Research, technological development and innovation:

Smart Specialization Strategy, R&D initiatives

Ministry of Education and Science Ministry of Economics

2014–2020 planning period

Informal consultation meeting Riga, April 11, 2013

Smart Specialization Strategy

Ministry of Education and Science Ministry of Economics

Research and Innovation Strategy for Smart Specialization

Industrial base

National industrial

policy guidelines for

2014-2020 developed by the Ministry of

Economics

National vision and objectives

National development plan 2014-

2020

Latvian National Reform

program for implementation of Europe 2020

strategy

National research

priorities as regards to

the priorities of the EU

Participation in priorities

defined by EU, where capacity

has been identified

Knowledge capacity, research

infrastructure and

technologies

Evaluation of current

situation in Research and

Innovation carried out by

the MoES

Republic of Latvia Ministry of Economics

Smart specialization as part of the R&D&I agenda

“Smart specialisation and the new industrial policy agenda” (Dominique Foray, 2013 ERAC Mutual Learning Seminar, 20th March 2013)

– Non neutral (vertical) policy – Entrepreneurial discovery (strategic interactions) – New activities (mid-grained level of granularity) – Evolving targets – Inclusiveness – Experimental nature – What is important is the process for the continuous

stimulation, observation and detection of entrepreneurial discoveries and the support of early growth of the new activities

Research and Innovation Strategy for Smart Specialization

Research, Technological Development and Innovation Framework 2014 – 2020 (RTIF 2014-20) Ministry of

Education and Science, Ministry of Economics

First draft and public consultations – till July 1, 2013 Final report approved by the CoM – till November 1, 2013

OBJECTIVES for Smart Specialization Strategy (derived from NDP2020)

Outcomes Base value 2014 2020

Export of goods and services (% of the GDP) – COMPETITIVENESS INCREASE 59.3 (2011) 63 70%

Productivity in the manufacturing industry (value added per employee in 2000 comparable prices, in LVL) – PRODUCTIVITY INCREASE BY 46% 7 595 (2011) 8 640 11

100

INVESTMENT IN R&D as a % of the GDP 0.7 (2011) 0.8 1.5%

“Highly Productive Manufacturing and Internationally Competitive Services with Export Potential”

Share of exports in the high-tech sectors in the total annual exports (%) 9.97 (2011) 6 11%

Share of creative industry exports in the total exports (%) 1.09 (2009) 1.2 1.6% "Advanced Research and Innovation and Higher Education”

Private sector investments in R&D in 2020 - at least 48% of the total 25 (2011) 42 48%

Number of researchers employed in the private sector, FTE 16.2 (2010) 181 23%

Number of students obtaining degrees/qualifications at universities & colleges, thousands

24.8 (2011) 23.9 24.6

% of the population aged 30 to 34 with higher education) 36 (2012) 37 40%

European patents granted, applied for by researchers residing in Latvia 11 (2011) 13 26

Proportion of innovative businesses (as a % of all companies) 29.9 (2010) 22 30%

Latvian policy for the Smart Specialization Strategy - PRINCIPLES

Effective coordination between knowledge specialization and capabilities of industry to leverage on such specialization, ensuring that building of excellence in R&D is partly led by and followed by “entrepreneurial discovery”, taking into account existing capacity of embedded sectors and their potential for growth,

Increasing the knowledge pool in the areas of specialization through focusing, international cooperation and knowledge acquisition,

Economic policy that promotes the absorption of knowledge in companies and stimulates private R&D&I investments,

Promoting knowledge transfer and closer cooperation between universities, research institutions and enterprises,

Promoting social innovation at all levels of government and society in general.

Latvian policy for the Smart Specialization Strategy – WHAT IS DONE

1) Evaluation of main research performance indicators and identification for areas of scientific specialization (corresponds to BIRTI): Biopharmacy and organic chemistry:

− Human and veterinary drugs’ construction; − Methods of molecular and personalized diagnostics and therapy; − Functional food and medical cosmetics; − Pharmaceutical chemistry technology and biotechnology; − Diagnostic technologies.

Nanostructured materials and high energy radiation: − Functional materials for electronics and photonics; − Nanocomposites and ceramics; − Technologies of thin layers and overlays; − Radiochemistry and nuclear medicine; − Magnetic hydrodynamics.

Smart technologies in engineering and ICT: − Mechatronics; − Cyberphysical systems; − Functional materials; − Smart energetics and water technologies; − Aeronautics and space technologies.

2) National Industrial Policy Guidelines for 2014-2020 is being developed, defining main functional challenges, bottlenecks, as well as main advantages of Latvian entrepreneurs

Indicative Output Indicators for areas of proposed scientific specialization

Output Indicator Base Value 2020

Human resources and research

Number of STEM students in tertiary education 21% (2012) 26%

Number of PhD graduates per year 267 (2012) 300

Employees in R&D (FTE) 5432 (2011) 6232

Number of publications of Latvian scientific and academic personnel in Web of Science database

1091 (Scopus, 2011)

1610

International patent applications as a result of collaborative research between higher education, research institutions and private sector of Baltic countries

0 (2013) 350

Participation of Latvia in ESFRI infrastructures 0 (2013) 5

Participation in KIC activities 0 (2013) 2

EU excellence level research infrastructure (laboratories) 0 (2013) To be defined

Technology transfer

Private investments into R&D, encouraged by public sources (million LVL) 24.7 (2011) To be defined

European patents granted, applied for by researchers residing in Latvia 11 (2011) 23

Developed technology transfer infrastructure 0 (2013) To be defined

Innovative entrepreneurship

Share of exports in the high-tech sectors in the total annual exports (%) 9.97 (2011) 11.5%

Proportion of innovative businesses (as a % of all companies) 29.9 (2008) 35%

Developed innovation infrastructure (technology labs) 0 (2013) To be defined

All sectors (I) – activity and citation (2006-2011: average values)

All sectors (II) – activity and citation (2006-2011:average values)

Science in Latvia – comparative activity of publications

Science in Latvia – comparative activity of citations

Number of publications of Latvian scientists (2006-2011)

H-index (1996-2011)

2010-2011

Draft Content of RTIF 2014-20

1)Effective governance of the R&I system 1) Monitoring the implementation and evaluation of the effects of SSS measures

2)High-quality research in a public sector: 1) Critical mass and concentration of resources 2) Open access to knowledge and infrastructure and transfer of knowledge 3) Co-operation in R&D area within the EU and worldwide 4) Public funding for R&D

3)Establishment of capacities in support of R&D: 1) Strengthening human resources 2) Specialization 3) Research infrastructure development 4) Development of business-innovation infrastructure 5) ICT infrastructure supporting innovation system

4)Innovative economy: 1) Accelerating private investments into R&D 2) More innovative start-up companies 3) Faster growth of innovative companies 4) Strengthening companies’ innovation capabilities

5)Promotion of science, creativity and innovativeness in society and education

Next steps - I

1) Assessment of proposed knowledge specialization themes through dialogue between research, industry and regional stakeholders to identify knowledge-based priorities were industry and stakeholders are able and willing:

a) co-finance applied R&D activities;

b) use opportunities for business to specialize, to create high productivity workplace and to create high added value niche products and services;

c) to create necessary critical mass to provide further positive feedback for research.

Capacity of the industry to use/

effectively absorb knowledge and expertise in a

specialization themes

Next steps - II

2) Criteria for selection specialization themes: − Potential for creation of critical mass − Impact on the economy − Social value − Size of investment − Competition − Internationalization − Territorial aspect − Knowledge attraction through investment − Advantage in factors of production − Production chains − Time 3) Setting indicators and monitoring system

+ Regular evaluation and revision

of the fields of specialization

R&D: Gaps and Challenges

Ministry of Education and Science Ministry of Economics

Problem 1 Shortage of human

resources in R&D

http://epp.eurostat.ec.europa.eu/portal/page/portal/science_technology_innovation/introduction

LT

EST

LV

EU27

R&D expenditures in Latvia (million LVL)

Source: Central Statistical Bureau of Latvia

Expenses for R&D in the EU divided by sector, in 2010 in % of the GDP

LT

EST

LV

EU27

Number of people working in scientific research in Latvia according to the full working time equivalent by sector in 1993-

2011

Proportion of the number of people working in R&D (FTE) in the EU, % of all employed in 2010

LT = 0.88% EE=0.92%

LV=0.57%

EU27=1.15%

Science doctors divided by age groups, 2006 and 2009

9%

9%

28%

20%

19%

2% 7%

6%

Number of Defended Doctoral Theses in Distribution by Fields, 2011/2012

Education

Humanities and Arts

Social sciences, Law, Commerce

ICT, Mathematics, Science

Engeneering, Production

Agriculture

Healthcare, Social Welfare

Services

EU member States’ innovation performance

Source: Innovation Union Scoreboard 2013

LT LV

EE

Relative STRENGHTS are in Human resources and Finance and support

Relative WEAKNESSES are in Open, excellent and attractive research systems, Firm investments and Linkages & entrepreneurship

Key Gaps

1) Shortage of employees in science and research, incl. low number of STEM students and ageing of scientists

2) Insufficiently developed and fragmented science and research infrastructure, incl. clusters and territorial concentration; low number of laboratories with up-to-date equipment for the implementation of projects with a technological orientation

3) Weakly developed technology transfer facilitating innovation activities; insufficient knowledge commercialization; unsatisfactory collaboration between the science and business sectors

4) Low proportion of innovative enterprises

5) Low volume of funding in R&D, low private sector investment in R&D

Lessons learnt SF 2007-2013

1) Substantial delays in implementation policy intervention must be focused both in terms of objectives and financially while respecting implementation capacity and tailoring project size;

2) Application of state aid rules towards public research institutions hinders ability to effectively implement R&D measures

total public intervention (state budget + SF) must be balanced between support for non-commercial and commercial R&D initiatives

clear and effective regulation is needed to promote cooperation between public research institutions and industry for development of technology oriented infrastructure

R&D&I: Objectives and Policy Measures

Ministry of Education and Science Ministry of Economics

R&D&I Objectives and Policy Measures - I

1) High-quality research in the public sector

Measure Indicator

1) Establishing an evaluation system of public research institutions Criteria, Methodology

2) Effective use of public funds for R&D

Improved values of effect indicators

(output) compared to input

3) Association or integration of universities and smaller institutes funded mainly from public resources

Legal regulation

4) The introduction of stable funding of public research institutions, the extent depending on the results of evaluations

Legal regulation

R&D&I Objectives and Policy Measures - II

1) High-quality research in the public sector

Measure Indicator

5) Funding of fundamental research and encouragement of frontier research

Increase of funds for fundamental and frontier research

6) Encourage research projects of public research institutions in cooperation with innovative industry [SF support]

>50% of public funds for R&D are directed into projects, involving participation of

economy

7) Measures for increasing the scope of international cooperation and participation of the Latvian partners in international research projects [SF support]

Funds for international cooperation & research projects; Increasing the number of scientific publications in co-authorship with

foreign researchers; Amount of foreign funds, obtained by Latvian researchers through intern. cooperation projects

8) Regulation of intellectual property rights among stakeholders in commercialization of research results

Regulation (DONE)

R&D&I Objectives and Policy Measures - III

2) Building human & infrastructure capacities in support of R&D

Measure Indicator

1) Encourage study in STEM (scholarships, promotion)

Increasing the number of graduates in STEM in tertiary education

2) Encouragement of interstate mobility of researchers [SF support]

Share of PhDs who have for at least 3 months studied or researched abroad in the

last 10 years

3) Overcoming skills shortages, mismatches and building future skills in the fields of specialization [SF support]

Funding share for skills improvement, intended for fields of specialization;

4) Concentration of the funds for a new research infrastructures (RIs) on the selected areas [SF support]

Increasing of the funds for a new RIs on the selected areas

5) Inclusion in international RI (ESFRI, BIRTI)

International RI, at which Latvia is participating as co-investor or user – funds

for this purpose as % of all funds for RI

R&D&I Objectives and Policy Measures - V

3) Innovative economy [EM prezentācija]

Latvijas Zinātnes padomes 18.04.2013. sēde

2. Informācija par tematisko tikšanos ar Eiropas Komisiju š.g. 11.aprīlī par SF ieguldījumiem

pētniecībā, attīstībā un inovācijās

11.04.13. tikšanās ar EK par SF ieguldījumiem R&D&I 2014-2020

Piedalījās EK, FM, EM, IZM, I.Muižnieks (BIRTI), J.Vētra (AIP) Prezentācijas un Latvijas SSS sākotnējā pozīcija pieejama www.esfondi.lv Netika diskutēts par SF aktivitātēm, bet par stratēģisko ietvaru un nozares politikas

attīstības virzieniem un pasākumiem (t.sk. SSS, tās izstrādes principi, paveiktais, tālākie soļi, indikatīvie sasniedzamie rezultāta rādītāji, galvenie izaicinājumi). EK viedoklis par SF investīciju priekšlikumu – pēc politikas plānošanas dokumentu saņemšanas.

EK komentāri: − SSS jābūt reālai stratēģijai ar finansējumu un definētiem pasākumiem, t.sk. iekļaujot

augstākās un profesionālās izglītības sektoru; − Jānodrošina SSS un NIP2020 savstarpējā sinerģija; − SF intervenci fokusēt uz inovāciju, nevis fundamentālo zinātni; − Neatbalsta jaunas pētniecības infrastruktūras attīstību, bet esošās stiprināšanu; − Investīcijām R&D&I – jādefinē ietekmes uz ekonomisko izaugsmi un darba vietu

radīšanu indikatori; − 3 zināšanu specializācijas jomas – sakrīt 99% Eiropas valstu, jādefinē šaurāk; − State-of-the-art zinātne nav vienīgais inovāciju priekšnoteikums

EC: “Innovation is not R&T only – Latvian SSS should also approach medium-level and day-to-day innovation”

Laika grafiks

25.04.2013. – Koalīcijas partneru ES fondu darba grupas sēde (FM ziņojums par sarunām ar EK)

Maija sāk., 2013 – Darbības programmas projekta nodošana sabiedriskajai apspriešanai;

Jūnija b., 2013 – Darbības programmas projekta iesniegšana neoficiālai saskaņošanai EK;

Oktobra b., 2013 – plānots, ka tiks apstiprinātas SF Regulas;

Novembris, 2013 (pēc Regulu apstiprināšanas) – Darbības programmas iesniegšana oficiālai saskaņošanai EK