The underestimated resource: regional structures as drivers of innovation

Brilliant ideas do not necessarily emerge in the largest metropolitan areas, economies or regions.

So are there other key factors, such as the location of large corporations or prestigious research centers, that guarantee regional innovation?

Why do some regions manage to develop a lasting climate of innovation while others lag behind?

Fig. 1: Innovation strength of European countries according to the European Innovation Scoreboard (EIS) 2023.

Belgium is one of the most innovative countries in Europe. The reason for this is no coincidence, but a lived recipe for success: close cooperation.

Belgium's innovative strength is based on a well thought-out regional ecosystem: clusters, networks and targeted funding programs ensure that companies can access the knowledge of local partners and quickly implement new ideas. At the same time, Belgium attaches great importance to international cooperation. This is demonstrated by numerous scientific co-publications and cross-border research projects. As the seat of the European Union, Brussels, the capital of Belgium, is the center of numerous international organizations, companies and institutions. This global and multicultural network facilitates a far-reaching exchange of ideas and developments.

Belgium connects science and business like no other country. They rely on close transfer partnerships, a dynamic start-up scene and networks with proximity. Universities and companies work hand in hand, start-ups benefit from targeted coaching and practical training programs. This climate of cooperation creates a fertile breeding ground in which ideas can not only emerge, but also find their way onto the market.
Finally, financial support for innovation is also a central pillar of Belgium's innovation policy, without which innovation could not be driven forward to the same extent.

Sweden is the country of start-ups. It lives entrepreneurship - sustainable and future-oriented - like hardly any other country. Entrepreneurship is encouraged and socially celebrated in Sweden. This successful start-up scene is supported by an ecosystem that emphasizes sustainability and gives young companies the chance to take off internationally with their ideas.

Independent government agencies such as Vinnova in particular ensure excellent innovation and business support in the country, initiating numerous strategic and mission-oriented measures.

In addition, the lifelong learning approach is promoted by these independent government agencies. The population has recognized the relevance of the approach and has also committed itself to it.

The unique collaborative and informal culture in the Swedish economy, across all industries and competitive sectors, also stands out. In general, technology transfer as a collaborative effort to "do things together" is deeply rooted in their mentality.

Bavaria has a strong knowledge and education infrastructure as well as a high density of private and public research institutions. From the universities in Munich and Erlangen to applied research at the Fraunhofer Institutes and the technology transfer centers in the regions: Knowledge is generated here on a broad scale. There is also a strong innovation base in large and medium-sized companies.

The existing cluster structures simplify the exchange of know-how and access to relevant partners and markets. This opens up a clear opportunity for SMEs: they can use these structures for their own innovation projects - for example through joint research projects, technology transfer or practical cooperation with universities.

Bavaria offers opportunities not only in the generation of knowledge, but also through its strengths in its exploitation. This can be seen in the high number of patents in key technologies, the R&D expenditure of the economy and a strong position in future-oriented industries. The number of employees in industrial high-tech sectors underlines this substance. Bavaria also benefits from high synergies between regional funding and EU funds, which further accelerate innovation.
This offers several advantages for SMEs: they benefit from synergies with large companies, can mobilize additional resources via EU funding and are embedded in an environment that actively promotes innovation. Those who specifically translate knowledge into products, services or business models have the best chance of being successful in international competition.

It is crucial that SMEs not only perceive these existing structures as background noise, but actively use them - through cooperation, networks and the strategic use of regional resources.
In this way, the location can become an international competitive advantage. After all, innovation needs a home base. It is created where companies interact with their environment - with the people, institutions and networks of their region. Now is the time to seize the opportunities on your doorstep for your own future viability.