Estonian RD&I policynew strategy in preparation

Dr. Indrek Reimand Deputy Secretary General for Research and Higher

Education

Tallinn, 28.05.2013

Estonian context• Very small country

– Still having its own language based culture and higher education system

– R&D needs to balance between specialisation and cultural/educational coverage

• Very dynamic– Unfavoured starting point, but catching up – No stabile economic structure to align the research system

• Very lean government– Very simple tax structure (no tax incentives for R&D)

• Very “e”– E-banking – 99% of transactions– European largest Public Key Infrastructure– First e-elections in the world

R&D is growing fastGERD / BERD

FP success

Publications

Patents

Finlan

d

Sweden

Denmark

German

y

Austria

Sloven

ia

Estonia

France

Belgium

Netherl

ands

EU27

Czech

Rep

ublic UK

Irelan

d

Norway

Portug

al

Luxe

mbourg

Spain

Italy

Hunga

ry

Lithu

ania

Poland

Croatia

Malta

Latvi

a

Slovak

ia

Bulgari

a

Cyprus

Roman

ia0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Source: Eurostat

R&D expenditure (GERD) in 2011, % of GDP

CURRENT RD&I STRATEGY AND RECOMMENDATIONS

Estonia in European Innovation Survey 2007-12

Thematic foci of current RDI strategy

• Estonian strategic RDI priorities are chosen to support research-driven, technology-driven and problem-driven R&D.

• Three of the seven national programs are selected with a technological focus – ICT, biotech and material technologies)

• Four are focusing on societal challenges– energy, defence and security, health care and welfare services,

environmental protection.

Targeting R&D during growth• ~ 25% growth per annum cannot be very focussed• Broad focusses apply!

• No stabile economic structure exists (fast restructuring even before crisis) to align the research system – R&D should be aligned with future economic structure

• R&D policies concentrate to basic values:– People, quality, enterpreneurship, infrastructure and cooperation – On the verge of change of economic structure (critical phase,

metastability) R&D may drive economic changes

ERAC peer review findings

• OUTSTANDING PROGRESS, BUT NOT WITHOUT CHALLENGES

• Overall conclusions– Steady progress driven by quality, excellence and competition– Innovation system detached from vast part of the economy– Challenge to further develop RDI system to make a difference

in the economy & society at large– Upgrade the role of Estonian industry in the global value chains– Lack of trained personnel hinders growth and investments

ERAC peer review - some recommendations• Perceive RDI as a means to achieve economic and

societal goals– Priorities directly responding to the needs of Estonian society

and the economy• More clear focus for Estonian RDI programmes

– linked to the implementation of the new national strategy– Fewer programmes of key importance

• Ensure coherent and systemic RDI policy– Attention on coordination and implementation of policies– Stronger horizontal coordination by RDC

• Harness RDI measures to drive structural change in the economy

ESTONIAN RD&I STRATEGY 2014-2020

Estonian RD&I strategy 2014-2020• The terms of reference for the new Estonian RD&I

strategy 2014-2020 were approved by the Government in June 2012.

• Ministry of Education and Research is in charge of drafting the strategy in close cooperation with other ministries.

• The new RD&I strategy has to be in compliance with the National Reform Programme, “Estonia 2020” strategy and Entrepreneurial Growth Strategy 2020

Goals• Main goal:

– Good framework conditions for development and making social and economic effects of RD&I

• Targets 2020:– GERD 3%, BERD 2% of GDP (2011: 2,41% and 1,52% of GDP)– 10. place in innovation Union Scoreboard (2011: 14. place)– Productivity per employed 80% of EU average (2011: 68%)

• Specific goals:– Research excellence and versatility– Increasing the socio-economic impact of R&D– Changing economic structure: smart specialisation– Estonia is active in international RD&I cooperation

Excellence and versatility

• Estonian research is competitive and visible in the world, while covering main directions. Estonia is an attractive place for RD&I. Research career is valued.

• Targets 2020:– Scientific publications among the top-10% most cited

publications worldwide as % of total scientific publications of the country), 11% (2010: ~ 7,5%)

– PhD degrees awarded per year 300 (2012 – 190)

Increasing socio-economic

impact of R&D

• R&D is oriented to the needs of society and economy, appreciating applications. RPO-s cooperate with business and government. State is a smart procurer of research

• Targets 2020:– Government budget appropriations or outlays on R&D

(GBAORD), except General Advancement of Knowledge: 40% (2011 estimated ca 30%)

– Share of publicly-performed research financed by business 7% (2011 2,95%)

Changing economic structure:

Smart Specialisation

• Research system actively contributes to change economic structure. Share of knowledge-intensive business is growing. Value added in export has grown

• Targets 2020:– Employment in high and medium tech sectors 9% (2010 6%); – Export share of high tech products and services 15% (2010

10,4%)

Smart specialisation:How will we do?

• Selected growth areas will have dedicated support programmes

• The growth areas are selected by Estonian Development Fund using OECD/EC Smart Specialisation methodology– The economic and research profile quantitative analyses are made by Enterprise

Estonia, Estonian Research Council and leading economists.• The growth areas will be supported comprehensively by different

policies and strategies

• Problems – methodological limitations: Smallness of the region, Quantitative

versus qualitative approach– Balance between horisontal and vertical measures (the degree

of specialisation)

The growth areas• The tentative growth areas has been chosen…:

– ICT supporting other sectors• IKT usage in industry• Cyber security

– Health technologies and services• biotechnology• e-health

– Resource efficiency• Material science and industry• Innovative building industry• Health promoting food industry• Chemical industry (oil shale)

Timeline for the strategy• In June the draft of the strategy will be consulted in

Research Policy Commission and R&D Council. • The strategy will be submitted to the Government in

June together with the Entrepreneurial Growth Strategy 2020.

• According to the law, the RD&I strategy has to be approved by the Parliament - the expected time is autumn 2013.

Thank you!

Dr. Indrek Reimand

Deputy Secretary General for Research and Higher Education

Ministry of Education and Research

Munga 18, Tartu

Tel.: 7350316

E-mail: indrek.reimand@hm.ee