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 Paolo Correa, World Bank, Stanka Petkovska, Ministry of Education and Science, Macedonia 21 November 2013 Smart Specialization Workshop, Skopje

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/events /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. A REGIONAL STRATEGY FOR RESEARCH AND INNOVATION: Governance Structure Higher education Private sector Research institutes Advisory Body Regional Experts Advisory Body 3 Provided support and advice to the Steering Committee and ensured engagement with regional stakeholders World Bank, European Commission & Regional Cooperation Council World Bank, European Commission & Regional Cooperation Council Beneficiary Entities S TEERING C OMMITTEE Project management and decision-making body

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

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

6. U NDERLYING C AUSES Four intermediate goals are considered: Improve the research base and conditions for research excellence. Promote collaboration and technology transfer between research institutions and industry. Enable business Investments in Research and Innovation. Strengthen the governance of research and innovation policies.

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. THE VALUE OF REGIONAL COLLABORATION How?

11. T HE V ALUE OF R EGIONAL C OOPERATION STABILITY of programs and policies (including predictability of funding); SCALE (avoiding duplication and reaching appropriate critical mass in key sectors) MERITOCRACY (as the rule of the game for the research community); GOVERNANCE and results- Orientation 11

12. 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. The program will promote the concentration of resources in core research groups capable of achieving international standards of excellence. In addition, the program will encourage research mobility within the region, the training of young scientists, and doctorates and master’s degrees in selected sectors. 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). A non-profit regional organization to supervise the implementation of these programs and promote policy reforms and systematic capacity building — The Western Balkans Innovation Strategy Exercise — (WISE)

13. SMART SPECIALIZATION ( THE NETWORK OF EXELLENCE PROGRAM) POTENTIAL PRIORITIES FIELDS: renewable energy, aquaculture, and marine culture fields; fields of technology (nanotechnology and biotechnology) specific fields of economic activity (such as agriculture and health); and some fields of biological sciences and chemistry in which the region shows a higher scientific performance.

14. T HANK Y OU !