 
by cooperation. 

Similarly the harbour facilities are 
potentially carrying spaces of consolidation 
and of development of activities, on which 
ICT will have acceleration effects: in 
particular, the development of the Basse- 
Terre port constitutes a strategic issue for 
the region; similarly, the project of setting 
in place of the EDI (Electronic Data 
Interchange) that ADEMAR in Pointe-a-Pitre 
wants to contribute to the consolidation of 
the activities of grouping and distribution 
of assets and goods in the region. 



The projects carried out in the 
programme of "numerical levelling" of the 
territory which concern the sector of 
teaching and of research have also to 
benefit from the acceleration effects of the 
ICT proposed in the current programme. In 
particular new competences will be 
developed by the companies which will 
enter the new economy. Training will 
accompany the movement started by the 
regional Comptoir de la Nouvelle Economie. 
Similarly the current competences, in the 
service sectors, of tourism and trade, will 
have to be enlarged to practices of ICTs. 
Solutions of the type "Unite mixte" or 
"ecole doctorale" will make it possible to 
carry out operational aspects, falling 
under the cycle of deployment of the 
regional project. 

Generally, all the spheres of activities are 
sponsor development projects in which ICT 
represent a facilitation or acceleration factor: 
networking of cultural establishments, 
diversification of the tourism offer 
(integrated tourism, fisheries, thematic 
stays), inter-municipality and inter-regional 
cooperation, strengthening of the capacities 
for new companies (Dothemare area for 
example, intended to become the excellence 
pole gathering the best activities of the 
region). 

ICT constitute an important development 
levier with which the region intends to be 
endowed to improve its action for regional 
integration, of the activity and of 
employment and to cause and accompany 
pilot operations. 



62 Islands of Innovation 



FR92 - Martinique 




FORT-DE-FRANCE 



© EuroGeographics Association for the administrative boundaries 



I Objective 1 



The economy of Martinique is characterised 
by its very fragmented nature: 

• Largely encouraged by preferential 
agreements dedicated to the primary 
products, the various agricultural 
specialisations which followed each 
other (sugar, pineapples, banana), 
developed without their processing 
being envisaged on the spot. 

• Consequently, the embryonic industrial 
development that Martinique knows was 
done mainly from capital goods and from 
imported manufactured goods. The 
remoteness of the supply and a market 
cumulated in low internal demand resulted 
in the juxtaposition of small enterprises 
benefiting little from the effects of 
convergence and of relocation that 
integration in a single economic market 
involves. 

• Similarly, even if tourism constitutes the 
privileged development axis of Martinique, 
it undergoes an economic crisis due in 
particular to the deterioration of the 
transport facilities, to the roughness of 
the competition from neighbouring 
countries and to the absence of 
articulation with the other sectors of the 
economy. 



This situation results in the existence of a 
multiplicity of very small little structured 
enterprises, this characteristic coupling 
itself with the economic insulation of the 
territory. The remote character constitutes 
indeed a limiting factor to its insertion in 
the major Community networks (i.e. 
research, transport). The development of 
the capacity of technological innovation, 
recommended in the Lisbon strategy, is 
reduced despite a reasonable infrastructure 
and qualification level. 

The result is an employment situation 
which, even if clearly improuved in recent 
years (with an unemployment rate passing 
from 29% in 1998 to 22% in 2004), 
remains more deteriorated than in the 
other French regions. This context is an 
increasing source of marginalisation of 
certain population fringes. 

The economic structure of Martinique 
also reflects the very heterogeneous 
spatial territory occupation, characterised 
by a high demographic and economic 
concentration around the capital, to the 
detriment of the rural areas of the 
territory. 

In such a context, the development of the 
Information Society and the rational use of 
the ICT, constitute an opportunity for 
Martinique: 

• owing to the capacity of reduction of 
space and of the distances, to break the 
insulation of the major international 
networks. The comparative advantage 
certain in terms of technological 
development in relation to the 
neighbours of the Caribbean constitutes 
an asset within the framework of this 
expansion strategy 

• as an essential factor of adaptability of 
the manpower, like a powerful means to 
reduce the economic and social fracture 
of Martinique 

• like an economic and spatial territory 
tool, thus mitigating the enclavement of 
numerous areas. 



Islands of Innovation 63 



FR94 - Reunion 



Reunion is a mountainous island located 
in the Indian Ocean, the most populated 
territory of the four overseas French 
regions with a surface of 2.500 km 2 and a 
population of around 710.000 inhabitants. 

The main characteristic of the Reunion is 
its strong demographic growth who is 6,5 
times higher than that of EU-15. The less 
than 19 years old account for almost 40% 
of the total population, thus the genuine 
challenge of the island is the future of its 
youth. 

Despite an important economic 
dynamism and a constant rate of net job 
creation, the unemployment rate is high at 
37,7% in 1998. The local productive 
economy remains insufficient and only the 
sectors of tourism and agri-foodstuff have 
a significant place in it. 

The main strengths of the island lie in 
the youth of its population, in the 
existence of modern infrastructures, in an 
economy with strong growth and rich in 
employment as well as in the existence of 
family solidarity. 

Under the main weaknesses, we can note 
the high demographic pressure on a 
reduced territory, the additional costs 
connected with its insulation and 
remoteness, the weight and the structure of 
unemployment and finally the development 
of precariousness. 

The social disparities between women 
and men, young people and adults, 
unemployed and employed, leads to a 
very fragile social cohesion. 




© EuroGeographics Association for the administrative boundaries 



I Objective 1 



64 Islands of Innovation 



ITG1 - Sicily 




S EuroGeographics Association for the administrative boundaries 



I Objective 1 



Among the most developed economic 
sectors of the region is agriculture, the 
agri-foodstuff, the craft industry. The 
region has in addition human resources 
with high cultural level, rather flexible 
manpower and at low prices, several 
university/research structures present 
throughout the region and a regional 
Science park, and training structures in 
specialised sectors connected with 
industry. 

However the Sicilian economy is 
characterised by structural deficiencies 
and an inveterate weakness of its 
scholastic, scientific and training system. 
Indeed, even if excellent examples exist in 
the sectors mentioned, they are not 
incorporated enough into the productive 
structure of the region. 



According to the regional strategic 
Framework for the Development of the 
Information Society (2002), the 
Information Society developed in Sicily in 
an incoherent and fragmentary way 
through individual initiatives without a 
coordinated plan. The same phenomenon 
occurred in the field of companies 
development. With the exemption of some 
large-sized regional companies, the 
majority of them are not concerned with 
innovation and have no contact either 
with the experts or with the sources of 
innovation. In the same way, the 
organisations in the service of the 
companies in the field of research and 
technology transfer have only few contacts 
with the world of production, especially 
with small and very small enterprises. 

Other weaknesses are the insufficient 
financial and human resources, the 
procedural obstacles, the insufficient 
computerisation level of the public offices. 
Almost non-existent are the contacts 
between the companies and the world of 
training and also between companies. The 
activity of the local public offices is not 
coordinated with that of the research 
structures and the entrepreneurs of the 
region are very defying with regard to the 
public offices. 

Among the weaknesses of the 
companies, there is their insufficient 
tendency to horizontal cooperation, their 
predominant orientation towards the local 
market, their weak competitiveness, the 
structural incapacity of SMEs to develop a 
product able to penetrate the international 
markets, the limited systems of quality 
certifications. Any expansionary measure 
of the economy should also consider the 
insufficiency of the structures and of the 
networks and services for agriculture and 
the other productive sectors of the region. 

The current technological training 
centres in Sicily are isolated and do not 
have connections with the companies. 



Islands of Innovation 65 



ITG2 - Sardinia 



Located in the middle of the Mediterranean 
sea, Sardinia is an island with an area of 
24.090 km 2 and a population of about 
1.600.000 inhabitants. 

Nowadays, tourism has become the 
most important economic development 
factor for the region, above all because of 
the wonderful white sand beaches and 
transparent sea water, integrated with its 
historical and cultural sites, which attract 
a great amount of tourists, especially 
during the summer. 

Sardinia has many remains from ancient 
civilizations; in particular, the megalithic 
truncated-conic towers called "nuraghi" 
which were built in the 1.800 BC, and that 
are unique of Sardinia. There are also 
ancient Phoenician settlements (the best 
known are nora and Tharros) and many 
other interesting archeological and 
historical attractions as a result of the 
many dominations that the island has 
encountered through centuries (among 
others: the Punic, the roman, and the 
Spanish). 

The distinctive features of the inland 
landscape vary from the mountains, with 
the typical Mediterranean flora (the 
"macchia mediterranea") and the wild 
fauna (there are also deer and boars), to 
the cultivated hills and plains (in particular 
there are vineyards, olive groves, fields of 
wheat, citrus orchards, cork-oakcork 
groves, etc.). 

However, the most traditional activity of 
Sardinian people remains sheep-breeding. 
Some typical products are increasingly 
exported all over the world, like a few 
selected wines and the "pecorino" (sheep 
milk cheese). 



M 




© EuroGeographics Association for the administrative boundaries 



I Objective 1 



After the second World War, 
industrialization absorbed a considerable 
amount of people that was engaged in the 
traditional rural activities, causing an 
impoverishment of the country and of 
villages with a small population, while the 
bigger towns became overcrowded. The 
industrial crisis experienced in the last 
decades, has contributed to worsen the 
economical situation. 

At present, regional policies try to 
improve the infrastructure and services 
related to traditional activities. The 
objective is to stop people's migration to 
larger cities or to the continent and, when 
possible, to bring them back. 

Another important policy aspect is the 
aim to make the inland part more 
attractive for tourism, in order to create 
new entrepreneurship and extend the 
tourism period beyond the summer 
months. 

Insularity is a strong limitation to local 
economy development, as well as to a 
better exploitation of the historical, 
geographic and demographic peculiarities 
that the Region has. 



66 Islands of Innovation 



The main advantages of the region are: 



• Natural resources 

> The beauty of 
uncontaminated 

> Protected areas 
marine) 



the scenery, often 



(both terrestial and 



• Human resources 

> Increase of the educational level in new 
generations (much more women then in 
the past) 

• Cultural resources 

> Exploitation of cultural heritage 
(above all, of the important historical- 
archeological sites) 

• Production system 

> Tourism and biological agricultural 
productions 

• Cities and organisation of the territory 

> Better distribution of services in the 
territory (more new services in the 
mid-size cities than in the biggest 
ones) 

• Telecommunications 

> Several entrepreneurial initiatives 

> Services development based on Digital 
Terrestial Television technologies 



• Cities and organisation of the territory 

> Loss of population in rural and inland 
areas 

> Lack of information centers in small 
cities 

• Telecommunications 

> Inadequate tele- 
communication infrastructures 



The main opportunities are: 

• Natural resources 

> Tourism enhancement & differentiation 
of tourist's target 

• Human resources 

> Reorganization of the centers for 
public employment and a new political 
approach to development 

• Cultural resources 

> Improvement of cultural services based 
on ICT solutions 

• Production system 

> The natural environment and biological 
productions could represent an 
attraction for foreign investment 

• Telecommunications 

> New regional policy for ICT development 



The main disadvantages are: 

• Human resources 

> High level of unemployment (above all 
of women) 

> Difficulty in the implementation of a 
successful policy for new jobs 

• Cultural resources 

> Poor cultural services 

• Production system 

> The production system is based on 
small companies with endemic problems 
of organization, capitalization and 
marketing 

> Tourism is "summer and coastal areas 
concentrated" 



The main threats are: 

• Natural resources 

> Resources' impoverishment because of 
non sustainable utilisation 

• Human resources 

> Social isolation of weak categories 

• Production system 

> Competition with other attractive 
areas in the Mediterranean 

• Cities and organisation of the territory 

> Population decrease of the inland areas 



Islands of Innovation 67 



PT20 ■ Azores 

The Archipelago of the Azores, made up by 
nine populated islands, is located in the 
Atlantic Ocean and expands between 36 
55' and 39 43' of northern latitude and 24 
46' and 31 16 1 of Oest longitude. The 
distance from the coasts of the European 
continent is approximately 1.500 km, 3.900 
km of the subcontinent north-american and 
approximately 3.500 km from Brussels. The 
total surface of the territory is 2.333 km 2 , 
which corresponds to 2,5% of the total 
Portuguese national territory. The exclusive 
economic area of the Azores is of 
approximately 938.000 km 2 . 

The Azores constitute an autonomous 
Region of the Portuguese Republic, having 
a policy-administrative statute with clean 
organisations of government, such as the 
legislative Parliament and the regional 
Government. 

The resident population in the Azores 
does not exceed the 242.000 inhabitants. 
The gross domestic product per capita 
accounts for approximately 53% of the 
European average (EU-i5=ioo). The specific 
disabilities result mainly from its 
geographical insulation. 



W* 



A 



PONTA DELGADA 



© EuroGeographics Association for the administrative boundaries 



I Objective 1 



The main advantages of the region are: 

• Geographical location / Territorial 
configuration 

> Geostrategic position in the northern 
Atlantic 

> Characteristic of the landscape 

> Strong presence of the sea - great 
extension of the EEZ and potential of 
non-exploited resources 

• Human resources 

> Young population 

> Increasing participation of women in 
the labour market 

• Economy 

> Earth and climate conditions favourable 
for agriculture 

> Natural conditions for the development 
of the fisheries sector 



> Potential for differentiated leisure 
activities 

> Good origin image of the products 
(natural and ecological production) 

Structuring of the Territory 

> Harbour and airport infrastructures 
throughout the islands 

> Insertion (immediate future) in an 
intercontinental communication network 
through the underwater optical fiber 
cable 

Inheritance 

> Wealth and variety of local historical 
and cultural assets 

> Population desire for cultural expression 
and festivity manifestations (music, 
theatre, folklore) 



Islands of Innovation 



The main disadvantages are: 

• Geographical location / Territorial 
configuration 

> Insulation - Additional cost in the 
supply and export functions 

> Vulnerability to natural forces, such as 
atmospheric or seismic 

> Territorial discontinuity 

> Broken orography 

> Reduced capacity of scientific 
accompaniment and economic use of 
maritime resources 

• Human resources 

> Weak qualifications of active population 

> Reduced demographic potential 

> Low education rate 

• Economy 

> High external dependence level 

> High specialisation of the economic 
basis 

> Exiguity, fragmentation and remoteness 
of the regional market (9 micro 
markets dispersed and moved away 
from the major producing and 
consuming centres) 

> Debility of the foundation of 
entrepreneuriat 

• Structuring of the Territory 

> Insular and most remote condition 
prevents access to the main European 
and world networks which ensure 
internationalization 

> Need for multiplication of basic 
infrastructures and equipment 
(effectiveness thresholds, capital 
expenditure and high handling / use 
costs) 

> Difficulties and additional cost on the 
mobility of persons 1 and their assets 

• Inheritance 

> Difficulties on the consolidation and 
diffusion of initiatives and cultural 
events 

> Some introduction of dissonant 
architectonic elements 



The main opportunities are: 

• Affirmation of the archipelago of the 
Azores as the Atlantic border of Europe 

• Sea deposits a wide range of resources 

• Possibility of insertion of the Azores to 
the science and technology networks, 
especially volcanology, oceanography, 
meteorology, inter alia 

• Increasing tendency for the quality 
assurance and differentiation of products 
mainly those in which the natural and 
ecological component can be felt, such as 
touristic foodstuffs 

The main threats are: 

• Operation of the world economy as a 
network saving, which devalues the 
geographical position of the Region and 
gives priority to access to world 
networks 

• Interregional inequality in terms of 
capacity of innovation, since the 
concentration of the centres of excellence 
are in the centre of Europe 

• Concentration of the intercontinental 
connections on a small number of 
airport nodes, in the centre of Europe 
and in some more efficient ports, while 
marginalizing infrastructures and 
equipment in the peripheral regions 

• Disappearance of the companies of the 
traditional sectors because of increasing 
difficulties of survival of the small 
agriculture 



Islands of Innovation 69 



PT30 ■ Madeira 



The main advantages of the region are: 

• Existence of a nature and landscape of 
major value, diversified and protected 
inheritance. 

• Importance of Madeira as an 
international tourist pole integrated into 
networks of large tourist operators. 

• Existence of weather favourable to the 
practice of the horticultural crops, 
including floriculture, and fruit-bearing, 
moderate crops as well as subtropical. 

• Specific regional product development 
(wine, embroideries, osier, subtropical 
fruit, flowers). 

• Renewed and re-measured fisheries fleet 
according to the known fishery 
resources and existence of human 
resources with better qualifications. 

• Important pole of reception and of 
scientific and technological information 
and technological transfer dissemination 
from the Madeira and Madeira Tecnopolo 
University. 

• Demographic structure with a rate of 
youth higher than the average, both 
national and Community. 

• Capacities of vocational training (in 
particular in the sectors of tourism and 
of agriculture) from training structures 
and the vocational schools, with 
progressive improvement of the 
intermediate qualifications and of the 
level of the workers' education. 







© EuroGeographics Association for the administrative boundaries 



I Objective 1 



• Progress recent at the level of the main 
roads, structuring of the territory. 

• Airport infrastructures of quality. 

• Strategic management of hydrous 
resources on the Madeira (contrasting 
with the scarcity of these resources in 
Oporto Santo). 

• Privileged connections with the ex- 
emigrants' Communities (South Africa 
and the Americas). 

• Self government which allows a better 
adequacy of the policies to regional and 
local realities. 



70 Islands of Innovation 



The main disadvantages are: 

• Insular situation, location moved away 
from the central regions and exiguity of 
the national market. 

• Major dependence with respect to the 
Continent with regard to the connections 
with the European Union and the rest of 
the World and increased transport costs. 

• High structural constraints of a permanent 
nature arising from characteristics of the 
physical structure of the territory. 

• Major sensitivity and vulnerability at the 
environmental level. 

• Small size of the territory making 
difficult obtaining effectiveness levels of 
certain equipment and services. 

• Little diversified, weak productive very 
vulnerable and specialisation structure 
development of the value chain in a 
context of major opening on the outside 
but fields of the weak distribution 
chains. 

• Agricultural structure of very small 
dimension. 

• Inadequacy between demand and 
qualification supply and persistence of a 
major weakness of the qualitative 
manpower structure. 

• Insufficiency of infrastructures and of 
training equipment, at the various 
levels, in particular in technological and 
professional teaching. 

• Defective conditions of intra-regional 
accessibility, in particular at local level 
and between the islands. 

• Insufficiency at the level of the harbour 
and of support infrastructures for the 
activities connected with the sea. 

• Insufficiency of the infrastructures and of 
the services in the fields connected with 
production technologies, on quality and 
on certification. 



• Settlement model very differentiated in 
the regional and, in parallel, standard 
space of very dispersed and split up 
settlement and excessive concentration 
on the southern coast and, in a more 
accentuated way, in the region of 
Funchal. 

• Defective structuring of the urban 
network, with the existence of 
deteriorated urban areas and 
weaknesses in the urban-rural report. 

• Activity of the fisheries centered on a 
number reduces of species and 
vulnerabilities vis-a-vis the fluctuations 
of the migratory species captures (in 
particular the tuna). 

• Environmental cleansing infrastructure 
lack and costs increased for the respect 
of environmental quality standards (i.e. 
for solid waste). 



Islands of Innovation 71 



The main opportunities are: 

Development of the privileged position 
in Atlantic space and conditions for a 
participation in knowledge, exploration 
and the use of the oceans. 

The commercial opportunities facilitated 
by the opening of new ways for the 
traditional products and certified within 
a given geographical framework and by 
the existence of a request segment 
which develops healthy food. 

Potential of the reform of the CAP 
(strengthening of the importance of the 
agro-environmental measures) for a 
development of the role of agriculture in 
maintenance and the conservation of 
the characteristic human landscape of 
the Region and in ecological and social 
balance. 

Renewal of the competitive advantages 
of the tourism facility, by diversifying 
the offered tourist product (congresses 
and trips offered by the companies, 
sporting tourism, golf and water sports, 
active tourism, ecotourism, cruising and 
group tourism having scientific interests 
connected with the environment). 

Strengthening of the tourist request 
following the extension of the track of 
the Funchal airport. 

Improvement of the value chains in the 
economic activities: rationalisation of 
the distribution chains, production and 
advanced service integration. 

Comparative advantages, in relation to 
the continental regions, in the field of 
the use of renewable energy resources 
(in particular of hydrous, solar, wind 
origin and of the biomass) and of the 
rational use of energy by means of 
systems of management and of more 
effective equipment. 



• Strengthening of the scientific and 
technological structures, created recently 
(Madeira and "Madeira University 
Tecnopolo"), of the interface with the 
economic activities and of the participation 
in Research and Development networks. 

• Development of the channel of the 
building (housing segment, improvement 
of the urban inheritance and conservation/ 
restoration of infrastructures, in particular 
road). 

• Privileged conditions (recognised by 
international organisations) for knowledge, 
the conservation and the development 
of the biodiversity. 

The main threats are: 

• Increase in the points of dissonance 
landscape owing to situations of 
intervention without rules and of 
pressures on the fragile natural 
environment. 

• Loss of characterisation of the landscape 
and increase in the risks connected with 
factors of geological nature and with 
phenomena of erosion, by the difficulty 
of the maintenance of the agricultural 
activity vis-a-vis liberalisation and to the 
globalisation of trade. 

• Deterioration of the conditions of 
feeding of the water tables. 

• Loss of the competitiveness of the 
tourist product and of the destination if 
the traditional image of quality is not 
maintained. 

• Loss of competitive advantages (vis-a- 
vis the changes which take place on the 
international scene) which could 
compromise the foreign investment 
collecting strategy and of development 
of international services. 

• Risk of disappearance of companies, 
linked in particular to the traditional 
activities. 



72 Islands of Innovation 



FI20 - Aland Islands 











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Aland is an autonomous region under the 
sovereignty of Finland since 1921. 

Aland is well known for its traditional 
shipping industry and is a popular area for 
tourism. 

Aland joined the Nordic council in 1972 
and the European Union with the 
accession of Finland as a Member State in 
1995. 

Situated between Finland and Sweden, 
with 6.500 islands and islets rising from 
the Baltic Sea, three quarters of the total 
area of 7.000 km 2 is water. 

A population of nearly 26.500 live either 
in the one town of Mariehamn, which has 
approximately 10.500 inhabitants, or in one 
of the 15 other municipalities, with about 
65 of the islands being inhabited. The 
population density is very low compared to 
the rest of Europe, about 16 inhabitants per 
km 2 . 

The Treaty of accession for Finland to 
the EU included a special protocol relating 
to Aland. The protocol excludes Aland 
from the tax union and the obligation to 
harmonise indirect taxes with the aim 
preserving the local economy. It also 
allows tax-free sales in the transportation 
of passengers by air and sea to and from 
the Aland Islands. This has been of great 
importance for the shipping industry and 
for tourism in Aland. 

Taxes in the Aland Islands are levied by 
the Finnish State, except for taxation in 
the municipalities and some special 
regional taxes. The 1991 Act of Autonomy 
expanded the public economy of Aland, 
which now receives 0,45 percent of the 
State revenue as a lump sum. In addition, 
tax express train exceeding 0,50 bore 
redistributed are. Income from the lump 
sum covers about 70 percent of total 
income in the budget government (2002). 



Islands of Innovation 73 



The public sector covers almost 20 
percent of the Gross Regional Product 
(GRP). Service public cuts a high share of 
employment (40 bore) and are expanding. 
This is also a measure of high living 
standards and a modern welfare sector in 
Aland. Health services and education up 
to university level are of a high quality. 
The GRP per capita is one of the highest 
in the Nordic region. 

Traditionally, the Aland economy has 
been based on agriculture, fishing and 
forestry. These are still importing for 
regional settlements and ace has other for 
basis industries, even though employment 
in this area has reduced since accession 
to the EU. 

As an island, trade has always been 
important for Aland and the international 
High Sea shipping has its roots in the late 
19 th century. The shipping industry is still 
an important employer both in the islands 
and in other regions in Finland. The total 
production value of shipping generated by 
Aland companies is over 30 percent of the 
total value generated in the Aland 
economy. 

The number of people employed in the 
manufacturing industry is fairly small and 
individual companies are small aces well. 
Even if the business in Aland is low - 
rather than high-technology recent 
expansion in the technology sector is a 
promising trend for new employment, at a 
time when others sectors are in decline. 

Tourism is strongly seasonal but recent 
efforts to expand sports, health-care, and 
cultural activities will hopefully serve to 
increase tourism in the low season. 

Related to trade, shipping and tourism, 
banking, insurance and financial services 
play an important role in the economy of 
the Aland Islands. 



All islands have as a common element 
the sea as their natural border and 
consequently a common problem of 
transport and communication. Most 
islands are also vulnerable to changes in 
the environment as they depend on 
maritime resources. 

Still the Aland economy has good 
prospects for the future due to a stable 
labour market, a skilled work strength, 
with high standard and living-room of 
have single entrepreneurial spirit. 

Cohesion policy is of great importance. 
On the one hand Aland has a fairly small 
natural resource base related to fishing, 
forestry, agriculture and tourism. On the 
other hand the welfare system, the social- 
economic and regional balance has 
constituted a platform for the development 
of social and human capital both in 
culture and business. 



The main advantages of the region are 
welfare, autonomy and entrepreneurship 

The main disadvantages are 

small economic base, high prices, lack of 

internal competition 

The main opportunities are 
diversification, cooperation, learning in 
the knowledge society 



The main threats are 
weakening external links and 
social and regional cohesion 



lack of 



74 Islands of Innovation 



Annex 3 

Glossary of Terms 
& Abbreviations 



Eu-15 / Eu-25 

Euro-jargon acronyms referring respectively to 
the 15 and 25 European Union (EU) Member 
States (MS) before and after 01/05/2004. The 
EU-15 MS were: Belgium, France, Germany, 
Italy, Luxembourg, the Netherlands, Denmark, 
Ireland, the United Kingdom, Greece, Spain, 
Portugal, Austria, Finland and Sweden. 

European Regional Development Fund (ERDF) 

The ERDF is intended to help reduce imbalances 
between regions of the EU. The Fund was set up 
in 1975 and grants financial assistance for 
development projects in the poorer regions. In 
terms of financial resources, the ERDF is by far 
the largest of the Structural Funds. 

Objectives 1 and 2 

Structural funds focus assistance available under 
the Community's regional policy on crucial 
development problems under priority objectives. 

Objective 1 promotes the catching-up of the 
economies of regions whose development is 
lagging behind. It is "regionalised" in that it 
applies to statistically demarcated regions. 
Only those whose per capita Gross National 
Product (GDP) is less than 75% of the 
Community average are eligible. The seven 
"outermost" regions, the areas in Sweden and 
Finland with very low population density and 
Northern Ireland also receive assistance. In all, 
Objective 1 covers sixty or so regions in 
thirteen Member States. Transitional support is 
also available over a seven-year period for the 
regions previously eligible between 1994 and 
1999 and a performance reserve for the most 
virtuous regions has been set up. Objective 1 
receives 70% of the structural funds' budget 
(i.e. €137 billion over seven years), which is 
broken down between the four funds (ERDF, 
ESF, EAGGF Guidance Section and FIFG). Basic 
infrastructures, the development of human 
resources, investment in research and 
innovation, and the information society are the 
four main priority areas. 

Objective 2 contributes to the economic and 
social conversion of regions in structural 
difficulties. It too is regionalised: the demarcation 



of eligible areas depends both on national and 
European population ceilings (18% of the 
Union's population) and on specific socio- 
economic criteria. Four categories of eligible 
area are defined: areas undergoing economic 
change in industry and the service sector, 
declining rural areas, urban areas in difficulty 
and depressed areas dependent on fisheries. 
Since all their territory is eligible under 
Objective 1, Greece, Ireland and Portugal do not 
qualify for assistance under Objective 2. 
Transitional support is also available for the 
regions previously eligible under Objectives 2 
and 5(b) during the period 1994-1999. The 
Objective 2 budget amounts to €22,5 billion 
over seven years (11,5% of the total budget) 
and is financed by the ERDF and the ESF. 

Structural Funds (SF) 

The EU's Structural Funds are administered by 
the Commission to finance Community structural 
aid. They comprise the Guidance Section of the 
EAGGF for agriculture, the Regional Fund for 
structural aid under the regional policy (ERDF), 
the Social Fund for social policy measures (ESF), 
and the Financial Instrument for Fisheries (FIFG). 
Financial support from the Structural Funds 
mainly goes to the poorer regions to strengthen 
the Union's economic and social cohesion so 
that the challenges of the single market can be 
met right across the EU. 

Operational Programme (OP) 

It means the document approved by the 
Commission to implement a Community support 
framework and comprising a consistent set of 
priorities comprising multiannual measures and 
which may be implemented through recourse to 
one or more Funds, to one or more of the other 
existing financial instruments and to the EIB. An 
integrated operational programme means an 
operational programme financed by more than 
one Fund. 

Community Support Frameworks (CSFs) 

The Community Support Frameworks coordinate 
European Union regional activities, occasionally 






Islands of Innovation 75 



involving the four Structural Funds (ERDF, ESF, 
EAGGF, FIFG) and the European Investment Bank 
(EIB). In each case, however, the projects must 
be incorporated into plans already developed by 
national authorities, regional authorities and 
their economic partners. 

Sustainable development 

The concept of sustainable development refers 
to a form of economic growth which satisfies 
society's needs in terms of well-being in the 
short, medium and - above all - long terms. It is 
founded on the assumption that development 
must meet today's needs without jeopardising 
the prospects of future generations. In practical 
terms, it means creating the conditions for long- 
term economic development with due respect 
for the environment. The Copenhagen world 
summit for sustainable development (March 
1995) stressed the need to combat social 
exclusion and protect public health. Sustainable 
Development was explicitly referred for the first 
time to a recital in the Treaty of Amsterdam. 

Managing Body (of a PRAI) 

An organisation assigned to carry out the 
management and administration of a Regional 
Programme of Innovative Actions. 

Managing Authority (of the ROP) 

A decentralised national structure assigned to 
carry out the management and administration 
of a Regional Operating Programme. 

Paying Body (of a PRAI) 

An organisation assigned to carry out payments 
for a Regional Programme of Innovative Actions. 

Paying Authority (of the ROP) 

It is one or more national, regional or local 
authorities or bodies designated by the Member 
State for the purposes of drawing up and 
submitting payments applications and receiving 
payments from the Commission. The Member 
State shall determine all the modalities of its 
relationship with the paying authority and of the 
latter's relationship with the Commission. 



NUTS classification 

The Nomenclature of Territorial Units for 
Statistics (NUTS) was created by the European 
Office for Statistics in order to create a single 
and coherent structure of territorial distribution. 

Small and Medium-sized Enterprises (SME) 

An SME is defined by the European Union as an 
independent company with fewer than 250 
employees and either an annual turnover not 
exceeding €40 million or a balance sheet not 
exceeding €27 million. 

SWOT analysis 

The SWOT analysis is a technique that compares 
internal Strengths and Weaknesses against 
external Opportunities and Threats. 

European Commission (EC) 

The European Commission (also known as the 
"Commission") is a politically independent 
collegial institution which embodies and 
defends the general interests of the European 
Union. Its virtually exclusive right of initiative in 
the field of legislation makes it the driving force 
of European integration. It prepares and then 
implements the legislative instruments adopted 
by the Council and the European Parliament in 
connection with Community policies. 

The Commission also has powers of 
implementation, management and control. It is 
responsible for planning and implementing 
common policies, executing the budget and 
managing Community programmes. As 
"guardian of the Treaties", it also ensures that 
European law is applied. 

The Commission is appointed for a five-year term 
by the Council acting by qualified majority in 
agreement with the Member States. It is subject 
to a vote of appointment by the European 
Parliament, to which it is answerable. The 
Commissioners are assisted by an administration 
made up of Directorates-General and specialised 
departments whose staff are divided mainly 
between Brussels and Luxembourg. 



j6 Islands of Innovation 






Outermost regions (RUP) 

There are seven "outermost regions": Guadeloupe, 
French Guyane, Martinique and Reunion (the four 
French overseas departments), the Canaries 
(Spain), and the Azores and Madeira (Portugal). 
Those regions are distinguished by their low 
population density and considerable distance 
from mainland Europe. Their specific location 
makes them European bridgeheads for fostering 
trade relations with their non-EU neighbours, 
most of whom are less-developed countries. 
Above all, on account of those regions, the 
maritime territory of the European Union is the 
world's largest with an economic zone covering 
25 million km 2 . 

The outermost regions are the subject of a 
Declaration annexed to the EC Treaty and may 
benefit from specific measures on the basis of 
Article 299 of that Treaty. This Declaration 
acknowledges their considerable structural 
backwardness. In addition, all the outermost 
regions are eligible for regional and social 
policy support measures under Objective 1 for 
the period from 2000 to 2006. The Declaration 
provides for the possibility of adopting specific 
measures to assist them as long as there is an 
objective need to promote their economic and 
social development. In addition, Article 299 of 
the Treaty authorises the Council to adopt 
specific measures laying down conditions for 
applying the Treaty and common policies to the 
outermost regions. 

Directorate-General (DG) 

The Commission's staff is organised into 
departments, known as "Directorates-General" 
(DGs) and "services" (such as the Legal Service). 
Each DG is responsible for a particular policy 
area and is headed by a Director-General who is 
answerable to one of the commissioners. 



Euro-Drachma exchange rate 

1 Euro = 340,750 Greek Drachmas 



Islands of Innovation yy 



Annex 4 

Contacts, Bibliography 
& Web resources 



For more information on Regional Programmes 
of Innovative Actions at the EU level contact 
should be made with: 



European Commission 

Directorate General Regional Policy 

Directorate Thematic development, impact, 

evaluation and innovative actions 

Unit Innovative Actions 

B-1049 Brussels, Belgium 

http://ec.europa.eu/regional_policy/ 

in nova tio n/in dex_ en. htm 

E-mail: regio-innovative-actions@ceceu.int 

Fax: +32 (2) 2962473 



INNOVATIVE ACTIONS 

Guidelines for the Regional Programmes of 

Innovative Actions of the European Regional 

Development Fund 2000-06 

http://ec. europa. eu/regional_policy/sources/doco 

ffic/official/guidelines/innovac_en.htm 

Map of the Regional Programmes of Innovative 
Actions 

http://ec.europa.eu/regional_policy/ 
innovation/cartes/iamap_prog.pdf 

Map of the Networks of the Regional 
Programmes of Innovative Actions 
http://ec.europa.eu/regional_policy/ 
innovation /cartes Ziamap_net.pdf 

Library of Innovative Actions 1994-99 
http://ec.europa.eu/regional_policy/ 
innovation/innovating/guide. htm 

TECHNOLOGICAL INNOVATION 

Regional Innovation Strategies under the ERDF, 
Innovative actions 2000-2002, 30 projects RIS 
and RIS+ analysed and lessons drawn from 8 
years of experience 

http://ec.europa.eu/regional_policy/ 
innovation /pdf/guide_ris_final.pdf 

Creating smart systems, Guide to Cluster 
strategies in less favoured regions 
http://ec.europa.eu/regional_policy/ 
innovation /pdf/guide_rosenf eld_final.pdf 

Related websites: 

• www.eriknetvvork.net/ 

• www.rinno.com 

• www.innovating-regions.org 

• www.cordis.lu/innovation 

• www.oecd.org 



INFORMATION SOCIETY 

Concise guide to the regional initiatives for the 
information society 

http://ec. europa. eu/regional_po[\cy /innovation /pdf/ 
libraryZstrategy_sustdev_en.pdf 

Final Report for the Thematic Evaluation of the 
Information Society 

http://ec. europa. eu/regional_policy/sources/docg 
enet /evaluation /doc/information_society.pdf 

Ex-post evaluation of the RIS, RTTs and RISI - 
innovative actions for the period 1994-99 
http://ec. europa. eu/regional_policy/sourcesdocg 
ener /evaluation Zrado_en.htm 

Related websites: 

•www.ianis.net/ 
•www. cordis, lu/ist/ 

• www. europa. eu. in t/information_society/index_ 
en. htm 

REGIONAL IDENTITY AND SUSTAINABLE 
DEVELOPMENT 

Communication from the Commission: A sustainable 
Europe for a better World: A European Union 
Strategy for Sustainable Development (May 2001) 
http://ec.europa.eu/regional_policy/ 
innovation /pdj library Zstrategy_sustdev_en.pdf 

Communication from the Commission: Towards a 
global partnership for sustainable development 
(February 2002) 

http://ec. europa. eu/regional_poWcy innovation /pdf /I 
ibrary/globalpartnet _sustaindev_en.pdf 

Related websites: 

•www.sustainable-euregions.net/ 
•www. un. org /esa/sustdev findex.html 



78 Islands of Innovation 



Islands of Innovation 



Innovation is not just based on research and development. Innovation depends also on 
organisational structures, social capital, economic theories, communication techniques 
and human knowledge. It is now widely accepted that the nature of innovation is 
changing in the knowledge-based era. 

This ubiquitous nature of innovation policy is one of the obstacles to effective 
innovation policy. Public administrations are arguably too conservative in developing 
innovation policy, because they tend to stick too rigidly to orthodox definitions of 
departmental "territory". Dealing with innovation as a policy without a well-defined 
"territory" or an administrative home is a major challenge to policy makers in the 
Member States and at the Commission. 

We cannot assume that established policies for encouraging innovation are adequate 
to the new conditions. Nor can we assume that the ways in which other policy areas 
have taken innovation into account are still adequate. Lessons can be drawn from 
experiences in different countries and different policy areas. There may well be synergies 
between and across policy areas, too, so that coordinated reforms could have more of 
an impact than one-off instances. 

In parallel, we know that in terms of turnover, tourism is the biggest economic sector 
in the world. In the European Union, the industry employs directly around 10 million 
people and account for up to 6% of the Community GDP. The tourism industry is of 
particular interest for all islands communities. 

Having the above in mind the region of South Aegean prepared an ambitious Regional 
Programme of Innovative Actions, entitled ISTOS: Innovation for Sustainable Tourism and 
Services. The philosophy of the programme is to create the right environment for 
sustainable development by embedding innovation in the local business culture. 



Elias Kotiadis 
President of the Chamber of Commerce of Dodecanese 



Islands of Innovation 79 



Nota Bene 

Every care has been taken in the preparation of the Islands of Innovation publication and the 
information is provided in good faith. Neither the European Commission and/or the Region of 
South Aegean nor any person acting on their behalf is responsible for the use which might be 
made of the information contained in this publication. Any information given does not necessarily 
reflect the official position of the European Commission and/or the Region of South Aegean. In 
this regard, it should be noted that the information provided is considered to be of a preliminary 
nature and users should contact the competent authorities and other public or private 
organisations for more detailed information or for advice on particular courses of action. 

To improve the content of this document, programme managers and project coordinators are 
requested to inform Dimitra Tsarouxi (dt@baconsult.gr) of any update or modification of the 
information presented herein. 

Acknowledgements 

Our special gratitude goes towards the Region of South Aegean for accepting to produce this 
publication. 

We would like to thank all Regional Programmes of Innovative Actions managers for their continuous 
submission of updated information concerning their respective projects. 

Many thanks are also due to Colibri Ltd for the creative advice provided during the conception of 
this publication as well as the subsequent professional typesetting. 

Finally least but not last, we could like to show our appreciation to everybody who has contribute 
to this endeavour. 



Islands of Innovation 



A publication of 

ISTOS 

Regional Programme of Innovative Actions 

Region of South Aegean 



Printed in Greece - July 2006 
ISBN: 960-89353-0-X 



For additional copies, please email: dt@baconsult.gr 



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