World Bank – Government of Hungary Third Forum Knowledge based Economy March 23-26, Budapest FINANCING OF INNOVATION CASE STUDY FROM REPUBLIC OF MACEDONIA
HISTORICAL OVERVIEW • In Macedonia, until 1991, financing of the innovation projects and programs was regulated by: • The Law for use of funds for technological development of Yugoslavia (1987) and • The Strategy for technological development of Yugoslavia (1987) • Fund used represented 0,15% of the estimated GDP of the Yugoslav economy for the given year; 0,1% of the income of the Federation and 0,05% of the funds of respective republics and provinces.
HISTORICAL OVERVIEW • Projects/programs had a coordinator (production based company) and an executor (scientific-research entity). Funds were used to finance projects/programs that belong to following categories: • Development/experimental research, if they involve companies from two or more federation entities; • Projects/programs that are fundamental and relevant for the technological development; • Initial construction of scientific infrastructure.
CURRENT SITUATION • The period after gaining independence (after 1991), is characterized by: • Low level of the economical development • Not favorable conditions for development because of political turmoil and armed conflicts in the region • Insufficient domestic accumulation and need for foreign capital • General technological backwardness and lagging behind new technologies • High unemployment • Efforts to maintain the existing (although not favorable) scientific, personnel and infrastructure potential.
CURRENT SITUATION • The transition period in Macedonia led to: • Change in the economy structure (especially with regard to the ownership structure) • Decrease (disappearance) of the development/research units within the companies • Redirection of the personnel to other activities • Large interest for work in other countries (brain drain).
FINANCING OF INNOVATION • Allocation of funds for initiation and assistance of technological development is executed through an annual public competition implemented by the Ministry of Education and Science. • Following entities are eligible to compete: • Companies • Research/development organizations • Public scientific institutions • Innovation centers • Association of citizens based on innovation and technical advancement • Other legal and private entities active in the field of technological development.
FINANCING OF INNOVATION • The project will be financially supported if it represents: • Common interest for the economy and science; • Development of own technology of products and services; • Optimization of the existing production capacities; • Developing new products; • Development of new technological infrastructure. • Projects/programs are subjected to expert assessment. • Co-financing is up to 30% of the project/program value.
DEVELOPMENT OF A NEW GENERATION OF AEROSOL EQUIPMENT FOR FIREFIGHTING • Scientific institution: Faculty of mechanical engineering • Project cost: MKD 6.300.000 • Structure: applicant’s contribution: MKD 5.600.000 • Ministry of Education MKD 700.000 (11,1 %) • Effects: • New product that satisfies international standards, especially the environmental aspect and is in line with the world trend of eliminating the halons. • It can be used for fire extinguishing in both closed and open spaces, in the electrical industry, in different technological lines exposed to risk of fire, forest fires, etc. • International awards.
DEVELOPMENT OF TECHNOLOGY FOR PRODUCTION OF HIGHLY CONCENTRATED COMPACT DETERGENT • Scientific institution: Technological-Metallurgical Faculty • Project cost: MKD 3.024.000 • Structure: applicant’s contribution: MKD 2.474.000 • Ministry of Education MKD 540.000 (17,8 %) • Effects: • Introduction of a new technology line for production of an environmental friendly detergent • New, high quality product able to compete on the domestic and on the international market • Decreased energy consumption in production process • Savings in storage and transport • Decreased quantity of secondary waste
CONSTRUCTION DEVELOPMENT OF A NEW GVKS SYSTEM OF SEISMICALLY RESISTANT BUILDINGS: “TOWER OF THE SUN” • Scientific institution: Institute for Earthquake Engineering • Project cost: MKD 1.300.000 • Structure: applicant’s contribution: MKD 1.000.000 • Ministry of Education MKD 300.000 (23 %) • Effects: • Upgrade of the classical system of building construction • Decrease of the seismic risk • Savings in the construction of buildings • Awards: Gold medals at Geneva (1995) and Casablanca exhibitions (1998)
ACTIVITIES OFSPATUM • SPATUM is a non-governmental association of inventors with 3.574 individual members and 97 organizations. • SPATUM activities can be grouped as: • Realization of innovative projects/programs (4.589) • Organization of presentations of innovative work (fairs, exhibitions) • Participation at international presentations of innovative work • Macedonian inventors have been awarded with 70 international awards in the period 2000-2003 at the exhibitions in Brussels, Geneva, Seoul, Belgrade, etc.
LESSONS LEARNED & CHALLENGES FOR THE FUTURE • Establishment of a model for unified infrastructure for support and development of science and technology • Development of a system for establishment of priorities in the technological development and their support by the economic policy • Increased financing of projects by private business • Interdisciplinary and multidisciplinary unification of the fundamental and applied research in the function of the development of the state • Larger budget allocations for science and technology
LESSONS LEARNED & CHALLENGES FOR THE FUTURE • Completing the legislation, especially in the part regarding the assessment and acceptance of the projects/programs • Establishment of expert body for science and technology development, under direct jurisdiction of the Government of the Republic of Macedonia • Development of network of national coordinators for activities in the area of science and technology • Networking of domestic and international systems for continuous following of international activities.