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Ss. Cyril and Methodius University Business Start-up Centre

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1 Ss. Cyril and Methodius University Business Start-up Centre
Screening the National Innovation System (NIS) of the Republic of Macedonia Prof. Dr. Radmil Polenakovik National Centre for Development of Innovations and Entrepreneurial Learning & Ss. Cyril and Methodius University Business Start-up Centre

2 National Innovation System Model
Source: O’Doherty, D. and Arnold, E. (2003) Source: Guy and Nauwelaers (2003)

3 1. Overview of NIS Macedonia (a)
A. Public sector: Ministry for Education and Science (MoES) Ministry for Economy (MoE) Other ministries: Finance Agriculture Information society Transport Local self-government Environment and physical planning Universities MANU (Academy) Research institutions Agency for promotion of entrepreneurship State office for intellectual property B. Private Sector Chambers of commerce Private universities Research centers within companies Individuals – inventors NGO’s

4 1. Overview of NIS Macedonia (b)
R&D costs as percentage of GDP Costs \ Year 2003 2004 2005 2006 2007 % of GDP for science / research 0.22 0.25 0.24 0.21 0.18 Participation of the business sector / GDP 0.003 0.015 0.03 0.04 Funds from the state budget / GDP for science and research 0.14 0.12 0.11 0.10 0.09 Participation of the higher education / GDP 0.08 0.05

5 2. Education / Research system
Universities State universities (5) with 60 faculties Public research institutions (7) Private universities (18) with 79 faculties Macedonian Academy of Sciences and Arts Departments (5) Research Centers (2) Independent researchers (21) YEAR 2003 2004 2005 2006 2007 Business sector 67 136 158 78 79 Government sector 829 754 671 668 Higher education 1693 1662 1730 1624 1647 Total 2589 2552 2642 2373 2394

6 3. Enterprise and industrial system
Total number of companies (end of 2009)[1] = , while active: companies: Micro (<9): 59398 Small (10-49): 3706 Medium(50-249): 1159 Big (>250): 204 Organised in 4 main Chambers Economic chamber of Macedonia Association of chambers of Macedonia Economic chamber of Northeast Macedonia Chamber of small businesses Only few companies have their R&D Departments (Alkaloid, Mikrosam, HI-Tech corporation, Plasma, …) [1] Source: Central Registry of Republic of Macedonia

7 4. Intermediaries and science-industry cooperation
20 development and research units in the economy; Technological cores: Natural Sciences and Mathematics, Mechanical Engineering, Faculty of Medicine and faculty; Centers for transfer of technologies: Faculty for Mechanical Engineering, Faculty of Agriculture, Technical Faculty in Bitola and TMF; Regional innovation center in Stip NCDIEL – National Centre for Development of Innovation and Entrepreneurial Learning[1] IC – Macedonian Innovation Centre[2] European Enterprise Network[3] Introduction of Innovative voucher in 2010 by the Agency for promotion of entrepreneurship [1] Funded by Austrian Development Agency [2] Funded by USAID [3] Funded by EU (IPA funds) and Government of Republic of Macedonia (EEN is located at the University Ss. Cyril and Methodius with branches at Agency for entrepreneurship promotion and Economic Chamber of Macedonia)

8 5. Government policy making and coordination of innovation (a)
Ministry for education and science Law for scientific-research activity (2008); Law for the Macedonian Academy of Sciences and Art (1996/2009) Law for encouraging and facilitating technological development (2008); Law for encouraging and assisting the technical culture (2000). Programming function of MoES is determined by: Programme for scientific research; Programme for technological development; Programme for technical culture; Strategic documents in the state. Financing function of MoES is accomplished through: Budget funds (~ EUR / year for scientific projects); Allocations from the business community; International financial support.

9 5. Government policy making and coordination of innovation (b)
B. Ministry for economy B1. Sector for industry B2. Sector for SME development and competitiveness B3. Agency for promotion of entrepreneurship (APE) in the Republic of Macedonia Key documents: Industry policy SME strategy 2010 – 2013 APE scheme – innovation vouchers

10 6. Framework conditions (a)
Support organisations: 2 business start-up centers 4 incubators 1 private technology park – SEAVUS company (under construction) Plans for ERA city (science park) MASIT – ICT Chamber (plans for IT park) Alkaloid company (developed research center in pharmacy) Faculty of Mechanical Engineering (feseability study for technology park) Research centres - only in few companies Association of inventors Main events: MAKINOVA TEHNOMA

11 6. Framework conditions (b)
Funding possibilities: Commercial banks Macedonian Enterprise Development Foundation George Soros (Open Society) Foundation Macedonian Bank for Development Promotion Investment funds (Not well developed, but in total there are 14 investment funds in Macedonia with total venture capital of EUR) Business Angels Network (Not yet formally institutionalized, but a national wide Business Angels Network is ready to be established) No innovation fund yet, but Macedonian Innovation Centre with USAID support will establish this fund in near future

12 7. Involvement in the regional research, innovation and business development initiatives and projects Partner in programs like: CIP IPA related programs FP7 COST EUREKA Transnational programs Bilateral programs (contry to country) UNIDO UNICEF World Bank OECD Donor driven programs (USAID, ADA, GTZ, SIDA, …)

13 8. Main structural deficiencies of Macedonian NIS
Not clear responsibility who will run NIS in Macedonia (there is already established dialog and base between MoE and MoES, but it must be officially structured) Luck of national innovation strategy Very small % of GDP devoted to R&D R&D is focused only within few Faculties Only isolated best practices (Institute for Chemistry, Faculty for Agriculture, Faculty for Mechanical Engineering, YES Incubator, BSC Bitola, …) Weak links with international R&D partners Luck of innovation network Luck of innovation fund and vanture capitalists Business Angel Network is missing

14 9. Main challenges for governance of innovation
To determine inter – ministerial group responsible for development of innovation policy To prepare solid innovation strategy To recognise and finance most proactive innovation drivers (both public and private) To strength capacity of public institutions that deals with STI related issues To reverse brain drain of high educated people (stronger relations with wide spreaded Macedonian researchers) To develop tax incentives for R&D investments To be included in regional innovation policies / strategies To allow to more younger researchers to apply on EU mobility programs (better promotion of programs in Macedonia) To create regional innovation + patent fund To make wider promotion of innovation (schools, media, etc.)

15 Select and package viable opportunities
Case of Macedonian Innovation Center Innovation center Competency Networks Knowledge partners Workforce development Technology Vendors Experienced “coaches” Demand drivers Innovation Center Capacity Building - Organization Capacity - Technical Capacity Select and package viable opportunities Market Readiness Venture Development Innovation center Business Advisors Venture Development Partners Business Incubators Venture Capitalist & Business Angels Service Providers

16 Thank you very much for your attention
Prof. d-r Radmil Polenakovik President of National Centre for Development of Innovations and Entrepreneurial Learning & Director of Ss. Cyril and Methodius University Business Start-up Centre Faculty of Mechanical Engineering Karpos II bb., POBox 464 1000 Skopje, MACEDONIA Tel: / Fax: s:

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