Transcript PAICpresentation - Τράπεζα της Ελλάδος

Enhancing South East Europe
Competitiveness through innovation and
human capital development
Bank of Greece-University of Oxford (SEESOX) Conference
Athens, February 11 2011
Agenda
• Overall business climate issues in South East Europe
• Supporting SMEs in South East Europe
• Boosting Innovation and skills in South East Europe
Business Climate as measured by the Investment Reform
Index 2010
IRI – SEE average score
0
1
2
3
4
5
Investment Policy and
Promotion
•
•
Human capital
development
Trade policy and
facilitation
•
•
•
•
•
•
Access to Finance
Regulatory reform and
parliamentary processes
Main improvement points – Investment Policy and
Promotion
Land title registration and cadastre is slow
Permits for foreign workers are cumbersome in BiH
and FYROM
FDI Incentives on sub-national level need more clarity
FDI-related capital transfer remain in AL, SRB and BiH
One-stop shop for investors (IPAs to approve permits)
Weak aftercare in BiH, BG, MNE and RO
Legal frameworks for PPPs to be developed
Need to improve IP rights enforcement
Tax policy analysis
Score
Note: (1) Dimensions on SME policy, which was derived from the SME policy index and on infrastructure were not scored
Business Climate as measured by the Investment Reform
Index 2010
IRI – SEE average score
0
1
Investment Policy and
Promotion
2
3
4
5
•
Human capital
development
•
Trade policy and
facilitation
•
•
•
Access to Finance
Regulatory reform and
parliamentary processes
Main improvement points – Human Capital
Development
Basic skills in education system are much lower than
OECD average (BG, MNE, RO, SRB) or comparable to it
(HR)
Misalignment between profile of skills supplied by the
education system and the needs of the private sector
Little or no government strategy on Continuous
Education and Training
High tax wedges on labour, except in AL, BG
Temporary labour contracts restricted to specific
purposes (seasonal work, replacements)
Tax policy analysis
Score
Note: (1) Dimensions on SME policy, which was derived from the SME policy index and on infrastructure were not scored
Business Climate as measured by the Investment Reform
Index 2010
IRI – SEE average score
0
1
Investment Policy and
Promotion
Human capital
development
Trade policy and
facilitation
2
3
4
5
Main improvement points – Trade Policy and
Facilitation
• Implement agreement on agricultural tariffs
(manufactured product tariffs already minimal)
• Monitor and decrease non-tariff barriers to trade:
sanitary and phytosanitary, technical
• Continue integration in multilateral trade system
(WTO members: AL, HR, FYROM, MD: negotiating:
BiH, SRB, MNE)
Access to Finance
Regulatory reform and
parliamentary processes
•
•
Tax policy analysis
•
Score
•
Main improvement points – Access to Finance
Develop competition in banking sector
Improve credit information and credit guarantee
schemes
Develop stock markets and venture capital/business
angel networks
Develop export guarantee schemes
Note: (1) Dimensions on SME policy, which was derived from the SME policy index and on infrastructure were not scored
Business Climate as measured by the Investment Reform
Index 2010
IRI – SEE average score
0
1
2
3
4
5
Main improvement points – Regulatory Reform
• Regulatory Impact Assessment to be developed
• Improve co-ordination of parliaments and
governments
• Formalize dialogue with civil society
Investment Policy and
Promotion
Human capital
development
Trade policy and
facilitation
Access to Finance
Main improvement points – Tax Policy Analysis
• Improve simulation instruments such as corporate
income tax microsimulation, tax wedge model,
marginal effective tax rate model
• Assess cost of compliance for SMEs
Regulatory reform and
parliamentary processes
Tax policy analysis
Score
Note: (1) Dimensions on SME policy, which was derived from the SME policy index and on infrastructure were not scored
After the crisis, support to SMEs and innovation is seen as key
to sustainable growth
Agenda
• Overall business climate issues in South East Europe
• Supporting SMEs in South East Europe
• Boosting Innovation and skills in South East Europe
Overall Conclusions of the 2009 SME Policy Index
• Good overall progress on the implementation of the European
Charter for SMEs
• However: uneven progress across the 10 dimensions of the Charter:
• Good progress for policy areas that directly affect operational environment of
SMEs (e.g. company registration, regulatory reform, access to finance).
• More modest progress in introducing targeted policies for specific types of
SMEs (e.g. start-ups, innovative SMEs). Even in the cases where such policies
have been formulated, the amount of available resources is very low, compared
to EU Member States.
• The contribution of human capital to the region’s competitiveness remains a
particular constraint to the Western Balkan economies.
• Implementation is still in an early phase in some economies.
Detailed recommendations of the 2009 SME Policy index (1/2)
•
Entrepreneurship and training
 Entrepreneurship to be considered as key competence by education community
 Co-operation needed among education policy makers to achieve life-long entrepreneurship training
•
Cheaper and faster start-up
 Compliance phase: strive to balance the need for inspection and compliance with burden on SMEs
 Need to establish an electronic registry for all companies to create a centre of collection and
dissemination of company data
•
Better legislation and regulation
 Apply the “silence is consent” principle widely
 Regulatory impact assessment should be further implemented, and redundant legislation eliminated
 BiH and Kosovo under UNSCR 1244/99 still lack a coherent legislation with an effective institutional
framework and strategy
•
Availability of skills
 Develop training needs analysis to identify skills gaps
 Promote the training market
•
Improving online access for SMEs
 Continue developing e-government, notably by developing an e-signature
Detailed recommendations of the 2009 SME Policy index (2/2)
•
Getting more out of the single market
 Export promotion: provide export insurance and export credit
 Competitiveness support: targeted measures, monitor impact
•
Taxation and access to finance
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•
Increase domestic bank lending by allowing banks to shift to cash-flow lending (without collateral)
Lower barriers and costs for transferring remittances
Strengthen property rights and contract law
Improve credit information and bankruptcy laws
Improve credit guarantee schemes
Promote leasing, venture capital funds and private equity
Strengthening the technological capacities of SMEs
 Extend support to initiatives establishing inter-firm clusters and networks (+voucher schemes,
incubators,…
 Improve international cooperation through Enterprise Europe network
 Coordinate policymaking across Ministries in areas such as IP rights, incubators, clusters and skills
development
Agenda
• Overall business climate issues in South East Europe
• Supporting SMEs in South East Europe
• Boosting Innovation and skills in South East Europe
South East Europe performance on innovation is very low
Innovation performance of SEE countries
10
Western Europe average
9
8
7
6
5
4
3
2
1
0
Source: Data from Knowledge Economy indicators, World Bank, OECD analysis
CEE average
Upper middle income countries
Lower middle income countries
What is an innovation system?
Knowledge
Users
Social and Human Capital
Universities
S&T Training and
Education
Absorptive Capacity
‘Follower’ firms; Intermediate
and End Consumers and
Professional Users
Market for Goods and
Services
Knowledge
Creators
Research Capacity
Universities; Govt
Laboratories
Basic Scientific
Research
Public Sector
Source: Nauwelaers, 2003
Technology and Innovation
Performance
‘Creative’ Firms
Applied RTD and Product
/Process Development
Private Sector
Public research input and output ranges from insignificant to
catch-up with developed countries
700
S&E journal articles per million population
Western Europe avg.
600
500
High Income avg.
Greece
400
300
Croatia
200
Bulgaria
Turkey
Serbia
100
BiH
0
0
FYROM
Upper middle Income avg.
Romania
Alb.
0.5
1
1.5
Total expenditure for R&D, as % of GDP
Source: Data from Science and Technology in the Western Balkans (inco-net), Knowledge
Economy indicators, World Bank, OECD analysis
2
2.5
Private R&D input and output are mostly below the
average for upper middle income countries
20
High technology exports (% of all exports)
Western Europe avg.
18
High Income avg.
16
14
12
10
Greece
Upper
Middle
Income Croatia
8
Bulgaria
6
Rep. Moldova
4
BiH
2
Albania
Romania
Serbia
FYROM
0
2
2.5
3
3.5
4
Private sector spending on R&D (1-7)
Source: Data from Global Competitiveness Review, Knowledge Economy indicators, World
Bank, OECD analysis
4.5
5
What can policy do to enhance the Innovation system?
The Impact of RTD on Competitiveness and Employment (IRCE), EC, 2003
Regional Competitiveness Initiative
Overview
Objectives:
 Support medium and long-term competitiveness of the Western
Balkans.
 Provide capacity building support to Western Balkan public
administrations via pilot projects.
with the financial
support of the
European Union
Focus Areas:
1. Human capital development – To address major skills gaps.
2. Innovation – To strengthen innovative capacities and support
absorption of technology by the private sector.
Duration : 2010-2013
Financial support : European Union (DG Enlargement)
Implementing agency: OECD
18
Pilot projects
with the financial
support of the
European Union
Mechanisms to finance business services in support of innovation
(voucher schemes)
Greater time and staff commitment
The establishment of a Competence Research Centre (CRC)
Assist the government in conceiving the overall policy framework
for innovation
Co-operation within the ‘triple helix’ of research-businessgovernment communities
19
with the financial
support of the
European Union
Thank you for your attention
Alan Paic
Principal Administrator
OECD Investment Compact for South East Europe
Private Sector Development Division
Organisation for Economic Co-operation and Development (OECD)
[email protected]
www.investmentcompact.org