innovation governance in ireland: the problem of coherence in a newly emerging nis rachel hilliard...
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Innovation Governance in Ireland: the problem of coherence in a newly emerging NIS
Rachel Hilliard CISC Seminar11 November 2004
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MONIT Project Background
• 1995 - 2001 OECD project onNational Innovation Systems
• redirecting innovation policy interactive model
• Is it feasible that national governments and their policy making modes can remain largely the same?
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Project Methodology
• 15 partner countries – cross comparison• Innovation policy governance• Case study policy areas:
Info Society; regional; environmental
learn from efforts to develop national capabilities for innovation policy governance.
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Innovation Policy Governance
1. STI performance
2. Policy challenges
3. Position of STI policy
4. National capabilties for innovation governance
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Irish STI Performance
Picture 1: IRL
-3
-2
-1
0
1
2
3A1 INNO-EXP
A2 PATENTS
A4 EMPLOYM. IN MT/HT MANUF.
A5 EMPLOYM. IN HT SERV.
A6 INWARD FDI STOCK
BERD
A7 DIRECT GOV. FUNDING OF BUS. R&D
B1 S&E GRAD. (20-29)
PhDS/10.000 INH.
B2 PUBLICATIONS/MILLION
B3 BASIS RESEARCHB4 SHARE RES. POL IN OVERALL BUDGETC1 BUSINESS FINANCED R&D AT HEI
C2 BUSINESS FINANCED R&D AT GOV.
C4 SHARE OF CO-OP INNOVATORS
D1 TERTIARY EDUC. (25-64)
D2 PARTCIPATION LLL
D3 KNOWLEDGE INVESTMENTS
DX VENTURE CAPITAL
F1m % INNOV. FIRMS MAN.
F1s % INNOV. FIRMS SER.
F2 LABOUR PROD. (HOUR WORKED)
F3 AAG VA IN MT&HT / GDP
IRL Mean
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STI Profile
Strong• Employment in med/high tech manuf./services, inward
FDI, S&E graduates, share innovative firms in services and manuf., labour productivity; value added
Weak Patents, BERD, government funding of bus. R&D, publications, basic research, share of R&D in overall budget, business funded R&D at labs and HEI, tertiary education, participation in life long learning, knowledge investments,Profile: Strong company system, good overall performance, weak on knowledge system
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Historical Context
1990 largest per capita national debt in the worldunemployment and emigration; stagnation
late industrialiser stimulate the development of an NIS
1990s unprecedented growth, convergence
1993 GNP/capita = 74% of EU average2000 GNP/capita = 97% of EU average
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Problems of Convergence
2000 4th in WEF Growth Competitiveness Rankings
2003 30th in Growth Competitiveness Rankings
2000 40% of trade = research intensive
RTI generated abroad technology taker
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Technology Balance of Payments (as percentage of GDP), 2001
-0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8
-8.15
United KingdomSwitzerland
Denmark (1999)United States
Japan (2000)Finland
Austria (2000)
Italy
Spain (2000)
Poland (2000)
Australia (2000)
Korea (1999)
Ireland
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Profile of Industry and Innovation330 firms research performers
300-400 firms minimum capability
4000 firms low technology SMEs
BERD: 73% of EU and 57% of OECD average
100 firms account for 80% of total R&D spend by business
Continuous R&D performers:
20% of MNCs 10% of indigenous
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Policy Challenges
persistent challenges since 1982• competitiveness of indigenous industry• embed MNC industry
sharpened focus
develop a knowledge driven economy• R&D based MNC activity• high tech clustered indigenous industry
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Challenges STI Policy
capacity of research institutions to conduct relevant research
attractiveness to mobile MNC R&D
research capacity of Irish firms
pool of high-quality, technical graduates
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Policy Mix: National Development Plan 2000-2006
RTDI & Education €698m 28%
RTDI Infrastructure €777m 32%
RTDI & Industry €484m 20%
RTDI networks €267m 11%
RTDI & Natural Resources €227m 8%
RTDI & Environment € 32m 1%
€2471m
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Is there coherence in the Irish NIS?
1996 White Paper proposed STIcoordination mechanisms
2002 Commission to examine develop proposals for innovation policy coordination mechanisms
2000- Largest investment in STI in history2006 of the state lacks coordination
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1996 White Paper on Science and Technology
need for (i) strong elements in NIS(ii) interactions between elements
Cabinet committee to consider STI supra-departmental STI budget junior minister linking two key departments
proposals never implemented
no common commitment to STI investment culture of departmental autonomy too strong
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2002 ICSTI Commission on Policy Framework
• Report under review by Government• Findings unpublished
chief scientific advisor independent of any department
cabinet committee to set priorities
disagreement about location/’control’ 2004 proposals finally implemented
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Ireland’s €1.3b STI Investment
PRTLI• Education & Science
• funding of universities’ own research strategies
• collaboration between universities
• infrastructure-focus
SFI• Enterprise Trade &
Employment
• funding of excellent research
in nationally strategic areas
• collaboration with industry
• research based
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Implications
• initiated as 2 unconnected policiesPRTLI private donor aiding 3rd levelSFI strategic identification of ICT/BioT
• timing infrastructure decisions preceded research teams awards
• differing budget commitmentsSFI maintained budget when PRTLI ‘paused’
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Why does the Irish system lack coherence?
• maturity?
• political culture?
• commitment to the innovation agenda?
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Maturity
newly evolving NIS first STI policy – 1996
first significant investments in 2000
STI for 2000-2006 €2.5b
STI for 1994-1999 €0.5b
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Political Culture?
‘everyone in Ireland believes in coordination, but nobody wants to be coordinated’
• Department of Finance - strong formal/actual control
• Departmental Autonomy
• Limited use of cross-cutting approach to policy only in response to high-profile priorities (crisis?)
eg: infrastructure; drugs
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Commitment?
• Narrow commitment to the innovation agenda:
Enterprise Trade and Employment Ministry= the innovation champion
logic of NIS approach has limited acceptance
failure to persuade wider polity of (i) priority; (ii) potential gains; (iii) costs of
failure
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Any evidence of good coordination?
• Around specific external/common issues
Bottom-up work on STI framework conditions:
contracts; IP terms; researcher career paths
implications of the Lisbon Agenda
European Research Area
• 2004 1. Chief Scientific Advisor
2. Knowledge Society Foresight
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Conclusions
• Administrative culture
• Political imperative for innovation agenda
• Late industrialiser – emerging NIS
• Future developments?