Experience with the European Social Fund in Innovation Financing

1. 11th International Scientific Seminar on Developments in Machinery Design and Control Červený Kláštor ‘2007 • EXPERIENCE WITH THE EUROPEAN SOCIAL FUND IN FINANCING THE INNOVATION PROCESS AT THE BRNO UNIVERSITY OF TECHNOLOGY • Jindřich PETRUŠKA • Brno University of Technology, Faculty of Mechanical Engineering, Technická 2, 616 69 Brno, Czech Republic, e-mail: petruska@fme.vutbr.cz

2. European Social Fund (ESF) - Introduction On accession to the European Union in 2004, the Czech Republic gained theopportunity to share in the use of resources from the Structural Funds and theCohesion Fund. The oldest of these funds is the European Social Fund (ESF), whichwas set up under the Treaty of Rome back in 1957. The ESF is the key financialinstrument for the implementation of the European Employment Strategy. Its principaltasks are to develop employment, reduce unemployment, and support socialinclusion and equal opportunities with a focus on the development of the labourmarket and human resources.

3. Human Resources Development Operational Programme 2004-2006 The global objective of the HREOP is to increase the employment andemployability of people in the Czech Republic to the average level of the 15best EU countries. The Operational Programme defines five basic specific priority axes, covering theadaptability of employees and employers, further education, employment andemployability, including the integration of groups at risk of social exclusion, equalopportunities, the modernization of public administration and public services, andtransnational cooperation in the field of human resources development andemployment.

4. Priority axis 3.2: Support of tertiary education, research and development 3 Calls in the Priority Axis 3.2, organized by the Min. of Education of the Czech Republic: Jan.2005, Dec.2005, Aug.2006 Applications: Total number 398, total sum 65 mil. Euro Accepted: Total number 180, total sum 25 mil. Euro

5. Supported programs in Priority axis 3.2: • Innovation of University education programs • Development of teacher training programs • Development of further education at Universities • Development of human resources in Research and Development

6. Innovation of University education programs • Development of quality of undergraduate, postgraduate and doctoral study programs, modular structure of study and realization of suggested programs (within a 2–year period of typical project duration) • Cooperation of schools with external partners • Applications: • Presented – 180 • Accepted – 88, tot. sum 14 mil. Euro

7. Development of teacher training programs • Development of teacher study programs of basic and higher education and their realization • Applications: • Presented – 78 • Accepted – 43, tot. sum 5.5 mil. Euro

8. Development of further education at Universities • Enhancement and realization of further education programs at Universities, compliant with active employment policy of state • Applications: • Presented – 106 • Accepted – 35, tot. sum 4 mil. Euro

9. Development of human resources in Research and Development • Enhancement and realization of further education programs oriented to financial management, innovative business, research, technology transfer and intellectual property management • Applications: • Presented – 34 • Accepted – 14, tot. sum 2 mil. Euro

10. Distribution of financial support (25 mil.Euro) in Priority axis 3.2: • Innovation of University education programs – 49% • Development of teacher training programs – 24% • Development of further education at Universities – 19% • Development of human resources in Research and Development – 8%

11. Problem: Complicated procedures of application, approval and administration of accepted projects • Basic principle: all financial costs of the project are paid aposteriori, • Min. of Education checks the project administration and financial costs in 3-month intervals, periodical „Monitoring reports“ are presented by project leaders • Complicated system results in probles with EU funds drawing: of the 25 mil. Euro for the Priority 3.2 in 2004-2008 period, only 27% has been usedby now

12. Project preparation, application and administration – illustrative example: • Innovation of Mechanical Engineering Study Programs in the Context of Information Society • Applicant: Brno University of Technology, 4 cooperating Institutes • - Mechanics, Mechatronics and Biomechanics • - Automation • - Design • - Electronics and Power Electrotechnics • Solution time: June 2006 – June 2008 • Budget: 285.000 Euro • - salaries 80% • - travel costs 6% • - material costs 11% • - other 3%

13. Project preparation, application and administration – illustrative example: • Innovation of Mechanical Engineering Study Programs in the Context of Information Society • Partners: ABB s.r.o. Bosch Diesel • Honeywell, spol. s r.o. První brněnská strojírna Velká Bíteš a.s. Siemens Electric Machines s.r.o. Slovácké strojírny, a.s. UNIS, spol s r.o. Visteon - Autopal, s.r.o. ŽDAS, a.s. The aim of this project is to improve the quality of selected programs of mechanical engineering study to give our students the flexibility, necessary for their successful competition in contemporary industrial world. There are five of the selected programs that should be modified: one bachelor’s program - Mechatronics, and four master’s programs – Engineering Mechanics, Mechatronics, Engineering Design and Applied Informatics and Control. About 50 people from two faculties of BUT participate in the project.

14. Project preparation, application and administration – illustrative example: • Innovation of Mechanical Engineering Study Programs in the Context of Information Society • Application procedure -2nd call, Dec. 2005: • Applicant’s handbook – 48 pages, here • Submitted application – 34 pages, here • + 42 pages of Appendices • (e.g. Agreements with Partners about future cooperation) • Application acceptance and project assignment – June 2006: • Agreement between Min. of Education and BUT – 13 pages, here

15. Project preparation, application and administration – illustrative example: • Innovation of Mechanical Engineering Study Programs in the Context of Information Society • Project Administration: • Project administration handbook – 115 pages, here • Monitoring reports handbook – 40 pages, here • Monitoring report is submitted to Ministry 4-times a year, containing all financial and factual activities in the project, which are paid by Ministry only after official approval of each MR

16. Project stages – key activities: • Innovation of Mechanical Engineering Study Programs in the Context of Information Society • Formulation of needs, • Analysis of foreign curricula, • Suggestion of modular structure of study, • Innovation of the content of selected courses, • E-learning and computer aided education, • Enhancement of laboratory activities, • Realization and evaluation of new programs, • Publicity

17. Project stages – key activities: • Formulation of needs - question forms sent to former students and industrial partners + their analysis:

18. Project stages – key activities: • Innovation of curricula, study texts, e-learning – about 50 courses • fully described at http://www.umt.fme.vutbr.cz/ESF/?q=cs/node/16

19. Project stages – key activities: • Innovation of laboratories and lab courses

20. Project stages – key activities: • Organization of meetings and seminars, publicity • see http://www.umt.fme.vutbr.cz/ESF/?q=cs/node/7

21. Project stages – key activities: • Realization of innovated study programs – just starting

22. Operational Program Education for Competitiveness 2007-2013 Priority axis 2: Tertiary education, research and development Allocated funding from ESF: 1 828 mil. Euro ( + 270 mil. from the Czech Government) First call: Nov.2007 Next calls: till 2013, projects funding till 2015 Up to 750.000 Euro per 1 project Similar system of project assignment and administration

23. Thank you for attention, Thank EU for funding