R&I Policy in LatviaRecent Reforms

Dr. Agrita Kiopa

Deputy State Secretary – Director of Higher Education, Science and Innovation Department

Ministry of Education and Science of Republic of Latvia

Key StatisticsM

illi

on

EU

R

% o

f G

DP

Funding from structural funds R&D

Funding from higher education institutions R&D

Funding from businesses R&D

EU framework programme funding

State funding R&D

Total investments R&D, % of GDP

INDICATORS Base value

2017 2020

Investment in R&D (% from GDP) 0.6 (2013)

1.2 1.5

Position in the EU Innovation Union Scoreboard

modest (2013)

modest

follower

Efficiency in the processing industry (EUR per employee)

20,126 (2013)

24,500

29,000

Private sector investments in R&D (% of total investments)

21.8 (2013) 46 48

Proportion of innovative companies (% of all companies)

30.4 (2012) 35 40

Proportion of high-technology and medium-high-technology sectors in the export of Latvian goods (%)

23.8 (2012)

27 31

The number of R&D personnel (public, private sector)

5593 (2013)

6300 7000

A smaller number of stronger publicly-funded scientific institutions

42 (2013) 30 20

Proportion of graduates (ISCED level 5 and 6) in the STEM fields from the total number of graduates, %

19 (2012) 25 27

Results of Assessment of Scientific Institutions (2013)

• Assessed 150 scientific units• 4 and 5 points – 15 units• 3 points – 33 units• 2 points – 70 units• 1 points – 22 units• 0 points – 10 units

PANEL OBSERVATIONS• Absolute low level of financing• Average level of quality and performance in the Latvian research system has scope for improvement • Teaching and research should not be separated in a small country• Perverse incentives in the system encourage fragmentation• Human resource and research management skills need radical improvement• Internationalization of people and themes is urgent

Role of Government – Enabler

Core programmes to implement Science, Technology & Innovation Guidelines (2013) adopted in 2014 and in implementation:

1) Structural reform and fostering excellence of research institutions - concentrating research resources and developing research programs for internationally competitive Research Institutes and Universities

2) Reform of HE funding system – introducing performance model, integrating study with research, and alligning the two with needs of sustainable economic development

3) RIS3 implementation and monitoring system - institutionalizing entrepreneurial discovery, excellence, relevance and sustainability

4

Higher Education Council gives

suggestions for the state funded study place allocation to

MoES

Higher Education Council with MoES and line ministries

analyze this information in the context of funding

allocated for the year

MoES finalizes and approves the state funded study place allocation for the upcoming year

Previous model of Higher Education Funding:

One-pillar “Study –Place” Model

HEI’s evaluate their capacity to produce specialists and suggest the distribution of study places

Line ministries give their suggestions about the necessary

specialists in their fields

Employer representatives give suggestions related to the labour

market needs in the relevant sector

Ministry of Economics provides the labour market forecast for the upcoming years (medium-term

forecast)

The procedure defined in the

legislation

Towards a Three-pillar Funding Model: Stability/ Performance/ Development

Stability:

“Study places” as the form of state budget allocation

Performance:

Performance agreements which specify target indicators

Integrated state allocation for studies (study places) and research

(basic funding)

Development:

Strategic specialization

Funding for development

Agreements for medium-term development

stability

change

0-scenario (stagnation) Slow development Development of the knowledge society

Links Created between Science, Technology and Innovatin and Social and Economic Development Needs: Implementation of the Three-pillar Funding Model for Higher Education

teaching

pillar 1: basic funding

pillar 2: performance –

oriented funding

pillar 3: innovation –

oriented funding

• numbers of studyplaces (per field)

• cost oriented weight

• number of graduates

• number of incomingand outgoingstudents

profile-orientedtarget agreements

teaching + research +third mission

research • numbers ofresearch staff(per field)

• cost-orientedweight

• bibliometricindicator

• third party funds

• number of PhDs

funding of centers of excellence

7

In state funded study places

53% of students

(state HEIs)Budget fundingfor study places

Budget fundingfor research

Performance-based funding in 2015:

• External funding;• MA, PhD in research

(FTE)

ERDF funding 215 - 2018:

• Post-doc research• Innovation grants• Joint programmes

• Strategic specialization 

Transition to the new funding model will begin in 2015:• Revision and

optimization of study places’ model

• Upgrading performance agreements

• Introduction of performance incentives

• Programming structural funds’ activities

RIS3 for Latvia: “Hybrid Strategy”Transformation of economy towards higher added value, productivity and more effective usage of resources

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1. Structural changes of production and export in the traditional sectors of the economy;

2. Growth in sectors where there is or is likely to create products and services with high added value;

3. Branches with significant horizontal impact and contribution to economic transformation.

Directions: Priorities:

1. High added value products

2. Productive Innovation System

3. Energy Efficiency

4. Modern ICT

5. Modern education

6. The knowledge base (Bio-economy; Biomedicine, medical technologies, biopharmacy and biotechnology; Smart materials, technology and engineering, Smart energy; ICT)

7. Polycentric development

1. Knowledge-based bio-economics

2. Bio-medicine, medical technologies, bio-pharmacy and biotechnologies;

3. Advanced materials, technologies and engineering systems

4. Smart energy

5. Information and communication technologies.

Specialization areas:

Objective: to increase innovation capacity and to create innovation system that promotes growth of economy

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Result of Implementation of the Smart Specialization StartegyChange of economic model

New competitive advantages

The Concept of the RIS3 Monitoring:Three-level Monitoring System

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The overall goals of the RIS3  

RIS3 macro level indicators

RIS3 micro level indicators

The institutions involved:LSISC, MoES (+SEDA)MoE (+IDAL,)MoF (+CFCA, DFI)MoA (+RSS)MoEPRD, Cross-Sectoral Coordination Centre

Defined in:(A)NDP 2014-2020; (B)Latvia’s NRP for “Europe2020” implementation;(C)National Industrial Policy Guidelines 2013–2020;(D)Science, Technology development and Innovation Guidelines 2014–2020.

INDICATORS achievable by the planned support tools/ programs;

DATA obtained from the management information system, project applications and reports.

Thank you for your attention!