Peer eXchange & Learning Entrepreneurial Discovery Process for Smart Specialisation Strategies (EDP) LITHUANIA Aarhus, 19 March 2018 Simas Dunauskas, Innovation policy analyst, MOSTA (Research and Higher Education Monitoring and Analysis Centre)

<Summarize the main elements of your RIS3 in max. 3 mins> Overview of your RIS3 Main regional characteristics Lithuania encounters a problem of low business investments in R&D&I activities. Weak innovative capacities of business predetermine the competitiveness of Lithuania’s economy. Knowledge and technology intensive sectors are relatively small and the impact of their development on Lithuania’s economy is insignificant yet. The bigger part of value added delivered by Lithuania’s economy comprises products and services of traditional manufacturing industry. Lithuania‘s indicators such as export of knowledge-intensive products and services, employment in knowledge-intensive companies, economic impact of innovation and other economic indicators of knowledge-intensive economy are far below the EU average. <Summarize the main elements of your RIS3 in max. 3 mins> Indicator Lithuania European average (2016) 2011 2016 Real GDP per capita (EUR per inhabitant) 9,800 12,000 26,900 GDP per capita in PPS (EU28 = 100) 66 75 (2015) 100 (2015) Real GDP growth rate volume (% change on previous period) 6% 2.30% 1.90% Research and development expenditure all sectors (% GDP) 0.90% 1.04% (2015) (p) 2.03% (2015) (p) Research and development expenditure business enterprise sector (% GDP) 0.24% 0.28% (2015) (p) 1.3% (2015) (p) Research and development expenditure government sector (% GDP) 0.18% 0.18% (2015) 0.24% (2015) (p) Research and development expenditure higher education sector (% GDP) 0.49% 0.58% (2015) 0.47% (2015) (p) Source: Eurostat In order to make the discussion at the workshop as efficient and useful as possible, it is important to move out of the ‘classical’ presenting mood and head towards a more concrete approach to issues that need to be faced on the ground, while establishing and implementing your strategy. For this reason it is important to define a focus of your presentation, which would act as a ‘red thread’ in your presentation. Please remember that the more linked to your presentation the questions are, the more relevant feedback you might get. By presenting the questions up front, you allow your peer critical friends to keep them in mind while you give your presentation. The questions should be repeated at the end of the presentation. Questions of a very general character can be made relevant for you specific region only if you give related information in your presentation.

RIS3 Governance model Consists of: Priority: Strategic R&I council Do we need to change level of support for the Priority? Consists of: Prime Minister Ministries Business representatives How is it going? Does the actual implementation meets the planned results? Coordination function Consists of: Ministries Agencies Stakeholders Monitoring function Interim evaluation. Should we upgrade priorities? What is the impact already? Priority: Projects by public and private entities within the priority area Ministry of Economy and Ministry of Education and Science are two responsible bodies for the RIS3 strategy in Lithuania. Mosta together with Ministry of Economy are responsible for the monitoring and evaluation of Smart specialization implementation strategy in Lithuania. 2014 2018 2020 Entrepreneurial discovery

Priorities AGRO-INNOVATION AND FOOD TECHNOLOGIES Safer food Functional food Biorefinery   ENERGY AND SUSTAINABLE ENVIRONMENT Smart energy systems Energy from biomass, waste treatment Digital construction Solar energy HEALTH TECHNOLOGIES AND BIOTECHNOLOGY Molecular technologies Advanced technologies for health Advanced medical engineering INCLUSIVE AND CREATIVE SOCIETY Educational technologies Implementation of breakthrough innovations   NOVEL PRODUCTION PROCESSES, MATERIALS AND TECHNOLOGIES Photonic and laser technologies Functional materials and coatings Structural and composite materials Flexible production systems TRANSPORT, LOGISTICS AND INFORMATION AND COMMUNICATION TECHNOLOGIES Smart transport systems and ICT International transport corridors Digital content Cloud computing and services

EDP for the RIS3 design - The goal of EDP process in Lithuania (2017/12/20 – 2018/06) - Most useful aspects/incentives 7 panel leaders coordinate EDP process within priority areas. Leaders are renowned scientists and have expertise in their fields. Methodology was created by a consulting agency. MOSTA together with Ministry of Economy supervise all the process. Provide expert insights on RIS3 progress, relevance and impact perspectives Provide expert recommendations for improving the monitoring and evaluation of Smart Specialization implementation. Provide expert insights on Lithuanian and global R&D and technology trends In order to make the discussion at the workshop as efficient and useful as possible, it is important to move out of the ‘classical’ presenting mood and head towards a more concrete approach to issues that need to be faced on the ground, while establishing and implementing your strategy. For this reason it is important to define a focus of your presentation, which would act as a ‘red thread’ in your presentation. Please remember that the more linked to your presentation the questions are, the more relevant feedback you might get. By presenting the questions up front, you allow your peer critical friends to keep them in mind while you give your presentation. The questions should be repeated at the end of the presentation. Questions of a very general character can be made relevant for you specific region only if you give related information in your presentation.

Prioritization, refusal, introduction of new ones 6 stages (6 expert discussions within priority area) Final list 1st methodolo gical step – identificatio n of trends and their impact assessment 1 stage Priority area’s report 2nd methodolo gical step - Status quo analysis (based on collected data) 2 stage Priority area’s report 3rd methodolo gical step– SWOT analysis and results 3 stage Priority area’s report 4th step - Identificatio n and assessment of new priorities and technologies 4 stage Priority area’s report 5th methodolo gical step– assessmen t of the monitoring system 5 stage Priority area’s report 6th methodol ogical step - Preparati on of final recomme ndations 6 stage Priority area’s report Thematic report Thematic report Thematic report Thematic report Thematic report Prioritization, refusal, introduction of new ones Priorities / technologies Priority Evaluation / New Identification Decision-making process Final list

Main challenges How to cause changes in the priority areas? How to objectively evaluate performance of priorities? How to involve and sustain relevant stakeholders in the process?

EDP for the RIS3 implementation (1) - What are the main factors influencing the sustainability of the EDP (e.g. political cycle? stakeholders commitment?) Political cycle is very important factor for the EDP process. The second stage of EDP in Lithuania was initiated by MOSTA and the Ministry of Economy. There was a gap in between the first stage of EDP (initial RIS3 development) till the start of the second. Challenges and reflections on the behaviour of the different actors during the EDP, in particular, the role of the SMEs. Both input: from SMEs and large companies is valuable during EDP stages. The problem is that SMEs tend to feel too insignificant to make an impact and large enterprises are not always interested or do not have sufficient time to attend the meetings and provide their feedback. <Summarize the main elements in max. 3-5 mins> In order to make the discussion at the workshop as efficient and useful as possible, it is important to move out of the ‘classical’ presenting mood and head towards a more concrete approach to issues that need to be faced on the ground, while establishing and implementing your strategy. For this reason it is important to define a focus of your presentation, which would act as a ‘red thread’ in your presentation. Please remember that the more linked to your presentation the questions are, the more relevant feedback you might get. By presenting the questions up front, you allow your peer critical friends to keep them in mind while you give your presentation. The questions should be repeated at the end of the presentation. Questions of a very general character can be made relevant for you specific region only if you give related information in your presentation.

EDP for the RIS3 implementation (2) How the EDP has evolved from a “one-off” process to a continuous one, to be embedded in the implementation of RIS3 strategies, including monitoring, evaluation and policy instruments. Experts (from academia and business) know latest trends in technologies, they can evaluate the potential and identify the most relevant technologies for Lithuanian ecosystem. EDP input will be valuable when interim evaluation will take place. Right now stakeholders are meeting regularly (planned 6 meetings till June) and all meetings have their own agenda. How to keep the momentum and stakeholders' motivation. Well prepared meetings (not to waste time), concrete objectives and questions, optimal meeting time management. Those decisions have to be implemented, otherwise stakeholders lose their interest. In order to make the discussion at the workshop as efficient and useful as possible, it is important to move out of the ‘classical’ presenting mood and head towards a more concrete approach to issues that need to be faced on the ground, while establishing and implementing your strategy. For this reason it is important to define a focus of your presentation, which would act as a ‘red thread’ in your presentation. Please remember that the more linked to your presentation the questions are, the more relevant feedback you might get. By presenting the questions up front, you allow your peer critical friends to keep them in mind while you give your presentation. The questions should be repeated at the end of the presentation. Questions of a very general character can be made relevant for you specific region only if you give related information in your presentation.

EDP for the RIS3 implementation (3) Changes and innovations (How have we modified the methodology) The methodology has been simplified, because now (interim evaluation) EDP is of smaller volume. When we designed RIS3 (initial stage) the duration of the process, the number of participants, the number of discussions, and the background analysis were more complex and detailed. Currently the focus is to review the strategy without making substantial changes. Implications and expected results The drawback of the current model is that priority leaders will not try to foster any major changes in the current strategy. (We do not expect any substantial changes, but believe that merging few priorities or rejecting the ones which show worst results could be a good approach). <Summarize the main elements in max. 3-5 mins> In order to make the discussion at the workshop as efficient and useful as possible, it is important to move out of the ‘classical’ presenting mood and head towards a more concrete approach to issues that need to be faced on the ground, while establishing and implementing your strategy. For this reason it is important to define a focus of your presentation, which would act as a ‘red thread’ in your presentation. Please remember that the more linked to your presentation the questions are, the more relevant feedback you might get. By presenting the questions up front, you allow your peer critical friends to keep them in mind while you give your presentation. The questions should be repeated at the end of the presentation. Questions of a very general character can be made relevant for you specific region only if you give related information in your presentation.

Summary & next steps Conclusions What are the main successes achieved so far in the operationalisation of the EDP for the implementation of RIS3? The process is ongoing , half way done (3 out of 6 meetings completed) Major part of relevant stakeholders (public, academia, business) are informed and participating in the process EDP should impact interim evaluation (offer new technologies and update the existing ones agreed earlier in the RIS3). What are the main challenges? How to cause changes in the priority areas? How to objectively evaluate performance of priorities? How to involve relevant stakeholders in the process? In order to make the discussion at the workshop as efficient and useful as possible, it is important to move out of the ‘classical’ presenting mood and head towards a more concrete approach to issues that need to be faced on the ground, while establishing and implementing your strategy. For this reason it is important to define a focus of your presentation, which would act as a ‘red thread’ in your presentation. Please remember that the more linked to your presentation the questions are, the more relevant feedback you might get. By presenting the questions up front, you allow your peer critical friends to keep them in mind while you give your presentation. The questions should be repeated at the end of the presentation. Questions of a very general character can be made relevant for you specific region only if you give related information in your presentation.

Question 1,2: Willingness to change and Objectivity (evaluation of performance) Why: Priority area leaders will highly likely not try to foster any major changes in the current strategy. They act as advocates and want to “defend” the current priorities as they are. What has been done: Political will is formed – to optimize priorities. Up to date, reliable statistics have been provided to all priority leaders and it was expected that they will use common sense when evaluating their priority area’s performance and will not interpret the statistics in their favor. What worked: Now we are waiting till the end of EDP process and will perform interim evaluation in mid 2018. The outcomes of EDP process will impact the evaluation. What did not work: Other priority leaders have tried to make the impact and made contacts with those leaders who misinterpreted statistics, to impact their decisions, but so far very few corrections have been made. This slide focuses on your question: try to formulate on this slide your answers to the following questions: What is your question/issue? Has something been done by policymakers in your region to address this issue or is it a completely new issue? If you have done something in this area, what are the things that worked well for you? If there was anything you have done to address this issue and it did not work, it would be useful for other participants to learn from your experience.

Question 3: Stakeholder involvement (business sector) Why: Not all relevant stakeholders are interested in the process. For instance, in the ICT field, most of main companies are not participating, because they do not trust the process and are not willing to contribute. What has been done: The leader of the area has tried to contact them directly. What worked: When approached personally, they usually promise to reconsider and attend other meetings. What did not work: But In the end, most usually do not show up. This slide focuses on your question: try to formulate on this slide your answers to the following questions: What is your question/issue? Has something been done by policymakers in your region to address this issue or is it a completely new issue? If you have done something in this area, what are the things that worked well for you? If there was anything you have done to address this issue and it did not work, it would be useful for other participants to learn from your experience.