INDUSTRIAL AND INNOVATION POLICY IN PORTUGAL

Ana Isabel Serralha

Rita Costa

PORTUGAL

Area: 92072 km² 10 million inhabitants Capital: Lisboa Member of EU since

1986 Currency: Euro

PORTUGUESE ECONOMY 2003

Expected GDP growth: - ¾% Reduction of consumption and investment Budget deficit International incertenty with Iraq conflict Summer fires – total impact still to determine

INDUSTRY AND INNOVATIONINDUSTRY AND INNOVATION

GENERAL PERSPECTIVE

POLICY MEASURES

PORTUGUESE INDUSTRY

No industrial revolution Industrial development

started in the 1950’s EFTA Focus in products of low

added value: sardines, wine, cork, textiles, shoes and automobiles components

Main Industrial Products Cars

Shoes

Diesel

Animal Food

Cables

Wine

Automobile Components

Paper

Radios

Integrated Circuits

Cement

Gasoline

Cork

Hardened

Medicins

INDUSTRY’S PROBLEMS

Low productivity Low level of education and know-how Low level of technological and

organizational innovation Lacking spirit of entrepreneurship Burocracy Regional disparities

INNOVATIONINNOVATION

PPCE: Programme for Productivity and Economic Growth

Improvement of legal and regulatory environments Competition Investment Taxation Protection of intelectual and industrial property Stimulation of R&D

POLICY MEASURES

PROINOV: Integrated Programme for PROINOV: Integrated Programme for InnovationInnovation

MAIN OBJECTIVE: attracting foreign direct investment (FDI) to help creating new jobs in technology-intensive activities

Example of PROINOV’s actions: Promotion of clustering and co-operation for innovation

POSI: Operational Programme on Information SocietyPOSI: Operational Programme on Information SocietyANDAND

POCTI: Operational Programme for Science, POCTI: Operational Programme for Science, Technology andTechnology and InnovationInnovation

MAIN OBJECTIVE: supporting the development of university-industry research consortia including firms and Science and Technology organisations

Important role in :

the strengthening of research carried out by companies

IDEIA: Applied Research and Development in CompaniesIDEIA: Applied Research and Development in Companies

MAIN OBJECTIVE: developing university-industry research consortia

Important role in :

the strengthening of research carried out by companies

the intensified co-operation between research, universities and companies

the strengthening of companies’ ability, particularly SME’s, to absorb technologies and know-how (creation of R&D teams in companies)

The participants of the programme IDEIA can benefit from financial and fiscal incentives.

NEST: New Technology-Based FirmsNEST: New Technology-Based Firms

MAIN OBJECTIVE: supporting new technology-based firms (NTBF’s) through venture capital investment

Important role in :

the strengthening of research carried out by companies

the start-up of technology-based companies

the increase of the larger public’s awareness to the relevancy of an active Innovation Policy

The support given to NEST companies includes:

• financial support

• recruitment of doctors and masters

• venture capital investments up to 90% of a NEST companies’ capital

QUADROS PROGRAMMEQUADROS PROGRAMME

MAIN OBJECTIVE: improving the level of technical skills in SME’s through financial support for the wages of young engineering, economics, management and scientific graduates recruited by SME’s.

Important role in :

the mobility of students, research workers and teachers

the fostering of innovative organisational and management practises in enterprises

the strengthening of research carried out by companies

the strengthening of companies’ ability, particularly SME’s, to absorb

technologies and know-how

MTTQS: Measure for Supporting the MTTQS: Measure for Supporting the DynamisationDynamisation of of Technology, Training and Quality SystemsTechnology, Training and Quality Systems

MAIN OBJECTIVE: promoting pre-competitive research projects developed between technology, training and quality infrastructures organisations and companies.

Important role in:

the encouraging of R&D activities

the strengthening of research carried out by companies

the intensified co-operation between research, universities and companies

EDUCATION RELATED MEASURESEDUCATION RELATED MEASURES

The Portuguese Government has tried to improve the Educational Policy by:

• giving scholarships to the best students in different fields

• creating a new Ministry for Science and Higher Education

• creating a Comission on the Teaching of Mathematics and Science

• promoting life-long learning

• supporting the recruitment of graduates by companies

THE END