1. Western Balkans Regional R&D Strategy for Innovation Ministerial Meeting G ROWTH THROUGH R ESEARCH AND I NNOVATION IN THE W ESTERN B ALKANS — T HE M OMENT FOR A CTION Paulo Correa, World Bank October, 25 2013. Croatian Academy of Sciences and Arts, Zagreb

2. 7 Policy Reviews of key institutions, policies and programs: Country Papers The Western Balkans R&D Strategy for Innovation Technical Assistance: Inception Report — Regional R&D Strategy for Innovation in the Western Balkan Countries: Key Issues and Implications for Technical Assistance, World Bank (2011). 4 High Level Workshops with representatives from governments, research institutes, universities and private sector from all beneficiary entities, as well as international experts 3 Technical Studies ( The State of Scientific Performance of the WBCs; Survey of the status of research Infrastructure and technology transfer activities; and Assessment of Data Availability on Research and Innovation) and 5 technical notes : Overview and Main Report of the Status of Research and Innovation in the Western Balkans. Video : Research for Innovation: The moment for action Research for Innovation: The moment for action Website: http://www.worldbank.org/en/eve nts/2013/10/24/balkans- innovation-event An 18 Months Fact-Based Consensus Building Exercise 12 Visits to the region Outreach exercise and broader consensus building between 12/2011 and 8/2013

3. S UMMARY V IEW : THE STATUS OF THE RESEARCH AND INNOVATION SECTOR What/?

4. L OW R&D I NVESTMENT L EVELS

5. GERD/ Total Triadic patents C OSTLY R ESULTS OF R&D I NVESTMENTS US$ 1,000

6. S TRATEGIC V IEW INVEST MORE AND BETTER IN R&D POLICY REFORMS AND SELECTED INVESTMENTS A “SECTOR – WIDE” APPROACH The Vision

7. R&D E XPENDITURES PER C APITA (Predicted and Actual), 2007-11, Source: SCIMAGO; World Development Indicators. Note: To better illustrate the performance of countries in the Western Balkans, the axis has been cut at the values shown Data Source: UNESCO Statistics; World Development Indicators. BiH

8. T HE W AY F ORWARD

9. R EFORMS AND I NVESTMENTS TO FOSTER EFFECTIVE RESEARCH COMMERCIALIZATION AND INDUSTRY SCIENCE COLLABORATION 9 Intermediate GoalsPROPOSED ACTIONSMeasurement Build expertise and infrastructure for Intellectual Property Rights (IPR) management Promote higher levels of industry-science collaboration POLICY REFORMS Reform of IPRs legal Framework for publicly-funded research Employment and Higher Education Laws encourage commercialization and collaboration with industry INVESTMENT T ECHNOLOGY T RANSFER O FFICES : provide assistance in the management and commercialization of research outcomes; training and expertise development for TTOs; link with TT intermediaries. F UNDING of Prototype Development and Proof-of-Concept; and Grants for industry-science collaboration Increased share of research pool coverage by TTO services Increased number of research results disclosed to TTOs Increased number of patents and other IPRs Increased licensing activity Larger number of spinoff companies Higher number and value of licensing agreements & spinoff companies Increased volume of contract research

10. T HE V ALUE OF R EGIONAL C OOPERATION STABILITY of programs and policies (including predictability of funding); MERITOCRACY (as the rule of the game for the research community); SCALE (avoiding duplication and reaching appropriate critical mass in key sectors) GOVERNANCE and results orientation; cost reduction by rationalizing the usage of resources POSITIVE PEER PRESSURE, helping the development of country reforms 10

11. R EGIONAL P ROGRAMS 1.A research excellence fund to increase international collaboration with the scientific Diaspora and expand opportunities for young researchers. 2.Regional networks of excellence in selected fields – consistent with a strategy for “smart specialization” of the region. 3.A technology transfer facility to support and provide assistance at national level 4.An early stage innovation facility to complement the support to be provided by the Western Balkan Enterprise Development and Innovation Facility (EDIF). The Western Balkans Innovation Strategy Exercise — (WISE)

13. T HANK Y OU !