Promotion of innovation in the region of Cyprus & IRC Cyprus activities

1. Promotion of innovation in the region of Cyprus& IRC Cyprus activities Antonis Antoniou IRC Cyprus Technology Advisor

2. Innovation Innovation is recognised as a major driver for productivity, growth and employment creation Innovation ideas can derive from: • Research • Collaboration between suppliers & clients • Market & technology watch • Competition • Collaboration with technology transfer centers • Collaboration with financial institutions The benefits of innovation are usually long- term

3. Innovation and SMEs • The innovative capacity of most technology-using SMEs remains weak • SMEs tend to lack both the internal resources and the appropriate networking for easy access to the knowledge, technologies and finance on which innovation depends

4. Barriers in innovation process • Lack of time “…We are so busy to work in the business that we have no time to work on the business…” • Organisational structure • SMEs are resistant to change • Lack of funds • High risks • SMEs infrastructure • No access to information

5. Failure of innovation • Innovation has very high rate of failure and this is the major reason why companies especially SMEs do not innovate • Only 12%-20% of innovations succeed while the remaining 88%-80% fail (Edwin Mansfield)

6. Cyprus general information • Population: 797,800 • Surface area: 9,251 km2 • Annual Growth Rate: 5,2% • Distribution of the working population Agriculture: 4% Industry: 20% Service: 76% • GDP per capita: 15.000 Euro • R&D rate: 0.2%

7. Cyprus innovation policy • No single entity responsible for the design, promotion & coordination of innovation measures • Innovation system is structured on: • Policy level • Intermediary level • Implementation level

8. Cyprus innovation policy Policy level • Planning Bureau (PB) is responsible for the economic policy of the country • PB has central role in the RTDI strategy • Ministry of Commerce, Industry & Tourism responsible for the promotion of high-tech companies, reconstruction of traditional industry, attracting foreign investment & promotion of high-tech industry

9. Cyprus innovation policy Intermediary level • Research Promotion Foundation promotes R&D strategy & measures • Cyprus Institute of Technology promotes the technological upgrade of the economy • IRC Cyprus promotes the development and management of innovation in Cyprus • Other initiatives and projects (RITTS)

10. Cyprus innovation policy Implementation level • Cyprus Institute of Neurology & Genetics • University of Cyprus • Higher Technical Institute • State General Laboratory • Agriculture Research Institute • Cyprus Productivity Center • Private colleges & research centers • Business Incubators • Private enterprises

11. Cyprus innovation policy Innovation policy developments Strategic Development Plan 2004- 2006 priorities: • Extension & upgrading of infrastructures • Boosting competitiveness • Human resources development-promotion of equal opportunities • Balanced rural development • Protection of the environment & upgrading the quality of life

12. Cyprus innovation policy Strategic Development Plan 2004-2006 Boosting competitiveness: • Emphasis in strengthening SMEs • Encouragement of the R&D sector • Exploitation of the information society • Support of competitiveness • Exploitation of new technologies • Promotion of innovation • Productivity improvement

13. Cyprus innovation policy Strategic Development Plan 2004-2006 Encouragement of the R&D sector: • Support of research & technological infrastructure • Support of research & technological development • Innovation and technology transfer support • Promotion of the information society

14. Cyprus innovation policy Support to innovation policy makers • Policy makers undertake missions abroad to promote new collaborations and study specific policies • Systematic collaboration with Greece, Russian Federation (innovation issues) • Frequently visits to the USA, Russian Federation, Ireland, Greece and Israel (incubators issues) • RISC project (transfer experience from the regions of Kent, UK & Central Macedonia, Greece)

15. Cyprus innovation policy National framework to foster Innovation: • Business incubators measure • Youth entrepreneurship measure • Women entrepreneurship measure • Subsidisation of studies for the adoption of standards • Guarantees for loans to SMEs measure • Technology Park in co-operation with Sofia Antipolis Technology Park (future action) • Technology Park for ICT companies in co-operation with the Indian government (future action) • Research Center jointly with the School of Public Health of the University of Harvard (future action)

16. Cyprus Innovation Relay Center • IRC Cyprus was established in April 2000 • Sole partner consortium • The host organization of the IRC is the Cyprus Institute of Technology • Members of the host organization's Board of Directors is the Ministry of Commerce Industry & Tourism, Cyprus Chamber of Commerce, Employers and Industrialists Federation, Planning Bureau, Ministry of Finance, Human Development Authority • Chairperson of the Cyprus Institute of Technology (host organization) is the Minister of Commerce Industry and Tourism

17. Cyprus Innovation Relay Center • IRC Cyprus has very good knowledge of the Cyprus market • The IRC team is consisted of 9 members including the IRC Manager and Coordinator • The IRC staff is very experienced and works on the project since 2001 • The IRC team works on a sectoral / Thematic Group basis

18. Technology Transfer Technology Transfer assist companies and institutions to: • Share risks • Share costs • Gain technological knowledge • Develop common industry standards • Gain additional markets • Improve the product cycle • Help to the product development

19. Regional Constraints • The local demand from SMEs is not specialised and the overall competitive industrial environment is fragmented in traditional sectors; SMEs show limited propension to innovation. • The overall R&D performance is lower than in the rest of Europe and sectoral specialisation is possible for the Tourism which is the key economic driver of the Island. • The average time to reach a TTT substantially reduced during the last years because the local companies are keen to get first hand information about the most recent technology developments in Europe.

20. Cyprus Innovation Relay Center • The IRC staff carry out • (i) a standard technology orientation visit based on a standard check list assessing the production process, the competitive advantages and problems through a SWOT analysis , • (ii) followed by a follow-up visit.

21. Cyprus Innovation Relay Center • The IRC standard service package includes (i) the free registration to the Bulletin,(ii) TO/TR Automatic Matching Tool,(iii) participation to brokerage events and (iv)sign-posting to other Government supports. • There is no charging policy, At present the service promotion orientation is not encouraged and there is a strong reliance on Regional and European R&D funding as key lever to involve SMEs in Innovation and TT initiatives. • Local SMEs need to be coached in improving their perception of the technology transfer related services.

22. Cyprus Innovation Relay Center • The IRC staff works on a sectoral base. The IRC Advisors are working on the following economy sectors: • ICT • Fisheries • Agrofood • Textiles & Wood • Environment • Energy • Marine & Materials

23. Cyprus Innovation Relay Center Activity results for the periods 1&2 of the current contract • 50 Technology Audits & 128 Preliminary Technology Audits • 253 Company visits • Organisation of 4 info days, 4 workshops (Good practices, 6FP, fisheries etc) • Organization of 2 workshops for IPR issues, 2 workshops for funding innovation • 7 Meetings with Business Associations • Participation 9 in Brokerage Events and organization of 3 brokerage events • Distribution of the Monthly Bulletin (1500 recipients)

24. Cyprus Innovation Relay Center Activity results for the periods 1&2 of the current contract • Automatic Matching Tool (Diffusion of European technology profiles – 340 registered clients) • 16 TTT agreements (13 inward and 3 outward agreements) • 90 Negotiations (29 outward and 61 inward negotiations) • Organization of 8 company missions • Organization of 7 staff placements • Participation in Thematic Groups (Agrofood, ICT, Fish Technology, Environment, Marine, Wood)

25. Cyprus Innovation Relay Center Negotiations & TT Agreements in the first two years of operations

26. Cyprus Innovation Relay Center Profiles processed and TTT Agreements (2005-2006) Profiles processed into EoIs=12.89% EOIs into negotiations=13.4% Negotiations into TTT Agreements=22% Profiles processed and TTT Agreements (2004-2005) Profiles processed into EoIs=13% EOIs into negotiations=12,7% Negotiations into TTT Agreements=12,5%

27. Cyprus Innovation Relay Center Review of the Activity Report 2005- 2006 • Very good knowledge of the Cyprus market and needs of the IRC clients • Good to excellent project • The project has fully achieved its objectives and technical goals for the period and has even exceeded expectations