S&T International Cooperation Network for Eastern European and

Central Asian Countries

Conclusions

Stakeholders Conference

EECA“EU-EECA Cooperation in the Innovation Sector: Bi-regional Responses to Major

Societal and Economic Challenges”

Kiev,Ukraine 25 - 26 April 2012

Content

• Introduction 4

• Innovation–majorpolicyobjectiveinbothEUandEECA 6

• Goodpracticeexamplesandlessonslearnt 7

• RecommendationsforastrongerEU-EECACooperationinInnovation 9

• Shapingthefuture–nextsteps 11

IncoNetEECAisaprojectfundedunderthe7thEuropeanFrameworkProgrammeforResearch–projectnumber212226.ThecontentsofthispublicationarethesoleresponsibilityoftheauthorsandcaninnowaybetakentoreflecttheviewsoftheEuropeanUnion.

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ThePolicyStakeholdersConference that tookplaceinKievon25-26April2012wasthefifthinaseriesof Conferences organized in the framework of theIncoNet EECA and IncoNet CASC FP7 projects. ThefocusoftheeventwasontheEU-EECA Cooperation in the innovation sector with a focus on the bi-regional responses to major societal and economic challenges.

TheConferenceinvolvedcompetentactorsandstake-holdersactiveintheInnovationfieldandfocusedοnthereviewingofthestateoftheEU-EECASTIcoop-erationprovidingaforumforexchanginggoodprac-tices,collectinginformationonpresenttrends,initia-tives,capabilitiesandneeds inbothEUandEECAintheinnovationsector.

About 80 policy makers and representatives of theacademicandprivatesectorsfrom11EECAcountriesand13EUMSandAC,aswellasrepresentativesof

Introduction

1Thepresentationsmadeduringtheeventareavailableat:http://www.inco-eeca.net/en/371.php

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theECandUNECEattendedtheconferenceandex-pressedtheirinterestandcommitmentinanenhancedbi-regionalEU-EECAcooperationininnovation1.

The Conference in Kiev followed a similar event inWarsaw (November 2011) where the “White PaperonOpportunitiesandChallengesinViewofEnhanc-ingtheEUCooperationwithEasternEurope,CentralAsiaandSouthCaucasus”wasfirstpresented.JointlypreparedbyexpertsfromEUandEECAcountriesandresulting fromawide stakeholder consultation pro-

cess,theWhitePaperprovidesaknowledgebaseonthestateofaffairs inSTIpolicies, identifiesa seriesof Challenges and Recommendations on EnhancingtheEU-EECASTICooperation,manyofwhichtouchdirectly or indirectly the issue of Innovation. In ad-dition,theWhitePaperproposesashort-termimple-mentationscenario,includingalsoaJointImplemen-tationRoadmapandaqualitativeimpactassessmentforeachrecommendation.

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statebodiesresponsibleforinnovationpolicydevel-opment and implementation are created. Nationalstrategies are fostering in priority capacity buildingandinfrastructuredevelopment.

AttheleveloftheEC,strengtheningtheroleofInno-vationinparticularwithrespecttosocietalchallengesisatthecoreoftheH2020andalreadyappearsama-jorobjectiveintheproposedorientationofthe2013FP7 International CooperationWork Programme. Adedicatednewtool(R2I-ENP)willbeintroducedwiththeobjectivetobridgethegapbetweenresearchandinnovationinENPcountriesandtoimprovetheper-formanceintransferringandusingknowledgeresult-ingfromresearch.

Innovation isakeyparameterforeconomicgrowth,whilebeingamajorcomponentinSTIpoliciesinEU(Horizon 2020, Innovation Union flagship) and intheEECAcountries(nationalSTIstrategies,CISPro-grammeforCooperationinInnovationetc.).

On thewhole, Innovation is seenasa key responsein addressing core social and economic challengessuchaslowgrowthrate,environmentalthreats,etc.Strengthening innovation is one of the answers toweakpatentingperformanceandtolimiteddevelop-mentofnewproducts,processesandservices.

Specificattentionwasgiventotheroleandpotentialimpact of social innovation on various areas of so-cietaldevelopmentincludingeducationandtraining,workandemployment,socialandhealthcaresystems.

Similarly,corechallengesintheEECAregion,suchasthesignificantlyweakproductivitygrowthwidespreadacross countries and industries and the shrinking la-borforceespeciallyforhighskills,couldbeaddressedthroughInnovation.

Promotionof Innovation is increasingly becoming apriority in most of the EECA countries, where newlaws on stimulating innovation activities exist and

Innovation – major policy objective in both EU and EECA

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AnumberofgoodpracticeexamplesinbothEUandEECA countries have been highlighted with regardsto innovation policies and fundingmechanisms, de-velopment of innovation structures and successfulacademia-industry partnerships that could spread tomanyothercountries.

Significant insight was provided on the necessarysteps for thematurationof a national research andinnovationsystem,inparticularwithreferencetotheprerequisite to have all system components (includ-inggovernment, intermediaryactors,R&Dorganiza-tions)inplaceandcooperatingamongeachother.Ithasbeenemphasizedthatanationalstrategyandanaction plan need to be developed, followed by thedefinitionofpriorities,oftenbasedonsmartspecial-ization, while the results of the implementation ofsuchpolicyinitiativesshouldbeassessedfrequently.

Particularattentionwasplacedontheroleofinterna-tionalreviewsasatoolforimprovednationalinnova-tionpolicies.SuchisthecaseoftheUNECEinnovationperformancereviewsrecentlyconductedinEECAcoun-tries (BY,KZ). In this regard, the need to ensure thecooperationandsupportofthenationalstakeholdersintheimplementationoftherecommendationsarising

fromthecountryreviewshasbeenemphasized.

Severalsuccessfulinitiativesforsupportingenterpris-esinvolvedinR&Dhavebeenhighlighted:

• directpublic fundingsupport for researchandinnovation(withapreferenceonresearchaddress-ingsocietalchallenges);

• revolvinginstrumentsfortechnologyabsorptionandnewpre-commercialprocurementschemes;

• simplificationofprocedures for takingpart insupportprogrammes;

Good practice examples and lessons learnt

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• involvementofbroaderexpertiseintheprocessofevaluationoftheapplications.

The experience shows that the following could betakenabroadaslessonslearnt:

• Theimplementationofinnovativeprogrammesrequires cooperation between entrepreneurs andresearchcommunity,butthesupportofpublicin-stitutionsisveryimportant;

• Innovationstructures thatarebeingsetupatthelocal/nationallevel,needaglobalperspectiveandinternationallinkage.

In younger EUMSandAC (CzechRepublic, Poland,Romania,Turkey)butalsoinseveralEECAcountries(such as Armenia, Kazakhstan, Uzbekistan) activitiesthatstimulateinnovationhavebeendistinguishedasgood practice examples. It isworthmentioning thenew support tools for start-ups and the increasednumberofTechnoParksinKazakhstan,theset-upofInnovationCentersinArmenia(withpriorityintheICTfield)andthecreationofnewTechnoParksonHighTechnologiesandIndustrialHighTechinUzbekistan.

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DespitetheencouragingemergenceofbestpracticesinthefieldofInnovationinbothEUandEECAcoun-tries,theneedforadditionalefforts forcatching-upwithinternationalcompetitorsiswidelyrecognizedasapriorityinbothregions.Inthatrespect,therecom-mendationsoftheWhitePaper,asaresultofbroadconsultation among policy makers and the scienceandinnovationcommunitiesfrombothEUandEECAregions,constituteasolidbasisforjointactionsthatcandirectly impact Innovation. Inparticular,atten-tionshouldbegiventorecommendationsaddressing:

I.Thepolicystrategylevel,i.e.:

• toimplementpolicymixreviewsofnationalSTIpolicies;

• tostrengthentheknowledge-basedcross-sec-toralpolicyapproachesatgovernmentallevel;

• toassessandadvancethenationalregulatoryframework for IPR according to internationalstandards.

Governmentalactionintheaforementionedtopicsishighlydesired,inparticularforsettingtheInnovationframework(IPR,taxation,legislation).

II.Thestrengtheningoftheroleoftheprivatesectorinresearchandinnovation,i.e.:

• Involving the private sector in STI policy dia-logueprocessesfromtheverybeginning;

• Supporting the setting up of innovation clus-ters and technological platforms in EECA andenhancingtheparticipationofprivatecompaniesfromEECAinsuchstructuresbysharingthebestEUpractices;

Recommendations for a stronger EU-EECA Cooperation in Innovation

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• LaunchingPublicPrivatePartnerships(PPP)andengagingtheminco-financingprogrammes;

• Continuing and/or extending mutual learningactivitiesamongtransitioneconomiesinthenew-erEUMSandEECAcountries;

• Organizing training courses on innovationmanagementandentrepreneurshipandsupportingtheSMEsinrecognizingtheneedsofthemarket;

• Creating collaborative competitive R&D andinnovation fundingprogrammes involving enter-prises, based on excellence and deploying openandtransparentselectionprocedures;

• PromotinginvestmentsfromEUintheinnova-tionsectorinEECA;

• Stimulating mutual learning activities in thefieldofinternationalstandards;

• Simplifyingtheproceduresforthecreationofinnovative start-ups stemming from universitiesandresearchinstitutes.

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IntheframeoftheEU-EECAcooperationinthefieldof Innovation it is important to agree on a joint implementation road map,focusingonspecificpri-orities tobeimplementedontheshort,mediumandlongterm,takingalsointoaccounttheexpected im-pactofeveryprioritytoimplement.

Further,itisimportanttoidentifythepotentialstake-holderstobeinvolved(policymakers,scientists,pri-vatesectorandindustry)frombothEUandEECA(ontheprincipleofvariablegeometry)andtorecognizetheadequatesourcesoffunding(National,Bilateral,FP7/H2020, ENPI,DCI,other) for the actions tobeundertaken.Last,butnotleastthereisaneedformo-tivated and high-skilled volunteers that will set-upandimplementsuitableprojects.

Shaping the future – next steps

PROJECT & CONTACT DATA:S&T International Cooperation Network forEastern European and Central Asian Countries

Websites: www.inco-eeca.net www.incrEAST.euStart date: 1 January 2008End date: 30 June 2012Coordination: International Centre for Black Sea Sudies (ICBSS) 4 Xenophontos St. 10557 Athens, Greece

Dr. George Bonas Project Coordinator Phone: +30 210 3242 321 E-mail: gbonas@eie.gr

Imprint

International Centre for Black Sea Studies (ICBSS)

Print: Citronio, Athens

Greece, April 2012EECA