Vietnam STI Governance in the NIS context Third Asia-Pacific NIS Forum Diagnosis of NIS and Development of STI Strategies in the Open Innovation Framework Vietnam STI Governance in the NIS context Dr. Ta Doan Trinh , NISTPASS, Vietnam 8-9 April 2015, Bangkok, Thailand

Contents 1 2 3 STI in the Development Context STI Capacity Diagnosis STI in NIS Context – some challenges Today, let me introduce the R&D management system in Vietnam nowaday then about the challenges and bottlenecks that it faces and its national innovation strategies.

1. STI in the development context

Vietnam in the ecomomic world map

World Bank Income Classification Country World Bank Income Levels Brunei Darussalam High-income Cambodia Low Income Indonesia Lower-middle Income Lao PDR Malaysia Upper-middle Income Myanmar Philippines Singapore Thailand Viet Nam As of 1 July 2013, the World Bank income classifications by GNI per capita are as follows: Low income: $1,035 or less Lower middle income: $1,036 to $4,085 Upper middle income: $4,086 to $12,615 High income: $12,616 or more WEF: Vietnam is still a Factor based economy

GCI 2014-2015

STI in the development process Innovation High education and training Technology readiness 2020 2013 Development periods GDP/capita (USD) Period 1: factors driven <2,000 Transition from 1 to 2 2,000 – 3,000 Period 2: Effectiveness driven 3,000 – 9,000 Transition from 2 to 3 9,000 – 17,000 Period 3: Innovation driven >17,000 Vietnam 2,000 – 3,000 3,000 – 9,000 Nguồn: WEF, 2013

Relationship between socio-economic development goals and STI goals in period 2011-2020 SED development goals - Basically become industrialized country in 2020, - Quick development but sound, sustainable. - More independent and more self reliant in the world integrated economy (SED strategies until 2020 ) STI goals S&T should be main driving engine for fast and sustainable development: leading role in production force development, in reconstructuring growth model and improvement of the competitiveness - Some S&T fields reachs the advanced levels in 2020 in comparisons with ASEAN countries (S&T development Strategy until 2020) STI goals are two fold: becoming driving growth engine for SED and building up the S&T capacity in some areas

Strategic tasks in S&T development Strategy => Vietnam socio-economic development strategy 2010 – 2020 requires S&T activities must be: - focusing on and serve the industrialization and modernization process and - contribute to the economic intensification , productivity , effectiveness and competitiveness. 3 strategic breakthroughs for development: Improve the market economy institution and administrative reforms; HRD linking with S&T application and development; Infrastructure building Identified 3 strategic tasks for S&T: Facilitate the S&T applications, Capacity building and Management mechanism reform

STI policy initiatives & legislative regulations Many policy orientations documents on STI Resolution 246-NQ/CP of Central Government S&T development strategy 2011-2020; Regional and ministerial strategies Law - Decrees – Circulars - Action plans and programs - Law on S&T 2013 and other related laws Complete policy set concerning all aspects of S&T activities (from R&D to C, from S&T to I) Many S&T programs in national and ministerial levels Creating good policy environment for S&T development strategy implementation: restructuring S&T system to serve SED goals Coordinating national programs and top-down approach

2. STI Capacity diagnosis

GII WIPO 2014 - Key indicators Population (millions) .......................................................................................88.8 GDP (US$ billions)...........................................................................................170.6 GDP per capita, PPP$......................................................................................4,011.5 Income group..........................................................................Lower-middle income Region.........................................................................South East Asia and Oceania Score (0–100) or value (hard data) Rank Global Innovation Index (out of 143) ................. 34.9 71 Innovation Output Sub-Index .................. 34.0 47 Innovation Input Sub-Index. .................. 35.8 100 Innovation Efficiency Ratio .....................1.0 5 Global Innovation Index 2013 (out of 142) ................32.0 76

Current status of R&D activities STT Parameters Year 2011 1. Population 87.84 mil 2. GDP 2,535,008 bil. VND 3. GDP per capita 28.86 mil. VNĐ 4. R&D personnel (head count) 134,789 5. Researchers (head count) 105,230 6. Researchers – women (headcount) 43,844 7. Researcher per 10.000 population head 11.97 8. GERD (real price) 5,293.95 bil. VNĐ 9. Ratio GERD/GDP 0.21% 10. Average expenditure per researcher 50.31 mil. VNĐ Source: Science and Technology 2013, NASATI, MOST

R&D Gross expenditure and Total R&D expenditure R&D Gross expenditure and R&D intensity (2002 and 2011) Bil. VNĐ, current price R&D expenditure By performer 2002 2011 GDP 536.098 2.535.008 GERD 1.142,39 5.293,95 GERD/GDP 0,21% Source: S&T 2013, NASATI

R&D expenditure by performers Year of 2011. bil. VNĐ, current price Economic sector Total Performer Research Institute University Admin Agency Enterprise NGO Total for Nation 5.293.95 2,311.02 760.76 776.61 1,377.01 68.55 Government 4,287.57 2,303.44 760.59 446.95 Non-Government 690.98 7.58 165.00 614.68 FDI 315.38 Source: Compiled from Science and Technology 2013, NASATI, MOST

R&D personel Total By functional activity Researcher Technical Nguồn: Điều tra NC&PT 2012 và Điều tra doanh nghiệp 2012 Total By functional activity Researcher Technical Supporting Others 134,780 105,230 9,781 14,245 5,525 Government 119,582 94,101 8,351 12,853 4,277 Non Government 12,321 9,739 934 896 752 FDI 2,877 1,390 496 Source: Compiled from Science and Technology 2013, NASATI, MOST

R&D expenditure per researcher in ASEAN (USD ppp) Source: Compiled from Science and Technology 2013, NASATI, MOST

Publication ranking 2006-2013 2012 Country Publication Ratio (%) Nguồn: Cục Thông tin khoa học và công nghệ Quốc gia. CSDL Web of Science ngày 18/02/2014 Publication ranking 2006-2013 2012 Country Publication Ratio (%) Ranking Taiwan (China) 212,642 1.561 17 30,974 1.657 16 Singapore 82,403 0.605 33 12,843 0.687 31 Malaysia 48,012 0.352 42 9,525 0.510 38 Thailand 47,983 43 7,610 0.407 Vietnam 10,983 0.081 62 1,929 0.103 60 Indonesia 10,354 0.076 64 1,688 0.090 Philippine 8,357 0.061 69 1,275 0.068 67 Source: Compiled from Science and Technology 2013, NASATI, MOST

By nationality of applicants Patent application Nguồn: Cục sở hữu trí tuệ Year Total By nationality of applicants Vietnam citizenship Foreigner Quantity % 1996-2000 5,758 161 2.8% 5,597 97.2% 2001-2005 7,025 482 6.9% 6,543 93.1% 2006-2010 14,697 1,183 8.1% 13,514 91.9% 2011 3,688 301 8.2% 3,387 91.8% 2012 3,959 382 9.7% 3,577 90.3% 2013 3,902 408 10.5% 3,494 89.5% 39,029 2.917 7.5% 36,112 92.5% Source: Compiled from Science and Technology 2013, NASATI, MOST

By nationality of Applicants Patent granted Year Total By nationality of Applicants Vietnamese Foreigner Quantity % 1996-2000 1,486 32 2.2% 1,454 97.8% 2001-2005 3,666 82 3,584 2006-2010 3,588 175 4.9% 3,413 95.1% 2011 985 40 4.1% 945 95.9% 2012 1,025 45 4.4% 980 95.6% 2013 1,717 53 4.5% 1,118 95.5% 11,921 427 3.6% 11,494 96.4%

Nationality of applicant Utility granted Year Total Nationality of applicant Application Granted Vietnamese Foreigner 1996-2000 308 89 143 32 165 57 2001-2005 753 271 463 151 290 120 2006-2010 1.292 352 744 222 548 130 2011 307 69 193 46 114 23 2012 298 87 198 59 100 28 2013 304 101 209 95 3,262 969 1,950 579 1,312 390

3. STI policy in NIS context – some challenges

Problem in S&T development strategy SED policy for S&T D- fostering and nurturing role Weak S&T For SED Poor SE Investment For S&TD STI policy for SED - growth engine role

NIS in developing country Incomplete NSI: Lack of sufficient actors Lack of stable linkage Firm Univ Gov FDI Tech center Firm Univ. Gov. FDI Tech. center Source: Lundvall et al (2009)

Characteristics of NIS in developing countries Firms – the center of NIS: Mainly ares SME, Different role in domestic and global value chains; Low technology capability and none-core innovative (less R&D, more technology learning) Less developed NIS, RIS : weak coherence among innovation related policies Weak linkage between academia, research institutions with firms and among firms: researcher – radical frontier topics >< firm incremental change Less favorable ecosystem: Weak Financial market, unstable legal system, HR and IPR sufficiency,

NIS and policy making approach STI policy in connection with other policies – going beyons traditional S&T development strategy

Challenges of STI governance mechanisms Effectiveness Challenge When , Where and How to implement Identifying Capable performers Who implements Right thing To do What to do When, Where and how to fulfill the missions Who are mandated to hold the missions What are the Right Things to do with scare resources

Thank you