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World Bank – Government of Hungary Third Forum Knowledge based Economy March 23-26, Budapest. FINANCING OF INNOVATION CASE STUDY FROM REPUBLIC OF MACEDONIA. HISTORICAL OVERVIEW. In Macedonia, until 1991, financing of the innovation projects and programs was regulated by:

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World Bank – Government of Hungary

Third Forum

Knowledge based Economy

March 23-26, Budapest

FINANCING OF INNOVATION

CASE STUDY FROM

REPUBLIC OF MACEDONIA


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HISTORICAL OVERVIEW

  • In Macedonia, until 1991, financing of the innovation projects and programs was regulated by:

  • The Law for use of funds for technological development of Yugoslavia (1987) and

  • The Strategy for technological development of Yugoslavia (1987)

  • Fund used represented 0,15% of the estimated GDP of the Yugoslav economy for the given year; 0,1% of the income of the Federation and 0,05% of the funds of respective republics and provinces.


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HISTORICAL OVERVIEW

  • Projects/programs had a coordinator (production based company) and an executor (scientific-research entity). Funds were used to finance projects/programs that belong to following categories:

  • Development/experimental research, if they involve companies from two or more federation entities;

  • Projects/programs that are fundamental and relevant for the technological development;

  • Initial construction of scientific infrastructure.


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CURRENT SITUATION

  • The period after gaining independence (after 1991), is characterized by:

  • Low level of the economical development

  • Not favorable conditions for development because of political turmoil and armed conflicts in the region

  • Insufficient domestic accumulation and need for foreign capital

  • General technological backwardness and lagging behind new technologies

  • High unemployment

  • Efforts to maintain the existing (although not favorable) scientific, personnel and infrastructure potential.


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CURRENT SITUATION

  • The transition period in Macedonia led to:

  • Change in the economy structure (especially with regard to the ownership structure)

  • Decrease (disappearance) of the development/research units within the companies

  • Redirection of the personnel to other activities

  • Large interest for work in other countries (brain drain).


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FINANCING OF INNOVATION

  • Allocation of funds for initiation and assistance of technological development is executed through an annual public competition implemented by the Ministry of Education and Science.

  • Following entities are eligible to compete:

  • Companies

  • Research/development organizations

  • Public scientific institutions

  • Innovation centers

  • Association of citizens based on innovation and technical advancement

  • Other legal and private entities active in the field of technological development.


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FINANCING OF INNOVATION

  • The project will be financially supported if it represents:

  • Common interest for the economy and science;

  • Development of own technology of products and services;

  • Optimization of the existing production capacities;

  • Developing new products;

  • Development of new technological infrastructure.

  • Projects/programs are subjected to expert assessment.

  • Co-financing is up to 30% of the project/program value.




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DEVELOPMENT OF A NEW GENERATION OF AEROSOL EQUIPMENT FOR FIREFIGHTING

  • Scientific institution: Faculty of mechanical engineering

  • Project cost: MKD 6.300.000

  • Structure: applicant’s contribution: MKD 5.600.000

  • Ministry of Education MKD 700.000 (11,1 %)

  • Effects:

  • New product that satisfies international standards, especially the environmental aspect and is in line with the world trend of eliminating the halons.

  • It can be used for fire extinguishing in both closed and open spaces, in the electrical industry, in different technological lines exposed to risk of fire, forest fires, etc.

  • International awards.


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DEVELOPMENT OF TECHNOLOGY FOR PRODUCTION OF HIGHLY CONCENTRATED COMPACT DETERGENT

  • Scientific institution: Technological-Metallurgical Faculty

  • Project cost: MKD 3.024.000

  • Structure: applicant’s contribution: MKD 2.474.000

  • Ministry of Education MKD 540.000 (17,8 %)

  • Effects:

  • Introduction of a new technology line for production of an environmental friendly detergent

  • New, high quality product able to compete on the domestic and on the international market

  • Decreased energy consumption in production process

  • Savings in storage and transport

  • Decreased quantity of secondary waste


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CONSTRUCTION DEVELOPMENT OF A NEW GVKS SYSTEM OF SEISMICALLY RESISTANT BUILDINGS: “TOWER OF THE SUN”

  • Scientific institution: Institute for Earthquake Engineering

  • Project cost: MKD 1.300.000

  • Structure: applicant’s contribution: MKD 1.000.000

  • Ministry of Education MKD 300.000 (23 %)

  • Effects:

  • Upgrade of the classical system of building construction

  • Decrease of the seismic risk

  • Savings in the construction of buildings

  • Awards: Gold medals at Geneva (1995) and Casablanca exhibitions (1998)


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ACTIVITIES OF RESISTANT BUILDINGS: SPATUM

  • SPATUM is a non-governmental association of inventors with 3.574 individual members and 97 organizations.

  • SPATUM activities can be grouped as:

  • Realization of innovative projects/programs (4.589)

  • Organization of presentations of innovative work (fairs, exhibitions)

  • Participation at international presentations of innovative work

  • Macedonian inventors have been awarded with 70 international awards in the period 2000-2003 at the exhibitions in Brussels, Geneva, Seoul, Belgrade, etc.


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LESSONS LEARNED & RESISTANT BUILDINGS:

CHALLENGES FOR THE FUTURE

  • Establishment of a model for unified infrastructure for support and development of science and technology

  • Development of a system for establishment of priorities in the technological development and their support by the economic policy

  • Increased financing of projects by private business

  • Interdisciplinary and multidisciplinary unification of the fundamental and applied research in the function of the development of the state

  • Larger budget allocations for science and technology


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LESSONS LEARNED & RESISTANT BUILDINGS:

CHALLENGES FOR THE FUTURE

  • Completing the legislation, especially in the part regarding the assessment and acceptance of the projects/programs

  • Establishment of expert body for science and technology development, under direct jurisdiction of the Government of the Republic of Macedonia

  • Development of network of national coordinators for activities in the area of science and technology

  • Networking of domestic and international systems for continuous following of international activities.


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