2012 -2020 National Innovation Strategy of the Republic

2012 -2020 National Innovation Strategy of the Republic of Moldova. Vision, goals and priorities Ghenadie CERNEI Director, Agency for Innovation & Technology Transfer Academy of Sciences of Moldova UNECE Conference 27 October, 2011 Chisinau, Republic of Moldova

Overview • Formally started to be developed in March, 2011 • Republic of Moldova’s Government action plan for 2011 • Working group, representatives of main actors in R&D (ME, MF, MAFI, MEc, MRDC, MEd, MITC, MH, ASM, AITT, IEFS) • Led by vice prime-ministry, ministry of Economy

Development team Valeriu Lazăr Viceprim-ministru, ministru al economiei, Preşedintele Grupului de lucru Sergiu Ciobanu Viceministrul economiei, vicepreşedintele Grupului de lucru Ghenadie Cernei Agenţia pentru Inovare şi Transfer Tehnologic, ASM Viorel Gîrbu Academia de Ştiinţe a Moldovei Ion Lupan Ministerul Economiei Olga Badanova Ministerul Economiei Larisa Ghieş Ministerul Economiei Valeriu Bînzaru Ministerul Finanţelor Svetlana Ostafi Ministerul Finanţelor Victor Donea Ministrul Agriculturii şi Industriei Alimentare Corneliu Mîrza Ministerul Mediului Iurii Socol Ministerul Dezvoltării Regionale şi Construcţiilor Aurel Grosu Ministerului Sănătăţii Nadejda Velişco Ministerul Educaţiei Andrei Cuşcă Ministerul Tehnologiei Informaţiei şi Comunicaţiilor Alexandru Stratan Institutul de Economie, Finanţe şi Statistică Valerian Dorogan Doctor habilitat, prorector pentru cercetare ştiinţifică, Universitatea Tehnică a Moldovei Evtihii Belîi Constructorul şef al SA „Topaz. ”

Goal The goal of this strategy is to define the vision, objectives and measures for creating a sustainable economy based on knowledge and innovation in the Republic of Moldova.

Structure • Part I. Current Situation In The R&D And Innovation Systems • Part II. Defining The Problems That Require Government Involvement For The Strategy Implementation • Part III. 2012 -2020 Vision, Goals, Priorities And Measures • Part IV. ESTIMATED IMPACT OF STRATEGY IMPLEMENTATION AND Funding Mechanisms • Part V. Implementation

RDI Statistics Indicators 2006 2007 2008 2009 2010 GDP (bln MDL) 44. 1 53. 4 62. 9 60. 4 71. 8 GDP (bln EUR) 2. 8 3. 3 3. 9 3. 8 4. 5 GDP per capita (EUR) 689 834 983 944 1122 GERD (million MDL) 201 308 395 354 R&D intensity (GERD as % of GDP) 0. 46 0. 58 0. 63 0. 59 0. 49 GERD per capita (MDL) 50 77 99 89 89 BERD (million MDL) 3. 9 5. 67 7. 25 9. 8 R&D performed by HEIs (%) 14. 1 12. 1 11. 3 13. 1 12. 8 HRST 2945 3100 3247 3279 3469 YHRST 680 869 711 985 1026

R&D recent developments 0. 7 0. 6 0. 5 0. 63 0. 58 0. 59 0. 46 0. 4 0. 3 0. 2 0. 1 0 2006 2007 2008 2009 2010 R&D intensity (GERD as % of GDP) 450 400 3500 350 300 2500 250 200 1500 150 100 500 50 0 0 2006 2007 2008 HRST 2009 YHRST 2010 2006 2007 GDP (bln lei) 2008 2009 GERD (million lei) 2010

Science and innovation in major policy documents

STRENGTH SWOT analysis An existing network R&D and innovation organizations and qualified human resources WEAKNESSES Weak regulation environment and innovation infrastructure An established intellectual property Low financing level (Failure to reach the target management system in dynamic evolution and of 1% of GDP for research, innovation and patenting activities at the European average technology transfer by l 2011) level Relatively good level of R&D Low capacity of the domestic industry to internationalization , associate membership to absorb technological innovation - Weak FP 7 science-industry collaboration Connection both to the innovation system of the CIS (as CIS member) and of the EU (as Associate Member) Weak capacity of the higher education andother specialized entities to provide training and continuous education of specialists in innovation management, protection, assessment and marketing of intellectual property rights

SWOT analysis (cont. ) OPPORTUNITITES Increasing global trend of innovation demand supply THREATS Inefficient economic structure EU support mechanisms (e. g FP 7, cross-border Continuing brain drain cooperation programmes) Facilities provided by free trade regime with Lack of qualified personnel for developing high the CIS and assymmetric trade regime with the -risk, knowledge-intensive innovative EU businesses Existence of a significant scientific diaspora and potential of involving it in the national R&D and innovation activities

Vision By 2020 at least 25% of the national GDP will be generated by innovation activities and "In the period 2012 -2020 the Republic of Moldova will increase its orientation towards innovationbased development and will become competitive regionally and globally in several priority areas, will develop the national education and R&D innovation systems, will enhance performance and create favorable conditions for entrepreneurship, develop and stimulate innovative firms".

Dynamics of the sectors with the highest contribution to the GDP (2001 -2010)

Sectors • Agriculture • ICT • Light industry • Machinery industry • Infrastructure • Renewable energy

Strategy approach • No priority sectors • Support to sectors that will show higher contribution to the GDP and export growth • Encouraging the synergistic development of inter-sectorial tools that will provide capacitybuilding in various economy sectors, in correlation with market demand national and global economic opportunities.

General Objectives A. Creation of enabling conditions for an innovationfriendly environment B. Formation of an educated and creative human capital, able to innovate C. Development of an open, competitive and attractive R&D environment D. Development of innovative companies, with high flexibility and technological excellence

A. Creation of enabling conditions for an innovation-friendly environment A 1. Identification and elimination of barriers; A 2. Improving access to finance; A 3. Counseling services on various innovation aspects; A 4. Venture funds to invest in innovative companies; A 5. Support local innovations through public procurement; A 6. Enhancing the capacity of public institutions in the field of innovations; A 7. Access to international markets with the support of the state’s export promotion activities; A 8. Implementation of an innovation statistics system

B. Formation of an educated and creative human capital, able to innovate. B 1. Increasing the number of young people in the 20 -24 years age group, who reached at least the secondary level of higher education, to at least 78% (today – 60%) B 2. Increasing the number of people in the 30 -34 years age group between, who reached the tertiary level of higher education, to at least 32% (today – cca 20%) B 3. Increasing the number of Ph. D students, especially in the engineering specialties, to reach the EU 27 average. B 4. Increasing the number of employees involved in lifelong learning to at least 15 out of 100 employees. B 5. Development of an entrepreneurial and innovative culture in higher education institutions.

C. Development of an open, competitive and attractive R&D environment C 1. Increasing the number of scientific publications with at least one co-author from abroad, reaching an annual level of at least 250 publications per 1 million inhabitants, including among the TOP 10% cited publications around the world; C 2. Increasing the number of scientific publications with at least one co-author from the business sector; C 3. Increasing the number of foreign Ph. D students and of domestic Ph. D students doing their doctorate abroad; C 4. Achieving the level of the average EU 27 public expenditure for R&D by 2015 and maintaining it until 2020; C 5. Increasing the number of foreign researchers working in the Republic of Moldova; C 6. Developing active university-industry partnerships with companies; C 7. Increasing the number of young researchers to at least 40% of total number of researchers; C 8. Improving the evaluation of R&D and innovation projects by using foreign experts from EU and OECD countries, to a level of at least 50% of the evaluation team; C 9. Improving the structure and conditions of R&D and innovation funding in accordance with existing European programmes

D. Development of innovative companies, with high flexibility and technological excellence D 1. Increasing business expenditure on R&D and innovation (BERD) to the level of EU 27 average D 2. Increasing the share of SMEs developing in-house innovation activities to at least 40%; D 3. Increasing the share of SMEs implementing innovative products or processes to at least 35%; D 4. Increasing the share of SMEs developing joint innovative activities with other firms to at least 10% D 5. Increasing the number of public-private publications to achieve at least 40 per 1 million population, D 6. Increasing the number of patent applications to at least 5 patents per EUR 1 billion GDP; D 7. Increasing the number of applications for trade mark registration to at least 10 applications per EUR 1 billion GDP; D 8. Increasing the number of requests for community designs to at least the double of the current level; D 9. Increasing the involvement in knowledge-intensive activities of at least 15% of employees D 10. Increasing the share of medium and high-tech production exports to 35 % of total exports; D 11. Increasing the share of knowledge-intensive services to at least 50% of exports; D 12. Increasing the share of foreign sales of patents and licenses to at least 0. 5% of GDP.

Expected impact 1. Enhancing national economic competitiveness on local and foreign markets, with high quality and knowledge intensive products and services; 2. Increased domestic and foreign investment in the economy; 3. Job creation; 4. Regional development; 5. Stronger scientific and innovative support to the socio-economic development of the country; 6. Consolidated innovation infrastructure and adjusted to the European practices; 7. Stronger innovative culture and entrepreneurship spirit in the society; 8. Human capital development; 9. Improved management of the national innovation system; 10. Spurred international scientific cooperation; 11. Improved living standards of the population and accelerated transition to the knowledge economy.

Thank you @: Ghenadie. cernei@aitt. md www. aitt. md