Policy Support Facility (PSF) in Research and Innovation for Lithuania

Milda Dargužaitė

Chancellor of the Government of the Republic of Lithuania

Brussels, 2017.02.22

GERD is slowly increasing. However, mostly becauseof investments by HEIs and the government

Achieving the goal for 2020 seems to be improbable

0,57 0,58 0,60 0,62 0,56 0,67 0,65 0,71 0,71 0,76 0,87 1

0,22 0,23 0,19 0,2 0,230,24 0,24 0,24 0,32 0,28

0,38

0,9

1,78 1,781,85

1,94 1,93 1,97 2,01 2,03 2,04 2,032,12

3

0,79 0,80 0,79 0,83 0,780,90 0,89 0,95

1,03 1,04

1,25

1,9

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020extrapol.

2020 goal

HEIs and government Business sector EU

EU

Lithuania

Gross expenditure on R&D

Source: Eurostat, Statistics Lithuania

Share of business funds in Lithuanian HEIs and research institutes R&D activities is about 10%, but possibly because of ESIF channeled through business institutions

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0%

10%

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40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Foreign funds

Non-profit funds

HEIs funds

Governmentfunds

Business funds

Total

mln. €

0

10

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70

0%

10%

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Foreign funds

Non-profit funds

HEIs funds

Governmentfunds

Business funds

Total

mln. €

Source: Statistics Lithuania

R&D expenditure (HEIs)

R&D expenditure (research institutes)

Number of joint academic and business research papers remains the lowest in the Baltic states

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

2008 2009 2010 2011 2012 2013 2014 2015 2016

Science - industry collaboration, % of total publications

EE

ES 28

OECD

LV

LT

Source: InCites (updated Jan 14, 2017)

Main reasons for low science – business collaboration:different goals, skill gap, lack of trust

MOSTA survey results (2014):

Business sector‘s view about science sector:

• Research programmes are too inert and are not applicable in practice

• Possibility of IP appropriation

• Institutional inflexibility

• Not enough knowledge about activities at HEIs and research institutes

Science sector‘s view about business sector:

• Focused on short-term benefits

• Does not take investment risks

• Limited capacity to absorb innovation and new technologies

• Only engages in dialogue to participate in ESIF programmes

Aim 1: Fostering cooperation between science and business

Goals:

• Private investments by companies in research and innovation

• Sustainable job creation from science and business cooperation

Jobs created by greenfield FDI projects have been growing recently. More than 5000 jobs are expected to be created by FDI projects announced in 2016.

Source: Invest Lithuania

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2010 2011 2012 2013 2014 2015 2016

Greenfield FDI projects (left axis) Jobs planned (right axis)

Although the number of R&D-oriented FDI projects has been growing, the job creation volumes by these projects remain low

Source: Invest Lithuania

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500

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2010 2011 2012 2013 2014 2015 2016

Job creation plans of greenfield FDI projects

Shared Services Centre Manufacturing IT development R&D Other

Aim 2: Attracting research and innovation –oriented foreign direct investments to Lithuania

Goals:

• Increase in foreign direct investment in greenfield research and innovation projects

• Establishment of new R&I centers by existing foreign companies

Lithuanian R&I system (governance and funding)

Source: Adapted from A. Paliokaite

Additional challenges:

• Weak policy design and programme management capacities

• Fragmentation in policy instruments, programmes, institutions, infrastructure and monitoring systems

• Mismatches between skill supply and demand

• Low commercialization of public research

Source: RIO country report, 2016; EC Country Report Lithuania, 2016

Government action plan 2016 – 2020 (regarding R&I system)

• Improving public STI system governance, ensuring unified policy and efficient cooperation among institution

• Creating effective chain of knowledge and technology transfer to business

• Creating new incentives for business to invest in R&D

• Establishing internationally recognized centers of excellence in specific science and technology areas

• Making society and business more aware about the benefits of research, technological advancement and innovations

• Incentivizing traditional industry to transform towards knowledge-intensive product creation

Our expectations from PSF:

• Concrete roadmap

• Toolbox

• KPIs

• Recommendations for immediate wins