1. The linkages between public research organisations and business sector: the case of Mazovia region in Poland OPEN DAYS 2009 Panel debate: Innovation and the role of the public sector Prof. Marzenna Weresa, PhD World Economy Research Institute Warsaw School of Economics Poland

2. INTRODUCTION Project: „Knowledge Transfer”: An analysis of the linkages between research and business in Mazovia region – a study for the needs of the „ Regional Innovation Strategy ” Performer: World Economy Research Institute, SGH, Poland http://www.sgh.waw.pl/transferwiedzy/ Financing: from European Union funds and the state’s budget within the European Social Fund through acting of 2.6 Integrated Regional Operational Development Program Accomplished in the years 2006-2007 GOAL: Analysis of the scope and forms of cooperation between public research organisations and business sector in the Mazovia region in Poland

3. Introduction: Mazovia’s position in research and innovation activities Relatively high position compared to the rest of Poland according to science development, technology and innovativeness measures (R&D investment level in relation to the GDP= 1.2% and is twice higher than the country’s average) Position of Mazovia remains low compared to leading European regions

4. Mazovia’s position in research and innovation activities In case of investments in R&D there is a gradual weakening of Mazovia’s importance compared to the other Polish regions (Mazovia’s share in investments accounts for 40% of the whole country investments but it is steadily decreasing since 2000 ) Unfavourable investment structure – high share of government funds (62% in 2007) and decreasing share of enterprises (7% in 2006; 6.2% in 2007)

5. The interlinkeages of research and business in Mazovia region - basic information The main part of linkages between research and business has a non- formal character Most important types of linkeage types between research and business  direct implementation of research results into industry  expertise  training Scale and scope of linkeages – measurement difficulties Barriers: lack of evaluation tools; lack of monitoring procedures of knowledge commercialization

6. Main characteristics of knowledge transfer from science to business in Mazovia Relatively low direct absorption of research activity results in the innovative processes within enterprises Scientific research is not created by the demand of enterprises The commercialization of research results through the creating of spin-off is rare Innovation in Mazovia companies are a result of other factors: Knowledge transfer from abroad Incentives to innovate coming from competition (including foreign- owned firms)

7. Main forms of commercialisation of research results in Mazovia in the years 2000 - 2005 (answers of public research entities) Independent implementation Software sales Expertise, consulting Sales of technologies in form of documentation and intellectual poperty Training for companies’ employees Sales of expertise Other

8. Patents and licensing High geographical concentration of patenting and licensing activities of public higher education institutions and R+D entities in Mazovia (Warsaw) The highest amount of patents was registered in the following disciplines: Chemistry, Biotechnology, Electronics and telecommunication. Joint patents of science entities together with companies are occurring occasionally and account for 6.5% of all patents gained in Mazovia

9. Percentage of companies cooperating with science in Mazovia compared to the Polish average  Cooperation is more intensive on average in Poland than in Mazovia  Large companies are cooperating more frequently  Companies from Warsaw have more intensive contacts with science than firms from outside the capital city All firms Small firms Medium firms Large firms Source: GUS

10. Spin-off companies from universities in Mazovia (results of the survey) There are about 50 identified spin-off companies from universities in Mazovia region The majority assesses their position as strong and stable They have to face a demand barrier on the domestic market Sources of success:  Many firms have a unique or the best know-how worldwide  Firms often chose niches and e.g. produce intermediary products  Export and the cooperation with foreign customers are crucial

11. Metropolitan concentration (37 firms out of 50) Geographical location of spin off firms

12. Industry profile of analysed spin-off companies in Mazovia region NACE Section 74 – Other economic activities NACE Section 72 NACE Informatics NACE Section 33 – Production of medical, precise and optical instruments, clocks and watches NACE Section 32 – Production of radio, TV and telecommunication equipment and devices

13. Examples of spin-offs- results of the survey CompanySectorHome unitEmpl oyme nt Market position ConsumersSource of seed capital Patents and licences Company innovation s Barriers to operation LASER- TECH High power lasers Institute of Microelectroni cs and Optoelectronic s of the Warsaw University of Technology 3 The only producer in and the third in the world show business, medicine and science Own capital and capital leased from the university Nonetechnologi cal Bureaucracy lack of competences in marketing, risk of introduction of the innovation’ TOP-GANLasers Institute of High Pressures, Polish Academy of Sciences 17 technological leader Foreign optoelectro nics industry Government subsidies, at present a strategic investor 14 patents of the founding institute, 1 key patent in the contributi on Technolog ical Lack of capital, Low level of business culture

14. Examples of spin-offs- results of the survey CompanySectorHome unitEmpl oyme nt Market position ConsumersSource of seed capital Patents and licences Company innovations Barriers to operation MEDCOM Electric chargers Warsaw University of Technology 72 Technologi cal and commercial leader in Large industry: power industry, means of transport Own, but mainly a bank loan, reinvestme nt of profits 1 application for a patent technologic al, organisation al and marketing Lack of technical staff, shortage of capital APS- ENERGIA Emergenc y power supply systems, transforme rs Industry Electronics Steering Institute, Warsaw University of Technology 150 Technologi cal and commercial leader Large industry: power generation, army. Large advance payment of the first client, reinvestme nt of profits 2 patents a year; 1 licence granted technologic al, organisation al, marketing and informatisati on-related Lack of technical staff SOLARIS OPTICS S.A Optical subassem blies and assemblies Institute of Physics of the University of Warsaw 53Technologi cal leader. High position also in internationa l markets Well-known European companies (eg.Philips) Own funds, later venture capital 10 patentsTechnologic al, process- related, organisation al and marketing Financing of investment

15. Barriers to the development of spin-offs Problems with financing investments at the beginning of a company‘s development Regulations connected with getting certificates, complicated book keeping and bureaucracy damp down the development of small companies Export is limited due to the lack of own marketing and service chains Lack of an entrepreneurial culture Business competencies Sticking to verbal agreements Lack of large Polish industrial customers

16. CONCLUSIONS In the case of Poland the role of the public sector in creating innovations is relatively high. It can be seen in: - Creating innovation policy framework: national & regional level (RIS) - Financing innovation: e.g. Operational Programme „Innovative Economy” - High share of government in financing R&D Examples of industry- university collaboration in Poland: spin-off firms; however there are many barriers (e.g. complicated regulations concerning the establishment of spin-off companies, bureaucracy, etc.) University-business collaboration that contribute to innovative policy making can be developed: -Under the Foresight programmes -in designing R&D programmes when representatives of science and business work as partners in consultation processes or as members of advisory panels etc. -In assessment of research results (if representatives of science and business could work together for the government in order to assess results of R&D programmes) -

17. Thank you for your attention!