Mapping Research and Innovation in Israel using the GO-SPIN Approach

Eran Leck (SNI)Guillermo Lemarchand (UNESCO)April Tash (UNESCO)

UNESCO Validation WorkshopThe Israel Academy of Sciences and HumanitiesJerusalemJanuary 17, 2016

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Country profile of Israel in SETI policy

The study aims at mapping the SETI system in Israel and examining the

R&D and innovation policy of the country.

The study reviews the historical background and evolution of the national

SETI system

The study analyzes the factors and catalysts for innovation and economic

growth using bibliometric, economic and comparative R&D metrics.

The report inventories Israel’s relevant institutions involved in research

activity and innovation, legal framework for innovation and operational

policy instruments.

The report analyses the strengths, weaknesses, opportunities and (SWOT)

which characterize Israel’s national innovation system.

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The structure of GOSPIN

analytic units

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5

Analytical Content of Israel’s SETI Policy (industrial R&D)

The analytical content is aimed at reviewingthe national policy towards STI (“highpolicy statement of the country”)

It follows the methodological approach ofthe GOSPIN survey using 14 standardfields to allow international comparisons ofSETI policies.

The OCS’ policy - resembles a general visionfor R&D as it includes a clear strategy for itspromotion and utilization.

The policy of the OCS towards R&D shouldnot be confused with a national strategyfor STI, as it does not address the needs ofthe entire STI system.

An excerpt from the analytical content of the OCS, according to the GOSPIN survey

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The policy cycleThe “policy cycle” model – describes the pattern of processes that lead to the creation of

a public policy.

The GOSPIN methodological approach divides the SETI policy cycle into five stages:

Agenda setting: the process by which problems involving SETI in relation to society and the

economy come to the attention of the government.

Policy formulation: the process by which SETI policy options are formulated by the

government

Decision-making: the process by which governments adopt a particular course of action or

non-action.

Policy implementation: the process by which governments put SETI policies into effect.

Policy evaluation: the process by which the impact of SETI policies are monitored by both

state and societal actors.

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The policy cycle The SETI policy of Israel is

set, formulated and

implemented by a

relatively small number of

organizations.

Some of these

organizations are

involved in several stages

of the cycle (e.g. OCS,

MOST, CHE/PBC, NCRD).

There is no single

"umbrella type"

organization that

coordinates all SETI

activities and sets the

overall policy.

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SETI policy instruments inventories

UNESCO’s GO-SPIN Survey was used as methodological tool for data collection of the three inventories

Inventory of SETI institutionsEncompasses 35 institutions and organizations, exerting significant impact on Israel’s national SETI policy (e.g. IASH, VATAT, research universities, TELEM, Chief Scientists, NCRD, MOST etc.).

Inventory of Israel’s legal framework for SETICovers more than 80 legal devices or legal instruments, which embody SETI related policies (laws, acts, government resolutions, formal agreements, contracts and international SETI co-operation treaties (e.g. CHE law, NCRD law, R&D law, CBS law, GR 666 – establishment of VATAT, bi-national agreements with foreign countries).

Inventory of SETI operational policy instruments Covers 50 high-impact policy instruments and tools by which organizations attempt to produce the desired effect on policy that they have set out to influence (e.g. ISF, BARD, GIF, I-CORE; OCS instruments – MAGNET, NOFAR, MAGNETON; KIDMA and MASAD – Cyber, etc.)

The main contribution of the three inventories: learning from the Israeli experience, promoting and advocating best practices for other countries

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R² = 0.98

R² = 0.95

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30 000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

GD

P p

er

capita [

consta

nt

2011 P

PP

inte

rnational $]

GD

P p

er

capita [

consta

nt

2015 U

S$]

GDP per capita [constant 2015 US$]

GDP per capita [constant 2011 PPP international $]

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Positive trends in several societal contextual factorsEvolution in life expectancy and HDI, 1965−2015 Economic growth

Source: UNESCO, based on UNDP

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Academic excellenceEvolution of Israeli research universities within the global rank (Shanghai ranking) of the 500 most important universities in the world, 2003–2015

Source: UNESCO based on raw data taken from the Shanghai university ranking

European Research Council Starting Grants, absolute number of funded projects and percentage of success rates per country of host institution, 2007–2014

Source: European Research Council

Israel is ranked second among European countries in ERC success rates and sixth in the absolute number of grants Three Israeli universities are ranked within the

world’s top 100 universities

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Negative values on political stability/absence of violenceGovernment effectiveness vs. political stability vs scientific productivity (2013)

Source: Office of the Chief Scientist (2012) and Getz et al. (2013)

Evolution of Government effectiveness vs. political stability (1996 -2013) - Israel

Source: UNESCO, based on raw data provided by the World Bank Database

III

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The dual economy: sectoral and spatial dimension Small and productive high-tech sector versus much

larger and less efficient middle-low and low (traditional) industry and service sectors leads to lower productivity and hinders economic growth

Distribution of PCT patent applications, by core and peripheral regions and by sub-districts (2012)

The spatial concentration of innovation at the core widens wage gaps between the core and the periphery.

GDP per worked hour in PPP $

Source: OECD.STAT

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Enrolment in higher education (ISCED 6, 7 and 8)

Human resources for science and engineering

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1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Expansion of research universities

The “lost decade”

Post 1967 economic growth era

Establishment of academic colleges by the CHE

Year

Sector of employment

Business

enterpriseGov.

Higher

edu.

Private

non-

profit

2000 41 144 n/a 9 405 n/a

2001 40 612 n/a 9 451 n/a

2002 39 743 n/a 9 684 n/a

2003 38 434 n/a 9 568 n/a

2004 38 829 n/a 9 130 n/a

2005 42 524 n/a 9 011 n/a

2006 46 530 n/a 8 956 n/a

2007 53 085 n/a 8 988 n/a

2008 51 620 n/a 9 181 n/a

2009 51 229 n/a 8 987 n/a

2010 53 511 n/a 9 120 n/a

2011 59 790 837 9 220 554

2012 64 734 n/a n/a n/a

Total FTE R&D civilian personnel (Researchers,

Technicians, Administrative), by sector of employment,

2000-2012

stagnation in the number FTE R&D positions

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Low representation of women in science and engineeringFemale enrolment in higher education, by field of science

Source: Planning and Budgeting Committee

Share of women in senior academic staff

Female enrollment (2014): Physical Sc. (37%), Math and Computer Sc. (29%), Eng. (27%)

Senior academic staff share (2014): Physical Sc. (11%), Math and Computer Sc. (10%), Eng. (14%)

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Low scholastic performance in math and science among studentsPISA Mathematics score (2012) PISA Science Score (2012)

2012200920062000

41424031Math

41423933Science

65745541Number of countries

PISA world rank by year and field

Source: OECD

What will be the future of our SETI system if the current trend continues?

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Worrying signs: investment in the higher education system

Government expenditure on tertiary education as a percentage of GDP (1998–2011)

Stagnation in tenure-track academic staff positions (top) and in FTE HE R&D personnel (bottom)

Sources: top left figure: UNESCO Institute for StatisticsTop and bottom right figures: PBC and CBS

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Source: OECD and UNESCO Institute of Statistics

The steep rise in GERD in the 1990’s is mainly due to the development of the local high-technology sector and the growth in the number of foreign R&D centers, which was backed by proactive government policy towards R&D and the implementation of generous incentive programs.

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GERD as percentage of GDP

Gross Domestic Expenditure on R&D

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Increased trend of SETI globalization: GERD by financing sector

Source: OECD and UNESCO Institute of Statistics.

Steep rise in the percentage of GERD financed by the business enterprise and abroad due to increased activity of the foreign R&D centers and support of foreign VC in Israeli start-ups (from 50% in 1991 to 81% in 2013).

Sharp decline in the share of GERD financed by the government sector and the share of GERD financed by the higher education sector.

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R&D budgets, OCS support programs, million NIS 2011 prices

Source: OCS

Strong and robust government policy towards industrial R&D - The 1985 Law for the Encouragement of Industrial (“R&D Law”) provides the means to expand and exploit the country's technological and scientific infrastructure, and leverage its high-skilled human resources. All OCS instruments are empowered by this important law.

Government Support for Industrial R&D

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Distribution of “high impact” SETI operational policy instruments by their objectives

The figure is based on the analysis of the GO-SPIN survey of policy instruments (n=50)

The most frequent objectives (a,c) are the production of new knowledge and the development of human resources for research innovation.

The least frequent (d,j) are the promotion of gender equality and strengthening coordination and networking among the different actors

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R² = 0.99

R² = 0.97

0

200

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800

1 000

1 200

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1 800

0

2 500

5 000

7 500

10 000

12 500

15 000

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Art

icle

s a

t S

CI,

SS

CI and A

&H

CI per

mill

ion

inhabitants

Art

icle

s a

t S

CI,

SS

CI and A

&H

CI

Articles Articles per million inhabitants

Declining scientific productivity

0

250

500

750

1 000

1 250

1 500

1 750

2 000

2 250

2 500

2 750

3 000

3 250

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Israel

Switzerland

Denmark

Sweden

Norway

Australia

Netherlands

Singapore

Finland

Ireland

Declining investment in HE and stagnation in tenure-track positions and FTE R&D posts in universities

Highest world’s productivity

R² = 0.94

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

7 500 10 000 12 500 15 000 17 500 20 000 22 500 25 000 27 500 30 000

Art

icle

s li

ste

d a

t S

CI,

SS

CI and A

&H

CI per

mill

ion

inhabitants

GDP per capita in 2015 constant US$

GDP per capita increased, however the productivity of papers per capita remained constant over US$ 19 000

0.90%

0.92%

0.89%

0.90% 0.91%

0.82%0.83%

0.90%

0.87%

0.80%

0.80%

0.78%0.76%

0.74%

0.71%

0.70%

0.70%0.68%

0.67%

0.60%

0.65%

0.70%

0.75%

0.80%

0.85%

0.90%

0.95%

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Shares of the world’sproduction of scientificarticles listed at SCI+SCCI+A&HCI

2525

Shift in publication fields and increased international collaboration

Declining share of publications in the natural and exact sciences

Source: UNESCO estimation based on SCOPUS data

A 5% decrease in the share of publications in the natural and exact sciences and a 5% increase in the share of publications in the social sciences since 1996

International collaboration in scientific publications as a share of total annual publications in Israel, 1970–2014

Early 2000’s – increased participation in EU programs

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Inventive activity of the universities Number of worldwide patent applications (patent family count) filed by Israeli universities and their share out of total Israeli assignee applications (Pie chart – in blue)

Top 100 Universities in Granted USPTOPatents, 2014

Source: National Academy of Inventors, USPTO processed data

The TTO’s in the universities play a crucial role in the commercialization of IP Increasing cooperation between universities and the business sector via OCS instruments

1605

1308

1200

1039

Total

Source: EPO’s PATSTAT database, data processed by SNI

2727

SETI globalization - who benefits from our IP?

Sources: Top left table -EPO’s PATSTAT. Top right figure: OECD.STATBottom right figure –Getz, Leck and Hefetz, 2013

Share of Israeli patents owned by foreign residents, USPTO

Distribution of patent applications filed by foreign R&D centers by country of origin (patent family)

LEADING FOREIGN ASSIGNEES (2008-2012)FOREIGN OWNERSHIP/ISRAELI INVENTORS

PATENT APPLICATIONS(FAMILY COUNT)

INTERNATIONAL BUSINESS MACHINES CORPORATION 867

INTEL CORPORATION 542

MICROSOFT CORPORATION 270

HEWLETT PACKARD 246

TEVA PHARMACEUTICALS USA 180

FREESCALE SEMICONDUCTOR 155

QUALCOMM 107

KODAK 103

BROADCOM CORPORATION 97

NDS 90

GOOGLE 81

APPLE 78

GE GENERAL ELECTRIC COMPANY 74

SAMSUNG ELECTRONICS COMPANY 72

SANDISK TECHNOLOGIES 65

HEWLETT PACKARD INDIGO 64

MARVELL INTERNATIONAL 53

APPLIED MATERIALS 56

TEXAS INSTRUMENTS 53

LSI CORPORATION 48

PHILIPS ELECTRONICS 46

MARVELL WORLD TRADE 47

SAP 47

KLA TENCOR 39

BIOSENSE WEBSTER 43

DEUTSCHE TELEKOM 34

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The key gaps

A lack of a national R&D plan that sets medium-term and long-termgoals and strategies for the SETI system as a whole.

A need for better governmental co-ordination structure for SETIpolicies and closer cooperation between various bodies andstakeholders (research universities, technological colleges, basic andapplied research institutions, hospitals and medical centres, the industryand corporate R&D centres, start-ups, the regulation authorities and thegovernment).

Decreasing investment in government R&D and higher education

Gaps in the promotion of women and additional groups (e.g. minoritypopulation, ultra-orthodox) in science and engineering despite existinglegal framework and tools.

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Eran Leck, Zehev Tadmor, Daphne Getz, Ofira Ayalon, Orly Nathan, Eliezer Shein, Tsipy

Buchnik, Ilia Zatcovetsky, Ella Barzani, Noa Lavid, Oshrat Katz Shacham, Bahina Eidelman, Gili

Fortuna, Efrat Kerem, Vered Segal; and Anat Even-Zahav (Technion).

IASH expresses its gratitude to current and past members of the Academy Council and to Academy members who made this study possible:

Ruth Arnon, Nili Cohen, David Harel, Joshua Jortner, Benjamin Zeev Kedar, Raphael Levine, Zehev Tadmor, Meir Zadok, Jacob Ziv and to the Academy staff members Bob Lapidot and Gadi Levin.

We are grateful also to Orit Hazzan (Technion) and Dan Peled (Haifa University) for their contributions