1 Carlos Alejaldre Director General Technology Policy, Ministry Education and Science, Spain 11 November 2005 Experience at Member States Level with Strategic Research Agendas (includ. PPPs) Spain

2 Outline Main challenges of the Spanish economy & the Science – Technology – Business System Inmediate response - on going PPPs actions. Medium term response: INGENIO 2010 Program. Description Objectives Conclusions

3 Real convergence in employment rate, but… still far from the Lisbon objectives Divergence in productivity Still significant gap in Technological indicators Competitiveness lose and inflation gap Challenges of the Spanish economy

4 The Spanish Science-Technology- Business System Catching up process in R&D and Innovation indicators but at low rate Bigger gap in GERD (52% aver.EU) than in GDP (85%). Still Insufficient share of GERD financed & performed by the business sector. Low BERD in relation to industrial added value. Business participation in national programmes dominated by SMEs.

5 The Spanish S-T-B System Insufficient Human Resources in R&D (84% aver. EU), mostly in Business sector (27% vs 49%) High increase in the scientific production of Spanish researches with moderate impact (SCI). Very low patent level. Few EPO and triad patents obtained by Spanish residents.

6 Running actions for PPPs Generation of knowledge Scientific Publications Generation of technology Patents Universities Tecnology Centers Scientific Parks Public Research Centers Role of the Directorate-General for Technology Policy (DGPT): linking across RTD agents Scientific and technological infrastructures Science-Technology- Business System Enterprises

7 OBJECTIVES R&D Boosting Investment In 2005, the public budget allocations for civil R&D&I grew 27%. In the budget proposal for 2006 an increase of 31% has been approved. Government´s commitment to maintain a minimum annual increase of 25% until More balanced increase between financial (credits & loans) and non financial (subsidies) public spending More ambitious goals R&D Intensity of 1,4% in BERD share of 59% in GERD. Total researchers (FTE) per thousand of labour force: 5,4 (5,9 in EU) 100 NTBF per year from the public sector in 2007 (3 times the 2003 figure). 600 new researches positions in the private sector (2 times the 2003 figure) Information Society Convergence Plan: 7% of GDP devoted to IT in 2009 (from 4,8% in 2004)

MINISTERIO DE EDUCACIÓN Y CIENCIA 8 ON-GOING ACTIONS Drive a Cultural Change Technology Transfer. Cooperation among different actors. Incentivate tecnology development in knowledge world. Human Resources Policy I 3 Incorporate. Incentivate. Intensify. Specific support for PPP projects Small dimension cooperative projects (Public 15%). Large singular and strategic PPPs ( 6 M, 3 years). Promotion scientific and technological networks-platforms.

9 SPANISH TECHNOLOGY PLATFORMS National Platforms promoted by DGPT Hydrogen and fuel cells Fotovoltaic Solar Power Electrical networks of the future Biomass (in preparation) Wind power National Platforms with DGPT presence Manufuture Construction DGPT 2005 Call for creation of technology networks & platforms 57 proposals received

MINISTERIO DE EDUCACIÓN Y CIENCIA 10 ON-GOING ACTIONS Drive a Cultural Change Technology Transfer. Cooperation among different actors. Incentivate tecnology development in knowledge world. Human Resources Policy I 3 Incorporate. Incentivate. Intensify. Specific support for PPP projects Small dimension cooperative projects (Public 15%). Large singular and strategic PPPs ( 6 M, 3 years). Promotion scientific and technological networks-platforms. Development of Technology Infrastructures Science and Technology Parks R&D Centers (Public and Private), Spin-offs, Technology transfer space. 20-year Roadmap Singular S-TECH Infrastructures

PROYECTOS ESTRATÉGICOS PLATAFORMA ESPAÑOLA DE CONSTRUCCIÓN 11Junio 2005 La Ciudad Multidimensional Proyecto Científico-Tecnológico Singular y de carácter Estratégico Presentación: Carlos Bosch DRAGADOS

PROYECTOS ESTRATÉGICOS PLATAFORMA ESPAÑOLA DE CONSTRUCCIÓN 12Junio 2005 Development of a sustainable and innovative environment for the city of the future Optimize construction mechanisms to achieve maximum efficiency in planning materialization and management. Improve environment knowledge to improve labor safety and health. Achieve an environmental development minimizing the construction impact and a great satisfaction of final users. Develop the appropriate technologies to be able to consider all aspects of subterranean works along the full life cycle in an integrated way. PROJECT GOALS THE MULTIDIMENSIONAL CITY

PROYECTOS ESTRATÉGICOS PLATAFORMA ESPAÑOLA DE CONSTRUCCIÓN 13Junio 2005 CONSORCIO DE EMPRESAS

PROYECTOS ESTRATÉGICOS PLATAFORMA ESPAÑOLA DE CONSTRUCCIÓN 14Junio 2005 CONSORCIO DE EMPRESAS

PROYECTOS ESTRATÉGICOS PLATAFORMA ESPAÑOLA DE CONSTRUCCIÓN 15Junio 2005 CONSORCIO DE EMPRESAS

PROYECTOS ESTRATÉGICOS PLATAFORMA ESPAÑOLA DE CONSTRUCCIÓN 16Junio 2005 CONCLUSIONES TRABAJO MULTIDISCIPLINAR Proyecto Científico-Tecnológico singular de carácter Estratégico The Multidimensional City is a joint initiative among Industry, Technology Centers, Universities, Public and Private Research Centers and other organizations.. TECHNOLOGYPEOPLE INTELLECTUAL PROPERTY MANAGEMENT ORGANIZATION Total Budget : 55 M

17 RUNNING PPP ACTIONS The Singular & Strategic Projects Approved projects at 2005 Call ENERGY AREA (1) DEVELOPMENT, DEMONSTRATION AND EVALUATION OF FEASIBILITY OF ENERGY PRODUCTION IN SPAIN FROM ENERGETIC CROPS BIOMASS The projects goal is the development in Spain of energy production from energetic crops biomass. For this purpose field demonstrations will take place, looking at different alternatives of crops and final applications (electricity, heat, biofuels, etc). Total Budget : 58 M Participants: CIEMAT, Univ. Polit. Madrid, INIA, EHAN, SINERSYS, ITA, Abengoa Bioenergy, ECOAGRICOLA, Fundación Soria Activa, Valoriza, Eneragro, Asaja, Asesoría Industrial Zabala, BioEbro, CIRCE, TAIM, Guascor, Univ. Sevilla, Greencell, Biodiesel Catarroso, Univ. Pontifica Comillas Sub-projects: 12 FUEL CELLS DEVELOPMENT Development of PEM Fuel Cells (mini-cells and bipolars). The project includes the development of components, stack assembly, caracterization, engineering developments for real conditions of use, and testing in low-power pilot applications. Total Budget : 6 M Participants: Hynergreen, AJUSA, CEGASA, David FCC, INTA, Fundación CIDETEC Sub-projects: 3

18 RUNNING PPP ACTIONS The Singular & Strategic Projects Approved projects at 2005 Call ENERGY AREA (2) BIOCLIMATIC ARCHITECTURE The projects goal is the demonstration of bioclimatic architecture and solar energy adequacy as basic elements for future buildings. Aspects such as active and passive solar energy, cooling, air treatment, energy efficiency,... will be dealt with. Total Budget : 25 M Participants: CIEMAT, Acciona, Atersa, Barredo, Dragados, FCC, Gamesa, Isofotón, OHL, UAL, Univ. Oviedo, Unisolar. Sub-projects: 9 DEVELOPMENT AND INTEGRATION OF ELECTRICAL MICRONETS INTO THE DISTRIBUTION NETWORK Development of new products, equipments and systems required for development of low-voltage electrical micronets to be integrated into the distribution network. Real micronets will be built for different demand scenarios and network conditions that include renewable energies and cogeneration. Total Budget : 7 M Participants: Iberdrola, Ingelectric, ZIGOR, ARTECHE, ORMAZABAL, ZIV, Intekia, Team Arteche, Air Liquide, Labein, Robotiker, Univ. Sevilla, Cluster Energía, INSASMET, Instituto Cerdá, Energía Serveis Sub-projects: 7

19 RUNNING PPP ACTIONS The Singular & Strategic Projects Approved projects at 2005 Call ENERGY AREA (3) ENERGY FROM SEA WAVES The projects goal is the construction of experiemental infrastructure for sea waves energy production, and the development and demonstration of different technologies for equipment. Total Budget : 17 M Participants: Tecnalia, Arteche, Azti, Cetmar, Ciirc, Hidroflot, Iberdrola, Inasmet, Ingehydro, Labein, Made, Pipo, Robotiker, Tamoin, Team, Vicinay, ZIV Sub-projects: 5 ADVANCED GENERATION PROCESSES, CO 2 SECUESTRATION AND STORAGE. The objective of the project is to make available technological solutions for sustainable use of coal, focussing in energy generation technologies with low CO 2 production which facilitate sequestration, the CO 2 separation technology itself, and the analysis and development of CO 2 geological storage capabilities. Total Budget : 120 M Participants: CIEMAT, CSIC, IGME, Univ. Castilla-La Mancha, CIRCE, ELCOGAS, ENDESA, Técnicas Reunidas, Empresarios Agrupados Sub-projects: 6

20 RUNNING PPP ACTIONS The Singular & Strategic Projects Approved projects at 2005 Call INDUSTRIAL DESIGN AND PRODUCTION AREA MADRID SUPERCOMPUTING AND VISUALISATION CENTER (CESVIMA) Creation of a Supercomputing center in Madrid in support of the Barcelona Supercomputing Center, aiming at offering their services to public and private entities. Total Budget : 14 M ROVER ENVIRONMENTAL MONITORING STATION Development of a platform for measuring diverse meteorological parameters in Mars surface, to be incorporated to NASAs Mars Science Laboratory (MSL) mission in The REMS platforms will measure pressure, humidity, wind, atmosphere and soil temperature, UV radiation. Total Budget : 10 M

21 RUNNING PPP ACTIONS The Singular & Strategic Projects Approved projects at 2005 Call BIOMEDICINE AREA R&D ON NEW DRUGS FROM MARINE ORIGIN Research on new drugs with anti-carcinogenic activity from marine organisms. Total Budget : 5 M Participants : Pharmamar and other national and international Hospitals and R&D centers Sub-projects: 8 NEW TREATMENTS AND DIAGNOSTICS FOR RARE METABOLIC DISEASES Research in new drugs and treatments based in new technology of existing drugs sieving. Total Budget : 12 M Participants : Orphan Red, Fundación IMABIS, Hospital Clínico Provincial de Barcelona, Fundación Valenciana Centro de Investigación Príncipe Felipe, Centro Nacional de Investigaciones Cardiovasculares Carlos III, Fundación para Cooperación y Salud Internacional Carlos III Sub-projects: 6

22 More R&D Efficient Management More flexibility in credits to SMEs. No deposits guarantees to access soft R&D credits Less red tape. Forthcoming changes in the Subsidies Law to speed up the procedures and reduce the bureaucratic pressure to researches Revision of the University Law to promote academia-industry mobility More efficient tax incentives Efficient Assessment Re-launching of the Integrated Follow-up and Assessment System (SISE) Programme assessment by expert groups. Annual reports. Programmes revision

INGENIO 2010: NEW STRATEGIC ACTIONS Programs Actions 1. CENIT Program for increasing public- private cooperation 2. CONSOLIDER Program for increasing the critical mass and excelence in research 3. Plan for converging with EU in Information Society a)CENIT Projects b)Fund of funds c)Torres-Quevedo a)CONSOLIDER Projects b)CIBER c)I 3 d)Scientific-technological facilities a)Companies b)Administration c)Education d)Homes Focussing additional resources

25 CENIT Program for public-private cooperation CENIT Projects FEATURES OF THE NATIONAL STRATEGIC CONSORTIA FOR TECHNOLOGICAL RESEARCH (CENIT) Long term cooperation agreements between public and private research groups for implementing a joint research programme Participation of at least 4 companies (two of them SMEs) and two public research centers Minimum time-scale of 4 years, with possible extension Minimum annual average budget of 5 million Euro Funding and participation rules 1.Private funding above 50% 2.Minimum participation of 25% of Public Research Centers or Technology Centers Budget: 1000 million Euro in four years (500 million from private sector)

26 Torres-Quevedo The Torres-Quevedo Programme finances the recrutiment of PhDs and RTD skilled engineers in support of research projects performed by companies. Several studies have demonstrated the positive impact of the programme in the private sector research capacities. In the call the volume of grants has duplicated, raising the number of doctors becoming integrated into the applicant companies from 340 to 780. The programme will continue growing up considerably, reaching 1300 incorporations in CENIT Program for public-private cooperation

CONSOLIDER Program for increasing the critical mass and the scientific excellence CONSOLIDER Projects OBJECTIVES Increase the medium size of de research groups, increasing the funding of the best research lines, reducing the fragmentation of research activities and fostering the participation of public research centers in the EU RTD Framework Programme. DESCRIPTION Large-scale, long-lasting actions for excellent research groups, centers and public consortia. Development of research lines vs traditional project-oriented model SELECTION CRITERIA Increase of excellence and improvements in Framework Programme participation Reducing fragmentation Initial assessment: through ANEP and panels Prioritised list for funding Intermediate and final evaluation, with options for extension if excellence is demonstrated BUDGET: 150 MEuro in four years

CONSOLIDER Program for increasing the critical mass and the scientific excellence CIBER Projects OBJECTIVES Promote excellent research in Biomedicine and Health Sciences, performed within the National Health System and the National Science and Technology System, by developing and supporting the Networked Research Structures. DESCRIPTION Evaluation of the Thematic Networks for Cooperative Research created in 2002 and establishment of stable funding mechanisms for those considered scientifically excellent. Co-funding around 20% by Autonomous Communities SELECTION CRITERIA Scientific Excellence Clear orientation towards the transfer of knowledge from Public Research Centers and Universities towards the clinical pratice in the National Health System. BUDGET: 350 million Euro in four years

CONSOLIDER Program for increasing the critical mass and the scientific excellence Strategic Fund for Scientific and Technological Infrastructures OBJECTIVES Ensuring the availability and update of the scientific and technological equipment and facilities for the agents of the science-technology system, and promoting the Scientific and Technological Parks linked to Universities and Public Research Centers, as well as the Strategic Singular Projects for technology development. Supporting the creation of stable, singular infrastructures for promoting the public- private cooperation, and providing the Large Scientific and Technological Facilities with the resources required for their use in the international context. DESCRIPTION The State will prepare a strategic, nation-wide map of future singular scientific- technological facilities to be built in the next 20 years. The Autonomous Communities (CCAA) will co-fund those facilities located in their territory. RENOVE call for updating the medium-size equipment at Universities and Public Research Centers. BUDGET: 1000 MEuro in four years, including CCAA funding.

Improved management and evaluation INGENIO 2010: BETTER EVALUATION OF RESEARCH AND INNOVATION POLICIES Assessment of programs by expert groups Annual report with recommendations Revision of Programmes approved by CICYT The Government has put in place a new mechanism for the following-up and evaluation of the instruments and programs in the National RTD and Innovation Plan: the Sistema Integral de Seguimiento y Evaluación (SISE). Until now the expost evaluation of the results of the RTD and innovation programs was scarce and not systematically applied. Continuous evaluation is essential for revising and correcting the actions in place and for identifying the need for new actions.

INGENIO 2010: Objectives Reaching 55% of private contribution to RTD expenditure in 2010 (interrupting the negative trend of recent years) % Private contribution to RTD new objectives Previous trend The Lisbon Strategy establishes the objective for 2010 of two thirds of EU RTD funding coming from private sources

INGENIO 2010: Objectives Reaching 0.9% of public expenditure in RTD / GDP in 2010 New objectives of RTD public funding Previous trend

INGENIO 2010: Objectives Reaching at least 1300 PhDs incorporated to the private sector through the Torres Quevedo Program in 2010 (almost a factor 4 over the figures) Incorpotation of PhDs & highly skilled RTD engineers to the private sector (Torres Quevedo) Previous trend Number of PHDs / highly skilled RTD engineers

INGENIO 2010: Objectives Increase the number of spin-offs emerging from public RTD centers up to a minimum rate of 130 new companies per year by 2010 Previous trend Growth rate of new Spin-offs created from initiatives of the public RTD sector Number of companies

INGENIO 2010: Objectives Plan reaching by 2010 the average EU expenditure/GDP in CIT (raising from 4.8% in 2004 to 7% in 2010) Impact of the convergence plan to UE15 in terms of investment in CIT % CIT investment / GDP Previous trend Anticipating nearly 20 years in relation to the previous trend

INGENIO 2010 PROGRAM INGENIO 2010 implies an improved policy management and a stronger focus of the additonal resources in strategic actions aiming at more challenging objectives 1. More resources 2. Focussed in three strategic lines: CENIT CONSOLIDER 3. Improved management and evaluation % RTD expenditure / GDP Allow us to reach more ambitious objectives Previous trend

37 Conclusions Higher R&D&I investment, better focused and managed, seeking to improve the overall productivity of the Spanish economy Improve the productivity of the Spanish economy Improve the productivity of the Spanish economy More & Better R&D+I More & Better R&D+I Increase resources Increase resources Corporate R&D+I Corporate R&D+I Critical Mass Excellence in R&D Excellence in R&D Lisbon Agenda 3% of GDP 2/3 from the private sector Lisbon Agenda 3% of GDP 2/3 from the private sector