1. GREECE: Meeting of the National Councils for S&T policy of the EU Member Countries Prague,25-26 May 2006 National Research Council General Secretariat for Research and Technology, Ministry of Development Prof. Iacovos Vasalos

2. Discussion items Characteristics of the Greek National Innovation System Areas for discussion Role of governments in making a link between expectations and needs of the business sector on the one hand with the need to encourage research freedom and independence of the research sector on the other hand, and in fostering a link between R&D and innovation Content of the presentation:

3. Research expenditures in Greece IndexGreeceEU mean Gross Domestic Expenditure on Research and Development in relation to GDP 0,58%1,9% Business contribution to the Gross Domestic Expenditure on Research and Development 30%55%

4. Greece’s economy competitiveness innovation/technological upgrading business initiatives employment Greece’s economy competitiveness is based on three pillars:

5. Innovation / Technological upgrading Higher education institutions supervised by the Ministry of Education Public research and technology centers, most of which are supervised by the General Secretariat for Research and Technology, Ministry of Development The private sector The bulk of research activities in Greece is carried out by entities categorized into three major groups

6. Research and other personnel occupied in research and technological activities Number of persons ResearchersOther R&D personnel Total Personnel in private sector 223523424577 Personnel in public research centers 2.00024314431 Personnel in high education institutions 10.4716.82317.294 Personnel in non profit organizations 413980 Total14.74811.63526.382

7. Public research institutions administered by: Ministry of Development - General Secretariat for Research and Technology (GSRT) 12 Research Centers Ministry of Education 19 university establishments, including the Open University 14 technological educational establishments Ministry of Agriculture National Agricultural Research Institute Ministry of Health Hospitals

8. Although the Ministry of Education exerts great influence on the national research system due to the large number of universities in the total R&D effort, the only body that has explicit role in developing research and technology policy in Greece at present is the General Secretariat for Research and Technology (GSRT) of the Ministry of Development.

9. Areas for discussion  What tools seem to be appropriate for strengthening the chain „research, development and innovation“? Which type of measures have been identified as the most effective – fiscal schemes (direct support) or, e.g., tax deduction (indirect support) or others (platforms, clusters, etc.)? The following tools have been utilized to encourage innovation within the Greek economy: - Tax deduction of research expenditures - Direct support of innovative activities through subsidies - Formation of collaborative networks in areas of national priority

10.  How did the private sector participate in the preparation of measures and actions supporting the innovative behaviour of the business sphere? Or, was it first of all the activity of the government? There is a consultation process during which the business sector participates with its representatives

11.  What tools can be used to encourage the under-funded business sphere to innovate? What experiences have countries had with those tools? How are they (or will they be) evaluated? Networks of private and academic institutions in specific areas of sectoral technologies (PAVE) Evaluation: This tool appears to be the most effective way to engage SME’s and other enterprises together with academic institutions in collaborative work. However, the results are disappointing because in quite a few cases they lack the critical mass needed for innovation

12. Encouragement of the commercialisation of research results from Universities and research institutes (PRAXE A & B) Evaluation: Support of researchers to commercially exploit the results of R & TD for the creation of new, rapidly developing companies (spin-off) has been a priority for S&T in Greece. This program has met partially success, because for the first time an integrated approach for creating research intensive SME’s has been adopted.

13. Promotion of technology parks and research centres (ELEFTHO) Evaluation: Technology parks and research centres generate knowledge and technology which are essential in the modern economy. Incubators for high-tech, knowledge-intensive companies support the early and difficult phases of new companies and provide infrastructure and knowledge services essential for their development. Four private incubators have so far started up and the results are encouraging.

14. Creation of new technological and research collaborative networks (ESPRO) Evaluation: The promotion of long-term collaborations between public research institutions and private enterprises creates mechanisms for learning, for the transfer of technology and technical knowledge, and more generally reinforces the technological base and potential of productive agencies. However, this scheme seldom leads to the establishment of long term cooperation, a prerequisite for engaging Universities and research institutes in solving problems of the productive sector.

15. Development of Research Centers with the Participation of Users. Support of Laboratories Cooperating with Enterprises and Users of Research (AKMON) Evaluation: Strengthening the cooperation between companies, institutes of higher education and research centers is the objective of this action. The program matches company direct funding up to 2 mil Euro, providing there is a binding 2 to 4 year contract between the cooperating parties. There are indications that this action may be a catalyst for attracting multinational companies as part of their outsourcing strategy.

16.  Do these countries mean that a positive influence on innovative behavior of the private sector is possible and effective without threatening market conditions? The contribution of the private sector in research expenditure is today 30% of the total (0.58% of GNP) national expenditure. Encouraging the private sector to innovate is believed is possible without threatening market conditions. The above is secured by the strict application of state aid rules applied as required by EU regulations.

17.  How can national research councils promote innovation on the national level? Is there any way to influence innovation at the European level? The national research councils play a consultancy role for national research policy. Usually, their authority is derived from a mandate by a Ministry responsible for formulating national research policy for economic growth. The Ministries of Development in Greece has given the following mandate at present to the research council: - To draft a new national law for research with the goal of making the system more flexible and transparent - To open the system to international cooperation - To reorganize the public research Centers so that economies of scale are possible - To recommend policies for improving the knowledge potential from Universities and public research centers, and to exploit the value of this knowledge by fostering effective ways of cooperation between Universities, public research centers, and the private sector Coordination of policies at European level relating to innovation is an effective means of influencing European policies on innovation. The Open Method of Coordination is an effective way for mutual learning and EU policy makers have to take seriously the recommendations of the results produced by many expert groups over the last 24 months

18.  Should the system of R&D assessment also cover the innovative potential of scientific results? A flexible evaluation system should be adopted. This should take in account the primary mission of a researcher independently where he is located, that is a University or public research center. Four major parameters should be used for evaluation with different weighting factors dependent on the primary mission of a researcher’s activities. These are: - Public non competitive national funding - External funding from competitive national, international, and private sources - Scientific excellence as proven by publications in refereed journals taking in account impact factor in the specific field of research - Innovation potential as established by the funding obtained from industry, the number of cooperations and the participation in the creation of spin ofF companies