1. Jiří Drahoš Czech Academy of Sciences Research and development as the basis for innovation: A view from the research sector

2. Key EU documents Lisbon Strategy, creation of the European Research Area (ERA), 2000 EU: 3% GDP = 1% public + 2% private Czech Rep.: 1.55% 0.62% + 0.93% Aho Report: "Creating an Innovative Europe", 2006 Green Paper - The European Research Area: New Perspectives, 2007 The Community Framework for State Aid for Research and Development and Innovation, 2008

3. Czech strategy and innovation documents Law on aid for R&D, 2002 National research and development policy, 2004 National innovation policy, 2005 Long-term basic research guidelines, 2005 Revised law on aid for R&D, 2009

4. Main problems in the R&D and innovation system Poor links between individual research areas Public R&D support fragmented Inadequate spending on R&D Lack of European research infrastructure Inappropriate methodology for assessing R&D results Low researcher numbers Poor salaries Too few university graduates in technical and scientific disciplines

5. Problems in applying R&D results in Czech industry Growth of low-tech industry Small proportion of industry providing high added value Low demand from businesses: Czech companies do not ask for R&D results (either domestic or foreign) Unsatisfactory system of aid for cutting-edge innovation: - lack of financial resources - businesses struggling to survive - innovation = buying technology and know-how - scant involvement of businesses in EU framework programmes

6. Basic aims of R&D and innovation reforms Simplify aid for research and development Slash the number of budget chapters (currently 22) Support and encourage excellence in research and ensure its results are used to promote innovation Make aid programmes for R&D conditional on cooperation based on joint public and private funding Make the organisation of public research more flexible Ensure the supply of experts in research, development and innovation Get the Czech Republic fully involved in international cooperation in R&D and innovation

7. Problem of assessing R&D results: Poorly conceived changes in methodology Year Impact journalTechnology Patents Utility model* 2005 10 x (IF/med IF) 25 25 25 2006 4 + dtto 75 50/100 25 2007 5 + 15 x dtto 75 50/500 25 2008 5 + 140 x F*** 100 40/200/500** 40 * also prototype, application of the methodology, working model, authorised SW ** Unused/licence/EPO, USPTO, Japan ** Factor=(1-N)/(1+(N/0,14), where N=(P-1)/Pmax-1) P- journal ranking according to WoS Pmax - total number of journals in WoS category

8. Inappropriate assessment methods: Consequences for development and innovation Changes in the points rate (= CZK) in the 2007/2003 period Beneficiary Patent Technology Utility model (points: 25»40/200/500 25»100 25»40) Acad. Sciences 1.1 0.63 Univties 2.3 1.4 27 Businesses 10 1.1 10 SPO 0.7 0.8 8

9. Key faults in assessment methods Do not comply with the basic aims of the reforms: - do not support excellence in either research or development or innovation - prioritise quantity over quality (thus promoting mediocrity) - adversely affect motivation of those involved - hamper international cooperation (institutions heavily involved in foreign cooperation are penalised by reduction of points for joint publications) Unsystematically mix up outcomes of basic and applied research