SEE 2020 Smart growth workshop

WITH THE FINANCIAL SUPPORT OF THE

EUROPEAN UNION

SEE 2020 Smart growth workshop

Sarajevo, Bosnia and Herzegovina31 Jan – 1 Feb 2013

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Programming and Prioritisation – SEE Ministerial 2011

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2. Smart growth should be built on knowledge and innovation by:

i. Promoting „triple helix‟ linkages between academia, industry and policy makers;

ii. Promoting free flows of talent in the region by encouraging SEE economies in achieving bilateral/multilateral universal recognition of diplomas and abolishment of unnecessary visas and permits for students, academia and the business community;

iii. Encouraging “brain gain” through targeted networking with the diaspora and creating conditions favourable to eventual return, in particular through the establishment of a supportive entrepreneurial environment;

iv. Supporting private and public sector investment in R&D via coherent and regionally co-ordinated policies to enhance innovation and promote the knowledge economy and society;

v. Facilitating the participation of enterprises and scientific institutions from SEE in EU programmes and EUREKA and developing effective linkages with European institutions fostering innovation and knowledge (e.g., the European Institute for Innovation and Technology);

vi. Raising the level of knowledge absorption via policies that support existing clusters, networks, and centres of excellence to establish a regional cooperation framework fostering knowledge communities;

vii. Promoting natural science, maths and engineering studies while enhancing the quality of education provision and existing quality assurance mechanisms;

viii. Using available resources and private sector expertise to substantially increase the level of combined public-private sector investment in R&D as a percentage of GDP; and

ix. Considering measures to support business investment in R&D.

Programming and Prioritisation

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Smart growthLinkages between industry and academia

Enhance business innovation potential

Skills for Innovation

Secure a strong science and

technology base

i. Promoting Triple Helix linkages

iv. Support private and public investment in R&D via coherent and regionally co-ordinated policies to enhance innovationviii. Using available resources and private sector expertise to substantially increase public-private R&Dix. Considering measures to support business investment in R&D

ii. Promoting free flows of talentiii. Promoting brain gainvii. Promoting natural sciences, maths and engineering

v. Facilitating participation of SEE enterprises and scientific institutions in EU programmesvi. clusters, networks, centres of excellence

Policy co-ordination

Regional Working group on InnovationRegional innovation Committee?

Illustrative

Research Innovation


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technology base







Illustrative

Example actions• Information and brokerage events• Innovation competitions• SME vouchers• Business plan competitions• Entrepreneurship matchmaking events bringing together

entrepreneurs and investors• Technology watch service (patent searches, technology alerts,

consulting)• Infrastructure for high-quality business support services (e.g. business,

legal and IP consulting, accounting services, etc.) -web interfaces and/or accreditation.

• Facilitate the emergence of regional clusters and networks• Peer review in view of harmonising legal and tax framework favourable

to emergence of venture capital: protection of minority shareholder rights, avoiding double taxation, level of capital gains tax etc.

• Regional investment promotion events.

Research Innovation


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technology base







Illustrative

Example actions• Regional S&T fund • Regional centres of excellence• Support for project proposals and matchmaking for

FP7 and other international grants• Financing for joint diaspora-homeland research

projects• Peer review of evaluation and advancement

systems

Research Innovation


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technology base







Illustrative

Example actions• Innovation vouchers• Matching grants for SME and

academia co-operation• Facilitate Triple Helix co-operation

through seminars and matchmaking events

• Regional network of technology transfer offices, incubators, science parks

• Regional competence technology centres

• Regional web portal for industry-academia matchmaking and co-operation

Research Innovation


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technology base







Illustrative

Example actions• Recognition of diplomas• Liberalisation of work permits• Regional research fellowships• Student exchange programmes• Regional student competitions• Diaspora contact database• Grants for co-operation with diaspora

Research Innovation


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technology base







Illustrative

Example actions• Establish a two-tier regional co-ordination of

innovation policies: • peer review and best practice exchange

at working level; • decision making at the Ministerial level

• Peer review of governance in the science and technology system

Research Innovation

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SEE 2020 Monitoring – Smart growth

Monitoring of reforms in SEE

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Greater time and staff commitment

2005 20064th SEE ministerial in Sofia, Bulgaria, 10 June

Ministers agree on the need for a regional framework for investment consistent with EU principles and inspired by the OECD Policy Framework for Investment.

5th SEE ministerial in Vienna, Austria on 27 June

Ministers endorse a “Regional framework on Investment”

Completion of first Investment Reform Index

2nd Investment Reform Index released

2010 20116th SEE Ministerial

SEE 2020 Vision based on five pillars (integrated, smart, sustainable, inclusive and governance for growth

20127th SEE Ministerial

Endorsement of SEE 2020 headline targets

From the Regional Framework on Investment to SEE 2020

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Regional Framework on Investment

• Investment Policy• Investment Promotion

and Facilitation• Tax Policy• Anti-corruption and

Business Integrity• Competition Policy• Trade• Regulatory Governance• Human Capital and

Employment• Corporate Governance• SME Policy

Investment reform Index

• Investment Policy and Promotion

• Human Capital Development

• Trade Policy and Facilitation

• Access to Finance• Regulatory Reform and

Parliamentary Processes

• Tax Policy Analysis• Infrastructure for

Investment• SME Policy

SEE 2020

• Integrated• Smart• Sustainable• Inclusive• Governance for growth

IRI assessment methodology

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Dimensions Sub-dimensions

1 Investment Policy and Promotion

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1.1 FDI Policy

1.2 Investment Promotion and Facilitation

5.3 ACAAs

Sub-Dimensions Indicators

1.1 FDI Policy

1.1.8 Intellectual Property Rights

Indicators Level of Reform

1 2 3 4 5

Investment Reform Index 2010

Covering priority dimensions relatedto the Regional Framework for Investment:

1. Investment Policy and Promotion

2. Human Capital Development

3. Trade Policy and Facilitation

4. Access to Finance

5. Regulatory Reform and Parliamentary Processes

6. Tax Policy Analysis

7. Infrastructure for Investment

8. SME Policy

- New areas -

Innovation Policy

...

Development of IP Laws

IRI assessment methodology – tripartite structure

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Private Sector Independent experts

Government self-assessment

Which indicators should be retained, modified or removed?

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Investment Policy and Promotion

FDI Policy

• National Treatment• Admittance of

personnel• Transfers • FDI incentives • Performance

requirements• Land ownership • Titling, cadastre and

restitution• Intellectual Property

Rights• Expropriation • International

Investment Agreements

• International Arbitration

Investment Promotion and Facilitation

• Strategy• Institutional Support• Monitoring and

Evaluation • FDI-SME linkages• One stop shop • Client Relationship

Management • Policy Advocacy • Aftercare services

Transparency

• Publication avenues and tools

• Prior notification and stakeholder consultations

• Procedural transparency

Privatisation and PPPs

• Privatisation strategy

• Privatisation consultations

• Restrictions on foreign investor participation in privatisation

• PPP units • PPP legislation • PPP consultations • PPP cost benefit

analysis • PPP monitoring

Example: Results of Investment Policy and Promotion assessment in IRI 2010

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1 2 3 4 5 6 7 8 9 100

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2

3

4

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Investment Policy and Promotion FDI policy Promotion and Facilitation Transparency Privatisation and PPP Policy

Scor

e

Example: Results of Investment Policy and Promotion assessment in IRI 2010

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1 2 3 4 5 6 7 8 9 100

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2

3

4

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Investment Policy and Promotion FDI policy Promotion and Facilitation Transparency Privatisation and PPP Policy

Scor

e

Main points for improvement• Land title registration and cadastre is slow• FDI Incentives on sub-national level need more clarity• One-stop shop for investors (IPAs to approve permits)• Legal frameworks for PPPs to be developed• Need to improve IP rights enforcement

New Innovation Policy Dimension

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Innovation Policy

Linkages between industry and academia




technology base


Illustrative


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Innovation Policy





technology base


Quantitative indicators •GDP per capita growth• Labour productivity• Investment in fixed and intangible assets as a share of GDP• New-to-market product innovators• Patents and trademarks per capita• Service-related trademarks• Firms with national/international collaboration on innovation• Scientific articles and co-authorship

Qualitative indicators• WEF Innovation ranking• Global Innovation Index ranking

Illustrative


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Innovation Policy





technology base


Quantitative indicators •Business enterprise expenditure on R&D•Expenditure on innovation, by firm size•Employer enterprise birth rate and death rate in the manufacturing and services sector

•Venture capital investment•Patenting activity of firms •Direct and indirect government funding of business R&D and tax incentives for R&D

•Firms receiving public support for innovation, by size•Firms' turnover from product innovation, by type• ICT investment by asset•Increase in the probability to innovate linked to ICT use

Qualitative indicators• Policies on R&D incentives• Quality of business support services• Policy support to clusters and networks• Evaluation of events (information and brokerage, matchmaking, competitions)

• Technology watch service• Peer review processes• Regional investment promotion

Illustrative


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Innovation Policy





technology base


Quantitative indicators

•Government budget appropriations or outlays for R&D,

•by selected socio-economic objectives•by national sector of performance•Higher education expenditure on R&D•Basic research performed in the public sector•E-government readiness index•Share of sub-national government in public investment

• Amount of regional funding for R&D

Qualitative indicators•Regional centres of excellence•Support for project proposals and matchmaking for FP7 and other international grants

•Peer review of evaluation and advancement systems

Illustrative


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Innovation Policy





technology base


Qualitative indicators

• Science-industry mobility programmes

•Innovation vouchers•Matching grants for SME and academia co-operation

•Triple Helix co-operation•Regional network of technology transfer offices, incubators, science parks

•Regional competence technology centres

•Regional web portal for industry-academia matchmaking and co-operation

Illustrative


• Amount of incentives and subsidies available for science-industry co-operation

• Number of participating companies and research institutes participating in co-operations

• Patents filed by public research organisations

• Regional average of PCT patents with co-inventor(s) by location

• International technology flows (royalties and licence fees)


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Innovation Policy





technology base



•Reading, mathematics and science proficiency at age 15

•Transition from upper secondary education to graduation at the university level

•Science and engineering graduates at the doctoral level

•Unemployment rate of university graduates•Supply of and demand for highly skilled employees

•Percentage of the population 18 to 64 years old who received any type of training in starting a business, during or after school

•Firms engaged in innovation-related training activities by size

•Total amount of grants for co-operation with diaspora

Qualitative indicators•Recognition of diplomas•Work permit policy for knowledge workers•Regional research fellowships•Student exchange programmes•Regional student competitions

Illustrative


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Innovation Policy





technology base


Qualitative indicators•Regional policy co-ordination•Peer review of governance in the science and technology system

Illustrative

Examples of qualitative indicators

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Level 1 Level 2 Level 3 Level 4 Level 5R&D incentives R&D incentives are

applied in an ad hoc and discriminatory manner. The goals of the incentives, as well as the criteria and procedures for obtaining them are not publicly disclosed.

Criteria and procedures for obtaining R&D incentives are publicly available, but still applied on a discriminatory manner. Incentives have not undergone a cost-benefit analysis and do not contain sunset clauses.

Level 2 and R&D incentives applied on a non-discriminatory manner. Incentives have not undergone a cost-benefit analysis and do not contain sunset clauses.

Level 3 plus R&D incentives have undergone a cost-benefit analysis, but do not contain sunset clauses.

Level 4 and contain sunset clauses.

Industry-science mobility

No framework to support mobility of researchers from science to industry

Framework being developed

Framework is limited to only a few programmes in a few universities

Framework expanded to all programmes and all universities

Level 4 plus science to industry mobility actively encouraged and supported with public funds

Innovation strategy Does not exist. Is being developed jointly by ministries responsible for economy and science and education .

Innovation strategy includes input from business and research community

Strategy contains specific time-bound measures and monitoring mechanism

Innovation Strategy has portion of national budget allocated to it .

Illustrative

Documents

SEE 2020 Smart growth workshop