INNOVATION POLICY IN SERBIA Ministry of Science and Technological Development, R. of Serbia Department:Technological development, transfer of technology and innovation system 03 December 2010

NATIONAL SCIENCE, RESEARCH AND INNOVATION STRUCTURE  Governmental level Strategy of Scientific and Technological Development of the Republic of Serbia for the period from 2010 to 2015, adopted in February New Law on Scientific and Research Activities, adopted in March New Law on Innovation activities, adopted in March Establishing of Innovation Activity Fund Involving in projects funded from IPA funds, donated projects etc. Progress within Intellectual Property Office  Higher education level  Business level Through business and technological incubators and science & technological parks in the field of hi-tech and innovations

R estructuring the Serbian R&D sector is a necessity. WHY? Investing in science and technology is the only way for Serbia to create a sustainable economy and society. The implementation of the strategy requires definition and planning of the following actions: 1.Integrated R&D programs 2.Program of technological development 3.Program of incentives for development of innovations 4.Program of knowledge transfer 5.Program of establishment of venture capital funds STRATEGY of Scientific and Technological Development of the Republic of Serbia for the period from 2010 to 2015

The ultimate objective by the Strategy is to create a NATIONAL INNOVATION SYSTEM Developing the national innovation system is an absolute necessity if we are to be able to establish a knowledge-based, profitable economy and society. The MoSTD, working rapidly together with other competent state institutions and relying on the existing resources in the direction of development, integration, and elaboration of a national innovation system as the only way of generating and marketing new technologies on the long run. Creation and functioning NIS is a prerequisite for sustainable development of national economy in the XXI century.

To become relevant in science and technology and become an innovative country, Serbia needs to FOCUS on a few national priorities. Knowledge Users Knowledge Creators Public SectorPrivate Sector NATIONAL INNOVATION SYSTEM

FOCUS by defining seven national priorities in the field of science and technology, at national level:  Biomedicine  New materials and nanosciences  Environment protection and countering climate change  Agriculture and food  Energy and energy efficiency  Information and communication technologies  Improvement of decision making processes and affirmation of national identity

FOCUS by defining few national priorities, at international level:  Domestic capacity is the foundation for international cooperation  The first encouraging steps in the area of international cooperation must be made in conjunction with attracting hi-tech companies  International projects in the field of research and innovations

Through PARTNERSHIP towards a national Innovation system: Partnership within the system through rationalization of the R&D network and close cooperation between institutes and faculties Partnership with society through science promotion Partnership with scientific Diaspora through joint projects Partnership with international organizations through programs and developing databases and relevant statistical methodology Partnership with international scientific community will develop according to priorities Partnership with other ministries through participation of scientific community in major infrastructural and other projects in Serbia Partnership with industry through a funding Centre for transfer technology Partnership with industry through an Innovation activity Fund

Current conditions in the field of innovation and invention, granted through the Strategy “In Serbia, intellectual property is either not being created or not being protected’’ According to the basic definition, technological development projects for the result should have applied technical solutions, patents, pilot plant, a new variety, innovation, technological advancement, the results have direct application. In the previous period ( ) In the field of technological development is carried out over 3,400 technical solutions. Despite this high number of technical solutions, the number of patents registered by the R&D organizations in the period was negligible 54 patent applications. This figure is not significantly better in companies where the annual registers about 20 patents, while individuals each year in this period has registered over 300 patents.

The structure of domestic patent applicants Source: Intellectual property Office RS With this results, Serbia is at the very bottom of Europe.

0,5 1 1,5 2 2,5 Number of patents per habitants Number of scientific works per one million of habitants Investment in R&D per capital Percent of GDP invested in R & D Number of scientist per 1000 employees ЕU-15 Japan USA Germany 0 Serbia

Serbia became member of the European patent organization October 1, 2010 The Republic of Serbia has become the member of the European Patent Organization (EPO). In such a way, our country joined the family of the European countries members of this organization. On the basis of this accession to the EPO, Serbia got full membership in the committees and working bodies of this Organization. In such a way, Serbia is actively participating in the development of the patent system in Europe. WHAT IS DONE?

New Law on Innovation activities ("Official Gazette of the RS", No. 110/2005 and No.18/2010) Innovation Policy Article 3 The innovation policy means the setting of objectives and ensuring of system conditions for creation, development and application of innovations. Article 4 The innovation policy is implemented through innovation activity programmes, in compliance with this law. Article 5 With respect to the performance of the innovation activity and the use of incentive measures, the private and the public sector shall have equal rights. WHATIS DONE? WHAT IS DONE?

THE DRAFT OF INNOVATION ACTIVITY PROGRAMMES Registered entities in cooperation with other innovative stakeholders contribute to achievement of the objectives of innovative activities, namely: innovative projects  Program funding of innovative projects that they have results in commercially developed verified product, process, technology or service; development projects  Program funding of development projects that they are going to have results in technological solutions, new technologies, software or a prototype of competitive products, processes or services; infrastructural support  Development program of registered organizations for innovation activities and providing infrastructural support Innovation Activities;  Incentive program of cooperation of entities registered holders of innovative activities with innovative activities in underdeveloped areas;  Program of financed projects whose activities are related to the application of the results of innovation activities of individuals - registered entities innovative activities; projects for technology companies  Program funding projects for technology companies.

ACTIVITIES within the Law on Innovation activities on the Governmental level Within the Low of Innovative Activities MoSTD have Register of innovation organizations, Register of innovators and Records of Technological companies, until now as follows:  Organizations for the performance of innovation activity: 52 Development and Production Centres 23 Research and Development Centres 5 Innovation Centres  Innovation organizations for infrastructural support to innovation activities: 3 Business and Technology Incubators 2 Science and Technology Parks Two new tipes of organizations for infrastructure support within new the Law: The organization for encouragement of innovation activities in the priority sphere of science and technology Centre for Transfer of Technologies  1 Technology company

Dynamics of registrated innovation organizations and individuals – innovators, per year

Number of funded innovation projects of legal entities and application of individuals – innovators

Applied Requested budget Innovative projects selected Infrastru cture projects selected Budget for all financed projects (Innovative + Infrastructure) Envisioned time period 1 st call108€3.7m467€2.1mJuly July nd call165€6.9m8015€3.5mNov 2008 – Nov rd call220€4.1m547€1.2mApril 2010 – April 2011 Total493€14.7m20829€6.8m Number, budget and timing of Innovative projects, since the first Law was adopted:

THE BEST TECHNOLOGICAL INNOVATION COMPETITION Ministry of Science and Technological Development together with Technical faculty in Novi Sad is organizing “The best technological innovation competition” since 2005, every year. objective The objective of this competition is to promote enterprising spirit in Serbia and Serbian Republic among researchers, students and innovators, creative individuals, economic societies as well as the whole interested public. Apart from possibility of financial support through awards, all participants in this competition have opportunity to be educated by trainings and by consultations, depending on category in which they will compete. WHAT IS DONE?

Financial support by the Ministry in the period (mil.RSD) Prize money Organization of competitions Total:

FUND FOR INNOVATION ACTIVITY  Expansion of financing innovative activities trough increasing proportion of non-budgetary funds in financing innovative activities International financial institutions (EIB, World Bank, European Investment Fund, the IPA funds, CIP funds) Capital from the private sector (European and international companies) IN THE PREPARATORYPHASE! IN THE PREPARATORY PHASE!

FUND FOR INNOVATION ACTIVITY  Expansion of financing innovative activities trough increasing proportion of non-budgetary funds in financing innovative activities International financial institutions (EIB, World Bank, European Investment Fund, the IPA funds, CIP funds) Capital from the private sector (European and international companies) PROGRAMMS  Partnership Program Investments in SMEs that already have an innovative product with a high share of knowledge and innovation and potential to establish partnerships and sales in world market  Support Program for venture capital funds Investments in newly established companies with high share of innovation in the early stages of the high risk have access to other forms of financing

The OBJECTIVES of the Fund for innovation activities  Cooperation with international financial organizations and institutions for financing innovative activities  Developing venture capital markets Enable to regional and international investment groups and financial institutions to invest their capital in the development of domestic innovation projects of SMEs  Fostering cooperation and partnership of local innovative SMEs with European and international companies  Investments in implementation and marketing of market-oriented innovation new business entities

OUR RESULTS! WORLD ECONOMIC FORUM’S GLOBAL COMPETITIVENESS INDEX According to the WORLD ECONOMIC FORUM’S GLOBAL COMPETITIVENESS INDEX , WB performed poorly in the field of Innovation (Serbia, for example, ranked 88 out of 139 countries) and Venture capital availability (ranked 102), despite the relatively good quality of scientific research institutions and progress in the economy. The quality of Serbia’s research and development institutions is good, but the extent to which that research and development is transferred to firms and used for enterprise innovation remains very poor.

Rank (out of 139)SerbiaSlovakiaSloveniaCroatia Capacity for innovation Quality of scientific research institutions Company spending on R&D University-industry collaboration in R&D Availability of scientists and engineers Utility patents per million population Availability of latest technologies Firm-level technology absorption Serbian innovative activities in comparison to other countries World Economic Forum’s Global Competitiveness Index

KEY CHALLENGES OF SCIENCE AND INNOVATION POLICIES IN SERBIAN ECONOMY NACIONAL INNOVATION CAPACITY (NIC) “National innovative capacity is the ability of a country - as both a political and economic entity - to produce and commercialize a flow of new-to-the-world technologies over the long term” Furman, Porter, Stern, 2002

CONCEPTUALIZATION OF THE POTENTIAL FOR DEVELOPING is National Innovation Capacity Speed of construction and establishment of NIS economy and knowledge-based society is conditioned by the achieved level of knowledge and degree of development of infrastructure to create your own and download and diffusion of foreign technology. NIC is the capacity, as well as political and economic entity, to produce and commercialize new technologies in the long run. NIC includes: 1. Presence of a strong innovation infrastructure 2. Specific innovation environments present in a country’s 3. Links between the common innovation infrastructure

Innovation capacity Absorptivecapacity Diffusion and linkages Demand (market pull) R&D supply National Innovation Capacity Framework

Absorption capacity is the ability to take new knowledge and adopt imported technologies. This ability is crucial for transition economies caught in port development and innovation. IR capability is important for generating new knowledge and as a mechanism for their absorption. Diffusion is a key mechanism for reaping economic benefits from investment in R&D, as well as to increase absorptive capacity. Demand for R&D and innovation is a key economic mechanism that generates the process of creating goods in the IR, absorption and diffusion activities. Absorptive capacity Diffusion and linkages Demand (market pull) R&D supply

INNOVATION POLICY in next few steps!  Establishment of new enterprises  Increased level of productivity  Improvement of productivity  Service sector increase  Increase of employment

THANK YOU!