SEE 2020 Smart growth workshop

1. SEE 2020 Smart growth workshop Sarajevo, Bosnia and Herzegovina 31 Jan – 1 Feb 2013

2. Programming and Prioritisation – SEE Ministerial 2011 2. Smart growth should be built on knowledge and innovation by: i. Promoting „triple helix‟ linkages between academia, industry and policy makers; ii. Promoting free flows of talent in the region by encouraging SEE economies in achieving bilateral/multilateral universal recognition of diplomas and abolishment of unnecessary visas and permits for students, academia and the business community; iii. Encouraging “brain gain” through targeted networking with the diaspora and creating conditions favourable to eventual return, in particular through the establishment of a supportive entrepreneurial environment; iv. Supporting private and public sector investment in R&D via coherent and regionally co-ordinated policies to enhance innovation and promote the knowledge economy and society; v. Facilitating the participation of enterprises and scientific institutions from SEE in EU programmes and EUREKA and developing effective linkages with European institutions fostering innovation and knowledge (e.g., the European Institute for Innovation and Technology); vi. Raising the level of knowledge absorption via policies that support existing clusters, networks, and centres of excellence to establish a regional cooperation framework fostering knowledge communities; vii. Promoting natural science, maths and engineering studies while enhancing the quality of education provision and existing quality assurance mechanisms; viii. Using available resources and private sector expertise to substantially increase the level of combined public-private sector investment in R&D as a percentage of GDP; and ix. Considering measures to support business investment in R&D.

3. Programming and Prioritisation Illustrative Smart growth Research Innovation Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination iv. Support private and public investment in R&D via coherent and regionally co-ordinated policies to enhance innovation viii. Using available resources and private sector expertise to substantially increase public-private R&D ix. Considering measures to support business investment in R&D v. Facilitating participation of SEE enterprises and scientific institutions in EU programmes vi. clusters, networks, centres of excellence i. Promoting Triple Helix linkages ii. Promoting free flows of talent iii. Promoting brain gain vii. Promoting natural sciences, maths and engineering Regional Working group on Innovation Regional innovation Committee?

4. Programming and Prioritisation Illustrative Smart growth Research Innovation Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination • Example actions • Information and brokerage events • Innovation competitions • SME vouchers • Business plan competitions • Entrepreneurship matchmaking events bringing together entrepreneurs and investors • Technology watch service (patent searches, technology alerts, consulting) • Infrastructure for high-quality business support services (e.g. business, legal and IP consulting, accounting services, etc.) -web interfaces and/or accreditation. • Facilitate the emergence of regional clusters and networks • Peer review in view of harmonising legal and tax framework favourable to emergence of venture capital: protection of minority shareholder rights, avoiding double taxation, level of capital gains tax etc. • Regional investment promotion events. iv. Support private and public investment in R&D via coherent and regionally co-ordinated policies to enhance innovation viii. Using available resources and private sector expertise to substantially increase public-private R&D ix. Considering measures to support business investment in R&D v. Facilitating participation of SEE enterprises and scientific institutions in EU programmes vi. clusters, networks, centres of excellence i. Promoting Triple Helix linkages ii. Promoting free flows of talent iii. Promoting brain gain vii. Promoting natural sciences, maths and engineering Regional Working group on Innovation Regional innovation Committee?

5. Programming and Prioritisation Illustrative Smart growth Research Innovation Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination iv. Support private and public investment in R&D via coherent and regionally co-ordinated policies to enhance innovation viii. Using available resources and private sector expertise to substantially increase public-private R&D ix. Considering measures to support business investment in R&D v. Facilitating participation of SEE enterprises and scientific institutions in EU programmes vi. clusters, networks, centres of excellence i. Promoting Triple Helix linkages ii. Promoting free flows of talent iii. Promoting brain gain vii. Promoting natural sciences, maths and engineering Regional Working group on Innovation Regional innovation Committee? • Example actions • Regional S&T fund • Regional centres of excellence • Support for project proposals and matchmaking for FP7 and other international grants • Financing for joint diaspora-homeland research projects • Peer review of evaluation and advancement systems

6. Programming and Prioritisation Illustrative Smart growth Research Innovation Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination • Example actions • Innovation vouchers • Matching grants for SME and academia co-operation • Facilitate Triple Helix co-operation through seminars and matchmaking events • Regional network of technology transfer offices, incubators, science parks • Regional competence technology centres • Regional web portal for industry-academia matchmaking and co-operation iv. Support private and public investment in R&D via coherent and regionally co-ordinated policies to enhance innovation viii. Using available resources and private sector expertise to substantially increase public-private R&D ix. Considering measures to support business investment in R&D v. Facilitating participation of SEE enterprises and scientific institutions in EU programmes vi. clusters, networks, centres of excellence i. Promoting Triple Helix linkages ii. Promoting free flows of talent iii. Promoting brain gain vii. Promoting natural sciences, maths and engineering Regional Working group on Innovation Regional innovation Committee?

7. Programming and Prioritisation Illustrative Smart growth Research Innovation Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination • Example actions • Recognition of diplomas • Liberalisation of work permits • Regional research fellowships • Student exchange programmes • Regional student competitions • Diaspora contact database • Grants for co-operation with diaspora iv. Support private and public investment in R&D via coherent and regionally co-ordinated policies to enhance innovation viii. Using available resources and private sector expertise to substantially increase public-private R&D ix. Considering measures to support business investment in R&D v. Facilitating participation of SEE enterprises and scientific institutions in EU programmes vi. clusters, networks, centres of excellence i. Promoting Triple Helix linkages ii. Promoting free flows of talent iii. Promoting brain gain vii. Promoting natural sciences, maths and engineering Regional Working group on Innovation Regional innovation Committee?

8. Programming and Prioritisation Illustrative Smart growth Research Innovation Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination iv. Support private and public investment in R&D via coherent and regionally co-ordinated policies to enhance innovation viii. Using available resources and private sector expertise to substantially increase public-private R&D ix. Considering measures to support business investment in R&D v. Facilitating participation of SEE enterprises and scientific institutions in EU programmes vi. clusters, networks, centres of excellence i. Promoting Triple Helix linkages ii. Promoting free flows of talent iii. Promoting brain gain vii. Promoting natural sciences, maths and engineering Regional Working group on Innovation Regional innovation Committee? • Example actions • Establish a two-tier regional co-ordination of innovation policies: • peer review and best practice exchange at working level; • decision making at the Ministerial level • Peer review of governance in the science and technology system

9. SEE 2020 Monitoring – Smart growth

10. Monitoring of reforms in SEE 2010 2005 2006 2011 2012 4th SEE ministerial in Sofia, Bulgaria, 10 June Ministers agree on the need for a regional framework for investment consistent with EU principles and inspired by the OECD Policy Framework for Investment. 5th SEE ministerial in Vienna, Austria on 27 June Ministers endorse a “Regional framework on Investment” Completion of first Investment Reform Index 2nd Investment Reform Index released 6th SEE Ministerial SEE 2020 Vision based on five pillars (integrated, smart, sustainable, inclusive and governance for growth 7th SEE Ministerial Endorsement of SEE 2020 headline targets Greater time and staff commitment

11. From the Regional Framework on Investment to SEE 2020

12. IRI assessment methodology Dimensions Sub-dimensions Investment Reform Index 2010 1 Investment Policy and Promotion 1.1 FDI Policy Covering priority dimensions related to the Regional Framework for Investment : 1.2 Investment Promotion and Facilitation - 1. Investment Policy and Promotion Sub - Dimensions Indicators Human Capital Development 2. 1.1 FDI Policy 5.3 ACAAs 3. Trade Policy and Facilitation 1.1.8 Intellectual Property Rights 4. Access to Finance Indicators Level of Reform 5. Regulatory Reform and Parliamentary Processes 1 2 3 4 5 6. Tax Policy Analysis 7. Infrastructure for Investment 8. SME Policy - New areas - Innovation Policy ... 1 Development of IP Laws

13. IRI assessment methodology – tripartite structure Government self-assessment Private Sector Independent experts

14. Which indicators should be retained, modified or removed? Investment Policy and Promotion

15. Example: Results of Investment Policy and Promotion assessment in IRI 2010

16. Example: Results of Investment Policy and Promotion assessment in IRI 2010 • Main points for improvement • Land title registration and cadastre is slow • FDI Incentives on sub-national level need more clarity • One-stop shop for investors (IPAs to approve permits) • Legal frameworks for PPPs to be developed • Need to improve IP rights enforcement

17. New Innovation Policy Dimension Illustrative Innovation Policy Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination

18. New Innovation Policy Dimension Illustrative Innovation Policy • Quantitative indicators • GDP per capita growth • Labour productivity • Investment in fixed and intangible assets as a share of GDP • New-to-market product innovators • Patents and trademarks per capita • Service-related trademarks • Firms with national/international collaboration on innovation • Scientific articles and co-authorship • Qualitative indicators • WEF Innovation ranking • Global Innovation Index ranking Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination

19. New Innovation Policy Dimension • Quantitative indicators • Business enterprise expenditure on R&D • Expenditure on innovation, by firm size • Employer enterprise birth rate and death rate in the manufacturing and services sector • Venture capital investment • Patenting activity of firms • Direct and indirect government funding of business R&D and tax incentives for R&D • Firms receiving public support for innovation, by size • Firms' turnover from product innovation, by type • ICT investment by asset • Increase in the probability to innovate linked to ICT use • Qualitative indicators • Policies on R&D incentives • Quality of business support services • Policy support to clusters and networks • Evaluation of events (information and brokerage, matchmaking, competitions) • Technology watch service • Peer review processes • Regional investment promotion Illustrative Innovation Policy Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination

20. New Innovation Policy Dimension Illustrative • Quantitative indicators • Government budget appropriations or outlays for R&D, • by selected socio-economic objectives • by national sector of performance • Higher education expenditure on R&D • Basic research performed in the public sector • E-government readiness index • Share of sub-national government in public investment • Amount of regional funding for R&D • Qualitative indicators • Regional centres of excellence • Support for project proposals and matchmaking for FP7 and other international grants • Peer review of evaluation and advancement systems Innovation Policy Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination

21. New Innovation Policy Dimension Illustrative Innovation Policy • Qualitative indicators • Science-industry mobility programmes • Innovation vouchers • Matching grants for SME and academia co-operation • Triple Helix co-operation • Regional network of technology transfer offices, incubators, science parks • Regional competence technology centres • Regional web portal for industry-academia matchmaking and co-operation • Quantitative indicators • Amount of incentives and subsidies available for science-industry co-operation • Number of participating companies and research institutes participating in co-operations • Patents filed by public research organisations • Regional average of PCT patents with co-inventor(s) by location • International technology flows (royalties and licence fees) Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination

22. New Innovation Policy Dimension Illustrative • Quantitative indicators • Reading, mathematics and science proficiency at age 15 • Transition from upper secondary education to graduation at the university level • Science and engineering graduates at the doctoral level • Unemployment rate of university graduates • Supply of and demand for highly skilled employees • Percentage of the population 18 to 64 years old who received any type of training in starting a business, during or after school • Firms engaged in innovation-related training activities by size • Total amount of grants for co-operation with diaspora • Qualitative indicators • Recognition of diplomas • Work permit policy for knowledge workers • Regional research fellowships • Student exchange programmes • Regional student competitions Innovation Policy Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination

23. New Innovation Policy Dimension Illustrative Innovation Policy Enhance business innovation potential Secure a strong science and technology base Linkages between industry and academia Skills for Innovation Policy co-ordination • Qualitative indicators • Regional policy co-ordination • Peer review of governance in the science and technology system

24. Examples of qualitative indicators Illustrative