[LUM#17] Eurobiomed “Collaborating for Innovation”
Do competitiveness clusters fulfill 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.
To begin with, 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 be able to achieve on their own. The 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 theme aligns with the city’s history, its medical school, and its research efforts. 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 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 collaborative innovation among companies, as there are no 100% private projects. This also reflects the Montpellier ecosystem, which consists of startups and growing SMEs without a major anchor company.
Competitiveness clusters are meant to foster relationships among companies within the same region. Is this the case with Eurobiomed?
F.LR: 94% of Eurobiomed’s members have their headquarters in a department in the south, so the regional ties are strong.
If we now look at all the partners involved in the 56 projects that received certification in 2019, only 59% are based in the 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 overall budget, which means that for every 1 euro of public investment, we have 2.5 euros of private investment. So there’s 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 negative points raised 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: We also need to work on structuring our efforts around joint certification with other French clusters, particularly Lyonbiopôle and Medicen Paris, because here too, the mission has only been partially fulfilled. Only 30% of the projects have been certified by at least one other cluster. We need to 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 an obstacle, because we have to manage this tension between collaboration and competition—what we call “coopetition.” We can no longer deny these tensions, which shape the collaborative innovation ecosystem. Our report nevertheless confirms that, despite some limitations, competitiveness clusters do indeed foster collaboration among actors within the same innovation ecosystem.
An Innovative Chair
Established in February 2020 by Frédéric Le Roy and Anne-Sophie Fernandez, the Coo-innov Chair is the first in France to focus on collaboration and competition within innovation ecosystems. It is a chair of theUM FoundationUM in partnership with Labex Entreprendre (Coopetition Lab Program), MOMA, and MBS. “Its mission is to foster synergies around coopetitive innovation among researchers, students, and companies in the Montpellier ecosystem, as well as with policymakers,” says the chair’s co-founder. The analysis of coopetition strategies among companies lies at the heart of the research conducted and presented by the chair in the form of a report. “Our goal is to introduce this concept into the public debate so that stakeholders can grasp it and recognize this dual dimension of innovation—both collaborative and competitive. After 15 years of academic work on this topic, we have a lot to say,” concludes Frédéric Le Roy.
Listen to the "La science s’amuse" podcast again
A science program co-produced by the University of Montpellier and Divergence FM. On February 25, 2021, Anne-Sophie Fernandez and Frédéric Le Roy appeared on the show to present the Coo-Innov Chair’s first report on collaborative innovation in Montpellier.
Check out theUM podcasts,UM available on your favorite platform (Spotify, Deezer, Apple Podcasts, Amazon Music, etc.).