INNOVATION MANAGEMENT IN THE AGRICULTURAL ...INNOVATION MANAGEMENT IN THE AGRICULTURAL EDUCATION...

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- 1 - State Agrarian University of Moldova INNOVATION MANAGEMENT IN THE AGRICULTURAL EDUCATION SYSTEM OF THE REPUBLIC OF MOLDOVA Master’s student: ReşitcaRodica Scientific advisors: PhD., Associate Professor I. Volentiri Dr.hab., Associate Professor Aurelia Litvin Chişinău - 2016

Transcript of INNOVATION MANAGEMENT IN THE AGRICULTURAL ...INNOVATION MANAGEMENT IN THE AGRICULTURAL EDUCATION...

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State Agrarian University of Moldova

INNOVATION MANAGEMENT IN THE

AGRICULTURAL EDUCATION SYSTEM OF

THE REPUBLIC OF MOLDOVA

Master’s student:

ReşitcaRodica

Scientific advisors:

PhD., Associate Professor I. Volentiri

Dr.hab., Associate Professor Aurelia Litvin

Chişinău - 2016

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Ministry of Agriculture and Food Industry of the Republic of Moldova

State Agrarian University of Moldova

Faculty of Agricultural Engineering and Auto Transportation

Department of Rural Electrification and Automation

Admitted to master’s thesis defence

Head of Department: Dr. hab., Professor T. Erhan

„ _ ” _____________ 2016

INNOVATION MANAGEMENT IN THE

AGRICULTURAL EDUCATION SYSTEM OF

THE REPUBLIC OF MOLDOVA

Master’s Thesis

Master’s student: ReşitcaRodica

Scientific advisors:I. Volentiri

A. Litvin

Chişinău – 2016

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The declarartion of master’s student

I, the undersigned Reșitca Rodica, declare on my honour that this paper is the result of my

own work based on my own research and based on the information obtained from sources that

were quoted and indicated in notes and references in compliance with ethical norms. I declare

that this paper has not been presented in this form in any institution of higher education for the

purpose of obtaning a scientific or teaching degree, title or position.

Author’s signature ______________

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REZUMAT

Lucrarea respectivă se referă la esenţa şi rolul managementului inovaţional în

cadrul sistemului educativ în general şi cel agrar în special.

Lucrarea dată reflectă o analiză a situaţiei în domeniu, atât din punct de vedere

teoretic cât şi practic. De asemenea au fost propuse principalele modalităţi de

îmbunătăţire a sistemului educativ în baza elementelor inovaţionale.

Rezultatele studiului vin ca suport în domeniul argumentării necesităţii

transferurilor tehnologice, pentru asigurarea unei dezvoltări durabile a organismelor din

sistemul educativ.

Studiul se referă la analiza structurii sistemului educativ agrar din Republica

Moldova.

SUMMARY

This work refers to the essence and role of innovational management in the

education system in general and agriculture in particular.

This paper reflects an analysis of the situation in the field, both theoretical and

practical. Also proposed were the main ways to improve the educational system based

on innovative elements.

The study results come as the argument in support of technology transfers need to

ensure sustainable development of the education system bodies.

The study refers to the analysis of the agricultural educational system in Moldova.

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CONTENTS:

INTRODUCTION……………………………………………….…………………………… 6

Chapter I THEORETICAL BASES OF INNOVATIVE MANAGEMENT……….…….. 8

1.1. The concept, role and essence of innovation management ……………………………... 8

1.2. Methods used in innovative management ……………………………………………... 22

Chapter II THEORETICAL CONCEPTS TOWARDS AGRICULTURAL

EDUCATIONAL SYSTEM IN REPUBLIC OF MOLDOVA……………..……….….……31

2.1. General characteristics of the education system in Moldova…….…………..……………..31

2.2. Analyze scientific and innovative infrastructure in Moldova……………………..….…… 42

Chapter III IMPROVING AGRICULTURAL EDUCATION SYSTEM THROUGH

INNOVATIVE MANAGEMENT…………………………………………………………… 47

3.1. Management effectiveness in higher education…………………………………………… 47

3.2. Innovations in agricultural education management …………………………….…………52

CONCLUSIONS AND PROPOSALS……………………………………………….…….... 56

REFERENCES……………………………………………………………………..….……… 58

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INTRODUCTION

At the time of independence, Moldova was left with substantial local assets of the former

Soviet system. It inherited a large number of research institutes and a high number of scientific

staff which the economy could not support. Funding constraints and resistance to downsizing

have plagued efforts to restructure the research system. Additional challenges continue to be to

change the mentalities, objectives, procedures, processes and programs from those designed to

serve those of the Soviet Union to those that serve Moldova’s needs and aspirations.

Changes in the structure of agriculture, such as from large collective farms to small

privately owned ones, mean that the entire agricultural technology system, including research,

education, and extension must be reorganized/reengineered in order to be responsive and

effective. Unfortunately, after 25 years of independence, this process is still at its beginning in

Moldova.

One of the basic weaknesses of the Moldovan VET education and training system is that it

is not practical enough and not well connected with the post-independence labor market.

Therefore, its graduates do not correspond to the expectations of employers. At the sector level

no formal bodies exist where the social partners can communicate and influence the VET

system. At the regional level, no formal VET structures exist either. Unfortunately, no tracer

studies seem to have been undertaken that would allow seeing what has become of the graduates

of the VET schools.

The innovation and technological transfer activity is a important one and absolutely

necessary for the formation of a competitive economy in modern society, however, namely, they

create the interaction between the academic environment and the business one. The conversion

of scientific research results in practical knowledge through the introduction in economical

circuit of new products, services or process, that correspond to the necessity and requirements of

the market are the ”life preserver” of the developing states.

Technological transfer represent theintroduction in economic circuit of the technologies and

specific machinery, equipment and installations, hybrids, species, breeds, preparationsresulted

from research or purchased, to increase the efficiency and quality of some products, services,

processes or to obtain others, new, demanded by market or wherewith is adopted a innovative

behavior, inclusively the activity of dissemination of information, of explaining, of knowledge

transfer, consultancy, being performed transmission of an idea or technology from author to

recipient.

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The technological transfer of the scientific results from the research environment to the

business is the main method of economic growth stimulation, applied worldwide, and in the

strategy “Europa- 2020” the research in the benefit of the SME’s has an absolute priority

Entire technological transfer process include scientific, technological organizational, financial

and commercial steps, trough must pass new ideas, products and processes from any economical

domain. In technical domain, for instance, this complex process consists of the transformation of

the research activities or an invention, in a product or a new industrial procedure or in a

substantially improved one.

Based on the above mentioned we can mention the actuality of the research theme. The

goal of the thesis results from the theme and consists in: Restructuration of the innovational

management in agricultural education system in Republic of Moldova

The established goal could be achieved through following tasks:

1. The study of the innovational management particularities;

2. The study of the theoretical concepts of the innovational management:

3. The study of the particularities and the concept of the innovational management in

agricultural educative system in Republic of Moldova.

4. Development of the recommendations related to restructuring of the Innovational

management in agricultural educative system in Republic of Moldova.

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Chapter I THEORETICAL BASES OF INNOVATIVE MANAGEMENT

1.1. The concept, role and essence of innovation management

Innovation is not conditioned only by the creative abilities of the staff, but also by other

elements which depend to great extent by the management of the firm, thing that I’ll tackle later.

I .Dijmarescu says that to innovate is a management function. The manager role to

innovate begins with the critical analysis of competitive situation of the firm, selecting of

important action that need to apply in immediate future. Practically, manager must launch itself

in a firm situation amelioration project, to evaluate first results and after that to duplicate his

effort and to accelerate the speed of changes, imposing his objectives, with realization terms.

C. Russusays that modern management are highly creative. The creative face of managerial

activity is manifested in creation and sustained promotion of the “new” through perseverant

adopting and applying of innovative activities, axed on the changes preparation and generation.

Harrington H. J. and Harrington J. S. affirms that innovation has been successful

anywhere it was applied. Innovation means growth and survival.

Another research that has studied innovation very detailed is P. Drucker. In his book

”Innovation and entrepreneurial system” he demonstrate that innovation is the specific

instrument of our entrepreneurial system. Innovation represent the permanent searching of

change process, adequate reacting at this change and her(change)exploitation like an occasion.

Innovation is the act that endows means with a new capacity to create wealth. In other

words, innovation is a means. But, there is not means until human do not find a usage for

something from nature, which in this mode, endows with economic value. [4]

Subjects that innovate are successful entrepreneurs. Successful entrepreneurs, irrespective

of their individual motivation, try to create and to bring contribution. They are not satisfied only

with improving of that already exist, or with modification. They try to create new and different

values and new and special satisfactions, to transform a “material” in a “means”, or to contribute

to existing means in a new and more productive configuration.

Only the change, offer always occasion for new and special. That’s why innovation

consists of organized search an goal well defined by changes and in systemic analysis of

occasions that these changes can offer to economic or social innovation. Usually, these are

changes that already happen or are in a way to happen. The great majority of successful

innovations exploit change. Of course, there are innovations that constitutes, themselves, a major

change, for example some technical major innovations. [4]

In table 1.1 are presented different definitions of innovation developed by some

management authors

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Table 1.1 Innovation definitions by some management authors

Authors Innovation definitions

M. Moldoveanu and

Em. Dobrescu

Ability to develop new solutions, and capacity to introduce in world

new thing, capacity to create ideas and original products, to reveal

new unknown dimensions of the phenomena, but also solutions to

resolve the problems

Ov. Nicolescu and I.

Verboncu

The main defining element of creativity is generation of new ideas.

Innovation, instead, is characterized both for apparition of new ideas

and through making changes based on them.

I. Dijmărescu Critical analysis of competitive situation of firm, selection of

important measures to be applied in short terms

C. Russu Creation and sustained promotion of “ new” through perseverant

adopting and applying of innovative activities, axed on preparation

and generation of changes.

Harrington H. J. and

Harrington J. S.

Growth and survival.

P. Drucker Innovation represent the permanent searching of change process,

adequate reacting at this change and her(change) exploitation like an

occasion. Organized search and goal well defined by changes and in

systemic analysis of occasions that these changes can offer to

innovation.

Sourse: [4]

The process of innovation has a broad coverage. Practically, is manifested in all activities

that have place in enterprises, not resumed on products and technologies. He aims and

informational systems, economical methods, organizational structures, decision processes, etc. Is

necessary to make this specification, whereas, often, there is the trend to limit the creativity and

innovation on manufacturing activities, despite in last year’s worldwide is manifested a trend to

promote other categories of innovations and inventions. [15]

In literature there are more opinions, visions and algorithms regarding to the mode of

realization of the innovational process in enterprise. Often, they are very different and differ

essentially. Certainly this subject isn’t very structured in literature. At the same time, the cause

of diversity in views among specialist resides in a high complexity of the subject – innovational

process. [15]

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In what follows I’ll search some vision of management research, both occidentals and

roumains, regarding essence, content and realization mode of the innovational process in

enterprise.

I. Dijmărescuhighlights in algorithm next fundamental activities of a firm in which is

expected that managers will realize, on a corresponding lead, a radical change of the situation

towards actual situation.

- marketing;

- internationalization;

- production;

- sale;

- customer serving;

- innovation;

- staff;

- organization;

- lead;

- informational systems and administration;

- administration control and finances.

In table 1.2are presented the ways of realization of the innovational process in the past and

future in an enterprise.

Table 1.2 Innovation in enterprise: in the past and future

Domain In the Past In the Future

Innovation Centralized research development; big

projects; the technology have priority

towards the need of client; interest is

limited only on new products.

Design of new products in

autonomous decentralized unities;

increased responsibility towards the

client; satisfying of the needs of client,

even by minor product changes

Sourse: adapted by the author from [4]

Is considered that passion for change is the vector that will assure the prosperity of the

firm. Next principles of the innovational management constitute the premise of the success in

business:

- a firmly answer to the needs of customers;

- development of a permanent process of innovation in all areas of activity of the

firm;

- creation a partnership spirit:

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- existence, on all managerial levels, of a passion for changes and a drive capacity

of firm employs to development of an good idea or proposal;

- utilization of simple leading instruments, but capable to assure an efficient

activity.

Prescriptions regarding permanent innovation provide encouragement of launching new

projects in all domains of firm functions, with the aid of all employs, so that to not retarding in

relation with the evolution of ultrafast changes of actual circumstances.

Prescriptions regarding top management – suggests application of new methods that foster

changes (shortening to a minimum production cycles, a superior quality, customer satisfaction,

implication of all staff) and continuous reduction of the hierarchy in the firm(elimination of

intermediate decision and control hierarchical steps)

Innovation represent a managerial function, so, from manager is excepted to lead in that

mode in order all engaged individuals (employs, customers, shareholder ) be satisfied with their

work. To perform this, they appeal to the following:

the transfer of decision power in inferior levels;

need to action fast

fast adaptation

elimination of functional obstacles and staff qualification to create a market for

goods and services with high value.

The well-known management researchers Ov.Nicolescu and I. Verboncu detect that the

innovational process in enterprise is conditioning by a series of elements that depends to a large

extent by the management. Mentioned authors mention apart two main elements by which

depends efficiency of innovational process. [3,4]

1. Main components of the managerial system that represents framework-conditions

for development of innovational capacity of the enterprise staff:

- Training and retraining of staff

- Organizational structure

- Informational system

- Decisional system

- Motivational system

- Managerial style

2. Factors that influence directly the formation and development of innovational

potential:

- Innovative capacity of the persons and collectives in the firms;

- Sensibility to perturbations in cooperation of teams;

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- Preparation in domain of managerial methods;

- Preparation in domain of creative skills and thinking methods.

To express the dimensions of innovational process in enterprises is possible to use a system

based on indicators, the most important being listed below in table 1.3

Table1.3 Indicators of innovation

Indicators

1. Total number of existing inventions

2. Total number of applied inventions

3. Expenses for inventions

4. The total volume of economies post-calculated for inventions

5. The total volume of foreign currency receipts from turning inventions

6. Total number of existing innovations

7. Total number of applied innovations

8. Expenses for innovations

9. Volume of rewards for innovators

10. The total volume of economies post-calculated for innovations

Sourse: adapted by the author from [4]

The intensity of innovation in a firm, with the aim to increase ”final production” of

technologies, products, new or modified organizational solutions, involves multiple

improvements.

The intensification of innovation impose substantiation of entire managerial work based on

a set of rules (tables 1.4), that reflect both the necessity of realization of enterprise objectives

and the innovation process specific and particularities that are meet frequently in people that

have an high level of creative potential. [4]

Table 1.4 Rules for innovation amplification

Rules

1. Maintaining a permanent contact among managers and executants, especially among those

who are in a direct hierarchical subordination relationship

2. Recognition and encouragement of people who possess an appreciable creative capacity

3. Instauration of an new-permissive ambient atmosphere, flexible inside the firm

4. Protection and maintaining creators self-esteem

5. Creation of a possibility for creators to work independently

6. Tolerance towards creators fails

7. Abstention to pretend to firm a total creative spirit

8. Fast evaluation of new ideas by managers

9. Little attention for weirdness of creators from managers

10. Moral and material incentives for creators corresponding their’s performance in

generating or facilitating the innovations

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C. Russuconsider that innovational process realization in enterprise assume the permanent

searching of new, not imitation or acceptance of them, involving decisions, measures and

actions to stimulate production and enterprise progresses amplification on technological,

economical and organizational plans.

American Authors Harrington H. J.andHarrington J. Sestablish that organizations with

most successes, for example, 3M(that forecast that approximate 25 % from sales are represented

by products designed in las five years). Sony and Honda, gives the tone in theirs domain,

because they aren’t satisfied to imitate the competitors. They want to be the companies with

most successful products on the market.

Delay of new products launch on the market have a most negative aspect to profitability

than the over budgets of the realization of products, that is the traditional indicator of success.

The shortest time for market launch allow companies to increase the diversity of products.

Those authors identify next objectives of process innovation inside the enterprise:

Increasing of volume and speed of production;

Improvement of manufacturing capacities;

Use of new technologies;

Reduction the time of market launch;

Quality growth ;

Competitive advantage of the most of the performant enterprises consists from a highest

quality and lowest prices they has achieved through innovation. Success companies, uses on a

large scale flexible production systems, in which they use robots for most of the operations. The

just-in-time concept highlights the fact that providers provide only the volume of materials

needed to client work until the next order. Instead of stock the materials from providers before

use them, enterprise introduce them direct in the manufacturing process. This method lead to an

important reducing of the depositing areas needs for realization of product. [15,4]

In this connection is considered that, the process of benchmarking can speed the innovation

through evaluation of position in which the firms are from process and product technology point

of view reported to competitors and international level companies. The first step of

benchmarking evaluation is the knowledge of own process, the objective is to achieve

improvements. Benchmarking can help very well in selecting the process alternatives for radical

improvements .

Significance of the innovational process in to assure competitive advantages of the

enterprise is highlighted and by the management author I. Ciobanu. He say that creation of the

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competitive advantage needs discernment regarding new ways to compete on the market. Also is

necessary a desire to make required investments and to accept the risks.

Competitive advantage stems largely from improvements, innovations and changes. Some

companies get an competitive advantage reported to competitors because they adopt a new mode

to compete with efficacy or find new better means to compete in yet existing modes. Innovation

realized in these companies include not only new technologies but new methods and modalities

that sometimes seems to be insignificant. Innovation can be manifested in the companies

through a new form of a product, in a new process of production, in a new kind of marketing or

in a new mode of staff training or labor organization. Some innovations create a competitive

advantage when a company change a new needs on the market or he deserve a market segment

that the competitors ignore. Also, innovations that create a competitive advantage are based on

methods or new technologies that make the tools or production machines to be obsolete. [3,4]

Once obtained, competitive advantage can be kept only through a systematic search of new

better modalities and through continuous firm behavioral modifications in his activity. However,

the continuous change on the path of innovation contravenes, in a large majority of enterprises,

to organizational norms. In general, firms prefer to avoid the changes. Is happen very rarely that

a company resort to a spontaneously changes; what determine her to do this is the environment.

A firm needs to expose herself to pressures and external stimulants that determine the action

necessity. He must identify and create impulses in the direction of change

Maintaining the competitive advantage require that a firm must to practice a form of what

the economist Joseph Shumpeter call “creative destruction”. The firm needs to destroy his old

advantages through creation of new advantages. If he do not do this, another competitor will.

The concrete modalities through which a firm can create impulses in innovative directions

are follows: [4]

- Through identifying of customers with most complicated requirements that put

pressure on the firm and provide ideas that allow bring qualitative improvements to the

products and to extend the customers offered services. Such customers become a

constitutive part of the research and innovation program of the company.

- Establishing of the norms that exceed the most strict requirements of the

regulations required from government or the standards linked to quality of products. In

some countries, regulations regarding the quality of products, pollution, noise, etc. are

very exigent. Such extremely rigorous regulations do not represent an obstacle, but a

possibility to action in the direction of improvement of the product and the manufacturing

processes.

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- Use of providerswhichposses a competitive advantage. Those, excepting their

experience, stimulate the company in many ways and are great help for improvements.

- Treatment of the employs like a permanent staff. Such attitude createspressures

that acts in support of enhancement and maintenance of the competitive advaneage. New

employs are treated with stringency, and the firm need to make continuous efforts to

grow the productivity but not the labor force. Employs are continuous instructed in the

idea to maintain new complex competitive advantages.

- The most prominent competitors treatment – motivational source. Those

competitors who are nearby the level of firm or have exceeded him, should be the

criterion of comparison.

- The task to be wise belongs, in last instance, to the manager of the company.

Orientation to the peaceful environments of activities and comfortable reports with

clients acts only to consolidate the past comportment. Lobby actions against the standards

exigency imposed to products, emits inside the company wrong signals regards norms

and aspirations. Innovation flows from pressure and provocation. He flows, also, from

wise chose of the effort of contracting the universities.

One of the most known authors in management who was studied the problem of

innovation and innovation management is P. Drucker.

In his book “Innovation and innovational system” dedicated to this problem, he identify

and comment the possible sources of innovation. It should be noted that these sources are

invented by P. Drucker itself.

He finds that, in specific way, systemic innovation means the watching of seven sources of

innovation occasions.

The first four sources are inside the companies, either is about the business, either is about

the non-profit, or inside a industry in the service sector. Therefore, they are visible firstly for the

person that works in that industrial or service sector. This is in essence symptoms. But there are

also very serious indicators of the changes that have already taken place or can take place with a

little effort. These four sources are: [4]

1. Unpredictable –unpredictable success, unpredictable failure, unexpected

exterior event.

No other area can offer richer occasions for successful innovation than unexpected success.

In no other area there are no innovative occasions less risky and their monitoring less laborious.

However, the unexpected success is almost entirely neglected, worse, the managerial system tend

to reject him. For the leaders is difficult to accept the unexpected success and because we all

believe that something that lasts long should be “normal” and must go in this mode to the

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“infinite”. Everything that contradicts what we consider be a law of nature, is considered illogic,

unhealthy, abnormal. Often, the unexpected success is unnoticed. No one pay attention for them,

no one fructify. A motive of the unexpected success neglect is that the existent reported systems

do not report, notwithstanding the opportunities arising, and about who the management of firm

should be informed. Practically, each firm has a monthly or semester report. In the first part there

is noted areas in which the performances are under expectances, namely are listed the problems

and the deficiency. All company driving workers concentrate on the problematic areas. No one

are looking even on these areas in which the company has done better than she expect. And if the

unexpected success is not quantitative, but qualitative, the numbers usually, will not note even

the unexpected success. In this way, the unexpected success is not an innovation but an occasion

for innovation, he impose the innovation.

The failures, in contrast to successes, cannot be rejected an rarely go unnoticed. But, often,

they are seen like symptoms of the occasions. Manny failures are, obvious, nothing else but

mistakes or incompetence results, either in design either in execution. And however if something

fails despite the fact that is carefully planned and thorough executed, the failure attract the

fundamental change and, with her, innovation.

Along with unexpected success and failure, equally important, if not even more important,

are the events that take place in the exterior, namely the events that are not noted in information

and numbers through which the company management drive the company.

2. Incongruity (discrepancy) – between the reality how is in fact and the reality

how is pretended to be, or how he must be.

A incongruity is a symptom for innovation. He create a instability in which, with little

efforts, is possible to create an economical or social restructuration. However incongruity is not

manifested in the numbers and reports that receive and study the company management, because

they are not quantitative, but qualitative.

As unpredictable, either a success or a failure. Incongruity is the symptom of change that

already happens or can happen. As changes that are on the unpredictable basis, these on the

incongruity basis are changes inside the enterprise, a market or process. So the incongruity is

seen by all from inside or nearby enterprise, market or process, because is happen on their eyes.

But, however, is often ignored by those from inside, that have the tendency to believe that “so it

was always”, even if “always” is some that recently appeared.

There are several types of incongruity:

An incongruity between economic realities of an industry;

An incongruity between the reality of an industry and the assumptions upon it;

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An incongruity between the efforts of an industry and the values and expectances of her

customers;

An incongruity internal

3. Innovation based on the process necessity.

The process necessity exists in a business, in an enterprise or in a service, as the

unpredictable and the incongruity.Theprocessnecessity not begins from an internal or external

event. He begins from the work that must be effectuated. Is concentrated more on the task than

on the situation, improves a method, replaces a weak link, redesign a process taking into account

by the lass scientific information.

In a process necessity based on innovation, anyone inside the company knows that the

necessity exists. But however, no one do nothing. But when innovations appear, are accepted

immediately like “evidences” and became in short terms “standards”.

4. The changes in the industry structure or in market structure, that find everyone

unprepared.

The industry and market structures lasts, sometimes, years and seems to be completely

stable, in order to be considered like a part of natural order. In fact, these structures are fragile. A

change is sufficient and all disintegrate, sometimes very fast. Then each member of the

respective industry must act, because to continue the business in the same way means the

disaster and even default. In the most lucky case, the enterprise will lost the supremacy, that do

not regain usually anymore. But the change of structures can be a good occasion for innovation.

The second set of sources for occasions for innovations, a set by three, imply changes in

outside of enterprise or industry:

5. Demographical (population change).

6. Receptivity, mood, and understanding for innovation.

7. New scientific and unscientific knowledge.

Between these seven sources of occasions for innovations there is a directinterdependency.

These seven sources needs a separately analysis, because each have his distinct characteristic.

However, neither area is more important or more productive than other. Is in the same proportion

probably for major innovations to appear from a change symptoms analysis (how is the

unexpected success of the insignificant considered change of the product or pricing), or to appear

from the massive application of new knowledge resulted from big scientific discoveries.

The order in which these sources will be discussed is not arbitrary. They are included in a

list in descending order of safety and predictability, because, despite the perhaps general trust,

new knowledge’s and, mostly, new scientific knowledge are most sure or most predictable

sources of innovation and success. Despite the transparency and importance of based on science

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innovation, this is in fact the less safe and less predictable. Conversely, analysis of these basis

changes symptoms, like the unexpected success or failure, behaves a low risk and level of

unsafely. And innovations that appears from these have the most short period of time between

the begin of enterprise and his results either a success, either a failure.

Also, in the opinion of American scholar P. Drucker, the main management problems that

need to be solved in a small innovative enterprise are follows:

- concentration on one market;

-financial planning, especially for planning for necessary money and capital ;

-composition of a drive team, even before the new enterprise need her or can afford her;

-taking by entrepreneur a decision regarding to his role, and the domain of activity in his

relationship system.

Concentration on one market.Usually, when a small innovative firm manages, this not

happen on the market for what it was designed, and the products or services are for other

consumers than those provided. If a small company do not anticipate this thing and, if is not

reorganizing itself to benefit by unpredicted markets, if not concentrate on these markets, if is

not driven by these, he create an occasion for competitors do that.

An absolute new product creates markets that no one think about. Until 1960 when first

Xerox appears, none think that they need a copy machine in bureau. After 5 years, none imagine

how to work without a copy machine. [3,4]

Innovator entrepreneur have a limited vision. He see only his domain wherewith is

familiarized. Although, entrepreneurs know the utility of their products, if other application

appear , they have the tendency to reject her. In fact they don’t refuse the clients that they have

not “planned”, but they shows clear that these clients are not welcome. The solution for this

problem resides in “market prospection”. But this solution has some limits. Nobody can do

market prospecting for a product or service that is totally new, there is not on the market.

Therefore, small entrepreneurs needs to begin from the idea that the product (or the service) can

find customers on the markets about nobody thinks, or utilities that nobody imagined when the

service or product was designed, and that it can be buy by customers unknown for this firm.

If the small innovative enterprise do not concentrate, from the begin, on the market, he can

create a market for an competitor. After several years “ that people” will come and “ will take

our market” or “ those people that begin to sell to customers that we do not hear about” will

really occupy the market

In a small innovative firm is very difficult to concentrate on the market; but what must be

done for that, is against the entrepreneur’s inclinations. He must search systematically both

unpredictable success and unpredictable failure. [4]

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Unpredictable success. For entrepreneur is difficult to accept the unexpected success and

because we all tend to believe that something that lasts long enough should be “normal” and to

go so to the infinite. Anything that contradict something that we use to consider like a low of

nature is rejected like illogic, unhealthy and abnormal. That’s why the unexpected success can

irritate even the entrepreneur.

Often, unexpected success is not observed at all. Nobody pay him any attention, nobody

exploits him The inevitable result is that the competitors are they who fructify them. Practically

any enterprise, no matter how big is, have a monthly or semester report . In the first part there is

noted areas in which the performances are unde expectances, namely are listed the problems and

the deficiency. All company driving workers concentrate on the problematic areas. No one are

looking even on these areas in which the company has done better than she expect. And if the

unexpected success is not quantitative, but qualitative, the numbers usually, will not note even

the unexpected success. Entrepreneurs must look at any unexpected success with questions: [4]

- What this will means for us if we exploit him.

- Where it could lead ?;

- What we need to do to transform him into occasion?;

That means, firstly, that innovative entrepreneurs needs a sometime to discuss the

unexpected successes, but, secondly, always someone must be designed to analyze an

unexpected success and to think how to exploit him.

Unpredictable failure. Failures, in contrast to successes, cannot be rejected and rarely go

unnoticed. But, often, they are seen like occasion symptoms. In case if the assumptions which a

product or a service, his design or market strategy is based on, are not in concordance with the

reality. Maybe the consumers have change their value and receptivity; when they buy yet the

same ”thing” they buy in fact a very special “value” . Or maybe what was always a single market

was broken into two or more parts, each demanding something different. Any of this change is

an occasion for innovation. Small entrepreneurs must spend time on that market with the clients

or with the commercial agents, to watch and to listen.

The small innovative enterprise should develop systematic practices to not forget that

“product” or” service” is defined by his clients not by the producer. Is necessary a continuous

work in order that utility and value of the products or services to be in behalf of clients.

The biggest danger for the small innovative company is to “ know better” than consumer,

what should be the product or service, how must be achieved and how to use him.

Financial planning. A lack of a financial and suitable financial concentration and a

financial politic is the biggest threat for an enterprise. Is a threat , mostly for small enterprises

that develops rapidly. The greater success, the dangerous is the lack of financial planning.

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Rarely happen that entrepreneurs who establish a small business not knowing nothing about

money, conversely they tend to become greedy. Therefore they focus on profits and this is the

great mistake , because the problem of profits must be the last not the first. Money, capital and

controls are coming ahead the profits because without them profit is a fiction, namely an

accounting note made to balance the costs.

The small innovative enterprise need an costs analysis , an prevision of them and an

management in this domain. Entrepreneurs must know, twelve mounts before, what amount of

money he needed and for what. Having a period of an year at his disposal is always possible to

finance some urgent situations. But, even if a small enterprise goes well, is pretty expensive to

achieve rapidly some money, in a time of crisis. This situation distract key specialists from their

problems in most critical moments. They spend time and consume theirs energy running from

one financial institution to another, without having the possibility to solve current problems.

When they begin to think again of business, they have lost already major occasions. [4]

The small innovative enterprise that have success will surpass the structure of capital. A

rule said that a small firm surpass the capital basis on each increment of sales with 40-50%.

After such increments, is required a new structure of capital. With the growth of the business, the

particular sources of the founds, may it be of owners, may it be of their families, not match

anymore. With the business development, the existent structure of the capital become, an

obstacle. The planning of the capital is a requirement for survival for small enterprises. If a firm

which is developing, plan in realistic way his requirements to the capital and the structure of the

capital for a period of three years, namely, she assume maximal requirements, not minimal, she

needs to not have difficulties in obtaining of money that needs, when needs and in the form she

needs. If a firm wait until the basic capital and the structure of is exceeded, she endanger his

existence and independence. [4]

Managerial team composition.The cause of many small firms bankruptcy is often the lack

of superior management. The firm has developed being driven by one or two persons, and need a

managerial team which if he doesn’t exist, is too late to compose here. In this case the only hope

is survival, but the firm will be affected forever.

Remedy is simple: composition of managerial team should be made before she is needed.

But the small enterprise can’t permit her a managerial team, because she do not have finances to

pay appropriate salaries.

Again the remedy is relatively simple and there is needed only the wish of proprietary to

make a team. They need to think of their business keys activities . What are the specific areas by

which depends the survival and the success of the firm? The next is the question “to what

activities I am good? And to what activities are good my associates?” The next step is the

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question: “What are the activities to assume according to capacities of each partner? What fits

for everyone?”

Begins the composition of team. The proprietary need to discipline themselves and to not

handle with human and problems if this activity does not fit. Maybe he must deal with new

products and with new technology, maybe with operational system, with production, with

physical distribution or maybe with financial problems. Finally it must be established objectives

for each area. Who take the responsibility for a key activity, must be questioned: “ Wat may this

enterprise expect from you? What will be your responsibilities? What you intend to do and

when?” [4]

In the beginning is prudent that the managerial team to not be officially established. Is no

need to give functions, to make declarations, and to pay extra. All this can way a period of time.

In this time, team members have much to learn about their work, about they work together.

After two or three years, when small enterprise needs a senior management, he already exists.

In that case if is not ensure a senior management before he is needed, the ability to lead of

the small enterprise will be lost before a managerial team be required. Entrepreneur will have so

much responsibilities, that the most important tasks will not be performed. In that situation there

is only two possibilities. First possibility is to focus the attention on one area(maximum two),

that fits to entrepreneurs interests and abilities. This are, indeed, key areas, but not the only

important, but with others there are nobody to deal. In two years, important areas are set aside,

and the viability of business is in danger. The other possibility, worse, is that entrepreneur be

conscientious. He knows that money and people are key activities that must be care. Let’s said

that the competence and the interests of entrepreneur are linked by design and development of

new products, but he insist to deal with people and financial problems. And because he is not so

doted in this domain, what does he do is very little. He must take decisions for these domains, so

because of lack of time, he neglect the activities at which is good, namely new technology and

new products. After a period of time, the firm will find herself in a situation without products

that she need and without a financial lead and staff. [4]

In first case, the firm can be saved because she have the products. But entrepreneur will be

replaced by that who come to save the firm. In the second case, all that is possible is to liquidate

or to sell the firm.

So, a small innovative firm must form a leading team , before she is needed, before the

actual management be overcome. Entrepreneur must learn to work with his colleagues, to trust

in people and to consider them responsible for what they are doing.

Determining the role of entrepreneur in the future of enterprise.With the development

of the firm, the role and the relations of entrepreneur are changing. If the owners refuse to accept

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this situation, the business can fail. Are known many cases when the entrepreneurs, that don’t

want to change themselves with the enterprise, have destroy both the business and themselves.

But even from they that accept the fact that they need to do something, few knew how to tackle

the change of roles and relationships. They tend to begin with. “ What I like to do” . The correct

question is: “What need in the future the enterprise from point of view of management?”. This

question needs to appear whenever the firm passes a development step or changing the character

or directions, namely the change of products, services, markets and needed people. The next

question that entrepreneur must put themselves is: “ What can I do? To what necessities of the

firm can I respond in a honorable way?” After that questions follows: “what I want to do, in what

I trust? For what I am ready to sacrifice my time? Is that a necessity for the firm?”. [4]

An important factor for new or developing enterprises entrepreneur is : necessity for an

external objective independent advice. Is possible that little enterprise to have no need for

directorial board. For many times this board do not provide the advices that the entrepreneur

needs. People that it should advice with in taking important decisions are very hard to find in the

company. Someone must to cause the appreciation of the entrepreneur related to the

requirements of the company and own ability. Someone that is not involved in the issue must tu

ask questions, to review decisions and to impose permanently satisfaction of the needs to

survive, on long terms, of the enterprise through focus on the market through providing financial

previsions, through creation of functional leading team. This is an important require for

entrepreneurial management of small enterprises.

1.2. Methods utilized in innovational management

Important directions of firm innovation potential amplification represent the use of

methods to stimulate the creativity of the employs. On the basis of these methods is the theory on

creative thinking, that substantiates concept on several principles, and namely:

a) Each person have less or more the aptitude to create;

b) Some psychological and social factors impede people to fully use this faculty;

c) Some preparation methods allow the elimination of psychological obstacles and

the most adequate use of the ability to create and even to enhance her through

corresponding trainings;

The creative process is an essential condition for the existence of each firm. Through the

stimulation of the creativity in general and the useful creativity especially, the firms manage to

cope the competence that manifested now in the competitive economy. Because of this all firms

are concerned by searching of the ideas that can materialize in products and services. The

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managerial practice proves that these ideas can be the result of individual thinking realized solely

or in the context of special groups constituted for this aim, in the basis of some managerial

methods for stimulating of the creativity of the enterprises staff. The main methods will be

presented in the follow:

Brainstorming.Like a method to stimulate the ideas, Brainstorming vas launched by Alex

Osborn. He represent “ideas storm”, having the scope to provide a possibly larger number of

ideas on how to solve a problem, in the hope that inside them or through their combination will

be obtained optimal solution. The method consists firstly in presentation of the problem to a

group of people that will provide ideas to solve the situation. The process is realized in several

steps. For the first, is explained to the group that are necessary ideas that come in mind related to

a problem. The quality of these ideas are not taken into account at the first step. Is not admitted

critic or boaster of the idea, are denied questions or commentaries in related with ideas, instead is

encouraged combination and improvement of the ideas issued previously. [4]

In the second step , is trying evidence of the merits of each idea, considering that in this

mode is possible to obtain and others alternatives from which will be withheld mostly the most

important alternatives.

Finally , the last step is chosen the final alternative, which usually represent a consensus of

the group.

The analyzed method is scroll in groups constituting by a low number of persons, usually

5-12, and homogenous from point of view of the professional training and occupation. The group

is coordinated by an moderator, and the medium term of a meeting is 15-45 minutes. The main

rules of the development of the brainstorming that participants needed to know are follows:

- Strict determination of the problem, limitation and precise shaping;

- ensuring an appropriate place for the meeting, therefore to create a permissive

atmosphere;

- carefully selection of the participants based on the principle of competence in the

covered area;

- clear exposure and most concisely of the problem which require solutions;

- Admission and even request of idea formulation however unusually or courageous

they seems to be;

- Deny in the session of expression of any evaluation, appreciation, or critical

judgments of the enounced ideas;

- Avoidance of the speaking only just for participation or affirmation, deviation from

subject;

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- Accurate and complete recording of the discussion, especially of the emitted

ideas/solutions ;

- Ideas evaluation and selection after meeting, with the aid of managers and specialists

in the same domain as the problem.

The advantages of this method consists in: easy obtaining of the new ideasofsolution for

managerial and other kind of problems; low costs for use of this method; possibility to use on

the large scale, practically all the components of management.

Synectics – Represent another method of amplification of the company staff creativity.

Conceived at the begin by William Gordon, it was used for improvement of technical creativity.

The methodology was named after the name of his inventor being known as the Gordon

Technique. [4]

The essence of this method consists of the following: at the beginning none of the group

members except the leader, not know what is the real aspect of the problem that need to solve.

Leader launch the keyword to be used as subject for discussion. From this word the discussion

must be redirected into another area of applicability than those who was initially discussed. This

stratagem was adopted for improvements of the ideas qualities not limiting the area of

discussion.

The synectics is used by a group composed, usually, by five-eight persons, having diverse

orientation. Implementation of the synectics simulate the spontaneous creative processes in this

way: [4]

- Transform the unknown in known through rigorous definition, analysis and,

eventually, reshaping of the problem subjected to the innovative process;

- Assure the removal of the persons implicated by subject, in time;

- Assure the generation of new ideas regarding the tackled problem.

The Delbecq method or the technique of nominal groups. This method was developed by

two researchers from Wisconsin University – Andre Delbecq and Van de Ven. This method is

based on some elements of Brainstorming and is performed in the following stages:

- Individuals are thinking separately about the problem given to solve.

- The leader of the group records all ideas that was emitted;

- The leader launch a discussion to clarify ideas emitted previous and record again

all new ideas ;

- After that each member of the group are asking to pronounce on the ideas that

seems for him to be interesting and related to problem;

Through appreciation and rotating of some of the ideas, their volume are decreased

gradually. Next step is to discuss initial vote with the aim to have a good clearance of the ideas.

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And finally is realized the final vote that is over in a definitive decision of the group related with

general accepted by the group solution.

Successful implementation of the Delbecq method assume the ensuring of several

premises. Therefore is necessary that participants have some knowledge’s about the tackled

problem and to be motivated to participate to the solving. The tackled problem requires to be

neither vast neither tighten. Participants are not allowed to make appreciations except the

periods established for this. And finally the application af the problem are made under the

coordination of a moderator. Is possible to use the Delbecq method in solving of all problems

that company confront, with an plus of efficiency in the cases of essential aspects that imply

solutions on short on long/strategic term. [4]

The advantages of the use of Delbecq method consists in contribution to discovering of

new solutions for problems precisely defined by managers in that domain; harness in a greater

extent the creative potential of a part of company staff; contributes to getting used managers to

report their performances to a perfect situation or ideal that in time will influence the results

obtained by the firm.

The main limit of this method consist in the difficulty to precisely define the difference

between the real and ideal situation in the tackled domain. This limitation is obvious, especially

on the first application of the method, till is gained some experience and kno-how

This method of creativity stimulation of the company staff can be used to solve diverse

functional and perspective problems, but is recommended to be used in the domain of innovation

of products and technology, commercialization of the products, etc.

The Delphi Method.Isa intuitive method elaborated by specialist O. Helmer. The invention

of this method respond to need of estimation of some future actions of the firm in business

domain

The Delphi method consist in reiterated consultation of some functional specialists /experts

in various domains and assume following steps: [4]

a) Establishing the theme the will tackled with the aim of specialists.

b) Setting a list with the specialists that will be investigated, (is recommended a

sample of about 8-4000 persons);

c) Setting the responsible that lead the investigation and mediates the

communication ensuring the anonymity of opinions.

d) Composition of the questionnaire of the investigation that is send to all specialists

from the list;

e) Received answers are processed and analyzed;

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f) Is elaborated a new questionnaire, that address to the same specialists, with the

request to precise their opinions about the median and divergent highlighted values at the

level of the group. The incentive role of this questionnaire is consist in fact that each

participant related simultaneous to other opinions and try to argument individual opinions

related to the tackled problem ;

It can be organized up to 4 rounds of knowing the specialists opinion, pursuing the degree

of convergence of the opinions and to obtain a final solution.

The managers of an enterprise can apply this method to make essential decisions related to

orientation of theirs business, introduction of new technologies, destination of investments, etc.,

applying to specialist the techniques of stimulation of creativity. [4]

The main factors that condition the quality of decisional released opinions following the

use Delphi method are follows:

- Realism and clarity of the representation of the problem under investigation and

questionnaire formulation;

- The componence quality of the group of the experts;

- The period in which the specialists must answer to questionnaires and to send the

answers;

- Motivation of specialist in formulating the answers to questionnaires;

- The discernment spirit and capacity of the synthesis of the organizing of Delphi

method use.

Valorization of the Delphi method results on the level of decision depends in extent by the

potential of the managerial organisms of the firm and the trust that is manifested to the results of

the investigation. Rational used, Delphi method can contribute to rationalization of the decisional

process, especially, in the phase of problem definition, objective settlement and decisional

objectives development.

The use of Delphi method have many advantages: recovery, in the firm inters, of the

competence by a significant proportion of the better specialists in that domain; the profound

analysis of the major problems finalized with the establishing of some conclusion, solutions for

the firm; prefiguration of the solutions for the long, medium and perspective term problems,

particularly difficult with classical methods and approach. [4]

Concomitant, this method have some limits: the company effort(in form of money and

time) is appreciable; is difficult obtain of a major implication of the contacted specialists.

However, the Delphi method can be utilized with a great success in the companies, mostly from

innovative products and commercial domains.

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In this paragraph of the study, was searched the most important method of stimulation of

the creativity of the company staff, and namely – Brainstorming(“ideas storm ”), synectics

(Gordon technique), Delbeq method(nominal groups method) and the Delphi method. No doubt

that the creative process is the essential factor that maintain in competition any firm. The ideas

comes from people, employs, and also from outside – experts, consumers, etc. Therefore,

creative people/ entrepreneurs can bring great advantages for the firm, but at the same time they

create difficulties, be knowing that fact that the ideas implementation means change, and change

brings many organizational obstacles. [4]

If the staff creativity stimulation methods were focused on the determination of the

principle of the creative ideas generation by employs, than the general methods of management

represent some concrete modalities of implementing of them in the enterprise. And that’s

because the materialization of an business creative idea require adequate organizational form. In

the following we’ll present the main general methods of management, advisable for the

materialization of new business ideas and institutionalization of the innovational spirit in the

company.

Management through projects. This method have following steps: [4]

Step I, definition of the project, in which the objective and work content is formulating, are

highlighted the activities that will realized in this project and are shaped the problems related to

organization, responsibilities, time, costs and stocks.

Step II, managerial organization, in which is chosen the project leader, is established the

form of organizational structure in which the project will realized.

Step III, the achievement of the project and the maintaining of the internal balance (that

includes following phases: planning , resources allocation, attempts, experiments, executions,

follow and the control of each subtask).

Step IV, the project liquidation and team dissolution, I which is drawn the documentation

related to results and financial report, the and terms costs are compared and are established the

project staff appreciation sheets.

In this way, the management through projects represent a system of management with the

limited time of action (maximum few years), designed for solving well-shaped, accurate, with a

pronounced innovative character problems, that require the aid of diverse specialists, from

different organizational subdivisions, temporary integrated in an independent organizational

network.

Management through objectives. This method is based on the rigorous determination of the

objectives up to executants level, that participates direct to establish them. The method consists

on the close correlation of the rewards and sanctions with the level of established objectives.

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Also, the method is based on the individualization of the budgets and expenditures on the main

organizational subdivisions and especially in the product centers.

The researcher Gh. Moldoveanu in his book “Organizational analysis “ differentiate a

derivative from the methodology through objectives, and namely-management through interests

(MBI). The management through interests represent a planning strategy more flexibly than the

management through objectives (MBO), that tend to recognize the interests in complex actions.

(Table 1.5) [4]

Table 1.5 Comparative analysis of MBO and MBI

MBO MBI

Decision making on a hierarchical structure

based on authority and responsibility

Decision making in a flexible Network of

personal interaction

Integration on vertical and/or centralized

communication lines in the process of key-

decision making

Integration on intensive communication in

the network with multiply directions

Is applying in cases of clearly defined problems

for what the solution are proposed.

Is applying for partial defined problems for

which solutions are invented

Derived policies from an comprehensive

analysis and conducted to an ”optimal” solution

Derived policies from an partial analysis and

conducted to an efficient “acceptable”

solution for the interest of stakeholders

Work relationships determined by the

hierarchical position

Work relationships determined by the interest

for problem solving

Communication and evaluation through rigorous

normative procedures.

Communication and evaluation in an open

evolutionary system

Focused on product management.Thenecessity of the utilization of this method is imposed

by the shortening of product life, generated by some factors: discoveries, inventions, etc. The

method is characterized , mainly, in the way that product manager assure the organization,

coordination and global administration of all the activities regarding the product from the

designing to manufacturing. The use of focused on product management imply creation in the

organizational structure of new function: the manager of product or a group of product, which

have the highest weight in the value of the product good and the profit.

Management trough results.This method represent a modality to assure the development

and the evaluation of activities of the profit center, according to achieve the objectives on the

long or short terms and the concordance of them with the general objectives of the firm. This

method allow the profit center manager to focus his efforts that need especially his attention. The

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manager fix the objectives compare the obtained results, he can alert when the deviation are

produced and intervenes with corrective and redressing measures.

Management through budgets.This managerial method represent a management system

that assure the realization of managerial process, and also the evaluation of activities of the firm

and his main processual and structural components with the aid of budgets.

In essence, the budget represent the instrument with whom aid manager define and

achieves decision, he assume responsibilities for the efficient use of the resources, control the

level of income, expenditures and profits, also evaluate the innovation. The management through

budgets use the pecuniary standards to real express of the labor, spread the costs and localize the

expenditures. Through all this he emphasize the economical finality of the enterprise, mobilizing

the efforts to enhance the economic efficiency and the innovational in the company.

Management on the system basis.This method represent the mode in which is unfolds the

managerial process to operate the human factors, capable to create and innovate, that enterprise

have, in order to obtain results. Management on the system basis suppose the integration of

human factor in a system framework, simplification of the managerial process and the clear

structuration of this, as well as the regulation, analysis, engineering and the management af the

systems in order to refresh the innovational process in the company.

Especially, is needed to highlight the opportunity of the use of participative management

in the company, like an essential condition for stimulate the creativity innovation implementing

spirit.

Participative management consist of the methodical organization of the activity of each

employ an the base of a strong determinant motivation. preponderant, by identification of the

development necessities of each component with the objectives that the manager purpose him.

The aim of the participative management consist of the stimulation of the initiative, creativity

and the aptitudes of the employs for changes and progress in the benefit of the company an their

own. [3,4,13]

The method is realized by a manager that distribute to his collaborators, objectives to

achieve but not task to execute, giving in this way the possibility to use for the realization tools

that they consider it necessary. The collaborators have the possibility to manifest the initiative

and the creativity, and like an main organizational process is used decision delegation.

To assure the efficiency of the method is necessary that the objectives to be reported to

well definedemploys and groups of employs, incorporated in a coherent structure that have

defined means. For this will be used adequate organizational documents: organigram, function

description and organizational function regulations . The participative management imply the

promotion on a large scale of participative procedures, which aim is to organize the complex

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communications of the interaction and adjustments between the employs. These procedures

targets to fix the objectives and yearly budgets and theirs realization, the evaluation of

individual performances and decision making, selecting, employment and framing, studies and

decisions on structural modifications, al having the aim to institutionalize the innovative spirit in

the company.

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Chapter II THEORETICAL CONCEPTS TOWARDS AGRICULTURAL

EDUCATIONAL SYSTEM IN REPUBLIC OF MOLDOVA

2.1.General characteristics of the education system in Moldova

The agricultural education system of Moldova consists basically of:

the State Agricultural University of Moldova (SAUM),

eight agricultural colleges out of a total of 46 colleges,

some 20 vocational schools (VET) that concentrate on agricultural subjects out of a

total of 70 VET schools.

Many of the VET schools are very small and should be consolidated into a smaller number

that can be better managed and equipped. SAUM and the eight agricultural colleges are under

MAFI and the Ministry of Education, (ME), whereas the VETs are not component parts of the

agricultural education system and depend exclusively on the ME.

With Japanese support, a National Training Center in the Field of Mechanization was

created in Chisinau. Its purpose is to train farmers and technicians in the maintenance and repair

of the imported agricultural equipment, especially tractors. It is striking that of the total number

of VET students; only about seven percent (7%) are taking agricultural courses, although

agriculture constitutes approximately 40% of the total employment in Moldova. [10]

By international comparison, Moldova’s expenditures for overall education (primary,

secondary and tertiary schools) in 2012 were relatively high.

Table 2.1.The analysis of expenditures in education,%

Country government expenditures

on education as %of total

government expenditure

government

expenditures on

education as % of GDP

government

expenditures per

primary student as %

of GDP per capita

2011 2012 2011 2012 2011 2012

Moldova 22.0 20.8 8.6 8.3 41.5 39.3

Romanian 8.3 8.4 3.1 3.0 11.8 11.8

Ukraine 13.5 13.7 6.2 6.7 28.1 32.2

France 9.9 9.7 5.5 5.5 17.9 18.4

Germany 11.0 - 4.8 - 17.4 -

Source: elaborated by the author from http://data.worldbank.org/indicator/

Moldova’s government expenditures on education as a percentage of GDP were 8.3%,

which is higher than in Romania, Turkey, Ukraine or Germany.

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In terms of government expenditures on education as a percentage of total government

expenditure, Moldova spent 22.0% in 2011 and 20.8% in 2012. This is higher than in

neighboring countries such as Romania or the Ukraine.

In terms of government expenditures per primary student as a percentage of GDP per

capita, Moldova spent 41.5% in 2011 and 39.3% in 2012. This is higher than in neighboring

countries such as Romania, Ukraine or France and Germany.

The resources available to SAUM are inadequate and put it in a difficult position of having

to limit capital expenditures in order to be able to pay moderately attractive salaries. This will

lead to longer term problems as the teaching equipment, buildings and dormitories deteriorate

and the institution becomes less attractive in the eyes of potential students. Unfortunately, all the

University in the past could do was to try to increase the number of extra-budgetary (contract)

students. In the case of SAUM, there was no capacity problem for such a student increase as

there is enough space. However, this forces the University to think in terms of throughput

(quantity of students) instead of in terms of educational quality. All of above raises the issue of

the degree of financial and academic autonomy of SAUM and the overall university system. [10]

The VET teaching profession has lost its attraction and there are few young teachers. A

typical teacher working in the VET system is around 50 years old; and has not attended any in-

service training over the last 15 years.Concerning the teaching staff of SAUM, 282 people, the

situation is much better. Although the salaries being paid are also low, the University has been

able to attract younger teachers, especially for its economics and law department. 50% of its

teaching staff is under 40 years of age and nearly 30% are under 30 years. In terms of

qualifications, in 2015, of the 282 teaching staff, 139 have a PhD and 28 are Dr. Habilitats.

All of the Agricultural Colleges and SAUM have substantial landholdings, which they use

inter alia for teaching purposes. These land-holdings are managed like farms and allow the

colleges and SAUM to generate extra-budgetary resources. Other assets, such as school

buildings, student dormitories, laboratories and equipment, and teaching materials are in most

cases in need of substantial repairs or need to be replaced completely. [10]

The agricultural colleges have different curricula and put emphasis on different subjects.

Their course offerings cover subjects from general agriculture, to bookkeeping, to technical

subjects such as food technology and viticulture. Most of these courses have not been updated

for a long time and do not respond to the needs of the evolving labor market. Their graduates

either enter the labor market or continue to university. SAUM offers courses in 23 specialties

from traditional agricultural technical subjects such as agronomy, animal sciences and

horticulture to economics and law. It offers degrees as Bachelors, Masters and PhD.

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One of the basic weaknesses of the Moldovan VET education and training system is that it

is not practical enough and not well connected with the post-independence labor market.

Therefore, its graduates fail to meet the expectations of employers. Twenty five years after

independence and the creation of some 500,000 small-holder producers, there is still no

curriculum specifically developed and used countrywide to train future “farmers” in the

European sense of the word, i.e. family farmers that operate land inherited from their parents and

which they work as a family. Consequently, the young people that are trained in agricultural

VET schools do not receive the kind of training that would assist them in becoming successful

polyvalent “farmers” as small-scale entrepreneurs. The graduates of SAUM seem to be of

acceptable quality, but have a difficult time to find employment corresponding to their education,

as the agricultural sector offers too few employment opportunities. [10]

Unofficially, a number of VET schools collaborate with VET schools in Romania and use

their curricula and training materials. But otherwise, the VET schools don’t have international

linkages, other than through donor funded projects.

The situation at SAUM is somewhat better. It participates in international programs of

cooperation such as TEMPUS and has cooperation agreements with several European and one

American university. However, visa restrictions by EC countries risk to severely limiting these

indispensable teacher and student exchange programs. [10]

To better understand the education system in general and the agricultural education system

in particular, it is important to keep in mind key demographic data. While there was a growth in

the 16-18 and 18-23 age cohorts until 2004, but we see a decrease in both cohorts that will

continue until 2014. This decrease is especially pronounced in the 16-18 age cohorts, which is

the target population for the vocational education system (VET). It raises questions about how

many VET schools will be needed in the future and strongly suggests that the system needs to be

rationalized. However, these data do not take account of those within the age cohorts who have

emigrated to work abroad. [10]

Table 2.2. Population projection 1990 - 2014

Age Group 1999 2004 2009 2014

1-6 285,400 242,300 258,500 256.000

7-10 247,700 185,000 156,000 170,000

11-15 364,000 298,900 223,500 194,900

16-18 204,200 216,000 167,800 125,000

19-23 307,200 339,800 334,800 257,100

Source: Institutional Analysis of ANOFAM (Moldovan Labor Market Authority),

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Compulsory education begins at age 6 and ends at age 15. Primary education lasts for

four years. Secondary schooling covers seven or eight years.

It is divided into five years of lower secondary school followed either by two years of

upper secondary school certified by the ‘Atestat de studiimedii de culturagenerala’, or by three

years upper secondary school certified by the ‘Diploma de Bacalaureat’.

On completion of compulsory education students can opt for general education in the

lyceums (grades 10 – 12) which offers pathways to universities or professional colleges (such as

the eight agricultural colleges), or professional schools (VET schools) offering one, two, or three

year vocational programs from which there can be no progression to further or higher education.

Vocational schools in Moldova are called occupational schools (one year educations) and

professional schools (approximately 3 years education). [10]

The Colleges can be considered to be part of the VET system, although their graduates

who got the Bacalaureat can go on to higher education, i.e. universities.

Those who do not have the Bacalaureat can only go to Universities (specialties) with a

profile similar to their diploma.

Table 2.3. Agricultural schools and students 2015

number of schools number of

students

Student/school ratio

VET schools agriculture 14 (estimate) 578 41,3

Agricultural Colleges 8 3421 427,6

SAUM 1 4603

Source:http://data.worldbank.org/indicator, [10]

It is striking that of the total number of VET students, only about seven percent (7%) are

taking agricultural courses, although agriculture constitutes approximately 40% of the total

employment in Moldova. The others are taking courses in: light industry (35%), heavy industry

(12%), construction (23%), hotel and restaurants (14%), trade, administration and services (9%).

The vocational agricultural colleges are located in different parts of the country and have a

long history. As their names indicate, they concentrate in their teaching on different subjects.

The eight vocational agricultural colleges are:

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Table 2.4. Information on Agricultural Colleges

No. of

students

Government

Budget in 2015

(in mil. MDL)1

Available

Land

(ha)

Grinauti Agro-industrial College 302 5824,5 102

Riscani Agro-industrial College 486 8933,9 220,9

Soroca Technical Agricultural College 475 7545,1 89,86

Taul Agricultural College 428 7907,00 405,5

BratuseniZootechnical and Veterinary Medicine

College 392 7195,2 1600

Ungheni Agro-industrial College 451 9024,0 49,62

Svetli Technical Agricultural College 474 9128.6 400

Chisinau National Viticulture and Vinification

College 413 8314,1 1457

Total No. of students 3421 63872,4 3457

Source: http://data.worldbank.org/indicator, Ministry of Agriculture and Food Industry of

Moldova

1The government budget is for the schools and for dormitories

Initial VET is delivered in 70 professional schools offering training in 90 profiles in one,

two and three-year programs. General subjects are excluded from the curriculum and therefore,

there is no pathway to further or higher education. There are currently approximately 23,000

trainees enrolled in the system.

The State Agricultural University of Moldova (SAUM) is a well-recognized educational

institution with a long and prestigious history. It is the only agricultural higher education

institution in the country and has trained most of Moldova’s agricultural professionals. It has 8

faculties: Economic, Accounting, Agronomy, Horticulture, Livestock and Biotechnologies,

Veterinary Medicine, Agricultural Engineering and Automobilesand, Cadastre and Law. SAUM

offers its students Bachelor (4 years) and Masters/PhD degree programs. SAUM is located just

outside the city of Chisinau and has 10 buildings with study rooms, 11 residential blocks for

students, a scientific library, a linguistic centre, a computer centre, a printing house, several

laboratories, sports gyms, a stadium, 3 experimental stations with and area of 2800 hectares.

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Table2.5.Total number of SAUM students (2009 – 2015)

2009 2010 2011 2012 2013 2014 2015

Total Number of Students,

including 6665 6502 6207 6076 5722 5111 4603

-Full-time 3989 3988 3546 3241 2829 2463 2280

-Part-time 2676 2514 2661 2834 2893 2648 2323

BudgetaryStudents 2051 2084 2008 1923 1824 1783 1593

Extra-budgetaryStudents 4614 4418 4199 4153 3898 3328 3010

Source: State Agrarian University of Moldova

In 2015, SAUM has a student population of 4,603. Of these students, 2,280 are full-time

students and 2,323 are part-time students. As the table above shows, the number of students has

reduction since 2009. What is most remarkable is the large increase over time of extra-budgetary

(contractual) students, i.e., students that receive no or limited scholarships and have to pay most

of the school fees from their own resources. From 2009 to 2015, while the number of budgetary

students declined and is around 1,593, the number of extra-budgetary (contractual) students also

declinedby 35%! During the same period, the number of part-time students has increased faster

than that of full-time students and in 2015, full-time and part-time students represent roughly

half and half of the total student population. Both trends show extraordinary efforts by SAUM to

attract more students to generate additional income and thereby improve its financial situation.

The National Training Center in the Field of Mechanization in Chisinau. This

institution is a part of the “Increase of Food Production Project 2KR” in Moldova, funded by the

Japanese Government. Establishment of this training center became a necessity in order to

maintain and be able to repair the agricultural equipment and machinery being brought into the

country with 2KR funds. Its purpose is to train farmers and technicians in the maintenance and

repair of the imported equipment. This training center is all the more crucial as there is a serious

lack of training facilities in this field. [10]

The only teaching institutions in Moldova that train specialists in the field of

mechanization are SAUM which prepares mechanical engineers and the four agricultural

colleges in Svetlii, Soroca, Chisinau and Ungheni which prepare operators of machinery.

However, these five teaching institutions are endowed with very old agricultural machinery and

stands or do not have proper teaching facilities and therefore are not able to prepare good

specialist.

From 2010 to 2015, the total budget for agricultural colleges has evolved as follows:

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Table 2.6. Budget of Agricultural Colleges from 2010 – 2015 (thousand MDL)

Year 2010 2011 2012 2013 2014 2015

Gov. budget 41406,5 44435,2 53669,8 60736,9 62782,8 63872,4

Extra-budget 13428,18 16063,52 18334,74 18360,76 19794,5 20128,5

Total budget 54834,68 60498,72 72004,54 79097,66 82577,3 84000.9

Source: Ministry of Agriculture and Food Industry of Moldova

From 2010 – 2015, the total budget for the Agricultural Colleges increased from MDL 54,8

Mio. to MDL 84,0 Mio., or a 53,3% increase. During the same period, the government’s budget

increased by a multiple of 1.6, whereas the extra-budgetary resources mobilized by the Colleges

themselves increased by a factor of 1,5. While in 2010, the government budget covered 75,5% of

the total budget of the Colleges, by 2015, governments contribution has decreased to 76%. This

shows an effort on the part of the Colleges to mobilize more resources on their own.

However, government contributions and the share of extra-budgetary resources from own

resources vary widely from College to College. At one extreme is the Veterinary College of

Bratuseni which in 2015 financed 15.5% of its overall budget from its own resources and on the

other, are the Technical Agricultural College of Soroca 13.4 and the Agro-Industrial college of

Grinauti, 11.3 which finance less than of their total budget from their own resources.

Overall, in 2015, the agricultural colleges spend annually on average 24.000 MDL per

student. This amount is 25% less than the amount per student spent by the Agricultural

University, which in 2015 spend MDL 32,000per conv. student.

The total budget of SAUM over the same period from 2010 to 2015 has evolved as

follows:

Table 2.7. Budget of SAUM, 2010 – 2015 (thousand MDL)

2010 2011 2012 2013 2014 2015

Budgetary incomes 40408,0 40976,3 45200,2 52072,0 55739,1 60329,9

Extra-budgetary

incomes 22175,1 23985,2 22809,4 24972,8 22534,4 21354,2

TOTAL incomes 62583,1 64961,5 6809,6 77044,8 78273,5 81684,1

Source: State Agrarian University of Moldova

Over the period from2010 – 2015, the total budget of SAUM increased from MDL 62,6

Mio. to MDL 81,7 Mio., or 30,5% increased. Government budgetary allocations and extra-

budgetary resources generated by the University evolved in a similar fashion and are roughly

half and half. The number of contract students reduced from 4614 persons in 2009 to about 3010

in 2015. Also the number of budgetary students dropped from 2051 to only 1593 over the same

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period. Thus the number of contract students in 2015 is more than 2,2 times higher than that of

budgetary students. The fee for contract students varies from MDL 3000 – 7000, depending on

the specialty. The fee for part-time students is 40% of the fee for full time students. These

figures show that SAUM has made extraordinary efforts to attract the maximum number of

contract students it could in order to generate addition resources of its own. In 2015, SAUM had

4603 conv. students and spent MDL 10,370 per student. As mentioned above, this figure is lower

than the amount spent by Colleges per college student, and needs to be analyzed in greater detail

based on more detailed cost figures.

In terms of usage of funds, in 2015, of the total expenditures of SAUM (MDL 25,4 Milo),

recurrent expenditures were MDL 44.3 Mio (91%) .and capital expenditures were MDL 4.5 Mio.

(9%). Salary expenditures for the same year represented 41 % of total recurrent expenditures.

They were financed from budgetary resources (MDL 19,9 Mio.) and extra-budgetary resources

(MDL 5,5 Mio.). The evolution of the funding of salary expenditures over the period 2010 –

2015 is shown in the Table 2.7.below.

Table 2.8. SAUM salary expenditures from 2010 -2015 (‘000 MDL)

2010 2011 2012 2013 2014 2015

Budget 18212,2 21939,3 23022,7 24787,3 25181,4 19906,6

Extra-budget 8653,7 7091,5 6709,3 6344,3 4604,7 5573,0

Total 26865,9 29030,8 29732,0 31131,6 29786,1 25479,6

Source: State Agrarian University of Moldova

The resources available to SAUM are inadequate and put it in a difficult position, where

it has to limit capital expenditures in order to be able to pay moderately attractive salaries. This

will lead to longer term problems as the teaching equipment, buildings and dormitories

deteriorate and the institution becomes less attractive in the eyes of potential students.

Unfortunately, all the University in the past could do was to try to increase the number of extra-

budgetary (contract) students. In the case of SAUM, there was no capacity problem for such a

student increase as there is enough space, but this forces the University to think in terms of

throughput (quantity of students) and not in terms of educational quality. [10]

However, even this option of trying to increase the intake of students is no longer possible

because of decisions taken by the government two years ago: a) to limit the number of extra-

budgetary students that the University is allowed to take in, and b) to introduce quotas per

“specialty”. Since the government allocates more quotas to technical “specialties” such as

agronomy, horticulture, veterinary sciences, etc. than students are interested in, it means that

SAUM loses budgetary student places. Another option of increasing the income of the

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University through charging higher fees that reflect the true costs of the services provided (case

of student dormitories) is equally not allowed by government. [10]

All the foregoing raises the issue of the degree of financial and academic autonomy of the

University. For SAUM to be able to manage its affairs responsibly it should be given more

freedom in the use of extra-budgetary resources and in the number of contract students it can

admit.

In addition to what the university can do by itself, if the government is serious about

supporting the agriculture of tomorrow, it is indispensable to provide additional resources to

SAUM. SAUM has a central and unique role to play in preparing well trained researchers and

agricultural professionals. To do this, SAUM needs to be put in a financial position that allows it

to compete for bright students with other more prestigious universities in Chisinau. This can only

happen if its campus as such is attractive and provides all the necessary amenities that students

expect.

SAUM offers courses in the following 24 specialties:

1. Agronomy

2. Acquisition

3. Ecology

4. Tourism

5. Horticulture

6. Plant protection

7. Forestry (sylviculture) and public

gardens

8. Viticulture and wine-making

9. General economy

10. Business and administration

11. Marketing and logistics

12. Accounting

13. Finance and banks

14. Veterinary medicine

15. Agriculture mechanization

16. Agriculture electrification

17.Transport auto

18. Environment engineering

19. Cadastre and territory organization

20. Immobile (land) valuation

21. Patrimonial law (property and land

rights)

22. Animal husbandry

23. Agricultural biotechnologies

24.Thesafetyofagrofoodproducts

From SAUM, in 2015, 1222 students graduated (Licence – 999, Masters - 223; Licence:

Full – time budgetary - 341, Full-time extra-budgetary 143; Part – time extra-budgetary – 515.

Masters: Full – time budgetary - 111, Full-time extra-budgetary -112).

In the same year, 14 received a PhD, and 2 became Dr. Habilitat.

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2.9. The distribution of students by faculty in 2015

Faculty Number of students

Economics 837

Horticulture 743

Agronomy 449

Cadastre and Law 758

Agricultural Engineering and Transport 952

Livestock and biotechnologies 272

Veterinary Medicine 253

Accounting 339

TOTAL 4603

Source: State Agrarian University of Moldova

It is noteworthy, that over the last several years, at SAUM most students graduated from

the economics faculty, while the number of graduates in the technical fields (agronomy,

horticulture, animal husbandry and veterinary sciences) is low and shows a declining trend.

Over the last 2 years, Government has tried to influence what subjects prospective students

at SAUM should choose. It has fixed the number of students that receive budgetary support by

faculty and has allocated more stipends for students willing to study technical subjects such as

animal sciences or agronomy, rather than economics.

The Government has even gone further and decided on the number of extra-budgetary

students that SAUM is allowed to accept. However, these efforts have had limited impact and it

is questionable whether such a policy can succeed. [10]

The basic problem in attracting students to agriculture is that agriculture as an industry is

not very profitable and unable to compete with the salaries paid in other sectors. Concerning the

distribution of students by faculty, market principles should be allowed to work and students

should be free to choose their subjects. [10]

Also, SAUM should be allowed to fix the number of extra-budgetary students that it

accepts each year, since the University knows best what its possibilities are.

A result of these measures, we see that in 2015 most graduates are from the Faculty of

Agricultural Engineering and Transport.

But faculty of Horticulture, also has increased the number of graduates, in 2015 they

reached 743.

For the eight Agricultural Colleges, the specializations are as follows:

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Table 2.10. Specializations of Agricultural Colleges

Technical Agriculture

college from Soroca City

1. Household machines and equipment

2. Electrification of Agriculture

3. Electromecanics

4. Mecanization of agriculture

5. Technical maintenance, diagnosis and repair the vehicles.

Agro industrial College

from Riscani City

1. Accountancy

2. The Equipment of food industry machinery

3. The cosmetics and medical technology

4. The Equipment of food industry machinery

5. Commodity research

6. Tourism

Animal husbandry and

Medicine Veterinary

College from Bratuşeni

Village

1. Veterinary medicine

2. Commodity research

3. Public procurement

Agricultural College

from Ţaul

1. Agronomy

2. Horticulture and Viticulture

3. Forestry and public gardens

4. Preservation technology of fruitsand vegetables

5. Accountancy

6. Informatics

Agro industrial College

from Grinăuţi

1. Technology of products of public alimentation;

2. Technology of meat and meat products;

3. Technology of milk and milky products;

4. Agriculture mechanization

Technical Agriculture

College from Svetlii

village

1. Mechanization of agriculture

2. Agronomy

3. Automobile transport

4. Accountancy

National College of

Viticulture and Wine-

Making culture from

Chisinau

1. Tehnology of Wine and Products obtained trought

Fermentation

2. Machines and Aparatus in food Industry

3. Tehnology of Storing Fruits and Vegetables

4. Horticulture and Viticulture

5. Tourism

Ungheni Agro-industrial

College

1. Agronomy,

2. The mechanization of agriculture,

3. Accountancy, commodity,

4. The technology of processing and preserving fruits and

vegetables.

Technical Agriculture

college from Soroca City

1. General agriculture (crop production)

2. Agriculture electrification

3. Mechanization in agriculture

Agro industrial College

from Riscani City

1. Bookkeeping

2. Technologies of processing sugar beet

3. Medical and cosmetic plants technologies

4. Machines and units in food industry

5. Science of commodities

Animal husbandry and

Medicine Veterinary

1. Growing and selling technology of food products

2. Marketing

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College from Bratuşeni

Village

3. Veterinarian Medicine

Agricultural College

from Ţaul

1.Marketing

2.Agricultural Technologies

3. Agro-Ecology

Agro industrial College

from Grinăuţi

1. Technology of meet and meet products processing

2. Technology of milk and milk products processing

3. Science of commodities

4. Mechanization in Agriculture

Technical Agriculture

College from Svetlii

village

1. Agronomist

2. Mechanic- operator

National College of

Viticulture and Wine-

Making culture from

Chisinau

1. Horticulture. Viticulture.

2. Storage and processing technologies of fruits and vegetables

3. Technologies of vine and products obtained by fermentation

4. Machines and units in the food processing industry

Source: Ministry of Agriculture and Food Industry of Moldova

2.2.Analyze scientific and innovative infrastructure in Moldova

Innovational Infrastructure represents all the organizations that contribute to the scientific

and innovation activities, namely the:

Academy of Science,

financial institutions,

agencies in the field of business support,

business incubators,

science and technology parks,

enterprises,

science and innovation organizations, etc.

Entities of innovation infrastructure which are at the crossroad of science and business

environment represent one of the key factors that determine the success of the national economy.

Hence, they act as a bridge that facilitates the communication between business and scientific

community.

The Agency of Innovation and Technology Transfer (AITT) is a mediator between these 2

structures: scientific and business community. She has the goal of bolstering the creation and

development of science and technology parks and Innovation Incubators, as well as allowing

financial support and funding the annual development projects. [3,6,11]

At the moment, in the Republic of Moldova there are 3 Science and Technology Parks:

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Science and Technology Park “Academica”. It was the first innovation infrastructure

created in our country. Domain: universal.

Science and Technology Park “Micronanoteh”. It was created in 2009 at the proposal of

science and technology cluster ”Micronanoteh”. Domain: microelectronics and

nanotechnologies.

Science and Technology Park (SPT) Inagro. It was created in 2008 at suggestion of

scientific and technological cluster. SPT domain: intensive and organic farming;

And, also in Moldova are 8 Innovation Incubators:

Innovational Incubator “Inovatorul”. It was created in 2007 at the proposal of science and

technology cluster “Academica”. Domain: universal

Innovational Incubator “Politehnica”. Created in 2011. Domain: universal.

Innovational Incubator “Innocenter”. It was created in 2012 at the proposal of science

and technology cluster “InnoClaster”.

Innovational Incubator “Iventica-USM”. Created in 2012 at the proposal of Incubation

cluster of innovational enterprise.

Innovational Incubator “Nord”. It was created in 2012 at the proposal of both, incubation

cluster of innovational enterprise “AntreprenorulInovativ” and the innovation cluster

“Nord”.

Innovational Incubator “AntreprenorulInovativ”. Created in 2013.

InnovationalIncubator”IT4BA” (IT Incubator for Business Application ). It was created

in 2015 in the IT field.

Moldovan-Lithuanian InnovationalIncubator ”Media Garaj”. It was created at the

suggestion of the cluster in 2014 and includes the collaboration with Lithuanian

organizations.

In order to expand the network of science and technology parks and innovation incubators,

AITT is welcoming the initiatives of creation new science parks and innovational incubators.

Science and Technology Park (STP) “ACADEMICA” is one of the first innovational

structure created in Moldova.The activities of this park are in the following domains: renewable

energy, saving technology of nanotechnology, informatics, food security, etc.At the moment, the

STP “Academica” is realizing innovative projects in diverse domains and has 13 residents.

In April 2009, the Supreme Court for Science and Technology Development adopted the

act no. 62 regarding the creation of Science and Technology Park (STP) “MICRONANOTEH”.

The STP “Micronanoteh” is developing its activities in microelectronic and nanotechnology

within the Institute for Scientific Research “ELIRI” which has a total surface of 320 m2.

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The activities of residents of the Science and Technology Park “Micronanoteh” are in the

following domains: nanotechnology, informational technology, technological and electronic

equipment for producing micro-nanostructures, etc.

At the moment, 3 residents are realizing innovative projects in diverse domains within the

STP “Micronanoteh”.

In July 2008, the Supreme Council for Science and Technology Development adopted the

Decision no. 155 regarding the creation of Science and Technology Park “INAGRO”. The

production infrastructure of this park includes a complex of buildings located on an area of over

15 hectares, an agricultural land of 92.5 hectares, as well as the subsidiary of Scientific Complex

of Production located in Cahul, Moldova.

The activities of residents of Science and Technology Park “Inagro” are in the following

domains: organic farming, the implementation of new technologies for agricultural production

products and for storage and freezing fresh fruits and vegetables; the implementation of

conservation and drying technologies, the implementation of new forms of marketing and selling

the agricultural production on the domestic and external market.

At the moment, the STP “Inagro” is realizing innovative projects in agricultural and food

industry domain and has 13 residents.

At the moment, in Republic of Moldova, the activity of business incubators is managed by

the following normative acts:

Code on science and innovation nr.259-XV from 15th of July, 2004;

Partnership Agreement between the Government and the Academy of Sciences of

Moldova (2014);

Law on Science and Technology Parks and Innovation Incubators (2007);

Law on state policy regarding innovation and technology transfer nr. 289 (2003)

According to national legislation, the science and technology cluster is a group of legal

entities and individuals association constituted under contract between science and innovation

organizations accredited and /or accredited higher education institutions, other non-profit

organizations, on the one hand and businesses, local government authorities, associations of

employers or professional associations, individuals, financial institutions, international

organizations, local and foreign investors, on the other hand, for the purposes of scientific

research, education and technology transfer of scientific results and innovations, their recovery

through economic activities.Despite the incomplete legislative provisions regarding clusters

activity, in order to create scientific-technological parks (STP) and innovation incubators (II),

were set up 10 scientific-technological clusters, whose role is to identify the needs of creation

STP:

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Scientific and technological Cluster "Academica", whose members have concluded an

Association Agreement in 2007. At this Cluster proposals, were created two entities of

innovative infrastructure: STP "Academica" and II "Inovatorul". Theclusterisformedby

19 partners.

Scientific and technological cluster in ecology and intensive agriculture, created in

2008, by association of 4 partners. Accordingtotheclusterproposalwascreated STP

"Inagro".

Scientific and technological cluster in microelectronics and nanotechnologies created

in 2008, by association of 2 partners. According to the proposal of this cluster was

created STP "Micronanoteh".

Educational and scientific cluster "UnivERSCIENCE", created in 2011 following an

agreement between 20 partners. At the proposal of it, also in 2011, was created II

"Universcience” within the University of Academy of Sciences.

Cluster of entrepreneurial innovation incubators "AntreprenorulInovativ" and

"Nord" created in 2012. The activity of the cluster is conducted in the north region of

the country. The cluster was created by the association of 5 partners, that in 2012

submitted a proposal for the creation of Innovational Incubator near Moldova State

University "A. Russo" from Bălţi - II "Nord", and in 2013 proposed the creation of II

"AntreprenorulInovativ".

Innovational and training Cluster "InnoCluster" from the south region of the country.

The cluster was created in 2012 by the association of 6 partners, who proposed creation

of II "InnoCenter" that activate beside the State University from Comrat.

The cluster of innovative entrepreneurship incubators created in 2012 that includes 5

partners. Under the proposal of this cluster in 2012, were created 2 innovational

incubators: II "Itech" besides Academy of Economic Studies of Moldova and II

"Inventica-USM" beside State University of Moldova.

Science-technology cluster in modern technologies "Elchim-Moldova" created by the

association of 10 partners in 2013. The cluster is at the stage of development the Strategy

and activity Plan

Science-technology cluster in nanotechnology and IT technologies created in 2014 by

the 3 partners. The cluster proposed to create an innovation incubator, but its proposal

was not approved.

Innovative Technologies Cluster created in 2014. It is the first cluster in which, in

addition to the 5 national partners are part international partners. At its proposal, in 2014,

was created the Moldovan-Lithuanian innovation incubator "Media Garage".

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Science and Technology Cluster in IT field created in 2015, by the 5 partners.

Recently, the cluster has come up with a proposal to establish IT Innovation Incubator,

besides the Academy of Economic Studies of Moldova.

All this clusters has the goal of integrating new interested members: enterprises, research

and/or educational institutions, etc.

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Chapter III IMPROVING AGRICULTURAL EDUCATION SYSTEM THROUGH

INNOVATIVE MANAGEMENT

3.1. Management effectiveness in higher education

In many countries there has been increasing diversification of higher education, much of it

involving closer relationships with the private economic sector, and this has led to a range of

organizational problems requiring different kinds of managerial skills and solutions. The

innovations which have led to such diversification include:

providing courses for different types of students (including more mature students and more

women) ;

undertaking extensive research and consultancy projects for industry and other external

sponsors; the development and generation of science parks;

the establishment of self-financing university companies;

and so on.

Such innovations not only need more effective management to make possible the initiation

and integration of such activities into the life of the institution, but also require management of a

kind that will enable such activities to continue to develop and expand. The growth of such

diversification in higher education is a rich area for study, and in particular for an assessment of

factors common to the successful introduction of privately funded initiatives within different

cultural settings. [3,6,8]

Such diversification of itself creates different kinds of pressures within higher education

institutions. for example, self-financing units, consultancy centers and science parks find it

difficult ~ if not impossible ~ to use the same approach to decision-making as is used for

conventional academic matters. They need systems which are faster, more decisive, task centred,

and which provide for staff incentives, clear accountability, and perhaps short- term contracts.

thus as the higher education institution becomes more diverse and heterogeneous, not only are

different and more sophisticated management skills required, but by comparison the traditional

approach to decision-making appears increasingly inappropriate to an even greater portion of

university life.

Technological pressures have also tended to lead to diversification within higher

education, and they have therefore had an effect on the nature and quality of management. The

development of open learning, the major innovations in computer-based learning, and so on,

have al required the introduction of different approaches to institutional management. It t is not

only that these innovations themselves need to be managed in different ways , but also that

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offering new forms of learning demands detailed comparisons (both financial and academic)

with traditional methods and activities, together with the ability and institutional will to act on

the consequences.

Any assessment of the management of change in higher education has to consider the main

sources of any likely innovation, and in most institutions there are four:

individual people and groups within an institution;

the formal decision-making system for the whole institution;

departments, schools or the main unit of organization;

innovation resulting from external pressure.

There are a number of distinct issues to be considered relating to these four sources of

innovation, though some of them clearly overlap. an y future research by iffy might usefully look

at the issues raised by innovations from these different sources.

1. people and groups. A study of the people and groups involved in the management of

change in higher education might reveal some interesting personal characteristics concerning

age, background, education and so on. little work on this has been done in higher education, but

in other areas of education rogers (1965) has suggested that individual innovators tend to have

the following characteristics: [10]

they tend to have relatively high social status in terms of education and social

standing.

innovators are generally young in relation to the age of their peers.

their sources of information are largely outside the existing organizational

system as well as inside.

they are highly cosmopolitan compared with their peers.

they are frequently viewed as deviant by their peers and by themselves.

they ma y be socialized for part of their formal career outside the conventional

status route of their peers.

They may also see themselves as 'product champions’, a phrase adopted by peters and

waterman (1982). Clearly, not al l innovators have al l these characteristics, but i t would be

useful to review whether and/or ho w people perceived as innovators in higher education

conform to these patterns. the implications of the model of organizational culture introduced

above are that those educational institutions dominated by the individual culture would be

unlikely to contain a high proportion of innovators with these personal characteristics in

positions of responsibility, since such cultures are typical of bodies such as professional

associations who select their member s with great care so as to reinforce their professional status

and standing. in such circumstances, little or no innovation can be forced on academics unwilling

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to participate in major change; hence there ma y be little opportunity for anyone to bring about

innovation outside his or her own immediate context. the concept of the 'product champion' is

much more likely to be found in task centred cultures where there is a strong commitment to

implementing agreed objectives. [3,7]

2. The decision-making system. Another major source of innovation within a typical

institution of higher education is the formal decision-making system. Often this is based on the

notion of participation by academic staff , and sometimes students, and despiteits advantages in

terms of the spirit of collegiality it has been noted above that i t has been subject to considerable

criticism for being slow, cumbersome, costly, and unable to address crucial institutional issues in

a proactive way. The ability of such decision-making forums to address key issues in

institutional innovation, whatever their consequences, rather than simply responding reactively

to proposals mad e by other individuals (whether inside or outside the organization), is a matter

for potential research by ПЕР , but the suggestion of a number of reports (for example, CVC P

1985) is that on man y occasions such bodies tend to act as a 'dead hand' on innovation rather

than encouraging it .

In many universities a frequent approach to the management of innovation is to establish

a specialist group or working party to consider the desirability of a particular proposal and the

way that it might be implemented. Although compatible with a collegial decision-making

structure, such approaches are not without their dangers, and even where a coherent proposal is

mad e and adopted, it is frequently the case that those responsible for the proposal (that is, the

members of the working party) are not accountable for its consequences or for its

implementation.

This gap, between the proposers of an innovation and those responsible for carrying it

through, is a fundamental problem for the management of change in higher education, and a

common cause of innovation failure.

3. The departmental level. At the departmental level, where a number of questions about

the management of innovation are raised. For example:

What is the role of heads of departments in encouraging innovation?

Ho w can departments be best organized to ensure effective teamwork?

What incentives operate at the departmental level to encourage and support change?

Are heads of departments selected on the basis of their ability to manage change

successfully? and

What kind of training is provided for them?

The answers to these questions will have a powerful effect on the way that change is

perceived and introduced into departmental life (Keller 1983). However , there are many other

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issues which affect innovation, including the periods of office served by heads (are they long

enough to enable them to manage change successfully, or are they changed so frequently that

little can be achieved?) and whether heads are appointed or elected, and if the latter, who can

stand for election. The relevant issues here are too numerous to list in full , but Becher and

Kogan's work can be useful for looking at the interplay between different levels of an institution

in relation to the management of change.

4. Pressure from external bodies. These pressures are usually from those providing

funding » for example, government ministries and the like. Institutions manage such

interventions or 'reforms' in various ways depending on their relationships with the State, and the

overlap of individuals involved. For example, in a number of universities in Sub-Saharan Africa

the head of State is chancellor of the university, and in such circumstances institutional

autonomy is difficult to maintain. In other systems where institutions are notionally given greater

operational freedom, the past decade has in fact seen much closer intervention in the

management of higher education, largely through the control of funding mechanisms.

There are numerous factors identified in the literature on innovation which influence the

implementation of change and the rate at which it s spread and success may be diffused within an

organization. It has already been noted that strong commitment to any particular proposal or

innovation is crucial. There are three distinct issues here:

the nature of institutional commitment;

the commitment of individuals within the institution;

the commitment of the academic discipline concerned.

As a number of authors have observed, the primary loyalty of man y academic staff has

traditionally been not to their own institution, but rather to their academic discipline, and in such

circumstances it is the discipline — often represented by a professional association — that

becomes heavily involved in either supporting or opposing major institutional changes. For

example, it is unlikely that any significant innovation can be mad e to the curricula in

professional subject areas without the support of both individual members of staff, those

involved with the discipline as a whole and the institution itself.

When commitment on the part of any one of these three groups is lacking, then it will be

difficult to implement any major curriculum change. Separate from this is the power of students

to oppose and propose change which in some systems is, of course, considerable, either

collectively through pressure groups or privately in their role as customer. [3,7]

Related to this point, but separate from it, is the question of 'ownership' of any proposed

innovation or change. As observed above, there are few staff in higher educationinstitutions who

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have the power to implement innovation on the basis of their own authority, and joint decision-

making systems are often used both to promote and to diffuse innovation.

A major problem in such an approach is that no one individual 'owns ' any proposed

change, or is its 'product champion’. Indeed, Cohen and March (1974) have even suggested that

the initial instigators of an innovation should hand over ownership to higher status professional

colleagues in an attempt to gain broader institutional support. There is an extensive literature to

show that without such committed support implementation will fail.

A further problem specific to the implementation of change in higher education is the

question of speed. In other less complex organizations successful innovation is often directly

related to speed, and considerable effort may be made to ensure both that the dynamic of any

proposed innovation is maintained, and also that an agreed timescale is generally known: 'do it

quickly' is a frequent prescription of management textbooks. [3,7]

However , higher education institutions tend to have long lead times for man y of their

activities, and thus innovating quickly can be difficult. There are numerous examples of courses

which have outlived their usefulness, or failed to recruit enough students, but which are still

offered years after they should have been stopped. An interesting exception to this rule appears

to concern changes which come about for financial reasons, and it is notable that in those

systems where government funding has been reduced in the 1980s the institutions so affected

have been forced to move much more quickly, and to use different decision processes, than has

traditionally been the case. The message seems to be straightforward: if a major innovation is to

be successfully introduced it needs an effective timetable, agreed in advance, which allows

momentum to be maintained.

As noted in the introductory paragraphs, the question of leadership to implement

innovation is held to be, perhaps, the most crucial aspect by many. The form of leadership, as

pointed out above, will vary according to the particular culture of the organization, and the style

of the individual concerned, but without strong support and commitment from senior staff major

innovations are unlikely to succeed. An important area of possible research for ГЕР is thus to

examine the form and extent of leadership in relation to the implementation of innovation in

developing countries.The provision of effective information about any major innovation is also

held to be a crucial determinant of whether it can be successfully implemented. The absence of

comprehensive management data bases has already been observed, but effective information and

communication can take a variety of forms, but it is essential that it is itself managed. Thus,

although information is frequently widely available within higher education institutions to those

who take the trouble to seek it out, man y institutions are poor at managing the information flow

so as to ensure that any innovation has the greatest chance of success.

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Although the provision of such information is valuable, there is some evidence to suggest

that this, and associated strategies for effective implementation of change will be of little value

unless incentives are available, both for the individual and for the institution, to help the

implementation process. Unless an institution benefits in some tangible way y from a major

innovation it is unlikely to co-operate fully in its implementation, and similarly incentives must

be available to individual member s of staff. Of course, these need notnecessarily be financial;

there is a whole range of incentives, perhaps the most important being those professional ones

associated with improving quality, greater job satisfaction and so on.

However, in a situation where tenure is guaranteed and academic freedom maintained,

neither positive nor negative incentives may be available in order to address the constant

complaint from senior staff that they have no sanctions over unco-operative staff.

Finally, in addition to these factors, it should be noted that any successful strategy for

implementing change has to acknowledge that many people will always find the disturbance it

causes undesirable, and ma y indeed perceive commitment to change to entail significant

personal risk. The literature records numerous forms such risk might take: fears, for example,

that status might be devalued; that academic reputation might be lost; that prized working habits

might be changed; that individual freedom might be reduced; and so on.

Such concerns typically exist most strongly in the cultures where self-image rests on

professional reputation and status. Thus one of the challenges for those who would argue for a

more entrepreneurial approach to higher education is that of altering the perception of man y

staff, so that instead of viewing change as undesirable and risky they see it as natural and

welcome.

3.2. Innovations in agricultural education management

The technological transfer mechanisms are those operations that ensure dissemination of

some technologies from the provider to recipient. Generally, such processes could be financial,

technological or human. This consists from various forms of procedures, beginning from active

forms, like interpersonal communication, to passive forms, for example, the reading of the

technical magazines.

The technological transfer, especially to developing countries, is often correlated with the

globalization process, so that is difficile to identify the negative or positive consequences in a

concrete economical system.

The positive effects of the technological transfer can include the growth of productivity,

the development of complementary activities with local firms, while the negative effects may

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refer to adverse effects of competitiveness with local firms, to staff redundancies and the

decreasing of the welfare.

On the long term, competitiveness of an economy depends by the innovative potential

gained through the technological transfer. This is the key-factor from the competitiveness factors

analysis, like the production costs. The owners and those who have access to high technologies

influence the position of a country in international competitiveness classification. Without

having own developed technologies, competition on long terms is sustained by technological

transfers as it was in Central and East Europe that remains lag behind developed countries.

The technologies that make the subject of technology transfer are embedded in patents,

utility models and, industrial designs, marks, know-how, inclusive information and technological

data, technological services, technological support and other protection rights of the chips and

software. [3,7]

The fundamental aim of an Innovation and Technological Transfer Organization (ITTO) is

to offer the facilities and competent technological services that will contribute to sustain and to

grow the competitiveness and economical durable development of the economic sectors.

The specific objectives of an ITTO are oriented to satisfy the needs of economic sectors,

and to realize the jumps in social accumulation plans, including:

The support of industrial enterprises in industrial competitiveness growth through

innovations;

The support of research and development organizations in their efforts of orientation to

satisfy the needs of industrial enterprises in that sphere;

Support of National Research and Development programs through the growth of

information level and attract of new partners in innovation and technology transfer

process generated by national projects;

Increasing of the information and awareness level on the innovation concepts, quality,

technology transfer, competitiveness;

In order to achieve these objectives, ITTO need a vision on the mode in which it

constitutes like a corporate structure, such that his activity to lead to perform his functions and to

make profit.

The main involved problems in innovation and technological transfer organization, in an

ITTO, are:

The transformation of intellectual energy in practical energy:

The transformation of scientific knowledge in comprehensible knowledge, in order to be

understood and utilized by firms;

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The development of an institution in which different types of knowledge to interact in

order to produce practical results.

A major focus is needed on the access of funding. The mechanisms that can be stimulated

to increase the access to funding, are:

The public funding in an incipient stage, respectively from initial stage of the concept, to

the demonstration of economic viability of the project.

The public private partnership which combine the use of public and private funds;

This partnership can include:

Financial specific tools for intellectual property right protection;

Expertize public funds;

Related to research location funds;

Mutual funds for new firms created on “new ventures” principle;

Specific mechanisms of financial and patrimonial warranties;

Stakeholders connections. These connections can be developed through:

Organization of local or regional “ formal investors” networks, with the aim to

increase the level of understanding of the start-up concept of the firm, by the banks and

venture funds;

The implementation of the firms formed by entrepreneurs, researcher and

financiers;

Design and dissemination of audit methodologies adopted by new firms;

Development of pan regionals markets for the firms with fast growth, on the

model of those who exist in Europe (AIM, EASDAQ, Euro - NM) with the aim of

achieving the required level of liquidity.

Legislation that regulates the protection of small investors and the use of pension and

insurances funds. An adequate legislation could allow the diversification of financial

investments in the domain of the firms publicly untraded.

Market orientation is an success factor, which can be stimulated through:

Support-scheme promotion for market research;

Assuring of market information;

Development and dissemination of economic intelligence and technical knowledge to

companies, especially in start-up phases and growth phases.

Market development of new firms.

Judging from the above and from research theme, we can recommend following

innovations that are related to improvement of the agricultural educational management. We

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consider quite actual and timely the creation of clusters for State Agrarian University of

Moldova. The main components of such system in my vision must be the following:

Fig. 3.1.Clusters models

The creation of such system, in my opinion will contribute to assure of an continuous flow

of the students for State Agrarian University of Moldova. Is considering that the students of the

agricultural colleges, should be enrolled directly in the second study year. Also, economical

agents would be interested in obtaining qualified staff

The next model that I can purpose for the improvement of the agricultural educational

system is the creation in SAUM of an Innovation and Technological Transfer Organization. The

objectives and the role of such organization I described above, but they can be adapted as

needed. This Innovation and Technological Transfer Organization may have the statute of

autonomous organization.

Also, I believe that it would be necessary and useful the opening within agricultural

colleges and SAUM of different scientific centers, in within will happen a series of scientific-

practical activities, on different topics.

All these moments are welcome for the improving of the agricultural education process

and the transforming his in an attractive and efficient one.

economical agents

agricultural colleges

SAUMeconomical

agents

economical agents SAUM economical agents

agricultural colleges SAUM agricultural colleges

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CONCLUSIONS AND PROPOSALS

Only the change, offer always occasion for new and special. That’s why innovation

consists of organized search an goal well defined by changes and in systemic analysis of

occasions that these changes can offer to economic or social innovation. Usually, these are

changes that already happen or are in a way to happen. The great majority of successful

innovations exploit change. Of course, there are innovations that constitutes, themselves, a major

change, for example some technical major innovations.

The process of innovation has a broad coverage. Practically, is manifested in all activities

that have place in enterprises, not resumed on products and technologies. He aims and

informational systems, economical methods, organizational structures, decision processes, etc. Is

necessary to make this specification, whereas, often, there is the trend to limit the creativity and

innovation on manufacturing activities, despite in last year’s worldwide is manifested a trend to

promote other categories of innovations and inventions.

Important directions of firm innovation potential amplification represent the use of

methods to stimulate the creativity of the employs. On the basis of these methods is the theory on

creative thinking, that substantiates concept on several principles.

The creative process is an essential condition for the existence of each firm. Through the

stimulation of the creativity in general and the useful creativity especially, the firms manage to

cope the competence that manifested now in the competitive economy. Because of this all firms

are concerned by searching of the ideas that can materialize in products and services. The

managerial practice proves that these ideas can be the result of individual thinking realized solely

or in the context of special groups constituted for this aim, in the basis of some managerial

methods for stimulating of the creativity of the enterprises staff.

The agricultural education system of Moldova consists basically of:

the State Agricultural University of Moldova (SAUM),

eight agricultural colleges out of a total of 46 colleges,

some 20 vocational schools (VET) that concentrate on agricultural subjects out of a

total of 70 VET schools.

Many of the VET schools are very small and should be consolidated into a smaller number

that can be better managed and equipped. SAUM and the eight agricultural colleges are under

MAFI and the Ministry of Education, (ME).

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In many countries there has been increasing diversification of higher education, much of it

involving closer relationships with the private economic sector, and this has led to a range of

organizational problems requiring different kinds of managerial skills and solutions.

I conclude with a set of recommendations for institutional support of these

entrepreneurialinitiatives of the university.

The government should expand funding for the Small Business Technology

Transfer (STTR) program designating funds specifically for university start-ups.

Ministry of Agriculture and Food Industry of Moldova should authorize a patent

use exemption for non-profit agriculture research organizations for the purpose of exclusive

experimental use.

The government should create an equity rule for the distribution of funds among

universities. This rule has the aim to bring sufficient support to technology transfer at each

university in order to promote enterprises that are competitive in state and regional markets but

that may not qualify for grants in national competitions.

The reason why the government is able to demand more from universities than from

industry is because academic research is far more dependent on government funds than industrial

research.

There is an additional virtue to university start-ups as a new model of technology

transfer. The conversion of intellectual value into economic value is a task far more complex

than simply patenting and licensing faculty inventions. Start-ups internalize the full set of

interactions between research and productive organizations that lead to the successful

development of a commercial product. The full set includes many more things transacted other

than patents. Consider for instance the transfer of tacit knowledge of faculty and post-docs that

go to work in the start-up or the transfer of codified knowledge in the public domain—it is not a

small benefit if start-ups have access through faculty to the well-supplied university libraries.

Think of the significant advantage gained by entrepreneurs who can keep up with the

latest developments in the relevant field by virtue of being plugged into a scientific network

through the regular circuit of conferences and seminars.

There is also the access to the collective knowledge of a university from which the

entrepreneurs can draw to solve engineering or design problems outside their field of expertise;

start-ups are true sites of inter- and trans-disciplinary research. By nurturing start-ups,

universities are taking on a more robust approach to technology transfer as they implicitly

challenge the view that patents are the only or even the most important catalyst of university-

industry cooperation.

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