Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’ April, 2016

Goal Share the story of Lithuanian Valleys - experience in making higher education institutions and research institutes “smarter” and more competitive on a global scale: The Lithuanian Valleys Valleys Projects implementation Lessons Learned Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

Needs and challenges Lithuania decided to invest 10% of total 2006-2013 EU funding into research and innovation One of the key elements of this investment was development integrated science, studies and business centers (Valleys) in parallel with investments into science-business cooperation, human capital development Time Value 2010 - 1008-2010 crisis impact Northern Europe service center Secure the fundamentals and develop the hub positioning Focus on investments in priority sectors 2015 Innovation center Become a Northern Europe innovation center 2020 Initiated in 2006, actual start in 2009, along with higher education and science institutional reform Need to increase quality and quantity of science results Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

Valleys objectives In 2007, the ‘Valleys’ were conceived as a mean of tackling a fragmented innovation system with poor investment levels, notably in business sector. A Valley is an integrated science, studies and business centre “concentrated in one area with shared or interrelated infrastructure”. Main objectives: Consolidation of scientific potential and research infrastructure in 5 Valleys (20+ projects) Development of research, studies and knowledge economy clusters of international level Implementation of Open access principle Creation of conditions for the establishment of knowledge-intensive businesses Investment into laboratory equipment, 153 EUR Investment into the construction or renovation of facilities, 108 EUR Investment into business incubators and technology transfer facilities, 25 EUR Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

Five science, education and innovation ‘valleys’ Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

Approach to implementation Infrastructure development Strategy and planning Review of priorities and programming instruments Business planning Marketing strategy & PR Investment models Management and coordination Management & coordination model Research infrastructure management Research center management model Monitoring & assistance Supervision of projects development and programme execution Training CHANGE MANAGEMENT Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

Identity of Valleys Specialization Integration (national) Mobilization Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

Business planning – what are our goals & target audience 2014 2015 2016 2017 2018 2019 2020 Service to External Users International Grants National Grants Funding from State Budget Commercialization revenues Special Projects Other Revenues 14 29 43 58 Millions, EUR OACs’ forecast cumulative revenue Four essential questions: Who are these guys? What have they done before? What have they achieved and where have they failed? Whom do they know and who knows them? Are they attractive to attract attractive people? How will they behave in times of crisis? If all questions are answered sufficiently positive, you can ask the next two questions: For what will they spend money? From where will they get/generate the money? Revenue trends remain dependent on public funding Elements of a business plan A research agenda; Capable people; The offer; Understanding of users; The infrastructure; The management; Results (KPIs); Money: Money out (budget), money in (funding). Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

Performance indicators Publications IF journals / ISI Others Patents or other formal IPRs National Patents or other formal IPRs: EPO, US, Japan Prototype, methodology, utility model and industrial design Income from contract research EUR % of income Income from use of infrastructure by external parties (services) Income from competitive funding National (EUR) National (% of income) International (EUR) International (% of income) Training Number of completed MA graduates Number of completed PhD graduates Number of students using the infrastructure Involvement in Master / PhD programmes Number of collaborative projects Establishment of spin-off companies 2014 2020 2015 2016 2017 2018 2019 Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

Investment models Finance attraction strategy – investment model should help management and other stakeholders to ensure successful further development of the R&D infrastructure projects. Investment models consist of: investment schemes - private investments, foreign direct investments, PPP, other; alternatives analysis - pros and coins, legal issues; acceptability process - evaluation of particular alternative, milestones for applicants; practical implementation steps. Investment schemes Alternatives analysis Acceptability process Implementation steps Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

Lessons learned Too early to judge as development still in progress, although: Slow but obvious change in researches and administration attitudes Initial results of newly established centers (increase of cooperation with business, science consolidation activities within institutions, technology transfer developments) inspire others to follow Gaps to be closed in the future become apparent and can be planned in more structured way Lessons learned so far: Support from key stakeholders as well as holistic view over the process is critical Absorption of funds not as fast as planned Better initial planning would save a lot of time and efforts Thorough evaluation and alignment of research and business current status and potential is key to deciding on the clusters development (“smart specialization” analog) Different models and international practices are very useful, but right people in the right places and change enablement process management are key for success Change process is long therefore robust monitoring and analysis is critical before the start of the process Central Project Management Unit helps to close operational gaps and deficiencies in program implementation process Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

Questions? Thank you!