Miroslav JanečekMiroslav JanečekKnowledge Economy Forum VKnowledge Economy Forum V

Prague March 28 – 30, 2006Prague March 28 – 30, 2006

R&D for InnovationR&D for InnovationThe Czech ApproachThe Czech Approach

Current situation in the Czech RepublicCurrent situation in the Czech Republic

R&D InstitutionsR&D Institutions UniversitiesUniversities Academy ofAcademy of SciencesSciences Private sectorPrivate sector

R&D FundingR&D Funding (2005) (2005) Very complex systemVery complex system (t(the amount of money: 0,56 public, 0,he amount of money: 0,56 public, 0,775 private5 private) )

GERD/GDP:0,56% vs.BERD/GDP: 0,75%GERD/GDP:0,56% vs.BERD/GDP: 0,75% Strong institutional fundingStrong institutional funding (60 % (60 % of R&D financed of R&D financed

by by the the SState)tate)

Main ChallengesMain Challenges

Current state oCurrent state of f the the industryindustry Governance of Governance of research institutionsresearch institutions Lack of political commitmentLack of political commitment Insufficient Insufficient support for technology transfersupport for technology transfer Big concentration of R&D capacities to Big concentration of R&D capacities to

Prague (70 % of the state budget for R&D)Prague (70 % of the state budget for R&D)

Successful MeasuresSuccessful Measures

Positive trends in state funding in the last 18 months Positive trends in state funding in the last 18 months Collaborative programsCollaborative programs Science-technology parks (Structural Funds)Science-technology parks (Structural Funds) Fiscal incentives since 2005 (companies can deduct Fiscal incentives since 2005 (companies can deduct

their own R&D expenditures from the tax base) their own R&D expenditures from the tax base) R&D evaluation more emphasiR&D evaluation more emphasisse on both scientific e on both scientific

excelexcelllencencee and practical results and practical results

Collaborative ResearchCollaborative Research

Common feature: Joint research between Common feature: Joint research between industrial companies and academicindustrial companies and academic i institutionsnstitutions

Industrial programs Industrial programs TT TT Centres, Consortia, Tandem Centres, Consortia, Tandem funded by the Ministry of Industryfunded by the Ministry of Industry

General programs General programs Research Centres A, B Research Centres A, B (RC A, RC B)(RC A, RC B) funded by the Ministry of Educationfunded by the Ministry of Education

Industrial Programs Industrial Programs

Short to middle term horizonShort to middle term horizon

Projects focused on a defined goal Projects focused on a defined goal pproductroduct//technologytechnology

Funding from the state budget 25 – 50 %Funding from the state budget 25 – 50 % industrial research and developmentindustrial research and development

Tandem has a broader scope of activitiesTandem has a broader scope of activities starting from basic researchstarting from basic research

Industrial Program Facts…Industrial Program Facts…

FFacts on Iacts on Industrial ndustrial ProgramsPrograms

TT CentresTT Centres ConsortiaConsortiaTandemTandem

DurationDuration 1998-20031998-2003 2001-20062001-2006 2004-20102004-2010

Costs Costs 3,54 / 1,3473,54 / 1,347 4,38 / 1,9354,38 / 1,935 2,88 / 1,8342,88 / 1,834

(CZK bil.)(CZK bil.)

Specific featureSpecific feature chemical specchemical spec.. telecomtelecom.. higher ratio of higher ratio of

coal processingcoal processing machinerymachinery basic basic researchresearch

new materialsnew materials eligibleeligible

General ProgramsGeneral Programs

Mid to long term horizonMid to long term horizon

Oriented towards improvements within a sector (no Oriented towards improvements within a sector (no concrete product concrete product anticipatedanticipated as a project goal) as a project goal)

General Program FactsGeneral Program Facts:: 2 categories 2 categories (A - (A - basic research, basic research, B - B - applied research)applied research) 21 + 12 projects have been awarded21 + 12 projects have been awarded ffunding from the state budget CZK 1,57 bil. + 1,71 bil.unding from the state budget CZK 1,57 bil. + 1,71 bil.

General ProgramsGeneral Programs - - EExamplesxamples

Basic researchBasic research (RC A)(RC A) Research centre for applied opticsResearch centre for applied optics Centre of cell therapy and tissue substitutionCentre of cell therapy and tissue substitution Research centre of laser plasmaResearch centre of laser plasma New and prospective inorganic compounds and materials New and prospective inorganic compounds and materials

Applied researchApplied research (RC B)(RC B) Centre for the machinery equipmentCentre for the machinery equipment Centre of complex crude oil processingCentre of complex crude oil processing

RC RC Program AchievementsProgram Achievements I I

Positive featuresPositive features

CCritical mass has been achieved in ritical mass has been achieved in the awarded the awarded important sectorsimportant sectors

Centres have been realised internationally as a new R&D qualityCentres have been realised internationally as a new R&D quality

Many new PhD students have been educated in these CentresMany new PhD students have been educated in these Centres

Practical applications of some resultsPractical applications of some results (eg. Machinery, Aircraft (eg. Machinery, Aircraft manufacturing)manufacturing)

Relationships between people from various institutions and Relationships between people from various institutions and companies have helped create new alliances companies have helped create new alliances

RC RC Program achievementsProgram achievements II II

Negative featuresNegative features

R&D priorities have not been respectedR&D priorities have not been respected All 33 centres were assessed as excellentAll 33 centres were assessed as excellent In few cases no continuation of very promising In few cases no continuation of very promising

activitiesactivities No direct successor to category B programNo direct successor to category B program

Science-Technology Parks Science-Technology Parks

Thanks to an older programme more then Thanks to an older programme more then 20 STP20 STPss and Business Innovation Centres and Business Innovation Centres have been createdhave been created

Only some of them work wellOnly some of them work well

BIC Plzeň BIC Plzeň 18 companies, e.g. Panasonic SW, 77 employees, 1925 m18 companies, e.g. Panasonic SW, 77 employees, 1925 m²²

Technological Incubator VUT BrnoTechnological Incubator VUT Brno 15 companies e.g. YSoft, 90 employees, 521 m15 companies e.g. YSoft, 90 employees, 521 m²²

Current increase strongly supported by EU Structural Current increase strongly supported by EU Structural Funds Funds Business Incubators and Transfer Technology CentresBusiness Incubators and Transfer Technology Centres

SpaceSpace for Improvement for Improvement

Change the proportion of various funding Change the proportion of various funding mechanisms (institutional/project)mechanisms (institutional/project)

Enhance the amount of funding for collaborative Enhance the amount of funding for collaborative researchresearch

Use fiscal measures (tax incentives) to encUse fiscal measures (tax incentives) to encoourage urage collaborative researchcollaborative research

Apply National Innovation PolicyApply National Innovation Policy

Improve the entrepreneurship environment Improve the entrepreneurship environment

Orient EU structural funds to ROrient EU structural funds to R&&D and innovationD and innovation

Thank You Thank You for your Attentionfor your Attention

Miroslav JanečekMiroslav JanečekR&D CouncilR&D Council

Association of Research OrganisationsAssociation of Research Organisationsjanecek@avo.czjanecek@avo.cz