Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

BACK TO THE TOP – INSITUTION, INNOVATION AND INFRASTRUCTURE

International Competitiveness Strategy

INDUSTRY AND INNOVATION

Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

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Europe has to change

By the year 2050, the countries of the EU might no longer be among the 10 strongest economies in the world

Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

BACK TO THE TOP – INSITUTION, INNOVATION AND INFRASTRUCTURE

Current statusDrop in competitiveness rankings

2011 38. place

place place

Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

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What is holding us back?

Slowdown in productivity growth

Economic growth based on external debt

Inefficient institutions, excessive regulation and corruption

Large internal debt and incomplete transport infrastructure

Inefficient R&D and innovation support

Reforms are needed in order to just maintain our current position

Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

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Worst-case ScenarioInstitutions

the inefficiency and corruption of the public sector increases burdening the private sector, particularly entrepreneurs

public services will become more expensive, their quality, however, does not go up

Infrastructurethe benefits arising from the advantageous geographic position of the Czech Republic in Europe are slowly disappearing

Regional imbalances are rising

Innovationthe role of the CR is being reduced to that of a passive supplier to other countries, slowing economic growth and sustainable development

falling standards in Czech education are starting to slow the economy and the competitiveness of the Czech workforce

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Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

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Objective of the Competitiveness Strategy

By 2020, the Czech Republic will be one of the 20 most competitive economies in the World

Vision of the Strategyhigh and sustainable standard of living based on competitive economy

Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

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Tools of the Strategy

How do we achieve this goal?

9 key pillars and two links to other strategic documents (cohesion

policy, export strategy)

43 specific projects

Almost 250 detailed measures

Interaction with other conceptual documents and policies (Energy

Policy, National Reform Program, National Innovation Strategy)

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Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

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Examples of projects in 3 key pillars

Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

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Innovation Pillar

Vision: Innovation as a source of future prosperity for the Czech RepublicStatus quo

Existing sources of growth (e.g. FDI) are gradually being depleted

Innovation by companies mostly takes place outside of the Czech Republic

Domestic innovation is being hindered by the absence of non-technical skills, a low level of cooperation with companies (innovations take place in companies, not in state research institutions or academia)

The system of evaluation and financing of R&D does not support excellence

ToolsIdentification of key technological areas in the Czech Republic on the basis of foresight – prioritising support for R&D&I

Institutional reform of the innovation system – clear definition of roles+ strong central authority

Changes in the evaluation of R&D institutions and programs impacting funding – support for excellence

Optimising and developing services to support infrastructure for technology transfer

Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

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Global trends will guide us on the way to the top

Prioritising public funding and support of innovation and R&D

Foresight as a service for companies and partners

Building a system and developing capabilities for monitoring world markets and progres in the field of R&D and new high technologies

Identification of key technological areas for the future of the Czech Republic

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Development of innovative businesses

Establishing seed fund

Market intelligence and internationalization

Strategic management, targeted human resources development and innovation management

IPR services

The US have 5x higher investment to venture capital than the EU

Only 6% of new innovative companies created since 1975 originate in the EU

Over 70% originate in the US

Czech companies as global innovators

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Cooperation and knowledge transfer between companies and R&D sector

Financing R&D at universities

86,8 % (9 216 mil. CZK) from CZ public sources

8,0 % (854 mil. CZK) from foreign public sources (EU funds)

Only 1,1 % (106 mil. Kč) from private commercial sources

low level of cooperation

97,5% of R&D expenditures from businesses goes to the business sector, only 0,4% goes to universities

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Matchmaking of R&D results and businessesApplied research database

Information about innovative ideas and developed products for commercialization

Internet portal for innovative businessInformation about institutions and their activities in the innovation ecosystem

Information about innovation-support programs

Information about services for innovative business

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Decreasing numbers of graduates from technical universities

incentives for the study of technical and scientific fields

Connecting education with real demands of the job market

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The implementation mechanism of the Strategy:Main principles

Budget responsibility

Smart solutions which will help to overcome economic crisis

National project with significance for all segments of the society

Serves the interests of the country and will be implemented over several election periods, reflects the interests of the whole society (opposition, businessmen, trade unions, etc.)

Cooperation among the ministries is essential – not isolated solutions

Better cooperation and coordination among the ministries, conceptual and interconnected solutions

Modern public administration serving the citizens and businesses

Functional composition of the Government Council on Competitiveness and Information Society

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250 specific measures assorted into programmes:

Public sector

Education and employment

Business environment

Economy of global innovation

Experiences from GB and DenmarkCreation of specific implementation mechanism

Engagement of all key ministries

Thorough monitoring of the implementation process and responsibility of the involved ministries

Stressing the need for particular and measurable results

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Government Council on Competitiveness and Information Society (RVKIS)

The first vice-president of Council – Minister of Industry and Trade

Working committees of Council – full responsibility of ministers for implementation of measures

Creation of specialized unit at the Ministry of Industry and Trade – Delivery unit

Regular assesment reports on the progress of the implementation in the individual programs of the Strategy

Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

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RVKISRVKIS

Government of the Czech RepublicGovernment of the Czech Republic

Responsibility of ministers

Information about

implementation

Steering Committee for CompetitivenessSteering Committee for Competitiveness

PresidencyPresidency

WC Public SectorWC Public Sector

WC Education and EmploymentWC Education and Employment

WC Business EnvironmentWC Business Environment

WC Economy of Global InnovationsWC Economy of Global Innovations

Delivery Unit at the Ministry of

Industry and Trade

Delivery Unit at the Ministry of

Industry and Trade

QualityQuality

TimeTime BudgetBudget

ImpactImpact

Solving factual

problems

Budget administrator

(MF)

Budget administrator

(MF)

Public

Platform for communicatio

n with the public

Dealing with economic impacts

Assesment reports, early

reaction capability

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Coordination role of Ministry of Industry and TradeCreation of the Delivery Unit (DU)

A detailed implementation plan

Timetable for RVKIS Working Committees sessions

Implementation process monitoring (including benchmarking of selected sets of measures)

Cooperation with expert bodies on methodology of projects

Structure of the projects

Risk management (only for the most complex reforms)

Stabilizing results

Sorting the individual measures into four dedicated programmes falling into the area of competence of respective ministries

Public Sector

Education and Employment

Business Environment

Economy of Global Innovation

Coordination role of the Delivery Unit when negotiating measures

Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

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Evaluation of the implementation of individual measures

Realization of the 4 programmes

Achievement of measurable results within individual measures

Outlook for the upcoming period and recommendations for risk mitigation

Competitiveness indicators

Labor productivity per hour

Labor costs per unit

Real effective exchange rate

Implementation Progress Report31. January, 15. April, 30. June a 31. October 2012

In the following years, the report will be presented each 6 months

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Inclusion of the public into implementation processTransparency of implementation process

Keeping the public continuously informed about achieved results

Public mandate by the prime minister commissioning the ministries to implement the Strategy

Internet portal

Platform for comments and suggestions of the public to the implementation

Special sessions of the RVKIS

Attended by representatives of interest groups

Discussions of impacts and benefits of the implementation of the Strategy and media coverage

Round tables with experts

Keeping the public regularly up-to-date via press releases 

Ing. Martin Tlapa, MBADeputy Minister of Industry and Trade

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Thank you for your attention.