“Science and innovation – two major factors for development assurance of Republic of Moldova”

1. “Science and innovation – two major factors for development assurance of Republic of Moldova” INTERNATIONAL- SEMINAR “Scientific and Technological Innovation : National Experience and International Cooperation” 15TH May 2007, Alexandria Валентина ФЕТИНЮК, Молдова

2. General country overview • Area: 33,800 km2 • Population: 3.58 million • Capital: Chisinau - 717,000 citizens • National Legislature: Unicameral assembly • National currency: Moldovan Leu (MDL) Валентина ФЕТИНЮК, Молдова

3. The major condition for RM to pass to the new economy, based on knowledge is innovations model economic development: transforming innovations and innovation activity into the major social-economic development factor of Republic of Moldova Валентина ФЕТИНЮК, Молдова

4. European integration is the main concern for the development of the countries, as for the scientific and innovation policy convoluted for RM is considered the situation of EU member states innovation policy, stated in "Lisbon strategy", approved by the European Council in March 2000 and reconsidered in 2005 year under the name of "Lisbon Strategy of Economic Growth and Employment" Валентина ФЕТИНЮК, Молдова

5. Economic aim of innovation policy is to fulfill internal market with high technological products for the international level with very new elements for the products global standards Валентина ФЕТИНЮК, Молдова

6. Middle of 21st century Creation of new technologies Transition to scientific-technical revolution KNOWLEDGE SOCIETY Валентина ФЕТИНЮК, Молдова

7. Final purpose of innovation activity development on RM territory creation of a entire national innovation system (mechanism) for innovation directing – correlated combinations of the innovation creation field, its trade distributions, duplications within the production sphere that will be based on: • The establishment of an adequate economic and law environment; • The construction of entire innovation infrastructure; • The performance of state mechanisms for the scientific ideas and co-acting for its trading Валентина ФЕТИНЮК, Молдова

8. Change of economy of Moldova into an innovative way of development is accepted at the state level as a strategic direction of development of the country and it is reflected in following documents: • The Code of Republic Moldova on sciences and innovations No. 259-XV, July, 15th, 2004; • The program of social-economic development of RM for a medium-term period (2008–2011 years); • The National Strategy project of Innovative Development of Moldova for the period 2008-2011 years, chapter „Innovation policy”; • The National Strategy of Innovative Development of Moldova for the period 2008-2011 years Валентина ФЕТИНЮК, Молдова

9. In the basic documents of strategic planning at a national level, additional clauses have been entered: • Strategy of economic growth and poverty reduction (SCERS) (2004 – 2006, 2007),– clause „6.7. Science and Innovations”; • National Program „Moldavian Village” (PNSM) (2005 – 2015) – clause „3.14. Scientific and innovative support for the realization of the PNSM”; • Plan of Actions ЕU – RМ (2005 – 2007) – clause „2.6. Transport, energy, telecommunications, environment and science and innovations”, • Strategy of industrial development till 2015 year – clauses „4.4. Scientific and innovation potential”, „7.4.Development of the innovation process ant technology transfers” and „7.7. Increase of production quality. Perfection of the standardization system and certification of production”. Валентина ФЕТИНЮК, Молдова

10. Necessity for the development of The National Strategy of Innovative Development of Moldova for the period 2008-2011 has been caused by: • The increase of the role of innovations as factor of stability of social and economic development and growth of well-being; • The formation in RM of the effective socially-focused market economy which will be based on modern technological customs; • The inadequate development of the legislation of Republic Moldova in innovative sphere and absence of the concept of innovative policy of RM; • Updating the old-fashioned industrial equipment, increase the demand of skillful personnel; • The lack of necessary conditions for active attraction of the saved up scientific and technical potential of Republic Moldova in the processes of modernization of manufacture and development of hi-tech sector of economy. Валентина ФЕТИНЮК, Молдова

11. Introduction of the National Strategy of Innovative Development of Moldova will pass through 2 stages: • At the first stage (period of 2008-2009) is supposed to create the structure and bases of the national innovative system mechanisms and the beginning of its activity • The purpose of the second stage (2009-2011) is strengthening national innovative system. Валентина ФЕТИНЮК, Молдова

12. The Republic of Moldova possesses rather developed scientific and technical base which is presented by following structures: • 67 organizations, carrying out researches and development, (42 research and 12 design offices of the organizations, 9 higher educational institutions in which scientific work is organized, 4 scientific and technical divisions in the industrial enterprises). Besides this there are 49 colleges for preparation of experts on different specialties function, in RM; • 6 free economic zones, technological parks. On a rating the most popular among investors free enterprise zones are "Expo-Business-Chisinau" (1995 - the leader on manufacture of the goods), industrial park "Taraclia" (1998), free enterprise zones software "Valkanesti" (1998), "Tvardita" (1998), "Otaci-Business" (1998), " Ungheni-Business". (2000). 75 % from production in the given zones is planned for export. Валентина ФЕТИНЮК, Молдова

13. Moldova possesses developed scientific and technical base which is presented by: • The Academy of sciences of Moldova (ASM), a number of departmental and interbranch information centre. For interaction of the chapter of RM with the scientific organizations and scientists, development of offers by definition of priority directions of development of science, innovative activity and technical policy of RM was created the Supreme Council of Science and Technological Development of the ASM< • The expert Innovative group of leading experts in the field of an innovation Is created at Ministry of Economics RM; • Agency of Innovations and Technology Transfer (АIТТ) of Academy of Sciences of RМ which has been created for assistance of modernization of RM economy, on the basis of innovative technologies and formation of organizational-economic mechanisms of the transfer and commerce of technologies. Валентина ФЕТИНЮК, Молдова

14. Perspectives of science and innovations field development are reflected in the National Plan of RM development for the 2008-2011 period, where it is mentioned that: “Steady development of the RM economy, based on science and innovations, can be successful only at maintenance of scientific support in realization of national priorities. It assumes creation of favorable conditions in expansion of scientific researches for the covering of economy needs in science and innovations, and also increases the level of their efficiency.” Валентина ФЕТИНЮК, Молдова

15. Strengths the state research potential the quality of higher education Weaknesses budget expenses on scientific and technical field expenses the industries on scientific researches the usage of patents the usage of budgetary scientific researches results in SMB the low level of participation in the research programs financed by EU highly technological export part the lack of venture capital, funds of the "sowing" capital, entrepreneurial (innovative culture) development Moldova National Innovative SWOT analysis Валентина ФЕТИНЮК, Молдова

16. Favorable opportunities Understanding and support of the government necessity of innovative development of RM Growth of interest to network interaction, it’s state (private partnership) promotion Access to the Internet, use of IT Potential for increase in a role of the financial markets Geographical affinity to EU and large commodity markets Presence of foreign bank establishments within the domestic capital market Offers of the international financial organizations and the countries-donors to render the technical and financial help in development of the country Dangers Ageing personnel potential, ageing of researchers Inflexibility of scientific researches system Regional disbalance, concentration of scientific potential in capital of RM Political uncertainty political determination to innovations Brain drain; low appeal to scientific career A low level of internationalization Corruption Moldova National Innovative SWOT analysis Валентина ФЕТИНЮК, Молдова

17. Agreement of partnership between the Government and Academy of Sciences of RM On the base of: • Basic requirements of the Science Code • Recognition of science as a strategic national priority • Definition of science as motive power of long-term development of the country • Necessity of science financial support • Stimulation of innovations process and technologies transfer Валентина ФЕТИНЮК, Молдова

18. The science financing Валентина ФЕТИНЮК, Молдова

19. The science financing Валентина ФЕТИНЮК, Молдова

20. Dynamics of financing growth of science and innovations of sphere according to the Agreement between the Government andASM(% fromGDP) Валентина ФЕТИНЮК, Молдова

21. State programs selected and financed on the basis of open competitions concern to forms of state policy promotion in science and innovationssphere Institutional projects 315 Projects within State program 66 Budget Financing Technological transfer projects 24 Equipment grants(from 2007) 20 Youth grants (from 2007) 36 Валентина ФЕТИНЮК, Молдова

22. The basic programs and actions in the field of innovative potential and technological progress maintenance of Moldova include following directions: • Creation and promotion of effective attraction mechanisms of high technologies; • Optimization of science and innovations sphere by creating scientific clusters, platforms, and also attraction of intellectual and techno-practical potential for the decision of corresponding problems of national economy and researches in sphere of small and average business; • Improvement of scientific institutes techno-material resources; • Improvement of national system scientific researches by stimulating participation in the main European and international programs research activity of the organizations from the field of science and innovations (FP7, EUREKA, COST, GEANT, CRDF, STCU); • Science and innovations promotion by creation of scientifically-technological parks and innovative incubators, and also applications national and foreign researches in economic activities results; Валентина ФЕТИНЮК, Молдова

23. The basic programs and actions in the field of innovative potential and technological progress maintenance of Moldova include following directions: • The effective organization of science centre and laboratories; • Introduction in national statistics system of innovative incubators; • Promotion of financial resources access within the limits of intensive technological development, especially with the use of alternative financial tools („angels investors”, „capital seminal”, micro-credite etc.); • Reforming and development of scientifically-innovative system in all areas; investments attraction into development of universities which are more successful in research activity than ASM of RM; • Cooperation of universities and business; • Improvement of statistics by inclusion of real and concrete parameters of business sphere; • Creation of regional ideas incubators, with attraction of youth there; • Creation of uniform information system with databases about innovative projects, subjects of innovative activity, condition of supply and demand in the markets of innovative production; • Development of system ventures financing, creation and functioning. Валентина ФЕТИНЮК, Молдова

24. Approaches to innovative process in the various countries are unified, however, there are certain features Thus, obligatory NIS components for Republic of Moldova should become: • National Strategy of innovative development • The state innovative policy • Organizational forms of innovative process • System of innovations distribution • Mechanisms of innovative activity financing Валентина ФЕТИНЮК, Молдова

25. Thank you for your attention!Спасибо за внимание!Vă mulţumim pentru atenţie!The Institute of Economy, Finance and StatisticsRepublic of MoldovaI. Creanga 45 str.Tel. +373 22 748736Fax +373 22 743794iefs@iefs.mdwww.iefs.md Валентина ФЕТИНЮК, Молдова