1. Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’
April, 2016

2. Goal
Share the story of Lithuanian Valleys - experience in making higher education institutions and research institutes “smarter” and more competitive on a global scale:
The Lithuanian Valleys
Valleys Projects implementation
Lessons Learned
Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

3. Needs and challenges
Lithuania decided to invest 10% of total EU funding into research and innovation
One of the key elements of this investment was development integrated science, studies and business centers (Valleys) in parallel with investments into science-business cooperation, human capital development
Time
Value
2010 -
crisis impact
Northern Europe service center
Secure the fundamentals and develop the hub positioning
Focus on investments in priority sectors
2015
Innovation center
Become a Northern Europe innovation center
2020
Initiated in 2006, actual start in 2009, along with higher education and science institutional reform
Need to increase quality and quantity of science results
Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

4. Valleys objectives
In 2007, the ‘Valleys’ were conceived as a mean of tackling a fragmented innovation system with poor investment levels, notably in business sector. A Valley is an integrated science, studies and business centre “concentrated in one area with shared or interrelated infrastructure”. Main objectives:
Consolidation of scientific potential and research infrastructure in 5 Valleys (20+ projects)
Development of research, studies and knowledge economy clusters of international level
Implementation of Open access principle
Creation of conditions for the establishment of knowledge-intensive businesses
Investment into laboratory equipment, 153 EUR
Investment into the construction or renovation of facilities, 108 EUR
Investment into business incubators and technology transfer facilities, 25 EUR
Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

5. Five science, education and innovation ‘valleys’
Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

6. Approach to implementation
Infrastructure development
Strategy and planning
Review of priorities and programming instruments
Business planning
Marketing strategy & PR
Investment models
Management and coordination
Management & coordination model
Research infrastructure management
Research center management model
Monitoring & assistance
Supervision of projects development and programme execution
Training
CHANGE MANAGEMENT
Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

7. Identity of Valleys Specialization Integration (national) Mobilization
Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

8. Business planning – what are our goals & target audience
2014
2015
2016
2017
2018
2019
2020
Service to External Users
International Grants
National Grants
Funding from State Budget
Commercialization revenues
Special Projects
Other Revenues 14 29 43 58
Millions, EUR
OACs’ forecast cumulative revenue
Four essential questions:
Who are these guys? What have they done before? What have they achieved and where have they failed?
Whom do they know and who knows them?
Are they attractive to attract attractive people?
How will they behave in times of crisis?
If all questions are answered sufficiently positive, you can ask the next two questions:
For what will they spend money?
From where will they get/generate the money?
Revenue trends remain dependent on public funding
Elements of a business plan
A research agenda;
Capable people;
The offer;
Understanding of users;
The infrastructure;
The management;
Results (KPIs);
Money: Money out (budget), money in (funding).
Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

9. Performance indicators
Publications
IF journals / ISI
Others
Patents or other formal IPRs
National
Patents or other formal IPRs: EPO, US, Japan
Prototype, methodology, utility model and industrial design
Income from contract research
EUR
% of income
Income from use of infrastructure by external parties (services)
Income from competitive funding
National (EUR)
National (% of income)
International (EUR)
International (% of income)
Training
Number of completed MA graduates
Number of completed PhD graduates
Number of students using the infrastructure
Involvement in Master / PhD programmes
Number of collaborative projects
Establishment of spin-off companies
2014
2020
2015
2016
2017
2018
2019
Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

10. Investment models
Finance attraction strategy – investment model should help management and other stakeholders to ensure successful further development of the R&D infrastructure projects.
Investment models consist of:
investment schemes - private investments, foreign direct investments, PPP, other;
alternatives analysis - pros and coins, legal issues;
acceptability process - evaluation of particular alternative, milestones for applicants;
practical implementation steps.
Investment schemes
Alternatives analysis
Acceptability process
Implementation steps
Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

11. Lessons learned
Too early to judge as development still in progress, although:
Slow but obvious change in researches and administration attitudes
Initial results of newly established centers (increase of cooperation with business, science consolidation activities within institutions, technology transfer developments) inspire others to follow
Gaps to be closed in the future become apparent and can be planned in more structured way
Lessons learned so far:
Support from key stakeholders as well as holistic view over the process is critical
Absorption of funds not as fast as planned
Better initial planning would save a lot of time and efforts
Thorough evaluation and alignment of research and business current status and potential is key to deciding on the clusters development (“smart specialization” analog)
Different models and international practices are very useful, but right people in the right places and change enablement process management are key for success
Change process is long therefore robust monitoring and analysis is critical before the start of the process
Central Project Management Unit helps to close operational gaps and deficiencies in program implementation process
Impact of EU structural funds in research and innovation: the experience of the Lithuanian 'Valleys’

12. Questions?
Thank you!