49
Dr Jadranka Švarc Institute for Social Sciences “Ivo Pilar”, Zagreb e-mail: [email protected] Dr Emira Bečić Ministry of Science, Education and Sports [email protected] International Conference WHY INVESTING IN SCENCE IN SOUTH EASTERN EUROPE? Ljubljana, Slovenia, September 27-29, 2006 CROATIAN INNOVATION POLICY MEETS REALITY

Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: [email protected]@pilar.hr Dr Emira Bečić Ministry of Science,

Embed Size (px)

Citation preview

Page 1: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Dr Jadranka ŠvarcInstitute for Social Sciences “Ivo Pilar”, Zagreb

e-mail: [email protected]

Dr Emira BečićMinistry of Science, Education and Sports

[email protected]

International ConferenceWHY INVESTING IN SCENCE IN SOUTH EASTERN EUROPE?

Ljubljana, Slovenia, September 27-29, 2006

CROATIAN INNOVATION POLICY MEETS REALITY

Page 2: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Starting points of the presentation Innovation system in Croatia is rather complex but not coherent

set of institutions mutually interrelated to pursue the same mission of “using knowledge for development”

It is laging behind NISs of other European countries (benchmark analysis)

Innovation policy in Croatia is not an integrated policy but a narrowly-shaped program for fostering science-industry cooperation

Therefore, the Croatian innovation policy should “meet the reality” and to be adjusted to the specific development needs of Croatia determined by

•technology advancements•economic progress and •social maturity

of the country for using innovation (knowledge) as a main driving force of economic growth.

Page 3: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Content of the presentationPresentation consists of the three parts:

1. Current state ofa. Croatian NIS - institutional and organizational set-up, main stakeholders…b. Croatian innovation policy – policy framework

(documents), main programs and instruments…

2. Results of the pilot benchmark analysis of the Croatian NIS and NISs of EU countries to stress the critical points of the Croatian NIS

3. Brief discussion of the socio-cultural inertia and the lack of policy learning that are perceived as the main obstacles to faster development of Croatia

Page 4: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Beginnings…

Since 2000 Croatia made significant effort in establishing national innovation system and introducing innovation policy

These endeavors were additionally supported by the

Accession negotiations with the European Union (EU) opened on the 4th October 2005

….brought Lisbon and Barcelona targets into strategic policy agendas of Croatia

The screening processes for both the sectors

...have been successfully finalized with overall conclusions that:• From the legal and institutional point of Croatian systems are harmonized

with the acquis • Further development is needed…..

R&D and HE(Chapter 25)

Innovation policy(Chapter 20. 2)

Page 5: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Institutional set-up for R&D and innovation in Croatia (1/2)

Development Centers

Parliament

Government

National ScientificCouncil (NSC)

National Council for HigherEducation (NCHE)

Ministry of Science, Education and Sports (MSES)

ScientificCommittee 1- 6

Science and Higher EducationFunding Council

IndependentcommercialInstitutes

High levelpolitical

authorities

PRIVATE SECTOR

PUBLIC SECTOR

Researchperformers

Policyformulation

and implementation

Administrativeand evaluation

bodies

Intermediaryand financial

bodies

Agency for Scienceand HE

Technological Council

Other R&D bodies (e.g. HAZU, health care units)

Public institutesUniversities

InterdisciplinaryControl Group

Support

/infrastructure

BICRO

Technicl infrastructure(norms, statistics, measurement...)

Contract ResearchNational Foundation for Science, HE and TechnologicalDevelopment (NFS)

HITRA programme

Regional/local authorities

International foundations

National CompetitivennessCouncil

Scientificinfomation(CARnet...)

Croatian Chamber of Commerce

Regional Chambers

Associations

SMEs

Large and Multinationalcompanies

Transfer Centers

Corporateinstitutes

Technologycenters

Council for theCroatian NIS

ScientificCommittee 1- 6Scientific

Committee 1- 6

Croatian Academy of Sciences and Arts (HAZU)

Ministry of Economy, Labour and Entrepreneurship (MELE)

Croatian Institute for Technology (HIT)

Page 6: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Institutional framework for innovation policy management and implementation (2/2)

Minister

State Secretary for Science

DEPARTMENT FOR ANALYSIS AND

MONITORING OF THE TECHNOLOGICAL

DEVELOPMENT

Science Directorate

Technological Council Council of the CroatianInnovation System

Assistant to the Minister forScience

Unit for the Intelectual propertyrights in academic sector

BICRO

Croatian Institute forTechnology (HIT)

Technology centers

Technical infrastructure (stateoffices for standards, measuremnts, patents, statistics, etc)

Interministerial Control Group

Page 7: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Documents relevant for innovation policy

1996 The National Science and Research Program

2001 Croatian Program for Innovative Technological Development (HITRA)

2002 “Croatia based on knowledge and the application of knowledge” adopted by Croatian Academy of Sciences and Arts

2003 Strategy of Development of the Republic of Croatia in the 21 Century- Science”

2004 Strategic plan of the National Foundation for Science 2004 – 2008

2004 55 recommendations of The National Competitiveness Council for increased competitiveness of Croatia

2006

2006

National Science and Technology Policy 2005-2010 accepted by the National Scientific Council

Strategic Framework for Development 2006-2013, Central State Office for Strategic Developmnet (15.05. 2006)

Page 8: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

The first innovation policy program -Program HITRA

Croatian Program for Innovative Technological Development

First government innovation policy program (adopted in 2001)

Purpose: building up efficient national innovation system

Long term goals:• Fostering science-industry cooperation • Revitalization of industrial R&D• Encouraging commercialization of the research results

Current tasks:- Specialy designed to foster science –industry cooperation- Provides a framework for direct cooperation between entrepreneurs and scientific

institutes/universities

Page 9: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Sub-Programs Type of projects Targets of the policy measures

T

E

S

TTechnology

projects

“Simple” technology projects (TP)

commercially promising products, processes and services prior to their commercial use (prototype/pilot stage)

“Collaborative” technology projects (STIRP)

multidisciplinary, cooperative research for launching new or developing the existing technological areas

Nucleus (Jezgre)

Research and technological NUCLEUS concentration of R&D resources (experts, equipment, instruments) to gain critical mass for research based services

Knowledge-based comp.

RAZUM commercialization of research through companies (start-up, spin-offs, expansion….)

Page 10: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

HITRA – Main policy instruments

TEST RAZUMBudget grants for research projects

contracted among entrepreneurs and research institutions

Subsidies to companies for research and development (30% of the total project value)

Budget grants for prototypes, pilot plans, feasibility studies

Favourable commercial loans with the interest equalling the discount rate of the Croatian National Bank;

Arrangements of IPR among partners Conditional loans in case of risk projects and academic spin-offs

Re-payment 21% of grants to MSES in case of commercialization of research results

“On the spot” monitoring of project implementation

Foundation of the Technology council

Page 11: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

HITRA Programs

RAZUM – Knowledge based companies

TEST – technology projects

1/3 (37) projects proposals were selected for financing

22 projects relates to start-up companies

16 projects are intended for

companies expansion plans

482 projects applications - received

252 projects selected for

financial support

150 projects accomplished

102 projects in progress

Page 12: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Other programs related to innovation policy

Programs of the National Foundation for Science (NFS) 1. “Partnership in basic research“ (launched in 2005)- Aimed at attracting investments from industry and

entrepreneurship to basic research in Croatia

2. Program “Brain Gain - Visitor" (launched in 2004)- Aimed at encouraging researchers resident

outside Croatia to carry out research project in Croatia incl. industry

Page 13: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Institutional infrastructure of the Croatian innovation system – initiated by the MSES

•Business and Innovation Centre of Croatia (BICRO) •The Croatian Institute for Technology (HIT) •Centre for Technology Transfer (CTT), Zagreb

1. Four technology and innovation CentresCentre for Technology Transfer (CTT), ZagrebTechnology Centre Split (TCS) Centre for Innovative Technology Rijeka (TIC)Technology and Innovation Centre, Osijek3. One Research and Development CenterResearch and Development Centre for Mariculture, Dubrovnik4. Business and Innovation Centre of Croatia (BICRO)5. The Croatian Institute for Technology (HIT)

Research and Development Centre for Mariculture, Dubrovnik

Technology and Innovation Centre, Osijek

Technology Centre Split (TCS)

Centre for Innovative Technology Rijeka (TIC)

Page 14: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Institutional infrastructure of the Croatian innovation system – initiated by the Ministry of Economy and local authorities

•9 business incubators•20 entrepreneurial centres•10 development agencies•14 free zones•2 technology parks “Technology park Zagreb“ “Technology park Varaždin

Page 15: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Institutional infrastructure of the Croatian innovation system - technical infrastructure

2. Institutions of the technical infrastructureDuring 2004 the basis for technical infrastructure has been achieved and harmonized with the European standards and acquis

State office for norms and measurement was transformed into the three new institutions:

• Croatian Accreditation Agency (http://www.akreditacija.hr/)• Croatian Standards Institute (http://www.dznm.hr/hzn/) • State Office for Metrology (http://www.dzm.hr/).

• State Office for Intellectual Property Rights (http://www.dziv.hr/)

• State Bureau for Statistics (CBS) (http://www.dzs.hr/)

These institutions make the core of the technical infrastructure necessary for overall technological and innovation development

Page 16: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Relevant international projects1.“Science and Technology Project“ of MSES supported by the

World Bank, aimed at improving NIS, started in 2003

2. CARDS project “Intellectual Property Infrastructure for the Research and Development Sector”aimed at introducing IPR system in academic sphere, started in 2005

3. The TEMPUS project “Stimulating Croatia’s Entrepreneurial Activities and Technology transfer in Education – CREATE” has been approved by the European Commission in August 2005 .Aim: create national university system for supporting entrepreneurial activities and technology transfer.

4. EURO-INFO Centre - The European information and communication centre Zagreb was established at the Croatian Chamber of Economy, started in 2005

Page 17: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Towards Lisbon

• All these activities provide a platform for certain satisfaction with the innovation policy

• Although Croatia has no concrete “National 3% Action Plan” or “National Lisbon plan” there is mix of policies and actions that should move Croatia’s orientation towards Lisbon goal- knowledge society.

Does Croatian NIS follow the path towards knowledge economy?

Page 18: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Benchmark ecxercise – Croatia

RESEARCHCAPACITY

SOCIAL AND HUMAN CAPITAL

ABSORPTION CAPACITY

Supply Users

Creators DemandTECHNOLOGICAL AND

INNOVATION PERFORMANCE

Source: STRATA-ETAN Expert group for benchmarking national research policies (EC DG Research, June 2002

Simple model of NIS

Page 19: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Components of NIS - definitions

RESERCH INTENSITY

is a national pool of knowledge that makes a basis for the creation and adoption of

new technologies and innovations

HUMAN CAPITAL

represents the knowledge and skills embodied in individuals that make

them capable of taking advantage of knowledge and new technologies

ABSORPTION CAPACITY

is the ability of a company to recognize, accept and exploit new technologies. It is highly interdependent with innovation performance. It is capacity is closely connected to the infrastructure and channels that enable diffusion of innovation such as ICT, quality management, etc.

TECHNOLOGICAL AND INNOVATION PERFORMANCE

rather complex area that should indicate the degree of capitalization of science or transformation of research and human capacities into inovativnnes, competitiveness and production.

Page 20: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Components of NIS as composite indicators

RESEARCH CAPACITY• Gross domestic expenditures in R&D

(GERD)

• Total number of researchers (FTE) per 1000 labour force,

• Number of scientific publications per million population

INTELECTUAL CAPITAL

• Total public expenditure on tertiary education as a percentage of GDP

• Percentage of population aged 25-64 with upper secondary education

• New PhDs in S&E fields per 1000 population aged 25-34

ABSORPTION CAPACITY

• Number of ISO certifications 9000 per million inhabitants

• Number of Internet Hosts per 10 000 inhabitants

• Researchers (FTE) in business sector as a percentage of total researchers (FTE )

TECHNOLOGICAL AND INNOVATION PERFORMANCE

• Patent applications (PCT) per million population (technological output)

• High-tech exports as a percentage of manufactured exports (competitivenness)

• R&D financed by industry (BERD) as percentage of GDP a measure of intrinsic

interest and demand of industry for R&D)

Page 21: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

CALCULATION

Our main task was to determine the relative position of Croatian NIS measured by composite indicators in relation to the two basic sets of countries:

EU 25 – all the European member statesEU 10 – the New member states

… to see deviations or divergence of each country and Croatia from the average of the basic set of countries

Page 22: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Calculation of composite indicators

In order to compare and to correlate the composite indicators, it is necessary to transform various sub- indicators that are measured in different unites into the same unit.

.

• This method calculates z-scores or standardized units of the number of standard deviations from the mean, using the following formula (above).

• The method for calculation composite indicators is taken over from Towards a European research Area: Key Figures 2002.

EurosPercentages

Per capita units, etc

Should be convert into the single measurement

unit

Page 23: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Results – Research intensity vs. Human capital

To see the relative position of Croatia we put into the relationship each of the composite indicator against each other. We receive 6 graphs, as follows:

-1,5 -1,0 -0,5 0,0 0,5 1,0 1,5 2,0 2,5

-1,5

-1,0

-0,5

0,0

0,5

1,0

1,5

2,0

BE

DK

DE

ES

FI

FR

GR

IE

IT

NL

AT

PT

SE

UK

LU

CY

CZEE

HULV

LTPLSK

SI

HR

Graph 1. Research intensity vs Human capital in Croatia comparing to EU 25, 2001

Hum

an C

apita

l

research intenisty

R=0,73

Page 24: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Results – Graph 2 .Research intensity vs. Absorption capacity

-1,5 -1,0 -0,5 0,0 0,5 1,0 1,5 2,0 2,5-1,5

-1,0

-0,5

0,0

0,5

1,0

1,5

2,0

BE

DK

DE

ES

FI

FR

GR

IE

IT

NL

AT

PT

SE

UK

LU

CY

CZ

EE

HU

LV

LT

PL

SK

SI

HR

Graph 2. Research intensity vs Absorption in Croatia comparing to EU 25, 2001

Ab

sorp

tion

ca

pa

city

Research intensity

R=0,73

Page 25: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Results: Graph 3. Research intensity vs. Performance

Page 26: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Results: Graph 4. Human capital vs Absorption

-1,5 -1,0 -0,5 0,0 0,5 1,0 1,5 2,0-1,5

-1,0

-0,5

0,0

0,5

1,0

1,5

2,0

BE

DK

DE

ES

FI

FR

GR

IE

IT

NL

AT

PT

SE

UK

LUCY

CZ

EE

HU

LVLT

PL

SK

SI

HR

Graph 4. Human capital vs Absorption in Croatia comparing EU 25, 2001

Abs

orpt

ion

Human capital

R=0,52

Page 27: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Results: Graph 5 Human capital vs Performance

-1,5 -1,0 -0,5 0,0 0,5 1,0 1,5 2,0

-1,0

-0,5

0,0

0,5

1,0

1,5

2,0

BE

DKDE

ES

FI

FR

GR

IE

IT

NL

ATPT

SE

UK

LU

CY

CZ

EE

HU

LV LTPLSK

SIHR

Graph 5. Human capital vs performance in Croatai comparing to EU 25, 2001

Pe

rfo

rma

nce

Human capital

R=0,69

Page 28: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Results: Graph 6. Absorption vs performance

-1,5 -1,0 -0,5 0,0 0,5 1,0 1,5 2,0

-1,0

-0,5

0,0

0,5

1,0

1,5

2,0

BE

DKDE

ES

FI

FR

GR

IE

IT

NL

ATPT

SE

UK

LU

CY

CZ

EE

HU

LVLT PLSK

SIHR

Graph 6. Absorption capacity vs Performance in Croatia comparing to EU 25, 2001

Pe

rfo

rma

nce

Absorption capacity

R=0,81

Page 29: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Results – Croatia and EU 25

EU 25 : It is possible to identify at least three groups of countries:

1. Countries that are significantly above EU average in all the components of NIS: Sweden, Finland, Denmark, Germany, Untied Kingdom, and (Netherlands with the exception of HC). These countries are the most efficient in the transition towards knowledge economy and in utilization of knowledge factors and innovation for economic growth

2. Countries that are about EU average such as Belgium, France, Austria, Ireland and Luxembourg (with the exception of HC). Those countries are catching up with the first group in knowledge based economy

3. Countries which are in almost all composite indicators (with some oscillations) below EU average. This group comprises all the new member states, but also southeastern countries like Greece, Spain, Italy, Portugal and Cyprus and

….Croatia

Page 30: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

EU 25 (+ Croatia) Composite indicators – divergence from average, 2001

EU 25 Composite indicators- Divergence from average, 2001

Belgium

Denm

ark

Germ

any

Spain

Finland

France

Greece

Ireland

Italy

The Netherlands

Austria

Portugal

Sw

eden

United K

ingdom

Luxembourg

Cyprus

Czech R

epublic

Estonia

Hungary

Latvia

Lithuania

Poland

Slovakia

Slovenia

Croatia-2

-1

0

1

2

3

Countries

Inde

x

Research intensity Human capital Absorption capacity Performance

Page 31: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Divergence of Croatia from EU 25 average in composite indicators, 2001

Divergence of Croatia from EU 25 average in composite indicators, 2001

Absorption

Human Capital

PerformanceResearch intensity

-1,2

-1

-0,8

-0,6

-0,4

-0,2

0

Composite indicators

Inde

x (0

is E

U 2

5 av

erag

e)

Series1

Page 32: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

EU 10 (+ Croatia) Composite indicators – divergence from average, 2001

• The position of Croatia in relation to the new member states (EU 10) is not much different from its position among all (25) EU countries.

• It is also possible to make the distinction between three groups of countries among new member states

Croatia and EU 10 - new member states, Composite indicators, 2001

Cyprus

Czech R

epublic

Estonia

Hungary

Latvia

Lituania

Poland

Slovakia

Slovenia

Croatia

-2

-1

0

1

2

3

Countries

Inde

x

Research Intensity Human Capital Absorption Performance

Page 33: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Results - Croatia and EU 10…..

1. Countries that are in all four or at least three components of NIS above average such as: Czech Republic, Estonia,Hungary and Slovenia. Czech Republic and Slovenia are definitely the leading countries in innovation capabilities

2. Countries that are above (or about) average in 2 components Cyprus, Lithuania, and Slovakia and

3. Countries with three or four components below EU 10averge – Latvia (four components), Poland (three components) and Croatia (three components)

Page 34: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Croatia- divergence from EU 10 in selected indicators,2001

• In comparison with EU 10 Croatia is better in only one composite indicators research capacity and one sub-indicator – high-tech exports

Page 35: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

GERD is in constant upswing line

0,770,71

0,98

1,23

1,07 1,12 1,141,24

0,25 0,25

0,43

0,560,44 0,47

0,52

0,340,41 0,38 0,39

0,210,27 0,24 0,24 0,25 0,26

0,44

0,270,460,45

0,26

0,190,26

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1997 1998 1999 2000 2001 2002 2003 2004

GERD

BERD

HERD

GOVERD

Page 36: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

GERD – Croatia is topping the list of the New member states

0,270,350,38

0,560,580,620,660,68

0,740,780,82

0,951,05

1,141,141,16

1,261,54

1,761,78

1,881,921,92

2,182,19

2,522,59

3,483,98

0 0,5 1 1,5 2 2,5 3 3,5 4 4,5

MaltaCyprusLatvia

PolandSlovakia

GreeceTurkey (2002)

LituaniaEU 10 (1)PortugalEstonia

HungarySpainItaly

CroatiaIreland

Czech RepublicSlovenia

NetherlandsLuxembourg

United KingdomBelgium

EU 25France

AustriaGermanyDenmark

FinlandSweden

Figure 5.5 Gross domestic expenditure of R&D (GERD), 2003

Page 37: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

A pool of researchers in Croatia is bigger than in majority of the New member states

1,202,802,903,00

3,303,503,603,603,703,80

4,004,50

4,905,00

5,105,405,505,50

6,306,80

7,908,608,70

10,1010,10

16,20

5,00

9,00

0,00 2,00 4,00 6,00 8,00 10,00 12,00 14,00 16,00 18,00

Cy prusItaly

Latv iaCzech

GreecePoland

PortugalHungarySlov akia

CroatiaLithuania

EstoniaSpain

IrelandSlov enia

TheEU-25Austria

United KingdomGermany

FranceBelgium

DenmarkLux embourg

USSw eden

JapanFinland

Number of researchers (FTE) per 1000 labour force in Croatia and EU 25, 2003

Page 38: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

However… in human capital

EU 10 - Human capital - divergence from average

Croatia

Malta

Cyprus

Latvia

Hungary

Slovakia

Czech R

epublic

Poland

Estonia

Slovenia

Lituania

-1,5

-1

-0,5

0

0,5

1

Countires

Inde

x (0

is E

U 1

0 av

erag

e)we are on the bottom of the list

of the New member states…

Page 39: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

In absorption capacity ….

… we are before Lithuania which is on the bottom …

EU 10 - Absorption capacity - convergence from average

Lituania

Croatia

Poland

Latvia

Slovakia

Estonia

Cyprus

Malta

Hungary

Slovenia

Czech Republic

-2

-1

0

1

2

3

Countries

Inde

x (0

is a

vera

ge)

Page 40: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

In innovation performance capacity…

…we are below EU 10 average

EU 10 - performance - divergence from average

Latvia

Lituania

Poland

Slovakia

Croatia

Estonia

Cyprus

Slovenia

Czech Republic

Hungary

-1

-0,5

0

0,5

1

Countries

Inde

x (0

is a

vera

ge)

Page 41: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Collapse of illusions….that we are maybe better than the previous transition countres in

human capital or innovation capacities.

In both groups of countries Croatia is lagging the most in absorption capacity and human capital

Page 42: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Croatian NIS – critical components

… IT MEANS THAT THE MOST CRITICAL COMPONENTS OF THE CROATIAN NIS ARE:

ABSORPTION• Quality management• Number of researchers

in industry and • Computerization of

Croatia

EDUCATION• Investment in tertiary

education • Number of new

scientists in engineering • Educated labor force

Page 43: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

R&D sector: structural imbalances in number of researchers and R&D investments

The analysis of R&D sector in the narrow sense, in terms of investment in R&D and number of researchers in public vs. private sector reveals that R&D sectors is suffering the serious structural imbalance since public sector significantly domintes over private sector while in developed countries industry and business sectors in both research manpower and investments largely predominate the public sector

• While in developed countries about 50- 80 percent of researchers are employed in business sphere in Croatia, the situation is just the opposite. Pubic sector, (HE and government employs 85%) of researches, while business sector employs modest 15 %

0

10

20

30

40

50

60

70

80

90

EU 25 Croatia US Slovenia Finland

Public sector

Business

Researchers (%) in public and business sectors in selected countries, 2003

Page 44: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

R&D sector: structural imbalances in R&D investments between public and private sector

• Business sector in Croatia invests 0,45 % of GDP. Business sector invests in EU 15 countries more than 1 % of GDP from 0,27 in Portugal to 3,32 in Sweden .

• Therefore, the development of R&D sector should, presumably, involve further development of public sector R&D to catch up with European standards but concerted actions of both government and private business for strengthening industrial research capacities are seriously needed.

BERD as % of GDP in EU 25 and Croatia, 2001

Cyp

rus

La

tvia

Litu

an

ia

Gre

ece

Po

lan

d

Esto

nia

Po

rtug

al

Hu

ng

ary

Slo

vakia

Cro

atia

Sp

ain

Italy

Cze

ch R

ep

ub

lic

Irela

nd

Slo

ven

ia

Th

e N

eth

erla

nd

s

Un

ited

Kin

gd

om

Fra

nce

Be

lgiu

m

De

nm

ark

Ge

rma

ny

Fin

lan

d

Sw

ed

en

0

0,5

1

1,5

2

2,5

3

3,5

Countries

Pe

rce

nta

ge

Page 45: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

CONCLUSIONS• National innovation system of Croatia is underdeveloped in

comparison with both – all the member states of EU – 25 and new member states – EU 10 countries that belonged to transition countries as well as Croatia

• Croatia is lagging behind in knowledge based factors of growth that commonly shape the new techno-economic paradigm – knowledge economy such as: qualification structure of the labor force, technology capabilities of companies, research capacity in industry, computerization, etc.

• Croatia is competitive to EU countries only in research intensity that reflects the present orientation of innovation policy primarily towards supply side in terms of number of researchers and investments in R&D in public sector

• It support the thesis that Science policy in Croatia is standard policy based on a linear model of innovation in which science is a prime mover of technology development.

Page 46: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

CONCLUSIONS (cont.)

• Policymakers in Croatia assume that capitalization of science (innovation) begins and ends with research

• Therefore, science and innovation policy is primarily focused on public science separate from production and entrepreneurship (Innovation policy is a part of science policy that is centralized and dominated by MSOS as the main financer and consumer of R&D

• Ministry of economy runs its own programs for business development mainly unware of the innovation policy

Page 47: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

The main reasons for underdeveloped innovation policy

….are perceived in the socio-cultural inertia and lack of policy learning

The policymakers should understand:• the complexity of the innovation process – innovation

is essentially the result of the interactive process between many actors and sectors (science, companies, financial sector, legal conditions, ect.)

• that there is a need to create conditions for their interactions and combinations of different kinds of knowledge: scientific, engineering, production etc.

• that Lisbon agenda requests a shift from the conventional science policy towards integrated and pro-active innovation policy that means integration of science, industry and technology policy.

Page 48: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

Is integrated innovation policy possible in Croatia?

However, integrated innovation policy should significantly influence both:

• Science policy (science organization, evaluation and institutional set-ups), pushing it towards the norms and values of a concepts close to “new knowledge production” and “triple helix” that are not welcome in our scientific community and

• Industrial policy that is today reduced to privatization of state-owned companies and financial rehabilitation of weak industries but corresponds to neo-liberalism that is a dominant economic doctrine in Croatia

CONFRONTATION WITH THE SOCIO-CULTURAL NORMS AND VALUES

Page 49: Dr Jadranka Švarc Institute for Social Sciences Ivo Pilar, Zagreb e-mail: jadranka.svarc@pilar.hrjadranka.svarc@pilar.hr Dr Emira Bečić Ministry of Science,

IS CROATIAN DEVELOPMENT POLICY ON THE CROSS-ROAD?

Standard industrial

policy

SCIENCE POLICY

INOVATIONPOLICY

Fostering knowledge based factors of growth

Privatization and rehabilitation

Technology policy

Technology policy