[LUM#17] Eurobiomed “Collaborating for Innovation”

[LUM Magazine] - Published on September 16, 2022 in Science and Society

Are competitiveness clusters fulfilling their role as catalysts for collaborative innovation? To answer this question, Anne-Sophie Fernandez and Frédéric Le Roy, Professors UM* and founders of theCoo-innov Chair (coopetition and innovation ecosystems), examined the case of the Eurobiomed regional cluster, which specializes in health. They present their analysis in the chair’s second report.

First of all, what is a competitiveness cluster?
A-S.F: It is a government initiative launched in 2004 to encourage private and public actors operating in the same market and within the same region to collaborate on innovation by forming “clusters” in the French style. The goal is to make an international impact with large-scale innovations. There are71 certified clusters in France.

F.LR: It was Michael Porter, a professor of strategy at Harvard University, who demonstrated in the 1990s that a country’s competitiveness is linked to the formation of “clusters” within a given region.

How does the government encourage competing companies to collaborate?
F.LR: By connecting companies and facilitating access to funding. Through these clusters, the government brings companies together, certifies innovation projects, funds them, and supports them. The goal is to facilitate private fundraising, pool resources, and create economies of scale that companies would not achieve on their own. Certification also offers them visibility and credibility by, in a sense, guaranteeing the project’s innovation potential.

What are the key features of the Eurobiomed cluster?
A-S.F: Eurobiomed is one of France’s six “health clusters.” This focus aligns with the city’s history, its medical school, and its research… Its main areas of focus are diagnostic tools and the development of digital innovations for e-health. The cluster brings together more than 400 members, including 330 companies. Of these, 78% are micro, small, or medium-sized enterprises, and 4% are mid-sized companies and large corporations, which is fairly representative of the Montpellier ecosystem.

To analyze Eurobiomed’s results for 2019, did you review the five missions of the competitiveness clusters? What are the key strengths?
A-S.F: The objective of “promoting public-private collaboration” has been achieved, since 80% of the certified projects are public-private partnerships. Eurobiomed, however, is not fulfilling its role in inter-company collaborative innovation, as there are no 100% private projects. This also reflects the Montpellier ecosystem, which consists of startups or growing SMEs without a major anchor company.

Competitiveness clusters should foster relationships between companies within the same region. Is this the case with Eurobiomed?
F.LR: 94% of Eurobiomed’s members have their headquarters in a southern department, so the regional presence is strong.

If we now look at all the partners involved in the 56 projects certified in 2019, only 59% are based in the Global South, which puts the independence of our innovation ecosystem into perspective.

Is Eurobiomed delivering on its funding promises?
F.LR: Public funding accounts for 41% of the total budget, which means that for every 1 euro of public investment, we have 2.5 euros of private investment. So there is a real leverage effect for companies.

And what about the economic impact?
A-S.F: The 56 projects have led to the creation or preservation of 478 jobs and the filing of 158 patents. On average, a collaborative innovation project results in 9 jobs created or preserved and 3 patents, which is very encouraging.

One of the shortcomings highlighted in your report is the lack of visibility at the European and international levels. How do you explain this?
A-S.F: Only 13% of projects involve a foreign partner, and 4% of the funding secured in 2019 came from European sources. There is an issue with visibility and identifying key partners. The “competitiveness cluster” framework isn’t the same everywhere, but there are clusters with which it would be worthwhile to connect, especially since there is funding available there.

F.LR: There is also a need to strengthen our collaboration with other French clusters, particularly Lyonbiopôle and Medicen Paris, as our mission in this area has only been partially fulfilled. Only 30% of projects have been endorsed by at least one other cluster. We must make progress on these initiatives to gain greater visibility and secure more funding.

Overall, can we say that Eurobiomed is fulfilling its role in supporting collaborative innovation?
F.LR: Being located in the same region is both an incentive to collaborate and a barrier, because we must manage this tension between collaboration and competition—what we call “coopetition.” We can no longer ignore these tensions, which shape the landscape of collaborative innovation. Our report nevertheless allows us to affirm that, despite some limitations, yes, competitiveness clusters do foster collaboration among actors within the same innovation ecosystem.

Keywords: Company, Innovation, LUM#17, LUM Magazine, Startup