The Innovation Steering Group notes that the Flemish chemical industry has a number of highly valuable assets for it to remain firmly established in Flanders in the long term as well:
- Concentration of high-performance companies in a world-scale cluster with outstanding and differentiated value chains;
- A highly integrated and diversified industry;
- A unique location in the centre of Europe;
- The proximity of ports, the availability of a 'state-of-the-art' production and transport infrastructure offers a unique logistical platform and high mobility;
- A high level of educational opportunities, availability of motivated and highly qualified staff;
- A wide range of knowledge-based institutions (research centres; universities and colleges);
- Considerable expert knowledge and know-how and a high level of R&D potential for multinational centres of expertise within the cluster;
- A high level of R&D expenditure earmarked for sustainable innovation;
- Clear examples in Flanders and Belgium;
- Welcome tax incentives for foreign investors and the supportive attitude of the federal and regional authorities.
New approach: a sustainable transition strategy
These assets are not enough by themselves to be able to continue playing a prominent role in the long term. As a result of the strong advantages available to the Flemish chemical and life sciences industries a forward-looking strategy has to be developed for overseeing the chemical sector's transition to a sustainable chemical industry. Under this heading, all the implications of sustainability have to be examined and described as 'people, planet, profit'...
It is possible and necessary for the Flemish chemical industry to launch such a transition strategy so as to develop a sustainable chemical sector in Flanders in due course that can offer groundbreaking innovations but this will require a commitment from the various stakeholders - companies, knowledge-based institutions and authorities - as part of a triple helix' model and the world class knowledge and expertise available.
1. Recommendations
With a view to facilitating the transition towards a sustainable chemical industry the 'Chemical' Innovation Steering Group has drawn up the following key recommendations:
- (1) Cater for megatrends
The wide chemical sector in Flanders has sufficient assets to make a contribution to the effort to address these megatrends and to find solutions for the problems created by these trends. Catering for these megatrends helps the sector to become more 'mission-driven' rather than operating on just a technology-oriented basis.
- (2) Position in the value chain
Given the trend for production to be shifted towards the Middle East and Asia, the Flemish chemical sector can, by acting more as an 'integrator' and offering finished products and comprehensive solutions, generate more added value, or further develop the current position of 'enabler/facilitator', while the visibility will also be much lower.
- (3) Rapprochement with the finished products and cross-sectoral convergence
Closer cooperation across the borders between the sectors and disciplines will enable Flemish chemical companies to take more advantage of the opportunities in this area, thereby resisting fragmentation and promoting a complementary relationship between the various stakeholders. This is in fact part of a more open approach to innovation, where open innovation instruments are just as vital for developing a competitive advantage in the region. There has to be more emphasis on the need to develop and experiment with new business models in the sector, where several stakeholders are involved: market and social components, knowledge-based institutions, government agencies, companies (from multinational companies to SMEs), technology-intensive or otherwise.
- (4) Networking and pooling knowledge and expertise
The proximity of R&D centres and production centres is a trump card that needs to be played to a greater extent. This involves focusing more on bringing together chemical-related knowledge and talents, by developing a sustainable and intense network, for example, to help us become acquainted with each other. This in itself is a huge step forwards.
- (5) Focusing on priorities
This approach also means universities gearing their education and research policies more towards a multidisciplinary perspective, focus and critical mass. For example, a university may define priorities for its research policy, ideally in areas where it stands out from other universities. Another option is to bring all the chemical and related disciplines physically together in one laboratory.
- (6) Emphasis on the international dimension and international cooperation
There has to be a move away from thinking and working locally towards operating on an international scale. Policy-making, too, must focus more on the international dimension and promoting international cooperation. Programmes have to fit into and allow access to the chemical industry's international value chains. International cooperation has to be encouraged and projects with an international investment be rewarded as a matter of preference.
- (7) System-level testing
The development of innovations involves creating environments where the new developments can be tested at system level. The scale is definitely larger than pilot facilities but pilot systems are required, such as living laboratories and industrial pilot projects, where an integrated solution and the related business model can be tested, including the involvement of the various partners in the value chain. This will make for a smoother transition from the knowledge capacity acquired to its exploitation in a business model.
2. FISCH as a specific transition strategy for a sustainable chemical sector
The 'Chemical' Innovation Steering Group regards the FISCH platform as giving concrete expression to such a comprehensive transition strategy. FISCH provides a basic framework to offer both the substantive and innovation processes a clear reference point. The recommendations made earlier for a coordinated transition approach can also be clearly indentified within this framework: investing in innovation for sustainable solutions, and an open innovation infrastructure, cross-sectoral cooperation, international convergence, a focus on comprehensive solutions at system level, and the creation of pilot systems.
3. Other initiatives with a transition potential
Apart from FISCH, other projects, programmes and policy initiatives that have a knowledge-based potential are obviously available. Accordingly, the creation of the CMI (Medical Innovation Centre) in the context of the VRWI Cluster 3 is an excellent basis for such an integrated approach in the field of translational medicine. Flanders also boasts a whole host of assets within the universities, SIM-Flanders (Flamac), BioBase Europe, Plastic Vision, VITO, Centexbel, MIP, CORI, VIB and IMEC, which can play a role in this model.
4. Forrming part of a broader industrial policy
The success of the approach will be determined to some extent by the strength of the flanking industrial policy, which links in with the innovation policy. In this context, the 'Chemical ' Innovation Steering Group points to the activities and discussions within the framework of the General Assembly on Industry and the preparations for a White Paper on 'A New Industrial Policy for Flanders' (NIB). The 'Chemical 'Innovation Steering Group nonetheless draws attention to three factors closely tied in with the innovation policy:
- a. the shortage of risk capital in Flanders to allow young start-ups, particularly in the life sciences, to bridge the initial phases after the start-up (pre-seed), while achieving the move towards a critical scale size (early stages);
- b. the pressing need to encourage, develop and pool talent. There is a continuing high demand for well-trained and flexible employees.
- c. The impact of the legal and regulatory framework that has to be enabling rather than creating obstacles. It is vital for the administration to pull out all the stops to lend support to the continuing development of innovation and R&D at policy-making as well.
In the specific case of the chemical industry a reference can also be made under this heading to the 12 lines of action in the 'Action plan for the Chemical Industry' (2006) formulated by the Round Table on Chemical /Life Sciences and to the High-Level Group for a sustainable chemical and plastics industry (2009-2010) at federal level..
5. Fast action and the biggest possible commitment required
The Innovation Steering Group stresses the crucial need for the policy framework to be created within a short space of time and for urgent action to be taken. A key condition for a successful transition towards a sustainable chemical industry is for the administration to offer its full commitment and to lend as much support as possible to the industry's measures and initiatives as a result of reflecting them in the White Paper on a 'New Industrial Policy'.