erawatch country reports 2010: serbia

ERAWATCH COUNTRY REPORTS 2010:

Serbia

ERAWATCH Network – Mihajlo Pupin Institute, Belgrade

Djuro Kutlaca

COUNTRY REPORTS 2010: SERBIA

Acknowledgements and further information:

This analytical country report is one of a series of annual ERAWATCH reports which are produced for EU Member and Countries Associated to the EU Seventh Research Framework Programme (FP7). ERAWATCH is a joint initiative of the European Commission's Directorate General for Research and Innovation and Joint Research Centre.

The analytical framework and the structure of the reports have been developed by the Institute for Prospective Technological Studies of the Joint Research Centre (JRC-IPTS) with contributions from Directorate General for Research and Innovation and the ERAWATCH Network. The report has been produced by the ERAWATCH Network in the framework of the specific contract on ERAWATCH Research Inventory and Analytical Country Reports 2010 and 2011 commissioned by JRC-IPTS.

In particular, it has benefited from comments and suggestions of Slavo Radosevic, who reviewed the draft report. The contributions and comments of Nicholas Harrap from JRC-IPTS and DG-RTD are also gratefully acknowledged.

The report is only published in electronic format and available on the ERAWATCH website. Comments on this report are welcome and should be addressed to [email protected].

The opinions expressed are those of the authors only and should not be considered as representative of the European Commission’s official position.

of 52

http://erawatch.jrc.ec.europa.eu/

http://ec.europa.eu/research/index.cfm?pg=dg

http://ec.europa.eu/dgs/jrc/index.cfm

http://ec.europa.eu/dgs/jrc/index.cfm

http://ipts.jrc.ec.europa.eu/

http://ipts.jrc.ec.europa.eu/

http://ec.europa.eu/research/index.cfm?pg=dg

http://www.erawatch-network.eu/





mailto:[email protected]

mailto:[email protected]


Executive Summary The creation of national innovation system (NIS) in Serbia is one of the crucial transitional changes in the country. The present situation is characterised by several key trends. The positive trends are: according to the Essential Science Indicators from Thomson Reuters, Serbia has achieved a Rising Star status in the number of S&T fields; fast growing investments in building of innovation infrastructure; nation-wide increase of technology based spin-offs and spin-outs in universities and public institutes. The negative trends are: a changing number of researchers from year to year due to permanent brain drain; ageing of the research population; budgetary allocations for S&T remain at the very low level of about 0.3% of GDP; insufficient visibility of R&D capacities in business enterprise sector (BES). In addition, the still present linear model of governance of the R&D and innovation system in the country is the main obstacle to the networking of R&D sector with the rest of economy and society. Therefore, policy instruments for knowledge circulation promotion could have limited effects on knowledge circulation because of insufficient integration of BES and public R&D sector.

Restructuring of public R&D system and integration of business enterprise R&D sector into NIS is the strategic orientation of government as articulated in the Strategy for S&T development of the Republic of Serbia until 2015.

Knowledge Triangle

Recent policy changes Assessment of strengths and weaknesses

Research policy New Strategy of S&T Development of the Republic of Serbia 2010-2015 adopted by the Government of the Republic of Serbia on February 25, 2010 New Science Law adopted by the Parliament of the Republic of Serbia on March 24, 2010

Strengths:

• Focused on seven national research priorities;

• Partnership through strengthening ties with institutions and companies to allow Serbia to validate its ideas in the global market;

• Strong policy support for creation of national innovation system.

Weaknesses:

• Insufficient knowledge about R&D and innovation capacities in business sector;

• Evaluation of knowledge demand is on a low level;

• Evaluation of knowledge production is in favour of scientific publications, although technological development and innovative orientation of engagement of R&D sector emerge in S&T Strategy as policy effort aimed at increasing knowledge production quality and economic valorisation of R&D activities. Still, more time is needed to have practical effects of this policy change.

Innovation policy New Innovation Law adopted by the Parliament of the Republic of Serbia on March 24, 2010

Strengths:

• Fast growing investments in building of innovation infrastructure.

Weaknesses:

• Still present linear model of governance of the R&D and innovation system;

• Legal barriers could inhibit cooperation between business sector and public R&D sector.

of 52


Recent policy changes Assessment of strengths and weaknesses Education policy New High Education

Law adopted by the Parliament of the Republic of Serbia on June 29, 2010

Strengths:

• Integration in European HE Area;

• Support for creation of university spin-offs. Weaknesses:

• Differentiation between “teaching” and “research” universities is not legally recognised and this may cause decrease of competence of overall HE system.

Other policies Set of laws in the area of intellectual property rights adopted by the Parliament of the RS on March 24, 2010

Strengths:

• Integration of national IPR system into EU legal and operational system of protection of IPR.

Weaknesses:

• Increase of expenses for IPR;

• Low level of overall culture for protection as well as for commercialisation of IPR.

European Research Area

Assessment of the national policies/measures supporting the strategic ERA objectives (derived from ERA 2020 Vision)

ERA objectives Main national policy changes Assessment of strengths andweaknesses

1 Ensure an adequate supply of human resources for research and an open, attractive and competitive single European labour market for male and female researchers

• Recently launched public call (May 23rd, 2010) for funding of three programmes – Basic Research, Technological Development and Integrated and Interdisciplinary Research by the MSTD has explicitly promoted initiative for integration of foreign researchers into domestic R&D teams;

• There is no special regulation for career breaks (i.e. parental leave) in the R&D sector, and this is equal for all employees in public sector. Restoration of the same position is guaranteed by the law, and fixed-term contract must be extended due to maternity leave;

• MSTD recently has launched programme which will engage Serbian scientific Diaspora in joint projects and other initiatives, as well as to motivate the scientists to return to Serbia.

• Ageing of the research population could become an issue with more than a half of researchers’ age between 35 and 54 years (56.01%);

• Number of researchers in Serbia is changing from year to year, due to permanent brain drain and incentives for higher employment addressed to fight emigration of researchers from Serbia abroad;

• There is no equivalence in the HELaw for scientific positions in HEinstitutions similar to regulation for carrier advancement in R&D sector within the Science Law. This situation can cause worsening of competence of staff in HE sector.

2 Increase public support for research

• Public funding of investments in R&D and Innovation activities in the period 2011-2014 will be realized under the S&T Strategy assumption that: “A realistic plan of growth of budget appropriations for science is an annual growth rate of 0.15% GDP. At such a pace, the budget appropriations by 2015, the closing of this Strategy framework shall reach 1.05%.” (MSTD-Strategy, 2010)

• Plan of growth of budget appropriations for science as an annual growth rate of 0.15% GDP could be affected by the economic crisis.

of 52



3 Increase European coordination and integration of research funding

• New ST strategy promotes international multilateral and bilateral S&T cooperation.

• Serbia’s participation in intergovernmental organisations and schemes could be assessed as encouraging, particularly in international programmes, such as COST, EUREKA, NATO SPS, Cooperation programme with the International Atomic Energy Agency, Cooperation with UNESCO.

4 Enhance research capacity across Europe

• MSTD is the focal point for the adoption and implementation of measures meant to facilitate a broader inclusion and higher competitiveness of research groups, including groups in innovative companies and corporations in FP7. These measures are being implemented through national contact person’s network for the FP7 and the Consultative Bureau for International Projects established by the MSTD.

• Still, there is very modest participation of R&D and innovative and corporate organizations in FP7: estimates are that less than 20% of researchers have been involved in European projects.

5 Develop world-class research infrastructures (including e-infrastructures) and ensure access to them

• Serbian R&D infrastructure investment initiative is part of new S&T Strategy in Serbia. The Project of infrastructural investments, worth €400m will start in January 2010 and last until the end of 2015.

• Mechanisms for realisation of this initiative are different from the process of distribution of government budget for R&D activities, which makes €400m R&D infrastructure investment initiative more reliable and independent from negative effects of the world economic crisis.

6 Strengthen research institutions, including notably universities

• The Law on Higher Education (LHE), which fully implements the Bologna Declaration in Serbia, came into effect on 10 September 2005, opening the process of integration of Serbian HE system into EU HE area.

• Overall assessment is that most of the private HE institutions are so-called “teaching” faculties, with transmission of knowledge (teaching) as primary and only activity. Other two main missions: generation of new knowledge (research) and the 'third mission' (contribution to local or regional wealth and economic development) are mostly present in majority of public HE institutions;

• Besides accreditation procedure (obligatory under the HE Law), for teaching competence, and under the Science Law, for R&D competence, there is no specific evaluation of teaching and R&D performance of HE institutions in Serbia. There is no single HE institution from Serbia within“Shanghai top 100 HE” so far.

of 52



7 Improve framework conditions for private investment in R&D

• Existing Innovation Law makes more legal conditions for private investment in R&D;

• The MSTD shall soon draft a new “Law on innovative activities” and amendments to the “Law on intellectual property rights” with the provisions concerning science research in terms of clear and more intensive linkage of science, research and innovation with economy.

• Innovation Fund is in process of formation on a public-private basis between direct and indirect beneficiaries of the budget, public enterprises, international financial institutions, banks, private commercial companies and others. The Fund would be established under the law governing incorporation and operation of investment funds, with majority state founding equity.

8 Promote public-private cooperation and knowledge transfer

• Crucial step forward in order to create environment which support technological entrepreneurship in Higher Education Sector (HES) and public R&D laboratories and institutes (PRO – Public Research Organisations) are changes in HE Law and Innovation Law which stimulates and legally approves creation of university and PROs spin-offs.

• Crucial challenge for research governance in Serbia is question how to increase R&D and Innovation activities in Business Enterprise Sector (BES) in country. Official figures showed that BERD share in GERD is only 9.1% in 2008, compared with 63.7% in EU. Recent official statistical surveys in Serbia support findings that R&D investments in BES are comparable to those by the MSTD. Further investigations in revealing the real situation in BES are needed, in order to have S&T policy based on much bigger human resources in R&D.

9 Enhance knowledge circulation across Europe and beyond

• Increase of Serbian FP participation provide an opportunity for knowledge circulation;

• Growing number of financial as well as policy instruments aimed at improving knowledge commercialization.

• Policy instruments for knowledge circulation promotion could have limited effects for knowledge circulation because of insufficient integration of business sector and public R&D sector.

10 Strengthen international cooperation in science and technology and the role and attractiveness of European research in the world

• On the basis of the Memorandum of Understanding signed by the Republic of Serbia regarding its Association with the EU FP7, Serbia obtained the status of Associated Country on June 13, 2007.

• Success rate of Serbian researchers compared with colleagues from South East European countries could be assessed as moderate, i.e. it is necessary to improve skills for better preparation of applications, as well as to adopt better strategies for partnerships with participants from EU member countries;

• Promotion of national S&T priorities will be accomplished through science members/experts delegated to play an active role within programme committees for different areas of FP7 and within other advisory committees of the EC.

of 52



11 Jointly design and coordinate policies across policy levels and policy areas, notably within the knowledge triangle

• It is legally granted rights and possibility that representatives from business sector could be elected in managing boards in public faculties and universities and PROs;

• Innovation Law supports cooperation between PROs and small and medium sized (SME) companies. Recently adopted S&T Strategy and latest public call for new R&D projects for 2011-2014 period also support (in financial terms) cooperation between PROs and SMEs.

• Number of mechanisms, grant schemes, incentives and programmes has launched since 2005, supporting public-private sectors knowledge transfer, transfer of technologies from R&D to business sector, and realisation of innovation projects in business enterprise sector in Serbia. There is ongoing evaluation of most of these schemes and programmes, (co)financed by the MSTD and Ministry of Economy and Regional Development in Serbia.

12 Develop and sustain excellence and overall quality of European research

• The Science Law adopted by the parliament in 2005 promotes excellence in R&D work, imposing publishing of scientific articles in ISI referred scientific journals as precondition for career advancement in R&D sector.

• Following the Essential Science Indicators from Thomson Reuters, Serbia has achieved Rising Star status in multiple fields: Biology & Biochemistry, Chemistry, Clinical Medicine, Computer Science, Engineering, Materials Science, Mathematics, Neuroscience & Behaviour, Pharmacology & Toxicology, and Physics.

13 Promote structural change and specialisation towards a more knowledge - intensive economy

• New Innovation law is the legal framework for public – private partnership in R&D and innovation, and “Strategy of Scientific and Technological Development of the Republic of Serbia 2010-2015” presents an action plan for realisation of such partnership;

• International S&T cooperation becomes additional knowledge driver with increasing importance, both in research and financial aspects. The basic programmes are the FP7, COST, EUREKA, NATO SPS, including cooperation with the International Atomic Energy Agency (IAEA), and bilateral cooperation programmes.

• Commercialisation of R&D results must be among the highest priorities for MSTD: MSTD would issue the document prescribing publicity and confidentiality of information relative to the realization of the innovation project, and how mutual relations are regulated among the project participants, in terms of intellectual property rights and respective financial compensation in the case of commercialization of an IPR. Considerable part of income would go to the innovators (not less than 30%) and institution (no less than 20%).

14 Mobilise research to address major societal challenges and contribute to sustainable development

• Agriculture and energy are sectors of economy with strongest support from government sources for R&D; significant share of government budget is allocated for R&D activities addressed to industrial production and technology and protection and improvement of human health.

• Still present linear model of governance of the R&D and innovation system in the country is main obstacle for networking of R&D sector with the rest of economy and society.

of 52


of 52


15 Build mutual trust between science and society and strengthen scientific evidence for policy making

• One among the recently adopted national S&T priorities is the “Improvement of decision making processes and affirmation of national identity”.

• The development of a national innovation system is overall aim of new S&T Strategy and necessity in order to be able to build Serbia as a knowledge-based economy and society;

• The centres of excellence will be formed in some PROs. These centres are expected to provide support for the Serbian economy, specifically by helping innovative SMEs in their programmedevelopment.

TABLE OF CONTENTS

Executive Summary.................................................................................................... 3 1 ........................................................................................................ 11 Introduction2

............................................................... 11 Performance of the national research and innovation system and assessment of recent policy changes

2.1 ................................................................................................. 11

Structure of the national research and innovation system and its governance

2.2 ................................................................................. 14 Resource mobilisation2.2.1 ........................................... 14 Resource provision for research activities2.2.2

............................................................................... 16 Evolution of national policy mix geared towards the national R&D investment targets

2.2.3 .................................................. 16 Providing qualified human resources2.3 .................................................................................... 17 Knowledge demand2.4 ................................................................................. 18 Knowledge production

2.4.1 ................................ 19 Quality and excellence of knowledge production2.4.2

........................................................................................... 19 Policy aiming at improving the quality and excellence of knowledge production

2.5 ................................................................................. 20 Knowledge circulation2.5.1

................................................................................. 20 Knowledge circulation between the universities, PROs and business sectors

2.5.2 .................................................... 22 Cross-border knowledge circulation2.5.3 ..................................................................... 24 Main societal challenges

2.6 ..................................................................................... 25 Overall assessment3 ......... 26 Interactions between national policies and the European Research Area

3.1 ................................... 26 Towards a European labour market for researchers3.1.1 ............................................ 27 Stocks and mobility flows of researchers3.1.2 .................... 29 Providing attractive employment and working conditions3.1.3 .......................................... 30 Open recruitment and portability of grants3.1.4

.............................................................................. 31 Meeting the social security and supplementary pension needs of mobile researchers

3.1.5 ......................................................................................... 31

Enhancing the training, skills and experience of European researchers

3.2 ............................................................................. 31 Research infrastructures3.2.1 ........................................ 32 National Research Infrastructures roadmap3.2.2 ...................................... 33 National participation in the ESFRI roadmap

3.3 ............................................................. 33 Strengthening research institutions3.3.1 ...................................... 34 Quality of National Higher Education System3.3.2 ............................................................................ 38 Academic autonomy3.3.3 ................................................................................ 38 Academic funding

3.4 ..................................................................................... 39 Knowledge transfer3.4.1 ............................................................... 40 Intellectual Property Policies


of 52

3.4.2 ................................................................................................ 41

Other policy measures aiming to promote public-private knowledge transfer

3.5 .............................................................................. 42

Cooperation, coordination and opening up national research programmes within ERA

3.5.1 .............................................................................................. 42

National participation in intergovernmental organisations and schemes

3.5.2 .................. 43 Bi- and multilateral agreements with other ERA countries3.5.3

.................................................................. 43 Other instruments of cooperation and coordination between national R&D programmes

3.5.4 .......................................... 44 Opening up of national R&D programmes3.6 ...................................... 44 International science and technology cooperation

3.6.1 ..................................................................... 44 International cooperation3.6.2 ........................ 45 Mobility schemes for researchers from third countries

4 ....................................................................................................... 46 Conclusions4.1 ...................................................... 46 Effectiveness of the knowledge triangle4.2 .............................................................. 47 ERA 2020 objectives - a summary

References ............................................................................................................... 51 List of Abbreviations ................................................................................................. 51


1 Introduction The main objective of the ERAWATCH Analytical Country Reports 2010 is to characterise and assess the evolution of the national policy mixes in the perspective of the Lisbon goals and of the 2020, post-Lisbon Strategy. The assessment will focus on the national R&D investments targets, the efficiency and effectiveness of national policies and investments into R&D, the articulation between research, education and innovation, and on the realisation and better governance of ERA. In doing this, the 15 objectives of the ERA 2020 are articulated.

The report is focused on the structure and policy assessment in the domains of human resource mobilisation, knowledge demand, knowledge production and science-industry knowledge circulation. The information is related to the all six ERA pillars and addresses the corresponding objectives derived from ERA 2020 Vision.

Given the latest developments, the 2010 Country Report has a stronger focus on the link between research and innovation, reflecting the increased focus of innovation in the policy agenda. The report is not aimed to cover innovation per se, but rather the 'interlinkage' between research and innovation, in terms of their wider governance and policy mix.

2 Performance of the national research and innovation system and assessment of recent policy changes

The aim of this chapter is to assess the performance of the national research system, the 'interlinkages' between research and innovation systems, in terms of their wider governance and policy and the changes that have occurred in 2009 and 2010 in national policy mixes in the perspective of the Lisbon goals. Each section identifies the main societal challenges addressed by the national research and innovation system and assesses the policy measures that address these challenges. The relevant objectives derived from ERA 2020 Vision are articulated in the assessment.

2.1 Structure of the national research and innovation system and its governance

Serbia is an associated country for EU membership, and according to Eurostat has 7.31 million inhabitants, which compared to the estimated EU27 population of around 501.1m on January 1, 2010, presents 1.44%1 share of the total. In the year 2009, Serbia's GDP per capita reached 17.3% of the EU27 average. At the same time Serbia's unemployment rate was 16.6%; almost twice higher than the EU27 average of 8.9%2. In 2008, Serbia's GERD as a percentage of GDP was 0.715% which was

1 This estimation is based on the calculation that Serbia becomes the 28th member of the EU. So in this scenario the total sum of the EU population will be the sum of Serbia's population (2009 estimate) and the EU population (2009 estimate). 2 Latest data provided by the Statistical Office of the Republic of Serbia for April 2010 showed that unemployment rate (the share of the unemployed in total active population), in the Republic of Serbia

of 52


significantly lower in comparison to the EU27 average (1.9%). The main characteristics of these investments are change and instability i.e. in 2004 Serbia's GERD as a percentage of GDP was 0.32%, in 2006 it increased to 0.71% and in 2007 decreased to 0.63%3. By comparison to other Eastern European Countries, Serbia significantly lags behind Slovenia (1.66%), Czech Republic (1.47%), Estonia (1.29%), Hungary (1%) and Croatia (0.9%), again using Eurostat data.

According to the data provided by the national statistical office, in 2008 the share of higher education sector expenditures on R&D (HERD) was 50.5% of GERD, much higher than the BERD share (9.1%) of GERD. Governmental expenditure on Research and Development was 40.4% whereas the private non-profit (PNP) sector amounted to a negligible share of GERD in the same year4.

Main actors and institutions in research governance

The Serbian research system consists of three operational levels: 1) The Parliament and the National government level, represented by the Committee for S&T development; 2) The ministry level responsible for the design and implementation of science and research programmes on the national level; and 3) performers of R&D activities and intermediary organisations.

The first level of research governance is the Serbian National Parliament, the highest legislative authority in the country, and the Committee for S&T Development reviews and proposes to the Parliament the laws regulating the area of science, technology and innovation. Two parallel bodies concerning R&D have been established at the level of the Serbian government. The Ministry of S&T Development (MSTD) governs the functioning and development of S&T in Serbia and is responsible for fulfilment of the country’s obligations in this area. On the other hand, the main task of the National Council for S&T Development is to design and propose to the government a strategy for S&T development and to monitor its implementation.

The second block, pivotal to the functioning of the entire system, is composed of organisations for support, networking and financing of research, development and innovation in Serbia. It comprises the Intellectual Property Office, Serbian Institute for Standardisation, Office for Measures and Precious Metals, National Information Technology and Internet Agency, Accreditation Board of Serbia, agencies for small and medium-sized enterprises and entrepreneurship, Telecommunications Agency, chambers of commerce, innovation centres, business and technology incubators, technology and industrial parks, foreign agencies for support of technological and economic development etc.

amounted to 19.2%, i.e. 18.6% and 20.1% regarding male and female population, respectively. Unemployment rate in Central Serbia is 20.6 %, in Vojvodina 20.9 % and 14.0% in Belgrade. 3 R&D Indicators for Serbia are calculated by the author of this report. Calculations are based on data provided by the Statistical Office of the Republic of Serbia within regular yearly statistical reports on S&T activities in Serbia, and using methodology proposed in Frascati Manual defined by the OECD. 4 Year 2008 is the first year that official statistics in Serbia has recorded R&D engaged in PNP sector.

of 52


Figure 1: Overview of Serbia’s research system governance structure

Parliament of the Republic of Serbia

NCSTD

Political Level MSTD

CSTD

SB AB CSP

OIPR OS OMPM QCA FA Operational Level

CC TDC IC BTI STP ITA

HE-PuU

PROs-SI

PROs-RI RDIs SASA Research Performers

HE-PrU PrRO CI

Legend: Political Level: Operational Level: Research Performers: CSTD – Committee for S&T development

OIPR – Office for Intellectual Property Rights

HE-PuU – Higher Education, Public Universities

MSTD – Ministry of S&T Development

OS – Office for Standardization PROs-SI – Public Research Organisations – Scientific Institutes

NCSTD-National Council for S&T Development

OMPM – Office for Measurements and Precious Metals

PROs-RI – Public Research Organisations – Research Institutes

AB – Accreditation Board QCA – Quality Certification Agencies

RDI – R&D Infrastructures

SB – S&T Boards CC – Chambers of Commerce SASA-Serbian Academy of Sciences and Arts

CSP – Committee for Scientific Promotion

NARD – National Agency for Regional Development

HE-PuU – Higher Education, Private Universities

IC – Innovation Centres PrRO – Private Research Organisations

BTI-Business and Technological Incubators

CI – Corporate Institutes

STP – S&T Parks ITA – IT and Internet Agency FA – Foreign Agencies for support

of Technological Development

Source: ERAWATCH Research Inventory

The institutional role of regions in research governance

The Science Law as well as the Innovation Law in the Republic of Serbia defined MSTD as the main and the only governing institution in country, responsible for R&D and Innovation activities. Research governance is to a limited extent transferred to the level of Autonomous Province of Vojvodina (APV), as it is defined by the “Law on regulation of jurisdictions of the APV”, adopted by the Parliament of the Republic of Serbia on November 30, 2009: 1) creation of the Strategy for technological development of the APV, which must be harmonized with national S&T strategy; 2) (co)funding of establishment of high-tech installation, building of homes for young scientists, and international S&T cooperation; 3) (co)funding of R&D activities; 4) definition and funding of programmes important for APV in the area of S&T; 5) project financing for R&D projects important for APV; 6) financing of capital expenses and

of 52


R&D infrastructure established by the APV; 7) establishment of the innovation fund in APV, based on local revenues; 8) establishment of local R&D centres and popularization of S&T activities in APV; 9) financing of Academy of Sciences and Arts of the APV. Some of these activities could be co-financed by the MSTD under the specific decision made by the Minister.

Main research performer groups

The main research performers are divided into 1) public scientific institutions i.e. higher education institutions and research institutions; 2) R&D organisations in the private sector; and 3) R&D and Innovation infrastructure institutions.

R&D organisations in the public sector form a block which comprises seven public universities with 78 faculties, the Serbian Academy of Sciences and Arts with its 10 scientific institutes, 28 other scientific institutes, a centre of scientific excellence, 30 research institutes, 65 innovative organisations, five business associations for support of innovation and 107 registered innovators. It also includes scientific and technical infrastructure that encompasses: the academic intranet, a gene bank, an accelerator, libraries of the institutes and faculties, the University Library and the National Library of Serbia, which boasts the KoBSON network that provides access to scientific and technological information worldwide.

R&D organisations in the private sector include seven private universities with 45 faculties, research resources of foreign companies in Serbia and research and innovation resources of domestic firms. The efforts and results of small and medium-sized enterprises in the field of software engineering, new materials and biotechnology are particularly noteworthy.

2.2 Resource mobilisation Since 2000, Europe has made evident progress towards ERA but at the same time it is clear that Europe's overall position in research has not improved, especially regarding R&D intensity, which remains too low. The lower R&D spending in the EU is mainly a result of lower levels of private investment. Europe needs to focus on the impact and composition of research spending and to improve the conditions for private sector R&D investments.

This section assesses the progress towards national R&D targets, with particular focus on private R&D and of recent policy measures and governance changes and the status of key existing measures, taking into account recent government budget data. The need for adequate human resources for R&D has been identified as a key challenge since the launch of the Lisbon Strategy in 2000. Hence, the assessment includes also the human resources for R&D. Main assessment criteria are the degree of compliance with national targets and the coherence of policy objectives and policy instruments.

2.2.1 Resource provision for research activities Serbia is lagging behind most of the EU Member Countries in R&D investments, reaching GERD in 2008 as 37.6% of EU27 average. The main source for funding of R&D activities in Serbia is government budget, with GOVERD (56.4% of the funding of government owned institutes and R&D centres coming from public sources) and HERD (71.7% of the funding of higher education institutions for R&D activities

of 52


coming from public sources) reaching together 90.9% of all R&D expenses in country5.

Table 1: GERD and GOVERD as share of GDP in Serbia and EU27

Year 2004 2005 2006 2007 2008 Serbia: GERD/GDP (%) 0.319 0.433 0.710 0.634 0.715 EU (27 countries): GERD/GDP (%) 1.82 1.82 1.85 1.85 1.9 Serbia: GOVERD/GERD (%) 50.0% 46.0% 68.2% 41.3% 40.4% EU (27 countries): GOVERD/GERD (%) 13.2% 13.7% 13.0% 12.4% 12.6%

Source: EUROSTAT and Statistical Office of the Republic of Serbia: yearly statistical bulletins on S&T activities in Serbia

Investments in research and innovation in Serbia from public sources are prioritised and budgeted in the framework of multi-annual plans to ensure predictability and long term impact. Project financing based on open competition for R&D and Innovation projects is a decade long practice in Serbia. Latest developments proved the Government's long-term orientation toward competitive rather than institutional funding of R&D activities: “Strategy of S&T Development of the Republic of Serbia 2010-2015”, adopted by the Government of the Republic of Serbia on February 25, 2010, defined seven national priorities in the domain of S&T (MSTD-Strategy, 2010).

Table 2: HERD as share of GDP and GERD in Serbia and EU27

Year 2004 2005 2006 2007 2008 Serbia: HERD/GDP (%) 0.113 0.184 0.174 0.356 0.361 EU (27 countries): HERD/GDP (%) 0.4 0.4 0.41 0.41 0.43 Serbia: HERD/GERD (%) 35.5% 42.4% 24.5% 56.2% 50.5% EU (27 countries): HERD/GERD (%) 22.0% 22.0% 22.2% 22.2% 22.6%


National priorities in the domain of S&T, defined in S&T Strategy are: 1) Biomedicine and human health; 2) New materials and nanosciences; 3) Environment protection and countering climate change; 4) Agriculture and food; 5) Energy and energy efficiency; 6) ICT; and 7) Improvement of decision making processes and affirmation of national identity (MSTD-Strategy, 2010).

Following the “Strategy of S&T Development of the Republic of Serbia 2010-2015”, a public call for funding of Basic Research, Technological Development and Integrated and Interdisciplinary Research programmes has been announced on 23rd of May, 2010, supported by the “Act on the selection, evaluation and financing of research for the project cycle 2011-2014”, and the “Programme for the research cycle 2011-2014” (MSTD-Act, 2010). Public funding of such investments in R&D and Innovation activities in the period 2011-2014 will be realized under the S&T Strategy assumption that: “A realistic plan of growth of budget appropriations for science is an annual growth rate of 0.15% GDP. At such a pace, the budget appropriations by 2015, the closing of this Strategy framework shall reach 1.05%” (MSTD-Strategy, 2010).

5 Figures for GERD, GOVERD, BERD and HERD in Serbia are calculated by the author of this report. Calculations are based on data provided by the Statistical Office of the Republic of Serbia within regular yearly statistical reports on S&T activities in Serbia, and using methodology proposed in Frascati Manual defined by the OECD.

of 52


In addition to competitive financing of R&D and Innovation projects, MSTD announced a plan for other investments in R&D in Serbia in the period 2010-2015: 1) Serbian R&D infrastructure investment initiative comprises investments in upgrading existing capacities, for adaptation of existing buildings and laboratories and new capital equipment for research (app. €70m); 2) Development of human capital, for programme of return of Serbian researchers from Diaspora, "Petnica" research centre and Mathematical high school campus buildings, and New Science and innovation centre in Belgrade (for popularizing science among the youth and public at large) (app. €33m); 3) Development of Excellence centre and academic research centres (app. €60m); 4) Development of ICT infrastructure, for Campus for faculties of technical sciences of the University in Belgrade and Infrastructure for supercomputing initiative "Blue Danube" (app. €30m to €80m); 5) Creation of a knowledge-based economy through the construction of science parks in Belgrade, Novi Sad, Nis and Kragujevac (app. €30m); 6) Basic infrastructure projects, such as Apartment buildings for researchers in Belgrade, Novi Sad, Nis and Kragujevac, and Infrastructure for the MSTD (app. €80m) (MSTD-Strategy, 2010).

2.2.2 Evolution of national policy mix geared towards the national R&D investment targets

A crucial challenge for research governance in Serbia is the question how to increase R&D and Innovation activities in Business Enterprise Sector (BES) in the country. Official figures showed that BERD share in GERD was only 9.1% in 2008, compared with 63.7% in EU. Recent official statistical R&D and Innovation surveys in Serbia support findings with a different situation in BES, i.e. investments in R&D and Innovation in this sector are comparable to those by the MSTD. Further investigations in revealing of real situation in R&D and Innovation investments in BES are needed.

Table 3: BERD as share of GDP and GERD in Serbia and EU27

Year 2004 2005 2006 2007 2008 Serbia: BERD/GDP (%) 0.046 0.050 0.052 0.016 0.065 EU (27 countries): BERD/GDP (%) 1.16 1.15 1.18 1.19 1.21 Serbia: BERD/GERD (%) 14.6% 11.6% 7.3% 2.6% 9.1% EU (27 countries): BERD/GERD (%) 63.7% 63.2% 63.8% 64.3% 63.7%


2.2.3 Providing qualified human resources Two demographic factors are a major warning for research governance in Serbia: According to the projection of the Republic Statistics Office, population of Serbia will decrease by about 2% every five years; in other words, in 2022 Serbia will have 6.3% fewer inhabitants than in 2010; additionally, the average age of the population is 40.25, classifying Serbia among countries with an old population. R&D personnel make 0.591% of the labour force in 2008, which is almost half of EU average 1.03%.

Table 4: Human resources in R&D in Serbia, 2008

Total personnel Researchers Supporting staff and Technicians

Administration and Others

FTE 17,373.8 9,978.2 5,096 2,299.6

of 52


Head Count 19,321 11,534 5,361 24,26


Gender structure of R&D personnel is in favour of women, although men are still in majority among researchers.

Table 5: Gender structure of human resources in R&D in Serbia and EU27

RS: Total personnel, 2008 RS: Total personnel - Women RS: Total personnel - Men 19321 51.24% 48.76%

RS: Researchers, 2008 RS: Researchers - Women RS: Researchers - Men 11534 47.16% 52.84%

EU27: Researchers, 2008 EU27: Researchers - Women EU27: Researchers - Men 2157838 32% 68%

Source: EUROSTAT and Statistical Office of the Republic of Serbia: statistical bulletin on S&T activities in Serbia in 2008

According to MSTD, one of the significant problems in preserving and strengthening the scientific community is the ongoing drain of highly educated individuals from the country. In the period 1990-2000, about 73.000 inhabitants left Serbia, and among them 17,000 had university degrees. This emigration trend continued after 2000, with some 50,000 people leaving, of whom about 2,000 were university graduated. The majority of the highly educated emigrants are from the area of engineering and technological studies and from the area of natural sciences. It is exactly for these reasons that a change has to be introduced in the HE policies, including the introduction of initiatives aimed at keeping the best graduates and researchers in the country, along with the adoption of a long-term plan for the return of scientists from the Diaspora. MSTD just launched the project which will engage Serbian Diaspora in joint projects, to transfer their knowledge and skills for the benefit of Serbian society, as well as to motivate the scientists to return to Serbia.

In parallel with MSTD actions to prevent brain-drain from country and attract Serbian Diaspora to cooperate with R&D community in Serbia, authorities in HE area are faced with decrease of interest of young people for studies in the area of natural sciences and engineering. Graduates in S&T in Serbia as share of 20-29 age population is 34.52%, much lower than in EU27 in 2007 (40.52%). Adoption of Bologna process as an obligatory mode for HE organisation in Serbia has been followed with changes in the education curricula which gradually include aspects such as creativity, critical thinking, problem solving, teamwork, and communication skills. Lectures on the entrepreneurship and innovation, although still very rare, are becoming increasingly present in universities, included in curricula for undergraduate and for master studies.

2.3 Knowledge demand In the domain of knowledge demand in the Republic of Serbia, the main activities are generated by the “Strategy of S&T Development of the Republic of Serbia 2010-2015” (MSTD-Strategy, 2010).

Table 6: Main policy instruments in the knowledge demand domain

Challenges Main Policy Instruments

of 52


Identifying the drivers of knowledge demand

“Strategy of S&T Development of the Republic of Serbia 2010-2015”

Co-ordinating and channelling knowledge demands

“Programme for the research cycle 2011-2014”

Monitoring demand fulfilment “Act on the selection, evaluation and financing of research for the project cycle 2011 – 2014”

The main and still the only knowledge demand driver in the Republic of Serbia is MSTD. This is the continuation of practice in Serbia in which science has been regarded and has been functioning much too long as an activity functioning exclusively through scientific-research projects financed by the MSTD. Certain incentives toward greater involvement of companies in R&D and innovation activities are initiated by the MSTD with proposal for partnership between R&D organisations and business sector. New Innovation law is the legal framework for public – private partnership in R&D and innovation, and “Strategy of Scientific and Technological Development of the Republic of Serbia 2010-2015” presents an action plan for realisation of such partnership.

Since 2001, international scientific and technological cooperation has become an additional knowledge driver with increasing importance, both in research and financial aspects. The basic programmes are the Seventh EU Framework Programme (FP7) (Serbia’s inclusion has started already with FP6), as well as COST, EUREKA, NATO SPS, including cooperation with the International Atomic Energy Agency (IAEA), and bilateral cooperation programmes.

Agriculture and energy are sectors of economy with the strongest support from government sources for R&D; a significant share of government budget is allocated for R&D activities addressed to industrial production and technology and protection and improvement of human health.

Table 7: Allocation of GBAORD to socio-economic objectives

Socio – economic objective Share of GBAORD in 2009 (%)6

Agriculture production and technology 11.94% Industrial production and technology 17.22% Production, distribution and rational utilisation of energy 8.88% Transport and telecommunications 2.22% Infrastructure and general planning of land use 0.51% Control and care of the environment 2.50% Protection and improvement of human health 5.93% Social structures and relationships 15.69% Exploration and exploitation of space 2.91% General university funds 32.11% Defence 0.10% Source: Statistical Office of the Republic of Serbia: statistical bulletin on S&T activities in Serbia in 2009

2.4 Knowledge production The production of scientific and technological knowledge is the core function that a research system must fulfil. While different aspects may be included in the analysis

6 Statistical Office of the Republic of Serbia: yearly statistical reports on S&T activities in Serbia, 2010.

of 52


of this function, the assessment provided in this section focuses on the following dimensions: quality of the knowledge production, the exploitability of the knowledge creation and policy measures aiming to improve the knowledge creation.

2.4.1 Quality and excellence of knowledge production Serbian budget allocations for science have grown significantly, from the modest sum of €28m in 2001, to about €100m in 2008. During that seven-year period, the salaries of researchers grew manifold, and almost €30m were invested in capital equipment for scientific research work (MSTD-Strategy, 2010).

According to the data of the Republic Statistics Office, in 2008 Serbia had 11,534 researchers in total, 8,800 of which were engaged in MSTD projects. The average age of the researchers was 44.3 years, which is above the average age of the population in country, pointing to the need for taking action to provide for and nurture young scientific researchers.

The Science Law, adopted by the parliament in 2005, promotes excellence in R&D work; imposing publishing of scientific articles in ISI referred scientific journals as a precondition for carrier advancement in R&D sector. A direct empirical consequence of such regulation is that the number of papers published in Serbia, which in the period from 2000 to 2004 increased slightly, however in 2004, and especially in the period from 2005 to 2007, there was a large increase in the number of publications. Thus, the figure of 927 scientific papers published in 2000, grew to 2.047 in 2007, with the upward trend continuing in 2008 when the number of scientific papers published was 2,558. From 2000-2003, Serbia was at the bottom of the list in Europe according to the number papers on the SCI list and according to the number of citations. In contrast, in the recent period - 2006, 2007, and 2008, Serbia managed to surpass certain countries in the region in terms of the number of papers (e.g., Bulgaria, Croatia). Following the Essential Science Indicators from Thomson Reuters, ScienceWatch.com has produced a listing of the scientists, institutions, countries, and journals that have achieved the highest percentage increase in total citations from the third bimonthly period of 2009 to the fourth bimonthly period of 2009 – that is, from June 2009 to August 2009. Serbia has achieved Rising Star status in multiple fields: Biology & Biochemistry, Chemistry, Clinical Medicine, Computer Science, Engineering, Materials Science, Mathematics, Neuroscience & Behaviour, Pharmacology & Toxicology, and Physics.

The number of patents registered by R&D organizations in the period from 2003-2009 was just 54; while in the period 2003-200 over 3,400 technical solutions were implemented in the field of technological development in Serbia. The relevant figures in the corporate sector were not remarkably better, with about 20 patents registered per year, while individuals registered more than 300 patents in the same period7. In view of such results, Serbia is at the very bottom of the list in Europe.

2.4.2 Policy aiming at improving the quality and excellence of knowledge production

In order to improve the quality and excellence of knowledge production, accreditation process for all organizations, institutions and companies intended to apply for government support for R&D activities is obligatory under the Science Law and

7 Intellectual Property Office of the Republic of Serbia and MSTD, combined data.

of 52


Innovation Law. There is no international benchmarking of R&D organisations so far. Process of advancement in scientific carrier is regulated by the Science law and by-laws, with rigorous implementation of criteria which are in favour of international publications (SCI list of scientific journals). In addition, ex-ante evaluation of all proposed projects and other R&D activities became practice within MSTD public calls. Allocation of national funding for R&D projects goes through international evaluation procedures, as combination of domestic and foreign peer review. Monitoring of on-going R&D activities, as well as ex-post and impact evaluations of R&D activities (co)funded by the MSTD, are still in conceptual phase, not implemented as regular practice. Latest call for proposals of national R&D projects, launched in 2010, encourage engagement of young researchers and Serbian scientific Diaspora. Trans-national cooperation in R&D is encouraged through financial support of domestic institutions and individuals engaged in international calls for funding of R&D activities launched through multilateral cooperation agreements, such as EU FP7, COST, EUREKA etc. as well as under bilateral cooperation agreements with a number of countries.

Table 8: Main policy instruments in the knowledge production domain

Challenges Main Policy Instruments Improving quality and excellence of knowledge production

The Science Law and Innovation Law with by-laws

Ensuring exploitability of knowledge production


2.5 Knowledge circulation Tackling the challenges that European society faces in the 21st century will require a multi-disciplinary approach and coordinated efforts. Many debates and conferences, e.g. the Lund Declaration recognise that such complex issues cannot be solved by single institutions, technology sectors or MS acting alone. Hence strong interactions within the "knowledge triangle" (education, research and innovation) should be promoted at all levels. Moreover, in the context of increasing globalisation, cross-border flows of knowledge are becoming increasingly important. This section provides an assessment of the actions at national level aiming to allow an efficient flow of knowledge between different R&D actors and across borders.

2.5.1 Knowledge circulation between the universities, PROs and business sectors

The main policy document addressing cooperation between universities, research and business is the new “Strategy of S&T Development of the Republic of Serbia 2010-2015”, literally expressed in the foreword by Božidar Djelić, Deputy Prime Minister and Minister of Science and Technological Development: ”The Strategy is guided by two basic principles: focus and partner. Focus through defining a list of national research priorities in which we (i.e. R&D system in Serbia) can and must make significant progress. Partner through strengthening ties with institutions and companies to allow Serbia to validate its ideas in the global market”. The Strategy presents an action plan for realisation of such partnership (MSTD-Strategy, 2010).

The rationalisation of the R&D institutes’ network, coupled with a closer cooperation with the universities with the view to enhance the quality of study programmes must

of 52


result in a favourable environment for R&D. Its results will contribute to the economic and social development of the Republic of Serbia (MSTD-Strategy, 2010).

Linkage between the education and science is one of the cornerstones for implementation of the Strategy. R&D institutes and faculties have to be integrated into one science-educational system. For the sake of integration of science institutes into the educational and scientific process at the university, the institutes should be allowed to become equitable members of the university, provided they meet the accreditation criteria for doctoral studies. In that way the Institutes would acquire the independent status or in cooperation with other university units, organise doctoral studies and become places where the doctoral dissertations could be prepared. Universities and their units (faculties, departments) could become founders of science institutes, science and research centres (with or without the status of legal person), defined in the Statutes of the University (MSTD-Strategy, 2010).

The MSTD has implemented “Law on innovative activities” and the “Law on intellectual property rights” in order to create a mechanism for more intensive linkage of science, research and innovation with economy. The laws are stipulating among others things: Strategic changes to the method of funding, partly oriented to the entities in the economic sector as the proponents of innovation projects; Regulation of intellectual property rights protection, a pressing issue, under the joint projects between corporate sector and scientific and research organisations, and partly financed by MSTD, that is the investment fund in the majority state ownership. The provisions on the intellectual property rights shall be fully harmonized with the international practice according to which the owner of so created intellectual property is both the employer and the client who contracted the work. On such occasion MSTD would issue the document prescribing publicity and confidentiality of information relative to the realization of the innovation project, and how mutual relations are regulated among the project participants, in terms of intellectual property rights and respective financial compensation in the case of commercialization of an intellectual right. Considerable part of income would go to the innovators (not less than 30%) and institution (no less than 20%); Formation of joint investment funds for financing the projects. Through the future Action plan under this Strategy and in cooperation with the Ministry of finance, taxation and budgetary incentives for investment into science and research shall be stipulated. The proposals of MSTD are as follows: The investment by corporations into the projects involving science research organizations, which are co-financed by MSTD shall be free of corporate profit tax (recognized as a cost): Employment of the young researchers registered in the projects of MSTD in the private sector enables the private sector to pay salaries for two years free of contributions and taxes (payable by the employer); If the enterprise chooses to fund an employee’s doctoral studies MSTD would bear up to one half of the costs; Young researcher registered in MSTD, who would incorporate their own enterprise would be exempt from paying income and profit tax up to the age of 30. After that, they will be transitioned to standard progressive taxation within 5 years; MSTD would cover the costs of patent applications and other forms of protection of intellectual property for projects co-financed by MSTD (MSTD-Strategy, 2010).

For the projects directly related to the developing or bringing to market products, processes and services, in areas that have been marked as priorities by the Strategy a special Innovation Fund is in process of formation on a public-private basis between direct and indirect beneficiaries of the budget, public enterprises, international financial institutions, banks, private commercial companies and others.

of 52


The Fund would be established under the law governing incorporation and operation of investment funds, with majority state founding equity. A special rulebook would define the operations of the Fund, its financing, allocation of assets, procedures for selection of projects, form of contracts with the beneficiaries, etc. The Fund would define its framework for proposal of the projects aimed at the development of products, processes and services for the market. Such a framework must be adjusted to the policies and priorities of technological development defined by MSTR and the Government. The Fund would approve criteria, under the specific rulebook for evaluation and financing of the project. In such a way the fund for development of innovation would enable direct financing of private companies who are capable of implementing a project for development of products, processes or services, by selecting the competent science research organization. Based on the criteria and evaluation procedures approved, the Fund shall select the best projects carried by R&D organisation or a company with which it will sign a contract defining in detail their mutual obligations. Additionally, the contract would regulate the right to the protection of intellectual property, ownership and of the participants (MSTD-Strategy, 2010).

Table 9: Main policy instruments in the knowledge circulation domain

Challenges Main Policy Instruments Facilitating knowledge circulation between university, PRO and business sectors


Profiting from access to international knowledge


Absorptive capacity of knowledge users The Science Law; Innovation Law with by-laws; The High Education Law

2.5.2 Cross-border knowledge circulation In the period from 2001 to 2009, Serbian researchers accomplished encouraging initial results in the domain of international scientific and technological cooperation. The basic programmes through which this was implemented were the Sixth and the Seventh EU Programmes, as well as COST, EUREKA, NATO SPS, including cooperation with the International Atomic Energy Agency (IAEA), and bilateral cooperation programmes.

On the basis of the Memorandum of Understanding signed by the Republic of Serbia regarding its Association with the EU FP7, Serbia obtained the status of Associated Country on June 13, 2007. That status provides an opportunity for Serbian researchers to participate in practically all priority areas, and to engage in project coordination, but also the possibility of influencing research policy through the involvement of Serbian experts in different programme committees of the FP7.

The first results of the participation in 2007 were encouraging, especially those achieved at the regional level. Thus, Serbian science institutions took part as coordinators in 7 of the 11 projects funded under the regional call for tenders focusing on research infrastructural enhancement, ''Research Potential 3rd call' (RegPot-3), as well as participating in the realization of 3 of the 4 remaining projects.

Statistical data for the first two years of the programme (by the end of July 2009) shows that 822 researcher groups / partner organizations from Serbia participated in the preparation of 663 projects applications. Of that number, 77 projects involving 95 research groups/organizations from Serbia were granted funding.

of 52


The average success percentage of Serbian researchers at the level of 12.6% is encouraging and close to the success achieved by new EU members, such as Bulgaria and Romania. Still, this percentage is lower than the European average which is 21.8% and it is also lower than the average for the FP7 associated countries that we belong to, where the average is 20.8%.

It must be emphasized that Serbian institutions also carried out two coordinating functions within the framework of the Cooperation Programme, at the level of consortia in the field of ITC (Faculty of Electrical Engineering, Belgrade) and nanosciences, nanotechnology of materials and new technologies (The Institute of Physics, Belgrade). The funds stipulated on the basis of the total number of successful applications in the first two years of implementation of the Seventh Framework Programme amount to €15.19m.

Encouraging initial results were also achieved in other international programmes, such as: COST – Serbia (FR of Yugoslavia) became a full member in June 2001. Currently, Serbian research teams participate in 101 COST actions, and are the coordinator of one action (in the area of materials, physics and nanoscience); EUREKA – Serbia has been a full member of EUREKA since 2002. Serbian researchers and businessmen currently participate in the implementation of 36 EUREKA projects the total budget of which is €15.3m; NATO Science for Peace and Security – on July 27, 2007 the Republic of Serbia signed a Presentation Document concerning the participation of the Republic of Serbia in the Partnership for Peace Programme committing itself to cooperation frameworks with NATO in the field of S&T. Serbian researchers joined the programme late in 2007 and the results achieved so far have been reflected in the implementation of eight projects; Cooperation programme with the International Atomic Energy Agency (IAEA) over the past several years developed primarily through technical assistance programmes involving equipment, expert knowledge and training courses, as well as through regional and interregional activities. Technical cooperation was mainly focused on programmes for decommissioning a research nuclear reactor and radioactive waste management, however it also involved nuclear and radiation security, radiation medicine and health, and nuclear and radio-chemical application of isotopes in hydrology, agriculture and industry; Cooperation with UNESCO is based on UNESCO’s support for organizing major international conferences on topics of global interest for the international community, support for maintaining regional cooperation networks between research teams that work in a specific area of basic research and expertise in science policy issues and the creation of strategic documents.

In addition to multilateral cooperation programmes, numbers of bilateral cooperation programmes are established: currently, programmes are being implemented in collaboration with Slovenia, Croatia, France, Slovakia, Germany, and Switzerland. In the near future cooperation will be launched with Hungary, Greece (new cycle), China and India, while a framework agreement has been achieved with several other countries and the relevant procedures are underway (Austria, the Czech Republic, Portugal, Spain, Russia, USA).

In addition to the cooperation programmes, Serbia has actively participated in European and international scientific organisations such as CERN (European Nuclear Research Centre) where Serbian physicists and engineers made a notable contribution despite the fact that Serbia is not a member of that organisation. For that reason, Serbia filed an official application for membership in CERN, in March 2009. In November 2008, Serbia joined the membership of the Partnership for Advanced

of 52


Computing in Europe. Serbia’s membership in leading international organisations of this kind is one of the key factors in the development of its international cooperation.

Since the MSTD is the focal point for the above programmes it is also responsible for the adoption and implementation of measures meant to facilitate a broader inclusion and higher competitiveness of Serbian research groups, including groups in innovative companies and corporations. These measures are being implemented through the cooperation of the associates in the Sector for International Cooperation and European Integrations MSTD, national contact person’s network for the FP7 (formed towards the end of 2006) and the Consultative Bureau for International Projects (formed in March 2008).

Regardless of the aforementioned encouraging results achieved in the period since 2001, what has been noted with respect to the FP7 is still a very modest participation of Serbian scientific-research, innovative and corporate organizations. Estimates are that less than 20% of Serbian researchers have been involved in European projects.

Serbia has not yet managed to attract significant international technology companies who would be ready to realize a part of their development programmes in Serbia by investing in the existing research capacities or by creating new ones. The FP7 can be a catalyst for this cooperation, facilitating it by joint participation in project consortia. Government measures in the form of tax and budget subsidies focused on attracting technological companies are of extreme importance to attract FDI in R&D.

Positive examples of FDI in R&D do exist, but are positively scarce. Microsoft, the global leader among high-tech companies, and at the same time a leader in investing in R&D (€5.58b in 2007) opened one of its five development centres outside the USA in Serbia (Microsoft Development Centre Serbia started in 2005). Also, Siemens acquired a team of local engineers and over time extended its development capacities in Serbia. Several local institutions and companies have successful cooperation programmes with international leaders (the Faculty of Electrical Engineering in Belgrade, “Mihajlo Pupin" Institute, Institute for Crop and Vegetable Growing and others). However, this is still a very small portion of their total operations.

2.5.3 Main societal challenges The international S&T cooperation will be implemented in-line with the Strategy and identified priorities. In the FP7 the MSTD will pursue the policy of substantive promotion and imposition of topics of interest under the Strategy and its future implementation. This will be accomplished through science members/experts delegated to play an active role within programme committees for different areas of FP7 and within other advisory committees of the European Commission. The MSTD will continue its active role in timely dissemination and organization of info days, training courses and workshops to get, as soon as possible, a broader and qualitative participation of domestic R&D organisations in the programmes of international cooperation. Also, in cooperation with the Serbian Chamber of Commerce and other relevant ministries, the MSTD will support with its own activities the broader integration of segments of the Serbian economy with different international programmes (particularly the FP7) open to them. Thanks to the realization of certain number of projects, centres of excellence were formed in some R&D organizations. These centres are expected to become hotspots of future development, both in terms of recognition of such excellence by the European institutions and further mutual cooperation within the FP7 and subsequent FP, and in terms of attracting foreign

of 52


technological companies and realization of parts of their development programmes in Serbian R&D organisations. Of no lesser importance, the institutions which by participating in the framework programmes advanced their resources in terms of infrastructure and human capital are expected to provide support for the Serbian economy, specifically by helping innovative small and medium companies in their programme development. For priority areas where the number of FP7 projects is small or the success low (health care, environment) special corrective action plans will be made.

2.6 Overall assessment The overall assessment of present strengths and opportunities of R&D system in Serbia is that there is strong political support for improvement of conditions for R&D and innovation activities in the country, as well as a more focused approach in the governance of R&D resources with integration of all possible partners in creation of national innovation system as a recognized target.

Table 10: Summary of main policy related opportunities and risks

Domain Main policy opportunities Main policy-related risks

Resource mobilisation

• Strong political support for improvement of conditions for R&D and innovation activities in Serbia could provide significant increase in financing;

• Long term experience in managing R&D policy programmes may enhance efficiency of national research policy for achieving strategic objectives.

• Prolongation of the economic crisis could reduce the opportunity for increase of GERD;

• Legal barriers could inhibit cooperation between business sector and public R&D sector;

• Decades-long low share of business sector R&D personnel both in total number of R&D personnel in country and in total number of employees in the business sector could reduce capacities for effective use of proclaimed increase of future R&D investments in the long run.

Knowledge demand

• Better coordination between the ministries responsible for S&T economy and higher education could integrate limited resources and focus on strategic objectives of economy and society.


• The evaluation of knowledge demand is on low level.

Knowledge production

• Recognition of resources and capacities of business enterprise R&D sector and integration with public R&D organisations could strengthen overall R&D and innovation system in Serbia.

• Still present linear model of governance of the R&D and innovation system in the country;


Knowledge circulation

• Increase of Serbian FP participation provides an opportunity for knowledge circulation;

• Growing number of financial as well as

• Policy instruments for knowledge circulation promotion could have limited effects on knowledge circulation because of insufficient integration of

of 52


policy instruments aimed at improving knowledge commercialization.

business sector and public R&D sector.

The attractiveness of R&D system in Serbia for private investments in R&D is not big enough because of the present structure and capacities of public R&D system. Restructuring of public R&D system and integration of business enterprise R&D sector into national innovation system is the strategic orientation of government as articulated in a Strategy for S&T development of the Republic of Serbia until 2015.

Table 11: Main barriers to R&D investments and respective policy opportunities and risks

Barriers to R&D investment Opportunities and Risks generated by the policy mix

Insufficient visibility of R&D capacities in business enterprise sector.

Strong policy support for creation of national innovation system.

Legal barriers to companies to apply for public funds for R&D and innovation activities.

Fast growing investments in building of innovation infrastructure.

Legal framework for risk and venture capital investments in R&D and innovation activities is not transparent enough and fully adapted to the “rules of game” in market economy.

Nation-wide increase of technology based spin-offs and spin-outs in universities and public institutes.

Strong orientation of R&D community, supported by the Science law and criteria for advancement in research carrier toward scientific publications, rather than technology development and innovation.

Along with creation of better environment for R&D investments abroad in general, there is strong policy orientation and support for inclusion of Serbian economic and scientific diasporas in knowledge based development of economy and society in Serbia.

3 Interactions between national policies and the European Research Area

3.1 Towards a European labour market for researchers The Communication Better careers and more mobility: A European Partnership for Researchers proposed by EC in May 2008 aims to accelerate progress in four key areas:

• Open recruitment and portability of grants;

• Meeting the social security and supplementary pension needs of mobile researchers;

• Providing attractive employment and working conditions;

• Enhancing the training, skills and experience of researchers

The Commission has also launched concrete initiatives, such as dedicated information services for researchers, in particular through the activities grouped under the name of EURAXESS – Researchers in Motion. Based on the assessment of the national situation in the four key dimensions detailed above, this section will conclude if national policy efforts are supporting a balanced ‘brain circulation’, with outward mobility levels matching inward mobility levels. High levels of outward mobility coupled with low levels of inward mobility often signal an unattractive national labour market for researchers and unsuitable research infrastructures. This

of 52

http://ec.europa.eu/euraxess/pdf/comm_pdf_com_2008_0317_f_en_communication.pdf

http://ec.europa.eu/euraxess/pdf/comm_pdf_com_2008_0317_f_en_communication.pdf

http://ec.europa.eu/euraxess/index_en.cfm


may trigger, despite the policy efforts supporting the mobility the ‘brain drain’ rather than brain circulation.

3.1.1 Stocks and mobility flows of researchers Number of researchers in Serbia is changing from year to year, due to permanent brain drain and incentives for higher employment addressed to fight emigration of researchers from Serbia abroad. Recent world economic and financial crisis is just one among number of factors that cause brain drain from research sector. Employment of researchers in Serbia is relatively small with only 0.16% of population employed in this sector, which is only 31.1% of share of population in EU Member Countries employed in R&D sector in 2008.

Table 12: Researchers, by sectors of performance, EU and Serbia

Researchers, by sectors of performance, Head count Res. total

Change (%)

Res. GOVS Res. BES Res. HES Res. PNP

Serbia, 2006 12,079 104.57% 2,720 457 8,902

Serbia, 2007 10,580 87.59% 2,292 156 8,115 17

Serbia, 2008 11,534 109.02% 2,738 372 8,412 12

Researchers, by sectors of performance, FTE Res. total

Change (%)

Res. GOVS Res. BES Res. HES Res. PNP

Serbia, 2006 9,112 106.05% 2,720 457 5,935

Serbia, 2007 8,806.1 96.65% 2,240.4 108.1 6,440.7 17.0

Serbia, 2008 9,978.2 113.31% 2,675.5 306.9 6,990.2 5.6


Overall gender structure of employment in R&D sector is balanced, with 47.14% of women researchers, although women in business (43.82%) and high education sector (45.03%) are less present in comparison with gender structure of researchers in government laboratories and institutes (54.05%).

Ageing of the research population could become an issue with more than a half of researchers aged between 35 and 54 years (56.01%).

Table 13: Researchers, by sectors of performance, EU and Serbia

Researchers, by sectors of performance, Head

count Res. total Res.

GOVS Res. BES

Res. HES

Res. PNP Population Res/Pop

EU (27 countries), 2006 2,106,542 750,710 223,764 1,108,730 23,337 492,996,266 0.43%

EU (27 countries), 2007 2,157,838 764,267 227,183 1,143,399 22,990 49,5291,931 0.44%

Index 2007/2006 (EU) 2.4% 1.8% 1.5% 3.1% -1.5% 0.5% 102.0%

EU (27 countries), 2006 100.0% 35.6% 10.6% 52.6% 1.1%

EU (27 countries), 2007 100.0% 35.4% 10.5% 53.0% 1.1%

Serbia, 2007 10,580 2,292 156 8,115 17 7,397,651 0.14%

Serbia, 2008 11,534 2,738 372 8,412 12 7,365,507 0.16%

Index 2008/2007 (Serbia) 9.0% 19.5% 138.5% 3.7% -29.4% -0.4% 109.5%

Serbia, 2007 100.0% 21.7% 1.5% 76.7% 0.2%

Serbia, 2008 100.0% 23.7% 3.2% 72.9% 0.1%

Researchers, by sectors of performance, FTE Res. total

Res. GOVS

Res. BES

Res. HES

Res. PNP Population Res/Pop

EU (27 countries), 2007 1,448,337 664,353 186,408 580,854 16,721 49,529,1931 0.29%

of 52


EU (27 countries), 2008 1,504,575 689,867 188,391 608,649 17,667 497,683,272 0.30%

Index 2008/2007 (EU) 3.9% 3.8% 1.1% 4.8% 5.7% 0.5% 103.4%

EU (27 countries), 2007 100.0% 45.9% 12.9% 40.1% 1.2%

EU (27 countries), 2008 100.0% 45.9% 12.5% 40.5% 1.2%

Serbia, 2007 8,806.1 2,240.35 108.1 6,440.65 17 7,397,651 0.12%

Serbia, 2008 9,978.2 2,675.5 306.9 6,990.2 5.6 7,365,507 0.14%

Index 2008/2007 (Serbia) 13.3% 19.4% 183.9% 8.5% -67.1% -0.4% 113.8%

Serbia, 2007 100.0% 25.4% 1.2% 73.1% 0.2%

Serbia, 2008 100.0% 26.8% 3.1% 70.1% 0.1%


Table 14: Researchers in Serbia, 2008

Researchers Researchers Researchers Researchers

Total women Total women

Republic of Serbia – overall system 11,534 5,439 100.00% 47.16% Age between 25 and 34 years 2,380 1,297 20.63% 11.25%

Age between 35 and 44 years 3,621 1,790 31.39% 15.52%


Age between 55 and 64 years 2,357 990 20.44% 8.58%

Business Enterprise Sector 372 163 100.00% 43.82% Age between 25 and 34 years 134 61 36.02% 16.40%

Age between 35 and 44 years 128 58 34.41% 15.59%



Government Sector 2,738 1,480 100.00% 54.05% Age between 25 and 34 years 801 479 29.25% 17.49%




High Education Sector 8,412 3,788 100.00% 45.03% Age between 25 and 34 years 1,462 760 17.38% 9.03%




Private Non Profit Sector 12 8 100.00% 66.67% Age between 25 and 34 years 4 4 33.33% 33.33%



Age between 55 and 64 years 2 0 16.67% 0.00% Source: Statistical Office of the Republic of Serbia: statistical bulletin on S&T activities in Serbia in 2008

In the last decade of the twentieth century, Serbian social and economic life has produced a new wave of emigration especially highly skilled workers. During the 1990-2000 period the number of citizens who emigrated from Serbia to overseas countries amounted to 73,000, of which over 17,000 were with university qualifications. Taking into consideration Europe as well as other parts of the world

of 52


the exodus of citizens holding university degrees is probably over 30,000. The brain drain of 30,000 professionals emigrated from Serbia during the last decade of the 20th century, whose education cost $300,000 each, and then this makes a loss of about $9b (MSTD-Strategy, 2010). The brain drain continued after 2000. It is assessed that 50,000 people emigrated, 2000 of which are highly educated.

MSTD has recently launched a programme which will engage Serbian scientific Diaspora in joint projects and other initiatives, to transfer their knowledge and skills for the benefit of Serbian society, as well as to motivate the scientists to return to Serbia. The programme includes activities: (a) Motivating Serbian Diaspora for R&D: Such a financial package may include relocation expenses, cost of specific lab equipment, if any, studentships / fellowships for the accompanying scholars, and appropriate award money. The scientific institutions within Serbia will host the potential recipients of the awards and extend necessary infrastructural facilities in areas that are of high priority for economic development of Serbia. The award recipients may be given temporary appointments and an opportunity to develop an institute in the area of their excellence; (b) Setting up of a Network of Serbian Scientific Diaspora: The MSTD will jointly launch this network to link the Serbian scientists around the world; (c) Short-term Visits of Eminent Serbian scientists from Diaspora to Serbia (including trainings, lectures. etc., in Serbian research institutions); (d) Attracting scientists from Diaspora to launch start-up companies. Return of these scientists to set up start up units can be encouraged by offering a set of special incentives, which could include tax breaks, reduction of levies and duties on their products, availability of business space at reduced rates, etc. Strategic areas to be supported through the project would include life sciences, information technology, new materials and structures, and specific areas of special priority will be announced by MSTD based on national priorities (MSTD-Strategy, 2010).

3.1.2 Providing attractive employment and working conditions Carrier advancement in R&D sector is strictly regulated by the Science law and by-laws (MSTD-Science Law, 2010). There are four possible positions for researchers: (a) starting positions are research-apprentice and research associate; (b) scientific associate; (c) senior scientific associate; (d) scientific counsellor. Procedure for advancement is defined by the law, and certification of this procedure is under jurisdiction of MSTD, i.e. scientific position is granted only by MSTD decision! The first three positions are just temporary positions; only the fourth position is permanent, with the same consequence for working position of researchers and scientist in government laboratories and public institutes. There is full equivalence between research and scientific positions and positions in high education which are defined by the High Education Law: (a) assistant is equal to research associate; (b) docent is equal to scientific associate; (c) associate professor is equal to senior scientific associate; (d) full professor is equal to scientific counsellor position. There is no similar equivalence in the HE Law for scientific positions in HE institutions.

Official R&D statistics provide data on structure of GERD with 51.7% spent on gross salaries, 39.8% on material costs, and only 8.5% on investments in capital equipment in 2009. According to labour statistics, average salaries in R&D sector in 2009 are: gross RSD 73,921 and net RSD 52,731; compared to salaries in total economy this is 167.4% of average gross salaries and 166.2% of average net salaries in Serbia in 2009. Nevertheless, unofficial information and surveys of public opinion about attractiveness of employment in R&D sector in Serbia could provide a basis for assessment of the present situation which is not in favour of Serbian researchers

of 52


who are paid 20-50% gross salaries less than researchers in Slovakia, Czech Republic and Hungary. In addition, there is a significant difference in salaries between researchers with equal scientific degrees and positions in Serbia. Therefore, proposal for a new law on salaries in public services which is in ongoing process with support of experts from World Bank will include regulations for remuneration in R&D sector. Besides emigration of researchers from Serbia because of small salaries, there is a professional shift to other national, more attractive sectors; particularly researchers in the area of ICT’s are under permanent country wide offers to replace their academic career with a better paid job in ICT business in Serbia.

Salaries for researchers in government laboratories and public institutes are defined by their organisations. There is a suggestion by the MSTD that a minimum level of wages for researchers and scientists cannot be less than the amount of money which is paid for realisation of R&D projects, financed by the MSTD. There are fixed amounts for monthly payment of researchers and scientists in government laboratories and public institutes, as well as for research staff at the universities and faculties, defined by the MSTD, which are based on estimates according to different research and scientific positions, and modified according to quality and quantity of scientific results and achievements. Universities and research institutes are fully independent to determine salaries of academic staff, still having in mind above mentioned suggestion by the MSTD concerning a minimum level of wages for researchers and scientist. The present situation in the country is that for the same research and scientific positions the difference in salaries could exceed 100% due to eventual additional engagements and projects and different treatment of R&D staff in public R&D organisations, even in the same S&T field. In addition, payment for R&D activities for academic staff at public universities is in practice separated from the regular salaries, which are defined and financed by the Ministry in charge of High Education. Money paid by the MSTD for R&D activities is distributed to university staff as an extra income, agreed with university staff as second wage from public budget. This could be, partly, explanation for intervention from World Bank experts for proposing a new law on salaries in public services and inclusion of salaries in R&D sector in this law as well.

The European Charter for Researchers and a Code of Conduct for the Recruitment of Researchers are practically unknown in R&D community in Serbia.

There is no special regulation for career breaks (i.e. parental leave) in the R&D sector, and this is equal for all employees in public sector. Restoration of the same position is guaranteed by the law, and fixed-term contract must be extended due to maternity leave. There are no targets or quotas for women in science in Serbia. There are many women association in Serbia, but rare in the field of S&T. The Association of Business Women from Belgrade is an NGO with many scientists’ members as well as entrepreneurs. In 2007, a new prize for the best women’s team within the contest for ‘The best technology innovation in Serbia’ was awarded. “Mileva Marić Einstein” is an association for researchers in women studies (EC-“Benchmarking policy measures for gender equality in science”, 2008).

3.1.3 Open recruitment and portability of grants Practically, researchers and scientists in government laboratories and institutes are treated as civil servants, whose positions and a significant share (or the total amount) of income is regulated by Science law. Nationality of researchers and scientists is not mentioned at all within Science law. The same holds for recruitment and competition

of 52


procedures for all applicants for permanent positions in public universities and public research institutes. Still, there are measures which have to be taken in order to facilitate and adapt process of recognition of professional qualifications which facilitate the equivalence/validation of foreign academic degrees and hence support international applications for posts within national R&D system. These measures include changes in High Education Law, concerning process of validation of diplomas granted abroad, as well as changes in Science Law which will introduce procedures for recognition of academic qualifications granted abroad.

Serbia is in a position to create an environment attractive enough to preserve own human resources in R&D sector, and attract Serbian scientific Diaspora to cooperate with domestic teams and institutions. Therefore, international advertising of research vacancies supported by public funds is not and will not be an issue, at least not in near future. A more serious issue for R&D sector in Serbia is internal mobility, i.e. transfer of researchers who are awarded a national research grant to another national institution, and emigration from Serbia to a foreign institution. The first case could be solved under agreement which should be achieved between both R&D organisation and MSTD as financing and governing body. The second situation, emigration, will immediately cause cancellation of funding and, eventually, cancellation of R&D activity granted by the MSTD.

3.1.4 Meeting the social security and supplementary pension needs of mobile researchers

Social security, pension, health and other taxes in the R&D sector are regulated within laws which regulate such rights and obligations for public services in Serbia.

There are no specific regulations to facilitate the integration of foreign researchers in the national research labour market, such as social security access, health insurance, compatibility of pension schemes in Serbia. Also, there are no tax incentives to facilitate the participation in supplementary pension schemes. Considering the researchers' status, their contracts/fellowships are subject to social and health taxes as all other business contracts in Serbia. There are no specific regulations for EU citizens/ researchers to be distinguished from the rest of the world.

3.1.5 Enhancing the training, skills and experience of European researchers

There is an increasing number of national doctoral programmes prepared in collaboration with other universities, jointly with the introduction of English as a spoken language in PhD and Master degree courses, aiming at a greater degree of standardization of national PhD and Master degree programmes with those in EU. Domestic researchers are motivated to apply and join TEMPUS and other EU sponsored programmes and schemes that support curriculum development.

3.2 Research infrastructures Research infrastructures (RIs) are a key instrument in the creation of new knowledge and, by implication, innovation, in bringing together a wide diversity of stakeholders, helping to create a new research environment in which researchers have shared access to scientific facilities. Recently, most EU countries have begun to identify their future national RI needs, budgets and priorities in the so called National Roadmaps for Research Infrastructures. These strategic documents also set out a

of 52


strategic view on how to guarantee and maintain access to research facilities. Although some countries invest heavily in RIs, none can provide all the required state-of-the-art facilities on a national basis. Several large RIs have already been created in Europe. While optimising the use and development of existing RIs remains important, new infrastructures are needed to respond to the latest research needs and challenges. European Strategic Forum for Research Infrastructures (ESFRI) was established in April 2002 to support a coherent approach to policy-making on RIs in Europe and to act as an incubator for international negotiations on concrete initiatives. This section assesses the research infrastructures national landscape, focusing on the national RI roadmap and national participation in ESFRI.

3.2.1 National Research Infrastructures roadmap Selected existing Research infrastructures (RIs) in Serbia

Identification of large scale R&D infrastructures in Western Balkan Countries is recently (in 2009) conducted within WBC-INCO.NET project, financed within EU FP7 programme. Selected Research infrastructures (RIs) in Serbia are: (1) Biomedical and Life Sciences: GMP in Pharma industry, University of Belgrade, Faculty of Chemical Engineering; Research infrastructure in the field of agriculture; Research facilities and equipment for research in the field of medical sciences; Research Facilities for Microscopy, University of Belgrade, Faculty of Biology; Infrastructure for the research on the field of food technology, Institute for Food Technology Novi Sad; (2) Environmental Sciences: Geochemical characterization of solid pollutant material; Faculty of Mining and Geology University of Belgrade; (3) Materials Sciences: Nanoscience research infrastructure; Faculty of Physics, University of Belgrade; Centre for Integrated Microsystems and Components, Faculty of Technical Sciences, University of Novi Sad; (9) Multidisciplinary R&D: ICT, Material Sciences, Social Sciences; S&T policy, Institute Mihajlo Pupin [WBC-INCO.NET, 2009].

Research infrastructure roadmap

In 2009, the MSTD was financing 501 projects in the area of basic research for which the amount allocated equals 50.2% of the total budget. The MSTD also finances 471 projects in the area of applied research for which the sum allocated amounts to 39.2% of the budget of the MSTD. Practically 80% of the funds intended for science projects are actually salaries for researchers, while only 20% funds the costs of experiments and the like. Although equipment worth €27m has been procured thanks to National Investment Programme funds, following a period of twenty years of no investments in equipment, it often happens that the lack of resources for everyday functioning leads to a situation where that equipment is not used to its full capacity, or at all in some cases.

One of priorities defined in new S&T Strategy in Serbia is development of supercomputing capacities and IT infrastructure. In November 2008, Serbia became member of PRACE- Partnership for Advanced Computing in Europe. By applying the concept of grid computing capable of orchestrated performance it is possible to build a special computing network – so called "NIONET" programme that would include many computers from most of the R&D organizations in Serbia. A long term NIONET programme will be strategic and enable further advancement of the computing grid for the R&D community (academic network) (MSTD-Strategy, 2010).

Serbian R&D infrastructure investment initiative is part of new S&T Strategy in Serbia. The main sources of financing of the infrastructural projects which

of 52

http://ec.europa.eu/research/infrastructures/index_en.cfm?pg=esfri


demonstrate and enable development of priority research fields in the next five years will be international financial institutions, and particularly the European Investment Bank, European Bank of Reconstruction and Development, the World Bank, Development Bank of the Council of Europe and various international donors, specifically EU pre-accession funds. The Project of infrastructural investments, worth €400m will start in January 2011 and last until the end of 2015. Projects selected for this investment were those conducive to the development of priority disciplines, likely to ensure successful development and identification of scientific talent, prevent brain drain, and finally, projects which will make up for almost twenty years of scarce investment into scientific infrastructure. Main projects within the “Serbian R&D infrastructure investment initiative” are (MSTD-Strategy, 2010): (1) Upgrading existing capacities (app. €70m); (2) Adaptation of existing buildings and laboratories; (3) New capital equipment for research: within the procurement of new capital equipment for research; (4) Development of Excellence centre and academic research centres (app. €60m); (5) Development of ICT infrastructure (between €30m to €80m); (6) Campus for faculties of technical sciences of the University in Belgrade; (7) Infrastructure for supercomputing initiative "Blue Danube"; (8) Creation of a knowledge-based economy through the construction of science parks in Belgrade, Novi Sad, Niš and Kragujevac (app. €30m); (9) Basic infrastructure projects (app. €80m).

In addition to these initiatives, special programme for development of human capital in Serbia is defined (app. €33m) with four main investment activities (MSTD-Strategy, 2010): (1) Human resources programme (programme of return of Serbian researchers from Diaspora). One of the projects is to have the researchers back for a period of time is to provide them with working conditions, means, necessary equipment and adequate accommodation. The networking of researchers in Serbia with their colleagues in Diaspora has also been planned, along with visits of the eminent Serbian researchers and incentives for researchers in the Diaspora to establish own enterprises in Serbia; (2) The "Petnica" research centre is a unique institution with a history of 26 years and about 14,000 young trainees, many of whom are proponents of R&D in Serbia today. In the next three years the works on additional capacities of "Petnica" should be completed for both accommodation and modern laboratories (app. €7.6m); (2) Mathematical high school campus; (4) New Science and innovation centre in Belgrade (for popularizing science among the youth and public at large): one of the core projects within the initiative to build a new scientific infrastructure is the Centre for promotion and popularization of science in Belgrade (app. €20m).

3.2.2 National participation in the ESFRI roadmap “Serbian R&D infrastructure investment initiative” is national R&D infrastructure roadmap, prepared in communication with ESFRI, following country membership status in this EU R&D infrastructure initiative.

3.3 Strengthening research institutions The ERA green paper highlights the importance of excellent research institutions engaged in effective public-private cooperation and partnerships, forming the core of research and innovation 'clusters', mostly specialised in interdisciplinary areas and attracting a critical mass of human and financial resources. The Universities/ research institutions should be embedded in the social and economic life where they

of 52

ftp://ftp.cordis.europa.eu/pub/esfri/docs/esfri-roadmap-report-26092006_en.pdf


are based, while competing and cooperating across Europe and beyond. This section gives an overview of the main features of the national higher education system, assessing its research performance, the level of academic autonomy achieved so far, dominant governing and funding models.

3.3.1 Quality of National Higher Education System The Law on Higher Education (LHE), which fully implements the Bologna Declaration in Serbia, came into effect on 10 September 2005. Within two months the Conference of Universities of Serbia and the Conference of Headmasters of Colleges were established. These conferences proposed the members of the National Council for Higher Education, which were approved by the Parliament of the Republic of Serbia. The National Council, in turn, under the proposal by the Conference of Universities of Serbia, elected members of the Accreditation and Quality Assurance Commission. The Council and the Commission started drafting the norms and standards, to enable the soonest possible accreditation of higher education institutions and curricula according to Bologna process. The Standards were approved on 20 October 2006, while in early December 2006 the Council and the Commission determined detailed procedure for accreditation and code of conduct of all the participants in the process. In compliance with the LHE and the adopted Standards, the accreditation of colleges, bound by the Law to enter first the accreditation process, started on 15 December 2006.

The total number of students in Serbia reached 3.2% of population in school year 2008/2009, with 62.69% of all students enrolled at public universities and 17.72% at public higher schools. Almost one fifth of all students are enrolled at private universities (16.56%) and private higher education schools (2.12%).

Table 15: Number of Faculties, accredited for school year 2008/2009

Number of Faculties

Republic of Serbia 184

Public universities 75

Private universities 51

Public higher schools 42

Private higher schools 16 Source: Statistical Office of the Republic of Serbia: Statistical yearbook 2010

Table 16: Students by universities, school year 2008/2009

Total Share of

population Total Budget

financedBudget

financed Self-

financed Self-

financed

Population, Serbia, 2008 = 7,365,507 All (%) Females All Females All Females

Republic of Serbia 235,940 3.203% 130,334 106,323 62,190 129,617 68,144

Public Universities 147,921 2.008% 86,319 90,497 53,821 57,424 32,498

Private Universities 39,071 0.530% 20,084 39,071 20,084

Public Higher Schools 41,801 0.568% 21,194 15,301 8,221 26,500 12,973

Private Higher Education Schools 5,007 0.068% 2,155 5,007 2,155

Source: Statistical Office of the Republic of Serbia: Statistical yearbook 2010

Social sciences, business activities and law studies are the most attractive fields of education, both in public and private high education institutions. Private high education institutions, although offering a number of educational fields, are mostly

of 52


oriented to social sciences, business activities and law studies, with 78.28% of all enrolled students, and only studies in IT (5.88%) and services (5.52%) attract some more students in private high education institutions

Table 17: Students by universities by fields of education, school year 2008/2009

EducationArts and

Humanities

Social sciences, Business and Law

Natural sciences,

Mathematics and IT

Technique, Production

and Construction

Republic of Serbia 14,589 23,965 94,576 22,648 33,397

Public Universities 10,413 19,498 48,515 15,242 23,587

Private Universities 350 2,362 30,583 2,296 349

Public Higher Schools 3,826 2,097 11,960 4,969 9,461

Private Higher Education Schools 0 8 3,461 141 0

Agriculture and

VeterinaryHealth and Social care Services Total

Share of population (%)

Republic of Serbia 8,021 20,524 18,220 235,940 3.203%

Public universities 6,476 16,029 8,161 147,921 2.008%

Private Universities 404 435 2,235 39,071 0.530%

Public Higher Schools 1,141 3,447 4,900 41,801 0.568%

Private Higher Education Schools 0 613 784 5,007 0.068% Source: Statistical Office of the Republic of Serbia: Statistical yearbook 2010

According to the last census, only 6.5% of total population in Serbia has graduated faculties, and 4.5% has completed higher schools, which makes only 11% of total population with a kind of tertiary education. Population with tertiary education in Serbia makes 12.447% of population aged 25-64, which is much less than EU average of 24.285% in 2008. The main result of functioning of High Education System in Serbia is number of graduate students, with 0.548% of all population in Serbia who achieved this level of education in 2008.

Table 18: Graduated students in Serbia, by fields of education, 2008

Education Arts and

Humanities

Social sciences,

Business and Law

Natural sciences,

Mathematics and IT


and Construction

Republic of Serbia 4,598 3,446 16,778 2,839 5,752

Public Universities 2,367 2,889 6,133 1,771 4,006

Private Universities 5 202 4,070 318 0

Public Higher Schools 2,226 355 2,985 714 1,746

Private Higher Education Schools

0 0 3,620 36 0

Agriculture and

Veterinary Health andSocial care Services Total

Share of population

(%) Republic of Serbia 1,121 3,310 2,486 40,330 0.548%

Public universities 845 2,033 731 20,775 0.282%

Private Universities 60 40 36 4,731 0.064%

Public Higher Schools 216 1,237 855 10,334 0.140%

Private Higher Education Schools

0 0 409 4,065 0.055%

of 52


Source: Statistical Office of the Republic of Serbia: Statistical yearbook 2010

Table 19: Graduated students in Serbia, 2008

Total Share of

population Total Budget

financed Budget

financed

All (%) Females All Females

Republic of Serbia 40,330 0.548% 24,512 18,712 11,787

Public Universities 20,775 0.236% 13,172 15,485 9,775

Private Universities 4,731 0.177% 2,559 25 16

Public Higher Schools 10,334 0.140% 6,877 2,815 1,852

Private Higher Education Schools 4,065 0.055% 1,739 6 3 Source: Statistical Office of the Republic of Serbia: Statistical yearbook 2010

Women are in majority as newly enrolled students, as well as in the total number of active and graduate students in Serbia.

Table 20: Newly enrolled students in academic studies in the first year of study in 2009/2010

Total Total Budget-funded

Budget-funded

Self-financing

Self-financing

All Females All Females All Females

Republic of Serbia 54,510 28,764 24,557 13,536 29,953 15,228

Public Universities 31,378 17,833 18,945 10,766 12,433 7,067

Private universities 7,258 3,438 - - 7,258 3,438

Public higher schools 14,080 6,797 5,612 2,770 8,468 4,027

Private higher schools 1,794 696 - - 1,794 696Source: Statistical Office of the Republic of Serbia: Statistical yearbook 2010

The main source for recruitment of new researchers and scientists are students who just have completed their postgraduate studies, such as specialisation, master and doctoral studies. There are 518 new doctors of arts/sciences in Serbia in 2008, a number which is not sufficient for the actual needs of R&D sector in Serbia.

Table 21: Specialists, Masters and Doctors of Sciences (Arts), 2008

Education Arts and

Humanities

Social sciences,

Business and Law

Natural sciences,

Mathematics and IT


and Construction

Specialists 14 1 7 2

Masters of (arts) sciences 49 275 562 210 157

Doctors of (arts) sciences 13 23 140 106 88

Agriculture and

Veterinary Health and Social care Services Total

Share of population

(%) Specialists 46 70 0.00095%

Masters of (arts) sciences 101 253 73 1,680 0.02281%

Doctors of (arts) sciences 31 99 18 518 0.00703% Source: Statistical Office of the Republic of Serbia: Statistical yearbook 2010

R&D activities in HES are mostly financed from the government budget (71.74% in 2008), with a small and decreasing share from the industry (only 3.54% in 2008), but with increasing importance and share of financing from abroad (11.27% in 2008). Financial sources from abroad are multilateral and bilateral S&T programmes, such

of 52


as FP7, CIP, etc. Changes in HERD year by year are a consequence of primarily contract based financing (R&D projects selected for financing under competitive bidding); there is no institutionally based financing of R&D activities in HES.

Table 22: HERD in Serbia, by source of financing and by year

Year HERD financed from BES

HERD financed from GS

HERD financed from other sources

HERD financed from abroad

HERD total (RSD)

2006 32.41% 58.68% 6.29% 2.62% 100.00%

2007 7.33% 68.30% 14.64% 9.73% 100.00%

2008 3.54% 71.74% 13.45% 11.27% 100.00%

Year GERD/GDP GOVS/GDP BES/GDP HERD/GDP HERD change year by year (%)

2006 0.710% 0.484% 0.052% 0.174% 111.01%

2007 0.634% 0.262% 0.016% 0.356% 238.50%

2008 0.715% 0.289% 0.065% 0.361% 119.92%

Source: Statistical Office of the Republic of Serbia: yearly statistical bulletins on S&T activities in Serbia

Although there is no official statistical data concerning participation of private faculties and private universities in R&D activities, both on national and international level, findings of specific surveys of R&D activities in HES suggest that most of the private HE institutions are so-called “teaching” faculties, with transmission of knowledge (teaching) as primary and only activity. Other two main missions which are traditionally held by universities: generation of new knowledge (research) and the 'third mission' (contribution to local or regional wealth and economic development) are mostly present in majority of public HE institutions.

Table 23: Human Resources in R&D sector, by sector of performance and by year: Total employment and Researchers

Year Employment totalEmployment total

- GOVS Employment total

- BES Employment total

- HES Employment total

- PNP 2007 18,153 6,074 353 11,709 17

2008 19,321 5,767 1,344 12,193 17

2008 19,321 5,767 1,344 12,193 17

Year Employment total

- FTE Employment total

- GOVS - FTE Employment total

- BES - FTE Employment total

- HES - FTE Employment total

- PNP - FTE 2007 15,921.05 6,018.35 284.95 9,600.75 17

2008 17,373.8 5,626.6 1,146.7 10,589.9 10.6

2008 17,373.8 5,626.6 1,146.7 10,589.9 10.6

Year Researchers totalResearchers -

GOVS Researchers -

BES Researchers -

HES Researchers -

PNP 2007 10,580 2,292 156 8,115 17

2008 11,534 2,738 372 8,412 12

2008 11,534 2,738 372 8,412 12

Year Researchers total

- FTE Researchers - GOVS - FTE

Researchers - BES - FTE

Researchers - HES - FTE

Researchers - PNP - FTE

2007 8,806.1 2,240.35 108.1 6,440.65 17

2008 9,978.2 2,675.5 306.9 6,990.2 5.6

2008 9,978.2 2,675.5 306.9 6,990.2 5.6

Source: Statistical Office of the Republic of Serbia: yearly statistical bulletins on S&T activities in Serbia

of 52


Besides accreditation procedure, which is obligatory under the HE Law, for teaching competence, and under the Science Law, for R&D competence, there is no specific evaluation of teaching and R&D performance of HE institutions in Serbia. There is no single HE institution from Serbia within “Shanghai top 100 Universities” so far.

3.3.2 Academic autonomy Autonomy of Higher Education System in Serbia is granted by the HE Law. This autonomy, by law, refers to: (a) academic autonomy, comprising right of teachers to decide on what to teach, how to enrol students and how to organise process of studying, how to internally organise HE institution; and (b) political autonomy, which refers to the right to create statute and other legal documents, and power to appoint the heads of different units (rector, dean, head of department, etc.) and to deal with internal political conflicts, and c) "financial and managerial autonomy", which refers to having the freedom to decide on salaries, tuition fees, allocation of governmental funds, looking for additional funds, as well as to recruit teaching staff, researchers and other staff. All three autonomies could be assessed as fully recognised, implemented and in function in the HES in Serbia. In addition, the territory of HE institution is under the control of university – faculty management and no forces of the ministry of internal affairs are allowed to enter this territory without a permission of HE institution’s responsible staff!

Managerial functions in HE institutions are completely under internal jurisdiction. Government could be present only in managerial board with one sixth of the members, only if the Republic of Serbia is one of the co-founders of such HE institution. Another one sixth of members of managerial board must be appointed by the students’ parliament, and the rest of the members (two thirds) must be selected within HE institution staff.

Rectors/Deans in public (usually, statutes in private HE institutions are similar to those in public ones) universities must be elected among peers. There is no approval for Rectors/Deans election needed by the higher/external entities (such as Ministry of Education) in Serbia; and the same holds for all other elections and posts in public HE institution management and governing bodies defined by their internal statutes.

Private HE institutions are fully responsible to their founders.

Both public and private HE institutions in Serbia are fully independent and in the capacity to autonomously design research agendas and topics of research specialisation, as well as in the management of research budgets and on hiring personnel.

3.3.3 Academic funding Serbia has a dual university funding system with a split between block and competitive funding: block funding (institutional or general funding) is attributed directly to universities for their institutional tasks, for teaching mission. In Serbia, there is no institutional funding allocated to universities for research, this being exclusively devoted to teaching and accordingly calculated predominantly on the basis of the number of students; this is fully under control of the Ministry of Education. Block funding, in general, is not linked to scientific results (i.e. bibliometric indicators, patents, etc.). Public competitive funding is made available through specific instruments (grants competition) directly to individual researchers or research units, and this is fully under control of MSTD.

of 52


Most of the public universities in Serbia are still not integrated kind of universities; i.e. faculties are financial entities with the authority to allocate all funds, including a share which they have to distribute to university authorities.

Universities and faculties in Serbia are fully independent to make decisions for allocation of resources, autonomously in line with their teaching and research priorities. Staff salaries are just partly controlled by the government in public HE institutions, due to financing rules defined by the Ministry of Education, and taking into consideration the number of students granted for financing from the national budget, number and academic position of staff, and rules for remuneration applicable for HE sector. Money collected from students who are enrolled but have to pay their scholarship, is fully under the control of HE institution management. Allocation of money collected from self-financed students is, by the rule, unknown to the public and without any influence from the responsible Ministry. Staff which is partly or fully involved in R&D activities has autonomy to distribute funds collected from MSTD and other financial sources for R&D activities; usually, distribution is agreed with HE institution’s management, in order to meet the needs and expenses for infrastructure, supporting and administrative staff and other internal rules and practice.

A consequence of such funding rules and practice in HE sector in Serbia is an enormous difference in financial position and level of income between university staff within one university and between universities in the country. Faculties which are more attractive to students, could enrol a large number of self-financed students, and spend most of this money for their salaries, applying at the same time for government / budget money for infrastructure, equipment, maintenance, etc. The recent financial crisis and lack of money in government budget implied interventions from both responsible ministries, MSTD and Ministry of Education, in order to change the situation, and use all possible financial sources, including money collected from self-financed students, for the benefit of all involved stakeholders: faculty, university, staff and students. All these interventions must be in line with HE Law and the generally proclaimed and adopted academic autonomy.

3.4 Knowledge transfer The importance of knowledge dissemination and exploitation in boosting competitiveness and contributing to the effectiveness of public research has been increasingly recognised by EC and EU Member States. Following the publication of the ERA Green Paper in April 2007, the EC Communication "Improving knowledge transfer between research institutions and industry across Europe" was issued, highlighting the importance of the effective knowledge transfer between those who do research, particularly HEIs and PROs, and those who transform it into products and services, namely the industry/SMEs.

Several Member States have taken initiatives to promote and facilitate knowledge transfer (for instance new laws, IPR regimes, guidelines or model contracts) and many others are planning to intensify their efforts in this direction. However, these initiatives are often designed with a national perspective, and fail to address the tran-snational dimension of knowledge transfer. This section will assess the national policy efforts aimed to promote the national and trans-national public-private knowledge transfer.

of 52

http://ec.europa.eu/research/era/docs/en/understanding-era-european-commission-eur22840-161-2007-en.pdf

http://ec.europa.eu/research/era/docs/en/knowledge-sharing-european-commission-182-2007-en-pub.pdf

http://ec.europa.eu/research/era/docs/en/knowledge-sharing-european-commission-182-2007-en-pub.pdf


3.4.1 Intellectual Property Policies The main results which should be achieved in national R&D projects financed by the MSTD within technology development programme are so-called technical solutions, patents, pilot technological facilities, new innovations, technological upgrades and other technological solutions that can be directly applied in industry and services. In the period 2003-2007, MSTD has collected reports of the implementation of over 3,400 technical/technological solutions/results within the technological development programme financed by the MSTD in Serbia.

Despite such a remarkable number of technological results, the number of patents granted to R&D organizations in the period from 2003-2008 in Serbia was just 21 in total, including 36 patent applications. The relevant figures in the corporate sector were not remarkably better, with about 20 patents registered per year, while individuals registered more than 300 patents in the same period. In view of such results, Serbia is at the very bottom of the list in Europe. This in fact proves overall assessment that there is very low patenting and overall intellectual property protection culture in Serbia.

Legal framework for the protection of intellectual property rights (IPR) in Serbia could be assessed as complete and fully in accordance with international recommendations and practice. The Republic of Serbia became the member of the European Patent Organization (EPO) on October 1, 2010.

Table 24: Protection of intellectual property in Serbia in period 2006-2009

Year Protection of intellectual property (Source: Intellectual Property Office of the Republic of Serbia) 2006 2007 2008 2009

Resident patent applications 431 388 386 299National patent applications (filed directly in the Office Non-Resident patent applications 27 20 16 21

PCT applications in the national phase 246 55 73 40International patent applications (filed by means of the PCT and Cooperation and Extension Agreements)

Extended applications of the EU patent 3.246 5.372 5.625 4.258

Patent applications – total 3.950 5.835 6.100 4.618

Patent grants – Resident 46 71 70 103Patent grants – Non-Resident 70 207 224 300

Patent grants – total 116 278 294 403

Resident patent applications – petty patents 185 155 136 101Non-Resident patent applications – petty patents 4 3 1 4Petty Patent8 applications – total 189 158 137 105

Trademarks – International applications 5.211 5.754 6.358 5.422Non-Resident applications 1.151 1.023 1.111 711Trademarks – National applications

Resident applications 1.861 2.112 2.067 1.376Trademarks applications – total 8.223 8.889 9.536 7.509

Registered trademarks – International applications 4.964 5.162 5.659 5.885Non-Resident applications 961 856 1.472 1.521Registered trademarks – National

applications Resident applications 962 1.246 1.636 1.819Registered trademarks – total 6.887 7.624 8.767 9.225

Designs – Hague Agreement 475 400 351 181

8 “A petty patent shall mean a right of protection for a new, industrially applicable invention that involves an inventive step. In the event of protection by a petty patent, an invention shall involve an inventive step if it is the result of activities extending beyond the routine use of the state of the art by a skilled person, but lacks the inventive step required for a patent. Only a solution relating to the configuration or structure of a product or the layout of its components may be the subject matter of an invention protected by a petty patent” (Article 134, THE PATENT LAW, Official Gazette of Serbia and Montenegro, No. 15, 2 July 2004, Entered into force 10 July 2004)

of 52


Non-Resident applications 28 16 37 17Designs – National applications Resident applications 147 148 116 118

Registered designs 650 552 504 316

Copyright – Resident applications 679 638 724 310Copyright – Non-Resident applications 2 4 7 3Copyright – total applications 681 642 731 313

Related rights – Resident applications 0 0 10 3Related rights – Non-Resident applications 0 0 0 0Related rights – total applications 0 0 10 3

Source: Intellectual Property Office of the Republic of Serbia

In order to change present practice of low level of protection of IPR under technological results realised within R&D projects (co)financed by the MSTD, the MSTD has launched activities on drafting a new Innovation Law and amendments to the Law on IPR with the provisions concerning R&D activities in terms of clear and more intensive linkage of R&D and innovation with economy. These incentives will stipulate among other things: (a) Strategic changes to the method of funding of R&D projects, partly oriented to the entities in the economic sector as the proponents of innovation projects; (b) Regulation of IPR protection for results achieved under the joint projects between corporate sector and R&D organisations, and partly financed by MSTD. The provisions on the IPR shall be fully harmonized with the international practice according to which the owner of so-created intellectual property is both the employer and the client who contracted the work. On such occasion MSTD would issue the document prescribing publicity and confidentiality of information relative to the realisation of the innovation and R&D projects, and how mutual relations are regulated among the project participants, in terms of IPR and respective financial compensation in the case of commercialisation of an IPR. A considerable part of income would go to the innovators (not less than 30%) and R&D institution (no less than 20%). These incentives must be integrated into contracts for (co)financing of R&D and innovation projects between MSTD and R&D organisations in 2011.

3.4.2 Other policy measures aiming to promote public-private knowledge transfer

Numbers of mechanisms, grant schemes, incentives and programmes have been launched since 2005, supporting public-private sectors knowledge transfer, transfer of technologies from R&D to business sector, and realisation of innovation projects in business enterprise sector in Serbia. There is an ongoing evaluation of most of these schemes and programmes, (co)financed by the MSTD and Ministry of Economy and Regional Development in Serbia.

Spin-offs

A crucial step forward in order to create an environment which supports technological entrepreneurship in Higher Education Sector (HES) and PROs are changes in HE Law and Innovation Law which stimulates and legally approves creation of university and PROs spin-offs. Best practice case and recommended way of public-private knowledge transfer model is the (public) University of Novi Sad with almost 60 spin-off companies created within the last 5-6 years. The University of Novi Sad has established the first IPR Liaison Office within university, in cooperation with national IPR Office, as the first such office in R&D sector in Serbia. Agreement on the support of the IPR Office to the University of Belgrade and the foundation and work of the Technology Transfer Centre was signed in November 2010. The Centre is established by the decision of the University Council from October 26, 2010, in the

of 52


purposes of identification, protection and commercialization of the results of research work of professors, researchers and students, and protection of IPR.

Involvement of private sectors in the governance bodies of HEIs and PROs

The rights and possibility that representatives from the business sector could be elected in managing boards in public faculties and universities and PROs are already legally granted. In a number of R&D organisations this is a reality and potential for possible cooperation between private sector and public R&D organisations.

Inter-sectoral mobility Mobility of researchers is, at present, a one-way move from PROs to private universities or private companies, because of higher salaries. There are no official obstacles for such a move, but there is official statement of Belgrade University which declares any part-time engagement of their staff in private universities as a non-acceptable act which could cause a break of working status with Belgrade University.

Promoting research institutions - SME interactions

Innovation Law supports cooperation between PROs and SMEs. The recently adopted S&T Strategy and the latest public call for new R&D projects for 2011-2014 period also support (in financial terms) cooperation between PROs and SMEs.

EU cohesion policy

The Instrument for Pre-Accession Assistance (IPA) is the EU programme and financial instrument for candidate countries or potential candidate countries. Serbia is the IPA beneficiary country as well. MSTD is recently involved in IPA activities mostly related to programmes oriented to support innovativeness and competitiveness in Serbia, based on knowledge, i.e. involving R&D community in joint projects with SMEs, which are (co)financed through IPA funds.

3.5 Cooperation, coordination and opening up national research programmes within ERA

The articulation between the R&D Framework Programmes, the Structural Funds and the Competitiveness and Innovation Programme is still underdeveloped in terms of coordination, synergies, efficiency and simplification. The policy fragmentation at EU and national level, and between EU and national policies can hinder the build of critical masses of research excellence, leads to the duplication of efforts, sub-optimal impacts of the different instruments and unnecessary administrative overheads. Differences between research selection procedures and criteria can also be an obstacle to the overall spread of excellence. This section assesses the effectiveness of national policy efforts aiming to improve the coordination of policies and policy instruments across the EU, all part of the drive to create an integrated ERA.

3.5.1 National participation in intergovernmental organisations and schemes

Serbia’s participation in intergovernmental organisations and schemes could be assessed as encouraging, particularly in international programmes, such as (MSTD-Strategy, 2010): (1) COST-The SFRY was one of the founders of COST in 1971, and Serbia (FRY) became a full member in June 2001. Currently, Serbian research teams participate in 101 COST actions, and are the coordinator of one action (in the

of 52


area of materials, physics and nanoscience); (2) EUREKA-Serbia has been a full member of EUREKA since 2002. Serbian researchers and businessmen currently participate in the implementation of 36 EUREKA projects the total budget of which is €15.3m; (3) NATO Science for Peace and Security - On July 27, 2007 the Republic of Serbia signed a Presentation Document concerning the participation of the RS in the Partnership for Peace Programme committing itself to cooperation frameworks with NATO in the field of S&T. Serbian researchers joined the programme late in 2007 and the results achieved so far are implementation of 8 projects; (4) Cooperation programme with the International Atomic Energy Agency over the past several years developed primarily through technical assistance programmes involving equipment, expert knowledge and training courses, as well as through regional and interregional activities. Technical cooperation was mainly focused on programmes for decommissioning a research nuclear reactor and radioactive waste management, however it also involved nuclear and radiation security, radiation medicine and health, and nuclear and radio-chemical application of isotopes in hydrology, agriculture and industry; (5) Cooperation with UNESCO is based on UNESCO’s support for organizing major international conferences on topics of global interest for the international community, support for maintaining regional cooperation networks between research teams that work in a specific area of basic research and expertise in science policy issues and the creation of strategic documents.

3.5.2 Bi- and multilateral agreements with other ERA countries Currently, bilateral cooperation programmes are being implemented in collaboration between Serbia and with number of countries resulted in co-financing of R&D projects realised by the teams consisting of researchers from Serbia and from: (1) Germany (DAAD Programme) – there are 24 on-going R&D projects; (2) Hungary. – there are 20 on-going R&D projects; (3) France – two programmes: Pavle Savic / Hubert Curien partnership and cooperation with CNRS, all together 85 joint R&D projects; (4) Slovakia, 42 R&D projects; (5) Slovenia, 149 R&D projects since 2002; (6) Croatia, 35 bilateral R&D projects; and (7) Switzerland (SCOPES Programme), 31 R&D projects. In the near future cooperation will be launched with Spain, Portugal, Greece (new cycle), China and India, while a framework agreement has been achieved with several other countries and the relevant procedures are underway (Austria, the Czech Republic, Portugal, Spain, Russia, USA). These agreements could be assessed as important for R&D sector and S&T development in Serbia.

3.5.3 Other instruments of cooperation and coordination between national R&D programmes

In addition to the cooperation programmes, Serbia has actively participated in European and international scientific organisations such as CERN (European Nuclear Research Centre) where Serbian physicists and engineers made a notable contribution despite the fact that Serbia is not a member of that organisation. For that reason, Serbia filed an official application for membership in CERN, in March 2009. In November 2008, Serbia joined the membership of the Partnership for Advanced Computing in Europe.

of 52


3.5.4 Opening up of national R&D programmes MSTD has recently launched a public call for funding of R&D programmes in the period 2011-2014 which is explicitly open to foreign researchers (MSTD-Act, 2010): “In the Ministry’s project can be engaged a foreign researcher, who within the last five years has accomplished the results that meet the minimal conditions for the management of projects. The foreign researcher engaged in the project of the Ministry is entitled to travel expenses and residence in Serbia in line with the respective act of the Ministry (Article 7)”; and “A project involving at least one foreign researcher is awarded one point additionally, and if involving 2 and more foreign researchers is awarded 2 points in the total sum of 50 points (Article 17)”. Integration of foreign researchers into domestic R&D teams is very welcome and will be awarded in the selection procedure!

Serbian EURAXESS services network is the portal which provides free and personalised assistance on the challenges faced by researchers and their families when relocating, as stated in The EURAXESS Services Commitment: for Serbian researchers planning to develop career in the heart of ERA, or researchers from EU, eager of doing research in Serbia. Work permits are required for foreigners employed in Serbia and are issued with a validity of 3 to 12 months. An application for a work permit is submitted in person or by mail to the Labour market office in Belgrade. The average time for obtaining the work permit is two days. Work permit can be renewed without obstacles and the procedure is identical to the first application.

3.6 International science and technology cooperation In 2008, the European Commission proposed the Strategic European Framework for International Science and Technology Cooperation to strengthen science and technology cooperation with non-EU countries. The strategy identifies general principles which should underpin European cooperation with the rest of the world and proposed specific orientations for action to: 1) strengthen the international dimension of ERA through FPs and to foster strategic cooperation with key third countries through geographic and thematic targeting; 2) improve the framework conditions for international cooperation in S&T and for the promotion of European technologies worldwide. Having in view these aspects, the following section analyses how national policy measures reflect the need to strengthen the international cooperation in S&T.

3.6.1 International cooperation In the period 2001-2009, Serbian researchers accomplished encouraging initial results in the domain of international S&T cooperation. The basic programmes through which this was implemented were the Sixth and the Seventh EU Programmes, as well as COST, EUREKA, NATO SPS, including cooperation with the IAEA, and bilateral cooperation programmes (MSTD-Strategy, 2010).

On the basis of the Memorandum of Understanding signed by the Republic of Serbia regarding its Association with the EU FP7, Serbia obtained the status of Associated Country on June 13, 2007. That status provides an opportunity for Serbian researchers to participate in practically all priority areas, and to engage in project coordination.

The first results of the participation in 2007 were encouraging, especially those achieved at the regional level. Thus, Serbian science institutions took part as coordinators in 7 of the 11 projects funded under the regional call for tenders

of 52

http://www.euraxess.rs/sitegenius/index.php

http://ec.europa.eu/research/iscp/pdf/com_2008_588_en.pdf

http://ec.europa.eu/research/iscp/pdf/com_2008_588_en.pdf


focusing on research infrastructural enhancement, RegPot-3, as well as participating in the realization of 3 of the 4 remaining projects. Statistical data for the first two years of the programme (by the end of July 2009) show that 822 researcher groups / partner organizations from Serbia participated in the preparation of 663 projects applications. Of that number, 77 projects involving 95 research groups/organizations from Serbia were granted funding. The success rate within the FP7 in certain European priority areas largely varies (MSTD-Strategy, 2010).

Table 25: Success rate of Serbian researchers in the FP7 projects

Area Success rate

Total number of approved projects

Nanosciences, nanotechnologies, materials, and new technologies 38% 3

Energy 20% 6

Transport 19% 5

Food, agriculture, biotechnology and fisheries 17% 8

Information and communication technologies 18% 12

Health 4% 3

Environment 4% 2Source: MSTD - The Ministry of Science and Technological Development of the Government of the Republic of Serbia

It must be emphasized that Serbian institutions also carried out two coordinating functions within the framework of the Cooperation Programme, at the level of consortia in the field of ITC (Faculty of Electrical Engineering, Belgrade) and nanosciences, nanotechnology of materials and new technologies (The Institute of Physics, Belgrade). The funds stipulated on the basis of successful applications in the first two years of implementation of the FP7 amount to €15.19m.

Since the MSTD is the focal point for the above programmes it is naturally responsible for the adoption and implementation of measures meant to facilitate a broader inclusion and higher competitiveness of Serbian research groups, including groups in innovative companies and corporations. Some of the measures include timely conveyance of information to research and other partnership organizations regarding open calls for tenders, organization of info days and workshops, assistance in preparing draft projects and their subsequent administration, subsidies for successful teams etc. These measures are being implemented through the cooperation of the associates in the Sector for International Cooperation and European Integrations MSTD, national contact person’s network for the Seventh Framework Programme (formed towards the end of 2006) and the Consultative Bureau for International Projects (formed in March 2008).

3.6.2 Mobility schemes for researchers from third countries Recently launched public call for funding of three programmes – Basic Research, Technological Development and Integrated and Interdisciplinary Research by the MSTD has explicitly promoted initiative for integration of foreign researchers into domestic R&D teams. Rules and conditions are already described in 3.5.4.

of 52


4 Conclusions

4.1 Effectiveness of the knowledge triangle

Table 26: Effectiveness of knowledge triangle policies

Recent policy changes Assessment of strengths and weaknesses Research policy New Strategy of S&T

Development of the Republic of Serbia 2010-2015 adopted by the Government of the Republic of Serbia on February 25, 2010 New Science Law adopted by the Parliament of the Republic of Serbia on March 24, 2010.

Strengths:

• Focused on seven national research priorities;

• Partnership through strengthening ties with institutions and companies to allow Serbia to validate its ideas in the global market;

• Strong policy support for creation of national innovation system.

Weaknesses:


• Evaluation of knowledge demand is on a low level;


Innovation policy New Innovation Law adopted by the Parliament of the Republic of Serbia on March 24, 2010.

Strengths:

• Fast growing investments in building of innovation infrastructure.

Weaknesses:

• Still present linear model of governance of the R&D and innovation system;

• Legal barriers could inhibit cooperation between business sector and public R&D sector.

Education policy New High Education Law adopted by the Parliament of the Republic of Serbia on June 29, 2010.

Strengths:

• Integration in European HE Area;

• Support for creation of university spin-offs. Weaknesses:

• Differentiation between “teaching” and “research” universities is not legally recognised and this may cause decrease of competence of overall HE system.

Other policies Set of laws in the area of intellectual property rights adopted by the Parliament of the RS on March 24, 2010.

Strengths:

• Integration of national IPR system into EU legal and operational system of protection of IPR.

Weaknesses:

• Increase of expenses for IPR;

• Low level of overall culture for protection as well as for commercialisation of IPR.

of 52


4.2 ERA 2020 objectives - a summary

Table 27: Assessment of the national policies/measures supporting the strategic ERA objectives (derived from ERA 2020 Vision)


1 Ensure an adequate supply of human resources for research and an open, attractive and competitive single European labour market for male and female researchers

• Recently launched public call (May 23rd, 2010) for funding of three programmes – Basic Research, Technological Development and Integrated and Interdisciplinary Research by the MSTD has explicitly promoted initiative for integration of foreign researchers into domestic R&D teams;

• There is no special regulation for career breaks (i.e. parental leave) in the R&D sector, and this is equal for all employees in public sector. Restoration of the same position is guaranteed by the law, and fixed-term contract must be extended due to maternity leave;

• MSTD recently has launched programme which will engage Serbian scientific Diaspora in joint projects and other initiatives, as well as to motivate the scientists to return to Serbia.

• Ageing of the research population could become an issue with more than a half of researchers’ age between 35 and 54 years (56.01%);

• Number of researchers in Serbia is changing from year to year, due to permanent brain drain and incentives for higher employment addressed to fight emigration of researchers from Serbia abroad;

• There is no equivalence in the HE Law for scientific positions in HE institutions similar to regulation for carrier advancement in R&D sector within the Science Law. This situation can cause worsening of competence of staff in HE sector.

2 Increase public support for research

• Public funding of investments in R&D and Innovation activities in the period 2011-2014 will be realized under the S&T Strategy assumption that: “A realistic plan of growth of budget appropriations for science is an annual growth rate of 0.15% GDP. At such a pace, the budget appropriations by 2015, the closing of this Strategy framework shall reach 1.05%.” (MSTD-Strategy, 2010)

• Plan of growth of budget appropriations for science as an annual growth rate of 0.15% GDP could be affected by the economic crisis.

3 Increase European coordination and integration of research funding

• New ST strategy promotes international multilateral and bilateral S&T cooperation.

• Serbia’s participation in intergovernmental organisations and schemes could be assessed as encouraging, particularly in international programmes, such as COST, EUREKA, NATO SPS, Cooperation programme with the International Atomic Energy Agency, Cooperation with UNESCO.

of 52



4 Enhance research capacity across Europe

• MSTD is the focal point for the adoption and implementation of measures meant to facilitate a broader inclusion and higher competitiveness of research groups, including groups in innovative companies and corporations in FP7. These measures are being implemented through national contact person’s network for the FP7 and the Consultative Bureau for International Projects established by the MSTD.

• Still, there is very modest participation of R&D and innovative and corporate organizations in FP7: estimates are that less than 20% of researchers have been involved in European projects.

5 Develop world-class research infrastructures (including e-infrastructures) and ensure access to them

• Serbian R&D infrastructure investment initiative is part of new S&T Strategy in Serbia. The Project of infrastructural investments, worth €400m will start in January 2010 and last until the end of 2015.

• Mechanisms for realisation of this initiative are different from the process of distribution of government budget for R&D activities, which makes €400m R&D infrastructure investment initiative more reliable and independent from negative effects of the world economic crisis.

6 Strengthen research institutions, including notably universities

• The Law on Higher Education (LHE), which fully implements the Bologna Declaration in Serbia, came into effect on 10 September 2005, opening the process of integration of Serbian HE system into EU HE area.

• Overall assessment is that most of the private HE institutions are so-called “teaching” faculties, with transmission of knowledge (teaching) as primary and only activity. Other two main missions: generation of new knowledge (research) and the 'third mission' (contribution to local or regional wealth and economic development) are mostly present in majority of public HE institutions;

• Besides accreditation procedure (obligatory under the HE Law), for teaching competence, and under the Science Law, for R&D competence, there is no specific evaluation of teaching and R&D performance of HE institutions in Serbia. There is no single HE institution from Serbia within “Shanghai top 100 HE” so far.

7 Improve framework conditions for private investment in R&D

• Existing Innovation Law makes more legal conditions for private investment in R&D;

• The MSTD shall soon draft a new “Law on innovative activities” and amendments to the “Law on intellectual property rights” with the provisions concerning science research in terms of clear and more intensive linkage of science, research and innovation with economy.

• Innovation Fund is in process of formation on a public-private basis between direct and indirect beneficiaries of the budget, public enterprises, international financial institutions, banks, private commercial companies and others. The Fund would be established under the law governing incorporation and operation of investment funds, with majority state founding equity.

of 52



8 Promote public-private cooperation and knowledge transfer

• Crucial step forward in order to create environment which support technological entrepreneurship in Higher Education Sector (HES) and public R&D laboratories and institutes (PRO – Public Research Organisations) are changes in HE Law and Innovation Law which stimulates and legally approves creation of university and PROs spin-offs.

• Crucial challenge for research governance in Serbia is question how to increase R&D and Innovation activities in Business Enterprise Sector (BES) in country. Official figures showed that BERD share in GERD is only 9.1% in 2008, compared with 63.7% in EU. Recent official statistical surveys in Serbia support findings that R&D investments in BES are comparable to those by the MSTD. Further investigations in revealing the real situation in BES are needed, in order to have S&T policy based on much bigger human resources in R&D.

9 Enhance knowledge circulation across Europe and beyond

• Increase of Serbian FP participation provide an opportunity for knowledge circulation;

• Growing number of financial as well as policy instruments aimed at improving knowledge commercialization.

• Policy instruments for knowledge circulation promotion could have limited effects for knowledge circulation because of insufficient integration of business sector and public R&D sector.

10 Strengthen international cooperation in science and technology and the role and attractiveness of European research in the world

• On the basis of the Memorandum of Understanding signed by the Republic of Serbia regarding its Association with the EU FP7, Serbia obtained the status of Associated Country on June 13, 2007.

• Success rate of Serbian researchers compared with colleagues from South East European countries could be assessed as moderate, i.e. it is necessary to improve skills for better preparation of applications, as well as to adopt better strategies for partnerships with participants from EU member countries;

• Promotion of national S&T priorities will be accomplished through science members/experts delegated to play an active role within programme committees for different areas of FP7 and within other advisory committees of the EC.

11 Jointly design and coordinate policies across policy levels and policy areas, notably within the knowledge triangle

• It is legally granted rights and possibility that representatives from business sector could be elected in managing boards in public faculties and universities and PROs;

• Innovation Law supports cooperation between PROs and small and medium sized (SME) companies. Recently adopted S&T Strategy and latest public call for new R&D projects for 2011-2014 period also support (in financial terms) cooperation between PROs and SMEs.

• Number of mechanisms, grant schemes, incentives and programmes has launched since 2005, supporting public-private sectors knowledge transfer, transfer of technologies from R&D to business sector, and realisation of innovation projects in business enterprise sector in Serbia. There is ongoing evaluation of most of these schemes and programmes, (co)financed by the MSTD and Ministry of Economy and Regional Development in Serbia.

of 52



12 Develop and sustain excellence and overall quality of European research

• The Science Law adopted by the parliament in 2005 promotes excellence in R&D work, imposing publishing of scientific articles in ISI referred scientific journals as precondition for career advancement in R&D sector.

• Following the Essential Science Indicators from Thomson Reuters, Serbia has achieved Rising Star status in multiple fields: Biology & Biochemistry, Chemistry, Clinical Medicine, Computer Science, Engineering, Materials Science, Mathematics, Neuroscience & Behaviour, Pharmacology & Toxicology, and Physics.

13 Promote structural change and specialisation towards a more knowledge - intensive economy

• New Innovation law is the legal framework for public – private partnership in R&D and innovation, and “Strategy of Scientific and Technological Development of the Republic of Serbia 2010-2015” presents an action plan for realisation of such partnership;

• International S&T cooperation becomes additional knowledge driver with increasing importance, both in research and financial aspects. The basic programmes are the FP7, COST, EUREKA, NATO SPS, including cooperation with the International Atomic Energy Agency (IAEA), and bilateral cooperation programmes.

• Commercialisation of R&D results must be among the highest priorities for MSTD: MSTD would issue the document prescribing publicity and confidentiality of information relative to the realization of the innovation project, and how mutual relations are regulated among the project participants, in terms of intellectual property rights and respective financial compensation in the case of commercialization of an IPR. Considerable part of income would go to the innovators (not less than 30%) and institution (no less than 20%).

14 Mobilise research to address major societal challenges and contribute to sustainable development

• Agriculture and energy are sectors of economy with strongest support from government sources for R&D; significant share of government budget is allocated for R&D activities addressed to industrial production and technology and protection and improvement of human health.

• Still present linear model of governance of the R&D and innovation system in the country is main obstacle for networking of R&D sector with the rest of economy and society.

15 Build mutual trust between science and society and strengthen scientific evidence for policy making

• One among the recently adopted national S&T priorities is the “Improvement of decision making processes and affirmation of national identity”.

• The development of a national innovation system is overall aim of new S&T Strategy and necessity in order to be able to build Serbia as a knowledge-based economy and society;

• The centres of excellence will be formed in some PROs. These centres are expected to provide support for the Serbian economy, specifically by helping innovative SMEs in their programme development.

of 52


References EC (2008): Elyse Ruest-Archambault, Nick von Tunzelmann, Simona Iammarino,

Nick Jagger, Linda Miller, Djuro Kutlaca, Dusica Semencenko, Sanja Popovic-Pantic, Marija Mosurovic: “Benchmarking policy measures for gender equality in science”, EC, DG for Research, Directorate L – Science, economy and society, Unit L.4 – Scientific culture and gender issues, EUR 23314, ISBN 92-79-07619-0, ISSN 1018-5593, DOI 10.2777/55449, Printed in Belgium, 162 pages, 2008. http://www.nauka.gov.rs/eng/images/stories/Konkursi_i_jp/new_project_cycle/programme.pdf

MSTD-Act (2010): “Act on the selection, evaluation and financing of research for the project cycle 2011 – 2014”, and the “Programme for the research cycle 2011-2014”, May 03, 2010. http://www.nauka.gov.rs/eng/images/stories/Konkursi_i_jp/new_project_cycle/act_on_election_evaluation_funding.pdf

MSTD-Innovation Law (2010): “Law on Innovation Activities”, “Official Gazette of the Republic of Serbia", no. 110/2005 and 18/2010 (in Serbian language).

MSTD-Science Law (2010): “Law on Scientific and Research Activities”, “Official Gazette of the Republic of Serbia", no. 110/2005, 50/2006 - corr. and 18/2010.

MSTD-Strategy (2010): “Strategy of Scientific and Technological Development of the Republic of Serbia 2010-2015”, adopted by the Government of the Republic of Serbia on February 25, 2010. http://www.nauka.gov.rs/eng/images/stories/vesti/Strategy/serbian_rd_strategy.pdf

WBC-INCO.NET (2009): D. Kozmus, T. Knežević, A. Rocchi, U. Kunze: “Report on opportunities to access large scale infrastructures”, Deliverable Number: D3.16, WBC-INCO.NET, Project number: PL 212029, 2009.

List of Abbreviations B.E.S. Business Enterprise Sector BERD Business Expenditures for Research and Development COST European Cooperation in Science and Technology ERA European Research Area ERA-NET European Research Area Network ESFRI European Strategy Forum on Research Infrastructures EU European Union EU-27 European Union including 27 Member States FDI Foreign Direct Investments FP European Framework Programme for Research and Technology

Development FP7 7th Framework Programme GBAORD Government Budget Appropriations or Outlays on R&D GDP Gross Domestic Product GERD Gross Domestic Expenditure on R&D GOVERD Government Intramural Expenditure on R&D

of 52

http://www.nauka.gov.rs/eng/images/stories/Konkursi_i_jp/new_project_cycle/programme.pdf

http://www.nauka.gov.rs/eng/images/stories/Konkursi_i_jp/new_project_cycle/programme.pdf

http://www.nauka.gov.rs/eng/images/stories/Konkursi_i_jp/new_project_cycle/act_on_election_evaluation_funding.pdf

http://www.nauka.gov.rs/eng/images/stories/Konkursi_i_jp/new_project_cycle/act_on_election_evaluation_funding.pdf

http://www.nauka.gov.rs/eng/images/stories/vesti/Strategy/serbian_rd_strategy.pdf

http://www.nauka.gov.rs/eng/images/stories/vesti/Strategy/serbian_rd_strategy.pdf

http://cordis.europa.eu/

http://cordis.europa.eu/


of 52

GOVS Government sector HEI Higher education institutions HERD Higher Education Expenditure on R&D HES Higher education sector IP Intellectual Property IPR Intellectual Property Rights MSTD The Ministry of Science and Technological Development of the

Government of the Republic of Serbia OECD Organisation for Economic Co-operation and Development PRO Public Research Organisations R&D Research and Development RI Research Infrastructures RSD Republic of Serbia Dinars RTDI Research Technological Development and Innovation S&T Science and technology SME Small and Medium Sized Enterprise SORS Statistical Office of the Republic of Serbia

erawatch country reports 2010: serbia

Documents