INDUSTRIAL AND INNOVATION POLICY IN PORTUGAL Ana Isabel Serralha Rita Costa

PORTUGAL  Area: km²  10 million inhabitants  Capital: Lisboa  Member of EU since 1986  Currency: Euro

PORTUGUESE ECONOMY 2003 Expected GDP growth: - ¾%  Reduction of consumption and investment  Budget deficit  International incertenty with Iraq conflict  Summer fires – total impact still to determine

INDUSTRY AND INNOVATION GENERAL PERSPECTIVE POLICY MEASURES

PORTUGUESE INDUSTRY  No industrial revolution  Industrial development started in the 1950’s  EFTA  Focus in products of low added value: sardines, wine, cork, textiles, shoes and automobiles components

INDUSTRY’S PROBLEMS  Low productivity  Low level of education and know-how  Low level of technological and organizational innovation  Lacking spirit of entrepreneurship  Burocracy  Regional disparities

INNOVATION

PPCE: Programme for Productivity and Economic Growth  Improvement of legal and regulatory environments  Competition  Investment  Taxation  Protection of intelectual and industrial property  Stimulation of R&D POLICY MEASURES

PROINOV: Integrated Programme for Innovation MAIN OBJECTIVE: attracting foreign direct investment (FDI) to help creating new jobs in technology-intensive activities Example of PROINOV’s actions: Promotion of clustering and co-operation for innovation

POSI: Operational Programme on Information Society AND POCTI: Operational Programme for Science, Technology and Innovation Technology and Innovation MAIN OBJECTIVE: supporting the development of university-industry research consortia including firms and Science and Technology organisations Important role in :  the strengthening of research carried out by companies

IDEIA: Applied Research and Development in Companies MAIN OBJECTIVE: developing university-industry research consortia Important role in :  the strengthening of research carried out by companies  the intensified co-operation between research, universities and companies  the strengthening of companies’ ability, particularly SME’s, to absorb technologies and know-how (creation of R&D teams in companies) The participants of the programme IDEIA can benefit from financial and fiscal incentives.

NEST: New Technology-Based Firms MAIN OBJECTIVE: supporting new technology-based firms (NTBF’s) through venture capital investment Important role in :  the strengthening of research carried out by companies  the start-up of technology-based companies  the increase of the larger public’s awareness to the relevancy of an active Innovation Policy The support given to NEST companies includes: financial support recruitment of doctors and masters venture capital investments up to 90% of a NEST companies’ capital

QUADROS PROGRAMME MAIN OBJECTIVE: improving the level of technical skills in SME’s through financial support for the wages of young engineering, economics, management and scientific graduates recruited by SME’s. Important role in :  the mobility of students, research workers and teachers  the fostering of innovative organisational and management practises in enterprises  the strengthening of research carried out by companies  the strengthening of companies’ ability, particularly SME’s, to absorb technologies and know-how

MTTQS: Measure for Supporting the Dynamisation of Technology, Training and Quality Systems MAIN OBJECTIVE: promoting pre-competitive research projects developed between technology, training and quality infrastructures organisations and companies. Important role in:  the encouraging of R&D activities  the strengthening of research carried out by companies  the intensified co-operation between research, universities and companies

EDUCATION RELATED MEASURES The Portuguese Government has tried to improve the Educational Policy by: giving scholarships to the best students in different fields creating a new Ministry for Science and Higher Education creating a Comission on the Teaching of Mathematics and Science promoting life-long learning supporting the recruitment of graduates by companies

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