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Fraunhofer Center for Central and Eastern Europe MOEZ Mathias Rauch, Deputy Director Member of the UNECE Team of Specialists on Innovation and Competitiveness Policies.
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Fraunhofer Center for Central and Eastern Europe MOEZ Mathias Rauch, Deputy Director Member of the UNECE Team of Specialists on Innovation and Competitiveness Policies Innovation Strategy of the Republic of Moldova – First Observations and Comments on Objectives (Part D, Firms)and Potential Ways of Implementation October 27, 2011, ASM, Chisinau
Structure of Presentation 1 3 Approaching the strategy: key questions and sequential breakdown Conclusion and key messages 2 Strategy objectives (Part D, Firms): 2.1 General objectives 2.2 Specific objectives 2.3 Necessary measures for achieving the objectives 2.4 Next Steps: Development of Programs
Key Messages • BE AMBITIOUS, BUT REALISTIC! • Complicate your economy! (Modernization, Diversification, Value added, Complexity) • KEEP IT SIMPLE! Importance of transparency and simplicity of implementation and administration of the Strategy and subsequent programs cannot be overestimated. • Activities (Programs) of the Strategy need further elaboration • Monitoring and evaluation are key to success! Constant improvements possible, i.e. in terms of output, outcomes and impact of the Strategy and subsequent programs
Selecting Appropriate Tools and Mechanisms for the Innovation Strategy • Key questions: • Which tools and mechanisms are appropriate for finalization, implementation, monitoring and evaluation of the strategy? • What can be learned from similar cases elsewhere? • Approach: Complex structure and functioning mechanisms of the strategy can be made more transparent ( logic chart) • To fully comprehend the strategies’ internal logic a sequential breakdown is helpful:
Logic Chart of the Innovation Strategy (Part D, Firms) Mission Innovation and entrepreneurship based development, competitive economy Targets (Objectives) Text on general objectives, 12 specific objectives named, indicators defined Activities (Measures, Programs, Instruments) • Shouldbewelldesignedtospecificallyservethe (onerespective!) objective • Shouldconcentrate on frameworkconditions, investmentsintoinfrastructure, nosectorfocus • Business supportservices (coaching, finance, …) • Education andtrainingforentrepreneursandworkforce
Logic Chart of the Innovation Strategy (Part D, Firms) Output • … • … • (3) … Outcome • … • … • … • Modernization, diversification of the economy • Enhanced competitiveness • Additional employment and tax revenues Impact
Structure of Presentation 1 3 Approaching the strategy: key questions and sequential breakdown Conclusion and key messages 2 Strategy objectives (Part D, Firms): 2.1 General objectives 2.2 Specific objectives 2.3 Necessary measures for achieving the objectives 2.4 Next Steps: Development of Programs
2.1 General Objectives (Part D, Firms) Goodstartingpoint, alreadytakingintoaccount: • General objectiveaimstofosterthe development of innovative companies, with high flexibility and technological excellence; • Absorb already tested technologies, prepare specialists in established areas, and continue technology and product development; • Non-technological and organizational innovation, innovation culture and absorptive capacity; • Facilitatecompanies’ accesstopublicresearchinfrastructureandstimulatescience-industrypartnerships; • Support and stimulate cooperation between R&D institutions and companies, with positive impact on company development and implementation of R&D results; • Companies with high technological capacity must be supported at all stages of development of innovative technologies; • Business internationalization and export orientation as key growth options, while also focusing on local opportunities in the Republic of Moldova.
2.2 Specific Objectives (Part D, Firms) (1) • D1. Increasing business expenditure on R&D and innovation (BERD) to the level of EU27 average (year 2009: 1.25%) by 2020; • That means from zero to hero! None of the EU-10 countries reaches that level! • D2. Increasing the share of SMEs developing in-house innovation activities to at least 40%; • D3. Increasing the share of SMEs implementing innovative products or processes to at least 35%; • D4. Increasing the share of SMEs developing joint innovative activities with other firms to at least 10% which will ensure the emergence of important network synergies in the national R&D and innovation systems;
2.2 Specific Objectives (Part D, Firms) (2) • D5. Increasing the number of public-private publications to achieve at least 40 per 1 million population, in correlation with the increasing co-financing of R&D by the public and private sector; • Very ambitious! Average EU-15 (year 2008) is 43.4! Who is going to be the private business counterpart? (See also comment on BERD) • D6. Increasing the number of patent applications to at least 5 patents per EUR 1 billion GDP; • A patent has no per se value. Cost-benefit analysis, mechanisms for exploitation of IPR and commercialization necessary • D7. Increasing the number of applications for trade mark registration to at least 10 applications per EUR1 billion GDP; See comment above • D8. Increasing the number of requests for community designs to at least the double of the current level; See comment above
2.2 Specific Objectives (Part D, Firms) (3) • D9. Increasing the involvement in knowledge-intensive activities of at least 15% of employees in real economy. • D10. Increasing the share of medium and high technology production exports to 35 % of total exports; • D11. Increasing the share of knowledge-intensive services to at least 50% of exports; • D12. Increasing the share of foreign sales of patents and licenses to at least at least 0.5% of GDP.
2.3 Measures (Part D, Firms) (1) Necessary measures to be undertaken to achieve specific objectives are: • Encouraging young people to open firms, improving of the business people’s image, implementation of motivating programs, and support for the opening of new businesses. • Points to incentive schemes and favorable framework conditions, detailed policy programs needed • Measurement and stimulating the achievement of productivity level of the workforce to the average European level. • Creation of support mechanisms and stimulating Moldovan companies to import advanced high tech of production • Creating advisory infrastructure of the firms on various aspects of innovation; • Improving business management capabilities by supporting implementation of new forms of management and non-technology innovations.
2.3 Measures (Part D, Firms) (2) Necessary measures to be undertaken to achieve specific objectives are: • Facilitating the access to finance; • Implementation of access instruments to researching infrastructure. • Stimulating the development of research within the companies, especially in big ones; • Stimulating the implementation of non-technological innovations; • Developing mechanisms to promote: innovational marketing, internationalization, innovation brokerage; • The introduction of innovation as a priority within the national programs of entrepreneurship support. How shall these measures be substantiated and implemented? Detailed Policy Programs Needed!
2.4 Next Steps: Development of Programs • Implementation and administration procedures of the subsequent programs should be as less complex and time-consuming as possible • Selection criteria/process should be transparent and comprehensible for applicants, many procedures can be based on competition • Data collection and indicator system for assessing the outcomes of the programs can be enhanced (e.g. further indicators, including control groups); also consider measuring outputs and impacts • High quality evaluation at low cost is based on integration of evaluation in the design of the program Monitoring and evaluation are viewed as necessary to continuously revise and improve the Innovation Strategy and its implementation
Structure of Presentation 1 3 Approaching the strategy: key questions and sequential breakdown Conclusion and key messages 2 Strategy objectives (Part D, Firms): 2.1 General objectives 2.2 Specific objectives 2.3 Necessary measures for achieving the objectives 2.4 Next Steps: Development of Programs
Key Messages • BE AMBITIOUS, BUT REALISTIC! • Complicate your economy! (Modernization, Diversification, Value added, Complexity) • KEEP IT SIMPLE! Transparency and simplicity of implementation and administration of the Strategy and subsequent programs can be improved • Activities (Programs) of the Strategy need further elaboration • Monitoring and evaluation are key to success! Constant improvements possible, i.e. in terms of output, outcomes and impact of the Strategy and subsequent programs
Monitoring and Evaluation System – A Potential Baseline Continuous data collection and analysis allows for flexible reactions Integrated approach for systematic monitoring and evaluation allows for better steering and planning Aims at assessing the direct impacts of particular priority axes within the support programs Puts the program impacts in relation to other national/ regional policy targets
Thank you for your attention. • Contact: mathias.rauch@moez.fraunhofer.de
