Benchmark Study 1

IPP BENCHMARK REPORT
V. 1.0
general conditions.
With regard to internationalization and innovation, the first Benchmark Report has identified a certain
number of challenges that all IPP regions must face. They are:
Similarities:
• A low R&D intensity of local businesses due to their small size whereby it has to be further
investigated whether the generally low level of R&D expenditure in small and medium sized
companies is due to a general lack of innovation activity, or whether this is a consequence of a
small workforce in which there is no clear division of functions between innovation, product
development and production.
• A dominance of public expenditure on innovation and internationalization policy by the IPP regions,
that particularly focuses on the increase of the innovation rate of the business sector of the IPP
regions
• The lack of involvement of the local level in international and European co-operation despite
widespread interest of local and regional actors to change the situation
• The large degree of publicly funded support infrastructures and networks for internationalization in
the IPP regions focusing on specific programmes and target groups
• The absence of high tech products and the relatively short value chains in the regions making them
particularly vulnerable to international competition
Differences:
• The impact of global financial and economic crisis has affected the IPP regions in different ways;
while Latvia and Valencia were particularly hit by the aftermath of the financial and economic crisis,
the impact in Eszak-Alföld, and particularly in Saxony-Anhalt, were much less serious
• The impact of demographic change is also significantly different among some of the IPP regions.
While Ezsak Alföld and Saxony-Anhalt suffer a high degree of outmigration and ageing society,
Valencia, in particular way, is facing a growing population.
Opportunities:
Due to their specific development challenges, there is plenty of scope for extending co-operation,
particularly in the following areas:
• in the field of business to business co-operation, i.e. European Enterprise Network Partners of the
IPP regions including the Chambers of Commerce
• in the field of business and research co-operation, i.e. REDIT – Research Organisation in Valencia -
– INNOVA Agency and the Investment and Development Agency of Latvia, Technological Centre of
Latvia
• in the field of regional/local development, i.e. EU-Service Agency – FCVRE – RDA Eszak Alföld –
SRDA Latvia, Latvian Association of Local and Regional Governments
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