monit project background
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Innovation Governance in Ireland: the problem of coherence in a newly emerging NIS Rachel Hilliard CISC Seminar 11 November 2004. MONIT Project Background. 1995 - 2001 OECD project on National Innovation Systems redirecting innovation policy interactive model - PowerPoint PPT PresentationTRANSCRIPT
Innovation Governance in Ireland: the problem of coherence in a newly emerging NIS
Rachel Hilliard CISC Seminar11 November 2004
MONIT Project Background
• 1995 - 2001 OECD project onNational Innovation Systems
• redirecting innovation policy interactive model
• Is it feasible that national governments and their policy making modes can remain largely the same?
Project Methodology
• 15 partner countries – cross comparison• Innovation policy governance• Case study policy areas:
Info Society; regional; environmental
learn from efforts to develop national capabilities for innovation policy governance.
Innovation Policy Governance
1. STI performance
2. Policy challenges
3. Position of STI policy
4. National capabilties for innovation governance
Irish STI Performance
Picture 1: IRL
-3
-2
-1
0
1
2
3A1 INNO-EXP
A2 PATENTS
A4 EMPLOYM. IN MT/HT MANUF.
A5 EMPLOYM. IN HT SERV.
A6 INWARD FDI STOCK
BERD
A7 DIRECT GOV. FUNDING OF BUS. R&D
B1 S&E GRAD. (20-29)
PhDS/10.000 INH.
B2 PUBLICATIONS/MILLION
B3 BASIS RESEARCHB4 SHARE RES. POL IN OVERALL BUDGETC1 BUSINESS FINANCED R&D AT HEI
C2 BUSINESS FINANCED R&D AT GOV.
C4 SHARE OF CO-OP INNOVATORS
D1 TERTIARY EDUC. (25-64)
D2 PARTCIPATION LLL
D3 KNOWLEDGE INVESTMENTS
DX VENTURE CAPITAL
F1m % INNOV. FIRMS MAN.
F1s % INNOV. FIRMS SER.
F2 LABOUR PROD. (HOUR WORKED)
F3 AAG VA IN MT&HT / GDP
IRL Mean
STI Profile
Strong• Employment in med/high tech manuf./services, inward
FDI, S&E graduates, share innovative firms in services and manuf., labour productivity; value added
Weak Patents, BERD, government funding of bus. R&D, publications, basic research, share of R&D in overall budget, business funded R&D at labs and HEI, tertiary education, participation in life long learning, knowledge investments,Profile: Strong company system, good overall performance, weak on knowledge system
Historical Context
1990 largest per capita national debt in the worldunemployment and emigration; stagnation
late industrialiser stimulate the development of an NIS
1990s unprecedented growth, convergence
1993 GNP/capita = 74% of EU average2000 GNP/capita = 97% of EU average
Problems of Convergence
2000 4th in WEF Growth Competitiveness Rankings
2003 30th in Growth Competitiveness Rankings
2000 40% of trade = research intensive
RTI generated abroad technology taker
Technology Balance of Payments (as percentage of GDP), 2001
-0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8
-8.15
United KingdomSwitzerland
Denmark (1999)United States
Japan (2000)Finland
Austria (2000)
Italy
Spain (2000)
Poland (2000)
Australia (2000)
Korea (1999)
Ireland
Profile of Industry and Innovation330 firms research performers
300-400 firms minimum capability
4000 firms low technology SMEs
BERD: 73% of EU and 57% of OECD average
100 firms account for 80% of total R&D spend by business
Continuous R&D performers:
20% of MNCs 10% of indigenous
Policy Challenges
persistent challenges since 1982• competitiveness of indigenous industry• embed MNC industry
sharpened focus
develop a knowledge driven economy• R&D based MNC activity• high tech clustered indigenous industry
Challenges STI Policy
capacity of research institutions to conduct relevant research
attractiveness to mobile MNC R&D
research capacity of Irish firms
pool of high-quality, technical graduates
Policy Mix: National Development Plan 2000-2006
RTDI & Education €698m 28%
RTDI Infrastructure €777m 32%
RTDI & Industry €484m 20%
RTDI networks €267m 11%
RTDI & Natural Resources €227m 8%
RTDI & Environment € 32m 1%
€2471m
Is there coherence in the Irish NIS?
1996 White Paper proposed STIcoordination mechanisms
2002 Commission to examine develop proposals for innovation policy coordination mechanisms
2000- Largest investment in STI in history2006 of the state lacks coordination
1996 White Paper on Science and Technology
need for (i) strong elements in NIS(ii) interactions between elements
Cabinet committee to consider STI supra-departmental STI budget junior minister linking two key departments
proposals never implemented
no common commitment to STI investment culture of departmental autonomy too strong
2002 ICSTI Commission on Policy Framework
• Report under review by Government• Findings unpublished
chief scientific advisor independent of any department
cabinet committee to set priorities
disagreement about location/’control’ 2004 proposals finally implemented
Ireland’s €1.3b STI Investment
PRTLI• Education & Science
• funding of universities’ own research strategies
• collaboration between universities
• infrastructure-focus
SFI• Enterprise Trade &
Employment
• funding of excellent research
in nationally strategic areas
• collaboration with industry
• research based
Implications
• initiated as 2 unconnected policiesPRTLI private donor aiding 3rd levelSFI strategic identification of ICT/BioT
• timing infrastructure decisions preceded research teams awards
• differing budget commitmentsSFI maintained budget when PRTLI ‘paused’
Why does the Irish system lack coherence?
• maturity?
• political culture?
• commitment to the innovation agenda?
Maturity
newly evolving NIS first STI policy – 1996
first significant investments in 2000
STI for 2000-2006 €2.5b
STI for 1994-1999 €0.5b
Political Culture?
‘everyone in Ireland believes in coordination, but nobody wants to be coordinated’
• Department of Finance - strong formal/actual control
• Departmental Autonomy
• Limited use of cross-cutting approach to policy only in response to high-profile priorities (crisis?)
eg: infrastructure; drugs
Commitment?
• Narrow commitment to the innovation agenda:
Enterprise Trade and Employment Ministry= the innovation champion
logic of NIS approach has limited acceptance
failure to persuade wider polity of (i) priority; (ii) potential gains; (iii) costs of
failure
Any evidence of good coordination?
• Around specific external/common issues
Bottom-up work on STI framework conditions:
contracts; IP terms; researcher career paths
implications of the Lisbon Agenda
European Research Area
• 2004 1. Chief Scientific Advisor
2. Knowledge Society Foresight
Conclusions
• Administrative culture
• Political imperative for innovation agenda
• Late industrialiser – emerging NIS
• Future developments?