Growth through Research and Innovation in the Western Balkans — The Moment for Action

1. Western Balkans Regional R&D Strategy for Innovation Growth through Research and Innovation in the Western Balkans —The Moment for Action Kristina Ferara Blašković, MinistryofScience, EducationandSports Paulo Correa, World Bank December12, 2013. Zagreb

2. The Western Balkans R&D Strategy for Innovation Technical Assistance: An 18 Months Fact-BasedConsensus Building Exercise • Video: Research for Innovation: The moment for action Website: http://www.worldbank.org/en/events/2013/10/24/balkans-innovation-event 4 High Level Workshops with representatives from governments, research institutes, universities and private sector from all beneficiary entities, as well as international experts 7Policy Reviews of key institutions, policies and programs:Country Papers 12Visits to the region Outreach exercise and broader consensus building between 12/2011 and 8/2013 • 3 Technical Studies (The State of Scientific Performance of the WBCs; Survey of the status of research Infrastructure and technology transfer activities; and Assessment of Data Availability on Research and Innovation) and 5 technical notes : Overview and Main Reportof the Status of Research and Innovation in the Western Balkans. • Inception Report —Regional R&D Strategy for Innovation in the Western Balkan Countries: Key Issues and Implications for Technical Assistance, World Bank (2011).

3. What/? Summary View: The status of the Research and Innovation Sector

4. The Impactof R&D andInnovationintheWesternBalkans • Innovative firms grow faster: 15 percent faster (in sales) and 8 percent faster in labor productivity than non-innovative firms. • Firm R&D expenditures significantly contribute to performance: raises sales (by 12 percent) and labor productivity growth (by 6 percent) on average in the Western Balkans (without Croatia). • When firm R&D, training and infrastructure services sales are compared, R&D is shown to have the highest correlation to sales growth (excluding Croatia) Source: Seker, M. (2013) – Background paper for the technical assistance on the Western Balkans R&D for Innovation Strategy

5. The WesternBalkans’ Investmentin R&D • Gross expenditure on R&D in the WB has declined dramatically in the past two decades. • The region is investing approximately €495 million in the R&D per year • The variance of R&D intensity within the region • The regions R&D intensity – 0,33 % of GDP • Scientific performance – substantially bellow EU average • The average number of citation per document in the WB (0,62) in 2003-2010 was about half of the EU 27 average (1,27) • Science- industry collaboration ranking of 144 countries, the WB’s average stands at the 88th position (EU27- 40th)

6. Low R&D Investment Levels

7. Costly Results of R&D Investments GERD/ Total Triadic patents US$ 1,000

8. The Vision Policy Reforms and Selected investments A “sector – wide” approach Strategic Viewinvest more and Better in R&D

9. The Way Forward

10. Reforms and Investments tofoster effective research commercialization and industry science collaboration

11. Regional Programs • A research excellence fund to increase international collaboration with the scientific Diasporaand expand opportunities for young researchers. • Regional networks of excellence in selected fields – consistent with a strategy for “smart specialization” of the region. • A technology transfer facility to support and provide assistance at national level • An early stage innovation facility tocomplement the support to be provided by the Western Balkan Enterprise Development and Innovation Facility (EDIF). The Western Balkans Innovation Strategy Exercise — (WISE)

12. Ministerial Conference on the Western Balkans Regional R&D Strategy for Innovation, October 25, 2013 - Zagreb

13. https://www.dropbox.com/s/9snv89ge9jr36kv/131018%20Research%20for%20Innovation%20FINAL.mp4https://www.dropbox.com/s/9snv89ge9jr36kv/131018%20Research%20for%20Innovation%20FINAL.mp4

14. Thank You!