1. Lecture at the invitation of the Academy of Sciences of the Republic of Srpska - Banja Luka, 12 June 2008 - Networking: an Instrument for Promoting Innovation in South-East Europe Dr. Gilbert Fayl Secretary of External Affairs With contribution by Ulric Fayl von Hentaller, Adviser to the President European Academy of Sciences and Arts

2. Banja Luka, 12 June 2008 Education and R&D together make Innovation and Technical Change possible If national R&D (public & private) has very loose or non-existent ties to national productivity structure, investing in national R&D will simply subsidize other nation’s productivity, hence competitiveness – potential trap for CSE Simply pumping money in Education and R&D is insufficient Let’s recall that…

3. Banja Luka, 12 June 2008 Main Messages Globalisation necessitates new forms of co-operations – even between previously competing interests Choice of co-operative partners is a determining factor for success – NETWORKS National Science Academies have a pivotal role to play

4. Banja Luka, 12 June 2008 Maximize benefits from Innovation for Society Δ BENEFIT ~ f ( F, K, T, I, N, … ) Δ F – funds (domestic, EU, FDI, …) Δ K – knowledge (Science Academies, …) Δ T – education, continued training Δ I – infrastructure Δ N – network (local, national, international) …

5. Banja Luka, 12 June 2008 Innovation Introducing and efficiently using current and / or new solutions to improve the performance of an organisation, process or commercial offering (product or service) Optimally it leads to competitive advantage NB: Maximise use of accumulated knowledge

6. Banja Luka, 12 June 2008 EUROPE USA / ASIA Competitive Realities BIG COMPANIES 12 YEARS 7 YEARS MEDIUM SIZED COMPANIES 8 YEARS 5 YEARS SMALL COMPANIES

7. Banja Luka, 12 June 2008 The Free Market Self-regulates but brutal Demands highest possible profit – ie: jobs moving to areas of cheap workforce Produces winners and losers

8. Banja Luka, 12 June 2008 The Winners Access to large customer base - respond to existing demands or create new ones Provide conventional applications / products / solutions; not necessarily front-end technologies, e.g. IKEA Create novel applications / products / solutions; typically high-tech technologies, e.g. Microsoft NB: Technologies have different characteristics, eg. IT – small companies may be successful; pharmaceuticals – better for large conglomerates

9. Banja Luka, 12 June 2008 Key to Success Key driving forces of today’s progress and competitive success Creativity Imagination Communication Marketing Maximize knowledge content National Science Academy Network to create value chain, product chain, service chain

10. Banja Luka, 12 June 2008 Optimal Operation Disregard National Borders. Network regions with high potential for knowledge creation that possess: quality universities public & private research centres (Science Academies) that jointly possess complementarities in human resources and research infrastructures Take full advantage of: existing networks EU support mechanisms for co-operation between regions across national borders

11. Banja Luka, 12 June 2008 Approach bottom-up, pro-active - full involvement of Civil Society Focus regions in CSE – not limited to EU initiatives Value-chain – innovation cycle research, training, …, funds (private, public), …, end-users Optimal Network: Network of Networks

12. Banja Luka, 12 June 2008 New Forms of Networks in CSE Central- and Southeast European Innovation Area, CEIA – 2002 Central- and Eastern European Network, CEEN – 2003 Research, Innovation, Business Networks for Central- and Southeast Europe, RIBN – 2005

13. Banja Luka, 12 June 2008 Networks - ERA ERA provides the broad political framework Networks direct practical implementation of ERA Networks (Science Academies) help maximise the overall beneficial effect of ERA

14. Banja Luka, 12 June 2008 Intended Side Effect: A Competitive CSE Integrate Network members and their regions into the ERA Enhance CSE innovation potential Support successful integration of CSE into the EU development of democratic and transparent governance

15. Banja Luka, 12 June 2008 Benefit to Society CSE more attractive place for investment. Enhanced job creation potential More and better jobs Reverse Brain-Drain Enhance Social Stability…. ENSURE SOCIETAL VIABILTY

16. Banja Luka, 12 June 2008 Call it like it is…

17. Banja Luka, 12 June 2008 CSE used to form Vanguard of Europe There is a Unique Opportunity to Reclaim that Place

18. Banja Luka, 12 June 2008 Demonstrate Trustworthiness Ability to be a reliable partner Willingness to work together with anybody Trumpet your own worth Perceived “Unique Value-added” Become THE “Regional Gateway” Make sure everyone knows about you Understand “the Brussels Way” Get the best; Be part of it; Learn the rules Our Humble Suggestion

19. Banja Luka, 12 June 2008 CSE used to form Vanguard of Europe We need you and You need us ….so lets do it together

20. Banja Luka, 12 June 2008 Welcome to the world of NETWORKING. Thank you for your Attention. gilbert. fayl@european-academy.at ulric.fvh@european-academy.at ulric.fvh@european-academy.at