Transcript Innovation.bg Presentation

The InnovationBG index –
measuring the level of
innovation activity in Bulgaria
Why index?
 The necessity – to present in the most realistic way the state of
the national innovation system in Bulgaria, its potential and its
dynamics of development.
 The idea – to track the links in the dynamics between the
resources/investments and the results of the innovation process
and to make evaluation and recommendations for optimization.
 The target group – the policymakers and the decisionmakers in
the private and the public sector
The Bulgarian economy – high
growth...
12
10
8
Latvia
6
Lituenia
Estonia
4
Hungary
Bulgaria
Slovakia
eu25
%
2
0
-2
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
-4
-6
-8
-10
Indicator: GDP – real annual growth
Source: EUROSTAT
...but insufficient
100
eu25
90
Greece
Slovenia
Portugal
80
70
Hungary
60
Slovakia
50
Estonia
Lithuania
Latvia
40
30
Bulgaria
20
10
0
1995
1996
1997
1998
1999
2000
2001
Indicator: GDP per capita (EU 25 = 100)
Explanation: the higher of the income per capita the
more demanding are the consumers at local level – it
stimulates the innovative behavior of the entrepreneurs
2002
2003
2004
2005
Source: EUROSTAT
Sectors in growth
40
30
20
%
10
0
-10
1997
1998
1999
2000
2001
2002
2003
-20
-30
-40
Processing industry
Communications
Finances, credits and insurances
GVA by basis prices
Indicator: Real annual growth of the Gross Value Added (%)
Source: EUROSTAT
Sub-sectors of growth
127,8
Hightechnological
91,2
122,5
Middletechnological
89,3
121,5
Middle-lowtechnological
90,6
131,9
Lowtechnological
0,0
127,8
20,0
40,0
employment
60,0
80,0
100,0
120,0
140,0
production
Indicator: Index of the employment and production in the processing
industry against the level of technological intensity (year 2000 = 100)
Source: NSI, OESD
Structure of growth
4,9
Employmen
t
5,2
17,8
17,3
production
39,5
60,4
16,5
21,2
Hightechnological
Middle - hightechnological
Midle-lowtechnological
Indicator: Structure of the employment and production
of the processing industry by level of the technological
intensity
Lowtechnological
Source: NSI, OESD
Quest of higher growth…
 Now: there are comparative advantages in the low-technological
sub-sectors » low growth potential
 necessity: faster orientation to the sub-sectors of hightechnological growth
 solution: flexible and dynamic national innovation system
 Focus on: production of medicines (drugs), agro-chemicals,
accumulators etc.
Ranking of Bulgaria according to the international
Index of the national innovation capacity - year 2003
Finland
Ireland
Estonia
Highest rank of
EU country # 2
Latvia
Slovenia
Czech Republic
Lithuania
Greece
# 53 in the
list
Portugal
Poland
Slovakia
Hungary
Bulgaria
Romania
0
5
10
15
20
25
30
35
40
Source: Michael Porter and Scot Stern
Position and trend of the innovation capacity of
Bulgaria in the context of Europe year 2003.
stagnation
advancing
Lagging
Catching up
Average change of the trend (%)
Source: European Innovation Scoreboard
The index
 Innovation product – it is widely accepted that the patents are
the most correct single indicator of the potential and function of
the national innovation system.
The enterprises improve their competitiveness by utilizing
patented products and processes in their production and their
supply to the market or by increase of the income of sells or
licensing other companies on the technology market. The scientific
publications are important product for the long-term run of the
national innovation system. They illustrate the state of the science
in the country and compared with the patents shows the
utilization of the innovation potential of the country.
Innovation product: EPO patents
9
8
7
6
5
4
3
2
1
0
1996
1997
1998
1999
Bulgaria
Indicator: Number of submitted applications for
patents/mln population at the European Patent Office
2000
2001
2002
EU 10
Source: EUROSTAT
Innovation product: USPTO patents
(Bulgaria)
2
1,8
1,6
1,4
1,2
1
0,8
0,6
0,4
0,2
0
1995
1996
1997
1998
Indicator: Number of submitted applications for
patents/mln population at the US Patent Office
1999
2000
2001
EU 10
2002
2003
Source: Eurostat
Scientific product
Switzerland
Israel
Finland
OESD
Ireland
Czesh
Poland
Russia
The world
Bulgaria
0
200
400
600
Indicator: Number of articles in the engineering sciences per mln.
population (1999 – 2001)
800
1 000
1 200
Source: NSF
Technology market
Patents
10
8
Technical documentation
Licenses
6
4
2
0
Publishing rights
Know-how
Trade marks
local
Indicator: share of companies, purchased technologies
on the local and the international market in year 2004
Models
international
Source: ARC Fund, Vitosha Research
Scientific product - usefulness
Switzerland
Sweden
Finland
Ireland
Hungary
Slovenia
Czesh Rep.
Poland
Bulgaria
Slovakia
0,00
0,20
0,40
Indicator: index of the quotations in the field of the
engineering sciences (2001)
0,60
0,80
1,00
1,20
Source: NSF
Innovation product
 About two times lower innovation product that the product of the
new member states and the countries form the Central Europe
 The scientific product has better position
 Scientific specialization: Chemistry and Mathematics
 In focus: specialization in applied Biology and Medicine
The index
 Human capital – the quality of the human capital, its
improvement and growth and its adaptability to the new trends is
a precondition for creation of local as well as for adoption of
foreign innovations. There are 4 key forms for creation of the
human capital: education system, entrepreneurship, science and
management. The lack of the any of these forms leads to barriers
before the development of important segments of the national
innovation system and may lead to deviations.
Human capital: employment for
innovation
13,9
14
12
10
8,6
8,9
8,4
8
6,2
6,3
6
5,5
5,2
5,1
5,2
1999
2000
2001
2002
4
2
0
1995
1996
1997
1998
Bulgaria
Indicator: Personnel in the RTD per 1 000 people of the
labour force (1995 - 2002)
2001 2001
EU-10 EU-15
new
Source: NSI, Eurostat
Human capital: education
35
30
25
20
15
10
Indicator: Comparative share of the population at age
between 25 and 64 years with university degree (2002)
RO
SK
PL
CZ
HU
SI
EU-10new
LV
CY
BG
EE
PT
IT
EL
LU
EU-15
FR
DE
NL
ES
IE
UK
SE
DK
FI
0
BE
5
Source: Eurostat
Human Capital: degree of education
6
5.8 5.8
5.5
5
4
3.6
3.4 3.4
2.9
3
2.6
2.3
2.0
2
1.9 1.9
2.0
1.8
1.6 1.5
0.9
1.3 1.2
1.2 1.0
0.9
1
0.7
LV
CY
BG
LT
HU
CZ
SK
EE
EU-10new
Indicator: Ph Ds per 1 000 people at age of 25 to 29 years (2001)
PL
SI
IT
IE
ES
BE
DK
NL
FR
EU-15
AT
PT
UK
DE
SE
0
FI
0.3 0.2
Source: NSI, Eurostat
Human Capital: education for
innovation
11,9
12
10,4
10
9,1
8,3
8
6,8
7,2
6,8
5,7
6
4
2
0
1998
1999
2000
2001
2001
EU-10
new
Indicator: number of people, accomplished university degree
in scientific and technological areas of education per 1000
people at age of 20 to 29 years
2001
EU-15
2002
2003
Source: NSI, Eurostat
Human Capital
 Good average level of education (problematic quality)
 Low demand of RTD in the business circles » decrease of the
employment and lower interest in the highest levels of education
 Structural problem of the RTD employment: predominant public
sector
 In focus: high interest in technical scientific areas of the
university education
The index
 Investments – the innovations need number of types of
investment, but there are tree major types: physical, human and
innovation (applied scientific). In the typical industrial sectors the
capability of development, adapting and adopting innovation
depends on the amount of the capital in its three forms, e.g.
starting from the presence of certain level of technical, human
and managerial quality of the companies. The different types of
investments are in co-relation with the stage of the development
of the company and the economy, as well as, with the horizon of
planning.
Investments for innovations
%
1.99
2.0
1.8
1.6
1.4
1.2
0.84
1.0
0.8
0.62
0.52
0.6
0.51
0.57
0.57
0.52
0.47
0.49
0.4
0.2
0.0
1995
1996
1997
1998
1999
Indicator: share of the iRTD expenditures of the GDP
2000
2001
2002
2001
EU-10
new
2002
EU-15
Source: NSI, Eurostat
Investments: disbalance
Bulgaria (2002)
Foreign
countrie
s
5%
Sector
governm
ent
70%
EU
Foreig
n
countr
ies
9%
Entrepris
e sector
25%
Public
sector
35%
Indicator: structure of the R&D expenditures by sources of financing
(2001, 2002)
Secto
r
entrep
rises
56%
Sources: NSI, Eurostat
Investments: disbalance
EU (EU-15)
Bulgaria
University
education
10%
NGO
sector
0%
Entreprise
sector
19%
Public
sector
71%
Indicator: structure of the R&D expenditures by institutional
sectors
University
education
21%
Public
sector
13%
NGO
sector
1%
Entrepris
e sector
65%
Sources: NSI, Eurostat
Investments or expenditures
%
100
4,6
5,9
6,4
4,1
95,4
94,1
93,6
95,9
80
60
40
20
0
1995
2000
Current expenditures
Indicator: structure of the expenditures for R&D by
economical elements (1995, 2000, 2001 и 2002)
2001
2002
Tangible assets expenditures
Sources: NSI, Eurostat
Investments
 Small complexity of the accumulated capital in the country
 One of the lowest business expenditures for R&D in Europe
 Serious structural problem: domination of the public sector and
lack of attractiveness for the business
 In focus: utilization of the EU programs for research and
development in order to stimulate the potential of the business in
R&D activities
The index
 Entrepreneurship – the creative entrepreneurship is the driving
force of the national innovation system – the constant aim at
satisfaction of the consumers’ demand with new, better ideas. The
innovative enterprises are the ‘black box’ of the innovation
system, in which the innovations happen. Their activities depend
on all the factors, listed in the index and their study gives better
explanation for the structure and the characteristics of the
national innovation system
Innovative enterprises
Bulgaria
E
EU
22
33
иноватори
Innovators
Innovators
Innovators
иноватори
noninnovat
неиноватори
ors
noninnovators
неиноватори
78
67
Indicator: share of the companies, which have supplied to the
market new products in the recent 3 years
Sources: ARCFund, Vitosha
Research, Eurostat
е-Bulgaria
(Index for development of the information
society)
Access to ICT
10
4
4.68
5.5
е-government
5.55
е-learning
4.27
3.89
4.11
4.56
4.42
3.041
3.54
4.47
2.29
2.59
2.59
4.11
е-business
2001
2002
2003
2004
е-society
Source: ARCFund, 2004
Share of the companies in Bulgaria, who innovate of
those who:
0
10
20
30
40
Използуват
Useкомпютри
computers
Doлзnot
use
computers
Н е из по
ув а
т ко
м пю т р и
23.4
47
20.2
С р е д на в ъ з р а с т на ко м пю т р ит е
The average age of the computers in the
58.4
из по лз ув а ни в пр
о из в о д сisт в
ото
е по
2 г.
production
less
than
2д
years
В с ички
ф ир м и
All companies
Sorces: ARCFund, Vitosha Reserch, 2004
60
43
И з по лз ув а тUse
инт
е р не т
internet
Н е из по Do
лз ув
а тuse
инт
е р не т
not
internet
50
32.9
70
Horizon of the planning at the Bulgarian
companies
1%
10%
2%
31%
5%
14%
37%
To 6 months
To 1 year
To 3 years
To 5 years
To 10 years
> 10 years
Don’t
know
Source: ARCFund, Vitosha Research
The index
 Co-relation – it is a measure for the presence and the quality of
the links between the participants in the national innovation
system, and between it and the surrounding environment. In fact
each of the listed elements of the index is useless without a link
with the others – the presence of highly qualified human
resources does not lead to higher innovation product of the
country, if there is a lack of links with the entrepreneurial skills
and/or the investment capital. The infrastructure is the hardware
of the innovation system, and the culture of communication and
the gained knowledge are the software. Only the proper
combination between the two elements results in proper return of
investment. For the countries in catch up position in the
innovation development the quality of the links with the world
innovation society has a great importance.
Entrepreneurship, innovative
enterprises and co-relation
 Low innovative enterprises
 Low but improving level of co-relation
 Weak e-link: education
 In focus: growth of the international certification, but compared
to low basis
The index
 Innovation environment and policy – the innovative
enterprises work and develop new products in particular
institutional and economic environment and the national policies
influence on their decisions for the type and the volume of the
investments. It is hard to evaluate the effect of the national
policies on the innovation system. The imperative of the law and
the effective application of the market stimuli characterize very
important feature in the entrepreneurial behavior – the aim at
creative innovations. In this respect of greatest importance are
the policies for innovations, the competitors and the intellectual
properties rights, the presence of open economy. The main
problems of the innovative companies in general are the
financing, level of the development of the financial intermediation,
and the presence of variety of instruments for financing of
innovative projects.
Environment and policies
 The ground has been laid
 It is a time for more active measures to be taken
 Orientation towards knowledge-based innovation policy
 In focus: improvement of the links between the institutions,
responsible for the innovation policy