Regional Development - inter region cooperation

Yesterday I had the honor to participate in the signatory ceremony of twin regions between the region of Emeq-Hefer (where I am a council member) and the Heilongjiang province in China. The agreement is the first step towards increased cooperation between the two regions.
All that is very nice, and creates a lot of good will - especially if there are mission exchanged between the regions and people get to travel. But in the practical world we live in what does it really mean?
In the regional level there is little significance, there are donations, links between institutes and some missions, political, educational and others. But what more can you expect when the regional level of government is limited in scope of action, budget and legal powers to act?
Can there really be a significant advantage created by cooperation between regions?
The EU seems to think so, but seems to think that such cooperation needs encouragement - and it does so financially. The EU concept is based on the fact that beyond trading between regions, there are practical lessons regions can learn from each other and that the cooperation can lead to improvement, economically in both participating regions.
The basis is to find the means for cooperation that will allow the relatively small and entrepreneurial region on one side to learn and teach from the larger bigger region, which operates on a different scale. The key would seem to be intensive and continuous communication between the two regions - a committee to identify the areas for cooperation, allocate the means and plan ahead. Topics for cooperation change with time therefore only lasting communication can provide for real cooperation with time.Although distance may seem as a problem - once personal acquaintance has been established the daily communication can be done electronically.

By writing this blog I intend to express my opinions, research results and general ideas regarding business development, business opportunities and innovation. the blog is not intended to serve as a scientific publication, but rather as a practitioners' basic discussion platform.
My main occupation is innovation and especially Open Innovation. The term Open Innovation relates to innovation that comes to the firm from outside; from other firms, research organizations, consultants and others. That is in contrast to internal innovation which stems from within the firm.
While Israel may appear as a good source for best practices in innovation, as it is important to remember that Israel is very different in its industrial sectors structure than EU member states. When referring to and SME in Israel one would normally refer to a high-tech company, a start-up company. In which case the size and performance would relate to its life length and success. In the EU as there are far more traditional sector SMEs than high-tech SMEs, the same assumption as in Israel cannot be made.
Based on the assumption that SMEs are start-up companies, the Israeli system of innovation was based on assuming that the SMEs perform research and need only be supported. It assumes that the SMEs know an want to manage R&D and need the parters or financial support.
Therefore the tools developed in Israel cannot be coppied as such to other countries such as the EU member states that see SMEs as mostly traditional sector firms, which have no idea how to manage R&D and how to introduce its results to their internal routines.
Last week a mission from Finland of high-tech firms visited Israel. They came to see the Israeli model meet firms here and make contacts and search for partnerships.
How can the model be coppied?
We may deal with that next post. In the meantime have a look at the links......