Innovation and Research

Last update: 01 03 2010

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Background

"It has been estimated that the European Union produces almost one third of the world's scientific knowledge. The research and innovation underpinning this knowledge help deliver the prosperity and quality of life our citizens expect," said Janez Potocnik, EU commissioner responsible for science and research.

In fact, EU failed to reach own targets set in Lisbon Strategy of growth and innovation. On the other hand, thanks to heritage of the communist rule, Visegrad countries have always been lagging behind the "old" EU members. Maybe, this is not just the case of Czech republic, which has been the leader among V4, when it comes to R&D funding (expressed like the ratio to the GDP).

CZECH REPUBLIC

Czech Republic is currently spending 0,65% of its GDP on R&D, less than European average, or 1,8% of GDP. Lisbon Agenda set itself a goal to increase the expenses on science and research to 3% of GDP until 2010 with a view to narrow the gap between the EU and its main competitors such as Japan and the US.

Since 1995, funding for science has quadrupled, Czech Statistical Office reveals. Also, the number of research institutions went up significantly. Numbers are nice, but if we take a closer look, picture changes. „Although the total sum of money increased, their proportion in terms of GDP did not change much. Growth of the research money owes particularly to EU and private funding. Under Lisbon Agenda, EU supposed that by 2010, research funding would rise to 3% of GDP – one third from public funds and the rest from private sector. But it is quite on the contrary – it is them [private companies] who claim for public support and that is the main problem,“ Václav Pačes, former head of the Academy of Sciences of the Czech Republic (ASCR), says.

Moreover, EU funding from structural funds will not be available forever. Czech Republic is expected to see less money since 2013 and even less so from 2015.

As community funding is concerned, Czech researchers have been involved in the EU Research Framework Programmes (currently FP7) – the main EU instrument in field of R&D. Within Framework Programmes, institutions gain grants for their research activites. The top-class research institions can also obtain a status of EU Center of Excellence and recieve extra funding. Some Czech research centres were also given such status, namely Machine Intelligence Research and Application at Czech Technical University in Prague (MIRACLE), Institute of Experimental Medicine at the ASCR (MEDIPRA) or Advanced Research Center for Cultural Heritage Interdisciplinary Projects at the Institute of Theoretical and Applied Mechanics of the ASCR (ARCCHIP).

With crises, many problems were exposed as many of them is still being unanswered. The most significant issue was already mentioned – the lack of funding combined with disproportion between private and public money. But there are many others, such as unequal performance of individual scientific branches, or brain-drain as many researchers flee abroad. Currently, around 73 thousand people work in the scientific research and approximately 10 % of them are employed by the ASCR.

ASCR was in the center of a recent turbulent public debate as Czech government decided to cut its funding by 20% annually. Such a step would overall mean more then 50% reduction in three consecutive years. Representants of the Academy claimed that it could endanger the existence of the institution, its ability to compete for specific grants, as well as the basic researach in some branches.

Decision to cut the budget for the Academy was a part of a wider reform where money were supposed to be transferred from basic research (more funding is currently available for this kind of research) towards applied sciences and innovation. Reform was also supposed to change methodology for measuring performance of various research projects and institutions. But many scientists, mostly from the ASCR itself (but also many others), warned that proposal would be lethal for Academy and Czech R&D.

In a final compromise proposed by Jiří Drahoš, the current chief of the Academy, government promised to moderate the budgetary cut for next year (2010). According to Eurostat, Czech Republic still invests more public money in basic research than the most of the European countries.

Despite deficiencies of the system, Czech scientists are being appreciated worldwide for their discoveries and innovative approaches in many scientific fields. Czech laboratories have astonished world with nanofibres (a credit of the university in the town of Liberec), computers for disabled controlled by eyes or recently with discovery of a substance that can help fighting HIV virus. Recently, Czech scientists were internationally awarded by the Association of American Physicians and Surgeons for developing the wound healing ointment Hemagel. The medicament was generated in the Macromoleculer Institute of the ASCR.

Since 2002, the successful innovators and scientists are awarded each year with a Czech national prize called Česká hlava (Czech Head).

The tradition of international acknowledgement of Czech scientists rests upon the names such as Josef Ressel, who invented a propeller in 1829, Josef Heyrovský, who constructed a polarograph and won the Nobel Prize in 1959 or Otto Wichterle who presented the world with gel contact lenses in 1960s.

HUNGARY

Hungary has spent nearly 1 billion euros on R&D in 2008, which means an increase of 8,4 percent related to the previous year. While the EU has set a target of 3 percent, this sum only comes out to be 1 percent of the country’s GDP and even this is seen as a record rate (only in three years, in 1993, in 2002 an in 2006 have been higher ratios).

In 2004 the Hungarian government accepted the first legal act about R&D policy and erected an Innovation Fund. In 2009 however, just recently after the EU27 choose Budapest to host the European Innovation and Technology Institute (EIT), the government decided to annul the support for the latter. As public opinion strongly opposed this step, Budapest decided to sustain financial support from the budget, but it was decreased by 80 percent.

“Developed states provide enhanced support for innovation as they believe this to become a motor of fighting financial crisis. The steps of the Hungarian government do not only mean that Budapest does not share this view, but it also paralyses the system of innovation in Hungary for years.” – professional organizations wrote in their common letter after the decision.

The Innovation Fund however financed the establishment of 19 Regional University Science Centers which is seen as a successful initiative by boosting R&D and innovation on a scientific level. Participating universities say that such cooperation also develops the research approach.

While SME-professionals say that not only the lack of funding but also the lack of innovative thinking is a major problem among SMEs, experts of the R&D sector claim that innovation is mainly driven by big, mostly multinational enterprises, that is by foreign capital.

The European Year of Innovation and Creativity however has attracted attention to the sector, so Hungarian innovations and researchers were awarded all over the year. At the young scientists awards Áron Hunyadi won 3rd prize by eliminating the force of gravitation in his innovative clock, 3D television technology was awarded by the newly erected Mobility and Multimedia Claster and also the blockbuster Avatar used the technology worked out by a Hungarian young scientist, Dániel Rátai.

The National Office for Research and Technology (NKTH) is responsible for the government’s technology and innovation policy, devises R&D and innovation programmes, etc. The Agency for Research Fund Management and Research Exploitation had been responsible for managing domestic calls for proposals financed by the Research and Technological Innovation Fund until January 2008, when it was merged into the NKTH. Funds allocated through the Operational Programs of the New Hungary Development Plan (2007-13) are managed by the National Development Agency, and its implementing or intermediary organization, the Hungarian Economy Development Centre (MAG Zrt.).

POLAND

In the middle of the ‘90s only 6,8% of Polish population had university degree whereas ten years later: 14.6%. In the year 2006 the universality of at least high school education was in Poland above EU average. In that year there were 115 state-run colleges and universities and 195 private ones. The total number of students amounted to 1 584 800. This is a sharp increase in comparison to the year 1990 (403 800 students). The process of increasing of the number of people with university education in all sectors of the economy (except agriculture) is very dynamic. Many Poles make efforts to obtain their diplomas in a hope for more attractive and better paid jobs.

That does not mean that Polish science is thriving. It is not. In 2006 total expenditures on research and development amounted to 5.9 billion zlotys (1.4 billion euros). This means that the expenditures on R&D related to the gross domestic product (GERD/GDP) amounted to 0,56% which was one of the lowest ratios in the European Union. According to the 2008 European Innovation Scoreboard, Poland is one of the least innovative countries on our continent. It ranks as 29 out of 35 European countries in that respect. A striking example: in 2005 the EU average for a number of patent applications was 105 per million inhabitants and in Poland 3. A huge civilization gap separates Poland from geographically close countries. Unfortunately, together with Romania, Bulgaria, and Slovakia, the innovativeness in Poland is deteriorating in comparison with the EU average.

During one of his meetings  with academic circle, prime minister Donald Tusk declared that the government’s goal is to reach the GERD/GDP ratio of 2% by 2013. And he added: “If young Polish scientists are to build their careers in Polish research centers and to contribute to Poland’s civilization success, then, apart from money, we must let in this inflow of new energy and inventiveness. We can do that only through wise deregulation and changes which will move our higher education system towards those models that bring the best results”.

He clearly referred to the fact that Polish system of higher education is anachronistic and is not competitive on the education market of Europe. For example, only two Polish universities (in Warsaw, and Jagiellonian in Krakow) were quoted in the world ranking of 500 best ones – and both were only in the fourth hundred. Fortunately, there are already five bills in the Seym (lower chamber of parliament) whose aim is to reform Polish system of science. Colleges and universities are to obtain more freedom in creating original, innovative and inter-disciplinary faculties. And leading scientific centers are to be selected, which is supposed to lead to the emerging of a group of flagship universities.

Polish system of facilitations for innovative companies does not look good, either. It is limited to various forms of public support (grants and subsidies, including those from the EU). The usage of the most efficient instruments (tax exemptions) is limited to the organizations that have the status of a research-scientific center. This has led to a negative result: the separation of R&D activity from the business. Little wonder  that there is no one single Polish enterprise that would be renowned internationally as being innovative. A huge economic progress Poland has made within the last 20 years proves that the society has an immense potential and is open to innovations. The barriers in the economic and political system stem this potential – so far very effectively.

According to the Ministry of Science and Higher Education’s “Strategy of the Development of Polish Science till 2015”, the priority areas, i.e. those where research efforts should be particularly concentrated are: health, energy, production and innovative services. This should be done especially, as this document says, with the development of biotechnologies, nanotechnologies and IT.

Poland’s commitment in the European Research Area in the past was reflected by the country’s 10th rank in the 6th Framework Program. However in the 7th Framework Program the country is not doing so well anymore and fell down to the 13th position with a possibility of being still overtaken by other countries. An example of Poland’s commitment in the ERA is the participation of Polish National Center for Research and Development in the consortium of 24 institutions called EurNanoMed, dedicated to the development of nanomedicine.

The most renowned Polish public awards in the fields of science and research are granted by the Foundation for the Polish Science and are called, without much imaginativeness, “Polish Nobles”. They are awarded on an annual basis (this year this took place for the 18th time) in four fields: natural science, exact science, technology and humanities. The amount of money relating to a Polish Nobel (200 000 zlotys, which is ca. 47 000 euros) is not as generous as that of its Swedish “equivalent”, nevertheless for local standards it is not a scarce sum.

SLOVAKIA

In 2009 Slovakia invested 0,46% of its GDP on research and development. In 2006 the Slovak government approved two crucial frameworks for the support of R&D as well as education. Namely the Operational Program for R&D and the Operational Program for Education.

The most important legal framework in the field of research and development in Slovakia is the Operational Program (OP) for R&D 2007-2013. The government approved the OP at the beginning of December 2006 together with 10 other OP under the headline "National strategic reference framework". The European Union will support Slovak R&D with approximately 1 billion euro in the period 2007-2013 and another half billion euro will be allocated by the government and other resources. Approximately 30% of the resources will be allocated in the Bratislava region. The OP is financed by the European Regional Development Fund.

The OP can be regarded as a direct part of the Lisbon strategy for Slovakia, because its aim is to support a well balanced development of research in Slovak regions as well as improving the conditions for the realization of national and international projects. Furthermore it is directly connected with the strategic guidelines of the EU concerning the support of knowledge and innovations. In this context the EU predominantly focuses on creating a connection between the research sphere with application of the research- development results into practice.

The main aim of the OP for R&D is to modernize and  increase the efficiency of the system supporting the actual R&D. Furthermore the OP aims at increasing the quality of the infrastructure of universities so that they are able to contribute to building up  competiveness of the economy, lowering regional disparities, create new innovative (high-tech) small and medium companies, create new jobs and improve conditions of the educational process at universities. The OP includes seven priority axis with a focus on Bratislava and non-Bratislava regions and technical support.

In 2008 the Slovak government has also approved the modernisation program "Slovensko 21". The program sets out specific short, medium and long term goals for the sector of research, development and innovations. 

On 7th November 2007 the European Commission also approved the Operational program for Education 2007-2013. On the basis of this program, Slovakia receives support from the European Social Fund and its national sources for developing human resources in the field of education. The Slovak Ministry of Education is the main guarantor of the program. This program follows up on the programs valid for the period of 2004-2006. During the previous period, the Ministry of Education received proposals for 1620 projects from which more than a half were successful. The biggest interest was in supporting and strengthening further education.

In contrast with the years 2004 - 2006, education is now a completely separate program. Previously it was a joint program with the OP on employment and social inclusion. The main aim of the OP is to support long term competiveness of Slovakia through the adjustment of the educational system to the educational needs of the society. The government set aside 617,8 mil euro for the program and the grants will be available for applicants from regional education, university education as well as further education. The program has five main priority axis and those are further divided into various measures. The five priorities are; reform of the educational system and vocational training, further education as an instrument for development of human resources, support for education of people with special educational needs, modern education for the educational society in the Bratislava region and technical support for the Convergence Goal.

However, According to Janez Potočnik, the ex-commissioner responsible for R&D, who attended the conference on R&D in Bratislava in April 2009, the amount of GDP which goes on R&D is a very low number also in comparison with other member states of the EU. But he also added that Slovakia does have a great potential, but until now the country did not take the advantage of it. Especially the modernisation program Slovakia 21 and the new financial model should  further support research and development in Slovakia.

Speaking at the conference "Educational society in practice: HI-TECH SLOVAKIA", which took place on 3rd April 2009, Dušan Čaplovič, the vice-chairman of the Slovak government for Knowledge-Based Society said that research in Slovakia should focus on no more than five priorities. The current proposed number 12 in the prepared document "Financial model on research and technology" is according to him too high.

The priorities should be progressive materials, new technologies, biotechnologies, environment, renewable energy sources and climate changes. Jozef Habánik the secretary of state of the Slovak ministry of education said at the conference that the document was still in a working version.

Since then the financial model was proposed for a public expert debate and was highly criticised by the Slovak Academy of Science. They did not like that the ministry focuses only on applied research and financing research activities of the business sector. The financial model was proposed for discussion in the parliament by the minister of education Ján Mikolaj on 7th October 2009, but the talks were postponed.

At the end, former research commissioner Janez Potocnik's opinion about situation in Slovakia on field of R&D:

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