Belgium: All about the New Walloon Smart Specialization Strategy (S3)

According to the Eurostat, Belgium had in 2020 the highest Research & Development expenditure in the EU at 3.5% of GDP!      

An impressive figure which is clearly not due only to free market forces but rather is the product of a carefully designed public strategy aimed at transforming Wallonia into an economic powerhouse in 5 key sectors, representing its strongest assets in today’s global economy.

What? The S3 (2020-2027) is an integrated, region-specific economic transformation strategy based on the strengths, competitive advantages, and potentials of each region by targeting priorities, challenges, and key needs to concentrate available resources: having a strategy means making investment choices. 

How? The S3 is the strategic framework for Research and innovation policy and industrial policy in Wallonia. It stems from two decades of industrial policy focused on economic redeployment of the region after darker times following the fall of the once flamboyant steel and coal industry in French Belgium. In August 2005, the Walloon Government adopted the priority action plan for the future of Wallonia - better known as the Marshall Plan - which concentrated over 1 billion euros on 5 defining priority areas: 

- Create competitiveness clusters

- Stimulate business creation

- Reduce company taxation

- Promote research and innovation in line with business

- Improve the skills of the workforce. 

The Marshall Plan 2005-2010, soon to be followed by the Marshall Plan 2.0, has been instrumental in improving the fortunes of the region of 3.5 million people. They have helped bring in Google, Microsoft, Baxter, Tuthill, Coopervision, GlaxoSmithKline, Doosan of Korea, Johnson & Johnson, Skechers, AMI Metals and other firms. A study revealed that the Marshall Plan generated 27,239 jobs, trained 115,076 workers and recruited 1,250 new researchers to Wallonia. In May 2015, the Walloon Government adopted the "Marshall Plan 4.0", a nod to the 4th industrial revolution (after the steam, electricity and automation). A few months later, the Walloon Government’s Decision on its S3 was made in September 2015, following an incremental approach based on pre-existing economic policies channelling public support into key areas of economic activity: the Strategic Innovation Areas (SIA).  

Why? Priority of the Walloon Government, the S3 aims to put an emphasis on how responding to societal challenges can be a win-win by driving regional innovation, creating value and improving quality of life.

The S3 must follow several criteria in accordance with European Commission conditions: 

1. The implementation of the S3 is conditional to receiving the EU structural funds;
2. Actions taken to improve the regional innovation system;
3. Actions to support industrial transition;
4. Measures for internationalisation of the business sector.

The S3’s ambitions are:

• Setting up innovative ecosystems around stated strategic priorities, based on Wallonia’s distinctive strengths.
• Concentration of resources and joint efforts of regional actors on a limited number of priorities.
• Strengthening Wallonia’s international competitiveness and attractiveness.

Strategic Innovation Areas (SIA):

What? A SIA is a coherent and ambitious set of innovative activities, of regional scope, with strong economic impact and societal contribution, capitalizing on a combination of Walloon resources and distinctive strengths and centered on the human. 

What does it do? A SIA contributes to both strengthening economy and employment, hence, responding to societal challenges. It aims to position Wallonia as an international leader.

The 5 SIAs validated by the Government:

What? These 5 Walloon SIAs are inspiring areas with a strong potential impact on the Walloon economy and the lives of citizens because they aim to contribute to a resilient and regenerative territory and respond to the major societal challenges that Wallonia «post-COVID» encounters. 
Why? The objective of SIAs is to develop a coherent set of activities within them while maximizing cross-fertilization between fields, technologies, disciplines and actors.

1. SIA – Circular Materials:

 Circular materials are inert or bio sourced materials that can be processed at different stages to ensure their future waste status is time-shifted or completely avoided. It brings together innovative activities related to the “circularization” of materials, with a view to reducing resource consumption, increasing regional autonomy, and developing new market opportunities. These activities are based on the regional technological expertise in materials processing as well as the presence of recoverable natural resources.

1. SIA - Innovations for Enhanced Health:

An evolution towards a health system implemented through innovations based on technology in interaction with humans.  A series of innovative activities to ensure the transformation of the health system in its preventive, diagnostic and curative missions. Set to reinforce Wallonia’s distinct strengths as an international leader in biotechs and medical technologies. But also, to preserve health capital for all citizens in the context of the Covid-19 crisis. Lastly, the development of new products and solutions for growing markets: home health; e-Health (electronic health) and m-Health (mobile-health).

1. SIA - Innovations for Agile and Safe Design and Production Methods 

For several years, the reindustrialisation of the economy and the modernisation of industry have been one of the major priorities of governments at European and Walloon regional levels. Innovative activities related to Industry 4.0 and advanced manufacturing processes, development of digital technologies for the modernization of production tools, development, and integration of advanced or composite materials, and additive technologies.

1. SIA - Energy Systems and Sustainable Housing:

This SIA includes new solutions for green energy transition and future housing, such as:

• Energy storage & integrated management of energy production and consumption flows within industrial production. 
• Engineering, design & simulation of more energy-efficient systems & parts for buildings (insulating materials, energy sensors, digital solutions for security, monitoring of energy consumption and performance, etc.).
• Buildings and integrated communities ('smart grids').
• Integrated management of communities, traffic flow, and network. 
• Skills in biomass valorization. 

1. SIA - Agri-food Chains of the Future and Innovative Environmental Management:
   
    

 Innovative activities to support the emergence of high market potential products & services within a sustainable circular agro-food system. Wallonia’s current strengths in research and innovation in the agri-food sector are focused on: food quality and safety; nutritional and functional ingredients; and industrial biotechnologies (white biotechnologies). The Walloon potential in the field of environmental ecosystem and biodiversity monitoring services, agroecology, and sustainable agricultural/forestry innovation will be strengthened to ensure the long-term sustainability of natural ecosystems (soil health and water cycle). 

Transversal dimensions:

The importance of digital technologies.

The transition to a low-carbon economy and the need to incorporate it into innovations to be promoted in SIAs.

The adoption of an integrated approach to innovation, also covering user/customer orientation, cross-sectoral, functionality and usage, social, organisational and business model innovation, product designs,…

For more information, please contact the S3 Team (SPW EER): secretariat.dpe.dgo6@spw.wallonie.be 

https://www.linkedin.com/groups/13874715/ 

https://economie.wallonie.be/content/smart-specialisation