1. Establishment and strengthening of a national research and innovation system: Experience from the German Research System and DFG’s operations. Dr. Jörg Schneider Deutsche Forschungsgemeinschaft (German Research Foundation – DFG)

2. joerg.schneider@dfg.de Warning ….. Statistics – at least recent statistics – are difficult to obtain. Therefore, some of the figures are more educated guesses…. But always good enough to make the point I want to make. ! 2

3. Innovation System – a healthy tree … R&D products for Society, Economy, Health, Environment… …fed by pre-competitive applied research, problem-driven… … and growing on basic research, science-driven 3

4. … if provided for adequately! € € € € €€ € € € € € € € € € € € € € € Top down funding, problem- oriented € € € € € € € € € € € € € € € € € € Bottom up funding, quality-oriented, but no thematic programmatics! Industrial products Advice for politics And society Healthcare Supply of food, Water, energy Sound bio- diversity Clean & healthy environment € € € € € € € € € € € € 4

5. (estimated according to BMBF Report 2014) 84 Mrd. € for R & D Federal 16,4 Enterprises 51,5 Joint Funding States: 2,3 Federal: 5,1 Federal Research Institutes 1,7 Universities Länder: 8 (+10 for educ.) Bund: 1,1 Federal progr., problem-oriented 7,7 Other 2,8 DFG MPG WGL HGF FhG … joerg.schneider@dfg.de States 13,3 International Research Institutes 1,0 R&D Expenditures in Germany 2011 5

6. ► In March 2000, the European Council decided, during its Summit in Lissabon, to develop Europe into “the most competitive and the most dynamic knowledge-based economy in the world” by 2010. ► In order to achieve this ambitious aim, two major measures were decided: 1.To increase employment throughout Europe 2.To increase R&D expenditure upt to 3% of GDP ► Germany is close, the Government wants more, but….. joerg.schneider@dfg.de Lissabon-Agreement: 3% of European GDP for R&D 6

7. joerg.schneider@dfg.de Gross domestic expenditure on RD in selected countries Datenquelle: OECD (2015), Main Science and Technology Indicators, Vol. 2014/2, OECD Publishing, Paris. Zu Singapur und Namibia: http://data.uis.unesco.org 3,5 % 2,0 % 4,0 % 2,9 % 3,3 % 3,0 % 3,3 % 2,4 % 2,8 % 2,2 % 1,9 % 2,0 % 1,7 % 1,6 % 0,8 % 0,1 % % GDP It is important that the private sector takes responsibility! 7

8. joerg.schneider@dfg.de Triadic patent families in selected countries 2011 total number number per million inhabitants Source: OECD (2014) http://dx.doi.org/10.1787/factbook-2014-63-de 8 76% 61% 66% 61% 59% 55% 46% 47% Triadic: patents are registered in Europe, Japan & US

9. Major Players within German Research System (simplified!!!) joerg.schneider@dfg.de Institutional funding Federal Government Länder Private sector Intramural research laboratories Federation of Industrial Cooperative Research Associations DFG HGF MPG FhG WGL Federal institutions performing R&D Länder insti- tuitions per- forming R&D Academies Higher Education Sector Project funding Federal Government Private sector DFG Federal Government Länder Governments Business enterprise sector Source: BuFo 2000 Research -Funders -Performers 9

10. Why is the German system so complicated? joerg.schneider@dfg.de 1.Deutsches Grundgesetz (German Constitution) in Article 5 (Basic Human Rights): The arts and sciences, research and education are free. Thus, the Govern- ments have to provide free money! 2.On the other hand, the Governments have to ensure problem-oriented research (competitiveness of econo- my, well-being of citizens and nature). 3.Finally: according to the Grundgesetz and the principle of subsidiarity the responsibility for science and education (and for the universities) lies with the Länder (federal states), not the Federal Government. 10

11. What does it mean for research (funding)? Nearly all universities belong to the 16 federal states, funding for teaching and basic funding for research from states, not from federal government! Due to the German Constitution (Grundgesetz), the Federal Government is not allowed to support universities directly, very few exceptions which have to be legalized by treaties between federal government and all 16 states! Extra-university research institutes (Max-Planck, Fraunhofer, Helmholtz, Leibniz) are jointly funded by federal and state governments (as regulated by constitution, law and several by-laws). Conclusion: it may look complicated, but it is a very well ballanced interplay between several key (f)actors joerg.schneider@dfg.de11

12. Major Players within German Research Funding (simplified!!!) joerg.schneider@dfg.de Institutional funding Federal Government Länder Private sector Intramural research laboratories Federation of Industrial Cooperative Research Associations DFG HGF MPG FhG WGL Federal institutions performing R&D Länder insti- tuitions per- forming R&D Academies Higher Education Sector Project funding Federal Government Private sector DFG Federal Government Länder Governments Business enterprise sector Source: BuFo 2000 Research -Funders -Performers 12

13. joerg.schneider@dfg.de Division of tasks within the public system Problem-driven researchScience-driven research Institutional funding Leibniz Institutes Helmholtz Institutes Federal Research Inst. Joint Research C. EU AiF Member Institutes Max-Planck Institutes Fraunhofer Institutes CERN EMBL Project funding Ministerial Funding Pro- rams (e.g. Water management, Biotech) EU Funding Prg. (e.g. Car of the Future, Cardiovascular Diseases) DFG Fellowship programs (DAAD, AvH, EU-Marie Curie) European Research Council (ERC) 13

14. ► Federal Government – top down thematic programs ► Federal Government – DAAD and AvH ► Federal Government – federal ministerial research institutes ► Länder Governments – universities ► Länder Governments – federal ministerial research institutes ► Both together – Joint funding of ●German Research Foundation DFG ●Max Planck Society ●Fraunhofer Society ●Helmholtz Association ●Leibniz Association ●various smaller institutions ► Further joint efforts to strengthen innovation system joerg.schneider@dfg.de German Research System – publically funded 14

15. joerg.schneider@dfg.de R&D Budgets of Federal Ministries Source: Federal Report on Research and Innovation 2014, BMBF 15

16. joerg.schneider@dfg.de Research project funding by Federal Ministries Source: Federal Report on Research and Innovation 2014, BMBF 16

17. ► Federal Government – top down thematic programmes ► Federal Government – DAAD and AvH ► Federal Government – federal ministerial research institutes ► Länder Governments – universities ► Länder Governments – federal ministerial research institutes ► Both together – Joint funding of ●German Research Foundation DFG ●Max Planck Society ●Fraunhofer Society ●Helmholtz Association ●Leibniz Association ●various smaller institutions ► Further joint efforts to strengthen innovation system joerg.schneider@dfg.de German Research System – publically funded 17

18. joerg.schneider@dfg.de Mobility Funding by Federal Government Federal Foreign Office184 Mio € 38 Mio € Fed. Min. Education & Research101 Mio € 60 Mio € Fed. Min. Economic Coo. & Development 40 Mio € 6 Mio € European Commission (Erasmus ….) 60 Mio € Other Sources 45 Mio € 6 Mio € Total budget430 Mio € (2014) 110 Mio € (2013) mobility of students/education sector mobility of researchers 18

19. ► Federal Government – top down thematic programmes ► Federal Government – DAAD and AvH ► Federal Government – federal ministerial research institutes ► Länder Governments – Universities ► Länder Governments – federal ministerial research institutes ► Both together – Joint funding of ●German Research Foundation DFG ●Max Planck Society ●Fraunhofer Society ●Helmholtz Association ●Leibniz Association ●various smaller institutions ► Further joint efforts to strengthen innovation system joerg.schneider@dfg.de German Research System – publically funded 19

20. Institutions of Higher Education IHE joerg.schneider@dfg.de In Germany (2012): 427 IHE with 2,5 Mio. students 26 % IHE are universities (108) with 65% of all students 74% IHE are Universites of Applied Sciences – Fachhochschulen and similar 46% pupils from one year go to IHE  PhD can only be granted by Universites In Germany (2012): 427 IHE with 2,5 Mio. students 26 % IHE are universities (108) with 65% of all students 74% IHE are Universites of Applied Sciences – Fachhochschulen and similar 46% pupils from one year go to IHE  PhD can only be granted by Universites Source: Federal Statistics Bureau Universities of Applied Sciences 108 Universities 65% of students 31% of students. % of Students 20

21. joerg.schneider@dfg.de R&D at German Universities – Third Party Funding 2012 Source: www.statista.com 21joerg.schneider@dfg.de Basic funding for R&D by Länder: about 10 Bil. € DFG Federal Government Private Sector European Union Foundations Länder Total

22. ► Federal Government – top down thematic programmes ► Federal Government – DAAD and AvH ► Federal Government – federal ministerial research institutes ► Länder Governments – universities ► Länder Governments – federal ministerial research institutes ► Both together – Joint funding of ●German Research Foundation DFG ●Max Planck Society ●Fraunhofer Society ●Helmholtz Association ●Leibniz Association ●various smaller institutions ► Further joint efforts to strengthen innovation system joerg.schneider@dfg.de German Research System – publically funded 22

23. ► 80 Institutes ► Budget: 1.8 B € ► 17,000 employees incl. 5,200 scientists ► plus 13,400 „students“ ► Central Administration with 500 admin. staff ► Mission: high quality basic research - „Nobel Awards“ Research Organizations: Max-Planck Society joerg.schneider@dfg.de Basic research Harnack-prinziple 23

24. Research Organizations: Fraunhofer Society ► 66 Institutes ► Budget: 1.9 B € ► 22,000 employees ► Incl. 6,403 „students“ ► Central Administration with 300 admin. staff ► Mission: high quality applied research - „earn money“ joerg.schneider@dfg.de applied research 30/30/40 24

25. Research Organizations: Helmholtz Association ► 18 Institutes ► Budget: 3.8 B € ► 33,000 employees ► Incl. 16,000 scientists ► Central Office with 70 admin. staff ► Mission: high quality problem-oriented, long- term research joerg.schneider@dfg.de Long term Large instruments 25

26. Research Organizations: Leibniz Association ► 86 Institutes ► Budget: 1.5 B € ► 17,000 employees ► Incl. 8,000 scientists ► Central Office with 60 admin. staff ► Mission: high quality problem-oriented research joerg.schneider@dfg.de Regular independent evaluation 26

27. ► Federal Government – top down thematic programmes ► Federal Government – DAAD and AvH ► Federal Government – federal ministerial research institutes ► Länder Governments – universities ► Länder Governments – federal ministerial research institutes ► Both together – Joint funding of ●German Research Foundation DFG ●Max Planck Society ●Fraunhofer Society ●Helmholtz Association ●Leibniz Association ●various smaller institutions ► Further joint efforts to strengthen innovation system joerg.schneider@dfg.de German Research System – publically funded 27

28. joerg.schneider@dfg.de Pact for Research and Innovation Pakt für Forschung und Innovation The Pact for Research and Innovation is designed to give financial planning security to institutions that are jointly funded by the Federal Government and the Länder (states): ► Max Planck Society MPG ► Fraunhofer Society FhG ► Helmholtz Association HGF ► Leibniz Association WGL ► German Research Foundation DFG 2005 – 2010: Budget increase of 5% every year 2011 – 2015: Budget increase of 5% every year 2016 – 2020: Budget increase of 3% every year 28

29. joerg.schneider@dfg.de Higher Education Pact 2020 Hochschulpakt 2020 Pillar 1: Program for the admission of additional university entrants 2007 – 2023 Federal Government invests 20.3 billion € states invest 18.3 billion € for new university places for students Not for research!!!! !!! Pact 2020 come on top of Quality Pact for Teaching !!! 2011 – 2020 Federal Government provides 2 billion € for the improvement of teaching at universities 29

30. joerg.schneider@dfg.de Higher Education Pact 2020 Hochschulpakt 2020 Pillar 2: Program allowances (overheads) for projects funded by DFG 2010 – 20152.3 billion € as pilot project exclusively by Federal Government for 20% overheads on DFG project funding 2016 – 2020 2.2 billion € now jointly 20% by Federal Government 2% by state governments together (according to Königstein Key) 30

31. joerg.schneider@dfg.de Excellence Initiative Top-class research for even better competitiveness 2005 – 2011 1.9 billion € 2012 – 2017 2.7 billion € 2017 – ??? similar investments 75% Federal State 25 % host state of funded institution 2005 – 2017; currently funded: ► 45 Graduate Schools ► 43 Clusters of Excellence ► 11 Institutional Strategies 31

32. joerg.schneider@dfg.de December 2014 – a Turning Point in German Research Funding ► Both Houses of the German Parliament agree on loosening the constitutional prohibition of long-term federal investments in university research! ► From 2015 on, Federal Government will cover annual budget of the states for students support 1,2 billion € in 2015. Condition: states have to invest money in education 32

33. ► Federal Government – top down thematic programmes ► Federal Government – DAAD and AvH ► Federal Government – federal ministerial research institutes ► Länder Governments – universities ► Länder Governments – federal ministerial research institutes ► Both together – Joint funding of ●German Research Foundation DFG ●Max Planck Society ●Franhofer Society ●Helmholtz Association ●Leibniz Annsociation ●various smaller institutions ► Further joint efforts to strengthen innovation system joerg.schneider@dfg.de German Research System – publically funded 33

34. joerg.schneider@dfg.de Institution Federal : States share of Länder (federal states) Helmholtz 90 : 10 host state Fraunhofer 90 : 10 66% host state, 33% according to Königstein key (of 30 %!!!!!) Max Planck 50 : 50 50% host state, 50% according to Königstein key Leibniz50 : 50 research institutes 75% host state, 25% according to Königstein key service institutes 25% host state, 75% according to Königstein key DFG (basic funds) 58 : 42 according to Königstein key DFG (Excellence In.) 75 : 25 host state DFG (20% overheads) DFG (22% overheads) 100 : 0 91 : 9 No share according to Königstein key DFG (large equipment) 50 : 50 Host state Academies' Program 50 : 50 host state Leopoldina 80 : 20 host state Wissenschaftskolleg 50 : 50 host state Research at FHs 100 : 0 no share Joint Funding from 2016 ! 34

35. joerg.schneider@dfg.de Federal StateShare in %Federal StateShare in % Baden-Würtemberg12,81503Niedersachsen9,31388 Bayern15,19297Nordrhein-Westfalen21,44227 Berlin5,03822Rheinland-Pfalz4,81284 Brandenburg3,10452Saarland1,23114 Bremen0,93119Sachsen5,16869 Hamburg2,54537Sachsen-Anhalt2,92874 Hessen7,22575Schleswig-Holstein3,37218 Mecklenburg-Vorpommern2,08237Thüringen2,79484 Sum100% Königstein Key (2010) 35

36. DFG is driven by scientific demand ► DFG acts and funds bottom up ► no thematic priorities (rare exceptions) ► no regional priorities ► no political priorities ► no political influence ► everything decided by scientists ► everything in competition ► everything in peer review ► Funding only if institution agrees on ethical standards joerg.schneider@dfg.de 36

37. DFG‘s Funding Instruments – all open to international co-operation joerg.schneider@dfg.de and to foreign researchers working in Germany Funding Programmes Infrastructure International Scientific Contacts Coordinated Programmes Individual Grants ► Individual Research Grants ► Mercator Guest Professorships ► Reinhard Koselleck-Projects Awards ► Gottfried Wilhelm Leibniz-Prize ► many more Promoting Young Researchers ► Research Fellowships ► One‘s own position ► Emmy Noether-Programme ► Heisenberg-Programme ► Research Units ► Priority Programmes ► Collaborative Research Centres ► International Research Training Groups ► Excellence Initiative 37

38. DFG is driven by scientific demand joerg.schneider@dfg.de ► DFG acts and funds bottom up ► no thematic priorities (rare exceptions) ► no regional priorities ► no political priorities ► no political influence ► everything decided by scientists ► everything in competition ► everything in peer review ► Funding only if institution agrees on ethical standards 38

39. How is the DFG structured? joerg.schneider@dfg.de Senate (36+3 scientists) Executive Commitee Ex. Board & 8 Vice- Presidents Joint Committee (Senate & 17/32 Governmental representatives) Executive Board President Secretary General Head Office Reviewers  assess funding proposals All eligible scientists and academics 48 Review Boards (elected!) General Assembly (members!) elect, select, appoint cooperate  approves annual report and account  approbates the Executive Committee  establishes directives ensure quality 39

40. Presidents (since1980) E. Seibold(1980 - 1985) H. Markl(1986 - 1991) W. Frühwald(1992 - 1997) E.-L. Winnacker(1998 - 2006) M. Kleiner(2007 - 2012) Vizepräsidenten President + 8 vice-presidents of DFG Executive Committee M. Famulok (Chemistry) P. Funke (History) W. Ertmer (Physics) K. Becker (Biology) L. Bruckner- Tuderman (Medicine) M. Hochbruck (Mathematics) W. Schön (Law) F. Allgöwer (Engineering) M. Barner, President German Founders Association, Guest Peter Strohschneider joerg.schneider@dfg.de 40 Secretary General: Ms Dorothee Dzwonnek

41. DFG is driven by scientific demand joerg.schneider@dfg.de ► DFG acts and funds bottom up ► no thematic priorities (rare exceptions) ► no regional priorities ► no political priorities ► no political influence ► everything decided by scientists ► everything in competition ► everything in peer review ► Funding only if institution agrees on ethical standards 41

42. The DFG´s Head Office joerg.schneider@dfg.de Department I Central Administration Executive Offices Quality Assurance and Programme Development Inter- national Affairs Press and Public Relations Economics and Auditing Berlin Office Internal Advisory Committee Extended Executive Board Heads of Divisions and Executive-Level Offices Executive Board President Secretary General Deputy Members: Heads of Departments I to III Forum Heads of Divisions  Budget and Accounting  Human Resources/Legal Affairs  Information Technology and Infrastructure  Information Management  Administrative Support for DFG Offices Department II Scientific Affairs Department III Coordinated Programmes and Infrastructure  R esearch Centres  Research Careers  Scientific Library Services and Information Systems  Scientific Instrumentation and Information Technology  Humanities and Social Sciences  Life Sciences 1  Life Sciences 2  Physics, Mathematics, Geosciences  Chemistry and Process Engineering  Engineering Sciences 42

43. DFG is driven by scientific demand joerg.schneider@dfg.de ► DFG acts and funds bottom up ► no thematic priorities (rare exceptions) ► no regional priorities ► no political priorities ► no political influence ► everything decided by scientists ► everything in competition ► everything in peer review ► Funding only if institution agrees on ethical standards 43

44. DFG is driven by scientific demand ► DFG acts and funds bottom up ► no thematic priorities (rare exceptions) ► no regional priorities ► no political priorities ► no political influence ► everything decided by scientists ► everything in competition ► everything in peer review ► Funding only if institution agrees on ethical standards joerg.schneider@dfg.de 44

45. International cooperation for setting the right perspective! 45 joerg.schneider@dfg.de Major task: working on framework conditions for optimal international cooperation for German researchers

46. joerg.schneider@dfg.de Global forum for non-ministerial research (funding) organizations 46 Internationally: Cooperate on joint standards of projects selection, scientific conduct, general ethics, open access, Brain circulation, IPR, ….. Annual Regional Meeting Sub-Saharan Africa 2014 – 2016(?)

47. Advocating basic research once again and finally…… Top down funding, problem- oriented Industrial products Advice for politics And society Healthcare Supply of food, Water, energy Sound bio- diversity Clean & healthy environment No basic research: Results have to be brought in from an outside system! Same is true for students!!!!! 47

48. joerg.schneider@dfg.de GDP and Expenditure on R&D (GERD) per capita in selected countries, 2011 or in the most recent year Source: http://data.uis.unesco.org,http://data.uis.unesco.org datasets: demographic and socio- economic, science,technology and innovationatasets: demographic and socio- economicscience,technology and innovation 48 PPP$: adjusted to purchasing power

49. Das Wissenschaftssystem in Deutschland, Dr. Jörg Schneider Bonn, März 2015 Gross expenditure on R&D (GERD) in selected countries 49 Datenquelle: http://data.uis.unesco.org, Dataset: Science, technology and innovation. Indicator GERD in '000 current PPP$.

50. Thank you very much for your attention joerg.schneider@dfg.de Dr. Joerg Schneider Head of International Division Deutsche Forschungsgemeinschaft joerg.schneider@dfg.de 50