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IGNITING INNOVATION

IGNITING INNOVATION. Conference on Smart Specialization Esperanza Lasagabaster Seville, November 23, 2011. How important is innovation in the EU-10 Region? World Bank’s collaboration on innovation. R&D investment in the EU-10 .

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IGNITING INNOVATION

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  1. IGNITING INNOVATION • Conference on Smart Specialization • Esperanza Lasagabaster • Seville, • November 23, 2011

  2. How important is innovation in the EU-10 Region? World Bank’s collaboration on innovation

  3. R&D investment in the EU-10 • R&D-to-GDP is low in many EU-10 countries and is being affected by the challenging economic environment.

  4. … And could be more efficient • Innovation outputs are comparatively low in light of inputs

  5. Many Research Institutes are disconnected from industry • More than half have industry revenues of less than EUR 10 000 per staff. • A sizeable minority survives on non-competitive subsidies. 5

  6. How important is innovation in the EU-10 Area? World Bank’s Collaboration on Innovation

  7. Innovation, Technology and Entrepreneurship Key Pillars Policy interventions Project Examples Poland 2020 Romania and Bulgaria Functional Reviews Russia Innovation: Fostering Regional Capacity • Diagnostic of innovation systems • Development of innovation strategies • Public expenditure review on STI • Monitoring and Evaluation of policies/programs • Policy for Innovation Systems Croatia: Science and Technology Project Chile Science for the Knowledge Economy Mexico: Innovation for Competitiveness South Africa Economic Diversification and SME Development • Establishment of National Quality Infrastructure • Strengthening of Technology extension programs • Reform of R&D institutes and R&D • commercialization: • Technology Transfer and Diffusion • Financing for Innovation and Entrepreneurship Kazakhstan Technological Innovations infoDevGlobal Network of Business Incubators and Entrepreneurs • Tax incentives and grants for growth companies • Support to early stage and VC for start ups • Incubation and networking for entrepreneurs • SME lines of credit • Bulgaria Education Reform • Chile Reform of Tertiary Education • Formation of Human Capital for the Knowledge • Economy (from early childhood to lifelong • Learning) • Skills development

  8. Policies for Innovation • Systems • 10 years of Knowledge • Economy Forums stimulating • a regional debate on key • innovation policy issues

  9. Policies for Innovation Systems • Comprehensive Review of R&D and Innovation Policies and Governance Framework: • Romania R&D and Innovation Functional Review (2011) and development of action plan • Bulgaria Innovation Review (2011) • Poland 2020: Fueling Growth through Employment, Skills and Innovation (2011)

  10. Policies for Innovation Systems – Other regional areas • Croatia: Science and Technology Project (Phase I and II) • Macedonia: Competitiveness Assessment (2011) • Western Balkans: Strategy for R&D Collaboration across countries (2011) • Russia: Regional Innovation Systems (2011) • Latin America (e.g., Governance of Chile’s Innovation System; support for Innovation policies and M&E at the State Level in Mexico and Brazil)

  11. Russia: Strengthening innovation policies at the sub-national scale to generate outcomes • Project location and title • Russia – Enhancing Regional Innovation Systems • Objective • Strengthen Russia’s ability to implement innovation policies at the regional level • Description • The project will pilot regional innovation strategies and a regional innovation observatory. This work also includes: • Opening a dialogue between federal and regional governments on innovation policy • Development of regional innovation action plans • Dissemination of knowledge on regional innovation systems and policies. • Project Deliverables • Deployment of Regional Innovation Action Plans to develop the Russian economy through the prism of entrepreneurship, innovation and technology • Monitoring and evaluation feedback loops will enable Regions to benchmark their innovation systems • Regional innovation strategy and action plan will be developed for the Tomsk region • An action plan for knowledge and tech commercialization will be developed in the Republic of Tatarstan • Impact • The efficiency of public funding for innovation in participating regions is increased, as measured by strategic regional innovation outputs indicators (e.g. publicly-financed R&D leads to real products in the marketplace, technology parks host firms that conduct real R&D, universities produce skills adapted to the labor market)

  12. Innovation, Technology and Entrepreneurship Key Pillars Policy interventions Project Examples Poland 2020 Romania and Bulgaria Functional Reviews Russia Innovation: Fostering Regional Capacity • Diagnostic of innovation systems • Development of innovation strategies • Public expenditure review on STI • Monitoring and Evaluation of policies/programs • Policy for Innovation Systems Croatia: Science and Technology Project Chile Science for the Knowledge Economy Mexico: Innovation for Competitiveness South Africa Economic Diversification and SME Development • Establishment of National Quality Infrastructure • Strengthening of Technology extension programs • Reform of R&D institutes and R&D • commercialization: • Technology Transfer and Diffusion • Financing for Innovation and Entrepreneurship Kazakhstan Technological Innovations infoDevGlobal Network of Business Incubators and Entrepreneurs • Tax incentives and grants for growth companies • Support to early stage and VC for start ups • Incubation and networking for entrepreneurs • SME lines of credit • Bulgaria Education Reform • Chile Reform of Tertiary Education • Formation of Human Capital for the Knowledge • Economy (from early childhood to lifelong • Learning) • Skills development

  13. Harnessing Quality for Global Competitiveness (2011) • An assessment of the state of the national quality infrastructure in Eastern Europe and Central Asia

  14. Technology Transfer and Diffusion • Croatia: Science and Technology Project (Phase I and II) • Realigning Research Institutes to Industrial Needs • Latin America • Chile: Assessment of Technology Transfer System (policy reforms under implementation) • Public-private R&D consortia • Chile: fruits, wine and acuaculture • Mexico: electronics, aeronautics, autoparts, agriculture • Development of Networks of Technology Transfer Offices • Mexico: under development

  15. Example 2: Strengtheninginstitutions to help governments to strategically focus R&D spending towards innovation. • Focus Areas within the Innovation Ecosystem • Innovation Policy • Technology Transfer and Diffusion • Financing Instruments for Innovation • Project location and title • Republic of Croatia Science and Technology Project • Objective • Strengthening and restructuring Croatia’s R&D institutions for the purpose of commercializing their research outputs and upgrading technological capabilities of enterprises • Description • Restructure R&D Institutions to enhance outputs • Stimulate the creation of venture capital • Develop Technology Financing Programs • Strengthen technology research and policy programs • Project Deliverables • Strategic planning, staffing, accounting and marketing at Croatia’s R&D institutions • Upgrade of Croatia’s Technology Centers to support start-ups and established SMEs • Establishment and maintenance of venture capital funds • Creation of linkages between R&D with Croatian industry • Creation of a Productivity and Quality Facility designed to give SMEs technological and management know-how • Setting up a science policy institute for use by policy-makers and industry. • Expected Impact • Increased commercialization of technology from research • Strategic policy-making on research and innovation Funding Model: $40m IBRD Loan plus $7m of financing from the borrower

  16. Innovation, Technology and Entrepreneurship Key Pillars Policy interventions Project Examples Poland 2020 Romania and Bulgaria Functional Reviews Russia Innovation: Fostering Regional Capacity • Diagnostic of innovation systems • Development of innovation strategies • Public expenditure review on STI • Monitoring and Evaluation of policies/programs • Policy for Innovation Systems Croatia: Science and Technology Project Chile Science for the Knowledge Economy Mexico: Innovation for Competitiveness South Africa Economic Diversification and SME Development • Establishment of National Quality Infrastructure • Strengthening of Technology extension programs • Reform of R&D institutes and R&D • commercialization: • Technology Transfer and Diffusion • Financing for Innovation and Entrepreneurship Kazakhstan Technological Innovations infoDevGlobal Network of Business Incubators and Entrepreneurs • Tax incentives and grants for growth companies • Support to early stage and VC for start ups • Incubation and networking for entrepreneurs • SME lines of credit • Bulgaria Education Reform • Chile Reform of Tertiary Education • Formation of Human Capital for the Knowledge • Economy (from early childhood to lifelong • Learning) • Skills development

  17. Lebanon: Facilitating the growth and success of higher-value SMEs and Start-ups for job creation • Lebanon Innovation and SME Growth Project • Objective • Increase Lebanon’s competitiveness in high growth industries contributing to increased SME and start-up growth for job creation • Description • Job creation to be achieved through: • Increased skills in technology areas; • Business acceleration through incubators, mentoring programs, and seed funding. • Project Deliverables • Provision of $17 million in funding for gaps in priority R&D areas, leveraged with EU funding • Creation of a public-private mechanism to support training and skills development of graduates in the ICT industry • Establish more efficient technology-based incubators alongside infoDevresources. • Linking Arab Diaspora and Lebanese entrepreneurs for mentoring and access to potential angel financing • Matching grant funding for high growth enterprises and start-ups • Impact • The creation of jobs through the increased success of new start-ups and SMEs Funding Model: $32.6m IBRD Loan

  18. Innovation, Technology and Entrepreneurship Key Pillars Policy interventions Project Examples Poland 2020 Romania and Bulgaria Functional Reviews Russia Innovation: Fostering Regional Capacity • Diagnostic of innovation systems • Development of innovation strategies • Public expenditure review on STI • Monitoring and Evaluation of policies/programs • Policy for Innovation Systems Croatia: Science and Technology Project Chile Science for the Knowledge Economy Mexico: Innovation for Competitiveness South Africa Economic Diversification and SME Development • Establishment of National Quality Infrastructure • Strengthening of Technology extension programs • Reform of R&D institutes and R&D • commercialization: • Technology Transfer and Diffusion • Financing for Innovation and Entrepreneurship Kazakhstan Technological Innovations infoDevGlobal Network of Business Incubators and Entrepreneurs • Tax incentives and grants for growth companies • Support to early stage and VC for start ups • Incubation and networking for entrepreneurs • SME lines of credit • Bulgaria Education Reform • Chile Reform of Tertiary Education • Formation of Human Capital for the Knowledge • Economy (from early childhood to lifelong • Learning) • Skills development

  19. THANK YOU!

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