Document ID: IPF 12-004 VINNOVA Dno: 2009-04589 The High Technology Development and the Industrial Biotechnology Development programmes of MITA Peer Review Report
This report was prepared by: Jasper Deuten Contact details: Email: jasper.deuten@technopolis-group.com The peer review team: Eelco Denekamp NL Agency, The Netherlands (team leader) Anne Löfquist Vinnova, Sweden Merlin Goldman Technology Strategy Board, UK Jasper Deuten Technopolis Group, The Netherlands (external consultant) Disclaimer: The views expressed in this report are those of the author and the Peer Review Team. They do not necessarily reflect the opinion or position of the European Commission and in no way commit the involved organisations. PAGE 2
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The High Technology Development and the Industrial Biotechnology Development programmes of MITA Peer Review report TABLE OF CONTENTS 1 Introduction... 6 2 Our understanding of the scheme... 7 2.1 Introduction... 7 2.1.1 Policy context... 7 2.1.2 MITA, the innovation funding agency... 10 2.2 High Technology Development Programme for 2011 2013 and the Industrial Biotechnology Development Programme for Lithuania for 2011-2013... 13 2.2.1 Policy rationale and objectives... 13 2.2.2 Beneficiaries and eligibility... 14 2.2.3 Features of the support... 15 2.2.4 Programme capacity... 19 2.2.5 Programme strengths... 19 3 Catalogue of potential good practices... 20 3.1 The selection procedure... 20 3.2 Focus on strong/promising technology areas... 20 4 Our understanding of the key challenges... 21 4.1 SMART objectives of the programme... 21 4.2 Budget uncertainty (annual fluctuations)... 22 4.3 Integration of HTD and IBD programmes?... 22 APPENDIX A Abbreviations... 23 APPENDIX B Peer Review Agenda... 24 PAGE 4
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1 Introduction The Peer Review as described in the present report is an activity of the INNO-Partnering Forum (IPF). The IPF is an INNO-Net. It was established as a project under the auspices of the European Commission (DG Enterprise and Industry) for the period 2009 2012. The aim of IPF is to identify, develop and exploit synergies between public innovation agencies in Europe and propose new approaches to innovation support for SMEs. The project will in particular explore and test new ways of service delivery, aiming to accelerate the take-up of the most advanced innovation mechanisms with proven efficiency and impact. IPF is carried out by a consortium consisting of the following six partners: Vinnova (SE, co-ordinator), Tekes (FI), Technology Strategy Board (UK), Enterprise Ireland (EI), NL Agency (NL) and FFG (AT). The peer review cases have been selected through an open call where agencies in Europe were requested to submit successful support measures. Based on submitted proposals, the IPF management has selected schemes that offer the best sources for the identification of good practices that seem to be of interest to other agencies and countries in Europe. The High Technology Development programme for 2011-2013 and the Industrial Biotechnology Development programme for 2011-2013 of MITA are two of the selected European schemes. Both programmes are managed by MITA the innovation funding agency in Lithuania. This report presents the result of the peer review of these programmes. The review visit took place on the 29 th of February and the 1 st of March 2012. The agenda of the visit is included in the Appendix B. The team members were: Eelco Denekamp NL Agency, The Netherlands (team leader) Anne Löfquist Vinnova, Sweden Merlin Goldman Technology Strategy Board, UK Jasper Deuten Technopolis Group, The Netherlands (external consultant) The team wishes to express its gratitude to MITA for the warm welcome given, the excellent hosting and for the information and transparency which they provided about the programmes. PAGE 6
2 Our understanding of the scheme 2.1 Introduction 2.1.1 Policy context The Lithuanian government published the first Lithuanian Innovation Strategy for 2010-2020 (LIS) in 2010. LIS is a long-term strategic planning document which sets vision, objectives, goals and results to be achieved in the field of Lithuanian Innovation up to 2020. The main aim of the strategy is to create a competitive knowledge economy based on the latest technologies and qualified human resources. 1 The concrete target is that the Lithuanian summary innovation index of the Innovation Union Scoreboard should reach the European average in 2020. 2 The LIS presents a change of the priorities: moving from traditional manufacture oriented sectors towards creative and intellectual manufacture and services, creating high added value. In the LIS, the Lithuanian base of an innovative economy consists of: Innovative traditional industries (Engineering; Chemical industry; Food industry; Wood, furniture and textiles industry) High tech industries (Biotechnologies; Lasers and light technologies; ICT; Production of electrical and optical equipment) New economic sectors (Future energy; Creative technologies; Clean technologies; Wellbeing and wellness) According to the LIS, the long-term objective of innovation policy is to build a creative society and create conditions for the development of entrepreneurship and innovation. 3 This policy objective is implemented along four dimensions: 1. Enhancing the Lithuanian integration into the global market; 2. Educating a creative and innovative society; 3. Developing broad-based innovation (i.e., including non-technical innovation); 4. Implementing a systematic approach to innovation. 1 Brochure of MITA, 2011. 2 In the Innovation Union Scoreboard 2011, Lithuania belongs to the group Modest innovators with a performance well below that of the EU27 average. Other countries in this group are Bulgaria, Latvia and Romania. Within this group, Lithuania is a slow grower. According to the IU Scoreboard 2011, Lithuania has relative strengths in Human resources and Finance and support. Relative weaknesses are in Open, excellent and attractive research systems, Linkages & entrepreneurship, Intellectual assets, Innovators and Economic effects. High growth is observed for Non- EU doctorate students and Community trademarks. A strong decline is observed for Innovative SMEs collaborating with others and License and patent revenues from abroad. Growth performance in Human resources, Open, excellent and attractive research systems and Intellectual assets is well above average. 3 Brochure of MITA, 2011. PAGE 7
The LIS Action Plan for 2010-2013 encompasses 120 measures drafted and to be implemented by 12 (out of 14) ministries of Lithuania. The LIS is based on an assessment of the strengths and weaknesses of the research and innovation system in Lithuania. Main weaknesses that need to be addressed include: Research at universities and public research institutes is insufficiently translated into innovations; The public research sector and the business sector are insufficiently linked; State funding is mostly used for institutional base funding, only a small part is allocated in competition; The business sector has low expenditures on R&D. Therefore, Lithuanian research and innovation policy aims to strengthen the research system by enhancing human capital in science & technology (researchers), to improve the R&D infrastructure and to change the system of R&D financing (more competitionbased). To strengthen the linkages between the public research sector and the private sector, public-private collaboration in R&D and innovation is stimulated. Main policy measures include: 1. Valley programmes creation and renovation of R&D and study infrastructure; 2. Reorganisation of public research institutes sector; 3. National Integrated Programmes creation of R&D infrastructure, human resources development, science-business cooperation; 4. Researchers Career Programme human resources development; 5. Supporting measures by the Ministry of Economy creation of technology transfer infrastructure, development of knowledge intensive business sector. 2.1.1.1 Valley programmes The valleys policy focuses on the (further) concentration of research, education and technology transfer infrastructure and human resources in regions that have historically evolved strengths. The main valley infrastructure is to be created by implementing 23 R&D infrastructure projects (14 R&D infrastructure projects, funded by the Ministry of Education and Science and 9 science-business cooperation infrastructure projects, funded by the Ministry of Economy). The intended result is to have five valleys in Lithuania. The valleys are being created in the capital city Vilnius, in Kaunas (the 2 nd largest city and the industrial centre), and in the Klaipėda seaport. They will specialise in different scientific research fields 4 (see table below). 4 These fields are: laser and light technologies, nanotechnologies, semiconductor physics, electronics and organic electronics, civil engineering, biotechnology, biopharmacy, molecular medicine, ecosystems and safe environment, PAGE 8
Table 1 Overview of valleys Valley Santara Valley (Vilnius) Sunrise Valley (Vilnius) Santaka Valley (Kaunas) Nemunas Valley (Kaunas) Baltic Valley (Klaipėda) Focus ICT & Life Sciences Centre Centre of Innovative Medicine Nature Research Centre Centre of Physical and Technological Sciences National Open-access Centre of R&D Centre of Sustainable Pharmacy and Health Technologies National Open-access Centre of Future Energy Centre of Agriculture and Forest Sciences National Centre of Marine Sciences and Technologies 2.1.1.2 Reorganisation of public research institutes sector The policy goal is to reorganise and consolidate the current network of 17 State Research Institutes, 18 University Research Institutes and 10 State Research Institutions into 5 Integrated Centers of Science and Research, 6 State Research Institutes and 17 Institutes integrated into universities. 2.1.1.3 National Integrated Programmes As part of the policy on the National integrated programmes for twelve prioritised knowledge-intensive sectors 5, budgets have been made available for: Development of study programmes ( 14m) Training and mobility of scientists and other researchers ( 15.4m) Improvement of common science and studies infrastructure ( 22m) The programme is aligned with the valleys initiative. 2.1.1.4 Researchers Career Programme The Researchers Career Programme aims to encourage permanent professional improvement of scientists and other researchers at all stages of their career. Second, it aims to enhance the abilities of human resources in the sphere of R&D in terms of quality and quantity. Third, it aims to encourage the mobility of scientists and other researchers. sustainable chemistry and biopharmacy, mechatronics and biomedical engineering, energy, information and communication technologies, agriculture, forestry, food scientific research, marine business, as well as natural resources and environmental protection 5 These 12 sectors are: (1) Biotechnology and Biopharmacy; (2) Joint Laser, New Materials, Electronics, Nanotechnology and Applied Physical Sciences and Technologies; (3) Sustainable Chemistry; (4) IT sector; (5) Medicine sciences; (6) Sustainable use of nature environment; (7) Mechatronics; (8) Development of Civil Engineering Sector and Transport; (9) Lithuanian Creative and Cultural Industries; (10) Humanities and Social Sciences; (11) Maritime sector; and (12) Agriculture, Forestry and Food sector. PAGE 9
2.1.1.5 Supporting measures projects of the Ministry of Economy Besides the nine valleys infrastructure projects mentioned above, the Ministry of Economy has additional measures which will benefit the development of valleys. Project-based support is provided for R&D activities of business companies, the development of R&D infrastructure of business companies and for improving the R&D and innovation environment. 2.1.2 MITA, the innovation funding agency The national innovation strategy also led to the establishment of a new innovation funding agency: the Agency for Science, Innovation and Technology (MITA). MITA is the implementing organisation for the two programmes that are the subject of this Peer Review (the High Technology Development programme (HTD) and the Industrial Biotechnology Development (IBD) programme). MITA was established in 2010 as the main government organisation for implementation of innovation policy in Lithuania. MITA was founded by both the Ministry of Economy and the Ministry of Education and Science. Its activities are jointly supported and funded by these ministries. MITA is the successor of the former Agency for International Science and Technological Development Programmes (2002-2010), which was responsible for coordinating International RTD Programmes (FP7). As foreseen in the national innovation strategy, MITA s aim is to foster business and science cooperation and to create a favourable environment for entrepreneurship and innovation in Lithuania. MITA s budget for 2012 amounts to over 6 million. MITA employs 21 staff. MITA s mission is to provide professional services that aim to foster the development of Lithuanian science, industry and services sectors based on advanced technologies and innovation. The vision is to become a leader that helps to realize innovative ideas of Lithuanian business and science. The strategic goal is to stimulate applied research, technological development and innovation in Lithuania. Important tasks of MITA include: To concentrate expert and financial resources (including the EU structural support); To support applied research, technological development and innovative projects; To strengthen the clustering processes and public-private partnerships; To develop innovation management skills, especially in research commercialisation, technology transfer and intellectual property processes. PAGE 10
MITA has four key responsibilities: 1. Coordination of national R&D programmes: High Technology Development programme for 2011-2013 (HTD); Industrial Biotechnology Development programme for Lithuania for 2011-2013 (IBD). 2. Coordination of national initiatives to foster the implementation of innovation: Innovation vouchers 6 ; Protection of Industrial Property Rights 7 ; Joint Research Programmes 8 ; Open-Access Centres 9 ; Clusterisation. 10 3. Coordination of international R&D and innovation programmes: FP7, Eureka, Eurostars, and CIP. 4. International coordination Lithuanian and Israel cooperation agreement in industrial R&D field; Participation in international networking activities (FP7 national contact points network, Eureka national coordinators network, etc.) Membership in the European Association of leading national innovation agencies TAFTIE. In addition, MITA offers services for its clients from business, science and public sectors. Main services include consultations (free of charge) for potential participants in the national and international RTDI programmes, e.g. on possibilities to participate; how to 6 Innovation Vouchers are a new instrument to promote innovations in SMEs, to encourage cooperation between business and research institutions. An Innovation voucher is a small credit that entitles SMEs to buy R&D expertise or knowledge from research and educational institutions. 85 SMEs used innovation vouchers in 2011. 7 In Lithuania there is a special national tool aimed to give financial support for the protection of industrial property rights that covers the patents of inventions and design at the European and international level. 14 projects funded in 2011. 8 Joint Research Programmes (JRP) are designed in order to create conditions for coordination of implementation of research and experimental (social, cultural) development projects financed by the EU structural funds. JRP concentrate the scientific potential of a certain sector, relate Valley projects with the development of the appropriate sectors of R&D and economic activity. In 2011, MITA announced the first call for proposals of joint science and business projects. 95 ideas were received. 9 Open-Access Centres (OAC): Laboratories, created or renewed implementing valley projects and the laboratories currently dislocated in research and higher education institutions will work on the basis of open access. In 2011, the Regulation of Management of Open-Access Centres was approved. MITA is responsible for registration and supervision of OAC. 10 Clusterisation is at an early stage in Lithuania. Current clusters are the Photovoltaic Technology Cluster, Alliance of Baltic Beverage Industry, Laser and Light Science and Technology Association and Modern Housing Development Cluster. There are, however, several sectors that have a potential to form a cluster in Lithuania, e.g. in wood processing and furniture manufacturing; machinery and devices, metal processing industry; food industry; textile and clothing; chemistry industry; laser and their component manufacturing industry; information and communication technologies; biotechnology industry; creative industry; wellness and wellbeing industry; and eco dimension. MITA acts as a facilitator/coach with the main task to identify new potential clusters, to coordinate their activities, to assist young clusters to present their products and services internationally. PAGE 11
write an application; how to manage a project; partner search; financial support; report writing; experts registration. MITA organises information and training events, workshops and seminars, one-to-one meetings and hands-on support covering all stages of the project cycle. Other services in information dissemination (website, leaflets, brochures), providing statistics of Lithuanian participation in R&D programmes, offering assistance in finding partners for R&D and innovation projects and reimbursement of travel costs (international brokerage events, information days). Figure 1 presents an overview of the main actors in the research and innovation policy governance structure in Lithuania. It shows that MITA is the only agency that operates under both the Ministry of Education and Science and the Ministry of Economy. Figure 1 Main actors in the research and innovation policy governance structure in Lithuania PAGE 12
The responsibilities of the various agencies are summarised in Figure 2. 11 Figure 2 Responsibilities of agencies in Lithuania 2.2 High Technology Development Programme for 2011-2013 and the Industrial Biotechnology Development Programme for Lithuania for 2011-2013 2.2.1 Policy rationale and objectives The High Technology Development programme for 2011-2013 (HTD) is a joint programme of the Ministry of Science and Education and the Ministry of Economy. The formal aim of the HTD programme is to help to develop worldwide perspective hightech trends with scientific potential, which makes it possible to create new products competitive in a global market. More concretely, HTD aims to stimulate SMEs in Lithuania to develop new internationally competitive products in prioritised high-tech areas, through R&D work together with Lithuanian universities or public research institutes. HTD offers funding for R&D projects in which firms (SMEs) and universities/research institutes collaborate. HTD focuses on five prioritised high-tech areas: 11 MITA is the Science, Innovation and Technology Agency. LBSA is the Lithuanian Business Support Agency. LIC is the Lithuanian Innovation Centre. INVEGA is the agency to promote SMEs access to financing. PAGE 13
Biotechnology Mechatronics Laser technology Information technology Nanotechnology & electronics By making investments to high-tech R&D projects in which SMEs and public research organisations collaborate, the Lithuanian government expects to create more internationally competitive Lithuanian companies in growing high-tech sectors, leading to economic growth and jobs (especially for high-qualified professionals). In addition, HTD should improve linkages between Lithuanian business and science, leading to better utilisation and commercialisation of research results. HTD also aims to reduce the brain drain problem Lithuania is facing. Finally, it is expected that the programme will encourage foreign investments. The Industrial Biotechnology Development Programme for Lithuania for 2011 2013 (IBD) is a programme of the Ministry of Economy. The aim is to accelerate industrial biotechnology development in Lithuania. The IBD programme is expected to create highadded value products or technologies that can be successfully commercialised. The programme objectives are to create: Materials and products from renewable raw products using biotechnological methods; Bio-plastics and materials to be obtained from renewable raw materials using biotechnological methods; New biocatalysts and develop their application technologies; New pharmacy and veterinary products. The IBD and HTD programmes are highly similar in their approach. In the future, both programmes may be merged into one single programme. This report will focus on the HTD programme and mention differences between the two programmes when relevant. 2.2.2 Beneficiaries and eligibility Both Research and Higher Education institutions as well as SMEs can apply for support. Collaboration between at least one Research or Higher Education institution and at least one SME is mandatory. Project performers need to be legal entities that are registered in the Republic of Lithuania. Foreign parties can participate, but cannot receive funding. Project performers should sign a joint activities (partnership) agreement. The project coordinator should be an SME or a Research or Higher Education Institution in the case of the HTD programme. In case of the IBD programme, only an SME can be the project coordinator a requirement introduced to ensure the projects are businessled rather than science-driven. PAGE 14
2.2.3 Features of the support HTD offers funding for direct project activities which are not funded from other financial resources. Funding is only made available for those research and experimental development activities, works, purchase of equipment, human resources and other instruments without which it is impossible to achieve the project results. The eligible costs categories include: 12 Project personnel costs (up to 60% of one period project budget); Costs of instruments and equipment (up to 50% of each partner project budget); Costs according to contracts; Costs of materials, supplies and similar products; Overheads (up to 10-15% for each project partner for one period). For Research and Higher Education Institutes the maximum funding intensity is 100% of the eligible costs. For SMEs, the maximum financing intensity is 75% of the eligible costs for industrial research and 50% of the eligible costs for experimental development. The procedure for granting support consists of eight steps: 1. Call for applications; 2. Application submission; 3. Administrative evaluation; 4. If accepted, evaluation by experts follows; 5. Further evaluation by Programme Council; 6. The Programme Council makes a ranking of applications; 7. Decision taken by the director MITA; 8. Funding contracts. The procedure starts with a call for proposals. In the first year of the programme (2011) two calls were launched. The first call was launched on 29 April and was open until 27 May (4 weeks). The second call was launched on 14 October and remained open until 9 December (8 weeks). Information about the two calls for proposals was published in the official governmental magazine State news, as well as in press/news portals, partners websites, etc. Information was also distributed by email, using different databases, networks, contacts lists of business organisations and research institutions. MITA s communication and 12 Non-eligible costs include: Penalties, financial sanctions and litigation fees; Debit interests, costs of financial transactions, port, commission charges and losses, which occurred due to foreign currency exchange; other costs related purely to financial transactions; Costs related to loans and leasing; Project preparation costs. PAGE 15
marketing has to ensure that the target groups know about the call for proposals. In its communication the funding opportunities as well as earlier project results and success stories are presented. MITA uses various communication tools, including the MITA website (www.mita.lt), a newsletter (from 2012: only electronic magazine), press releases, publications in dailies, magazines, news portals, etc., information days and conferences. MITA also uses advertisements for general public with the aim to raise awareness about MITA and its programmes. Ads were launched in outdoor screens near the biggest supermarkets in the five largest Lithuanian cities. The MITA website contains all necessary information for applicants regarding the call for proposals, financial and legal information, participation rules, documents and contacts. Proposals have to be submitted by the project coordinating institution (in the HTD programme: an SME or research institution; in the IBD programme: only SMEs). The proposals have to be submitted to MITA in the form of a signed paper plus a CD ROM. The proposal s electronic format is available in Lithuanian and English. In the first call, the proposals had to be in English (to allow evaluation by international experts). The Lithuanian State Language Inspectorate did, however, intervene. According to state language laws, it should be possible to submit proposals in Lithuanian. As a result, both languages were required in the second call. Unfortunately, this implied a higher administrative burden for applicants as well as MITA. After the proposals have been received by MITA, an internal administrative evaluation panel checks whether all requested documents and needed information have been submitted and whether the proposal fulfils the criteria laid down in regulations. The administrative evaluation panel fills in an administrative evaluation table and decides on submitting the proposals for evaluation by experts. Applicants that have made minor administrative mistakes in their proposals get a chance to make amendments. Selection of experts MITA s expert data base consists of several hundred experts from Lithuania and other countries. The first step to become an expert is to complete the questionnaire which can be found on MITA s website. Experts may be candidates from research and higher education institutions, companies, industrial associations and other institutions, if they fulfil all requirements set out in Regulations on organisation of expert assessment in Agency. Experts from research and higher education institutions should have sufficient experience in evaluation and in R&D project planning and implementation. They should also have at least 5 scientific articles in Lithuanian and/or foreign reviewed scientific publications or 3 journals with a citation index. PAGE 16
Experts from business should have sufficient experience in technological development and innovation, and cooperation with academic and research institutions in the field. Their competence must comply with the programme trend. The experts are selected by the Programme Council (see below). The step of evaluation by experts (step 4) begins with the selection of experts by the Programme Council (see below). The experts are given 2-3 weeks to do the evaluation of the proposals they have been assigned. The projects are evaluated according to four main evaluation criteria: 1. Scientific and technological quality: Project idea is relevant to scientific and technological progress; The aims and objectives are clearly defined; Project result new product or technology. 2. Properly planned activities and proper financial structure of the project: Clearly defined activities, project stages, presented clear work plan; Proper timescale; Optimal number of project participants; Reasonable estimate. 3. Project partners collaboration: Partners competence and experience; Partners have clear interests to implement the project and reach the results. 4. Scope of the market: Potential market is considerable and spreading; Possibility to dominate in market niche; Possibility to enter the global market. The experts score the proposals in their reports. In the next step, the Programme Councils gathers all the evaluation reports and discusses the proposals and the experts conclusions. The Programme Council consists of 7 members: 3 from business and 4 from science. 13 The membership is rotating: two members are replaced every two years. If the analysis of the experts scorings reveal discrepancies between scores of experts, the Programme Council may take additional steps. Applicants may be invited to present their proposal to the Programme Council. This happens in the form of a conference in which questionable applications are discussed. The step is concluded by a final ranking of proposals that are eligible for funding by the Programme Council. In this ranking, the 13 The Programme Council also make recommendations on expert candidates to be included in Agency s data base. PAGE 17
Council also takes into account the balance between the five technology areas. For each technology area there is a subpanel. These subpanels make rankings. The rule is that each technology area must have at least one proposal in the positions 1-5 and 6-10. Below the 10, the technology area is no longer relevant for the ranking. Considering the planned budgetary resources, the recommendations by the experts and the Programme Council, the Financial evaluation panel (established by the order of MITA s director) then defines the number of the projects to be funded, the final project costs and their funding intensity. MITA s director makes the final decision regarding allocation of funding and financing intensity, in view of the recommendations of the Programme Council and the Financial evaluation panel. Having made a decision to allocate the funding, MITA concludes the funding contracts with project performers. The contracts are made for one year, although projects may last up to 3 years. This means that project funding is dependent upon the available budgets in a particular year. This introduces uncertainties for the project performers. The governance structure of the HTD programme includes a Technological Development Committee. This committee consists of 5 members from business and science. Its functions are to make suggestions on the composition of the Programme Council and on the funding priorities. It also is a forum to discuss complaints. Finally, the Technological Development Committee evaluates the programme s efficiency and makes recommendations on the improvement of the procedures. For instance, the 1 st call had a criterion that SMEs must co-fund 25% of the project cost. The Council recommended to drop this criterion and in the 2 nd call this requirement was no longer included. The performance of the HTD programme itself is evaluated (by the ministries) in terms of the following criteria, which reflect the multiple purposes of the scheme: Number of new technologies; Number of new products; Number of national and international patent applications; Number of international publications; Number of graduates and scientists in the project; Number of dissertations; Number of new work places. During the implementation of the projects, the project manager has to submit an annual progress report to MITA. (S)he is invited to give an oral report if it is considered necessary. If the project does not run as expected, options include cutting of the budget and cancelation. At the end of the project a final report has to be submitted. In addition, each project partner has to submit a financial report four times per year. PAGE 18
2.2.4 Programme capacity In the table below the number of received proposals for the two calls in 2011 are summarised. In total there were 26 applications in the 1 st call and 72 in the 2 nd call. Table 2 Overview of applications for the 1st and 2nd call in the Technology area 1 st Call 2 nd Call Information technology 8 33 Nanotechnology 7 13 Laser technology 6 10 Mechatronics 2 11 Biotechnology 3 5 Total 26 72 In the 1 st call 15 projects (out of 26 applications) were granted funding for a total amount of 362,195 (for the first project phase, year 2011) and 580,247 (for the second project phase, year 2012). Only 14 projects (out of 15 started in 2011 as one project did not run as expected and was cancelled) were approved for the next phase (2012). In the 2 nd call 10 projects (out of 72 applications) were granted funding for a total amount of 715,362 (for the first project phase, year 2012). The average size of the projects is rather small: 32,498 (1 st call) and 71,536 (2 nd call) With regard to the HTD programme, six projects were funded that had already started when the programme was not yet managed by MITA but by the Research Council of Lithuania. The total budget was 573,447, which amounts to an average project size of 95,575/year. 2.2.5 Programme strengths Based on the information provided by MITA and discussions with representatives of MITA, the Ministry of Economy, the Ministry of Education and Science, and three programme participants, the Peer Review identified as programme strengths: MITA has good relationships with applicants and participants and is responsive to enquiries. When problems arise, MITA is constructive in finding solutions. The HTD and IBD programmes have fast processes for selection and feedback. MITA has a low degree of bureaucracy. The administrative burden for applicants and participants is considered acceptable, although requirements for financial information (which are imposed by regulations of the Ministry of Finance) seem quite burdensome. There is a willingness and capacity to learn from experience with previous calls. When opportune, adaptations are made. PAGE 19
The selection process, with external experts and a Programme Council, allows for well-founded selection decisions. 3 Catalogue of potential good practices 3.1 The selection procedure In the selection procedure of the programme, the Programme Council plays a central role. The Programme Council is responsible for a meta-evaluation of the reviews by the experts. The experts reviews are analysed to see if there are discrepancies between their evaluations of the proposals. In case experts scores deviate significantly from each other, the Programme Council makes its own assessment, based on the information available. The Programme Council has introduced the possibility to invite applicants whose proposal did not get univocal reviews from external experts to a meeting with the Programme Council. In this conference they get the opportunity to further explain their proposals, respond to critical remarks from experts and answer additional questions from the Programme Council. This practice allows for well-informed and careful decisions about which proposals to fund. In addition, the Programme Council also has developed a method to ensure a balanced portfolio. In this method, the positions 1-5 and 6-10 are given to the best and second best proposals in each technology domain. In the remainder of the ranking (positions 11 and further) the technology domain is not taken into account. This method ensures that at least two proposals for each technology domain are selected. The use of a Programme Council as a mechanism for meta-evaluation and ranking and the practice of hearing applicants with proposals that got contradictory reviews is easy to transfer to other contexts where a tender procedure is used. If the programme would be much bigger, however, the option of hearing applicants could become rather timeconsuming and impractical. 3.2 Focus on strong/promising technology areas It is a good practice that the programme focuses on prioritised technology areas. The available budget is limited, so it makes sense to allocate the resources to areas where the largest contribution to future economic growth in Lithuania can be expected. This practice is easy to transfer, as it does not depend on specific contextual conditions. PAGE 20
4 Our understanding of the key challenges 4.1 SMART objectives of the programme The official objective of the programme is to help develop worldwide perspective hitech trends with scientific potential which makes it possible to create new products competitive in a global market. The Peer Review team found this objective not sufficiently clear nor SMART (Specific, Measurable, Attainable, Relevant, Time-bound). The programme could benefit from a rigorous rethinking of the intervention logic, for example through a logic framework analysis in which the project inputs, activities, outputs, purpose and goal are linked in a well-considered way. In practice, the programme appears to aim at multiple objectives at the same time: Stimulate Lithuanian companies to develop more high-tech products/services and be more competitive in international markets; Stimulate the research community to do excellent research in high-tech research areas and thus prevent a brain drain, improve the attractiveness of Lithuania as a location for R&D, enhance the human resources in science and technology and create a knowledge base for companies to draw upon; Stimulate collaboration between the research and business communities in order to increase opportunities for commercialisation of research results and strengthen business-orientation of academic research. These objectives reflect the policy domains of the two principals of the programme: the ministry of Economy and the ministry of Ministry of Education and Science. Further thought is recommended about the relationship between the objectives and about their relative priority. The lack of specificity in objectives is visible in the fact that both an SME and a research organisation can be in the lead of a project. It is also visible in the evaluation criteria that are used to evaluate the programme, which include criteria on the number of new technologies, products and patent applications on the on hand, but also criteria on the number of scientific publications, graduates and dissertations. If, for instance, the programme were to focus specifically on strengthening the capacity of Lithuanian companies to develop and introduce new high-tech products successfully, it might be worth considering to make it mandatory to have companies in the lead of projects. Also the mandatory collaboration with knowledge institutes could be questioned. PAGE 21
The level of funding per project suggests these were feasibility projects 14. However, there doesn t seem to be any opportunity for further follow-on funding. Finally, the programme could benefit from a clearer positioning in the national policy mix. For instance, by making explicit how the programme links up with the valley initiative, and how both initiatives could reinforce each other. 4.2 Budget uncertainty (annual fluctuations) The programme is faced by budget uncertainties. The available budget for the programme is determined on an annual basis. As a consequence, project leaders have to renegotiate the budget for their projects each year with MITA. This introduces uncertainties, which create problems and risks for project participants. It would be preferable that the grants would be awarded for the whole project period, ie that a three-year project gets a budget for the whole three-year period. If this is impossible, project leaders deserve better communication on budget cuts. A budget cut might be (wrongly) interpreted as a punishment for underperformance, while the only reason for cutting the budget is lack of resources. 4.3 Integration of HTD and IBD programmes? The HTD and IBD share many characteristics. Therefore, integration of the two programmes appears to make sense. On the other hand, however, the Peer Review panel notes that the field of industrial biotechnology has different dynamics than the other technology fields, which would call for two separate programmes in which processes and procedures can be tailored to the specific needs of the sectors. If in the future, a specific area was to be chosen for an individual programme e.g. lasers, financial tools evidence should be gathered first on capability, global market etc. The review team did not come to a conclusion on whether generic or specific competitions (or a mixture) were the ideal option. 14 EC definition: projects should aim to acquire new knowledge in order to develop new products or to significantly improve existing products, processes or services. PAGE 22
APPENDIX A Abbreviations CIP EU FP7 HTD IBD ICT IPF JRP MITA Competitiveness and Innovation Framework Programme European Union 7 th European Framework Programme for research and technological development High Technology Development programme Industrial Biotechnology Development programme Information and communication technologies INNO-Partnering Forum Joint Research Programmes Agency for Science, Innovation and Technology LIS Lithuanian Innovation Strategy for 2010-2020 OAC R&D RTDI SME TAFTIE Open-Access Centres Research & development Research, technological development and innovation Small and Medium-sized Enterprise European Network of Innovation Agencies PAGE 23
APPENDIX B Peer Review Agenda Peer Review Agenda at MITA, Vilnius High technology development programme for 2011-2013 (HTD Wednesday 29 February 2012 programme) Industrial biotechnology development programme for Lithuania for 2011-2013 (IBD programme) 09:30 09:45 Arrival & Welcome MITA & Peer Review Team 09:45 10:15 Internal Preparatory Discussion Peer Review Team 10:15 10:45 Introduction of the IPF & Objectives of the Peer Review Eelco DENEKAMP, IPF 10:45 11:05 The Lithuanian Science and Technology Policy Ramunė RUDOKIENĖ, Ministry of Science and Education 11:05 11:25 The Lithuanian Innovation Policy Rima PUTKIENĖ, Ministry of Economy 11:25 11:45 Introduction of MITA Arūnas KARLONAS, MITA PAGE 24
11:45 12:00 Coffee Break 12:00 12:30 The Context and Design of HTD & IBD programmes The policy context for the programmes The policy rationale for the programmes The programmes design process Ramunė RUDOKIENĖ, Ministry of Science and Education Rima PUTKIENĖ, Ministry of Economy 12:30 14:00 Lunch 14:00 15:30 Overview & Operation of HTD & IBD programmes General approach & objective HTD & IBD programmes offerings & instrument Financial aspects Target group/beneficiaries The process of marketing Programme application process Project selection & contracting process Project monitoring 15:30 15:45 Coffee Break Natalija KOŠELEVA, MITA prof. Arūnas RAMANAVIČIUS, chairman of the HTD programme council 15:45 16:30 Beneficiary Perspective Giedrius KAUKAS, JSC Orgsoft dr. Pranciškus VITTA, Vilnius University PAGE 25
Monika KAVALIAUSKĖ, JSC Biocentras 16:30 17:30 Internal work session Peer Review Team (MITA Team will be available if needed) Thursday 1 March 2012 19:00 Dinner 09:30 09:45 Internal Session Peer Review Team 09:45 10:30 Interview Session MITA & Peer Review Team 10:30 11:30 Analysis & Formulating the Provisional Conclusions Peer Review Team 11:30 12:00 Feedback to MITA & Closing Session 12:00 13:00 Lunch PAGE 26