Mobilizing resources for skills and capabilities

Agrita Kiopa, Deputy State Secretary, Ministry of Education and Science

19.05.2016

The Latvian R&D&I System

2

Framework conditions Financial environment, tax regime, entrepreneurship and

innovation incentives, regulatory environment, State aid, mobility

Demand Consumers (final demand)

Producers (interim demand)

Industry system (R&D FTE 981)

Political system

Traditional economic sectors

Future growth sectors with high added value

Sectors with high horizontal impact

System of Education and Science (R&D FTE 4415)

Vocational education and training

Higher education and research

Research commissioned by the Public sector

The Saeima, Cabinet of Ministers

MoES, MoE, line ministries and gov., agencies

R&D&I and Industrial policy, RIS3

Research institutes, National Research Centers

Infrastructure

Banks, venture capital Information R&D&I and business support

instruments Standards and requirements

Competence Centers,

Technology transfer structures

Research infrastructure

RIS3: sustainable growth strategy

3

1. Structural changes of production and export in traditional sectors;

2. Growth in high added value sectors: new products and services;

3. Sectors with horizontal

impact and contribution to economic transformation.

Directions: Priorities:

1. High added value products 2. Productive Innovation System 3. Energy Efficiency 4. Modern ICT 5. Modern education 6. The knowledge base 7. Polycentric development

1. Knowledge-based bio-economics

2. Bio-medicine, medical technologies, bio-pharmacy and biotechnologies;

3. Advanced materials, technologies and engineering systems

4. Smart energy

5. Information and communication technologies.

Specialization areas:

Objective: Transformation of economy towards higher added value, productivity and more effective use of resources

Base 2017 2020

R&D investment

(% GDP)

0,6

(2013) 1,2 1,5

Productivity

(EUR/empl)

20 126

(2013) 24 500 29 000

Practically oriented research

76.51 million euro (MoES, SF)

Development of the

infrastructure of vocational,

including in STEM fields,

104.7 million euro (MoES,

SF)

Innovation motivation

programme 4.80

million euro (MoE,

SF)

Science base funding (2014–2017)

99.16 million euro (MoES, NB)

Grants for post-doctoral research

64.03 million euro (MoES, SF)

Support for ERA bilateral and

multilateral cooperation projects 32.55

million euro (MoES, SF)

Development of the R&D infrastructure

100 million euro (MoES, SF)

Innovation grants to students

34 million euro (MoES, SF)

Strengthening the institutional

capacity of scientific institutions

15.25 million euro (MoES, SF)

Conquering

external markets

31.80 million euro

(MoE,SF)

Technology transfer

programme

24.5 million euro (MoE, SF)

Competence centres

72.3 million euro (MoE, SF)

Support for small and medium-

sized enterprises for the

development of new products

and technologies 7 million euro

(MoE, SF)

Business incubator

support programme

31 million euro

(MoE, SF)

HE infrastructure

development in STEM

fields

44.64 million euro

(MoES, SF)

Infrastructure

development in colleges

in STEM fields 14.2

million euro (MoES, SF)

Latvian economic growth SCIENCE BUSINESS

EDUCATION

NRP (2014–2017) 26.96 million

EUR. (IZM, SB)

EDUCATION FUNDING

Reduction of HE study programme

fragmentation, strengthening the capacity of

HE academic personnel, improving the HE

management 65.15 million euro (MoES, SF)

Training of the

unemployed 24.90

million euro (MoE, SF) Support for the

creation of

production

infrastructure and

purchasing

equipment 81.75

million euro (MoE,

SF)

Facilitating access

to funding 51 million

euro (MoE, SF)

Cluster programme

6.20 million euro

(MoE, SF)

Public infrastructure

facilitating business

in regions 114.2

million euro

(MoEPRD, SF)

Territory

revitalization

278.26 million

euro (MoEPRD,

SF)

Training the

unemployed according

to the labour market

demand 96.4 million

euro (MoW, SF)

HORIZON 2020

Cooperation between research

and agricultural and forestry

sectors

2.2 million euro (MoA, EAFRD)

Knowledge transfer to farmers

and people responsible for the

management of forests 17.1

million euro (MoA, EAFRD)

Corporate income tax allowances for research

and development costs

FLP (2014–2017) 20.76 million EUR

(IZM, SB)

Corporate income tax allowances for stimulating production

when purchasing new production equipment

Reuse of public data

151.54 million euro

(MoEPRD, SF)

Improving the professional

competence of employed

persons 27.03 million euro

(MoW, SF)

Education based in the work

environment, practical

training in vocational

education 21.93 million euro

(MoES, SF)

Participation in the EU research and

technology development programmes

(2014–2017) 5.72 million euro (MoES,

NB)

High-growth

enterprises

75 million euro

(MoE, SF)

Labour market

preventive

reorganization system

1.99 million euro

(MoW, SF)

Strengthening the capacity

for innovation

Increasing the scientific

competitiveness Increasing the business competitiveness

Quality and relevance of HE in Latvia

5

OECD Recommendations for HE

• Move forward with the implementation of the three-pillar financing model

• Continue improving the quality of tertiary education and science

• Continue efforts to realign system capacity with demographic decline, fiscal reality and labour market needs

• Strengthen the capacity for strategic leadership and management

• Infrastructure investments linked to consolidation of RIs

• Study and research environment

• Open-access and dual use labs

• Priority of STEM; • Involvement of

professional associations; • Programs aimed at

creation of S&T human capital

• Integration of education and research

• Perfomance funding (R&D and creative activity)

• Learning outcomes • Quality assurance • Governance of HEI’s

• Governance and HR management in HEI’s

Focus on R&D&I human capital

Reneval and promotion of

tallent

Consolidation and integration of R&D&I with

HE

Performance incentives

Resources

Framework conditions

and incentives

Students

Academic personnel

6 Academic Centre for Natural Sciences, University of Latvia

Resources: Consolidation and integration of R&D&I and HE

University of Latvia- new Faculty of Biology, Chemistry, Geography and Earth Science, Medicine

(1 500 students)

Academic Network in Latvia - connects 50 scientific and higher education institutions, access to databases and high performance calculation software

NRC project: Pharmaceutical and Biomedical National Research Centre

Participants: OSI, BMC, RTU, LU

Recent consolidation

and infrastructure

projects

• In 2015 core research resources were concentrated in best institutions and unversities (RAE, 2013) • In 2016 21 research institutions and universities receive institutional funding (29 in 2015, 41 in 2014).

Performance incentives: funding model

teaching

pillar 1:

basic funding

pillar 2:

performance –

oriented funding

pillar 3:

innovation –

oriented funding

• numbers of study

places (per field)

• cost oriented weight

profile-oriented

target agreements

teaching + research +third mission

research

• numbers of

research staff

(per field)

• cost-orientedweight

• Research staff

FTE

(MAs, PhDs)

• Industry funded

research;

• International

research.

funding of

centers of

excellence

• Alignment of HE

and R & D

• Rewards past perfomance

Basic funding for labour market

alignment

Performance-based funding for HE&R

integration

Funding for development and

strategic specialization

Performance funding

6,5 MEUR

Study funding 85 MEUR

Funding for research 12 MEUR

OP «Growth and

Development» funding

Performance incentives: 2nd pillar

• MA students, PhD students, «young» scientists engaged in research - (P- 0.3)

Building HR in research and technology development

• International funding for research and development projects (Horizon 2020 etc.) - (S- 0,25)

International competitiveness of research

• R & D contract funding by public and commercial entities – (L - 0.25)

•Funding by local governments for regional research projects - (R- 0.1)

•Funding for creative and artistic projects - (M- 0.1)

Industry relevance of research

Performance criteria according to policy priorities:

2nd pillar funding FORMULA:

𝐹2𝑧 = 𝐹𝑧𝑑𝑎

× 0,3 ×𝑃𝑧 𝑃𝑧

+ 0,25 ×𝑆𝑧 𝑆𝑧

+ 0,25 ×𝐿𝑧 𝐿

𝑧

+ 0,1 ×𝑅𝑧 𝑅

𝑧

+ 0,1 ×𝑀𝑧

𝑀𝑧

Performance incentives: external quality assurance

1425 1492 1583 1715 1949

2717

3493

4475

5293

6465

0

1000

2000

3000

4000

5000

6000

7000

20

06

/07

20

07

/08

20

08

/09

20

09

/10

20

10

/11

20

11

/12

20

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20

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/15

20

15

/16

Foreign students in HEI's in Latvia 2006/07 - 2015/16

• Number of foreign students has considerably increased in recent years reaching 7,6 % of all students

• It is a challange to attract foreign academic and research staff, especially from highly ranked HEI’s and research institutions

• Academic Information Centre will be an independent external quality assurance and evaluation entity registered in EQAR by 2018

Students: Focus on Human Capital

68 912 67 592

57 428

48 553 42 745

39 252 36 317 33 841 30 808

20 279 20 383 20 245 20 635 20 389 20 191 20 422 19 872 20 163

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

2007/0

8

2008/0

9

2009/1

0

2010/1

1

2011/1

2

2012/1

3

2013/1

4

2014/1

5

2015/1

6

Num

ber

of stu

dents

Number of students by study area

Social Sciences Natural Sciences and engineering

Medium-term labour market forecasts: increased demand for STEM occupations by 2020

(and shortage of 13 5000 specialists in STEM fields, if no measures taken)

1425 1492 1583 1715 1949 2717

3493 4475

5293 6465

0

2000

4000

6000

8000

2006/0

7

20

07

/08

20

08

/09

20

09

/10

20

10

/11

20

11

/12

20

12

/13

20

13

/14

20

14

/15

20

15

/16

Foreign students 2006/07 - 2015/16

• Priority to STEM fields for gov. study funding

• New government programs to support innovation and entrepreneurship skills and local and global linkages (networks)

Boosting efficiency and effectiveness of innovation system: core principles of reforms

Knowledge base

Sufficiently diverse (to serve five specialization areas)

Focused and relevant (to ensure competitiveness)

(S&T) human capital

Skilled (personal, technical, abstract)

Locally embedded (to develop local industry)

Globally connected (to reach out for opportunities)

Links across sectors and disciplines

(to benefit from cross-fertilization)

Institutions

International peer-review

Entrepreneurial discovery

Allingnemnt of effort

Infrastructure

Serves creation of knowledge base and human capital

Allows production of relevant knowledge

Jointly used sectorally, nationally and internationally

Supports conversion of tacit knowledge into innovation

11

New investment sources: Quality FDI Innovation procuremnt R&D of government entreprises

Talent:

New fields and areas of knowledge Diaspora National and international

Mobilizing resources for skills and capabilities

Agrita Kiopa, Deputy State Secretary

19.05.2016