National ICT Innovation System Study, PESTLE&SWOT AnalysisRomania Output Title National ICT Innovation System Study, PESTLE&SWOT Analysis-Romania Work Package WP3 - Context Analysis and Taskforce Formation Activity 3.3 - National ICT Innovation systems studies & Regional Synthesis 3.4 - National PESTLE & SWOT analysis and synthesis Short Description The aim of this study is to assess the situation in the ICT RTD sector by identifying the policy framework, the institutional structure and operational organisation of innovative activities in the each country. Status Final Distribution level Internal (Partnership) Responsible partner National Institute for Research & Development in Informatics–ICI Bucharest Version v01 Revision History: Version Responsible Organization Comment 01 ICI Bucharest First version of the document created and provided to the UoM as Responsible partner LEGAL NOTICE Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use, which might be made, of the following information. The views expressed in this report are those of the authors and do not necessarily reflect those of the European Commission. © FORSEE Partnership, 2011 Reproduction is authorised provided that the source is acknowledged. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 2/86 Table of Contents National ICT Innovation System Study, PESTLE&SWOT Analysis-Romania............................................. 1 Executive Summary ................................................................................................................................. 7 1 2 Introduction and Methodology ..................................................................................................... 10 1.1 Introduction ......................................................................................................................... 10 1.2 Report methodology ............................................................................................................ 11 National ICT Innovation System Study .......................................................................................... 14 2.1 Governance structure of national R&D/innovation systems ............................................... 14 2.1.1 Institutional set-up of innovation policy ......................................................................... 14 2.1.2 General policy considerations ......................................................................................... 16 2.1.3 R&I policy milestones ...................................................................................................... 17 2.1.4 Main national innovation related organisations ............................................................. 18 2.2 Priority setting and public policies ....................................................................................... 21 2.2.1 R&I policies in Romania ................................................................................................... 21 2.2.2 Main priority axis ............................................................................................................. 21 2.3 Mapping the major actors in RDI ......................................................................................... 30 2.3.1 Overview of main actors.................................................................................................. 30 2.3.2 R&D infrastructure .......................................................................................................... 33 2.4 The ICT Sector and the RDI Sector in National economy ..................................................... 36 2.4.1 Overview of the ICT sector .............................................................................................. 36 2.4.2 Structural aspects of Romanian economy ....................................................................... 40 2.4.3 Competitive aspects ........................................................................................................ 44 2.4.4 Trade and financial aspects of R&D ................................................................................. 46 2.4.5 Innovation in enterprises................................................................................................. 50 2.4.6 Other strategic trends ..................................................................................................... 51 2.5 Main components and interactions of innovation systems (barriers and drivers) ............. 53 2.5.1 Regulatory framework ..................................................................................................... 53 2.5.2 Venture capital and the public sector ............................................................................. 53 2.5.3 Links between industry and academia or links between enterprises and public research organisations ................................................................................................................................. 54 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 3/86 2.5.4 Tax incentives for RDI ...................................................................................................... 55 2.5.5 Main sources of funding for innovation .......................................................................... 55 2.6 3 Cross cutting issues and challenges ..................................................................................... 59 2.6.1 Human Resources ............................................................................................................ 59 2.6.2 Links between education and RDI ................................................................................... 61 2.6.3 Internationalization of R&D ............................................................................................. 62 2.6.4 Future challenges ............................................................................................................ 64 National PESTEL and SWOT analysis ............................................................................................. 66 3.1 Political, Economic, Social, Technological, Legal and Environmental analysis of the emerging innovation system ............................................................................................................. 66 3.1.1 Core information ............................................................................................................. 66 3.1.2 Additional information .................................................................................................... 70 3.2 Strengths, weaknesses, threats and opportunities of/for the emerging innovation system 74 3.3 Self assessment tool: Features of well performing national and regional research and innovation ......................................................................................................................................... 79 4 Conclusions.................................................................................................................................... 81 5 Abbreviations, References ............................................................................................................ 82 5.1 Abbreviations ....................................................................................................................... 82 5.2 References ........................................................................................................................... 84 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 4/86 List of Tables Table 2-1. National RDI related organisations ...................................................................................... 18 Table 2-2. Existing Romanian R&D and innovation policy measures (in chronological order) ............. 22 Table 2-3. Priorities of the National RDI Strategy ................................................................................. 26 Table 2-4. INCDs coordination and profile ............................................................................................ 31 Table 2-5.The structure of RENITT ........................................................................................................ 33 Table 2-6. The activity profile of scientific and technological parks ..................................................... 33 Table 2-7. ICT strategies in the implementation phase ........................................................................ 37 Table 2-8. ICT development indicators EU27 / Romania ...................................................................... 38 Table 2-9. ICT Profile for Romania......................................................................................................... 39 Table 2-10. Structural indicators of Romanian and EU27 economies................................................... 40 Table 2-11. Main societal challenges .................................................................................................... 41 Table 2-12. Regional RDI indicators....................................................................................................... 42 Table 2-13. Innovation aspects in 3 development regions ................................................................... 43 Table 2-14. Doing Business Report........................................................................................................ 44 Table 2-15. Global Competitiveness Index for Romania, 2011 ............................................................. 45 Table 2-16. Innovation Capacity Index – Romania ................................................................................ 46 Table 2-17. Indicators of trade .............................................................................................................. 46 Table 2-18. R&D Finance ....................................................................................................................... 47 Table 2-19. Innovation in Romanian enterprises .................................................................................. 50 Table 2-20. Other business indicators ................................................................................................... 50 Table 2-21. Skills-Competencies that enterprises look for ................................................................... 51 Table 2-22. Innovation stimulators ....................................................................................................... 51 Table 2-23. Indicators for open innovation .......................................................................................... 52 Table 2-24. Strategic partnership to support innovation ...................................................................... 52 Table 2-25. Collaboration with foreign countries ................................................................................ 52 Table 2-26. Gross Domestic Expenditure on Research and Development (GERD) [%] ......................... 56 Table 2-27.Distribution of public funding [%] ....................................................................................... 57 Table 2-28. Employment and Science and Technology indicators ....................................................... 60 Table 2-29. Access and use of international knowledge ...................................................................... 63 Table 2-30. Intellectual assets and patents ........................................................................................... 63 Table 2-31. Gaps compared with EU27 ................................................................................................. 64 Table 3-1. PESTLE core information ...................................................................................................... 66 Table 3-2. Investment indicators - estimated trajectory....................................................................... 70 Table 3-3. Comparative levels for environment indicators ................................................................... 70 Table 3-4. SWOT Table .......................................................................................................................... 74 Table 3-5. Self assessment tool ............................................................................................................. 79 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 5/86 List of Figures Figure 1. Overview of Romania’s research system governance structure ............................................ 15 Figure 2. R&D Intensity projections for Romania, 2000-2020 [34] ...................................................... 48 Figure 3. R&D Profile for Romania, 2009 [34] ....................................................................................... 49 Figure 4. Percentage distribution of the National Plan budget per programmes ................................ 56 Figure 5. Percentage distribution of researcher by age groups ............................................................ 59 Figure 6. Romania – GDP annual growth rate ....................................................................................... 71 Figure 7. Romania – inflation rate ......................................................................................................... 71 Figure 8. Romania – ICT technology expenditure [US dollar] ............................................................... 72 Figure 9. Romania – unemployment rate ............................................................................................. 72 Figure 10. Romania – literacy rate ........................................................................................................ 72 Figure 11. Romania – Internet users ..................................................................................................... 73 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 6/86 Executive Summary The FORSEE initiative aims to introduce a sustainable mechanism for ICT RDI Foresight in the region, attempting to tackle the absence of a regular process applied for technological future orientation and research policy review. The main objective of the project is to identify the shortcomings of the ICT RDI sector in the region and orchestrate the establishment of a regional collaboration network, working on ICT Foresight and exploring synergies and complementarities between research resources in the target countries. FORSEE will create a transnational structure that will design, operate, evaluate and refine the approach and tools for the implementation of national and regional Foresight exercises in the field of ICT RDI. In Romania, the scientific research, experimental development and innovation are the main activities creating knowledge and generating the economic and social progress [1]. The National Strategy for research, development and innovation, for the period 2007-2013 and its main implementation instrument – the National RDI Plan for 2007-2013 promote and support the tight interdependency between R&D and Innovation [2]. In 2010, according to national statistics, the GERD expenses represented 0.47% of GDP (i.e. 2413.5 million lei), down 0.01 percent compared to 2009. The running expenses represented 84.7%, while capital expenditures 15.3% (with 3.4% higher than in 2009). In total research spending, as compared with 2009, the fundamental research funding increased by 0.6% (from 42.3% to 42.9%) and the applied research funding by 1.2% (from 48.8% to 50.0%). The public funds had the same share in the R&D total expenditures in 2010 as in 2009 (54.9%), while the private enterprises sources decreased by 2.5% (32.3% vs. 34.8% in 2009). Regarding the capacity of the RDI system, the National Reform Programme for 2011-2013 underlines the discrepancies against the European average on the share of researchers in total employed population (3.64‰ in Romania, compared to 9.2‰ in EU27), the share of employees in R&D activities in total employed population (5.04‰ vs. 15.5‰), the share in the total employed population of the employees involved in activities with knowledge-intensive intake (6.16% vs. 13.03%). There was registered, however, a positive trend of the investment in research infrastructure, which increased over six times in 2010 compared to 2006. Also, the share of services exports of high and medium technology in total exports is close to the European average (44.91% in Romania, 49.43% in EU27), and the share of exports of high and medium technology products in total exports is above the European average (50.14% vs. 47.36%). As a dynamic, knowledge intensive economic domain, ICT had a significant contribution to these high-tech related indicators. In this context it is worth mentioning that for the Innovation Capacity Index - a tool for assessing the potential for innovation, one out of five component pillars is the adoption and use of ICT. The composite indicator of innovation (Summary Innovation Index - SII, 2010), conclusive for the results of the RDI system, is 0.237 for Romania compared to 0.516 in EU27, placing Romania in the group of modest innovators at the EU level. Nevertheless, the ANCS Report 2010 on Government Policies in the Field of Research–Development and Innovation in Romania indicate an increase rate of this indicator in the period 2006-2010 of 5.23% for Romania compared to 0.85% for EU27. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 7/86 The economic crisis seriously affected the RDI sector in our country. After a notable increase from 0.45% in 2006 to 0.52% in 2008, the Gross Domestic Expenditure on Research and Development GERD relative to the GDP went down to 0.47% in 2009. The public funding for national RDI programmes managed by the National Authority for Scientific Research (ANCS) dropped consequently by 27.6% in 2009 [7]. Also, approx. 30% of the research infrastructure investment planned for 2007-2009 was cancelled because of the budgetary limitations at the end of 2008 [8]. The negative consequences were evident: losses of qualified researchers in R&D institutions, especially in the National R&D institutes, weaker capacity to attract young researchers and to stop the migration of researchers abroad or towards better paid sectors, weakening of public-private partnerships [7]. In the same economic circumstances, in 2010, the public R&D expenditure increased only by 8.6% relative to 2009, getting closer to the values of 2008, but remaining still considerably lower than the funding planned in the National RDI Plan II [9]. According to the National Authority for Scientific Research, better inter-ministerial coordination of RDI policy instruments, adequacy of public funding and attractiveness of the research career are among the major challenges currently facing the RDI system [18]. Currently the RDI reformation efforts are oriented towards the priorities defined in the 2011-2013 National Reform Programme for this domain: strengthening the capacity and performance of RDI system in order to meet socioeconomic needs, stimulating the RDI investment growth in the private sector, and developing the European dimension of RDI policies and programs [5]. In line with the FORSEE project methodology, the implementation process of national and regional Foresight exercises begins with the context analysis per country and integration of local characteristics and views into the framework of the regional approach. The current document provides a national RDI systems study and a national PESTLE and SWOT analysis for Romania. Considering the ICT orientation of the FORSEE project, wherever appropriate the document provides ICT specific data, results and trends. In the context of the FORSEE project, the term Innovation generically addresses the full researchdevelopment-innovation cycle, emphasizing the project focus on the implementation and exploitation of R&D results in benefit of business and industrial communities, based on collaboration and interaction between academia, technology transfer infrastructures and enterprises. The report is structured according to template elaborated by the Task Leader-University of Macedonia, considering both to the SEE Programme Manual that stipulates that the innovation capacity can be described by the education system, the human resources (level of qualification) and the institutional framework for research and development (public and private sector, institutions, enterprises, budgets, programmes and politics) as well as the “Oslo Manual” of the OECD that provides guidance on innovation indicators and their interpretation. Following the introductory section including the report methodology, the second section is dedicated to the study of the national RDI system, where a large area of issues are tackled, according to the report methodology: governance structure of national R&D/innovation systems, institutional set-up of innovation policy, general policy considerations, R&I policy milestones, main national innovation related organisations), priority setting and public policies (R&I policies in Romania, main priority axis, overview of main actors, R&D infrastructure), the ICT sector development (including the ICT national profile in the European context), the RDI domain assessment in terms of competitiveness and WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 8/86 innovation potential of enterprises, main components and interactions of innovation systems (regulatory framework, venture capital, links between industry and academia, main sources of funding), cross cutting issues and challenges (human resources, links between education and RDI, international cooperation, future challenges). The third section of the document includes the PESTLE and SWOT analyses, based on facts emphasized in the previous section. The PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis provides a review of the country’s general environment within which the Foresight exercises will be implemented. The SWOT analysis is structured on several priority RDI clusters regarding the governance and policy system, the priority setting, public policies and actors, the sector features and cross cutting issues. The final part of this section is dedicated to the self assessment results regarding the RDI current status and its recent evolution, using a set of 25 Innovation specific statistical indicators. The elaboration of the report was based on the review of a large number of references including national RDI policy documents, annual reports of the National Authority for Scientific Research, European policy documents, Pro-Inno Europe reports, annual ERAWATCH reports, annual World Bank “Doing Business” reports, World Economic Forum and EU competitiveness reports, national and Eurostat statistics. The report, with the emphasis SWOT results, will be used to produce the regional common methodology and the national Foresight designs. The information collected by all national reports will be used to inform stakeholders, to map competencies and capabilities, to identify implications and strategies, and to extrapolate positive trends. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 9/86 1 Introduction and Methodology 1.1 Introduction According to the Governmental Ordinance no 57/2002 on scientific research and technological development, the scientific research, experimental development and innovation are the main activities creating knowledge and generating the economic and social progress [1]. As compared with the former period when the focus was put mainly on the research and development, the current 2007-2013 National RDI Strategy was build, after a nation wide Foresight exercise, with the aim of promoting and supporting the tight interdependency between R&D and innovation [2]. In line with fundamental research, applied research and experimental development activates, the document defines the innovation as “the implementation of a new or substantially improved product, service or process or a new business or marketing method, in practice, in workplace organisation or external relations”. To underline its relation with R&D, the innovation is seen as “an outcome, of which research can be one of the sources, next to other factors, such as experience, communication, marketing, etc. Therefore, a coherent innovation policy needs national horizontal coordination. The RDI Strategy sustains innovation that includes a research component, and aims for complementarities with the Structural Funds allocated for innovation, in order to articulate a national innovation system as part of the knowledge-based society”. To close the RDI loop, the technology transfer includes “all activities with or without a contractual basis, performed in order to disseminate information, to advise, to transmit knowledge, to purchase machinery and production equipment, towards the driving in the economic circuit of the research results, transformed into commercial products and services”. This vision is reflected by the current 2007-2013 National RDI Plan – the implementation instrument of the Strategy [3]. The FORSEE initiative aims to introduce a sustainable mechanism for ICT RDI Foresight in the region, attempting to tackle the absence of a regular process applied for technological future orientation and research policy review. In the context of the FORSEE project, the term Innovation generically addresses the full research-development-innovation cycle, emphasizing the project focus on the implementation and exploitation of R&D results in benefit of business and industrial communities, based on collaboration and interaction between academia, technology transfer infrastructures and enterprises. This report was elaborated within the WP3 – Context Analysis and Taskforce Formation of the FORSEE project. Although the project orientation is on the ICT domain, the report covers the overall RDI domain at the national level. The document is structured according to template elaborated by the Task Leader-University of Macedonia, considering both the SEE Programme Manual and the “Oslo Manual” of the OECD provides guidance on innovation indicators and their interpretation. The first part of the report (see Section 2) represents the national contribution to the Activity 3.3 – National ICT Innovation systems studies & Regional Synthesis, which is focused on identifying the institutional structure and operational organisation of innovative activities in the each country. The aim is to assess the situation in the ICT RTD sector and to map national ICT Innovation capacities as a basis of common understanding between regional stakeholders, to assist future collaboration WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 10/86 initiatives. The outputs of this activity will be utilized during the Foresight exercise planning and implementation. The second part of this report (Section 3) is compliant with the objectives of the Activity 3.4 – National PESTLE & SWOT Analysis & Regional Synthesis, and is based on the information provided in the first part of the report. The PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis provides a review of the country’s general environment within which the Foresight exercises will be implemented. The SWOT analysis is structured on several priority RDI clusters regarding the governance and policy system, the priority setting, public policies and actors, the sector features and cross cutting issues. This part ends with the presentation of the self assessment results regarding the RDI current status and its recent evolution, using a set of 25 Innovation specific statistical indicators. Finally the report provides some concluding remarks, a list of abbreviations used throughout the document and the list of references. 1.2 Report methodology The underlying objectives of the Greek NIS, PESLTE & SWOT report in relation to the main foresight work are summarized as follows: - to identify the main policies and implications for policy that lead to the definition of priority areas; - to understand the development, planning and implementation of ICT/RTD policies; - to grasp the region-specific needs for foresight by including the regional characteristics and regional goals, drivers and barriers; - to identify the sectors, technologies and industries that should be promoted to enhance regional competitiveness and the key development trends in central social issues; - to investigate some aspects of the innovation system central to foresight exercises, such as the design and implementation of research and innovation policies, the main orientations, the investment trends, education and training systems , key partnerships, framework conditions that promote business investments in R&D, public support to innovation etc.; - to perform PESTLE and SWOT as a basis for more detailed discussion about the scope of the foresight exercises and analyze each country’s external environment to review the general frame for implementation of exercises; - to enable key stakeholders involved in the foresight exercise access key information that may prove useful in strategic planning and scenario building; - to enable the FORSEE Consortium understand the resources and constraints related to ICT foresight that would contribute to the common methodology. The information collected by the national reports will be used to inform stakeholders, map competencies and capabilities, map implications and strategies and extrapolate positive trends. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 11/86 A National Innovation System encompasses a broad array of institutions and relationships involved in scientific research, the accumulation and diffusion of knowledge, education, technology development and the development and distribution of new products and processes. As hybrid systems, innovation systems cut across other societal areas such as education and training, business entrepreneurship, existing infrastructures or other sectoral policies that highlight the interplay of research and innovation stakeholders and actors. The present report employs a systems approach analysis that is inclusive of the main components of a NIS such as human capital, training, the institutional environment, the regulatory environment, R&D and usage of ICT as well as the resulting linkages among the components. Thus, the report aims to encompass the main building blocks of the innovation system so as to provide the “diagnostics” of the situation inherent in the country. The report’s structure (elaborated by the Task Leader-University of Macedonia) abides both to the SEE Programme Manual that stipulates that the innovation capacity can be described by the education system, the human resources (level of qualification) and the institutional framework for research and development (public and private sector, institutions, enterprises, budgets, programmes and politics) as well as the “Oslo Manual” of the OECD that provides guidance on innovation indicators and their interpretation [36]. It is also enhanced by additions based upon a scrutiny and review of European policy documents, country reports, Innovation Scoreboards and Competitiveness Reports generated by the European Union with a view of incorporating components that would serve the overarching aim of facilitating foresight work. Other conceptualizations of innovation flows (such as the concepts of innovation inputs and outputs of the Pro-Inno Europe (Commission)) are taken into consideration for the analysis of indicators [37]. A definition of “innovation” as perceived in the present report needs to be elucidated at the outset. According to the OECD innovation is “the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations” [36]. Innovation is seen as central within the knowledge-based economy, and it is recently that a better understanding of the complexity of the processes has been understood. Thus, the innovation system is perceived as an all-encompassing ecosystem based upon the pillars of science and technology institutions, the enterprise landscape, the broader framework condition of national institutional and structural factors and transfer factors that influence the efficiency of innovation linkages. The factors, policies and institutions fostering innovation as well as the underlying logic of analyzing them in the context of the present report are: • Institutions and the priority-setting during specific programming periods, which are essential issues to be taken into consideration by foresight exercises • Innovation governance (the implications of governance may foster or impede investment climate, entry to market, business innovation and general efficiency in the system) • The macro-economic environment of the country, especially in light of the current financial crisis, as fiscal and monetary policies can contribute to a stable domestic environment. • The regulatory framework and analysis of competitiveness of the country (obstacles to competitiveness and doing business may generate additional challenges for innovation and entrepreneurship. The role of public sector procurement policies and other conditions might prove favourable to foster innovation and they are subsequently analysed). WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 12/86 • ICT usage and the ICT landscape in the country. As FORSEE targets RDI ICT foresight, it is imperative to include indicators regarding ICT with regards to trade, expenditure, productivity, industry structure, economic significance etc. The micro-level (firms), the report endeavours to assess capacities to absorb knowledge. Specific focus in placed upon the specialization patterns of each country and existing infrastructure. • Other components and cross-cutting issues, such as links between industry and academia, links between the educational system and research, funding modes are analyzed according to the degree of strength and the underlying role within the NIS. Education and training are emphasized as drivers of innovation and are inherently included. In terms of report generation, the methodology was elaborated by the Task Leader and is reported as a two-stage process: I. During the first stage, the first section outlining the Greek NIS was elaborated. The process included an iteration of drafts reviewed by the responsible authors in cooperation with the University of Macedonia. At the outset, a literature review of work outlining the Greek Innovation System and its performance was performed so as to substantiate the statements provided on official data and safeguard a level of subjectivity and validity. II. During the second stage and based upon the results of the first stage, PESTLE& SWOT analysis was enabled. The template, specific guidelines, points for analysis, existing literature and references to be consulted as well as documents including statistical indicators for each country were drafted and provided by the Task Leader (University of Macedonia). It is important to highlight that most references date from 2009 onwards; however, in order to overcome the lack of information in specific domains older references are used as well (from 2007 onwards). WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 13/86 2 National ICT Innovation System Study 2.1 Governance structure of national R&D/innovation systems This section starts with an overview of the institutions involved in the RDI policy set-up, implementation and monitoring at the national level. Then some general considerations about the RDI policy are formulated and major events on the policy set up roadmap are outlined. More details about the mandate / goals / mission / of RDI related organisations are provided in the remaining part of this section. 2.1.1 Institutional set-up of innovation policy The overall structure of the Romania’s RDI system in presented in Figure 1, which is an updated version of the similar schema provided in ERAWATCH 2010 Country Report for Romania [7]. The governance responsibilities of this system are distributed on several levels starting from the Romanian Parliament down to RDI organisations and financial institutions. This complex structure requires an additional effort for communication and coordination inter and intra levels to avoid incoherencies and inconsistencies in policymaking and implementation. At the Parliament level, the Commissions for Education, Science, Youth and Sport of the Senate and of the Chamber of Deputies debate and approve draft laws and other legal documents on science, education, sport and youth. At the Governmental level The National Council for Science and Technology Policy is the government’s high level policy coordination body. The National Authority for Scientific Research (ANCS), which belongs to the Ministry of Education, Research, Youth and Sport (MECTS) is the key actor in RDI governance, which formulates and implements the RDI objectives and policies included in the Government Programme. MECTS collaborates with other ministries, which have limited role in the coordination of RDI activities in their specific domains. Their role consists in coordinating some national R&D institutes (see Table 2-4), participation in the National Council for S&T Policy, management of some Sectoral Operational Programmes, consultations on the role of R&D in the respective sectoral strategies (e.g. IT, energy, environment). In addition, MECTS collaborates with a few government-subordinated agencies that have specific functions related to R&D and innovation, such as the National Institute for Statistics, National Commission for Prognosis (subordinated to the Ministry of Finances) and the Agency for the Implementation of Projects and Programmes for SMEs, which was created in 2009 by GD 65/2009 on the basis of the former National Agency for SMEs, subordinated to the Ministry of Economy, Trade and Business Environment. At the MECTS level there are several Consultative bodies and the Executive Agency for Higher Education, Scientific Research, Development and Innovation Funding (UEFISCDI). The list of Consultative bodies includes the Advisory College for Research, Development and Innovation, the National Council for Scientific Research, the National Council for Development and Innovation, the National Council for Ethics, the Romanian Committee for Research Infrastructures. They are playing an important role in designing, implementing and monitoring of specific RDI policies. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 14/86 PARLIAMENT Commission for Education, Science, Youth and Sport (Chamber of Deputies) Commission for Education, Science, Youth and Sport (Senate) GOVERNMENT National Council for Science and Technology Policy Other ministries involved in RDI Government-subordinated agencies Ministry of Economy, Trade and Business involved in innovation Environment National Commission for Prognosis Ministry of Agriculture and Rural Development National Institute of Statistics Advisory Bodies Ministry of Regional Development and Tourism Agency for the Implementation of Advisory College for Research, Development and Ministry of Environment and Forests Projects and Programmes for SMEs Innovation Ministry of Communications and Information National Council for Scientific Research Society National Council for Development and Innovation Ministry of Transport and Infrastructure National Council for Ethics in Scientific Research, Ministry of Labour, Family and Social Technological Development and Innovation Protection Ministry of Public Health Executive Agency for Higher Education, Ministry of Administration and Interior Research, Development and Innovation Funding (UEFISCDI) Ministry of Education, Research, Youth and Sport (MECTS) National Authority for Science Research (ANCS) NATIONAL INSTITUTIONS Romanian Academy 52 institutes, 16 centres Academy of Medical Science 22 institutes, 12 clinics Academy of Agriculture and Forestry Sciences 25 institutes, 91 res./prods. units Academy of Technical Sciences OTHER NATIONAL COORDINATING AGENCIES IN STRATEGIC AREAS Romanian Space Agency Nuclear Agency Romanian Accreditation Association Romanian Standards Association R&D PERFORMERS National RDI Institutes Other R&D institutions Firms with RDI activities Public & Private Universities TECHNOLOGY TRANSFER AND INNOVATION-RELATED INSTITUTIONS S&T Parks Technology Transfer Centres Technology and Business Incubators Industrial Parks Business Innovation Centres Innovation Relay Centres R&D PERSONNEL FINANCIAL INSTITUTIONS Commercial banks, Donors Source: ERAWATCH 2010 Report [7] Figure 1. Overview of Romania’s research system governance structure WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 15/86 Other national institutions involved in R&D policy-making are: the Romanian Academy, the Academy of Medical Sciences, the Academy of Agriculture and Forestry Sciences, Academy of Technical Sciences (AST). There should be mentioned also National agencies coordinating strategic areas: such as the Romanian Standards Association (ASRO), Romanian Association for Accreditation (RENAR), Nuclear Agency and Romanian Space Agency (ROSA), the Nuclear Agency. 2.1.2 General policy considerations In Romania, the research and development activity is a national priority and has a decisive role in the strategy for sustainable economic development. The national strategy for research and development defines the state policy for the fulfillment of the objectives of nation interest in this domain and is approved by the Governmental Decision. In order to promote, support, develop and stimulate the research and development activity, the Government adopts policies to stimulate and coordinate this activity at the national level, ensures the financial sources and organises structures to administrate these funds, develop policies and regulations to create a favourable environment in the economy, to protect the national scientific patrimony, to distribute, use and valorize the results of the research and development activity. The current policy framework for RDI development is provided by the Governing Programme 20092012 and the National Reform Programme for 2011-2013, which are addressing explicitly the difficulties of the national RDI system under the impact of economic crisis and include concrete action lines to alleviate these difficulties. At the National level the main RDI policy document is the National RDI Strategy for 2007-2013 (National Strategy), representing the first integrated vision regarding the national RDI system and long term priorities [12]. The main objective of The National Strategy is to bridge the current gaps between Romania and European countries and it prepares the Romanian RDI system to identify and strengthen, through international openness, partnership and competition, those areas where Romania can excel. The National Strategy supports the strategic role and the priority of RDI as an engine of the economy competitiveness increase, ensuring a sustainable development of the economy. At the regional level, the main innovation policy instruments are the Regional Innovation Strategies (RIS) developed by six out of eight Romanian regions on the basis of their affiliation to the Innovating Regions in Europe (IRE) Network [7]. In Romania there are defined eight development regions: North-East, South-East, South Muntenia, South-West Oltenia, West, North-West, Centre, and the Capital region Bucharest–Ilfov. They are territorial units created by the voluntary association of 4-7 counties, in view of more efficient use of resources from national programmes and Structural Funds. At the national level, they are coordinated by the National Council for Regional Development, and at the regional level by eight Regional Development Councils and eight Regional Development Agencies (RDAs). According to the 2010 Annual Report of Regional Innovation Monitor project with a view on the autonomy of regions in the field of RDI policy, Romania is among a few countries in Europe where bottom-up and decentralized approaches in the RDI policy making are met, i.e. strategic documents designed at regional level, with the involvement of the regional stakeholders [6]. Nevertheless, the integration between the RISs and the national RDI strategy is weak, due to limited regional outreach of ANCS and collaboration with the RDAs, RDAs’ poor capacity to implement WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 16/86 regional innovation strategies, lack of innovation legal competences and expertise, understaffing and shortage/lack of experienced personnel in project management, limited capacity to stimulate cooperation between regional stakeholders. More recently, in the implementation of the national RDI policy adopted by ANCS since 2008 a regional focus was considered, consisting mainly in monitoring the regional distributions of projects funded by the 2007-2013 National RDI Plan [7]. 2.1.3 R&I policy milestones According to general policy considerations, this section presents some major documents adopted during the last 10 years, which are significant for their role and contribution to the current status of RDI policy set up and are included in the ERAWATCH database (http://erawatch.jrc.ec.europa.eu/erawatch/opencms/search/index.html): • Government Ordinance no. 57/2002 on the scientific research and technological development, amended and approved by the Law no. 324/8.07.2003. The document establishes the legal framework for the RDI activity: and includes the following main chapters: national RDI system (units and institutions, human resources), assessment of the scientific research and technological development activities, national R&D strategy and national R&D plan, funding R&D and innovation activities, capitalization and use of the R&D potential, results of the R&D activities, stimulation of technological development and innovation activities. • Law 50/2003 for approving GO 14/24 January 2002 regarding the creation and functioning of S&T Parks, as strategic partnership between academia and industry for the valorizing the R&D results and for support of the high-tech companies. • Government Decision 1264/13.08.2004 regarding the creation of the National Centre for Programme Management, with the aim of improving the quality and efficiency of activities related with competition-based selection, contracting, monitoring and assessment of RDI programmes and projects, as well as of actions include in the National RDI Plan. • Governmental Decision 1449/2005 on the organisation and functioning of the National Authority for Scientific Research within the structure of the Ministry for Education, Research, Youth and Sports, as the major public administration body for the domain of RDI policy making and implementation. • the National Strategy for research, development and innovation, for the period 2007-2013, elaborated through a broad consultation with the main RDI stakeholders, within the first national foresight exercise in S&T organised in 2005-2006 by ANCS within its Sectoral R&D Plan, and approved by the Governmental Decision no. 217/2007. • 2007-2010 National Reform Plan, which stipulates the increase of investments in R&D mainly for domains of major interest for the social and economic development, as ICT, innovative materials and products, advanced technologies. • 2007-2013 Sectoral Operational Programme “Increasing Economic Competitiveness” (SOP-IEC), to increase the productivity and competitiveness of Romanian companies; WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 17/86 • 2011-2013 National Reform Programme, following the launch of Europe 2020 Strategy; the document nominates the objective of achieving, by 2020, the level of 2% of the GDP for public and private investments in the RDI domain. 2.1.4 Main national innovation related organisations As reported in the overview of Romania’s research system governance structure presented in Figure 1, the main policy body in the RDI domain is the National Authority for Scientific Research (ANCS), according to its responsibilities to ensure the harmonization of objectives of the scientific and technical community and business environment in Romania with the science and technology priorities in the European Union, as well as the dynamics of their evolution and implementation. Therefore the information provided in Table 2-1 is focused on ANCS, its consulting bodies and the funding agency UEFISCDI. This list of organisations is illustrative for implemented changes during the last two years with the aim of adapting the institutional structure of the RDI governing system to its current objectives. UEFISCDI was established in 2010 by merging the activities of three former institutions: National Centre for Programme Management (CNMP), Executive Unit for Funding Academic Research (UEFISCU) and Managerial Agency for Scientific Research, Innovation and Technology Transfer (AMCSIT – University “Politechnica” of Bucharest). In 2011 the National Council for Scientific Research and the National Council for Development and Innovation have been established in order to reinforce the scientific coordination of the main programmes of the National RDI Plan II. Also the responsibilities of the Advisory College for Research, Development and Innovation have been updated in accordance with new methodological requirements regarding the assessment and classification of the RDI institutions. Due to the ICT orientation of this Report, the Ministry of Communications and Information Society (MCSI) has been included in the list of main national innovation related institutions. MCSI coordinates the Sectoral Operational Programme “Increase of Economic Competitiveness” – Priority Axis 3 “ICT for private and public sectors”, as well as the activity of both national institutes in this field - the National R&D Institute for Informatics and the National R&D Institute for Communications. During 2008-2010 MCSI coordinated two R&D Sectoral programmes in communications and information technology areas. Also MCSI hosts the National Contact point for the EU Competitiveness and Innovation Framework Programme. Table 2-1. National RDI related organisations Institution Mandate / Goals / Mission National Council for Science and Technology Policy (CNPST) CNPST was initially established in 2003 by Prime Minister’s Decision 2/6.01.2003. Its current structure and activity are according to the Governmental Ordinance no.6/26.01.2011. It represents the government’s high-level policy coordination body, under the Prime Minister coordination, which has as main mission to establish the priorities and legislative framework of the implementation of the 2007-2013 National Strategy for RDI and to ensure the coherence of government policies through horizontal inter-ministerial coordination. CNPST has 9 members, including 4 CCCDI’s members. CNPST presents an annul report to the government with conclusions and recommendations on the RDI activity and on the WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 18/86 development of the knowledge-based society and economy. National Authority for Scientific Research (ANCS) ANCS belongs to the Ministry for Education, Research, Youth and Sports. The statute of ANCS is settled by the Government Decision no. 1449/17.11.2005 with subsequent amendments (Official Journal no. 1101/7.12.2005). ANCS exercises the responsibilities of the state authority for researchdevelopment and carries out its activity in compliance with the provisions of the Government Ordinance No. 57/2002 on the scientific research and technological development, approved with amendments and additions by the Law No. 324/2003. The Authority’s mission is to ensure the elaboration, application, monitoring and evaluation of the policies in the field of research-development and innovation, consistent with the strategy and the Governing Programme, for the purpose of ensuring on this basis the enlargement of the national and international technological and innovation patrimony, the sustainable economic development, the access on the internal, European and global markets, the creation of the informational knowledge-based society. The Authority has the role and responsibility: to ensure the strategic and tactical planning; to define the strategic and tactical objectives; to define, apply, monitor and evaluate the policies necessary in order to achieve the objectives; to define the normative and methodological, functional, operational and financial framework necessary to apply the policies, to follow up the alorization of the national legislation with the legislation of the European Union and to absorb the acquis communitaire; to ensure communication with the other public authorities in order to achieve a coherent approach of the government policies; to ensure communication with the civil society structures and with the citizens; to define, finance, apply, monitor and evaluate programmes, for the purpose to achieve the objectives; to stimulate the regional and local development, as well as the one in the private sector; to stimulate the development of international partnership. Advisory College for Research, Development and Innovation (CCCDI) CCCDI is the main advisory body of ANCS. Its functioning has been modified by the Governmental Ordinance no. 6/26.01.2011. CCCDI’s mission is to provide specialized scientific support in developing policies and strategies to support R&D and innovation at national level, in coordination, evaluation and funding of scientific research, experimental development and innovation in Romania by MECTS – ANCS. CCCDI scientifically coordinates the evaluation and classification of units and institutions belonging to the national R&D system, in accordance with Art. 33 of the Governmental Ordinance no. 57/2002, and with methodological rules for assessment and classification, adopted by Governmental Decision. It coordinates the Institutional Performance program of the National RDI Plan II. National Council for Scientific Research (CNCS) Established according to the Ministerial Order no. 3794/01.03.2011 of MECTS (Official Gazette no. 152/02.03.2011), based on provisions of the Governmental Decision no. 133/19.02.2011. CNCS is a national advisory body, which has the mission to promote excellence in scientific research in Romania through assisting MECTS and ANCS in coordinating, monitoring and evaluation of scientific research activities in Romania. CNCS is in charge with the scientific coordination of Human Resources, Ideas and Capacities Programmes of the National RDI Plan II and of national competitions of scientific projects for awarding doctoral grants. CNCS took over the responsibilities of the former Committee for Research Infrastructures (CRIC). National Council for Development and Innovation (CNDI) Established according to the Ministerial Order no. 4087/2011 of the MECTS (Official Gazette no. 306/04.05.2011), based on provisions of the Governmental Decision no. 133/19.02.2011. CNDI has the mission to scientifically coordinate two programmes from the National RDI Plan II – Partnerships in Priority Domains and Innovation – as well as WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 19/86 other financing programmes of applied research and experimental development, programmes supporting innovation and entrepreneurship. National Council for Ethics in Scientific Research, Technological Development and Innovation (CNECSDTI) CNECSDTI is the main body that coordinates and monitors implementation of the rules of good moral and professional conduct in R&D activities in Romania. Its responsibilities are according to the Governmental Ordinance no 28/31.08.2011 on amending and supplementing Law No. 206/2004 of good conduct in scientific research, technological development and innovation (Official Gazette no. 628/2.09.2011) and the National Education Law no. 1/2011 (Official Gazette no. 18/10.01.2011). Executive Agency for Higher Education, Research, Development and Innovation Funding (UEFISCDI) UEFISCDI is a public institution with legal personality in the subordination of MECTS which was created by the Governmental Emergency Ordinance 74/2010 (Official Gazette no. 448/01.07.2010). UEFISCDI implements in a decentralized manner the management of several programmes included in the National RDI Plan 2007-2013 (Human Resources, Ideas, Capacities, Partnerships in Priority Domains, and Innovation), designs and implements nationally or internationally funded institutional development projects in higher education and RDI, provides consultancy and technical assistance for internal and international research and innovation programmes, and ensures the executive activity of several national councils for higher education and research. Ministry of Communications and Information Society (MCSI) MCSI was established according to the Government Decision no. 12/2009 with subsequent amendments (Official Gazette no. 51/28.01.2009, updated version according to subsequent amendments – 21.06.2010). It’s main objectives for the domain of electronic communications, information technology, information society and knowledge-based society services are the following: to ensure development strategies and unitary regulatory; to define strategic objectives for this domain; to define, implement, monitor, evaluate and coordinate the policy in the domain; to define the normative-methodological, functional, operational and financial framework for the application of policies; to follow up the harmonization of national legislation with the one of the EU; to ensure coordination of the other public authorities in order to achieve policy coherence in the domain; to ensure administration, efficient management and assignment for use of all goods in public ownership, belonging to this domain; to develop, finance, implement, monitor, evaluate, promote and manage programs and projects according to strategic documents; to encourage regional and local development, as well as the private sector; to stimulate development of international partnership. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 20/86 2.2 Priority setting and public policies This section presents in more details the main RDI policy documents and their priorities at the national, sectoral and regional levels. 2.2.1 R&I policies in Romania According to the selection made in section 1.3.3, Table 2-2 provides details about the main RDI policy documents regarding R&D Policies affected actions/orientation of these documents, and coherence with EU goals/priorities. 2.2.2 Main priority axis In compliance with the document specificity, RDI priorities are different by their horizon of action, their focus, and coverage. 2.2.2.1 National level priorities At the national level, the main policy documents formulating priorities for RDI activities planning, implementing and monitoring are: the National RDI Strategy for 2007-2013 and its implementation instrument – the National RDI Plan for the same period, the Governing Programme 2009-2012 and the Reform Programme for 2011-2013. At this level priorities are formulated as overall objectives and aggregated action lines. The priorities defined by the National RDI Strategy address national research areas:, horizontal goals to be achieved in each research area, and specific themes (programmes). Details are provided in Table 2-3 [2]. In case of the Governing Programme 2009-2012, the list of R&D related priority actions at the national level includes: ï‚· increase the R&D funding, including private sector sources; ï‚· allocate resources based on competition and exclusively on scientific quality, according to internationally accepted criteria; simplify funding procedures; ï‚· implement dynamic and competitive policies for human resources; ï‚· provide access to positions and competitions exclusively on professional performance; ï‚· ensure the multiyear funding of research projects, according to the European practices; ï‚· facilitate the usage of funds accessed by competition, including the implementation of the principle “funds follows the researcher”; ï‚· stimulate private investments in R&D; ï‚· implement a long term action plan for dissemination of scientific and technical results; ï‚· rationalize the institutional system. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 21/86 Table 2-2. Existing Romanian R&D and innovation policy measures (in chronological order) Strategy Document R&D Policies affected Actions/orientation Coherence with EU goals/priorities Establishing the legal framework for scientific research, technolog ical development and innovation activities in Romania. Government Ordinance no. 57/2002 on the scientific research and technological development, amended and approved by the Law no. 324/8.07.2003, with subsequent amendments (Official Gazette of Romania no. 643/30.08.2002, updated version according to subsequent amendments – 10.06.2011). The document sets out the general framework for undertaking scientific research and technological development activities in Romania and defines the key elements of the National R&D and innovation system. The law provides details on the creation, roles, structure and funding of national R&D institutes and the evaluation of their activities. It also refers to the evaluation and accreditation of higher education institutions with R&D activities. Furthermore, the law refers to the types, functioning, funding and evaluation of the programmes that can be financed from the public budget Addressing the guidelines set by the Lisbon Strategy and the European Union policies, which have stated that science and technology are the real key instruments for the European future. The implementation of this law has also been in line with the four priority areas of the renewed Lisbon Strategy adopted by European Council in 2006, mainly the priority supporting the growth of knowledge and innovation. . Creation and functioning of S&T Parks Law 50/21 January 2003 for approving GO 14/24 January 2002 regarding the creation and functioning of S&T Parks; 31/01/2003 The law approves Government Ordinance no. 14/24 January 2002 regarding the creation and functioning of S&T Parks. It specifies the entities that can be involved in a S&T Park (higher education institutions, R&D institutions, business firms, local public administration, professional associations, Romanian or foreign investors, physical persons, etc.), the conditions for the administration of the S&T Park and some fiscal incentives granted to S&T Parks. Addressing EU initiatives in the field of the Technology, Industrial-innovation and Science Parks which are seen increasingly as a means to create dynamic clusters that accelerate economic growth and international competitiveness. They are contributing the European industrial change, enhancing the innovation-, clustering-, B2B- activity, supporting the SME sector and the job creation. Improving the coordination and management of innovation programmes and projects Government Decision 1264/13.08.2004 regarding the creation of the National Centre for Programme Management; 02/08/2004 1.1.1 Strategy policy documents (official documents, policy consultation papers, green or whith papers, Operational Programmes of Structural Funds), 1.2.1 Strategic Research policies (long-term research agendas), 1.2.2 Innovation strategies, 1.3.2 Horizonal measures in support of financing, 2.1.1 Policy measures concering excellence, relevance and management of research in Universities, 2.1.2 Public Research Organisations, 2.1.4 Research Infrastructures, 3.1.3 Stimulation of PhDs. 1.2.2 Innovation strategies 2.2.1 Support infrastructure (transfer offices, training of support staff) 2.2.2 Knowledge Transfer (contract research, licences, research and IPR issues in public/academic/non-profit institutes) 2.2.3 R&D cooperation (joint projects, PPP with research institutes) 4.2.1 Support to innovation management and advisory services 4.3.1 Support to innovative start-ups incl. Gazelles 2.2.3 R&D cooperation (joint projects, PPP with research institutes) 1.2.2 Innovation strategies 1.3.3 Other horizontal policies (ex. societydriven innovation) 1.3.2 Horizonal measures in support of financing The document approves the creation of the National Centre for Programme Management as a public institution subordinated to the Ministry of Education, Research and Innovation, with a budget totally funded from extra budgetary resources. The National Centre for Programme Management was created with the purpose to improve the co-ordination and management of innovation programmes and projects by Addressing the integrated guidelines for growth and jobs from Lisbon strategy, such as ”to increase and improve investments in R&D”, ”to facilitate all forms of innovation”, ”to facilitate the spread and effective use of ICT and build a fully inclusive information society” and ”to strengthen the competitive advantages of its industrial base”. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 22/86 Implementing the government policy in the area of R&D and innovation Governmental Decision 1449/17.11.2005 on the organisation and functioning of the National Authority for Scientific Research, with subsequent amendments, published in the Official Gazette of Romania, part I, no. 1101/7.12.2005. Strategy policy documents (official documents, policy consultation papers, green or whith papers, Operational Programmes of Structural Funds) 1.2.1 Strategic Research policies (long-term research agendas) 1.2.2 Innovation strategies 2.1.2 Public Research Organisations 2.1.4 Research Infrastructures 2.2.2 Knowledge Transfer (contract research, licences, research and IPR issues in public/academic/non-profit institutes) 2.2.3 R&D cooperation (joint projects, PPP with research institutes) Increasing economic competitiveness and developing the knowledgebased economy 2007-2013 Sectoral Operational Programme “Increasing Economic Competitiveness” (SOP-IEC); 02/02/2007 2.1.4 Research Infrastructures 2.2.3 R&D cooperation (joint projects, PPP with research institutes) 2.3.1 Direct support of business R&D (grants and loans) Expressing the priorities of the Romanian society for the advancement of science, technology and innovation. Governmental Decision no. 217 / 28.02.2007 on the approval of the National Strategy for research, development and innovation, for the period 2007-2013, published in the Official Gazette of Romania, part I, no. 214/ 29.03.2007. 1.1.1 Strategy policy documents (official documents, policy consultation papers, green or white papers, Operational Programmes of Structural Funds) 1.2.1 Strategic Research policies (long-term research agendas) 1.2.2 Innovation strategies 2.1.1 Policy measures concerning excellence, relevance and management of WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis acting as a programme management unit within the structure of the Ministry of Education, Research and Innovation. The Centre aims to achieve this objective by finding partners for international R&D projects, alorizati competition-based selection of partners, ensuring effective planning and monitoring of programme activities, evaluation, risk assessment, dissemination of information, etc. The document defines the roles, functions and structure of the National Authority for Scientific Research (ANCS), the central public administration body with responsibilities in the area of R&D and innovation policy-making and implementation. In the process of implementing the government policy in the RDI area, ANCS collaborates with several other ministries and government-subordinated agencies, such as the National Institute for Statistics and the National Commission for Prognosis that have specific functions related to R&D and innovation. The high-level coordination is ensured by the National Council for Science and Technology Policy, for the coordination of RDI policies with other socio-economic policies at government level. The Sectoral Operational Programme ‘Increasing Economic Competitiveness’ (SOP IEC) is one of the seven operational programmes (Ops), under the Convergence objective, which aim to achieve the priorities of the 2007-2013 National Development Plan (NDP). The general objective of SOP IEC is to increase the productivity and competitiveness of Romanian companies, in compliance with the principle of sustainable development, and to reduce the gap to the average productivity of EU. The target is an average annual growth of GDP per employed person of approx. 5.5%, which will allow Romania to reach about 55% of the EU average productivity by 2015. The strategy was elaborated in synergy with the key national economic and political documents, e.g. the 2007-2013 National Development Plan, the 2007-2010 National Reform Plan, the National Education Strategy (especially the higher education component). The strategy provides the basis for organising the RDI system and establishes the key domains for public investment in RDI in the coming years and the specific implementation instruments. The document formulate the following strategic objectives: knowledge creation, i.e. Creation and development of a framework for RDI activities, in line with EU principles, criteria and procedures; Integration of Romanian RDI into the European Union and international RDI community. The priority axes of SOP IEC are in full compliance with the lines of action of the Commission’s proposal regarding the framework for Competitiveness and Innovation 2007-2013, and take into account the guidelines put forward by the EU Council for the cohesion policy for 2007-2013. Mobilise research to address major societal challenges and contribute to sustainable development Strengthen Research institutions, including notably universities, Enhance research capacity across Europe . 23/86 Increasing the country’s economic competitiveness over the period 2007-2010 and establishes priorities, measures deadlines and budgets associated with specific institutional settings 2007-2010 National Reform Plan; 31/10/2007 Defining and applying the main policies for economic development of Romania, in accordance with Europe 2020 Strategy and related policies 2011-2013 National Reform Programme; April 2011. research in Universities 2.1.2 Public Research Organisations 2.1.3 Research and Technology Organisation (private non-profit) 2.1.4 Research Infrastructures 2.2.1 Support infrastructure (transfer offices, training of support staff) 2.2.2 Knowledge Transfer (contract research, licenses, research and IPR issues in public/academic/non-profit institutes) 2.2.3 R&D cooperation (joint projects, PPP with research institutes) 3.1.3 Stimulation of PhDs 4.2.1 Support to innovation management and advisory services 1.1.1 Strategy policy documents (official documents, policy consultation papers, green or white papers, Operational Programmes of Structural Funds) 1.2.2 Innovation strategies 1.3.2 Horizontal measures in support of financing 4.3.1 Support to innovative start-ups incl. gazelles achieving high level, internationally competitive scientific and technological results; increasing the competitiveness of the Romanian economy through innovation with impact on the economic operators and knowledge transfer into economic practice; increasing the quality of social life through the development of solutions, including technology that will generate direct benefits on society. 1.1.1 Strategy policy documents 1.2.2 Innovation strategies 1.3.2 Horizontal measures in support of financing To reach the target of 2% GDP for public and private sector investment in RDI, in line with the Europe 2020 objectives, three main directions of action have been identified for the RDI domain: 1. Strengthening the capacity and increasing the performance of RDI system; 2. Stimulating the growth of RDI investment in the private sector; 3. Developing the European and international dimension of RDI policies and programmes. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis The priorities established in the NRP are based on a thorough analysis of Romania’s social and economic situation at the moment of EU accession and include the following areas: ï‚· Improving the administrative capacity ï‚· Improving the quality and the management of government expenditures ï‚· Improving market functioning ï‚· Improving the business environment – ï‚· Improving the labour market ï‚· Improving life quality through sustainable management of renewable energies and climate change – The NRP is correlated with sectoral strategies promoted by the 2007-2013 National Development Plan, the 2007-2013 National Strategic Framework, the 2007-2010 Convergence Plan and the 2007-2013 National Strategic Plan for Rural Development It was established according to the EC Communications “Working together for growth and jobs”, “A new start for the Lisbon Strategy”’ and “Integrated Recommendations for Growth and Employment (2005-2008)”. The NRP aims to create the conditions for Romania to reach the economic performances recommended by the revised Lisbon Strategy, addressing the following challenges: integrate macro- and microeconomic development policies and labour market policies into a coherent package, promote structural and institutional reforms in the priority economic sectors and the social sector, so that Romania can achieve a better, more flexible and more efficient socio-economic and institutional structure and absorb the Structural and Cohesion Funds provided by the EU. The programme was agreed with the International Monetary Fund, the European Community and other international financial institutions (World Bank, European Bank for Reconstruction and Development) and defines in a realistic roadmap, a set of key objectives for strengthening and reforming the tax administration, supervising the financial sector and structural reform of key sectors (employment, education, environmental 24/86 Justifying and prioritizing public investments related to the European economic and social cohesion policy 2007-2013 National Strategic Reference Framework; 06/09/2011 1.1.1 Strategy policy documents (official documents, policy consultation papers, green or whith papers, Operational Programmes of Structural Funds) Development of basic infrastructure at European standards. Long-term increase of the Romanian economy competitiveness. Development and more efficient use of Romanian human capital. Consolidation of an efficient administrative capacity. Balanced regional development. infrastructure). The NSRF relies on the long-term guidelines of the Strategic concept of spatial development and integration into the European spatial structures 2007-2025, thus adding the territorial cohesion dimension to the approach. Source: ERAWATCH 2011 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 25/86 Table 2-3. Priorities of the National RDI Strategy Research areas Goals Specific programmes 1. ICT, 2. Energy, 3. Environment, 4. Health, 5. Agriculture and food, 6. Biotechnologies, 7. Innovative materials, processes and goods, 8. Space and security, 9. Socio-economic and humanistic research. a) development of the national RDI system capacity to create, transfer and use knowledge; b) fostering RDI activities and services in all socio-economic sectors, and increasing their demand for RDI; c) supporting the provision of specialized human resources for RDI activities and services; d) improving the innovation framework and the innovative capacity of business firms, especially SMEs; e) stimulating local and regional technological development and innovation potential; f) the international collaboration. i) Human resources: to increase the number of researchers and to improve their professional performance; ii) Capacities: to develop the research infrastructures; iii) Ideas: to get cutting-edge scientific and technological results ; iv) Partnerships in the priority domains: to focus resources and to set up partnerships between national RDI institutes, universities and economic operators, in order to create innovative technologies, products and services; v) Innovation: to support pre-competitive and competitive research, driven by economic operators in compliance with the state aid rules; vi) Institutional performance: to support the activity of national institutes in their own domain of activity. In the Programme “Partnerships in the priority domains”, for the ICT domain the following research directions were defined: 1. Theoretical informatics and computer science (with 9 research topics); 2. Advanced information systems for e-services (7); 3. Communication technologies, systems and infrastructures (12); 4. Artificial intelligence, robotics and advanced autonomous systems (8); 5. Security and accessibility of information systems (9); 6. Technologies for distributed systems and embedded systems (17); 7. Nanoelectronics, photonics and integrated nanosystems (14). The 2011-2013 National Reform Programme (NRP) identifies the following priorities for the R&D domain [5]: • strengthening the capacity and performance of RDI system in order to meet socio-economic needs: implementing the measures established by the legal acts recently adopted in the RDI field, developing the human resources for research, mid-term evaluation of the National RDI Strategy 2007-3013 and the National RDI Plan 2007-2013, launching the project for the development of the National Strategy and National RDI Plan 2014-2020; • stimulating the RDI investment growth in the private sector: developing enterprises’ RDI own activities, achieving analysis, consultation and impact studies for establishing new mechanisms to support the public-private partnership, developing the National Innovation Strategy; WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 26/86 • developing the European dimension of RDI policies and programs: providing further support the joint efforts to achieve the European Research Area, developing bilateral framework-programmes for the co-operation with developed countries, in high technology fields, supporting strategic projects for integrating of research and its results in the economic environment. As support measures for priority settings at the national level for the next period, in 2010 were launched [9]: 1. the project of interim evaluation of the RDI National Strategy Plan 2007-2013 and of the 2007-2013 RDI National Plan, 2. the project to develop the RDI National Strategy and National Plan 2014-2020. The main objectives of the interim evaluation are the following [18]: ï‚· A realistic report on the accomplishment level of the objectives of the National R D & I Strategy and the appropriateness of the actions undertaken through the National Plan 20072013; ï‚· A range of potential corrective measures required for the remaining interval until 2013; ï‚· Suggestions to increase the effectiveness of the public policies in science and technology to reach the levels of developed European countries; ï‚· Ideas/suggestions for the next strategic framework – i.e. the National R D & I Strategy 20142020 and the National RD&I Plan 2014-2020. In 2011 the development of the National Innovation Strategy was launched, as an important objective included in the 2011-2013 NRP. The main orientations of the document include [18]: ï‚· building an entrepreneurial environment, under the coordination of the new National Council for Development and Innovation, to help enterprises to identify their RDI priorities and to strengthen collaboration with academia; ï‚· providing support for establishing technology clusters for better cooperation between industry and public R&D sector; ï‚· launching foresight studies in key technologies; in 2010-2011 were run such studies in Nanotechnology, Green Energy, Cell Therapy, and Services Science. 2.2.2.2 Sectoral specific priorities There are two types of documents supporting these priorities: - R&D Sectoral Plans for various activity domains; - Sectoral Operational Programmes “Increase of Economic Competitiveness” (SOP-IEC) and “Human Resources Development” (SOP-HRD) according to their priority axes. The R&D Sectoral Plans are financed by the ministries coordinating respective domains: Ministry of Education, Research, Youth and Sports / National Authority for Scientific Research, Ministry of Economy, Trade and Business Environment, Ministry of Agriculture and Rural Development, Ministry of Environment and Forests, Ministry of Communications and Information Society. In case of MCSI, WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 27/86 the priorities of the R&D Sectoral Plan 2008-2010 were the development of communications networks and services, including the digital system and information architectures and solutions for eGovernment. The Sectoral Operational Programme “Increase of Economic Competitiveness” (SOP-IEC) formulates the following specific objectives, relevant for R&D activity and ICT development [10]: ï‚· increase of the R&D capacity, stimulation of the cooperation between RDI institutions and enterprises, and increase of enterprises’ access to RDI; ï‚· establishment of a favourable environment for sustainable enterprises’ development; ï‚· valorization of the ICT potential and its application in the public (administration) and private sector (enterprises, citizens). According to these objectives, the SOP-IEC priority axes define the main priorities (key areas of intervention) as follows: a) for Priority Axis 1 “An innovative and eco-efficient productive system”, managed by the Ministry of Economy, Trade and Business Environment: ï‚· productive and environment friendly investments and preparation for market competition, especially of SMEs; ï‚· access to finance for SMEs; ï‚· sustainable entrepreneurship development; b) for Priority Axis 2 “Research, Technological Development and Innovation for competitiveness”, managed by MECTS / ANCS: ï‚· R&D partnerships between universities/research institutes, and enterprises for generating results directly applicable in economy; ï‚· investments in RDI infrastructure and related administrative capacity; ï‚· RDI support for enterprises; c) for Priority Axis 3 “ICT for private and public sectors”, managed by MCSI: ï‚· supporting the ICT use; ï‚· developing and increasing the efficiency of electronic public services; ï‚· sustaining the e-Economy. The Sectoral Operational Programme “Human Resources Development” (SOP-HRD), managed by the Ministry of Labour, Family and Social Protection, supports the development of human capital and the increase of competitiveness by linking education, lifelong learning and labour market. Relevant for RDI objectives are: - Priority Axis 1 “Education and training in support for growth and development of knowledgebased society” supporting doctoral and post-doctoral programmes in support of research; - Priority Axis 3 “Increasing adaptability of workers and enterprises” supporting the development of entrepreneurial skills and training in new technologies. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 28/86 2.2.2.3 Priorities at the regional level The main documents defining priorities at the regional level are Regional Innovation Strategies (RIS), developed by the Regional Development Agencies in six development regions: West Region (20042008 RIS, followed by the 2009-2013 RIS), Bucharest Ilfov Region (2005-2008 RIS), North-East Region (2005-2008 RIS), North West Region (2005-2008 RIS), South-East Region (2005-2008 RIS), South Muntenia Region (2005-2008 RIS). The Sectoral Operational Programme “Regional Operational Programme” (ROP), managed by the Ministry of Regional Development and Tourism, is the main instrument for regional development policies and covers all eight development regions, without any particular regional focus. Relevant for innovation objectives is the Priority Axis 4 “Strengthening regional and local business environment” aiming to narrow the large disparities between regions in terms of entrepreneurial and industrial development by supporting regional and local business support structures (e.g. industrial, business parks, business incubators etc.), regional and local entrepreneurial initiatives in order to attract investors, job creation and sustainable economic growth, technology transfer to microenterprises, in line with the Regional Innovation Strategies. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 29/86 2.3 Mapping the major actors in RDI This section provides in formation about the main categories of RDI organisations (national R&D institutes, universities, innovation and technology transfer institutions) and RDI infrastructure with emphasis on ICT based components. 2.3.1 2.3.1.1 Overview of main actors Overall taxonomy of RDI organisations According to the Government Ordinance 57/2002, the national research and development system consists of all units and institutions of public law and private law that have the R&D activity in their statutes. Within the national research-development system, the following categories of public entities and institutions are included: a) Public entities: ï‚· national research-development institutes; ï‚· accredited state higher education institutions or their research-development structures, without legal personality, established under the University Charter; ï‚· research-development institutes and centres subordinated to the Romanian Academy or branch academies; ï‚· other research-development institutes and centres organised as public institutions or public law; ï‚· international research-development centres created on the basis of international agreements; ï‚· research-development institutes or centres or stations organised within national firms and national companies; ï‚· other public or public law institutions that have the research-development activity in their statutes or their legally established structures. Within the national research-development system, the following categories of private entities and institutions are also included: b) Private entities: ï‚· accredited private higher education institutions or research-development structures of these, without legal personality, established under the University Charter; ï‚· non-profit research-development institutes or centres or stations recognized as being of public utility ï‚· other research-development institutes, centres or stations organised as non-profit private legal persons; ï‚· other non-profit, non-governmental organisations, that have the research-development activity in their statute, or their legally established structures; WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 30/86 ï‚· companies which have as main activity the research and development; ï‚· companies that have the research-development activity in their statute, or their legally established structures. 2.3.1.2 National institutes for research and development (INCD) INCDs are aimed to strengthen scientific and technological competence in the areas of national interest, determined in accordance with Romania’s development strategy. They participate in strategies development in their specific areas, conduct research and development activities to achieve the objectives contained in the National Strategy, establish basis of scientific and technological competence, of expertise, of human resources improvement, and of scientific and technical documentation. National Institutes can develop in subsidiary trading and production activities, according to their own regulation. There are 44 INCDs; their coordinating bodies and R&D affiliation are presented in Table 2-4. Table 2-4. INCDs coordination and profile Coordinating body R&D domain No National Authority for Scientific Research Physics and chemistry Biology Micro-technology Geology Aerospace Electrical Engineering Textile and Leather Turbo-engines Equipment for Agriculture and Food-Industry Informatics Communications 10 1 1 2 1 1 1 1 1 1 1 Energy Mining Security Chemistry and Petrochemicals Industrial Ecology Testing in Electrical Engineering Mecatronics Nonferrous Metals Radioactive Metals and Sources Welding and Material Testing Oil Equipments Civil Building and Sustainable Development Tourism 1 1 1 1 1 1 1 1 1 1 1 1 Ministry of Labour, Family and Social Protection Labour Protection 1 Ministry of Health Microbiology and Immune technologies Pathology and Biometrical Science Environmental protection 1 1 1 Ministry of Communications and Information Society Ministry of Economy, Trade and Business Environment Ministry of Regional Development ant Tourism Ministry of Environment and WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 31/86 Forests Ministry of Agriculture and Rural Development 2.3.1.3 Agrochemicals and Environmental Protection 7 Universities By their RDI potential and capabilities, universities are classified into three categories [1]: a) focused on education and advanced research; b) focused on education and research (or education and artistic creation); c) focused exclusively on education. In the press release of MECTS from 06.09.2011 on results of the evaluation of universities, performed by the European University Association, in the first group were ranked 12 universities, in the second group 30 universities and in the third group 48 universities (http://www.edu.ro/index.php/pressrel/16071). 2.3.1.4 Network of specialized technology transfer and innovation institutions The State supports the development of the innovation and technology transfer infrastructure at national, regional and local level, by creating [1]: a) centres and specialized services for assistance and scientific and technological information, and for dissemination, transfer and use of research results; b) areas and infrastructure with special facilities for the establishment and operation of innovative economic agents that develop and apply new technologies, infrastructure that might be: technology transfer centres, business incubators, centres for information technology, industry liaison offices, scientific and technological parks; c) branch entities specialized in technology transfer, financed due to the results transferred in economy and in social life. In this respect, the transfer entities are responsible for drawing up tripartite contracts among the technology provider, transfer entity and the entity applying the results. The initiative to set up an entity of the innovation and technology transfer infrastructure can belong to central or local public administration, research units, higher education institutions, chambers of commerce and industry, employers’ associations and professional associations and economic agents located in Romania. The financial support for development of innovation and technology transfer infrastructure at national, regional and local levels is provided from the funds allocated to branch ministries and from the interested local public administration funds. The registry of accredited entities belonging to the network of specialized technology transfer and innovation institutions (RENITT) published by ANCS at 30.03.2011, includes 53 positions (see Table 2-5) (www.ancs.ro). As from December 2010 there were 4 active scientific and technological parks WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 32/86 (PST). The ICT domain is included in the activity profile for three of them, while the fourth one is oriented on micro and nanotechnologies (see Table 2-6). Table 2-5.The structure of RENITT Entity type Total ICT profile technological and business incubators 18 8 technology transfer centres 16 4 technology information centres 19 3 Table 2-6. The activity profile of scientific and technological parks Name Profile Software Park MINATECH-RO TIM SCIENCE PARK TEHNOPOLIS 2.3.2 - information and communication technologies - electronics and microelectronics - environment protection and unconventional energy sources - micro and nanotechnologies - micro engineering and new materials - chemistry, environment protection - physics, blending - computers, control of technological processes - economical sciences, marketing - information technology - bio-technologies - food industry - audio-video technologies Location / set-up date Galati / 24.10.2002 Bucharest / 20.04.2004 Timisoara / 13.10.2004 Iasi / 14.12.2004 R&D infrastructure The expenditure for operation, maintenance, decommissioning and security of installations and special national interest objectives are financed from state budget, with funds allocated for this purpose, in the limit of the budget funds allocated within the year [1]. In the 2007 Report of the Romanian Committee for Research Infrastructures (national roadmap) the following categories of infrastructures were considered [13]: a) national: ï‚· national interest plants, National Network for Education and Research (RoEduNet), highcomplexity laboratory and equipments; ï‚· scientific and documentary data bases for large-size researches developed in Romania or for which it is necessary to purchase access licenses ( ISI data bases, libraries); b) international: WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 33/86 ï‚· infrastructures built or operated under international collaboration on the basis of the convention to which Romania is member: 1. European Space Agency, European Center for Nuclear Research, ITER project in the field of nuclear fusion, Unified Institute for Nuclear Research Dubna; 2. projects from the list of the European Strategy Forum for Research Infrastructures (ESFRI); ï‚· other infrastructures made under national and / or international partnership. A special emphases was put on large research infrastructures which were defined as follows: “installations, equipments or tools, of special vastness and complexity – given by the costs of purchase, operation, maintenance and / or facilitation of the uses’ access - through which there are ensured essential conditions of the scientific community both for the fundamental and for the applicative research “. For the substantiation of the priorities regarding the investments projects in national interest research infrastructures, the following criteria of assessment were used: relevance, potential of use, proportionality of the investment in relation with previous criteria, coordination of the accomplishment, use, future development of the infrastructure, quality of the implementation environment, access to infrastructure, interoperability. The list of priority investment projects proposed in the CRIC Report includes 19 positions for 10 domains: ICT, Energy, Environment, Physics, Health, Agriculture, food safety and security, Biotechnologies, biology and genetics, Materials, processes and innovative products, Space and security, Social and economic and humanistic research. The ICT projects are the following: a) High-speed communications network for education and research; b) National Grid Infrastructure for research. Both projects received a substantial financial support from the SOP-IEC sectoral programme, Priority axis 2. c) Centre for research in advanced optical communications technologies and networks d) Centre for research in information systems security e) Unitary System for the Correlation of the Scientific and Encyclopaedic libraries f) Unitary system for the inventory of research projects and results In the European context, the Agency for Administration of the Romanian Informatics Network for Education and Research (AARNIEC) is a member of the GEANT consortium. Since the second quarter of 2008, the Agency is hosting the Bucharest node (Bucharest GEANT POP) of the European network, which is responsible for connecting the countries of Southeast Europe to GEANT infrastructure. From technical point of view ARNIEC includes one national operation and coordination node, 7 regional nodes and 47 local points of operation and presence [40]. The National Grid Infrastructure - NGI_RO is coordinated by the Romanian Grid Initiative RoGridNGI, which is coordinated by the National Institute for R&D in Informatics and includes currently four INCDs, 6 universities and a research agency. RoGrid-NGI is member of the European Grid Initiative WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 34/86 (http://web.eu-egi.eu/). NGI_RO is part of the European Grid Infrastructure (http://www.egi.eu) with 12 certified grid sites [41]. Romania is member of the High-Performance Computing Infrastructure for South East Europe’s Research Communities HP-SEE, funded by the homonym FP7 project (http://www.hp-see.eu/) where participates with 11 HPC centres, under the coordination of the National Institute for Nuclear Physics and Engineering. The National Supercomputing Centre – NSC is going to be established, as an entity with legal personality, subordinated to the Ministry for Communications and Information Society [28]. The main competences of NSC refers to: analyzing and testing advanced ICT solutions; omania and simulation of complex processes in nuclear energy, socio-economics polices, various scientific domains (e.g. medicine, nanotechnologies, astronomy, biology, chemistry, physics, geography, biotechnologies), economic-financial phenomena; formulating proposals for normative documents to be adopted in its domain of activity; carrying on research and design activities, studies, analysis, consultancy, training courses for interested institutions. The National centre for response to cyber security incidents – CERT-RO was established as public institution with legal personality, in coordination of the Ministry for Communications and Information Society [29]. Within CERT-RO is organised the system for early warning and real time information about cybernetic incidents. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 35/86 2.4 The ICT Sector and the RDI Sector in National economy This section starts with an overview of the ICT domain in Romania stressing on the coordination role of the Ministry for Communications and Information Society and its current stage of development reflected by the ICT profile for Romania and other basic Eurostat and World Bank indicators. Than some structural aspects of the Romanian economy are presented in comparison with EU27 ones using specific indicators, including the regional dimension of the RDI development. A short assessment of the competitive potential of the economy is provided next as it is reflected in the World Bank Doing business reports, in the Global Competitiveness Report 2011-2012 of the World Economic Forum and by the Innovation Capacity Index (ICI). Trade and financial aspects of the R&D are illustrated using Eurostat and World Bank statistical indicators, including the R&D profile for Romania from the Innovation Union Competitiveness Report 2011. Finally, the innovation potential at the enterprise level and other strategic trends at this level are discussed based on statistics provided by the Service Innovation Yearbook 2009-2010. 2.4.1 Overview of the ICT sector Due to its impact on all scientific, economic and social activities, ICT is a priority domain at both macro and micro development levels. In the field of RDI this priority is reflected in the budget share allocated to the ICT related projects, in the National RDI Plan and the SOP-IEC structural funds programme. In the Programme “Partnership in priority domains” which belongs to the National RDI Plan, the Information Technology and Communications domain is included in the list of 9 national research priority domains, with 10% of the programme budget, while all other priority domains include also ICT aware research topics. The Computer science and communications field is included among the 8 priority scientific fields monitored by the Advisory Council for Research, Development and Innovation. As a dynamic, knowledge intensive economic domain, ICT has a significant contribution to such indicators as [21]: ï‚· the share of employees in activities (services and manufacturing) with an intensive contribution to knowledge in total active population: 6.16 (13.03% in EU27); ï‚· the share of exports of medium and high technology products (M & HT) in total exports: 50.14% (47.36% in EU27); ï‚· the share of exports of services with intensive contribution of knowledge, in total exports services: 44.91% (49.43% in EU27); At the Government level, the ICT development is coordinated by the Ministry of Communications and Information Society (MCSI). MCSI is the sole public authority in organising and coordinating at national level the implementation of programs and projects for electronic government and electronic administration. Table 2-7 presents the strategies coordinated by MCSI which are currently in the implementation phase. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 36/86 Table 2-7. ICT strategies in the implementation phase Document Strategy focus The strategy on implementation of the universal service in the field of electronic communications ï€ Providing, up to 31 December 2012, the necessary conditions to cover by at least one provider of electronic communications networks or services the reasonable requests of end users concerning the access and connection to a fixed public telephone networks and access to a fixed public telephone services; ï€ Providing the service of information on subscribers and providing subscribers’ registers; ï€ Providing access to public pay telephones; ï€ Ensuring equal access conditions to telephone services for disabled end-users. The strategy for the development of broadband electronic communications in Romania for the period 2009 – 2015 ï€ to increase the penetration of broadband connections at households level up to 40% by 2010 and up to 80% by 2015; ï€ to increase the access to broadband electronic communications at population level up to 100% by 2015; ï€ to connect and increase the use of broadband services at SMEs’ level; ï€ to increase the penetration of broadband electronic communications for disadvantaged areas from the access point of view; ï€ to increase the supply of on-line services for government and business sector. The objectives are structured in 3 groups oriented on: a) development of the public institutions capacity of to exploit the potential of electronic services (9 objectives); b) delivery of the 20 services monitored at European level (12 for citizens, 8 for businesses), in accordance with European recommendations and national legislative provisions (30 objectives); c) implementation of the e-Romania portal providing a unified, consistent and friendly interface between public administration and citizens, and between the government and business community (42 objective distributed on 12 domains). Source: http://www.mcsi.ro e-Romania – the National strategy and action plan for a coherent and integrated national system supporting eGovernment services for citizens and business environment. Coherence with EU goals / priorities Addressing the compliance with the standards of universal service as set out in Directive 2002/22/EC, aiming at providing access to public telephone network at a fixed point, similar to the average level for EU Member States in terms of availability, quality and accessibility. Addressing the action plans eEurope 2005 and i2010 aiming at creating the Information Society for all, as support for implementing the fundamental objectives of the Lisbon strategy. Addressing the EU recommendations regarding the eGovernment development objectives and indicators. Currently, the access to the online services available in the eGovernment system is provided by the portal National Electronic System, with the following components: online administrative forms (http://formulare.e-guvernare.ro/), online purchasing (www/e-licitatie.ro), virtual pay desk (https://www.ghiseul.ro/). MCSI coordinates the National Institute for R&D in informatics, the National Institute for R&D in Communications, as well as two public institutions with competences in the implementation and operation of informatics systems providing services for the electronic governance: the National WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 37/86 Management Centre for Information Society (CNMSI) and the National Centre “Digital Romania” (CNRD) [30]. The National Electronic System (SEN) and the Electronic Public Procurement System (SEAP) are administrated by CNMSI. More than 12000 public institutions were registered in the SEN system at the end of 2009. For 2012 the system target is to get registered the full list of public institutions and to cover 70% of the total amount of public services. Regarding SEAP, in 2009 the savings in the state budget generated by on line procurements supported by this system were 1.1 billion euro. For 2010 these savings were estimated at 2.5 billion euro considering the increase to 40% of the online procurement procedures from the total amount of procedures carried out in the national system for public procurements. The target for 2012 is to increase this share to 50% [42]. Some ICT development indicators for Romania are presented in Table 2-8. In the European context, the ICT Profile for Romania compared with the EU27 level is presented in Table 2-9. Table 2-8. ICT development indicators EU27 / Romania Indicator Romania Percentage of ICT personnel on total employment ICT expenditure as % of GDP in Information Technology ICT expenditure as % of GDP in communications Promoting e-Commerce for individuals – Last online purchase: in the 12 months Proportion of individuals who have used the Internet for interaction with public authorities 2007 2008 2009 2010 2.72% 2.08% N/A N/A 1.6% 1.6% 1.7% N/A 3.1% 3% 3.3% N/A 16 18 24 27 N/A 35% 35% 44% Source: World Bank and Eurostat Based on this ICT profile, the Europe’s Digital Competitiveness Report formulates the following conclusions [20]: • Romania is still lagging behind in the implementation of the Information Society. However, developments in eGovernment and eCommerce are continuing. • Progress has been made in universal service provision for the inhabitants of isolated communities: in 2009, 215 telecentres were installed. A total of 626 telecentres were installed in remote villages during the period 2005–2009. This has given around 380 000 people access to telephone, internet and fax services and allowed them to make calls to the national emergency number 112. • In April 2009, the Government strategy on broadband electronic communications in Romania for the period 2009–2015 was adopted. The strategy includes measures to ensure access to broadband services, provide relevant content and establish the preconditions necessary for information, education and security. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 38/86 Table 2-9. ICT Profile for Romania Source: Europe’s Digital Competitiveness Report – ICT Country Profiles. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 39/86 • Penetration of the fixed broadband is growing only slowly, and stands at 13 %, which is the second lowest in the EU. In order to resolve this problem, the Romanian government has launched a National Strategy for Broadband Development with the aim of increasing the household penetration rate to 40 % by 2010 and up to 80 % by 2015. • Low connectivity is reflected in low rates of Internet usage. Despite a gradual increase over the past few years, Romania has the lowest rates of regular and frequent internet use in the EU. In addition, a majority of Romanian citizens (61 %) have never used the internet. On the whole, most internet services are used to a significantly lesser degree than on average in the EU, including eCommerce. • Romania has shown some progress on Information Society indicators, such as internet access and broadband availability. Where eGovernment is concerned, the online availability of public services has increased, but usage by business is stalling and take-up by citizens remains limited. A positive development is the use of eProcurement, 1% above the average. • Romania’s eGovernment strategy forms part of a wider Information Society policy with the aim of modernizing Romania’s administration and the economy. The Romanian government has a separate ministry for ICT in administration and has recently reviewed its policy and organisation to increase the speed and effectiveness of eGovernment deployment. 2.4.2 Structural aspects of Romanian economy Structural indicators are an important instrument for assessing the progress made by EU states in the Lisbon Strategy implementation, i.e. also the competitiveness of their economies. Table 2-10 and Error! Reference source not found. present respectively the structural indicators of Romanian economy and major societal challenges as compared with the average values for the EU27 economies (according to Eurostat and World Bank). Romania has improved its performance relative to the key indicators of the Lisbon Agenda up to 2008. The economic crisis that hit Romania in 2009 reversed the trend for some indicators, but this impact might be only temporary. Good economic performance in last few years has been reflected in the macroeconomic and labour market indicators improvement. However, a number of indicators illustrating the structural changes differ in minus from the EU average. Table 2-10. Structural indicators of Romanian and EU27 economies Indicator GDP at market prices (% and Euro per inhabitant) Real GDP growth rate (% change on previous period) General government gross debt, relative to GDP (%) European Union (EU27) Romania 2007 100 2008 100 2009 100 2010 100 2007 17,6 2008 19,4 2009 19,0 2010 18,3 23800 23700 22600 23000 4200 4600 4300 4200 3.2 0.3 -4.3 2.0 6.3 7.3 -6.6 -1.6 59 62.3 74.4 80 12.8 13.4 23.6 31 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 40/86 Public expenditure on education (as % of GDP) Gross capital formation (% of GDP) Inflation rate (%) Employment rate (20-64) (% of total labour force, male and female) Employment growth (%) Real labour productivity growth per hour worked (% change on previous period) Unemployment rate (% of total labour force, male and female ) 4.96 5.07 N/A N/A 4.25 N/A N/A N/A N/A N/A N/A N/A 6.2 6.6 5.9 5.8 N/A N/A N/A N/A 4.9 7.9 5.6 6.1 69.9 70.3 69.0 68.6 64.4 64.4 63.5 63.3 77.8 77.9 75.8 75.1 71 71.6 70.7 70.8 62.2 63 62.5 62.1 57.9 57.3 56.3 55.9 1.8 0.9 -1.8 -0.5 0.4 0 -1.8 -1.8 1.4 -0.6 -1.0 1.7 5.4 7.3 -5.1 -0.1 7.2 7.1 9 9.7 6.4 5.8 6.9 7.3 6.6 6.6 9.1 9.7 7.2 6.7 7.7 7.9 7.9 7.6 9.0 9.6 5.4 4.7 5.8 6.5 2008 2009 Source: Eurostat-Structural Indicators and World Bank Table 2-11. Main societal challenges Indicator European Union (EU27) Rural population (% of total population) Inequality of income distribution (income quintile share ratio) Population at risk of poverty or exclusion (%) Net migration (%) Energy intensity of the economy – Gross inland consumption of energy divided by GDP (kilogram of oil equivalent per 1000 Euro) Romania 2007 2008 2009 2010 N/A N/A N/A N/A 4.9 5 4.9 N/A 7.8 7 6.7 6 24.5 23.6 23.1 N/A 45.9 44.2 43.1 41.4 3.9 2.9 1.7 1.8 0.1 0.1 -0.1 0 N/A 659.09 612.76 576.9 N/A 168.7 167.4 165.2 2007 45.94% 45.76% 45.58% 2010 N/A Source: World Bank, 2011 and Eurostat, 2011 At the regional level, the main development objectives in each region receiving assistance are specified in the regional development strategies, which are included in the National Development Plan (currently at its 3rd edition, for the period 2007-2013) and the National Strategy for Regional Development. For main RDI related indicators their values corresponding to different levels of the NUTS classification of regions are presented in Table 2-12. The shape of each indicator is similar for WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 41/86 all regional units, but regional disparities have increased over the last years, especially between the capital region Bucharest-Ilfov and the rest of the country, both in terms of economic development and RDI resources. Table 2-12. Regional RDI indicators Geo / Time 2007 2008 2009 2010 Total intramural GERD by region [percentage of GDP] Romania 0.52 0.58 0.47 0.47 Macroregion 1 (North-West Centre) 0,27 0,29 Macroregion 2 (Nord-East, South-East) 0,27 0,28 Macroregion 3 (South, Bucharest-Ilfov) 1 1,06 Macroregion 4 (South-West, West) 0,23 0,26 Total R&D personnel and researchers by region [Percentage of total employment – numerator in full time equivalents] Romania 0,20 0,21 0,21 0,21 Macroregion 1 0,10 0,13 0,16 Macroregion 2 0,09 0,1 0,09 Macroregion 3 0,48 0,47 0,45 Macroregion 4 0,12 0,1 0,12 Annual data on HRST [thousands] Romania 2.308 2.416 2.477 2.548 Macroregion 1 538 574 579 589 North-West 274 297 293 311 Centru 264 278 286 278 Macroregion 2 573 598 613 625 Nord-East 317 339 345 359 South-East 257 260 268 267 Macroregion 3 783 801 824 850 South (Muntenia) 284 286 296 310 Bucharest – Ilfov 500 515 528 540 Macroregion 4 412 442 462 483 South-West (Oltenia) 214 232 232 240 Vest 119 210 230 243 Annual data on employment in technology and knowledge-intensive sectors, All NACE activities [millions] Romania N/A 9,37 9,24 9,24 Macroregion 1 N/A 2,15 2,10 2,11 North-West N/A 1,13 1,10 1,15 Centre N/A 1,03 0,99 0,96 Macroregion 2 N/A 2,83 2,81 2,83 North-East N/A 1,67 1,66 1,69 South-East N/A 1,15 1,15 1,14 Macroregion 3 N/A 2,52 2,49 2,47 South (Muntenia) N/A 1,48 1,44 1,42 Bucharest – Ilfov N/A 1,03 1,04 1,05 Macroregion 4 N/A 1,88 1,85 1,82 South-West (Oltenia) N/A 1,04 1,03 1,07 West N/A 0,83 0,81 0,80 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 42/86 Sources: Eurostat – Regional science and technology statistics, Regional labour market statistics [31] Table 2-13 provides a closer view on 3 development regions in Romania in terms of innovation. Table 2-13. Innovation aspects in 3 development regions Geographical location North-West Region South (Muntenia) Region West Region Specific aspects of innovation development - Total expenditure for R&D (as share of the total national expenditure) was about 60 mil Euro in 2008, with 3,5 employees in RDI per 1000 inhabitants. - During the period 2004-2006, the innovative enterprises represented 21,2% of the total number of enterprises in the region. - In order to support the innovation and the technological transfer, a Regional Innovation Strategy for the 2007-2013 was elaborated and a Regional Institute for Education, Research and Technological Transfer was established. - In 2008 the share at the national level was 7,2% in terms of R&D expenditures and 9,6% in terms of R&D employees; 237 patent request applications were registered. - The main identified weaknesses were: the insufficient financing of RDI sector, both from public and private sources, and the limited cooperation between research/university centres and business environment. - The innovation activity was concentrated mainly towards developing new products (50.47%), new technologies (33.96%) or new management and marketing concepts (19.34%), and only a small percent (16.51%) towards really innovative approaches. - The region is ranked second among the eight development regions (following Bucharest-Ilfov Region), with a percentage of 18% of the national expenditure on innovation: machine, equipment or software acquisition (82%), investments in domestic research & development (12%) and external research & development (4%). - Main challenges faced by the RDI organisations were: insufficient public funding, obsolete infrastructures and lack of human resources (around 9% of active population), a low interest of companies towards research results and a low level of RDI expenditure within companies. - In a few cases, expensive and advanced technologies were underused by the enterprises, due to the lack of communication and knowledge. - In the last years RDI organisations have increased their awareness regarding the importance of investing more in marketing and promotion activities. On average, 19,65% of the RDI units’ income is brought from commercial contracts with companies. - The Association for Multidisciplinary Research in West Romania was established, a non-governmental body joining together individual researchers, omaniations and universities from both the public and the private sector, to promote services, training and support for certification. Source : http ://www.rim-europa.eu/index.cfm?q=p.baseline&r=RO WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 43/86 2.4.3 Competitive aspects The World Bank 2012 Doing Business Report ranked Romania 72nd out of 133 countries in 2011 (see Table 2-14) [15]. The worst result was reported for the paying taxes indicator, considering the number of payments per year, the time spent and the total tax rate (% of profit). The positive business policies adopted during 2010 and 2011 are addressing the following indicators: Dealing with construction permits (Romania amended regulations related to construction permitting to reduce fees and expedite the process), Closing a business (substantial amendments to Romania’s bankruptcy laws—introducing, among other things, a procedure for out-of-court workouts—made dealing with insolvency easier) (see [16]), Paying taxes (Romania made paying taxes easier for companies by introducing an electronic payment system and a unified return for social security contributions; it also abolished the annual minimum tax) (see [15]). As compared with 2010, Romania changed in rank with -7, regressing from the 65 rank in 2010 to 72 in 2011. Ranks have also decreased for Starting a business (with -32), Dealing with Construction Permits (with -1), Registrating Property (with -6), Enforcing contracts (with -2), Paying taxes (with -3) or Protecting investors (with 2), Trading across borders (with -23). There was no change in Getting a credit, but Resolving Inconveniences increased in rank with + 12. Table 2-14. Doing Business Report Doing Business Indicators Romania Starting a Business Dealing with Construction Permits Registering Property Getting Credit Protecting investors Paying Taxes Trading across borders Enforcing contracts Closing a business Total rank 2011 63 123 70 8 46 154 72 56 97 2010 31 122 64 8 44 151 49 54 109 72 65 Sources: [15], [16]. According to the Global Competitiveness Report 2011-2012 of the World Economic Forum, Romania is ranked 77th out 144 countries [14]. According to the indicators in Table 2-15, Romania belongs to the first half of ranked counties on Internet bandwidth, broadband internet subscriptions, Internet users, higher education and training, technological readiness. On the opposite, firms’ capacity to absorb technology, collaboration between universities and industry in R&D, availability of latest technologies were poorly evaluated. In the previous two editions the rank was 67 out of 139 countries (2010-2011) and 64 out of 133 countries (2009-2010), which reflects a slow deterioration trend of competitiveness. A significant influence on the general perception about the efficiency of the doing business environment has the level of corruption. According to Corruption perception Index 2010, published by the Transparency International, Romania is ranked 69th out of 178 countries (in corruption increasing order), with a score of 3.7. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 44/86 Table 2-15. Global Competitiveness Index for Romania, 2011 GCR Rank Romania Public institutions 97 Private institutions 97 Infrastructure 95 Macroeconomic environment 87 Higher education and training 55 Quality of education 69 On the job training 98 Goods market efficiency 96 Competition 96 Quality of demand conditions 92 Labour market efficiency 92 Efficient use of talent 85 Financial market development 84 Technological readiness 60 Technological adoption 106 Availability of latest technologies 115 Firm level technology absorption 117 FDI and technology transfer 83 ICT use 48 Internet users 63 Broadband internet subscriptions 42 Internet bandwindth 33 Innovation and sophistication factors subindex 99 Business sophistication 102 Innovation 95 Capacity for innovation 78 Quality of scientific research institutions 91 University industry collaboration in R&D 115 Government procurement of advanced technological products 111 Source : WEF [14] The Innovation Capacity Index (ICI) is a tool for assessing the extent to which nations have succeeded in developing a climate that will nourish the potential for innovation. The values for Romania of the main components of this composite indicator (pillars and subindicators) are presented in Table 2-16 [32]. Being ranked 55th of 131 countries, Romania has an acceptable level for the Innovation capacity, with highest contribution of Human capital and Adoption and use of ICT. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 45/86 Table 2-16. Innovation Capacity Index – Romania Pillars Institutional Environment Human Capital, training and social inclusion General Rank Adoption and Use of ICT Subindicators General Rank Good Governance Policy Assessment 61 56 74 General Rank Education Social inclusion and equity policies 48 43 50 Regulatory and legal Framework R&D and General Rank Doing Business 52 52 General Rank R&D infrastructure Patents and trademarks 53 61 51 General Rank Internet, computers and TV Government ICT usage Quality of infrastructures 49 44 45 85 General ICI rank 55/131 Source: ICI rankings [32] 2.4.4 Trade and financial aspects of R&D Regarding the trading barriers indicators, Romania recorded inferior values to those from EU27 (see Table 2-17). Nevertheless, the share of knowledge intensive services in the total services export is comparable with the European level, while for the high-tech export the gap between National and EU levels has been being recovered in a fast pace. Table 2-17. Indicators of trade Indicator European Union (EU27) Romania 2007 2008 2009 2010 2007 2008 2009 2010 Average of FDI inflows and outflows, relative to GDP (%) 4.4 3.1 2.4 0.9 0.2 0.1 -0.1 0.1 Imports of goods and services, relative to GDP (%) 39.6 41 35.6 39.7 43.2 43.5 36.9 41.2 ICT goods imports (% of total goods) N/A N/A N/A N/A 7.33 7.52 9.34 N/A Exports of goods and services, 40.2 41.3 36.6 40.6 29.3 30.4 30.8 35.8 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 46/86 relative to GDP (%) ICT goods exports (% of total goods exports) N/A N/A N/A N/A 3.14 5.34 8.37 N/A ICT service exports (% of service exports, BoP) N/A N/A N/A N/A 18.02 15.81 18.93 N/A Total high-tech trade as a percentage of total imports N/A N/A N/A N/A 8.4 8.7 10.8 N/A Total high-tech trade as a percentage of total exports 16.1 15.3 16.9 N/A 3.5 5.4 8.2 N/A Knowledge intensive services exports as % of total services exports N/A N/A 48.8 49.43 N/A N/A 51.8 44.91 Source: Eurostat and World Bank As it is shown in Table 2-18, Romania allocated a modest share of GDP to BERD and GERD, as compared with EU level, while for the ICT oriented BERD as share from the total BERD is significantly higher than in case of EU27. Table 2-18. R&D Finance Indicator European Union (EU27) Romania 2007 2008 2009 2010 2007 2008 2009 2010 Business R&D expenditure as a % of GDP 1.18 1.21 1.25 N/A 0.22 0.17 0.19 N/A R&D expenditure (BERD) of in ICT sector as % of total R&D expenditure in all sectors N/A N/A 1.03 0.71 11.57 N/A N/A N/A Non- R&D innovation expenditures as a total number and as a % of total turnover N/A N/A 1.03 0.71 N/A N/A 1.08 1.36 Gross Domestic Expenditure on R&D (GERD) as % of GDP 1.85 1.92 2.01 N/A 0.52 0.58 0.47 0.47 Total GBAORD as a % of total general 1.49 1.47 1.48 N/A 1.02 1.04 0.76 N/A WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 47/86 government expenditure Total GBAORD as a % of GDP by total R&D appropriations 0.68 0.69 0.75 N/A 0.37 0.4 0.31 0.28 Business R&D expenditure as a % of GDP 1.18 1.21 1.25 N/A 0.22 0.17 0.19 N/A Non- R&D innovation expenditures as a % of total turnover N/A N/A 1.03 0.71 N/A N/A 1.08 1.36 Source: Eurostat The R&D intensity (defined as the Gross domestic expenditure on R&D – GERD as % of GDP) in Romania had a moderate positive trend from 0.37 % in 2000 to 0.48 % in 2009, but it still scores one of the lowest values in the European Union (see Figure 2) [34]. The planned increase of the R&D public budget in 2009 did not take place, mainly due to the economic crisis. The current target is to achieve an R&D intensity of 2.0 % in 2020. Figure 2. R&D Intensity projections for Romania, 2000-2020 [34] WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 48/86 The R&D profile of Romania, proposed by the same Innovation Union Competitiveness report 2011, is built on 10 indicators (see Figure 3) [34]. It emphasizes big discrepancies between the national and EU levels for some indicators (e.g. Business enterprise expenditure on R&D, PCT patent applications in societal challenges per billion GDP or PCT patent applications per billion GD) and smaller gap in case of several others (e.g. New doctoral graduates per thousand population aged 25-34, Scientific publications within the 10% most cited publications worldwide as % of total scientific publications of the country or Employment in knowledge intensive activities as % of total employment). Figure 3. R&D Profile for Romania, 2009 [34] WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 49/86 2.4.5 Innovation in enterprises The number of innovative enterprises in industry and services has slightly increased in the last decade, from 17% in 2000-02 (according to Statistical Yearbook of Romania, 2008) to 19% (see Table 2-19). Nevertheless the innovative capacity of Romanian domestic firms is low, as it is reflected by some other indicators in the same table, as the rate of innovative enterprises engaged in intra mural R&D expenditure or receiving public funding. The poor competitive environment, the firms’ reluctance or inability to take on financial and commercial risks arising from R&D and the absence of financial services and instruments to mitigate the risk are among reasons generating the current situation [7]. Table 2-19. Innovation in Romanian enterprises Indicator 2008 Innovation in high-tech sectors – Share of enterprises with innovation activities 36% Innovative enterprises engaged in intra mural R&D expenditure as a % of innovative enterprises 22% Innovative enterprises engaged in extra mural R&D expenditure as a percentage of innovative enterprises 9% Innovative enterprises involved in all types of cooperation as a percentage of innovative enterprises 13.80% Innovative enterprises, process and product oriented, as a percentage of total number of enterprises 32.00% Innovative enterprises that receive public funding as a percentage of innovative enterprises 9.70% SMEs introducing marketing or organisational innovations as % of SMEs 26.80% SMEs introducing product or process innovations as % of SMEs 19.00% Source: Service Innovation Yearbook 2009-2010 Table 2-20 presents values for Romanian enterprise related indicators. Business Demography contains information relating to business births (often referred to as business entries); business deaths (often referred to as business exits) and business survival rates. An enterprise is considered to be active if it has any turnover and/or employment in the period from 1/1 to 31/12 in a given year. Births / deaths do not include input into / exits from the population due to mergers, take-overs, break-ups or restructuring of a set of enterprises. Table 2-20. Other business indicators Indicator 2007 Business Demography (%): Birth rate, Survival rate Death rate 15.62 75.93 8.74 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 2009 2010 50/86 Number of high-tech industries and Knowledge Intensive services at the national level 19590 17528 Sales of new to market and new to firm innovations 14.87 Statistics on high-tech industry and knowledge-intensive services (referred to as simply ‘high-tech statistics’) comprise economic, employment and Science, technology and innovation (STI) data describing manufacturing and services industries broken down by technological intensity. Sales of new to market and new to firm innovations is the sum of total turnover of new or significantly improved products either new to the firm or new to the market for all enterprises / Total turnover for all enterprises. It measures the turnover of new or significantly improved and includes both products which are only new to the firm and products which are also new to the market. For 2010 the EU27 value for this indicator is 13.26. 2.4.6 Other strategic trends To identify these trends for Romania and compare their degree of convergence with the European level, some additional Eurostat indicators have been used addressing: skills and competences relevant for enterprises (see Table 2-21), innovation stimulators (see Table 2-22), open innovation capacity (see Table 2-23), strategic partnership with suppliers, customers , RDI and educational organisations (see Table 2-24), international collaboration (see Table 2-25). Romanian enterprises appear to focus on creativity and other skills and open innovation rather than innovation stimulators, strategic partnerships or international collaboration. Table 2-21. Skills-Competencies that enterprises look for Indicator EU27 Romania Companies targeting team working capacity in support of innovation 56% 57% Negotiation skills 46% 48% Successful communication with other cultures 32% 40% Creativity 48% 56% Indicator Europe27 Romania Knowledge management systems in support of innovation 35% 21% Internal mechanisms for employees to submit innovative ideas 46% 37% Staff rotations and secondments 40% 23% Creation of cross-functional teams on innovation project 35% 16% Source: Service Innovation Yearbook 2009-2010 Table 2-22. Innovation stimulators Source: Service Innovation Yearbook 2009-2010 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 51/86 Table 2-23. Indicators for open innovation Indicator EU27 Romania Creation/participation in internet-based forums in support of innovation 13% 21% Allow free access to test products or services to users 26% 37% Involving potential users in in-house innovative activities 24% 23% Share/exchange of intellectual property in support of innovation 22% 16% Source: Service Innovation Yearbook 2009-2010 Table 2-24. Strategic partnership to support innovation Indicator EU27 Romania Str. Relationship with specific customers 39% 35% Str. Relationship with suppliers 42% 39% Str. Relationship with other companies active in their field 29% 35% Str. Relationship with research institutes 15% 11% Str. Relationship with educational institutes 24% 24% Indicator EU27 Romania Outsourcing tasks to enterprises located in other countries 10% 8% Making investments in enterprises in other countries 6% 3% Other forms of cooperation with local partners in other countries 17% 22% Recruiting employees from other countries 16% 5% Market testing innovative products in other countries 13% 11% Source: Service Innovation Yearbook 2009-2010 Table 2-25. Collaboration with foreign countries Source: Service Innovation Yearbook 2009-2010 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 52/86 2.5 Main components and interactions of innovation systems (barriers and drivers) Complementary to the information and assessment provided in the previous sections, this section is dedicated to some additional aspects and mechanisms that are relevant for their potential to facilitate the RDI development: the regulatory framework, the venture capital, links between enterprises and public research organisations, tax incentives, sources of funding for innovation. 2.5.1 Regulatory framework According to the National Reform Programme 2011-2013, in order to adapt the national RDI system to the European practices, measures have been adopted to increase efficiency and effectiveness of public spending in this sector, with the focus on the institutional financing [5]. An Analysis of efficiency and effectiveness of the public spending on RDI was drafted and the Action plan for increasing the efficiency and effectiveness of public spending on R&D was adopted (in May 2010). The plan provides the strengthening of the national R&D activities and the improvement of the assessment procedures and evaluation criteria used in national R&D competitions (increasing the weight of the scientific quality of the project, of the scientific performances of the director and of the project team is included). In 2011 MECTS and ANCS adopted an important set of updates to the national innovation policies regarding: the evaluation and certification of RDI units, the direct institutional funding, the structure and activity of the National Council for Science and Technology Policy (introduced by GO no. 6/26.01.2011), the evaluation and management of projects and programmes funded through the National RDI Plan (introduced by Government Decision no. 133/16.02.2011), the definition of types of R&D expenses that can be financed from the state budget (introduced by GD no. 134/23.02.2011), the functioning of the Romanian education system (introduced by Education Law no. 1/05.01.2011). 2.5.2 Venture capital and the public sector According to the ANCS Report for 2010, the low level of usage of the venture capital, together with the week research potential at the companies’ level and the incomplete restructuring of the business sector are the main reasons explaining the very limited contribution of the private sector to the RDI funding, representing 0,19% of GDP as compared with 1,25% at the EU27 level [9]. The ERAWATCH Country Report 2010 – Romania emphasizes that the venture capital market is in an early stage, because of the unfavourable tax regime for private equity investments and underdeveloped domestic fund structure for private equity and venture capital [7]. The same report identifies the virtual inexistence of the venture capital among the reasons for the underdeveloped stage of the framework conditions for private investment in R&D. It also mentions the role of the venture capital in encouraging research commercialization and technology transfer, along with strengthening entrepreneurship education in universities and promoting various forms of academic entrepreneurship, science parks, spin-off firms, and science-industry mobility schemes. Although the creation of risk capital funds for innovation was foreseen in several policy documents (e.g. the 200710 National Strategy on RDI, the 2007-10 National Reform Plan), such funds have not been created so far. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 53/86 2.5.3 Links between industry and academia or links between enterprises and public research organisations One of the major objectives of various policies and mechanisms is to stimulate the RDI investments in the private sector based on the collaboration between enterprises and academia in order to support the implementation of the 2007-2013 National RDI Plan.  The Programme “Partnerships in priority domains” funded so far 1347 projects, which were coordinated mostly by R&D institutions of national interest (universities, national institutes) and, to a smaller extent, by firms, NGOs and SMEs. [9]. 10% (135 projects) were dedicated to the priority research domain ICT. The regional distribution of these projects was the following: North-East (90), North-West (153), West (49), South-West (46), South (Muntenia) (36), South-East (47), Centre (24), and Bucharest-Ilfov (902). In most cases the main beneficiaries of project results were the private companies represented in the project consortium.  The Programme “Innovation”, with 263 funded projects (in Module I), coordinated by private enterprises, who contributed with approx. 43.6% of the budget in 2009 [8] and approx. 51% of the budget in 2010 [9].  The Network of specialized technology transfer and innovation institutions (see section 1.5.1.4).  National technological platforms (32 in 2010) in the following areas: alternative energy sources, genomics and plant biotechnologies, water management and quality control, manufacturing technologies, nanoelectronics, nano-medicine, innovative medicine, sustainable chemistry, maritime transport, aeronautics, steel manufacturing [9].  SOP “Increasing economic competitiveness” (Priority Axes 1, 2 and 3), SOP “Regional Development” (Priority Axis 4) and SOP “Human Resources Development” (Priority Axis 1 and Priority Axis 3) – see section 1.7.5.  The Inno-voucher, officially launched in October 2011 as result of collaboration between ANCS and the promotion pillar “TAKE IT UP” of the Europe INNOVA initiative, with a budget of 2 mil. Euro for 2011 [39]. Beneficiaries are Romanian SMEs with technological potential and service providers are consultancy research institutes, universities. Time of approval is max. 30 days and the time frame is 2 months up to 1 year. Intended effects were to make better use of existing innovation potential, stimulate the start of innovation activities, establish a basis for systematic innovation processes (fitness training). Supported activities included the external scientific services to the development of new products /technological processes; implementation and testing of patents – models; design of new products; industrial research aiming to introduce into fabrication; technology transfer, evaluation and technological audit; feasibility studies; support services for innovation; transfer of research results to SMEs; IPR; certification of products, testing, laboratories analyses.  Participation in European public-private partnerships – Joint Technology Initiatives (JTI): ARTEMIS (integrated information systems), ENIAC (nanotechnologies), IMI (innovative medicines), Clean Sky (aeronautics) and Fuel Cells and Hydrogen (energy). New mechanisms to support the public-private partnership in RDI are envisaged to be adopted according to the 2011-2013 National Reform Programme, including the innovation clusters oriented WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 54/86 towards high technology areas and strategic sectors (e.g. ICT, energy, transport - electric car industry, large research investment) [5]. 2.5.4 Tax incentives for RDI Tax incentives in general are poorly represented at present, as only a few remained active after the revision of the Fiscal Code in 2007 and the cancellation of many measures in 2009, as part of the austerity measures adopted by the government to limit the effects of the crisis. Specific measures for RDI in the Fiscal Code include [7]: • VAT exemption for RDI activities performed under the National RDI Plan or financed in international, regional and bilateral partnership. • the 3% tax introduced in 2009 for micro-enterprises and reintroduced in 2011, after being abolished in 2010; • an income tax exemption for IT specialist programmers (software engineers, system designers, system engineers or analysts), introduces in 2001 and reintroduced since 2009 due to its positive economic effects on economic growth and considerable improvement of the IT sector contribution to GDP; • a more favourable regime of local taxes for the establishment and development of an industrial park; • tax facilities to young entrepreneurs (up to 35-years old) setting up their first enterprise, since February 2011; • deductible costs related to the management of information systems and quality management systems; marketing, market study, promotion of existing or new markets; participation in trade fairs and exhibitions; environmental protection and conservation; • increased deductibility of R&D expenditure for units whose R&D activities account for at least 15% of their total yearly expenditure. 2.5.5 Main sources of funding for innovation The sources of funding for the RDI domain carried out by units and institutions within the national research system consist of: a) funds from the state budget; b) funds raised from businesses; c) funds from international programs and/or cooperation; d) funds provided by trust companies or by other private sources; e) other funds established according to law. Funds allocated from state budget are mainly used to finance the objectives of the National RDI Strategy and the National RDI Plan, and for funding the research entities that obtain partial funding in international programs to which the Romanian state contributes with funds, according to agreements with foreign partners. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 55/86 The envisaged funding from the state budget for the National Plan is 15 billions lei, with the distribution presented in Figure 4 [3]. 10 9 Human resources 13,5 13,5 Capacities Ideas Partnerships Innovation 18 Institutional performance 36 Figure 4. Percentage distribution of the National Plan budget per programmes Starting with 2010 Human Resources, Ideas, Partnership and Innovation programmes are managed by the Executive Agency for Higher Education, Research, Development and Innovation Funding (UEFISCDI), replacing the former 4 distinct managerial bodies. 3.359 national projects were running in 2010 on 5 National RDI programmes: 11.7% for Human Resources programme, 11.1% – Capacities. 29.3% - Ideas. 40.1% - Partnership (including 135 ICT projects), 7.8% - Innovation (including 27 ICT projects) [9]. An overview of RDI funding indicators for the period 2008-2010 in provided in Table 2-26. Table 2-26. Gross Domestic Expenditure on Research and Development (GERD) [%] 2008 2009 2010 0.58 0.48 0.47 Public funding 70.1 54.9 54.9 Private enterprises 23.3 34.8 32.3 Fundamental research 49.5 42.3 42.9 Applied research 42.5 48.8 50.0 Experimental development 8.0 8.9 7.1 Research intensity (GERD as % of GDP) Main sources: Distribution: Complementary to the National RDI Plan funding is implemented through the Core R&D Programmes and R&D Sectoral plans. The Core R&D Programmes provide annual or multi-annual funding for the national RDI institutes to support their own medium-to long-term R&D strategies, in addition to the funding gained through competition-based programmes. The Core R&D Programmes are validated by WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 56/86 the line ministries of the respective institutes, and are approved and financed by ANCS. In 2010, the financial support provided by ANCS through the Core R&D Programmes was about 50.9 mil. Euro (1 Euro=4.29 RON) [9]. The R&D Sectoral Plans are financed by the line ministries of specific domains. In 2010, the largest share of the national RDI budget (approx. MEUR 390.5 in 2010) was allocated to ANCS (70.7%), followed by the Romanian Academy (13.8%) and R&D Sectoral Plans, with largest shares to Ministry of Agriculture, Forests and Rural Development (8.8%) and Ministry of Economy, Trade and Business Environment (4.4%) [9]. Another important source of RDI funding is the Sectoral Operational Programmes “Increase of Economic Competitiveness” (SOP-IEC) with an overall budget of 3.01 billons Euro (84.8% representing Community funding and 15.2% - National counterpart covered by National Public funding). Relevant for the RDI ICT are the Priority Axis 1 – “An innovative and eco-efficient productive system”, with 35.9% of the overall budget, the Priority Axis 2 – “Research, Technological Development and Innovation for competitiveness”, with 21.5% of the overall budget, and the Priority Axis 3 – “ICT for private and public sectors”, with 15.6% of the overall budget. In 2010 there were 271 ongoing contracts, on Axis 2: 59% for public institutions and 41% for the private sector. At the regional level, the strategic use of structural funds is characterized by a medium level of financial relevance (to what extent these funds will motivate regional policy makers to adapt their regional strategies, which implicitly reflects the degree of development of the regional innovation system) and a low level of governance capacity: 40% of these funds are spent for capacity building and another 40% for knowledge transfer and support to innovation poles and clusters. The main beneficiaries of public funding are Governmental sector and Higher education, with a significant increase of the share for private enterprises in 2010 as compared with 2009 (see Table 2-27). Table 2-27.Distribution of public funding [%] Sector / Year 2009 2010 Governmental sector 49.4 47.3 Higher education 35.4 31.4 Enterprises 15.2 21.2 Private non-profit sector 0.2 0.1 According to provisions of the OG no. 57/2002, starting from January 1st, 2012 the certified R&D Institutions and units, from the categories of national research-development institutes, researchdevelopment institutes and centres subordinated to the Romanian Academy or branch academies, other research-development institutes and centres organised as public institutions or public law, international research-development centres created on the basis of international agreements, other public or public law institutions that have the research-development activity in their statutes, except those wholly or partly financed from state budget, receive basic institutional funding to support the function of the research and development infrastructure . Also the institutions and units assessed and classified in A+, A and A- categories may benefit, in a competitive regime, from the complementary institutional funding dedicated to performance sustainability. The yearly allocated WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 57/86 funds for the basic and complementary institutional funding should not be less than 25% and higher than 50% from the overall funds allocated to the chapter “Fundamental research and research and development” in the ANCS budget. The Plan to increase the efficiency and effectiveness of R&D public spending, elaborated in 2010 by the Government General Secretariat (SGG), in close collaboration with the Ministry of Finance, Ministry of Education, Research, Youth and Sport – through the National Authority for Scientific Research, Ministry of Agriculture and Rural Development, Romanian Academy, Academy of Agricultural Sciences and Forestry, Ministry of Communications and Information Technology, includes a set of reforms, with the following directions: • Increasing allocations for RDI, both as absolute values and as percentage of GDP, in line with the objectives of Europe 2020 Strategy; • Increasing the importance of the domain at governmental authorities level and ensuring the coherence of the RDI policies and programmes; • Stimulate the RDI activities of the private sector, by correlation of the RDI policies with additional incentives, conceived in consultation with representatives of private sector companies; • Adjustment to the limited financial resources conditions due to the economic crisis; • Establishing and implementing unitary procedures for monitoring and assessment of R&D activities, based on an updated system of classification of R&D expenditures; • Implementing the legislative and good practice recommendations which will be drawn from the interim independent evaluation of the National Plan and the implementation of National Strategy 2007-2013. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 58/86 2.6 Cross cutting issues and challenges This section addresses such aspects as Human Resources and the education system, links between education and RDI, the internationalization of R&D, including the access and use of international knowledge. 2.6.1 Human Resources At the end of 2009, there were 42420 R&D employees, decreasing with 1082 employees as from the previous year. By categories of occupations, the largest share of employees in research and development was represented by researchers, 72.2% of the total, i.e. 30645 people. 85.4% of the RDI staff had higher education, while the number of people with a PhD degree who worked in the RDI domain remained relatively constant from 2008, respectively 14916 people, from which women represented 6508, i.e. 43.6% . By scientific fields, the highest number of RDI employees were found in applied sciences (46.9%) followed by natural and formal sciences (14.1)%. The share of researchers in total occupied population in 2009 was 5.6‰, much lower than EU27’s 7.3‰, and the share of R&D employees in total active population was 6.7%, significantly less than the average level in EU27 (11.7%) [9]. By age groups, in 2009 compared with 2008, there was an increase by 4.7% of researchers aged 34 years and below (29.1% vs. 24.4%). The share of researchers aged between 35 and 54 years remained relatively constant, i.e. 47.3% (see Figure 5). Source: Statistical Yearbook of Romania 2010 Figure 5. Percentage distribution of researcher by age groups At the end of 2010, the value of main indicators regarding the RDI personnel were the following [4]: ï‚· 39065 employees (with 3355 employees less than in 2009), ï‚· 44.3% working in applied sciences (out of whom women represented 37.9%) and 16.1% in natural and formal sciences (with a share of 43.3% for women). ï‚· 85.2% with higher education and 39.6% PhDs. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 59/86 According to Eurostat (see Table 2-28), for the period 2008-2010, Employment in Science and Technology indicators show a percentage comparable with EU27 level of youth aged 20-24 having attained at least upper secondary level education, a steady tendency to recover the gap for the for the tertiary educational attainment, age group 30-34, and for employment in total knowledgeintensive activities at the national level, a successful recovery of this gap in 2009 for tertiary graduates in science and technology per 1000 of population aged 20-29 years, but also significant discrepancies as compared with EU 27 level for the share of persons aged 25-64 having participated in education and training (long-life learning). It should be mentioned that at present, opportunities for lifelong learning are provided mainly through the SOP HRD Priority Axis 1 “Education and training in support of growth and development of knowledge society” and Priority Axis 2 “Linking Lifelong Learning to labour” that are funded by the European Social Fund. Programme effectiveness is limited by a lack of synergies between lifelong learning, educational policies and the existing legal framework in the country, so that the population, especially the adult population, has difficulty in obtaining formal accreditation of skills acquired in the labour market and re-entering the formal education system. Table 2-28. Employment and Science and Technology indicators Indicator European Union (EU27) Romania 2007 2008 2009 2010 2007 2008 2009 2010 Percentage youth aged 20-24 having attained at least upper secondary level education 78.1% 78.4% 78.6% 79% 77.4% 78.3% 78.3% 78.2% Tertiary educational attainment, age group 30-34 30% 31.1% 32.3% 33.6% 13.9% 16% 16.8% 18.1% 18.6 19.2 19.2 N/A 14 16.9 24.9 N/A 9 9.6 9.4 N/A 9.8 13.4 14.9 N/A New doctorate graduates per 1000 population aged 2534 N/A N/A N/A N/A 0.5 0.6 0.9 N/A Life-long learning: share of persons aged 25-64 having participated in education and training 9.4% 9.4% 9.3% 9.1% 1.3% 1.5% 1.5% 1.3% Employment in high-technology manufacturing and 4.4% 3.73% 3.73% N/A 1.92% 1.74% 1.84% N/A Tertiary graduates in science and technology per 1000 of population aged 20-29 years WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 60/86 knowledgeintensive hightechnology services as a percentage of total employment Employment in KnowledgeIntensive high technology services 3.29% 2.58% 2.62% N/A 1.52 1.19 1.26 N/A Employment in total knowledgeintensive activities at the national level 33.13% 36.94% 38.2% N/A 14.4 18.98 19.83 N/A N/A N/A 877 908 N/A N/A Researchers in R&D (per million people) N/A N/A Source: Eurostat- Employment and Science and Technology indicators (World Bank for researchers in R&D) Based on data provided by the National Institute of Statistics, the ERAWATCH Country report for 2010 formulates the following characteristics about the human resources in the R&D sector [7]: • predominance of researchers in engineering and technical sciences (37.7% in 2008), followed by natural and exact sciences, (18.7%), social sciences (15.7%), human sciences (9.5%), medical sciences (11.7%), agricultural sciences (6.7%); • a growing number of R&D employees since 2001, after massive drops in the 1990s and predominance of R&D employees with tertiary education (73.7% in 2007; 85.4% in 2009; 85.2% in 2010); • predominance of researchers in the total number of R&D employees: 72.3% inn 2007 (30.740 researchers out of 42484 R&D employees), 72.2% in 2009; • predominance of R&D personnel in the Higher Education sector, followed by Enterprises, Government and Private non-profit, relatively young age of R&D employees (about 50% of the R&D employees are under 45 years old). The same document concludes that although the supply of science, maths and engineering graduates in Romania has had one of the highest growth rates in EU27 in recent years, the employment of these people in the country is limited and the brain drain is significant. The most important reasons for this situation include: low market demand for researchers, low salaries in the S&T/RDI system, low importance attached to the role of science, research and innovation for economic growth, insufficient/inadequate research infrastructure, insufficient funding of programmes meant to increase the attractiveness of S&T/R&D careers and important additional cuts brought about by the economic crisis . 2.6.2 Links between education and RDI The role of higher education in the national RDI system is twofold: to prepare future researchers and participate in the research activity as a major contributor. In 2010 31.4% from the RDI public budget was allocated to higher education organisations [9]. Following the evaluation process in 2011, WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 61/86 14% of universities in Romania have been accredited to carry out fundamental and applied research, while 33% - only for applied research. According to the Education Law, universities may organise research institutes, research laboratories and research centres. Currently, the main organisational forms of research activity in universities are research centres, covering a large variety of scientific domains. Also, universities may set up research consortia with other research institutes and private companies, dedicated to join collaboration programmes or projects. For research grants allocated to universities, ANCS provides 90% advanced payment at the moment of contract signing, while the remaining 10% is provided by the beneficiary university. To facilitate inter-institutional mobility of the research personnel, the principle “grant follows the researcher” was implemented [11]. Education policies are generally poorly correlated with the private and the public research needs, which is a cause for the high losses of qualified HRST. Also there is a lack of coordination between education, initial training and continuing vocational training policies, and the definition and transparency of vocational qualifications by the National Qualifications Framework [7]. 2.6.3 Internationalization of R&D Developing the European and international dimension of RDI policies and programmes is one of the priorities of the National Reform Programme for 2011-2013. The expected impact will consist in increasing the visibility, the networking and the involvement of Romanian researchers and research teams; increasing the access to information and documentation sources, and to European and international infrastructures; and increasing the direct involvement and access level of Romanian researchers and research teams to the scientific and technical production [5]. The Bilateral cooperation programmes are funded from the Module III of the Capacities Programme of the 2007-2013 National RDI Plan. In 2008-2010 the bilateral cooperation included 162 projects, mainly aimed at building research teams for accessing FP7 funds. In 2010 there were active programmes with 12 countries (most of which EU Member States) [9] and in May 2011 their number increased to 14 active programmes and other 6 in preparation [18]. The participation in FP7, COST, EUREKA programmes is supported through Modules III and IV of the Capacities Programme of the 2007-2013 National RDI Plan. The level of Romania’s participation in FP7 compared to EU27 average is weak. Romania is ranked 18th for number of participations in signed grant agreements (538 participations in 429 signed grant agreements), 27th for applicants success rate (14.5%, EU average is 21.6%) and 27th by EU contribution (over €72.4 million to Romanian participants). Higher education (28.8%), research organisations (27.7%) and private organisations (25.8%) have similar participation shares. By number of the signed grant agreements, the most successful domains are ICT (61 projects and 12.9 mil. Euro EU contribution); Transport (38 projects, 8.7 mil. Euro); Nano (37 projects, 7.5 mil. Euro); Environment (39 projects, 5.7 mil. Euro) [38]. At the end of 2010 Romania was involved in 134 COST projects in all the 9 priority actions, and in 14 EUREKA projects (with 3 new projects receiving funding in 2011). Regarding participation in instruments of cooperation and coordination between national R&D programmes, in 2010 Romania was part in 32 active ERA-NETs, and also in other 16 ERA-NET that WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 62/86 were finished before (inactive). By domain, the participation was highest in: Environment (8 active, 3 inactive), Food, agriculture and fisheries (5 active, 1 inactive), ICT (5 active, 1 inactive), Nanoscience and nanotechnologies (5 active), Energy (4 active), Transport (3 active, 2 inactive). Romania is part of four Joint Technology Initiatives (JTI): ARTEMIS (integrated information systems), ENIAC (nanotechnologies), IMI (innovative medicines) and Clean Sky (aeronautics). Romania is a founding member of Clean Sky, in which it participates through a consortium of two research institutes and two plane manufacturers. Romania is also a founding member of IMI, through the Romanian Association of International Medicines Manufacturers [9]. The level of the access and use international knowledge is illustrated also in Table 2-29. Specific indicators for intellectual assets and patents are illustrated in Table 2-30. Table 2-29. Access and use of international knowledge Indicator European Union (EU27) 2009 2010 International scientific co-publications per million populations 1 Romania 2009 2010 266 44* Public-private copublications per million populations 36.1 36.2 17* Innovative SMEs collaborating with others as % of SMEs 9.5% 11.16% 20* Indicator values relative to the EU27 (EU27=100) Source: Innovation Union Scoreboard 2010, European Innovation Scoreboard 2009 and Eurostat . Table 2-30. Intellectual assets and patents Indicator European Union (EU27) Romania 2007 2008 2009 2010 2007 2008 2009 2010 ICT patent applications to the EPO by priority year at the national level IPC: Total ICT 28848 16514 N/A N/A 1.053 753 N/A N/A PCT patents applications per billion GDP N/A N/A N/A 4 N/A N/A N/A 0,15 PCT patent applications in societal challenges per billion GDP N/A N/A N/A 0.64 N/A N/A N/A 0,01 License and patent N/A N/A N/A 0.21 N/A N/A N/A 0.12 WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 63/86 revenues from abroad as % of GDP Source: Innovation Union Scoreboard 2010, European Innovation Scoreboard 2009 and Eurostat . Trademark applications source: World Bank Statistics. 2.6.4 Future challenges The identification of future challenges is based on the evaluation of the current RDI development status considering the current European context and its major evolution trends. In addition to the wealthy related information provided in the previous sections, Table 2-31 illustrates the gap between Romania and EU27, identified by ANCS using a selection of statistics provided by INS, Eurostat, and Innovation Union Scoreboard 2010 [18]. Table 2-31. Gaps compared with EU27 Indicator RO UE 27 Gap Summary Innovation Index SII 0.236 0.513 <1/2 System Capacity Researchers (share of total employment) 3.64‰ 9.20‰ ~ 1/3 RD Personnel (share of total employment) 5.04‰ 15.50‰ ~ 1/3 Human Res. In S&T (share of total employment) 22.90% 39.25% ~ 1/2 0.48 2.00 ~ 1/4 Public RD expenditure(% GDP) 0.33 0.75 <1/2 Business RD expenditure(% GDP) 0.15 1.25 ~ 1/6 50.14% 47.36% No gap! Knowledge Intensive Services Exports 44.91% 49.43% Almost equal Employment in knowledge intensive activities 6.16% 13,03% ~ 1/2 Financial support GERD (% GDP) Economic Effects Mid and HiTech Product Exports Sources: INS, Eurostat, Innovation Union Scoreboard 2010 Based on this results, the same document formulates the following RDI challenges and supporting solutions: • Policy mix: articulation of policy instruments under the responsibility of other ministries, involvement of these ministries in the selection of R&I overall priorities; - Solution: Administrative coordination through an inter-ministerial body. • Adequacy of public funding: fluctuations of the level of public funding, public investment in research, both in absolute and relative terms, which is dependent on the state of the economy at a given moment; - Solution: a sustained continuity of policy decisions. • Attractiveness of research careers: number of researchers (FTE) per thousand labour force much lower compared to the EU average, level of salaries and research environment, brain drain. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 64/86 - Solutions: increased collaboration with top Romanian researchers in diaspora, maintaining a base of mid-level researchers with already recognised results and with professional challenges ahead, investing in top level research infrastructures to create opportunities. The above challenges are at a great extent compliant with those formulated in the World Bank's Final Report on Romania Research, Development, and Innovation Sector Functional Review, May 2011 (cited in [43]), which address the policy prioritization, links between the science system and the production system, allocation of RDI funds and areas of national competitive advantage, large number of public R&D institutes and wide range of scientific fields, unpredictable budgeting given the fiscal crisis. To cope with these challenges the World Bank’s Functional Review provides four main recommendations for improvement: 1. Strengthen the governance of the RDI system, through a better understanding of the systemic nature of the national RDI set-up, increased visibility of the RDI sector in the government for enhanced integration and functioning. 2. Strengthen the performance of R&D activities within the public sector itself by better aligning incentives, funding, performance monitoring and research priorities to the agreed national priorities. 3. Accelerate the translation of R&D into innovation in the private sector, through strengthening the technology transfer infrastructure in universities, encouraging commercialization of publicly funded research, updating the intellectual property legislation. 4. Increase the level of private sector R&D in a framework of well-defined intellectual property rights and targeted tax and regulatory actions to improve the climate for private sector RDI and attraction of R&D-intensive FDI. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 65/86 3 National PESTEL and SWOT analysis Science and technology issues cannot be considered without taking account of the broader context of social and economic dynamics in terms of barriers and obstacles to technological development. As scientific and technological knowledge evolves in ways shaped by social structures and process, we employ a PESTLE analysis to lay down the Political, Economic, Social, Technological, Legal and Environmental factors that cut across the spectrum of inter-nation characteristics that might bear an impact or orientation upon the foresight processes. PESTLE analysis takes into consideration the macro-environment of the country and discusses the operating environment and the organisation of the country (structure, culture, competencies, resources) in a number of areas. In addition, this section includes a SWOT approach (Strengths, Weaknesses, Opportunities, and Threats) to identify key generic issues upon which the main part of the foresight study will be based. SWOT is perceived as a benchmarking and evaluation exercise of different components of the national innovation system, the productive nexus, existing knowledge infrastructure, competencies which enables a forward-looking approach to proactive public policies. For the better illustration of the components, SWOT is structured on a grouping based on NIS components, i.e. governance and policy system, public policies and actors, the ICT sector and cross-cutting issues. Last, this section encompasses a self-evaluation tool to complement this analysis, elaborated by the European Commission. 3.1 Political, Economic, Social, Technological, Legal and Environmental analysis of the emerging innovation system 3.1.1 Core information PESTLE analysis takes into consideration the macro-environment of the country and discusses the operating environment and the organisation of the country (structure, culture, competencies, resources) in a number of areas. The factors listed here are oriented into explaining success and failure of the external environment. By nature, this section includes general information. Table 3-1. PESTLE core information Political / legal institutional - The degree of coordination between research policy and other policies has increased in the recent years in relation to the implementation of Structural Funds. For instance, R&D policies have been included in the 2007-2013 National Development Plan, coordinated by the Ministry of Economy [7]. - The need to adapt the national RDI system to the European practices led to revising the legislative framework, especially with regard to the institutional financing [5]. - Romania has promoted, in recent years, a series of reforms aimed at enhancing the flexibility of the labour market and increasing participation and sustainable job creation [27]. - In Romania the importance and impact of innovation policies are still low. The country growth strategy is mainly oriented to an exogenous development model based on foreign investment WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 66/86 and consumer spending, with little effort to increase endogenous knowledge, research and innovation capabilities [23]. - The drastic cuts in the public budget for RDI and the declining economic environment have strongly affected the research institutions and firms with RDI activities. Moreover, neither of the two anti-crisis plans of the government includes any reference to innovation-based strategies to restore economic growth [19]. - National innovation policies address key issues for the development of the Romanian RDI system, but their implementation is slow and often negatively influenced by factors that pertain to ‘systemic failures’, such as capability, institutional, network, framework and policy failures. In recent years, some improvements could be noted, especially under the influence of EU management rules and regulations associated with the Structural Funds programmes, which increased transparency and accountability, and improved the evaluation, selection and monitoring processes [24]. - Romania amended its insolvency law to shorten the duration of insolvency proceedings [15]. - Romania has a secured transactions law that treats all security interests in movable property equally with respect to publicity, priority and enforcement, regardless of the form in which the security interest is given (whether a pledge, a financial lease or a loan and trust agreement, for example). Such laws are in line with internationally accepted practices [16]. - Substantial amendments to Romania’s bankruptcy laws—introducing, among other things, a procedure for out-ofcourt workouts—made dealing with insolvency easier [16]. - See Table 2-2 Economic and market issues - The Gross Domestic Product (GDP) in Romania expanded 2.6 percent in the third quarter of 2011 over the same quarter, previous year. Historically, from 2001 until 2011, Romania’s average annual GDP Growth was 4.04 percent reaching an historical high of 9.80 percent in September of 2008 and a record low of -8.70 percent in June of 2009 (Figure 6) [17]. - In 2008, more than 70% of GDP was generated by SMEs. The industry sector with 36% of GDP was rather high and also agriculture was on a high level, compared with the other countries in the region. The total number of SMEs was 440063 [25]. - The inflation rate in Romania was reported at 3.55% in October of 2011. The evolution chart for the last 3 years is presented in Figure 7 [17]. - The strategy of economic growth in Romania, the way it was elaborated after the downfall of the communist regime was based on encouraging the consumers to spend money, on direct foreign investments and on capital flows. Unfortunately, a coherent policy based on innovations was not considered. The specialists believe that this is one of the reasons why Romania was and is strongly affected by the economic crisis. - The consequences of the drastic cut down of the research-innovation finances are both complex and negative at the same time, neutralizing the encouraging signs from the past few years regarding the revival of this sector, the attraction of human capital in this sector, as well WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 67/86 as the partnerships between the public sector and the private sector. - In a recent assessment of the Romanian financial system the IMF identified several risk factors to the stability of the financial outlook, among them: slowing down of capital inflows, including a reduction in foreign banks’ credit volumes to their Romanian subsidiaries and a prolonged recession in the euro-area [26]. - Romania is among the countries with the lowest rate of investments in R&D field, of only 0.58% in 2008. The situation worsened in 2009, when public expenditures returned to the pre-boom level of 0.2% GDP. The weak contribution of the private sector (less than 30% of the total investments in R&D) is explained by the type of competition on the domestic market, led by price not by innovation [27]. - In order to achieve, by 2020, a level of 2% GDP for public and private sector investment in RDI, the estimated trajectory of this indicator is presented in Table 3-2 [18]. - The software industry is among the main industries in Romania, together with electric machinery and equipment, textiles and footwear, light machinery and auto assembly, mining, timber, construction materials, metallurgy, chemicals, food processing and petroleum refining. The evolution of Information and communication technology expenditure is presented in Figure 8 [17]. - Romania made starting a business more difficult by requiring a tax clearance certificate for a new company’s headquarters before company registration [15]. - Romania made paying taxes easier for companies by introducing an electronic payment system and a unified return for social security contributions. It also abolished the annual minimum tax [15]. - Romania established special pre-insolvency procedures in 2010 for distressed companies trying to avoid bankruptcy [16]. - In 2010, Romania introduced tax changes, including a new minimum tax on profit, that made paying taxes more costly for companies [16]. The minimul tax was abolished in 2011 [15]. Social, cultural and demographic - The unemployment rate in Romania was at 7.2 percent in the second quarter of 2011. The evolution of this indicator during the last two years is presented in Figure 9 [17]. - The challenge for the Romanian labour force is quite high. On the one hand private sector is still adjusting; virtually all created unemployment was done by this. On the other hand, the required reduction in public sector wages would necessary entail some lay-offs. This would put an increasing strain on the labour market as well as on the social security costs [27]. - A very sensitive indicator is the inequality of income distribution, measured as the ratio of total income earned by the top 20% of the population (with the highest income) to that earned by the bottom 20% of the population (with the lowest income). Romania has a very high degree of income inequality. Part of it can be explained by the flat tax fiscal policy [27]. - The labour market conditions in Romania are particularly challenging. The negative growth rate of the Romanian population, which has started in the early 1990 has already reduced the WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 68/86 population by 10%. On top of this, there is the migration of the work force which is estimated at between 1 to 2 million of the work force population, most of which are short term. Another factor explaining the current widening imbalances is the low internal labour mobility, particularly between the rural areas, where the surplus of labour largely rests, and the growing urban regions, the engines of growth, where the demand for labour comes from [27]. - The Literacy rate; adult total (% of people ages 15 and above) in Romania was reported at 97.60 in 2008 (Figure 10) [17]. - Very few Romanians are involved in long-life learning programs – only 1.3%, while 40% from the companies that were considered by the study did not invest anything in the training of their own staff. The lack of long- life learning programs makes the adaptation to the structural pressure more difficult, considering the compatibility between the national industry and the world one [26]. - The low investments made by the public sector in fields relevant for the ”smart growth” objective is also revealed by the low rate of public expenditure on education. Despite the relative low expenditure on education, Romania manages to maintain a youth education attainment level very close to the EU average (78.3% compared to 78.5%) [27]. - Romania exempts employers that hire previously unemployed workers from paying the workers’ social insurance contributions for 6 months [16]. Technological - Over the past 5 years, Finance and support and Throughputs have been the main drivers of the improvement in innovation performance, in particular as a result from strong growth in Public R&D expenditures (18.0%), Private credit (17.4%), Broadband access by firms (24.3%), Community trademarks (36.0%) and Community designs [25]. - The progress made in the past years in the field related to Internet usage is significant. The percentage of households who have Internet access at home is only 38% compared to 65%, the EU average, but in constantly grew in the past years, with a fast pace. See Figure 11 for the Internet users’ growth during last years [17]. - The broadband penetration rate (the number of dedicated, high-speed connections per 100 inhabitants), on the other hand, is the second lowest in EU (12.3%) [27]. Environmental - Romania’s dependence on energy imports is only 32% compared to EU average of 53%, but it is forecasted to increase as our natural resources are extensively used [27]. - Greenhouse gas emissions are much lower than at the beginning of transition, but the main reason for that was the de-industrialization process which occurred since the early nineties [27]. See Table 3-3. - Romania has a higher share of renewable energy sources (RES) in total consumption, and the trend is upward (11.86% in 2007 compared to 9.95% in 2003). But the relatively high potential of renewable energy in theory can not be paralleled in practice due to technological limitations, economic efficiency, dispersed location of resources and environment restrictions. A recent WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 69/86 governmental report commits to a 24% RES target for 2020, but it specifies that in order to reach that target Romania needs to exploit two thirds of its theoretical RES potential. - Similar to most of the New Member States, Romania scores badly in terms of energy intensity of the economy, indicator that monitors the decoupling of energy use from GDP growth and shows the extent to which energy is being used more efficiently in the creation of wealth. However, the trend is downward, Romania having made significant improvements in the last 56 years [27]. - Romania has adopted series of policies and legislative measures on climate change, oriented towards the two major approaches in the field, namely reducing greenhouse gas emissions and adapting to climate change effects, pursuant to the provisions of the United Nations Framework Convention on Climate Change, the Kyoto Protocol for this Convention and the European Union policy. According to such approaches, the National Strategy on Climate Change 2011-2020 shall be developed, associated to the approaches in the legislative package “Energy – Climate Change”, with the „Roadmap for a low-carbon economy by 2050”, as well as the European policy in the field of adaptation („White Paper on Adapting to Climate Change”) [5]. 3.1.2 Additional information Table 3-2. Investment indicators - estimated trajectory INDICATOR (%GDP) 2009 2011 2013 2015 2020 Investment in RDI (public sources) 0.31 0.33 0.60 0.80 1.00 Investment in RDI (private sources) 0.17 0.15 0.25 0.50 1.00 Investment in RDI (public and private sources) 0.48 0.48 0.85 1.30 2.00 Source: World Bank Table 3-3. Comparative levels for environment indicators Romania Greenhouse gas emissions index, (base year = 100) Share of energy from renewable sources in total energy consumption Energy intensity of the economy (Kilogram of oil equivalent per 1.000 EUR GDP) Electricity generated from renewable sources (% of total) Volume of freight transport relative to GDP Volume of passenger transport relative to GDP EU average The highest value 54.7 90.7 11.86 7.75 185.3 (Cyprus) 30.93 (Sweden) 46.6 (Latvia) 2 (UK) 655.59 169.39 1016.29 (Bulgaria) 103.13 (Ireland) 33.0 21.0 148.5 104.0 81.8 93.9 78.1 (Austria) 152.5 (Slovenia) 137.4 (Lithuania) 3.6 (Hungary) 61.8 (Estonia) 66.9 (Slovakia) WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis The lowest value 70/86 Car share of inland passenger transport Urban population exposure to air pollution by ozone Urban population exposure to air pollution by particulate matter Municipal waste generated 75.3 83.4 3784.0 3909.0 43.1 28.1 382 524 Resource productivity 0.17 1.28 90.7 (Lithuania) 9006.0 (Greece) 59 (Bulgaria) 802 (Denmark) 2.58 (UK) 61.8 (Hungary) 938.0 (UK) 12.6 (Ireland) 306 (Czech Republic) 0.14 (Bulgaria) Source: Romania and the Europe 2020 Strategy. The 6th GEA Report on Romania and the Lisbon Agenda Figure 6. Romania – GDP annual growth rate Figure 7. Romania – inflation rate WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 71/86 Figure 8. Romania – ICT technology expenditure [US dollar] Figure 9. Romania – unemployment rate Figure 10. Romania – literacy rate WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 72/86 Figure 11. Romania – Internet users WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 73/86 3.2 Strengths, weaknesses, threats and opportunities of/for the emerging innovation system Table 3-4. SWOT Table Clustering Strengths Weaknesses ICT RDI Multi-annual National RDI Strategy and Slow pace of national RDI policies governance and National RDI Plan for 2007-2013, implementation due to lack of policy system established by a national Foresight capabilities. exercise. ICT has a prominent place in the Low visibility and importance of (ICT) National RDI Strategy and Plan. RDI policies in the government policy. Representatives of important ICT The drastic 2009 GERD cut, with long companies and prominent local ICT term consequences. academics and professionals are members in the advisory councils of the National Authority for Scientific Research (ANCS) and involved in research and innovation management. Broad range of R&D objectives financed through the SOPs with R&D focus (SOP IEC, ROP, HRD); specific measures for support of research infrastructures. Low level of BERD, strong dependence of BERD on public funding, weak science-industry links and inter-sectoral mobility. Competition based access to funding Low absorption of R&D funds available through project calls mechanism. through the SOPs. Periodic evaluation of RDI Regional disparities in the distribution organizations, national programmes of R&D resources. and projects based on international criteria; implementation of new evaluation procedures and methodologies. Low level of coherence of regional innovation strategies (RIS), weak integration between the RISs and the national RDI strategy and between the six RISs, poor implementation capacity of the RIS by Regional Development Agencies (RDAs). ICT RDI priority ICT is seen as one of the areas where setting, public Romania can excel in the National RDI policies and Strategy for 2007-2013; long tradition actors in the RDI field. The trend to provide general support for enterprises to increase their competitiveness by purchasing of new technologies rather than experimenting with new models of innovation policies WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 74/86 ICT is part of specific priorities and of Limited capacity to sectoral programmes that the National cooperation between RDI Strategy and National Plan are stakeholders. focused on. stimulate regional Elaboration of the National Innovation Limited strategic focus of regional RDI Strategy. policies suited to the specific strengths and weaknesses of the region. Extended network of RDI organisations of national importance; recent evaluation of RDI potential for state and private universities. Measures aimed to increase attractiveness of research careers were taken in isolation, targeting specifically the young researcher, without supporting consistently the long term research careers. National Network of Innovation and Lead market initiatives are incipient in Technology Transfer institutions Romania. (technological and business incubators, technology transfer centres, technology information centres). Recently launched calls in the 20072013 National Plan for R&D and Innovation and Sectoral R&D plans. ICT RDI sector Adequate, clear and possible features operationalise objectives. to Slow operationalisation of innovation. Rich innovation policy mix including: Reduced set of tax incentives after direct instruments (Grants) and indirect 2004, various modifications of the instruments (Income tax exemption for Fiscal Code since 2007. software creators, VAT exemption for ICT RDI activities, Tax incentives for the establishment and development of an industrial park). R&D and Adoption and use of ICT are two out of five component pillar of the composite indicator “Innovation Capacity Index”. Less emphasis is placed on the support to innovative start-ups, technology transfer and innovation strategies and infrastructure. Strong competitions for funds between The risk capital market is at an early public R&D performers. stage, no Risk Capital Fund for innovative SMEs and start-ups. Emphasis on the support to public Low attractiveness of R&D careers, high research organisations in the losses of qualified researchers and budgetary allocations. postgraduates through brain drain Several Programmes supporting Shortage of qualified personnel and research for PhD and young post- poor technology transfer and doctoral researchers. innovation infrastructure. Poor innovation capacity and culture of industry; lack of tradition of publicWP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 75/86 private collaboration science fields. in advanced ICT RDI cross 2007-2013 National Strategy for RDI Limited capacity to prepare quality cutting issues includes environment, energy, health, projects to attract funding and space and security among the ten implement European projects. priorities for Romanian RDI as response to societal needs and changes. A sound infrastructure to sustain Low proportion of innovative knowledge circulation is in place. enterprises, poor innovation absorption Several programmes extend support capacity in industry. for joint R&D projects between university, public research units and the business sector. The NRP 2011-2013 highlights the existence of 19 innovative clusters (competitiveness poles) in Romania, with six new ones expected to be created in aviation, renewable energies, naval constructions, textile industry, automotive industry, and wood and furniture industry. A predominant top-down approach and excessive reliance on government funds, with only low shares of funding attracted from regional and EU sources and weak bottom-up initiatives. There is a (research oriented) National Minimal observed effects and little Strategy on Climate Change (Romanian visibility in the public debate of RDI Government, 2005) policies where the attention is usually placed on the many weaknesses of the system that overshadow its strengths. High technology exports highest value over the past 21 years [http://www.indexmundi.com/facts/ro mania/high-technology-exports]; high technology exports as % of manufactured exports increased from 3.48 in 2007 to 10.95 in 2010 [http://www.indexmundi.com/facts/ro mania/high-technology-exports] Low level of coherency between R&D policies/ strategies and other national policies/ strategies (education, employment, IT, energy, environment, regional development). Low competitiveness levels; slow depreciation trends for majority of Competitiveness and Innovation scores and ranks for Romania from 2008 to 2011. No evidence of any debate linking innovation to societal concerns or challenges was reported for Romania. Opportunities Threats ICT RTD Reorganization of the Advisory College Not yet a formal position of the RDI governance and for Research, Development and authorities regarding the knowledge WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 76/86 policy system Innovation, establishment of two new and innovation-based advisory bodies (for scientific research economic recovery. and for development and innovation) to increase coordination and support in the management and assessment of several National RDI Programmes. strategy for New Education Law and RTD Low regional focus and coordination; Regulations improving the perspective innovation policies and implementing of qualified research workers. instruments have been designed mainly with a national focus and target R&D performers across the country. ICT RTD priority Adoption of the 2011-2013 National Low level of private funding in research setting, public Reform Programme, establishing projects. policies and priorities for the reformation efforts in actors key domains of the national economy including RDI. Specific strategies in the field of Industry structure dominated by communications and information traditional manufacturing and society, adopted by MCSI. processing industries, low share of knowledge-intensive technologies, slow pace of industry restructuring. SME support grants awarded on a competitive basis and funded from national resources and SOP-IEC Priority Axis 1 'Innovative and eco-friendly production systems'. Poor innovative capacity of industry, low innovation culture, technological renewal mostly based on acquisition of foreign technologies. New innovation policy support Lack of innovation incentives in R&D measures issued by ANCS and the institutions and firms, including risk Ministry of SMEs, Trade and Business capital funds; cancellation of some tax Environment. incentives. The creation of risk capital funds for The capital market is very dependent innovation is foreseen in several policy on the perception of the country by documents. foreign investors. ICT RTD sector New tax incentives and allowances Low interest and spending for local ICT features issued for economic agents and tax RDI of foreign big ICT companies. payers, proportionally to RDI expenditures and RDI investments. A new risk capital fund for innovative R&D enterprises became operational on 1 January 2010. ICT RTD cross Revival of the National Council for The modest ranking of Romania in the cutting issues Science and Technology Policy. “Innovation Union Scoreboard” (IUS) Report for 2010. Education Law no. 1/ 5 January 2011 Loss of security, privacy and trust in the guarantees researchers' inter- Internet, which leads to the loss of its WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 77/86 institutional mobility and portability of commercial potential. grants, applying the principle “the grant follows the researcher”. New focus on innovative clusters in strategic industries (e.g. ICT, energy, transport - the electrical vehicle, large R&D investments) in the forthcoming National Innovation Strategy. New measures for stimulating private RDI investment, the RDI potential and competitiveness of domestic firms announced in the 2011-2013 NRP. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 78/86 3.3 Self assessment tool: Features of well performing national and regional research and innovation The tool is based on a set of 25 Innovation specific statistical indicators. The results are presented in Table 3-5. Table 3-5. Self assessment tool Indicators for the Innovation Union 2010 Data Source Value Comments ENABLERS – Human Resources New doctorate graduates (ISCED 6) per 1000 population aged 25-34 Percentage population aged completed tertiary education 30-34 Eurostat having Percentage youth aged 20-24 having attained at least upper secondary level education 0,9 (2009) N/A Eurostat 18.1 % (2010) increasing by 4.2 from 2007 33.6 for EU Eurostat 78.2% (2010) increasing by 0.80% from 2007 79% for EU ENABLERS-Open, excellent and attractive research systems International scientific co-publications per million population Thomson/ Scopus Scientific publications among the top 10% most cited publications worldwide as % of total scientific publications of the country Thomson/ Scopus Non-EU doctorat students32 per million population Eurostat/ OECD 118 (2010) The EU average was 266 0.04 (2010) The EU average was 0.11 2.01 (2010) EU average is 19.45 0.47% (2010) 2% for EU ENABLERS –Finance and Support Public R&D expenditures as % of GDP Eurostat Venture capital (early stage) as % of GDP 0% (2009) slighty decreasing from 0.002 in 2008 Eurostat 0,0049% (2009) slighty increasing from 0.003 in 2007 Business R&D expenditures as % of GDP Eurostat 0.19 (2007) EU average is 1.25 Non-R&D innovation expenditures as % of turnover Eurostat 1,36% (2010) EU average is 0.71% SMEs innovating in-house as % of SMEs Eurostat n.a. Innovative SMEs collaborating with others as % of SMEs Eurostat Eurostat Venture capital (expansion and replacement) as % of GDP FIRM ACTIVITIES-Firm Investments FIRM ACTIVITIES-Linkages & entrepreneurship Public-private population co-publications per million 2.27% (2010) EU 30.31% (2010) EU 11.16% Thomson/ Scopus 63 (2010) 36.1 (EU-2010) Eurostat 0.15 (2010) EU average is 4 OECD 0.01 (2010) EU average is 0.64 FIRM ACTIVITIES-Intellectual Assets PCT patents applications per billion GDP (in PPS€) PCT patent applications in societal challenges per WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 79/86 billion GDP (in PPS€) (climate change mitigation; health) Community trademarks per billion GDP (in PPS€) Community designs per billion GDP (in PPS€) OHIM/ Eurostat OHIM/ Eurostat 12.4 (2008) EU average is 124.5 (2009) 2 (2008) 121.2 (EU average for 2009) 18.03% (2010) EU average is 34.18% 25.8% (2010) EU average is 39.9% OUTPUTS –Innovators SMEs (more than 10 employees) introducing product or process innovations as % of SMEs Eurostat SMEs (more than 10 employees) introducing marketing or organisational innovations as % of SMEs Eurostat High-growth enterprises (with more than 10 employees) as % of all enterprises3 Eurostat n.a. n.a. OUTPUTS –Economic effects Employment in Knowledge-Intensive Activities (manufacturing and services) as % of total employment Eurostat Medium and High-tech manufacturing exports as % total product exports UN/ Eurostat Knowledge-Intensive Services exports as % total service exports UN/ Eurostat Sales of new to market and new to firm innovations as % of turnover Eurostat Licence and patent revenues from abroad as % of GDP Eurostat 1.84% (2009) EU average is 3.73% 8.2% for 2009 EU average is 16.9% 44.91% (2010) EU average is 49.43 % 14.87 (2010) EU average is 16.9% 0.12% (2010) EU average is 0.21% WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 80/86 4 Conclusions The report provided an overview on the RDI development process – recent evolution, current status and short term trends - in the framework provided by the 2007-2013 National RDI Strategy and its implementation instrument - the 2007-2013 National RDI Plan. In order to face multiple challenges raised by running this process in the European context, significant reformation efforts have been deployed according to the overall orientations formulated for the RDI domain in the 2011-2013 National Reform Programme. The recent results of these efforts may by summarized as follows [18]: • Strengthen the capacity & performance of the RD&I system: legal improvements in ST Policy making at the government level (National Council for Science and Technology Policy to build an overall national vision/strategy) and ministerial level (activity of the advisory bodies CCCDI, CNCS, CNDI), increasing the quality of the publicly funded research (promoting the international project evaluation, promoting the excellence via the National Plan Programmes Human Resources and Ideas); • Fostering innovation: financial support for innovative companies, elaboration process of the National Strategy for Innovation, IPR regulation (patent owner) to comply with the requests of the main investors, relaxing the rules of public procurement for new local firms, innovation broker as a new entry in the occupation classification; • Promote the European dimension in RDI policy, programmes, and projects: participation in FP7 and preparation for the next Common Strategic Framework on Research and Innovation, participation to pan-European infrastructures (ESFRI projects) and JTIs (ENIAC, Clean Sky, FCH, IMI, ARTEMIS), support EU Strategy for the Danube Delta – Black Sea Region, participation in bilateral programs (active: 14, in preparation: 6, all FORSEE countries included), intention to take part in Joint Programming (Health, Agriculture, Climate change, Water management, Urban Europe, Cultural heritage). • Policy assessment: mid-term evaluation of the 2007-2013 National RDI Plan (lessons learned, a realistic report on the accomplishment level of the National RDI Strategy objectives, potential corrective measures up to 2013, suggestions to increase the effectiveness of the public policies in science and technology to reach the levels of developed European countries, ideas/suggestions for the next strategic framework 2014-2020). The overall map of activities and results in the RDI development is placed in general environment depicted by the PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis. The final component of these report contributions is the SWOT analysis, which is structured on several priority RDI clusters regarding the governance and policy system, the priority setting, public policies and actors, the sector features and cross cutting issues. According to the FORSEE project methodology, the report results, with the emphasis on SWOT, will be used to produce the regional common methodology and the national Foresight designs. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 81/86 5 Abbreviations, References 5.1 Abbreviations Abbreviation Full name AARNIEC Agency for Administration of the Romanian Informatics Network for Education and Research ANCS National Authority for Scientific Research BERD Business Enterprise Research and Development CCCDI Advisory College for Research, Development and Innovation CERT-RO National Centre for Response to Cyber Security Incidents CNCS National Council for Scientific Research CNDI National Council for Development and Innovation CNECSDTI National Council for Ethics in Scientific Research, Technological Development and Innovation CNMSI National Management Centre for Information Society CNPST National Council for Science and Technology Policy CNRD National Centre “Digital Romania” CNS National Supercomputing Centre CRIC Romanian Committee for Research Infrastructures CIT Technological Information Centre COST European Cooperation in Science and Technology CTT Technology Transfer Centre EC European Commission EGI European Grid Infrastructure ERA European Research Area ESFRI European Strategy Forum for Research Infrastructures EU European Union EU27 European Union including 27 Member States FDI Foreign Direct Investments FP European Framework Programme for Research and Technological Development GBAORD Government Budget Appropriations or Outlays on R&D GDP Gross Domestic Product GERD Gross Domestic Expenditure on Research and Development WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 82/86 HG Government Decision HP-SEE High-Performance Computing Infrastructure in South East Europe INCD National Institute for Research and Development ITA Technological and Business Incubator JTI Joint Technology Initiative MECTS Ministry of Education, Research, Youth and Sport MCSI Ministry of Communications and Information Technology NGI_RO National Grid Infrastructure OECD Organisation for Economic Co-operation and Development OUG Government Emergency Ordinance PN II National Plan for Research, Development and Innovation PNR National Reform Programme PST Scientific and Technological Park RDA Regional Development Agency ReNITT National Network of Innovation and Technology Transfer institutions RIS Regional Innovation Strategy RoEduNet Romanian Informatics Network for Education and Research RoGrid-NGI Romanian Grid Initiative SEAP Electronic Public Procurement System SEE South East Europe SEN National Electronic System SGS Government General Secretariat SME Small and Medium Sized Enterprise SOP-HRD Sectoral Operational Programmes “Human Resources Development” SOP-IEC Sectoral Operational Programmes “Increase of Economic Competitiveness” SPO-ROD Sectoral Operational Programmes “Regional Operational Programme” UEFISCDI Executive Agency for Higher Education, Research, Development and Innovation Funding WEF World Economic Forum WP Work Package WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 83/86 5.2 References [1] Romanian Government: Government Ordinance no. 57/2002 on the scientific research and technological development, published in the Official Gazette no. 0643/30.08.2002, amended and approved by the Law no. 324/2003, with subsequent amendments (updated version according to subsequent amendments - 10.06.2011). [2] Governmental Decision no. 217 / 28.02.2007 on the approval of the National Strategy for research, development and innovation, for the period 2007-2013, published in the Official Gazette no. 214/ 29.03.2007. [3] Governmental Decision no. 475 /2007 on the approval of the National Plan for research, development and innovation, for the period 2007-2013, with subsequent amendments, published in the Official Gazette no. 0371/ 31.05.2007 (updated version according to subsequent amendments - 28.02.2011). [4] National Institute of Statistics: Press release on research and development activity in 2010. Date 27.09.2011. (http://www.insse.ro/cms/files%5Cstatistici%5Ccomunicate%5Ccom_anuale%5CActivcerc_dezv %5Cactiv_cdr10.pdf). [5] Government of Romania: National Reform Programme (2011 – 2013). Bucharest, April 2011. (http://ec.europa.eu/europe2020/pdf/nrp/nrp_romania_en.pdf). [6] European Commission, Directorate-General for Enterprise and Industry: Innovation Patterns and Innovation Policy in European Regions - Trends, Challenges and Perspectives. The Regional Innovation Monitor - Project No. 0932, 2010 Annual Report, 20.04.2011. (http://www.rim-europa.eu/index.cfm?q=p.file&r=abb048a92532d05d6eae2dffbfc8c776). [7] Ranga, Marina: ERAWATCH COUNTRY REPORTS 2010: Romania. ERAWATCH Network, November 2010. (http://erawatch.jrc.ec.europa.eu/erawatch/export/sites/default/galleries/generic_files/file_01 07.pdf). [8] National Authority for Scientific Research: Government Policies in the Field of Research – Development and Innovation in Romania. Report 2009 (in Romanian). (http://www.ancs.ro//img/files_up/1286979160Raport%20ANCS%202009%20Lucru2.pdf). [9] National Authority for Scientific Research: Government Policies in the Field of Research – Development and Innovation in Romania. Report 2010 (in Romanian). (http://www.ancs.ro/uploads/raport-ancs-2010-final.pdf). [10] Ministry of Economy and Finance: Sectoral Operational Programme “Increase of Economic Competitiveness”, Revised Official Proposal, May 2007. (http://www.minind.ro/fonduri_structurale/SOP_IEC_Revised_Official_Proposal_May07.pdf). [11] Parliament of Romania: National Education Law no. 1/ 2011, published in the Official Gazette no. 18 / 10.01.2011. [12] Chioncel, Mariana: ERAWATCH Country Report 2009 Romania: Analysis of policy mixes to foster R&D investment and to contribute to the ERA. JRC Scientific and Technical Reports, EUR 23976EN/1 - 2009, ISBN 978-92-79-13307-7. (http://erawatch.jrc.ec.europa.eu/erawatch/export/sites/default/galleries/migration_files/PMC R-Romania_Full.pdf) WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 84/86 [13] Romanian Committee for Research Infrastructures: 2007 Report. ANCS, January 2008. (http://www.ancs.ro/uploads/imported/1242293614cric_eng.pdf). [14] World Economic Forum: Global Competitiveness Report 2011-2012. Geneva, Switzerland 2011. (http://www3.weforum.org/docs/WEF_GCR_Report_2011-12.pdf ). [15] World Bank Group: Doing Business 2012 - Doing Business in a More Transparent World. Washington, 2011. (http://www.doingbusiness.org/reports/global-reports/doing-business2012). [16] World Bank and International Finance Corporation: Doing Business Report 2011 – Making a Difference for Entrepreneurs. Washington, 4.11.2010. (http://www.doingbusiness.org/reports/global-reports/doing-business-2011). [17] World Bank Indicators - Romania - Outcomes. Trading Economics, Last accessed: 20.10.2011. (http://www.tradingeconomics.com/romania/literacy-rate-adult-total-percent-of-people-ages15-and-above-wb-data.html). [18] ANCS: Romania–Getting Ready for the Innovation Union. ANCS Workshop, Bucharest, 27.05.2011. [19] Innovation Europe: Innovation EU Vol2-1 _ Innovation Romania, 05 July 2010. (http://www.innovationeu.org/news/innovation-eu-vol2-1/0241-innovation-romania.html). [20] Europe's Digital Competitiveness Report - ICT Country Profiles. Commission staff working document, volume 2, Brussels, 17.5.2010 (http://ec.europa.eu/information_society/digitalagenda/documents/countryprofiles.pdf). [21] PRO INNO EUROPE, Maastricht Economic and social Research and training centre on Innovation and Technology (UNU-MERIT) with the contribution of DG JRC G3 of the European Commission: Innovation Union Scoreboard 2010 about Romania. (http://www.proinno-europe.eu/innometrics/page/romania). [22] European Commission, Directorate General for Enterprise and Industry: INNO-Policy TrendChart – Innovation Policy Progress Report ROMANIA, 2009. (http://www.proinnoeurope.eu/trendchart/extranet/upload//countryreports/Country_Report_Romania_2009.pdf). [23] Innovation Europe: Innovation Romania 2009. (http://www.innovationeu.org/articles/collaborative-europe/0028-innovation-romania.html). [24] Pro Inno Europe: INNO Policy Trendchart - European Innovation Progress Report 2008. (www.proinno-europe.eu/admin/uploaded_documents/EIRP2008_Final_merged.pdf). [25] SEE Innovation and Finance Agencies Network: Synthesis of Country Studies. February 2011. (http://www.seeifa.eu/_uploaded/_editor/file/Synthesis%20Report%20of%20Country%20Studies_final.pdf). [26] Lazar, R.E.: Considerations on European Policy of Research, Development, Innovation. Case of Romania. Centre for European Studies, UAIC Iasi, Working Papers, III(2), 2011. (http://cse.uaic.ro/WorkingPapers/articles/CESWP2011_III2_LAZ.pdf). [27] Voinea, L., B. Pauna, L. Lungu, V. Cojanu, A. Busuioc: Romania and the Europe 2020 Strategy. The 6th GEA Report on Romania and the Lisbon Agenda, Group of Applied Economics, April 2010. (http://www.gea.org.ro/documente/en/lisabona/2010/Romania2020.pdf). [28] Romanian Government: Government Decision no. 139/2010 on the establishment, organisation and functioning of the National Supercomputing Centre, published in the Official Gazette no. 140/03.03.2010. WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 85/86 [29] Romanian Government: Government Decision no. 494/2011 on the establishment of the National centre for response to cyber security incidents - CERT-RO, published in the Official Gazette no. 388/ 02.06.2011. [30] Romanian Government: Government Decision no. 1439/2011 on the establishment of the National management centre for Information Society and the National Centre "Digital Romania", published in the Official Gazette no. 857/ 09.12.2009. [31] Eurostat – Regional science and technology statistics, Regional labour market statistics (http://epp.eurostat.ec.europa.eu/portal/page/portal/region_cities/regional_statistics/data/da tabase). [32] Augusto, Lopez-Claros and Mata N. Yasmina: Policies and institutions underpinning country innovations: Results from the ICI. The Innovation for Development Report 2010-2011. [33] Ranga, Marina: Mini Country Report/Romania-Thematic Report 2011 under Specific Contract for the Integration of INNO Policy TrendChart with ERAWATCH (2011-2012). PRO INNO Europe, December 2011. [34] European Commission, Directorate-General for Research and Innovation: Innovation Union Competitiveness report 2011 edition - Innovation Union. European Union 2011, ISBN 978-92-7914541-4. [35] Paul Cunningham, P., Aikaterini Karakasidou: PROINNO Europe Innovation and societal challenges-Thematic Report No1 (2010). Manchester Institute of Innovation Research University of Manchester, January 2010. [36] OECD: The measurement of Scientific and Technological Activities. Proposed Guidelines For Collecting and Interpreting Innovation Data, 2005. [37] European Commission. Innovation Input and Output. October, 2011. (http://www.proinnoeurope.eu/page/innovation-input-and-output-0). [38] Smits, Robert-Jan: Towards a Common Strategic Framework for EU Research and Innovation Funding. ANCS Workshop, Bucharest, 27.05.2011. [39] Vladut, G.: Presentation at the Romanian Innovation Forum. Romanian Association for Technology Transfer (ARoTT), Bucharest, 6.10.2011. [40] Agency for Administration of the Romanian Informatics Network for Education and Research (AARNIEC). (http://www.roedu.net/ro/page/oragnizare-tehnica). [41] European Grid Infrastructure - accounting portal. (https://accounting.egi.eu/gridsite/accounting/CESGA/country_view.html). [42] MCSI – coordinated institutions. (http://www.mcsi.ro/Institutii-coordonate/CNMSI#). [43] PRO INNO EUROPE. Mini Country Report/Romania under Specific Contract for the Integration of INNO Policy Trend Chart with ERAWATCH (2011-2012). December 2011. (http://www.proinnoeurope.eu/sites/default/files/page/11/12/Romania_TC_final.pdf). WP3 – Activity3.3: National ICT Innovation systems studies & Regional Synthesis 86/86