1 Government sector and Smartness of the regional innovation system Nikos Zaharis SEERC RIS3 Training Workshop November 20, 2012, Skopje

Assessment of the Government Sector

Strategic approach to regional growth and innovation policy National R&D Programme National Strategy for Scientific R&D Activities 2020 Program for Promotion and Support of the Technological Development ( ) The Industrial Policy of the Republic of Macedonia Action Plan for Competitiveness

Strategic approach to regional growth and innovation policy (cont.) Innovation Strategy of the Republic of Macedonia for (ISRM) –Enhance the business sector’s propensity to innovate –Strengthen human resources for innovation –Create a regulatory environment in support of innovation –Increase knowledge flows and interactions between innovation actors New “Law on Innovation Activity”

Evaluation and monitoring system No evidence of assessment of direct and indirect impacts of interventions and no systematic approach towards evaluation and monitoring. Participation of the country at the 2011 Innovation Union Scoreboard exercise: “assessed as one of the modest innovators” The new “Law on Innovation Activity” assigns the monitoring and evaluation responsibility to the Ministry of Education and Science

Local ecosystem governance

Budget allocated to R&I ISRM: A total of 18,819,999 € for the 3 years Action Plan ( ) a)Strengthening the business sector propensity to introducing innovations: 8,955,000 € b)Supporting the relevance of university education with respect to innovations: 6,209,999 € c)Creating a regulatory environment conducive to innovations: 20,000 € d)Increasing the flow knowledge among the innovation stakeholders: 3,635,000 € –Origin of the budget (state appropriations; EU IPA funds; other Donors)?.

The country as part of a larger region  The Steering Platform on Research for WBC (a high level strategic body to deal with European, multilateral and regional issues of Science and Technology policies in and with the WBCs).  The Regional Cooperation Council (  The World Bank project “Western Balkans Regional R&D Strategy for Innovation (2013)”.

Link of the country’s strategy with EU strategies The ISRM makes explicit reference to EUROPE 2020 and inclusion into the European Research Area”. Additionally ISRM is build upon the 2020 Vision for SEE: “South East Europe: Jobs and prosperity in a European Perspective” strategy”. The strategy identifies 5 pillars for development. –The 3 of them are the EUROPE 2020 pillars: Smart, Sustainable and Inclusive Growth. –Integrated Growth –Governance for Growth

10 Assessment of the smartness of the regional innovation and growth policy framework

1.Science sector interaction with regional economy Linkages very weak New legal framework (June 2012) for the establishment of incubators, technology parks, centres for technology transfer and university spin-off companies Successful cases come from the departments of mechanical and electrical engineering and informatics at Ss Cyril and Methodius University

2. Triple-helix interaction in setting priorities and developing policies Evidence of interaction in the preparation of the Innovation Strategy (ISRM ) and the Strategy for Scientific R&D Activities (NSSRA 2020) Real buy-in of both Strategies from the science sector and the economic sector remains a challenge. Entrepreneurship and Innovations Committee for Monitoring the Development and Commercial Exploitation of Innovations” –Chaired by the President of the Government –11 ministers and 5 “innovation activity experts” –High level of commitment –No guaranteed participation of the economic sector.

3. Policy co-ordination 8 committees (i.e. Committee for Education, Science and Sports, Committee for Competitiveness, National Entrepreneurship and Competitiveness Council, Scientific council etc) 3 agencies (APPRM, EIC, new “entity for encouraging innovative activities) Lack of coordination cited in many independent assessments New Innovation Law: Ministry of Education and Science seems to gradually get a status of lead authority on innovation

4. Main challenges for the next decade Retention of human capital/ fight brain drain Infrastructural integration into trans-European networks Protection of the environment. Social integration / help foster the inter-ethnic dialogue and collaboration

5. Main challenges with respect to RTDI performance Formation of RTDI niches through international collaborations, Leveraging the Diaspora potential Taking advantage of the new large-scale research infrastructures in nearby countries. Lack of funding for start-ups, and the virtual absence of VC. Raise the entrepreneurial spirit among the academic researchers. Eradicate practices of nepotism, plagiarism, and corruption in the academic sector.

6. Match of scientific strengths to economic needs The ICT sector The two export-oriented sectors (automotive parts and pharmaceuticals) seem to cover their needs in-house. In Genetics and Seismic Engineering there seems to be a considerable supply of knowledge that has not been commercially exploited up to now, In agricultural research and aquaculture the supply of knowledge that is relevant to the country’s economic specialisation is rather minimal. Recent project to upgrade lab infrastructure: results and impact?

7. Correspondence of perceptions between the science and enterprise sectors GfK survey on companies (20110; –less than 9% of companies have some links with Universities and 5% with research centres”. –Increased willingness to cooperate with ….. foreign research institutions (11%)” This lack of cooperation points toward a big gap between enterprise and science sector’s perceptions, goals and expectations.

8. Cooperation with neighboring countries World Bank, Regional R&D Strategy for the Western Balkan Countries Regional cooperation on HORIZON 2020 Access to ESFRI research infrastructures under planning in neighbouring EU member-states (Bulgaria, Croatia and Greece) and over-the- borders clustering activities funded by cross- border EU-funded projects

19 Thank you for your attention! Nikos Zaharis South East European Research Center 24, P. Koromila Str Thessaloniki - Greece