1. Grant agreement no.: 2012-2948/001-001 This project has been funded with support from the European Commission. This communication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein. Elaboration of Key Economic Strategies and Economic Sectors Editors: Simona Rataj, Mojca Osojnik, Mateja Melink, Samo Pavlin Authors: Nevena Rakovska, Gipson Varghese, Renata Verger, Juan de Lucio, Miecyslzav Bak, Mojca Osojnik, Simona Rataj, Mateja Melink, Samo Pavlin

2. 2 Table of Contents EXECUTIVE SUMMARY.................................................................................................................. 3 1 INTRODUCTION..................................................................................................................... 5 2 NATIONAL ECONOMIC STRATEGIES AND ECONOMIC STRATEGIES ON THE LEVEL OF THE EUROPEAN UNION ....................................................................................................................... 7 2.1 EUROPEAN LEGAL AND STRATEGIC FRAMEWORK................................................................................ 7 2.2 OVERVIEW OF NATIONAL STRETEGIES............................................................................................ 12 2.2.1 Bulgaria.......................................................................................................................... 12 2.2.2 Hungary ......................................................................................................................... 13 2.2.3 Poland............................................................................................................................ 14 2.2.4 Slovenia ......................................................................................................................... 14 2.2.5 Spain.............................................................................................................................. 15 2.2.6 General observations .................................................................................................... 17 2.3 SECTOR ELABORATION BY COUNTRIES ........................................................................................... 18 2.3.1 Bulgaria.......................................................................................................................... 18 2.3.2 Hungary ......................................................................................................................... 21 2.3.3 Poland............................................................................................................................ 23 2.3.4 Slovenia ......................................................................................................................... 27 2.3.5 Spain.............................................................................................................................. 29 3 OVERVIEW OF BEST PRACTICES AND PROJECT REPORTS ON UNIVERSITY-BUSINESS COOPERATION (INCLUDING HRM STRATEGIES OF HIGHER EDUCATION INSTITUTIONS AND EMPLOYERS ORGANISATIONS)................................................................................................... 32 3.1 OVERVIEW OF OBSERVED EU REPORTS, BEST PRACTICES, HRM STRATEGIES OF INTERNATIONAL COMPANIES AND UNIVERSITIES ................................................................................................................ 32 3.1.1 EU Projects and Reports................................................................................................ 32 3.1.2 HRM Strategies of the Universities ............................................................................... 37 3.1.3 HRM Strategies of Employers Organisations................................................................ 39 3.2 OVERVIEW OF OBSERVED NATIONAL REPORTS, BEST PRACTICES, HRM STRATEGIES OF NATIONAL COMPANIES AND UNIVERSITIES IN FIVE EU COUNTRIES ................................................................................ 41 3.2.1 Bulgaria.......................................................................................................................... 41 3.2.2 Hungary ......................................................................................................................... 44 3.2.3 Poland............................................................................................................................ 47 3.2.4 Slovenia ......................................................................................................................... 55 3.2.5 Spain.............................................................................................................................. 59 3.3 SUMMARIES ON UNIVERSITY-BUSINESS COOPERATION BEST PRACTICES (CONCLUSION) ........................ 62 4 LIST OF SOURCES................................................................................................................. 64 APPENDIX: LIST OF KEY ENTERPRISE DATABASES......................................................................... 70

3. 3 Executive summary Latest strategies and agendas focusing on the future development of European and national economies are also giving priority of linking education and labour market. All participating EMCOSU countries (Bulgaria, Hungary, Poland, Slovenia, Spain) have adopted or are in the process of adopting relevant national strategies that include the premises of university-business cooperation and are also coherent with the European Union Strategies. However, the implementation phase of university-business cooperation is still only partial in Spain, Poland and Slovenia what results in the lack of an efficient system of university-business cooperation. This document also identifies national economic sectors with the greatest developmental potential where also the university-business cooperation should get focused on in the next years. The most important sectors by countries are the following: Bulgaria information and communication technologies, energy, agriculture, tourism and heritage; Hungary medical and health sciences, information and communication technologies, economics, legal sciences; Poland - information and communication technologies, pharmacy, energy, transport and storage; Slovenia - information and communication technologies, life sciences (including biotechnology, medicine, pharmacy, food processing), advanced materials and nanotechnology, electrical and electronics industry; Spain automotive industry, renewable energy, technology sector, consulting services. Considering the identification of these sectors one can say that on the general level the most important sectors which also have the biggest developmental potential are information and communication technologies, agriculture and food industry, logistics and transport, electrical energy and electrical industry (including renewable energy), and technology (including biotechnology, new materials, medicine and pharmacy). The document provides a review of a good number of modes and best practices of university- business cooperation that already exist in the strategies of some universities and private sector organisations. The most common system approaches are career centres of universities, internship programmes, joint curriculum development, development of quality standards of practical placement in enterprises, entrepreneurial courses in the university study programmes, collaborative research, support to start-up enterprises, knowledge and project consortia; alumni centres and job fairs. There are also some particularities; e.i. study visits of education policy specialists and decision-makers (EU level) and Graduate career tracking service of universities (Hungary). These modes of cooperation show concrete and often quick results; a fact well accepted by enterprises. Nevertheless, the need for implementation other measures (like curriculum

4. 4 development, entrepreneurial courses, appropriate HE and RTD policy and its implementation) are condicio sine qua non. This report on Elaboration of Key Economic Strategies and Economic Sectors in EMCOSU countries and on the EU level provides a basis for further project work that will focus on the modes of cooperation with universities from the perspectives of employers organisations with an emphasis to the most important economic sectors identified in this report.

5. 5 1 Introduction Over the last decade those concerned with European policy on education and employment have increasingly sought evidence of how levels of educational attainment characterise individuals' performances in the labour market. As stated in the latest Agenda on Modernisation of Europes Higher education (HE) Systems (EC 2011b), enhancing the short- and long-term employability potential of young people has become one of the central developmental priorities in the European Higher Education Area. Current major national and international mechanisms providing indicators to contribute to this aim are closely related to international mobility, cooperation among higher education institutions and among universities and enterprises. Some previous projects show various factors affecting the graduates career success. Some of them fall within the direct jurisdiction of higher education institutions, while others go beyond HE institutional borders. The identified factors are: social background, economic circumstances, acquiring relevant work experience outside higher education, the recognition and certification of such experience, the promotion of entrepreneurial skills and cooperation and dialogue between employers and universities (HEGESCO project; TUNING project). The HEGESCO project (HEGESCO project) reveals that enterprises have very little knowledge of what to expect from graduates, on the other hand, higher education institutions have a similar low level of knowledge of employers needs. This problem is particularly relevant for the private sector which often has pretty blurred links with higher education institutions. Hence, cooperation between the world of work and higher education has from a policy perspective in any study field never been second to other HE developments (system societal role, mobility, curricular and governance reforms) but a strong reference element. The present EMCOSU project focuses on the university-business collaboration in five European countries, Bulgaria, Hungary, Poland, Slovenia and Spain and on EU level in general. However, it goes beyond surveying and identifying professional competencies and measurements of the misalignment between formal qualifications, acquired knowledge and employers requirements (known as the skill mismatching problem). The project applies earlier research findings, linked to issues of enhancing graduates employability, and also identifies new good practices of university-business collaboration (UBC), showing great results in managing the potential and talent of existing and future employees. The project EMCOSU addresses three general questions: a) Which are the most relevant modes of cooperation between universities and enterprises and why?; b) What are current characteristics of cooperation modes and their future developmental needs?; and; c) Which are key developmental drivers and motives on cooperation on the side of universities and enterprises?

6. 6 In this context the first phase of the project focused on the elaboration of national economic strategies of the countries involved in the project and economic strategies on EU level. What is more, project partners also tried to identify which sectors and jobs within the selected countries and EU hold the greatest potential in the future to absorb higher education graduates. The methodology for preparing national and EU report included mainly a review and analysis of key European and national strategic plans. The project partners from chambers of commerce and industry were able to provide a rich material on this as they have a deep insight into future European and national strategies and priorities. This report is thus based on the national and EU reports provided by project partners. The second chapter follows introduction and includes a review of identified EU and national economic strategies. Deriving from this project partners also identified and described national economic sectors with the greatest potential. The third chapter describes identified best practices regarding university-business cooperation including human resource management strategies of companies, higher education institutions and projects enhancing university- business cooperation. Best practices described in this report will be regarded as a point of reference for the activities in the next work packages, especially for the development of new guidelines and approaches for improving traditional modes of cooperation between employers HE institutions.

7. 7 2 National economic strategies and economic strategies on the level of the European Union The report on EU level is a product of a study on economic strategies and sector elaboration of the European Union. The EU report follows premises of the EC document Europe 2020 An European strategy for smart, sustainable and inclusive growth; it also includes the review and analysis of other key EU and national documents. The reports for five referenced countries (Bulgaria, Hungary, Poland, Slovenia and Spain) are prepared in a similar way on the national level by emphasizing the most important and recent national documents on the economic strategies that were available to the project consortium. 2.1 European legal and strategic framework Europe 2020 - European strategy for smart, sustainable and inclusive growth1 (EC 2011a) is the key strategic document, observed in this project. It represents the basis for EU and national policy strategies to overcome the crisis faced by the European Economy. Understanding the advantages and disadvantages of the European economy and society, this policy paper encourages member countries to move forward, considering the following a common vision for smart, sustainable and inclusive growth. Focusing on first goal (smart growth), emphasis is given to strengthening knowledge and innovation, which are drivers of economic and social growth. This requires improving the quality of education, strengthening research performance, promoting innovation and knowledge transfer (pp.9). Innovation is channelled through new ways of cooperation between research and development agencies and private sectors. With regard to sustainable growth strategy, it is important to build up a resource efficient, sustainable and competitive economy, while ensuring the development of new process and technologies, including green technologies, more use of ICT and reinforcing competitive business, especially in manufacturing. This vision encourages new ways of doing things, more importantly in the area of education and training. It invites policy makers to design news way and modes of cooperation. The EU strategic document makes it clear that a cohesive or inclusive society can be promoted by empowering people through high levels of employment, investing in skills, modernising 1 Source: European Commision. 2011a. Europe 2020 - European strategy for smart, sustainable and inclusive growth.

8. 8 labour market, training and establishing social protection system. Moreover, employment and skills are the most focused facts in all policy formulations. In the EMCOSU project there have been four flagship initiatives of Europe 2020 Strategy document identified as relevant for the projects key questions. Despite the content of the initiatives is more general and refers to a broad area of employment and education issues all four document show a tendency towards a closer cooperation between higher education institutions and the businesses. An Agenda for New Skills and Jobs: A European Contribution towards Full Employment2 (EC 2010a) proposes that better cooperation between the labour market and education and training would provide the right mix of skills and would avoid the under-utilisation of peoples talents and potentials. However, the tendency for cooperation should not come only from the higher education but also from the labour market or as the initiative proposes: Employers should be encouraged to co- invest and participate in the activities of education and training institutions, particularly in higher education and vocational education and training; these partnerships can develop and update skills profiles, multidisciplinary curricula and qualifications, and facilitate the provision of work-based learning, from apprenticeships to industrial PhDs (EC 2010a). Supporting Growth and Jobs An Agenda for the Modernisation of Europes Higher Education Systems3 (EC 2011b), another flagship initiative based on Europe 2020 strategy, emphasises the need to reform several key areas of higher education from which one of them is directly linked to EMCOSU key questions strengthening the knowledge triangle between education, research and business. The Agenda (EC 2011b) proposes key policy issues for member states and higher education institutions regarding collaboration between higher education and enterprises: Stimulate the development of entrepreneurial, creative and innovation skills in all disciplines and in all three cycles, and promote innovation in higher education through more interactive learning environments and strengthened knowledge-transfer infrastructure. Strengthen the knowledge-transfer infrastructure of higher education institutions and enhance their capacity to engage in start-ups and spin-offs. Encourage partnership and cooperation with business as a core activity of higher education institutions, through reward structures, incentives for multidisciplinary and cross-organisational cooperation, and the reduction of regulatory and administrative barriers to partnerships between institutions and other public and private actors. 2 Source: European Commision. 2010a. An Agenda for New Skills and Jobs: A European Contribution towards Full Employment. 3 Source: European Commision. 2010a. An Agenda for New Skills and Jobs: A European Contribution towards Full Employment.

9. 9 Promote the systematic involvement of higher education institutions in the development of integrated local and regional development plans, and target regional support towards higher education-business cooperation particularly for the creation of regional hubs of excellence and specialisation. The other two flagship initiatives, Youth on the Move An Initiative to Unleash the Potential of Young People to Achieve Smart, Sustainable and Inclusive Growth in the EU4 (EC 2010c) and Innovation Union5 (EC 2010b) go in the same direction of the need to closer cooperation between higher education and the labour market. The Youth on the Move (EC 2010c) proposes that the quality career guidance services and vocational orientation need to be further developed, with strong involvement of labour market institutions, supported by actions to improve the image of sectors and professions with employment potential. And what is more, the initiative supports the reform and modernisation of higher education which will focus on strengthening the employability of graduates, encouraging mobility that includes also mobility between academia and industry. Innovation union initiative (EC 2010b) focuses mostly on innovation and research where one of the aims of this agenda also proposes there should be more innovation made out of research where also cooperation between the worlds of science and the world of business must be enhanced. Regarding the agenda, businesses should also be more involved in curricula development and doctoral training so that skills better match industry needs. Another strategy, observed in the EMCOSU project, is New Skills and New jobs in Europe: Pathways towards full employment6 (EC 2012), prepared by Directorate General for Research and Innovation. It is based on an extensive review of 17 projects financed by the EC, focusing on the importance of evolution of new skills, since old and new jobs will not be sustainable in the near future. According to this strategy, improving peoples skills and better utilisation of their skill potentials is a real win, win for all; for the economy, society, employers and for individuals. Policies to promote employment and skills are important matters of priority because a skilled workforce is an essential asset to develop a competitive, sustainable and innovative economy in line with Europe 2020 goals. 4 Source: European Commision. 2010c. Youth on the Move An Initiative to Unleash the Potential of Young People to Achieve Smart, Sustainable and Inclusive Growth in the EU. 5 Source: European Commision. 2010b. Innovation union. 6 Source: European Commision. 2012. New Skills and New jobs in Europe: Pathways towards full employment.

10. 10 Also Empowering the young of Europe to meet labour market challenges7 (European Centre for the Development of Vocational Training 2011) documents are related to the EMCOSU key questions. The two documents are dealing with study visits that professionals have carried out all over Europe. The first programme has proved effective in promoting discussion, reflection, exchange of experience and mutual learning among education policy specialists and decision- makers responsible for developing and implementing education and training across Europe. The second document (Empowering the young of Europe to meet labour market challenges) summarises the results of about 230 study visits hosted in 30 countries by education specialists. The report shows different policy recommendations, based on supporting young people and developing young peoples entrepreneurial skills and competences: through flexible learning modes and pathways; through guidance and validation of knowledge, skills and competences required; by offering easy access to education and training; by offering tailored education to needs of and abilities of individual students; by offering easy transition of young people from education and training to the labour market; by offering workplace learning and apprenticeship, which are considered as successful; by enabling partnership between relevant stakeholders the social partners, companies, public and private organisations; all promoting new learning initiatives and improving the transfer and use of new and existing knowledge on future skills needs between stakeholders. Last observed document, Employers Perception of Graduate Employability8 (Eurobarometer 2010), provides insights into the needs and perceptions of graduate recruiters by monitoring the opinions of staff in companies throughout Europe with at least 50 employees across a range of business sectors. The survey covered research questions relevant for EMCOSU project: the amount and type of cooperation between companies and educational institutions, the major challenges that companies face in hiring graduates, the importance of various skills and abilities required by graduates and the levels of satisfaction as to whether or not graduates have these skills etc. The results show less than 25% of respondents frequently cooperate with HEIs in order to discuss curriculum design and study programmes. Graduate employers in the industry sector, in public sector and in sector of non-public services were more likely to have cooperated with HEIs. Cooperation in the recruitment of graduates appeared to happen more frequently. Around half of the respondents said the cooperation with HEIs is important for their company and around half said the opposite. The results also show that 52% graduate employers are convinced 7 Source: European Centre for the Development of Vocational Training. 2011. Empowering the young of Europe to meet labour market challenges. 8 Source: Eurobarometer. 2010. Employers Perception of Graduate Employability.

11. 11 the best ways of cooperating with HEIs on recruitment was their participation in internship programmes and about a third selected direct recruitment from schools.

12. 12 2.2 Overview of National Stretegies In this section there were identified at least 4-5 national strategic documents per country, tackling with university-business cooperation (education system in line with the needs of the industry; identified future emerging and key enabling technologies) on national level, which represent the basis for the university-business cooperation. The countries involved are the following: Bulgaria, Hungary, Poland, Slovenia and Spain. 2.2.1 Bulgaria The strategies explore the main factors of determining growth and competitiveness of Bulgaria: education, innovation, RTD-companies collaboration (technology & knowledge transfer), smart specialization. Key strategic documents in Bulgaria are the following: National Regional Development Strategy9 of the Republic of Bulgaria for The Period 2005-2015, prepared by the Council of Ministers of the Republic of Bulgaria (2005). (draft) National Program for Development Bulgaria 202010, prepared by the President of Republic of Bulgaria (2012). Sector Strategy for Attracting Investments in Bulgaria11, prepared by A.T. Kearney (2011) for the Ministry of Economy, Energy and Tourism. National strategy of scientific research to 202012, prepared by Ministry of Education, Youth and Science (2012a). Areas with stronger presence of foreign direct investment13, prepared by Ministry of Economy, Energy and Tourism (2012). (draft) Innovation Strategy of Republic of Bulgaria14, prepared by Ministry of Economy, Energy and Tourism (2012b). The future emerging and key enabling technologies selected in the above mentioned documents are: ICT Transport and infrastructure 9 Source: Council of Ministers of the Republic of Bulgaria. 2005. National Regional Development Strategy of the Republic of Bulgaria for The Period 2005-2015. 10 Source: President of Republic of Bulgaria. 2012. National Program for Development Bulgaria 2020 (draft). 11 Source: Kearney, A. T. 2011. Sector Strategy for Attracting Investments in Bulgaria. 12 Source: Ministry of Economy, Energy and Tourism. 2012. Areas with stronger presence of foreign direct investment. 13 Source: Ministry of Economy, Energy and Tourism. 2012a. Areas with stronger presence of foreign direct investment. 14 Source: Ministry of Economy, Energy and Tourism. 2012b. Innovation Strategy of Republic of Bulgaria (draft).

13. 13 Tourism and cultural heritage (incl. Healthcare and Medical Tourism) Agriculture and food production Environmental protection Renewable energy sources Machine building Chemistry Biotechnology (inc. pharmaceuticals) New materials Automotives and Mechatronics Electrical Engineering and Electronics 2.2.2 Hungary The strategies explore the concept, view, value; as well as the principles and objectives of sustainable development, dealing with the departmental, developmental and other horizontal questions (international cooperation, strengthening the competitiveness). Key strategic documents in Hungary are the following: National Sustainable Development Strategy15, prepared by the National Development Agency (2007). Higher Education Strategy methodological guide16, prepared by Educational Research and Development Institute (Csti et al 2011). The Hungarian labour market 201217, prepared by Hungarian Academy of Sciences and Institute of Economics (Kroly 2012). Hungary National Reform Programmes, based on the Szell Kalman Plan18, prepared by the Government of the Republic of Hungary (2011). Hungary New Development Plan - National Strategic Reference Framework of Hungary (2007-2013)19, prepared by the Government of the Republic of Hungary (2007). The future emerging and key enabling technologies selected in the above mentioned documents are: Medical and Health Sciences Information and Communication Technologies 15 Source: National Development Agency. 2007. National Sustainable Development Strategy. 16 Source: Csti, Dniel, Dr. Gyrgy Drtos, Rka Kal, Pter Kdr-Csoboth, Gergely Kovts, Katalin Porubcsnszki, Anita Tarcsai. 2011. Higher Education Strategy methodological guide. 17 Source: Kroly, Fazekas. 2012. The Hungarian labour market 2012. Hungarian Academy of Sciences and Institute of Economics. 18 Source: Government of the Republic of Hungary. 2011. Hungary National Reform Programmes, based on the Szell Kalman Plan. 19 Source: Government of the Republic of Hungary. 2007. Hungary New Development Plan - National Strategic Reference Framework of Hungary (2007-2013).

14. 14 Economics Legal Sciences 2.2.3 Poland Key strategic documents in Poland explore the main factors of determining growth and competitiveness of Poland: education, innovation, RTD-companies collaboration (technology & knowledge transfer), solving societal challenges. National Development Strategy 2007-201520 of the Republic of Poland, prepared by the Ministry of Regional Development (2006) and adopted by the Council of Ministers. National Development Strategy 202021, prepared by the Ministry of Regional Development (2012) and adopted by the Council of Ministers. The National Reform Programme22, prepared by Ministry of Economy of the Republic of Poland (2011). Poland 2030. Development Challenges23, prepared by the Board of Strategic Advisors to the Prime Minister of Poland (2009). The future emerging and key enabling technologies identified in the above mentioned documents are: Electricity, gas, steam and air conditioning supply ICT Transportation and storage Agriculture, forestry and fishing Professional, scientific and technical activities Education 2.2.4 Slovenia The strategies explore the main factors of determining growth and competitiveness of Slovenia: developing an effective RTD and innovation support system; improving collaboration among RTD, HE and enterprises, smart specialization. Key strategic documents in Slovenia are the following: Resolution on national programme for higher education 2011-202024, prepared by the Ministry of Higher Education, Science and Technology (2011a). 20Source: Ministry of Regional Development. 2006. National Development Strategy 2007-2015. 21 Source: Ministry of Regional Development. 2012. National Development Strategy 2020. 22 Source: Ministry of Economy of the Republic of Poland. 2011. The National Reform Programme. 23 Source: Board of Strategic Advisors to the Prime Minister of Poland. 2009. Poland 2030. Development Challenges. 24 Source: Ministry of Higher Education, Science and Technology. 2011a. Resolution on national programme for higher education 2011-2020.

15. 15 Resolution on research and innovation strategy of Slovenia 2011-202025, prepared by the Ministry of Higher Education, Science and Technology (2011b). Slovene industrial policy26, prepared by Ministry of economic development and technology (2012). The strategy is finalized, but not jet confirmed by the Government of the RS. Development Strategy of Slovenia27; in the process of preparation by the Government office for development and European affairs (2013). The future emerging and key enabling technologies identified in the above mentioned documents are: ICT New, advanced materials & Nanotechnology Electronics Energy Processing technologies, Low carbon technologies Wood processing Automotive industry Sustainable construction Health & Pharmacy & Biotechnology, Biomedicine Space Logistics 2.2.5 Spain The strategies explore the main factors of determining growth and competitiveness of Spain: graduate employability, excellent science and technology development, effective RTD and innovation support (national and EU) system - improving collaboration among RTD, HE and enterprises. Key strategic documents in Spain are the following: National Plan for Research, Development and Innovation28, prepared by the Ministry of Economy and Competitiveness (2008). Spanish Strategy for Science, Technology and Innovation 2013-2020: National Plan for Scientific and Technological Research and Innovation 2013-201629, prepared by the Ministry of Economy and Competitiveness and Spanish Government (2013). 25 Source: Ministry of Higher Education, Science and Technology. 2011b. Resolution on research and innovation strategy of Slovenia 2011-2020. 26 Source: Ministry of economic development and technology. 2012. Slovene industrial policy. 27 Source: Government office for development and European affairs. 2013. Development Strategy of Slovenia. 28 Source: Ministry of Economy and Competitiveness. 2008. National Plan for Research, Development and Innovation.

16. 16 Spanish Employment Strategy30, prepared by Ministry of Work and Immigration and Spanish Government (2012). Spanish Strategy for Economic Policy31, prepared by the Spanish Government (2012). University Plan 2011-201432, prepared by the Basque Government (2012). The future emerging and key enabling technologies identified in the above mentioned documents are: Automotive industry Renewable energy Technology Consulting services 29 Source: Ministry of Economy and Competitiveness. 2013. Spanish Strategy for Science, Technology and Innovation 2013-2020: National Plan for Scientific and Technological Research and Innovation 2013-2016. 30 Source: Ministry of Work and Immigration and Spanish Government. 2012. Spanish Employment Strategy. 31 Source: Spanish Government. 2012. Spanish Strategy for Economic Policy. 32 Source: Basque Government. 2012. University Plan 2011-2014.

17. 17 2.2.6 General observations As expected, all the participating countries have adopted or are in the process of adopting relevant national strategies, which are also coherent with the EU strategies. Nevertheless, there is a difference between adopting the strategy and implementing it. The implementation phase is a step further and seems successful in Spain, Poland, in Slovenia only partially. The result of this fact is the lack of an efficient system approach to the UBC support. Table 1: An overview of future emerging and key enabling sectors Countries/NACE classification Bulgaria Hungary Poland Slovenia Spain A Agriculture, forestry and fishing Agriculture and food production Agriculture, forestry and fishing Wood processing C- Manufacturing Machine building D - Electricity, gas, steam and air conditioning supply Renewable energy sources; Electrical engineering and electronics Electricity, gas, steam and air conditioning supply Electronics; Energy Renewable energy F Construction Sustainable construction H - Transporting and storage Transport and infrastructure Transporting and storage Logistics J - Information and communication Information and communication Information and communication Information and communication Information and communication M - Professional, scientific and technical activities Chemistry Biotechnology Professional, scientific and technical activities New, advanced materials and nanotechnology; Processing technologies, low carbon techonologies; Biotechnology; Bionedicine P - Education Education Q - Human health and social work activities Medical and Health sciences Health; Pharmacy R - Arts, entertainment and recreation Tourism and cultural heritage Most of the observed national strategies include identified future emerging and key enabling technologies. Still, the most important sectors among the participating partner countries (taking into account the frequency of occurrences in national strategies) are (1) ICT, (2) Agriculture and

18. 18 Food industry, (3) Logistics & Transport, (4) Electrical Engineering and Electronics Industry, (5) Technology. On Horizontal level, RTD is of key importance both on national and EU level. 2.3 Sector Elaboration by Countries Project partners identified and described economic sectors, which have the greatest potential from the perspective of cooperation between universities and enterprises on a national level. 2.3.1 Bulgaria33 In Bulgaria, the most perspective sectors are information and communication technologies, energy, agriculture and tourism and cultural heritage. Growing ICT and energy sectors are especially export-oriented and offer good employment possibilities, while the sector of agriculture is traditional and the only one to register growth in each quarter of 2010. Tourism sector however is still not sufficiently developed and offers many possibilities. Information and Communication Technologies The Annual Broadband Study by Cisco (2010) ranked Bulgaria 5th in the world and 3rd in Europe in terms of internet speed. It also placed the country 3rd in Europe and 10th worldwide regarding the absolute number of certified ICT professionals. Bulgaria offers qualified human resources working on world-level projects and at competitive salaries. Currently between 50 000 and 60 000 people are employed in the sector. ICT is traditionally an export-oriented sector. The country has strong NGOs in the sector. Bulgaria is well prepared for becoming a regional hub because it hosts a number of world and local IT leaders, like SAP, VMware, Johnson Controls, CISCO, HP, Telerik, Musala Soft, Melon Inc. etc. Unlike most of the sectors of the Bulgarian economy, the IT industry showed a stable performance in 2010 and 2011. However, it was not demand on the local market that supported the IT sector. The IT companies, especially the software developers, counted on foreign clients to keep revenues intact. The trend is expected to continue in 2012 with growing need for highly- qualified IT professionals. The main problem facing the software industry is the shortage of highly qualified professionals on the local market. If the problem persists, the local IT industry could miss the chance of achieving the expected tenfold growth in the next decade, according to market experts. The lack of well-trained specialists forces domestic IT companies to outsource part of their activities to firms in Macedonia and Serbia or to hire foreigners. Estimations about the future development are the following: 33 Source: Invest Bulgaria Agency.

19. 19 The software segment will continue to enjoy an increase in exports and outsourcing contracts with foreign companies; The local market will remain stagnant for computer hardware distributors and software developers; The computer and electronics products manufacturers will rely on foreign markets to counterbalance shrinking demand on the local market; The number of large clients of cloud computing services will be increasing; IT spending in the public sector will remain erratic and will depend mostly on the availability of EU funding; Demand for software and hardware developers as well as web designers will grow. Among the fastest growing sectors is the development of applications for mobile phones and tablets iOS, Android, Windows, so developers of phone and online applications wil be on demand. A big growth is seen in the number of employed in contact and call centers. The total number of employed in call centers for ICT services in Bulgaria in 2005 was 0,2 % of all employed in ICT sector. In 2011 it has reached 14,3 % and is now among the top 3 IT sectors according to number of employed. The data are provided by CBN Pannoff, Stoytcheff & Co., specialised in research and analysis of the ICT sector in Bulgaria since 2001.s HR expert Angel Madjarov from the Talent Hunter company, experienced in Recruitment and selection of IT & Telecom professionals, prognoses that the in the coming years the sector will suffer lack of human resources, due to the limited practical skills of the ICT graduates and the fast development of the sector. Energy Energy is one of the most important sectors in the Bulgarian economy, it accounts for 18,2% of total industrial production and employs 10.9% of the workforce in the secondary sector. Although Bulgaria is not very rich in natural fuels such as coal, oil and gas, it has very well developed energy sector which is of crucial importance for the Balkans and the whole South Eastern Europe. Bulgaria is a major producer and exporter of electricity in the region and plays an important role for the energy balance in the Balkans. The country's strategic geographical location makes it a major hub for transit and distribution of oil and gas from Russia to Western Europe and other Balkan states. Bulgaria is the primary exporter of electricity in South-eastern Europe as well as a major transit country for Russian oil and gas. Bulgaria's role in the transit of fuels is going to increase after the construction of several pipelines currently in the planning stage. Thermal power plants are also of high importance with most of the capacity concentrated in the Maritsa Iztok Complex. Due to the limited hydro-potential of the country (excluding the Danube), the importance of hydro power is not so big. There are currently 87 hydro power

20. 20 plants with a combined capacity of 1,980 MW, most of them being located in the southern and south-western mountainous parts of Bulgaria. Three major Hydroelectric power plants are under construction. Large-scale prospects for wind energy development[4] have spurred the construction of numerous wind farms, making Bulgaria one of the fastest-growing wind energy producers in the world. Agriculture In 2010, the Agriculture sector was the only one to register growth in each quarter. In 2010, Bulgarias agricultural trade balance was positive: $ 994 million, compared with $ 385 million in 2009. The sector accounted for 17% of Bulgarias total exports and 10% of the countrys total imports. The export of Bulgarian agricultural produce reached $ 3 468 billion, which, compared with the $ 2 795 billion for the preceding year, meant a 24% growth. About 72% of Bulgarian exports of agricultural produce went to the EU, while Russia, Ukraine, Turkey, and the Arab countries recovered their former position as major export markets. Bulgaria is among the first eight EU Member States in terms of average growth of profitability in agriculture. In 2010, the average profitability from agriculture in Bulgaria increased by 23% compared to 12.3% for EU-27. The country provides sufficient workforce both for the agricultural sector and for the food and beverage industry. There are skilled engineers, technicians and biotechnologists at very acceptable levels of labour costs. The level of wages in the Agriculture sector is among the lowest in the country. The average monthly wage is estimated at about BGN 450. The level of wages in the Food & Beverage sector is close to the countrys average wage. The average monthly wages vary between 250 300 Euro. The level of wages not only in the industry but also the economy as a whole is among the most competitive in the EU. In the near future, wages are expected to remain low. In 2010, the share of agriculture was 5.2% of Bulgarian GDP. Over 80 000 people are employed in the sector in over 4 000 companies across the country. This sector is traditional. Tourism and cultural heritage Tourism in Bulgaria is a significant contributor to the country's economy. In 2008 Bulgaria was visited by 8.9 million tourists, as outlined by the World Tourism Organization. Tourists from three countries - Greece, Romania and Turkey - account for 40% of visitors. New types of tourism, including cultural, architectural and historic tours, eco-tourism, and adventure tours, are expanding the range of visitor experiences. The tourist industry, especially on the seaside, continues to suffer from construction works, poor handling of visitors, poor advertisement and low bed occupancy.

21. 21 2.3.2 Hungary Most interesting sectors in Hungary include medical and health sciences, which has a brain drain problem, information and communication technologies and economics sectors, where employment is increasing, and legal sciences sector, which offers good employment possibilities mostly because of its high social reputation. Medical and Health Sciences Since 1975, the Hungarian medical attendance is a civil right, and from 1996 every citizen is assured. In Hungary, the Ministry of Human Resources have control over the social and welfare systems. Regarding of the past decades unfavourable public health processes, the government emphasises the improving of the public health issues. The Hungarian citizens health condition is extremely bad compared to the international average, and it considerably falls behind what the economic and social levels of the country would permit.34 It is feared, that the doctors and the health workers in Hungary will emigrate in large quantities, which can cause the closure of hospitals and other public healthcare institutions and problems may arise in medical attendance too. More than a hundred Hungarian health employees have a contract abroad, and according to the Hungarian Medical Chamber more Hungarian health workers plan to work abroad in the future. Unfortunately, the Hungarian health workers salary is much lower than their colleagues in the Western Europe. The deficiency caused by the doctors emigration can cause shortage of labour in hospitals.35 Information and communication technologies The industry gives 15 percent of the Hungarian GDP and it gives work for more than one hundred thousand persons. In 2011, nearly 3 billion USD was spent on the IT sector in Hungary. In the past 2 years, the global economic transformation did not avoid the national IT sector, it is expected that the leading firms of the industry will be de-emphasised, and will have market loss; and smaller, specialized businesses will come into prominence.36 Contrary parliamentary decisions can contribute to the fact that the members of the profession, which fights with shortage of labour, will leave the country. The information technology sector can play a major role in the retaining of the professional labour. The lack of qualified and professional labour and the lack of the newly graduated youth cause bigger and bigger problems in Hungary and also in the ICT sector. Because of this, Hungary may lose serious projects.37 34 Sources: http://www.eski.hu/new3/adatok/zip_doc/eg-szoc-rendsz.pdf and National Development Agency. 2007. National Sustainable Development Strategy. 35 Source: http://medjob.hu/medjob_portal/kiemelt/orvosok-es-egeszsegugyi-dolgozok-kulfoldi- munkavallalasa/ 36 Source: http://www.hrportal.hu/hr/ismet-beindul-a-hazai-informatikai-szektor-20110503.html 37 Sources: http://www.sg.hu/cikkek/93689/rengeteg_szakember_hagyja_el_az_orszagot and

22. 22 In the IT sector, the number of the employees increases 1,9 percent yearly on the average, while in the economy sector the employment will probably decrease. Today, the IT sector has 116 thousand employees. On the IT market, nearly 300 new enterprises will start until the end of 2013, from which the majority will be small Hungarian businesses. The Hungarian business circle, that distributes and supplies Microsoft software, gives work to 20 thousand people. By the informatics-using companies, further 30 thousand IT worker deals with Microsoft software or product. 43 percent of IT workers are from these workers, and they make 48 percent of the Hungarian income that is IT related.38 Economics The following fields belong in this sector: economics, economy analysis, civil service, human resources, business administration, commerce and marketing, international management, finance and accounting, tourism and catering. The economist qualification is still looked for in the labour market, but the expectations from an economist have changed. These days, the technologic fields dominate the labour market, that is why the most successful economists are who have complex knowledge, e.g.: engineer-economist, information technologist-economist. The profession is defined by the economic situation of the country; by the number of incoming capital; by the enterprises; by the situation of the companies; and by the number of newly settled firms. The number of the people who work in the profession will increase by 3-4 % in the year 2015, currently nearly 160000 person works in the economic sphere. All age group can be found in the profession, but currently the proportion of young economic workers is high, nearly 40% is under 34.39 In the economic training, the Hungarian offer is very rich: the applicants can chose from 34 economic faculties. One of the most important expectations from carrier starters is experience. In this case, this is not only professional experience, although it is doubtless, that employers value it positively.40 Any work experience acquired during university years, means advantage. The most important thing is, that the applicant has an insight on work atmosphere, he/she has responsibility, knows what teamwork means. Today, foreign language knowledge at an advanced level and the knowledge of computer programs is a basic requirement. The employers lay more and more http://webcache.googleusercontent.com/search?q=cache:RuBNzNkiqgQJ:www.nfu.hu/download/699/i._ helyzetelemzes.pdf 38 Sources: http://index.hu/tech/uzlet/2009/10/06/valsagban_is_no_a_magyar_informatikai_piac/ and http://www.itbusiness.hu/rss_3/ITB_T_1008.html?portalstate=rss 39 Source: http://www.cons.hu/index.php?menu=cikk&id=390 40 Source: http://www.felvi.hu/pub_bin/dload/rangsor2006/64_89.pdf

23. 23 stress upon human characteristics too, good communication skills are capital; as well as smartness and practical approach considered important, too.41 Legal sciences In Hungary, the primary legal source is the constitution. In the Hungarian Republic, only those civil services have competence to establish rights that obtained authorization from the constitution. The jurisdiction in Hungary is wielded by the Curia; the Court of Appeal, the Court of Justice; the District Court; and the Administrative and Employment Tribunal. The protectorate is the defender of the public policy, so it contributes to the validation of the individual rights.42 The jurist degree chiefly makes possible to find a job on the traditional fields: judge, lawyer, prosecutor, and administration. Due to the high social reputation, it increases the chances of getting employed in other scope of activities.43 2.3.3 Poland The most perspective sectors in Poland are information and communication technologies, pharmacy, energy, transportation and storage. While the first two are already amongst the biggest markets in respective sectors in Europe, there is also a growing consumer demand in the developing sectors of energy and transportation and storage. Information and communication technologies Polish IT sector can be divided into three main segments, namely hardware, software and services. In 2009, its market share stood at 54%, 31% and 15%. Equipment segment has the most significant influence on the income of the branch about 54% of its value, services 31% and software 15%. In comparison to the structure of previous years the importance of the hardware segment is going lower (59% in 2008, 63% in 2007) other sectors are growing services (28% in 2008, 24% in 2007) and software (13% in 2008 and 2007). The direction of these changes is a sign of modernization of the sector. Poland is becoming more similar to developed European countries. According to the forecast for 2014 it is expected that we will observe further decline in the share of equipment to the other two segments. In the software and services segments the most important activity software consultancy. Important services are also the processing of data and hardware consulting. 41 Source: http://www.cons.hu/index.php?menu=cikk&id=390 42 Source: http://webcache.googleusercontent.com/search?q=cache:N2IAbwymFMoJ:www.jegyzetportal.hu/downl oad/allam_es_jogtortenet/jogrend.doc 43 Source: http://www.ajk.elte.hu/file/FelvTajek_Jogasz.pdf

24. 24 Data from Pierre Audoin Consultants shows that Poland in 2015 will be the second largest (4.1 billion euros) after Russia IT market in Central and Eastern Europe and in terms of average annual growth in 2011-2015 (7.2%) the fourth one. Poland is the best in absorbing the European funds to carry out projects connected to IT sector. Polish IT market has currently more than 8 500 companies and nearly 200 thousand jobs. The dominant segment is the hardware, which share in 2011 amounted to approximately 57%. Such global companies as Microsoft, HP, Google, and IBM invested and have their agencies in Poland. It should be underlined that information technology infrastructure sector in Poland is relatively modern and has been recently constantly developed, however there are also some low performance areas with poor coverage in terms of IT infrastructure (particularly in Eastern Poland). Moreover, the level of innovative solutions and applications utilised by particular entities is also unsatisfactorily low. Relatively weakest prospects draw against segments such as software, ERP and CRM, and training services segment of Green IT. They have the largest share opinions about the lack of dynamic growth over the next two years, in the case of the ERP software category, and Green IT is the lowest observed single-digit share of reviews for the sharp increase. This can be a side effect of a high penetration of solutions (ERP) among the companies actually need this class of systems, as well as changes in business approach to IT spending (less emphasis on the "green" side of the project). Pharmacy In 2009-2010, there was stagnation in the pharmaceutical market, now there is a slight growing trend. Companies evenly spaced across the country, larger centres in Warsaw and the southern and western voivodships. Companies both the Polish capital as well as held by the world's largest pharmaceutical companies. In Poland, the share of generics in the market in terms of value is the one of the highest levels in Europe and is approximately 65%, with 25% share of innovative medicines. Quantitatively, the share of generic drugs in the market is higher than 80%. These proportions will not change in the next few years.44 In 2012-2014 the generic market in Poland will grow at a faster pace than the market of innovative drugs, mainly because of the law changes in reimbursement rules and lists. 44 See more: Skonieczna, Agnieszka. 2012. Generic and innovative drugs market in Poland 2012 - Development forecasts for 2012-2014.

25. 25 Share of innovative medicines in the Polish pharmaceutical market is small, but in recent years we observed a growing number of innovative research projects, engage in both universities and pharmaceutical companies. Poland is listed as one of 17 emerging markets. According to statistics, Poland is one of the countries with the highest consumption of pharmaceuticals. In terms of value, we are the sixth largest pharmaceutical market in Europe. Polish companies lose the cost advantage that gives them the ability to effectively compete with Western rivals.45 In Polish market operates nearly 450 pharmaceutical companies, however the top 10 companies in the sector generates more than half of the trade. In the top ten is eight innovative companies. Energy46 Until 1990, the Polish power industry was a state-owned monopoly, which consisted of fully- integrated state-owned companies. The Energy Law of 1997 opened the way to the restructuring of Polands electricity power sector into three subsystems: generation, transmission, and distribution. At the moment the electricity sector remains largely controlled by the State, even if important reforms were undertaken. The Polish energy sector will be an attractive field to invest in the coming years because of future restructuring and modernization. Poland has an out of date infrastructure regarding distribution and power generation. As for now, 45% of all power generating equipment is over 30 and 77% is 20 years old. According to energy experts, multibillion Euro investments will be required to renew the exhausted power sector and guarantee uninterrupted supplies of electric energy. Additionally, Poland should to achieve the objectives of emission reduction (20% by 2020) under the implementation of recommendations of the energy and climate policy UE. Worth mentioning is that the Polish energy sector is depended on coal (90% of the countrys energy is produced from it). Investment will be required in new generation capacity, both in renewable technologies and clean coal technologies. The electricity production in Poland takes place on 33 power plants based on coal and 3 power plants based on lignite, which together constitute about 91% of the total energy production. Apart from these, electricity produce 177 industrial heat and power plants (about 5.2%), hydropower (about 2.8%), and complete all independent power and diffuse sources (about 1%). 45 See more: Central Statistical Office. 46 Sources: Ministry of economy. 2009. Energy Policy of Poland until 2030 and Jankowski, Bolesaw. 2012. Assessment of the Impact of the Emission Reduction Goals Set in the EC Document Roadmap 2050 on the Energy System, Economic Growth, Industry and Households in Poland.

26. 26 Currently in the energy sector about 160 thousand people is employed, nearly half is in the state energy companies such as: PGE, Tauron, Energa, Enea. Currently, the Polish energy sector is facing a number of serious challenges. High demand for energy, inadequate fuel and energy generation and transmission infrastructure, significant dependence on external supplies of natural gas and almost full dependence on external supplies of crude oil, as well as commitments in the field of environmental protection including climate protection, compel Poland to take decisive actions. The electricity demand will be grow by 1-3 % per year. The electricity sector will be intensively developed in the coming years. Energy development will be a result of modernization and the introduction of new technologies, and also the development of energy from renewable energy sources. Transportation and storage47 Transportation is an important branch of the polish economy. In conjunction with the logistics and spedition, transportation is part of the TFL (transport-shipping-logistics). Since joining the European Union in 2004, Poland has invested large amounts of money into the modernisation of its transport networks, thus the Polish transport infrastructure requires much more investment in order to make Poland more attractive for foreign capital. Transport is a more traditional branch and the main factor for the economic development of country. In Poland transport volumes have increased significantly during the 1990s. After of the market declined in the early of the 90-ties, transportation market in Poland was growing up from the 1994, in the rate of 6.5 % per year. Despite the projected slowdown in growth, Poland will continue its expansion plans to develop into a major logistics player in Europe. Poland is much better equipped now in airport infrastructure than it was just a few years ago. Investment at the Port of Gdansk has ensured that the country now features as a direct port of call for container lines, thereby decreasing the costs of transport for its importers and exporters and raising the competiveness of its trade sector. Further investment at Gdansk is in the pipeline, and its sister port of Gdynia is determined not to be left behind, with expansion projects also planned. Poland is not only seeking to develop into a maritime gateway for Central and Eastern Europe: its freight companies are planning to expand their role from the domestic arena to the regional, with PKP Cargo expanding into Germany and Belgium with the stated aim of becoming Europe's second largest rail freight operator after Deutsche Bahn. Poland's largest ports, Gdansk and Gdynia, are 47 Sources: Central Statistical Office; Business Monitor International; MarketResearch.com and Ministry of Transport, Construction and Maritime Economy. Polish Information and Foreign Investment Agency.

27. 27 expected to demonstrate growth in the medium term. Gdansk benefits from having the largest global container line Maersk Line as its customer, which now offers the facility as a port of call on some of its direct Asia-Europe services, offering Poland's importers and exporters cheaper and quicker transport links to ports in China. Currently, a projected recession in the eurozone will lead to a slowing in the growth of Poland's freight volumes, although the country's growing consumer demand will offer some shelter from the worst of the eurozone's negative impact on its export 2.3.4 Slovenia Due to the small size of the national market, Slovenia has the biggest potential in knowledge- based (high-tech) and internationally oriented sectors, which include information and communication technologies, life sciences, advanced materials and nanotechnology and electrical and electronics industry. Information and communication technologies Slovenias ICT industry is generally regarded as one of the most vigorous areas of industry due to well-developed ICT infrastructure and human capital. Exporters of IT products and services account for nearly 35% of overall industry exports. The clients derive from EU, the USA and also the Middle East. The range of products/services, provided by Slovene companies is IT solutions for the widest range of sectors (manufacturing, financial institutions, healthcare ) Due to geographical position and decades of fostering economic links to neighbouring countries, Slovene companies have an advantage to efficiently serve markets of the CE and SEE region. The number of international companies setting up their regional hubs in Slovenia is rising. The main reasons are the expertise of local managers, sales force and field engineers with their in-depth knowledge of regional markets. The sector has a long tradition, nevertheless it is highly dynamic and knowledge intensive, so new technologies are emerging continuously. Slovene companies adapt quickly to the new trends, there are also some niche leaders in the software development. The employment has been growing till 2009, but is slowly decreasing for two years. Life Sciences (Biotechnology, Food processing, Crop growing, Pharmacy, Medical equipment, Medicine) Several companies, RTD institutions (including Centres of Excellence) are operating on the following fields: 1. Active substances, dietary supplements and functional foods; 2. New technologies and devices in medicine, pharmaceutics and biotechnology; 3. "Tele-medicine" and "tele-nursing; 4. Cell therapy and tissue engineering; 5. Caring for the elderly and patients.

28. 28 The most recognised regional companies are KRKA and LEK (the latter is integrated in one of the world's largest generic giants Sandoz). In addition to big pharmaceutical industry, also smaller LifeScience companies are operating successfully in Slovenia. The sector has a long tradition, nevertheless it is highly dynamic and knowledge intensive, so new technologies are emerging continuously. Slovene companies adapt quickly to the new trends, there are also some niche leaders in the software development. Development trends: Safe food; New technologies and devices in medicine, pharmaceutics and biotechnology; 3. "Tele-medicine" and "tele-nursing; 4. Cell therapy and tissue engineering; 5. Caring for the elderly and patients. Advanced materials and nanotechnology Multi-disciplinary and trans-disciplinary research in order to foster key technological advances in certain areas relating to inorganic non-metallic materials and their implementation in electronics, optoelectronics, photonics, and medicine. Excellent basic and applied science, competences, quality of research and materials, need for better, cheaper, durable and safe materials is growing. The sector derives from plastic processing sector and does not have long tradition. Its nature is interdisciplinary, this means it is dynamic and research and knowledge intensive; new technologies are emerging continuously. Slovene companies are adapting to the new trends, especially in the field of usage of nanomaterial, nanotechnology in various sectors (food, construction, health, cosmetics ). Electrical and electronics industry Long-term tradition of collaborating with western Europe shows the advantages of Slovene electrical & electronics producing companies, their competences, quality and competitiveness. Slovene companies are development suppliers to mayor international companies supplying components for various sectors automotive, household appliances, energy sector and other. The sector has a long tradition, nevertheless it is highly dynamic and knowledge intensive, so new technologies are emerging continuously. Slovene companies adapt quickly to the new trends, there are also some niche leaders in the development of machines, running on alternative sources of energy (interdisciplinary research). Development trends: Efficient use of energy in electrical machines, apparatus, electronics, motors, magnetic technologies; fuel cells technologies, embedded systems, process automation: photovoltaics.

29. 29 2.3.5 Spain Sectors with the greatest potential in Spain are automotive industry and renewable energy, which are one of the leading sectors in an international scope, while technology sector and consulting services sector were the least affected by recent economic situation and thus promise best possibilities for highly qualified employment. Automotive industry48 Design, development, manufacture, marketing and selling of motor vehicles. Spain is one of the most important motor vehicle producing countries in Europe (second in the rank after Germany. Source: Organisation Internationale des Constructeurs dAutomibiles). In Spain, automotive industry activity is focused on manufacturing and selling. Spain has a long history in the automotive industry. Currently some of the most important companies in the sector have factories in Spain. In the last 5 years, the percentage of direct and indirect jobs over total labour force has remained stable (about 9% over the total labour force). Renewable energy49 Renewable energy has experienced a significant progress in Spain during the XXI century. This development has positioned the country as a reference in the world. Spanish leading companies related with renewable energies are: Iberdrola (world leader in wind energy), Gamesa (global technological leader in the wind industry), Acciona, Abengoa etc. Currently about 35% of the Spanish electricity demand is supplied by renewable energy (including hydropower) and near 17% is supplied by wind power. Regarding coverage of primary energy, about 12% is covered by renewable sources. Along the years, the renewable energy in Spain has had a limited development related to the primary energy demand and to the power demand. But from the beginning of the XXI. century this sector has been promoted by the different governments and currently, as mentioned above, Spain is one of the world leaders in the renewable energy. It is foreseen that the GDP contribution of the renewable energy in Spain will be 1,22% over the GDP in 2015 and 1,42% over the GDP in 2020. Technology50 48 Source: Ministry of Economy and Competitiveness. Invest in Spain. 49 Sources: Ministry of Industry, Energy and Tourism. Institute for Diversification and Energy Saving and Spanish Association of Renewable Energy Producers.

30. 30 The so-called ICT Sector is composed of the manufacturing or service industries whose main activity is related to the development, production, marketing and intensive use of information technology and communications. The ICT sector is characterized by high rates of innovation, technological progress and productivity, so it has a significant impact on economic activity. Since the nineties, in Spain, the ICT sector has experienced an increasing dynamism, only interrupted by the phenomenon associated with the crisis of the Internet bubble in 2001 and 2002, and perhaps now with the current economic crisis. However, the estimates indicate that its effect on the ICT sector would not be as pronounced as in other areas. The Spanish ICT industry, account for about 20% of total R & D business. This sector ranks second, after the business services segment R & D and above sectors such as chemical, pharmaceutical, automotive, mechanical and financial intermediation. Thus, the ICT sector is one of the main driving forces of innovation in the country, especially thanks to the IT services segment (which accounts for 50% of spending in the ICT sector), followed by telecommunications and ICT manufacturing, representing 34% and 16%, respectively, of the R & D sector. From 2006 to 2010 the number of companies in the sector has increased to an average of 1,7% annually. Total employment linked to ITC sector in 2011 was 355.376 employees. The ITC sector GDP contribution in 2011 was about 5% over the GDP. It is a fact that the economic crisis has affected the ICT sector to a lesser extent than other sectors. The ICT industry will be a key sector in the recovery. It forsees further job creation in the sector, especially it will demand HE graduates. Consulting services51 Consulting is one of the few areas in Spain that has maintained positive growth despite the economic situation being experienced by the country. One of the reasons for this behaviour is the development of the external market, which reported more than 21% of the total sector income during 2011. As in other sectors, the development of the consultancy has been linked to the modernization of the Spanish economy. Currently the sector is growing despite the difficult situation of the Spanish economy. In Spain there are domestic firms and the most important foreign firms, and all of them, since a few years, are competing in the international market, exporting to other countries the best practices of Spanish large companies and Spanish Public Administration. 50 Sources: Ministry of Industry, Energy and Tourism. National Observatory for Telecommunications and the Information Society and Multisectorial Trade Association for Electronics, Information and Communications Technologies, Telecommunications and Digital Content Industries. 51 Source: Spanish Association of Consulting Firms (AEC)

31. 31 During 2010 the total employment linked to consulting services was 233.000 employees, the most of them high qualified employees. According to the Spanish Association of consulting, 69% of the sector employees have a college degree. It is one of the sectors that demand more highly qualified employees. Between 2008 and 2010 the sector employment increased by 4,6%. As mentioned above, the consulting companies demand highly qualified employment. The evolution of the consulting services sector will need the hiring of the HE graduates. According to this, some sector experts think that the consulting industry will have a problem in the future: the sector will need more resources than the Spanish education system will be able to offer, because of the demographic decline in Spain and the low value that society attaches to technical careers.

32. 32 3 Overview of Best Practices and Project Reports on University-Business Cooperation (including HRM Strategies of Higher Education Institutions and Employers Organisations) Project partners had to identify at least 4-5 projects, 4-5 best practices of university-business cooperation and 4-5 HRM strategies of companies/HEs, enhancing the collaboration among them. The partners were instructed to identify the most relevant modes of cooperation between universities and enterprises and their characteristics. The partners identified a good number of modes/best practices of university-business cooperation. The most common system approaches are career centres of universities, internship programmes, joint curriculum development, development of quality standards of practical placement in enterprises, entrepreneurial courses in the university study programmes, collaborative research, support to start-up enterprises, knowledge/project consortia; alumni centres and job fairs. There are also some particularities; e.i. study visits of education policy specialists and decision-makers (EU level) and Graduate career tracking service of universities (Hungary). 3.1 Overview of Observed EU Reports, Best Practices, HRM Strategies of International Companies and Universities On the EU level the relevant projects were identified that were implemented recently and are publicly available. Prior to that we have done an extensive search of the project on the website and have chosen those that in our opinion match EMCOSU project goals the most. Regarding university strategies on EU level this approach was slightly different as we were not searching for EU institutions but national universities which are ranked as the top universities according to Academic Ranking of World Universities 2012. We have selected only European universities but from different countries. A big role of the selection also played the availability of information on the strategies on the webpages of particular universities. HRM strategies of companies were selected and later analysed in a similar way. After reviewing different lists of best EU companies we have identified several of them. The report includes those companies that were on these lists and their strategies were publically available on their webpages. 3.1.1 EU Projects and Reports

33. 33 New Skills and Jobs in Europe: Pathways towards Full Employment52 (EC 2012) The report reviewed 17 research projects, which investigated the determinants of skill formation and job creation designed to promote economic and social cohesion, financed by the DG Research. Among the most important skills and activities identified as needed in the EU labour market are: Cognitive logic of learning; More knowledge at work & new skills; flexicurity; Soft skills: HE offers specialised functional skills important for product innovation, yet not necessarily the soft skills for process innovation and large-scale diffusion of IT technologies which are especially important to small and medium-sized firms trying to close the productivity gap; Improving the links between education and labour market systems; Anticipation of skills needs, matching and guidance services are thus fundamental in order to raise productivity, competitiveness, economic growth and employment; Early investments of labour market systems in education; Economic logic of investment in education; Better job quality and working condition. Linking the Worlds of Work and Education through Tempus53 (Jongsma et al 2007) With the advance of the knowledge-intensive economies in Europe, the issue of university- business partnership became prominent on the agenda of European higher education policy. Therefore universities can no longer stay as an independent academic force in our knowledge society. They need to cooperate with public and private organisations and enterprises in order to produce employable students and to maximise the use of knowledge. The document explains the benefit of collaboration: Technological Advancement: enterprises which consider human resources as key resource cannot ignore universities; in order to produce employable students, universities cannot ignore the needs of those enterprises. Globalisation: new demands on the core skills Being flexible and adjusting to labour market needs. Elitist, conservative and independent academic culture limits the access for outside interference. Funding: a driver as well as an obstacle, can boost the university-enterprise cooperation. 52 Source: European Commision. 2012. New Skills and New jobs in Europe: Pathways towards full employment. 53 Source: Jongsma, Ard, Claire Morel and Ulrike Damyanovic. 2007. Linking the worlds of work and education through Tempus. European commision.

34. 34 Institutional management: partnership between universities and enterprises depend on the university management willingness to develop a new vision and introduce new core tasks. Education policy and legislation is a powerful facilitator, allowing universities to raise funds on a commercial basis and incentive to industry for cooperating more closely with universities. The report identified three modes of university-enterprise cooperation (and the implemented activities): The establishment of cooperation platforms participation in governing boards of enterprises and universities, participation in recruitment committees in enterprises, establishment of technology transfer centres, start-up of new joint enterprises etc. Joint curriculum development joint analysis of training needs, joint development of teaching and learning modules, joint education and training projects etc. Mobility exchange of staff between universities and enterprises, sabbatical leave for university staff in enterprises and vice versa etc. 30 Good Practice Case Studies in University-Business Cooperation54 (Davey et al 2009) The document describes the UBC in Europe, relevant for university management and knowledge transfer professionals, all levels of government responsible for economic development and for business seeking to increase innovation through UBC. In these good practices, the following five elements are important: Stakeholders: the mutual cooperation of government agencies, higher education institutions and business. Factors of Cooperation: strategies, structures and approaches, activities and framework conditions. Influencing factors: barriers, drivers and situational factors. Types of cooperation: collaboration in research and development (R&D), mobility of academics, mobility of students, commercialisation of R&D results, curriculum development and delivery, lifelong learning, entrepreneurship and governance. UBC Ecosystem (Regional characteristics; Participation of multiple stakeholders; The extent of cooperation: differences among regions; Transferable practices: case studies as models; Commitment: longer term commitment among stakeholders for success Funding: longer and sustainable funding models from private and multiple stakeholders). European University Enterprise Network (EUE-NET)55 54 Source: Davey, Todd, Thomas Baaken, Michael Deery and Victoria Galan Muros. 2009. 30 good practice case studies in university-business cooperation (UBC). European commision. 55 Source: European University Enterprise Network (EUE-NET).

35. 35 The project deals with development of quality standards of practical placement in enterprises in order to enhance of the quality of practical placements of students. Other activities are: Increasing the presence of companies representatives within the University activities (designing, experimenting and promoting appropriate innovative mobility schemes involving entrepreneurs). Tuning Entrepreneurship - defining generic entrepreneurial skills for the students and best profile of teachers in order to enhance the entrepreneurial approach within the university sector. Development and networking at European level the University entities having as natural vocation the link between University and Enterprise: Network of Career Development Offices. Business and Schools: Building the World of Work together56 (UK Commission for Employment and Skills 2012) This document looks into the perceptions and experiences of business when working with schools to build the world of work into education. It is also explaining how businesses influence the design and delivery of curriculum, provide work experience and raise awareness of careers. Explanations of key areas in which businesses are currently working with schools, business and education perspectives, barriers etc., are explained in detail. The identified best practices are (a) business engagement with schools and (b) business perceptions and experiences reveal the importance of attributes and qualities and employability skills (enterprises recon young people are poorly prepared, they lack experiences, attitudes and motivation). Nevertheless, benefits of cooperation are identified and are the following: For Enterprises: skilled young people, greater productivity, reduced training and supervision cost, improve staff morale, community engagement, social mobility, diversity and inclusion, winning public contracts and raising awareness and building reputation. For Schools: improvement in school performance, employment prospects for students, enrichment and enhancement of the delivery of education, providing quality work experience opportunities, providing career information and raising the profile of careers in sector and teacher placements University-Economy Partnerships for enhancing Knowledge Transfer57 (World University Service Austria 2010) The project aims at improving the relationship between education and economy. World University Service (WUS) has been playing a great role in the reconstruction and advancement 56 Source: UK Commission for Employment and Skills. 2012. Business and Schools: Building the world of work together. 57 Source: World University Service Austria. 2010. University-Economy Partnerships for enhancing Knowledge Transfer.

36. 36 process of higher education. Universities in general are playing an essential role in strengthening economic competitiveness of the region. The state of European university-business cooperation58 (SciencetoBusiness Marketing Research Centre 2011) Despite the proven advantages and benefits of university-business cooperation (UBC) for universities, business, students and society as a whole, quantitative measurements of these connections in Europe are few and far from exhaustive. This report of the Science-to-Business Marketing Research Centre (in Mnster, Germany) is presenting the results of the first such major study. Instead of concentrating on the outcomes of UBC, this study takes the point of view of those actually undertaking UBC, their personal views and behavioural issues. The goal of the study is finding out how extensive is UBC in European HEIs, why some academics and HEIs engage in UBC and others dont, and - if influencing factors are only part of the explanation for UBC activity - what else can help to explain total European UBC. Considering the extent of UBC in European HEIs, results show that other than some exceptions, UBC in Europe is still in the early stages of development. Although most HEIs engage in some form of UBC, most academics are still engaged only to a low extent or not at all. Cooperation takes place in eight distinctive ways (collaboration in research and development (R&D), mobility of academics, mobility of students, commercialisation of R&D results, curriculum development and delivery, lifelong learning (LLL), entrepreneurship, governance), amongst which there are clear relationships. More developed types of UBC (e.g. R&D and commercialization of its results) offer more direct, measurable and promotable benefits, while the least developed types (governance, mobility of academics) provide more indirect benefits and little ability to promote. The differences in the extent to which academics and HEIs engage in UBC can be explained by different factors. One of these factors are perceived benefits of UBC for stakeholders, for instance academics acknowledge benefits for students, business and HEIs, but do not recognise the benefits for themselves and thus engage in UBC to a lesser extent. Besides perceived benefits, the most important factors are perceived drivers and barriers of UBC. The academics or HEIs perceiving higher drivers are generally more engaged in UBC than those perceiving lower drivers. As for barriers, academics perceive lack of funding and too much bureaucracy in the HEI to be the main problems, while HEIs agree on funding, but dont recognise bureaucracy as such a barrier. Drivers and barriers are also interrelated even if funding is provided, it does not guarantee cooperation, if important drivers (e.g. existence of shared goals, mutual commitment and trust) or perceived benefits are not developed enough. Besides the benefits, drivers and barriers, there are also situational factors that influence the extent of engagement in UBC, like 58 Source: SciencetoBusiness Marketing Research Centre. 2011. The state of European university-business cooperation.