STREAMLINING OF R&D TENDERING : Component 2

1. STREAMLINING OF R&D TENDERING: Component 2 Paulo Magina & Neringa Virbickaitė Public Procurement Unit, OECD Lithuania: Closing event Vilnius – March 13, 2019

2. Agenda Project Information Assessment Main findings Proposals

3. Project Information

4. Project Information • Lithuania reached out to the EC and the OECD, recognizing the importance of the development of simplified unified system for purchasing innovation in general. • Project is financed by the Structural Reform Support Programme of the European Commission • The OECD provides technical support to Lithuania. Main counterparts are: • Ministry of the Economy and Innovation • Ministry of Education, Science and Sport

5. Challenges • The main objective was essentially on identifying any potential opportunities to develop a simplified unified system for purchasing innovation in general. • However, early on in the assessment process of these schemes and programmes additional issues were identified: • relating to the concept of research and development (R&D) • relating to the purpose of some of the minor programmes • relating to the procurement for innovation programmes and to what extent they are achieving their objectives • to what extent can public procurement rules or methods be applied in allocating research funds?

6. Chronological Flow of the Project

7. ASSESSMENT

8. Purpose Assessment of the current system in place, with the purpose of mapping those: • different administrating schemes, • boards of the funds, • objectives of the schemes, • the target groups, • the funding streams and • the legal framework

9. Programmes/schemes assessed OECD assessed these schemes/programmes identified by the Lithuanian authorities: • National R&D Programmes (officially called "National Science Programmes") • Long-term institutional R&D programmes • Pre-commercial Procurement scheme • Innovative Public Procurement scheme • Scheme for research and higher education institutions to purchase R&D services • Need-based R&D projects.

10. Activities • Assessment of the current legislation (EU and Lithuanian) • Meetings with stakeholders: • Ministry of the Economy and Innovation (MoEI), • Ministry of Education, Science and Sport (MoESS), • Lithuanian Research Council (RC), • Agency for Science, Innovation and Technology (MITA), • MykolasRomeris University

11. MAIN FINDINGS

12. Long-term institutional R&D programmes Long-Term institutional R&D programmes consists of two parts: • Funding of State research institutes (13) - predominantly funding research - basically are not developing new products, services or processes - do not directly support innovation projects (2) Funding of programmes initiated by MoESS - ad hoc projects aimed at solving state and society problems (same as Need-based R&D projects) - scheme does not contain any provisions as to how the proposals in the contest for best idea shall be assessed or how the best idea is chosen - none projects were implemented (actual need of this part of the scheme?)

13. National R&D programmes OECD suggests that it is not practical to apply public procurement rules for national R&D programmes. Nevertheless, there are some issues in those programmes: • lack of timely approval of related legislation • possible conformity issues with EU legislation (requirement for host institution to be Lithuanian research and education institution included in the Register of Education and Research institutions) • predominantly funding research • basically are not developing new products, services or processes • there is lack of transparency in the evaluation of proposals, such as the selection process, required level of competence for researchers • lack of an opportunity to lodge an appeal against the decision on scoring and expert assessment

14. Need-based R&D projects Findings: • This programme as such does not support the implementation of new products, services or process • possible conformity issues with EU legislation (requirement for host institution to be Lithuanian research and education institution included in the Register of Education and Research institutions) • there is lack of transparency in the evaluation of proposals, such as the selection process, required level of competence for researchers • lack of an opportunity to lodge an appeal against the decision on scoring and expert assessment • the nature of the programme itself indicates that procurement rules could be applied

15. Scheme for research and higher education institutions to purchase R&D services • Scheme for research and higher education institutions to purchase R&D services is not a scheme per se • “scheme” is applied under the exception stipulated in Article 15 (2) (1) of PPA and in Article 26 (2) (1) PA and is used exclusively by science and study institutions • article 15 (2) (1) of PPA and article 26 (2) (1) of PA is contradictory to article 15 (1) (1) of PPA and respectively to article 26 (1) (1) of PA

16. PCP, Innovative Public Procurement scheme PCP and innovative PP schemes face same issues: • low number of PCP and innovative procurement (few PCP, none innovative partnership) • lack of promotion of innovative procurement • limited training in the field leading to lack of competence to carry out these procedures

17. PROPOSALS

18. General • The legislation on different schemes and programmes should be improved and supplemented with clear provisions related to the funding of development and innovation phases (i.e. eligible expenditure etc.).

19. Long-term institutional R&D programmes • As the Long-Term institutional R&D programmes are meant to fund State research institutes, the part of the programme that is funding ad hoc small projects (programmes) initiated by MoESS, should be considered for withdrawal from the legal framework of this programme. • The ad hoc small projects could be merged with the scheme of Need-based R&D projects and/or possibly apply traditional public procurement methods (for example using design contest procedure)

20. National R&D programmes • Responsible Lithuanian authorities should take more time and attention to prepare and approve related legislation. • The practice used in public procurement to set selection criteria, award criteria (qualitative and/or quantitative) and technical specification requirements could be used in preparing contest documents to implement national R&D programmes. • The practice used to set requirements in the Descriptions for implementation of programming period 2014-2020 could be used as well. • As the provisions (related to discrimination on grounds of nationality) of General rules for competitive funding of science and dissemination projects, approved by Order No V-45 of Chairman of Research Council on January 29, 2018, poses serious conformity issues with the EU legislation, Lithuanian authorities should analyse the existence of objective considerations and if there are none, such legislation should be repealed to ensure a broader participation and respect for the EU legislation. • As the new Law on Technology and Innovation came into force on January 1st 2019, MoESS and MoEI should work together to create a unified, clear and transparent legislation for implementation of National Science and Technology programmes, including procedures of contest, evaluation of proposals (including qualitative and/or quantitative evaluation criteria), appeal procedure (including possibility to appeal against the decision on scoring and experts’ assessment), etc.

21. Need-based R&D projects • The repeal of the scheme of Need-based R&D projects should be considered. • The research services could be purchased using traditional public procurement procedures by interested institutions (which are contracting authorities), or • The legislation should be improved by introducing transparent and clear provisions and criterions for the evaluation of proposals. Introducing an appeal procedure to appeal the decision on scoring and experts’ assessment of proposals should be considered as well.

22. Scheme for research and higher education institutions to purchase R&D services • Authorities should consider revoking the legislation (approved by the order No. V-448 of the Minister of Education and Science of 9th may 2018) of the scheme for research and higher education institutions to purchase R&D services under exception provided for: in article 15 (2) (1) of Public Procurement Act (PPA) and in article 26 (2) (1) of Law on Procurement Implemented by Contracting authorities Operating in the Water, Energy, Transport and Postal Services Sectors (PA) • Respectively eliminating the aforementioned articles in the PPA and PA.

23. PCP, Innovative Public Procurement scheme • PCP, innovation partnership and other innovative procurements should be promoted by: • developing a national strategy for the promotion of Innovation procurement • developing (by those in charge) training material and providing respective training on regular basis.

24. Ačiū!