The exploration of technology and innovation demand in C. Macedonia is one of the focal points of the Regional Technology Plan. In contrast to a long-standing tradition of technology planning emphasising the supply side, in the assumption that industry would adapt to improved technology supply, the orientation of this Plan is more conditioned by demand. Technology demand determines the basic orientations of the Central Macedonia RTP and its two fundamental points: the determination of the priorities for action and the fine-tuning of projects within the framework of established priorities.

The examination of regional technology demand has been realised on three levels:

1. on the level of major industrial firms in the Region, on the basis of technology auditing;
2. on the level of major industrial branches within the Region, on the basis of meetings with selected companies within each branch;
3. on the level of local productive systems within the Prefectures of Central Macedonia, on the basis of reports by experts from each Prefecture.

Technology demand by industrial firms

An in-depth survey was carried out by the Thessaloniki Technology Park It included the selection of 60 major companies in C. Macedonia to be studied, contact with the directors of the selected companies to arrange the meetings, visiting the firm and discussion with the appropriate officers, drafting the answers received, and elaboration and presentation of the results. The main conclusions of this survey are:


Technology sources: For the companies which participated in the survey, their main source of technology is by purchase through the purchase of equipment. The development level of internal R&D departments is generally low, and only exists at all in large and well-organised companies. Very few companies have special R&D departments, while in some companies R&D is carried out by either the Production Department or the Quality Control Department.

R&D levels are generally considered inadequate. This is the result of two principal factors:
(1) the level of R&D is in many industrial branches fairly low, and
(2) information flow and dissemination of research results both from Greece and abroad are insufficient. One of industry's main requirements is access to research results. Another point mentioned by numerous executives was that the research carried out in Greece does not reflect industrial requirements: what is needed is for research institutions to tailor their work more closely to the needs of industry.

Inter-firm technology co-operation: For the most part the idea of collaboration with other companies in the same branch has gained little ground, largely due to lack of interest, suspicion, lack of finance and the absence of a spirit of collaboration within the business world. On the other hand, many companies sub-contract and/or collaborate with producers of complementary products.

Vocational training: In general there is on-going employee training in technical, administrative and financial sectors, either within the firm or outside. Training programmes on general subjects are available in the Region. The need however has appeared for training in specialised technical fields which vary from firm to firm.

Quality and certification: Most companies surveyed lay great weight on producing quality products to meet market demands. Suggested ways of improving quality include automation and certification of production processes. A certain number of companies have already been awarded certification (mainly under ISO 9002), or are in the process of doing so. In fact, certification is one of the major company trends for the future. With respect to product standards and specifications, there are problems for a certain number of sectors with the lack of standards or the failure by competing companies to meet the existing ones, thus creating unfair competition. It is imperative to develop regulations to ensure the wide application of standards. Most companies either already apply or are prepared to apply Total Quality Management procedures, which reflect industry's realisation of the importance of the human factor in the production of quality products.

Technology objectives and requirements: There is little branch variation in technology objectives, which may be summarised as follows:

• product improvement, through the purchase of new equipment, implementation of new technologies, installation of automation systems, better raw materials (new materials or better quality control),
• development of new products via new technologies in accordance with market requirements,
• improved quality control procedures, for most companies practising quality control, by the addition of supplementary equipment and trained personnel
• improved product distribution.

Technology sectors where further support is required : While there are certain differences from one branch to another, the global consensus is that the sectors where progress is required are the following:

• information technology, computer systems, monitoring of stocks, automated control systems
• automation, production control and quality assurance systems, to improve product quality and increase productivity
• certification, which will help in the production of better quality products and consequently in improving competitiveness
• improved quality control processes. Existing problems include inadequate equipment and lack of trained personnel.

Obstacles hindering innovation: A major problem concerns financing: The cost of money for self-financing is very high. The limited national programmes tend to favour "large" enterprises. There is a problem of access to such funding on the part of smaller companies. Mention was made of the limited use made of European programmes, especially by large companies. Small companies rarely participate in such programmes, mainly because of their orientation towards applied research. Our conclusion is that both the technology and the equipment required to improve industrial technology usually exist: what is lacking is the financing for such investments.

A considerable problem is the availability of qualified middle management, especially in the Prefectures other than Thessaloniki: In certain sectors (textiles, non-metallic minerals) there is a tremendous need for middle-level and qualified staff (e.g. foremen, qualified technicians, etc.), who are usually trained on the job rather than in special schools.

A final problem is that of information. The majority of those surveyed reported insufficient information. They need information on such matters as developments in technology, quality, research results, environmental protection, legislation.

Technology needs in principal industrial branches

These needs were identified through meetings with selected firms of C. Macedonia. The purpose was to discuss publicly the technology and innovation needs of companies in Central Macedonia and to relate them to competitiveness, infrastructure, and public technology support policy.

The meetings were organised and co-ordinated by the Thessaloniki Technology Park, the Association of Industrialists of Northern Greece, and the Thessaloniki Chamber of Commerce and Industry, with the assistance of the RTP Management Unit. Approximately 100 companies from three broad industrial sectors were invited to attend: (1) foods, beverages and chemicals, (2) clothing and footwear, and (3) manufacturing of machines, appliances and building materials. About 40 companies took part in these meetings. The discussions focused on:
Identifying technologies considered important for the competitiveness of individual companies and of the Region in general, such as:

• production-related technologies (energy management and saving, application of automation and data systems in the production process, waste management and treatment systems)
• product-related technologies (design and development of new products, quality control, quality automation, certification, quality symbols)
• collaboration and interfirm network-related technologies (networks and telecommunication infrastructures, instant ordering and delivery systems, consumer feedback, institutional mechanisms for industrial collaboration)
• human training and optimising technologies (on-going training schemes, quality circles, linking training and production).

The factors determining the needs in technology and innovation, such as:

• The type of markets within which companies operate, which determines quality requirements and demands
• information on competitors' policies, changes in demand and new technologies.

The ways in which companies currently meet their technology needs:

• whether they purchase technology along with permanent equipment and machines
• whether they collaborate with other companies (competitors, sub-contractors) in order to improve production techniques and develop new products
• how they train their work-force and what methods of worker participation in product improvement they implement
• whether licensing and the payment of royalties are a significant factor in the acquisition of technology.

During the course of these meetings the conclusions and priorities established during the technology audits were confirmed: technology inflow via the purchase of equipment, the leading role played by quality in the establishment of a competitive advantage, the demand for information on new technologies and products, the demand for interfirm collaboration and networking difficulties, the importance of financing in the development of new products and technologies, the difficulties of participating in national and Community research and development programmes, especially for small and medium-sized companies.

Technology needs at prefectural level

In parallel with the technology audits and the meetings with firms, we organised structured discussions on the technology needs of the Prefectural productive systems (Imathia, Kilkis, Pellas, Pierias, Serres, Chalkidiki). This was followed up by the drafting of expert reports codifying local development data and priorities, which identified:

• the most important industrial sectors and fields of economic activity in each prefecture,
• export activity in each prefecture (companies, products, export areas, new market possibilities),
• problems of competition encountered (problems relating to productivity, production costs, product quality, product innovation, infrastructure appropriateness),
• the basic infrastructures existing in the prefecture and susceptible of enhancing competitiveness (industrial zones, innovation centres, development companies, exporters' associations, participation in trade fairs, consultancy companies, institutes),
• infrastructures and actions that could contribute to raising the local productive system's levels of technology and competitiveness.

With the exception of the Prefecture of Thessaloniki, where industry is varied and broadly based, the other local productive systems are dominated by two industries (1) foodstuffs, usually processing of local agricultural products and preparation of animal feeds, meats, tomatoes, sugar, cotton, milk, flours, and (2) textiles and clothing.

Production is characterised by a geographical separation in which production is concentrated in the province and services in the city of Thessaloniki. The lack of executive personnel to organise and manage production tends to reinforce this phenomenon. The minor distances between the other Prefectures and the city of Thessaloniki (around 50 km) permit daily commuting in the framework of a single metropolitan system. This in turn enables to use the city's research and technology potential in order to cover technology needs.

Finally, three main technology and innovation support issues have been identified:

1. The need of access to information on potential markets, new products, financing mechanisms, national and Community research.
2. The need for cross-links with research and technology institutions via local centers for technology services.
3. The need for cross-links between companies and the creation of networks to confront better the competition and the challenges of technological modernisation.