CYPRUS: Prioritisation, Entrepreneurial Discovery and Policy mix in the RIS3 process

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CYPRUS: Prioritisation, Entrepreneurial Discovery and Policy mix in the RIS3 process Portoroz (SI), 15-16 May 2014 Leonidas Antoniou Antonis Theocharous Spyros Avdimiotis

Which issues would you like to discuss and why? - Main bottlenecks in RIS3 development and implementation. - the need for a synthesis of an integrated Vision and the identification of Priorities, taking into consideration the fact that until recently the national RTDI programmes had a purely horizontal nature and, as such, they were allowing the utilization of resources in any research direction. - the rationalised choice between contrasting or/and competitive priorities, philosophies, expectations or desires of various groups/sections of the research and business communities. - Budget Limitations 2

Which issues would you like to discuss and why? - Questions : 1. How to develop S 3 Cy monitoring system? Who should be in charge? 2. How to develop result indicators (in relation to the indicators of the Ops)? 3. How to attract private investments and the participation wider community to S 3 Cy implementation phase? 4. How to make sure that S 3 Cy Action Plan will fulfil the strategic goals if the available resources are very limited due to the economic crisis? 3

S 3 Cy - Vision and Priorities Vision: The emergence of Research, Technological Development and Innovation (RTDI) as: a tool for the amplification and enhancement of the efforts initiated for overcoming the current economic crisis SMART GROWTH as an important diachronic agent for the restructuring and post evolution of the Cyprus economy and society according to the principles set out by the strategic framework Europe 2020 SUSTAINABLE SYSTEM. It aims within a medium to long term time horizon a smart, sustainable and inclusive growth which will rely on knowledge and innovation, the rational use of the available resources and on high employment rates through the enhancement 4 of economic and social development and cohesion.

S 3 Cy - Primary Aim The primary aim of S3Cy is the enhancement of the effectiveness of the RTDI system and its targeted interconnection with the production base in order to enhance the competitiveness of the economy and quality of life in Cyprus. It attempts to support the reformation of the priority sectors, their modernization, their technological diversification, the utilization of new forms of innovation and the penetration into new markets. 5

S 3 Cy - Primary Objectives Promotion of holistic, integrated, complex and multi- parameter solutions that will enhance the competitiveness of the priority sectors. Development of new and support further existing competitive infrastructures and centres of excellence Intensification of the participation of small and medium enterprises in RTDI-related activities and increase of the contribution of the private sector in RTDI investments. Expansion of the ability of the RTDI system to produce results of high standards and utilize them for the benefit of the competitiveness of the economy and social advancement/progress. 6

S 3 Cy - Primary Objectives Development of a critical mass of researchers and job opportunities contributing in this way towards the employment of new scientists. Development of substantial/valid links and synergies between the elements of the quadruple helix, that is the research centers, the institutions of higher education, enterprises, policy makers and other stakeholders from the wider society Enhancement of extroversion of the Cyprus RTDI system in a way that will contribute in an active and efficient way towards the integration of the European Research Area, through the strengthening of the participation in European programmes and initiatives and also through the connection with the international chain of development and utilization of RTDI results. 7

Main successes achieved so far in RIS3 development and implementation Bail-in / collapse of the financial sector Governance: formation of a National RIS3 Governing Board Active inclusion and engagement of all stakeholders (quadruple helix) in the process of developing the S3Cy. Process: Endorsement of a multi-method approach Raising awareness about S3Cy among key actors Entrepreneurial discovery Active dissemination and promotional activities Thematic workshops (focus groups) for in depth and thorough discussion and identification of the sectoral priorities and the funding instruments Renewed debates among policy makers and stakeholders 8

Main bottlenecks in RIS3 development and implementation The novel framework of SS presents theoretical as well as methodological shortcomings with regards to the optimal process of entrepreneurial discovery. Reactions/objections from stakeholders from non selected sectors Reduced to non existent interest/willingness for private R&I investment and funding Methodological gap as to how the implementation of the Smart Specialisation strategy can be measured. 9

RIS3 aproach (design) SWOT VRIO GAP PEST GIS Social Networks RECORDING ANALYSIS AND TAXONOMISATION VISION - PRIORITIES POLICY MIX ACTION PLAN MONITORING AND EVALUATION MECHANISM 10

RIS3 aproach (implementation) Ι. Desk Research Critical Review of the Literature Case studies National and International reports on the economy and RTDI systems Evaluation of RTDI programmes Evaluation of participation in international programmes Statistical data for Cyprus and EU Sectoral Analyses ΙΙ. Field Research Quantitative data: Questionnaires to enterprises Qualitative data: interviews with opinion leaders and focus groups ΙΙΙ. Public consultation Government bodies, universities, enterprises, wider public Governing Board Open Workshop Special Thematic workshops Publicity 11

Priority Sectors Tourism: sustainable tourism, alternative forms of tourism, digital tourism applications, management and promotion of tourism product Energy: renewable forms of energy, solar energy, Solar-thermal technology Solar Photovoltaic, Technologies for Solar Heating and Cooling, energy storage and transfer. Agriculture Food Industry: Agricultural and livestock production, Agriculture, Food Security and Climate Change. Construction Industry: Sustainable Urban Development, Sustainable Construction, Existing Building Stock, Innovative and Intelligent Materials and Reuse of Building Materials, Cultural Heritage. Transportation: Marine, Shipping, Intelligent Transport Systems, road freight. Health: e-health, prognosis - prevention and treatment of diseases, health pharmaceutical industry. Environment and the ICT were defined as important sectors of horizontal character. Environment: Climate Change, pollution, Eco Systems, Eco Innovation, Water Resources ICT: ICT Application, Future Technologies 12

Policy Mix 13

Policy Mix Pillar 1 :Smart Growth Smart Growth concerns the implementation of the primary aim of S 3 Cy for the enhancement of the mechanisms responsible for facing modern development challenges and prospects in the priority sectors selected. Within the framework of «Smart Growth», where most of the resources will be allocated, actions will be supported which are related/concern the following: Implementation of large/wide range transversal and interdisciplinary nary character projects from polymorphic consortia which will aim the implementation of an integrated RTDI strategic framework in the priority areas. Development, from young/promising researchers of high caliber researchers with international recognition in their area, of new research infrastructure and RTDI units that will provide the capability to implement research projects of top level. 14

Policy Mix Pillar 1: Smart Growth Design, development and implementation of research projects in the areas of priority sectors, for the development of quality of life and competitiveness of the economy of Cyprus through the participation of Cyprus in pan- European initiatives of joint programming. Promotion of extroversion, collaboration and networking of research organisations and enterprises of Cyprus with similar entities and institutions from other countries. 15

Policy Mix Pillar 2: Sustainable R&I System The second pillar Sustainable R&I System concerns the safeguarding of the development of a diachronic and dynamic RTDI system which will be capable contributing to the restructuring and post-evolution of the Cyprus Economy as well towards the enhancements of the ability to face/tackle social challenges. 16

Policy Mix Pillar 2: Sustainable R&I System Within the framework of this pillar bottom up actions will be implemented which concern the: Promotion of research excellence through funding of research and innovative research ideas in cutting edge areas. Utilisation, enhancement and mobility of human resources of high specialization and abilities and more specifically young and unemployed researchers and scientists. Development of new products/services/production methods of high added value that can me immediately adopted and utilized by enterprises in Cyprus. 17

Policy Mix Pillar 3: Support R&I System The third pillar Support R&I System relates to the enhancement of the framework, mechanisms and operational structures of the RTDI system in a way that will facilitate and enhance the more efficient and effective development, utilization and promotion of its outputs and results. 18

Policy Mix Pillar 3: Support R&I System Within the framework of this pillar actions of complimentary character to research, development and innovation activities, will be supported. These will concern the: Modernization of the institutional framework with new provisions/arrangements Upgrading of the mechanisms that support the RTDI system Enrichment of the RTDI funding mechanisms Development of research and innovation culture to young researchers and scientists, enterprises and the wider society. 19

Overall S3 self-assessment 20

Next steps - Action plan implementation phase - Connection with the Operational Programmes - Monitoring and Evaluation System 4 Questions 21

Questions How to develop S3Cy monitoring system? Who should be in charge? Why: A monitoring system is required for evaluating the S3Cy implementation process What has been done: A thorough and critical review of the literature has been initiated, however there is still a theoretical and methodological gap as to how the process has to be evaluated and monitored 22

Questions How to develop result indicators (in relation to the indicators of the OPs)? Why: It is important to idle and quantifiable indicators to enable formal and objective assessment of the implementation process What has been done: A methodology has been adopted by the Cyprus team utilising Social Network Analysis methodology. Yet, it remains to be empirically tested. 23

Questions How to attract private investments and the participation wider community to S 3 Cy implementation phase? Why: In an era of severe economic crisis, private investment is critical for fostering further innovation and growth. What has been done: Dissemination activities and workshops have been initiated. What worked:???? Still a question mark! What did not work: The process of convincing investors 24

Questions How to make sure that S 3 Cy Action Plan will fulfil the strategic goals if the available resources are very limited due to the economic crisis? Why: Limited budget implies wider exclusion, less interest and disappointment What has been done: Dissemination of the rationale of the forthcoming research programme 25