On the Knowledge Based Economy in Bosnia and Herzegovina

1. On the Knowledge Based Economy in Bosnia and Herzegovina Prof Lamija Tanović

2. Research, Science, Technology Research, science and technology are the basis for progress of every society, its economy, its ethics and its ability to survive. Progress in science, technology and economy comes from successfully applied knowledge.

3. Successful economies -- what are they like? The growth of modern economies is increasingly based on knowledge and the creation of knowledge. The first step in that process is investing in human capital. An economy characterised by knowledge, one that is aware of the importance of research, technology and innovation in the creation of knowledge, is a successful economy. Successful economies are directly based on the production, distribution and utilisation of knowledge and information. Successful economies create much of their products through knowledge and innovation.

4. Where is BiH in that process? Judging by economic indicators, BiH is still far from being a knowledge based economy. There are a number of reasons for this: 1) a fragmented, impoverished and extravagantly administered education system; 2) a poorly organised lifelong learning process; 3) lack of meaningful links between the education system and the labour market, 4) very meagre funds invested in research, 5) brain drain. These are the five initial reasons why BiH is not a knowledge based economy and probably won't be one for a long time.

5. Specific State Structure The specific state structure of Bosnia and Herzegovina significantly affects the efficient organisation of the research and science sector. There is no state-level ministry for science, technology and development, which is undoubtedly one of the main reasons we are lagging so far behind in this area.

6. Allocation for Science in BiH Before the war, allocations for science in Bosnia and Herzegovina amounted to 1.5% of the GDP. Today, they are between 0.03 and 0.05% of GDP. Successful economies allocate in RTD over 2% (Finland and Sweden over 3.5%) of their GDP we can not be compared with.

7. “Brain Drain” 70% of the best university and research institute staff left the country during the war (1992-1995) and in the post-war period. There are no young researchers because the conditions for working in research are absent. The scientific research sector was particularly hard-hit by brain drain.

8. Grave Consequences In the past 20 years, brain drain has reached an alarming rate of over 70%. Lack of young researchers. No research results from own scientific institutes. Meagre opportunities for international cooperation.

9. Research Infrastructure Much of the research infrastructure, laboratories, research equipment, was destroyed during the war. The little that managed to survive wartime destruction is now obsolete. Laboratories at the Faculty of Mathematics and Natural Science (University of Sarajevo), 1995

10. Research Units Many research units in our country have closed down. Those that managed to survive had to re-purpose themselves into routine services.

11. What should be done urgently?

12. What should be done urgently? (I) We must urgently reconstruct and renew scientific research infrastructure (electronic databases, laboratories, equipment, materials)

13. What should be done urgently? (II) Establish intensive scientific cooperation within the country, in the region, and with international partners.

14. What should be done urgently? (III) Scientific research policy: Decision-making process Developing a list of priority areas for science and technology development Creating a state-level legal framework for scientific research and technological development Creating a network of science and development institutions Policy to renew human resources in the science and technology sector. Revitalisation of scientific and research institutions and their research capacities Investment in education and specialist training for young researchers and scientists.

15. Conclusion If the main orientation of BiH's foreign policy is membership in the European Union, then it is high time that we start urgently organising our Research-Technology-Development (RTD) sector as the essential basys for the better economy.

16. Scientific research priorities Environment Energy Efficiency Agriculture and Food Production Public Health Industrial Technology for the reconstruction of destroyed buildings and infrastructure (technologies of construction materials)