R&D and innovation performance: Polish perspective
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1 R&D and innovation performance: Polish perspective Marcin Gedlek Deputy Director, Promotion and Innovation Support Department Patent Office of the Republic of Poland 4 th Workshop Seville, May 2012
2 Content: I.Economic and innovation-oriented development of Poland compared to other countries II.Government s entrepreneurship and industrial-property policies III.Conclusions & way forward
3 Research-and-development outlays (GERD) in selected countries, 2007: GERD/GDP and percentage of GERD funded by businesses. Source: Central Statistical Office of Poland (CSO) (2010:133)
4 The degree of an economy s innovation - directly interrelated with the number of enterprises pursuing innovative activity The most innovative businesses in Poland are apparently large-sized companies with headcounts of 250 or more each, with as many as 60.7% of them having implemented innovative solutions. Percentage of enterprises pursuing innovationoriented activity in Source: Eurostat (2010:67).
5 Poland: relatively high number of hightech entities (over ), but their performance is very low, meaning they are smallsized, niche, lowturnover players. High-tech industrial enterprises: count and turnover figures, Source: Central Statistical Office of Poland (CSO) (2010: ).
6 A country s innovationoriented development is also testified by its exports of advanced technologies. Regrettably, Polish economy cannot boast internationally-renowned achievements in this particular respect, with a share of exports of advanced technologies in the total value of goods and services exported abroad of 3% only one of Europe s lowest figures. Share of high-tech export in total export, per cent; Source: CSO (2010: ).
7 Innovative enterprises often develop basing upon money provided by funds of highrisk capital (venture capital). Poland appears to have a well-developed VC market, however, investments made by Polish VC funds are targeted, at low-innovation undertakings which ensure stable return rates and risk levels lower than that being the case with businesses whose success is based on their R&D results. Venture-capital fund investments in new undertakings or in continued development of undertakings, EUR million; Source: Eurostat (2010:97).
8 The activity of domestic entities with regard to patenting seems to be interrelated with the scale of R&D outlays in individual countries. As far as the number of patent applications per 1 million USD of national R&D outlays is concerned, Poland appears to be more productive in this respect than any European country. Source: World Intellectual Property Indicators, WIPO (2011:85)
9 inventions and utility models statistics: applications
10 Overview of some of the Polish Government s entrepreneurship and industrial-property policies: Poland 2030 Operational Programme Innovative Econnomy
11 Poland 2030 prepared by the Advisory Team to the Prime Minister of the Republic of Poland, identifies a total of ten challenges for the following twenty years. These include: growth and competitiveness knowledge-based economy development of intellectual capital Focus on infrastructure itself is insufficient actions of this sort must be complementary with the funds utilised for highly-processed capital goods benefiting increased labour productivity. Recommendation as to the possible choice between the model characteristic to Scandinavian countries and the United States and the way chosen by Asian countries and Ireland, conclusively leads to placing a bet on a happy medium The American/Scandinavian model Focus on services sector Development of ICT technologies ICT technologies as support to development of services High human capital outlays The Asian/Irish model Focus on industries manufacturing technologicallyadvanced products: ICT, household-equipment, automotive A lower-cost/expense model than the U.S./Scandinavian one The Polish way A mixed model Industry upgrades/improvements Focus on diffusion ICT technologies in the services sector Double-track development of human capital Reinforcement of technology-based, rather than price-based, exports
12 Poland 2030 (continue) In the sphere of intellectual property, the report has pointed out to no integration between the worlds of science and business. Polish entrepreneurs low investments in R&D is apparently resultant of no awareness that innovation is of significance importance to a company s success The indispensable changes must also appear with scientific/research units where the staff is swapped over to an unsatisfactory degree, the same being true for support to young scientists and scholars. The recommendations for the years to follow are with respect to the domain of education, from the elementary-school level to lifetime instruction/training and cooperation between science and business. gap. According to report existing human capital in Poland is smaller than the one existing in the 1980s in Spain and Portugal; hence, there is a chance to align the human capital in Poland with the old EU level. The report authors emphasise that efficient expenditure of funds at stake requires starting the process from structural changes, since investing in the existing system may end up in a loss.
13 Operational Programme Innovative Economy The Programme Innovative Economy is one of six national programmes under National Strategic Reference Framework, which are co-financed from EU resources. This programme is directed mostly to all entrepreneurs who want to implement innovative projects connected with research and development, modern technologies, investments of high importance for the economy or implementation and use of information and communication technologies. Goals: Increased innovative potential of enterprises. Increased competitive potential of Polish science. Increased role of science in economic development. Increased share of innovative products of Polish economy in international market. Creation of durable and more satisfactory workplaces. Increased use of information/communication technologies in the economy. The Programme aims at supporting innovativeness in its broad sense. This aid comprises both direct support for entrepreneurs, business support institutions and scientific entities providing entrepreneurs with high quality services, and systemic support, ensuring development of institutional environment of innovative enterprises.
14 A breakdown of Operational Programme Innovative Economy actions pertaining to entrepreneurship and industrial property. Priority 1 Research and development of modern technologies 1.1 Supporting scientific research for building a knowledge-based economy 1.2 Reinforcement of staffing potential of sciences 1.3 Supporting R&D projects implemented by scientific units, to the benefit of entrepreneurs Priority 2 R&D infrastructure 2.1 Development of centres/hubs of high research potential 2.2 Support to the building of shared research infrastructure for scientific/scholarly units 2.3 Investments related to creation of an IT infrastructure for sciences Priority 3 Innovation capital 3.1 Initiating innovative activities 3.2 Supporting venture capital funds 3.3 Creating a system facilitating investments in SMEs Priority 4 Investments in innovative undertakings/projects 4.1 Support to implementations of outcomes of R&D works 4.2 Stimulating R&D activities of enterprises and support for industrial design 4.3 Technological lending 4.4 New high-innovation-potential investments/projects Support to investments/projects of a major importance to the economy Priority 5 Diffusion of innovations 5.1 Supporting the development of cooperative interrelations of supra-regional significance 5.2 Supporting business-environment institutions rendering pro-innovation services and their networks of supra-regional significance 5.3 Supporting innovation centres/hubs 5.4 Intellectual property management Priority 6 Polish economy in international market 6.1 Exports passport 6.5 Promoting Polish economy Priority 8 Information society: increased innovative potential of the economy 8.1 Supporting business operations: electronic management 8.2 Support to implementation of electronic B2B operations
15 Conclusions: Innovativeness of Polish economy remains way below the EU average. This is reflected by, among other things, low R&D outlays (the GERD/GDP ratio). Public money is used to a greater extent than enterprises own money in funding research and development activity in Poland. Any further financial injections by the Governmental administration will not get translated into a major increase in innovation-oriented activity. Presented documents (Poland 2030, Operational Progremme Innovative Economy emphasise a striving for development of Poland on the grounds of knowledge and innovations. They also form the basis for allocations of monies, including as part of actions supplied by EU structural funds. An important instrument for delivery of support to innovation policies is the Operational Programme Innovative Economy which is focused on stimulating the development in question
16 Way forward: 1.It is recommended that informative and promotional efforts be intensified amongst entrepreneurs, incl. SMEs, with respect to development and protection of industrial property 2.The forms of communication practised by far seem to miss the target of a mean small/medium-sized company, which is reflected in their weak interest in the topics in question. 3.It is important to communicate and emphasise the importance of knowledge, human and intellectual capital to the enterprise s strategy. 4.It is important that benefits related to innovative activity be emphasised. 5.It is important to stress measurable benefits implied by protection of industrial property. 6.Promotion of examples of good practices among SMEs is recommendable. 7.It seems purposeful to make entrepreneurs aware of the real level of costs/expenses implied by use of patent protection 8.Close cooperation between various public administration institutions in view of their shared promotion of significance of innovations and industrial property to Polish businesses will be of advantage to development of an industrial property system locally.
17 Thank you for your attention! Note: presentation based on the unpublished report Economic determinants for development and protection of industrial property in Poland by prof. K. Klincewicz, Uniwersity of Warsaw
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