,

Development of the National Strategic Framework Programme for RTDI (ESPEK): 2014 - 2018

G.S.R.T. - Directorate for Planning and Programming, October 2011

Aims of the presentation

Analysis of past R&D expenditures and government budget appropriations for R&D

Future projections on the required level of gross expenditures (GERD) to reach the 1,5% intensity target by 2020 as well as required public funding per priority sector
Action plan for the development of ESPEK

First part: Analysis of gross expenditures for R&D & projections until 2020

Gross expenditures for R&D by source of origin: 1986-2005 (absolute figures)

GERD (Gross domestic expenditure on research and development ) is total intramural expenditure on R&D performed on the national territory during a given period. It includes R&D performed within a country and funded from abroad but excludes payments made abroad for R&D.

Source/: ( ) 4

Gross expenditures for R&D by source of origin: 1986-2005 (percentages)

State

Enterprises

Abroad

Other

GERD by type of performer: 1986-2005 (absolute figures)

Higher Education Institutes

Public Research Institutes

*
*

Enterprises

* Refers to ALL state-owned research institutes

GERD by type of performer: 1986-2005 (percentages)

Higher Education Institutes

Enterprises

Public Research Institutes

GERD by type of expenditure: 1986-2005 (percentages)

Personnel fees

Operating expenditures

Capital expenditures

Projections of GERD by source of funding until 2020 (absolute figures)

Key targets: 1,5% R&D intensity by 2020 (i.e. GERD to reach 3.2 bn Euro) BERD to reach 40% of GERD by 2020

Note: in order to reach the target of 3,2 bn Euro for GERD in 2020 there is a need of additional 3,38 bn Euro (GAP) throughout the period 2012-2020

Source: GSRT for data until 2005. Data from 2007-2011 based on GSRT or publicly available data as well as estimations for non available data. Data for 2012 are estimations based on trend analysis. GDP Growth data for 2008 and 2009 based on Mid-term Programme (revised in June 2011); figures for 2010 to 2012 from draft State Budget for 2012. Estimates for 2013 to 2020.
2008 2,0% 2009 -2,0% 2010 -4,5% 2011 -5,5% 2012 -2,5% 2013 -1,0% 2014 0,0% 2015 1,0% 2016 1,5% 2017 1,8% 2018 2,0% 2019 2,0% 2020 9 2,5%

Definitions and key assumptions (for previous slide)

Source of funding State (Ordinary Budget and Public Investment Programme excluding EU funds)

Key points / working assumptions Includes funding from central and decentralized state structures. Note that 60% of this funding is allocated to personnel fees in the higher education and public research institutes. For the period 2009-2012 a decrease in state funding is estimated due to the recession, restructuring of research institutes under way and cuts in civil servant salaries Involves non-profit organisations, funds from own revenues

Other national sources of funding EU Structural Support Funding For the period 2007-2015 (2014 and 2015 involve residual and Initiatives (EU and national payments): data based on projected allocation of a total of 1,069 bn contributions) euro structural funds (ESPA) for R&D. For the period 2014-2020, there is a working assumption of at least 1 billion euro in total. EU competitive programmes ( For 2007-2013, the participation of Greek entities is estimated to be Framework Programmes) (EU approx 3% in the 7th Framework Programme (i.e. 1,5 bn euro out of contribution only) 50 bn euro). For the period 2014-2020, in the context of the future Horizon Programme that will have approx. 80 bn euro, Greek participation is projected to be 3% (i.e. 2,4 bn euro). Other sources of funding from International institutions, Other governments, enterprises from abroad abroad, universities from abroad, non-profit organisations from abroad Enterprises Figures until 2007 for odd years based on G.S.R.T. data. Projections from 2008 onward based on the 40% target (of total GERD) by 2020 This is the additional funding required in order to reach the target Gap of 1,5 R&D intensity by 2020.

10

GERD projections until 2020 (trend analysis vs 1,5% R&D intensity target by 2020)

Source/ : projections by GSRT /

11

Second part : Analysis of GBAORD and projections on the required level of public funding per priority sector until 2020

12

GBAORD per NABS : 1986-2006 (absolute figures)

GBAORD (Government Budget Appropriations or Outlays for R&D) are all appropriations allocated to R&D in central government or federal / regional budgets. In essence it refers to public funding (all sources of funding except enterprises) that is budgeted for R&D.\ GBAORD is broken down by socioeconomic objectives in accordance with NABS (the nomenclature for the analysis and comparison of scientific programmes and budgets).

Source/ :

13

GBAORD per NABS : 1986-2006 (percentages)

General University Funds (GUFs)

Source/ :

14

Thematic areas of university R&D (funded by GUFs*)

Source/ :

* GUFs (General University Funds) are government block grants to universities for departmental research

15

GBAORD per priority sector (based on matching with NABS): 1986-2006

Source/ :

Notes: 1) Priority sectors are the ones identified by the Minister of Education in May 2011 2) General University Funds, non-oriented research and other non-priority sectors are not included in the above chart 16

Projections for required public budget (GBAORD) by priority sector: 2011-2020 (percentages)
Key targets by 2020 (to reach 1,5% R&D intensity ):
GUF to decline gradually from 40% to 30% of public funding 6 key priority sectors to receive 40% of public funding Other (non priority) sectors to receive 17% of public funding Non-oriented research to receive 13 % of public funding

* General University Funds (GUFs) are government block grants to universities for departmental research

17

Projections for required public budget (GBAORD) by priority sector: 2011-2020 (absolute numbers)

Source/ : projections by GSRT /

* General University Funds (GUFs) are government block grants to universities for departmental research. ** GBAORD is estimated in approximation by deducting the targeted BERD from the targeted GERD based on the R&D intensity target of 1,5 % by 2020.

18

Third Part: Plan for the development of ESPEK

19

Planning for the development of ESPEK

Introduction and key targets The purpose of ESPEK The scope of ESPEK The stakeholders of ESPEK Key inputs required for its development Method for the development of ESPEK

20

The purpose of ESPEK

According to the new law for RDI (current draft): The aim of ESPEK is to enhance and improve the contribution of RDI towards the promotion of new innovative products and services that are globally competitive and to contribute to the economic growth of the country in general. The purpose of ESPEK is to promote RDI activities in specific fields that will boost the countrys economy and meet key societal needs. (RDI as a means/driver not an aim in itself)
In this context, ESPEK should be developed taking into account: Required changes in Greeces economic model Undergoing reforms in the public sector Key sectors of the economy that can benefit from R&D New societal circumstances and needs as a result of the economic crisis

21

The scope of ESPEK

According to the provisions of the draft new law for RTDI (that can be adjusted if needed):

ESPEK is a Framework Programme that will be the reference point for all: R&D programmes, Publicly funded R&D Activities and initiatives, Policy measures, Funding mechanisms. the idea is that all of the above are aligned to ESPEK (in particular the strategic R&D goals for the country) and their impact measured collectively (whereas today there are several dispersed and unsynchronized efforts)

Time frame: 2014-2018 (5 year period) ESPEK should identify:

At a strategic level the R&D goals & priorities of Greece The key means (financial means, policy measures, specific R&D programmes etc) to attain these goals within the given timeframe Performance indicators in order to measure the extent to which the goals have been realized
22

The strategic RTD goals RTDI goals for Greece

Based on Ministry of Education document on new RTDI policy:

Axis: RTDI excellence and capacity (in terms of human resources and infrastructures). / : Axis: Interconnecting R&D with the business sector in order to promote innovation. / Axis: Externalization & International collaboration. / , Axis: Science, Education and Society / To focus RTDI in sectors of priority that will advance socio-economic development: Materials and Chemicals Agrobiotechnology and Food ICTs and knowledge-intensive services Health and bio-health Energy and environment
23

The key stakeholders of ESPEK

At the policy formulation level the key stakeholders (policy-makers) are: 1.Ministry of Education / GSRT:

RDI policy co-ordination Policy measures such as tax cuts for companies with R&D activities Management of EU-funded R&D programmes (approx. 888 million Euro in the period 2007-2013 from ESPA) Oversight of a state-owned research and technology centres (not all)

2. Other ministries (ie. Ministry of Development: new Investment Law, start-

up Greece initiative, Ministry of Defence etc.) 3. Regional Authorities How will they benefit from ESPEK:

ESPEK will enable policy makers to have a reference point for the development of policy measures and specific R&D programmes and most importantly to co-ordinate their activities.

24

Beneficiary stakeholders & key benefits from ESPEK

At the beneficiary level :

The direct stakeholders are:

Academic institutions Research institutions Businesses via their participation in R&D projects etc.

Indirect stakeholders are:

Society at large as an end-user of new services and products

25

The key inputs required for ESPEK

Understanding of the current socio-economic situation. Key needs and challenges/priorities for growth. Need for a new socioeconomic model. Analysis of the current R&D environment (SWOT analysis). Analysis of the sources of funding, trends in GERD in the previous years (first part of this presentation) Lessons learned from the implementation of previous strategic documents (i.e. the strategy for ESPA-ETAK 2007-2013) and what should be avoided. Based on international experience, to determine how R&D can foster economic growth in a measurable way. Review of international best practices of other countries (ideally of similar size and structural composition). Identify what can apply in Greece.

26

Method for the development of ESPEK

The National Strategic Framework Programme for Research, Technical Development and Innovation (ESPEK) should be available by the end of 2012 Its development (and subsequent implementation) will be successful only if it involves all key stakeholders in RTDI (public authorities, R&D and business communities etc.).

In particular the thematic research councils () should be greatly involved

G.S.R.T. will develop ESPEK in consultation with ESET. The ESPEK will be subject to open (online) consultation

27

Timetable for the development of ESPEK

Development of working document (first draft of ESPEK) by G.S.R.T for discussion with TES by January 2012 Working groups expanding each sector of priority involving 3-4 member of the corresponding TES January-March 2012 Formulatation of integrated version of ESPEK by end May 2012 Open (online) consultation of the proposed ESPEK JuneSeptember 2012 Final ratification of ESPEK in the parliament by November 2012

Topics for discussion / open issues

In order to meet the 1,5 % R&D intensity target by 2020, RDI needs to be a top priority for the Government + it is necessary to identify the sources of funding to cover the Gap so as to reach the above target It is evident, that the 2% R&D target is unrealistic. The National Reform Programme () should be adjusted to reflect the 1,5 % target (in particular if the allocation of EU structural funds is linked to meeting the goals of the Programme. It is important to decide how ESPEK will be implemented i.e. via: Annual or bi-annual vertical R&D programmes that are priority sector based (that could be based on the experience of FP7 Co-operation Thematic work-programmes) Annual or bi-annual horizontal programmes (i.e. support for human resources, infrastructures across sectors) Combination of both vertical and horizontal programmes It is necessary to foresee a mechanism for the periodic re-definition of priority sectors in order to ensure they meet the socio-economic needs of the country At a policy level, key measures need to be designed and taken in order to: Motivate/attract private sector expenditures in R&D (in order to reach the 40% target of GERD) Link the allocation of funding to universities (via GUFs) to performance indicators Motivate researchers / address the brain drain issue Cultivate demand for R&D research in the 6 priority sectors Other? 29