“Developing a Culture of Science, Technology, Innovation and Quality in Paraguay”

CONACYT Overview & ParaguaySTI System

Idelin Molinas Vega, Ph.D., PMPExecutive Secretary

imolinas@conacyt.gov.py

February 2017

Road Map

Paraguay Overview CONACYT in context

◦ Mission and Policies◦ Strategies and Initiatives

Main STI Indicators R&D Projects and Innovation Results Challenges and Next Steps Key Success Factors

Paraguay at a Glance

DESCRIPTION PARAGUAY

GDP (US$ billions) - 2015(*) 28,10

GDP per capita (USD$) - 2015 (*) 4.010

GDP (PPP) per capita (US$) - 2015 (*) 8.708

Exports/GDP 29,9%

% Poverty/Total Population(% extreme poverty) - 2015 22,24% (9,97%)

Area (1000 km2) 406,80

Population (millions) - 2015 (*) 7,00

(*)Fuente: Global Competitiveness Report 2015-2016

DESCRIPCIÓN PARAGUAY EL SALVADOR URUGUAY COSTA RICA

GDP (US$ billions)(*) 28,10 25,80 53,80 52,90

GDP per capita (USD$) (*) 4.010 4.040 15.748 10.936

GDP (PPP) per capita(US$) (*) 8.708 8.303 21.507 15.482

Area (1000 km2) 406,80 21,00 176.2 51.1

Population (millions) (*) 7,00 6,40 3,40 4,80

Global Competitive Report2015-2016 (140 countries)– 12 pillars

118 95 73 52

Global Innovation Index(128 countries) 2016 – 7pillars

94 104 62 45

(*)Fuente: Global Competitiveness Report 2015-2016

PY and other LA Countries

Paraguay Exports - TechnologicalSophistication Level

Aggregate Level 2007 2010 2013 2016

Raw Material 43% 55% 59% 56%

Processed Raw Material 10% 8% 10% 10%

Low Technology 4% 4% 4% 4%

Medium Technology 2% 1% 2% 3%

High Technology 1% 1% 1% 1%

Other Transactions / w/o specified level 40% 31% 24% 26%

Total (Thousands US$ CIF) 4.723.764 6.504.792 9.456.264 8.493.664

Paraguay’s Exports (selected years)

Vision of Paraguay 2030 (highlights)

A competitive Paraguay, ranked among the most efficient producers of food

with vibrant and innovative industries, employing highly qualified workforce

Provider of high technology products in a knowledge-based economy

Connected and open to the neighbors and the world

Indices of social development in the highest ranks of South America

Environmentally and economically sustainable

A high level of legal and public security

Attention to indigenous peoples, a strong role of women in the society, and trained

young visionaries leading the country

A supportive and transparent state that promotes equal opportunity

PovertyReduction& SocialDevelopment

PovertyReduction& SocialDevelopment

InclusiveEconomicGrowth

InclusiveEconomicGrowth

Insertion ofParaguay inthe world

Insertion ofParaguay inthe world11 22 33

Strategies within the PND2030

• Established in 1997 (Law 1028/97)• Updated by Law 2279/03

CONACYT - MISSION

Coordinate, evaluate and promote the National

System of Science, Technology and Innovation and

the National System of Quality, generating and

promoting Public Policies and Strategies for

scientific and technological development, in a

social, ethical and environmentally sustainable

manner.

ExecutiveSecretary of

CONACYT (STI)

Council

PRESIDENT

General Directorateof Finance andAdministration

Presidency of the Republic

MICMAGMSPyBSSTPMEC

Public Univ.Private Univ.

FEPRINCOUIPAPYMEARP

Executive Secretary ofONA (National

Accreditation Agency)

National QualityCommission APC

PY ScientificSociety

Worker’s Union.

CONACYT

STAFF

MIC: Ministry of Industry & Commerce MAG: Ministry of Agriculture & LivestockMSyBS: Ministry of Health MEC: Ministry of Education and CultureSTP: National Planning Secretary FEPRINCO: Federation for Industry and CommerceUIP: Paraguayan Industry Chamber ARP: Rural Association of ParaguayAPYME: SME Association APC: Paraguayan Association for Quality

Main Initiatives Carried Out

Since 1999 Sector Assessment

2000 - 2003 National Science and Technology Public Policy –

2004 - 2012Launching of first set of instruments to promote

STI and Advance Human Capital training

2006 - 2009 Institutional Strengthening

2010 - 2016Launching of second set of instruments to

promote STI and Production Based Incentive forResearchers

2014 - 2019 Launching of third set of instruments to promoteS&T and AHC training

Public Policy for STI – Assessment and Revision2012 - 2017

S&T Demand Evaluation1999S&T Activities Survey– 2001 a 2012Bibliometric Indicators - 2006Innovation Survey – 2007

Enacted by Presidential Bill 19007 -October de 2002

PROCIT Program 2005 a 2012 –Financed by IDB

Increment in Public Budget (Infrastructure& hiring of administrative and technicalpersonnel) (2007 – 2009)

DeTIEC since 2010PRONII since 2011

Assessment of key variables andincorporation of Innovation (2013-2015)

Revision of Policy (2016-2017)Innovation Survey (2010-2012

PROCIENCIA 2014-2019S&T Activities Survey (2014-2015)

2016 - 2020 Launching of fourth set of instruments topromote Private Business Innovation

PROINNOVA 2016-2020Innovation survey (2013-2015) - ongoing

http://www.conacyt.gov.py/libro-blanco

White Book on Guidelines for a National Policy on Science,Technology and Innovation in Paraguay, 2014

Defines 4 Action Lines

Strengthening the role of CONACYT as rector of STI policy and as anarticulator of the network of STI activities among Sectorial Ministries,integrating R&D institutions, universities, Non-Profit STI organizations,Business Organizations and international networks for STI.

Promote scientific knowledge appropriation and its application tosocial innovation.

Increase innovation levels in private sectors as a mean of improvingcompetitiveness.

Strengthening of the National STI System through R&D and itscontribution to productive and social demands.

White Book on Guidelines for a National Policy on Science,Technology and Innovation in Paraguay, 2014

Prioritized Productive Sectors

Forestry andbiomass

Mining andMetallurgic

Agro industrialClusters

Transportationand Logistics

Clean andrenewable energy

Tourism andculturalindustries

Medium and hightechnology industries

Metal mechanicConstruction

Health

Social Securityand PublicSafety

Habitat

Education

Prioritized Social Sectors

Biotechnology Nanotechnology Information andCommunication Technologies -

ICT

Transversal Technologies

Prioritized Sectors from Different Sources

PND 2030 Industrial PolicyDpt (MIC)

REDIEX II(MIC) PTI

Food Food(*) FoodAgricultural

RelatedTechnologies

Logistic /Transport

Logistic /Transport

Logistic /Transport

Automatization &Control

ICT/SoftwareTextile /

Garments(*) Forestry ProductsICT & Computer

Science/Eng

KnowledgeEconomy Auto parts Manufacture

BusinessDevelopment

Plastics(*) TourismEnvironmental

Related Technol.

Footwear(*) Services & NewBusinesses

Energy RelatedTechnologies

Assembly(*) IADB (BID) has commissioned in-depth studies of these sector, 2016

NATIONALINNOVATION SYSTEM

NATIONALINNOVATION

SYSTEM

EducationalSub-System

Productive,enterprise-based Sub-

system

Governance andPublic PolicySub-system

R&D Sub-System

NIS –Value Chain

• CONACYT’sInstruments

• FF10• FF30 – FONACIDE /

FOCEM• FF20 - Loans

NIS Actors•Universities•Research Centers•Office of TechnologicalTransfer

•Enterprises (Private Sector)•Public Sector

•Contribute to thesolution ofsocioeconomic andenvironmentalproblems

How do we Finance it?

Which tools do we have?

Which Stakeholders areInvolved? Why do we do it?

NIS - Obstacles

CONACYT

•Little experience with existinginstruments

•No systematic evaluation ofprograms

•Redundant administrativecontrols.• Induce inefficiencies•Unclear incentives for

appropriate execution ofprograms

•Non-continuous and non-diversified financing

•Little investment intechnological innovationwithin private sector•Low level of incentives•Low social capital between

Universities-Enterprises

Knowledge Generation•Small scientific production•Research results not aligned with

needs and demandsAdvanced Human Capital•Graduate level programs not geared

toward knowledge generation•Scarce incentives to attract and

retail qualified talents• Infrastructure for STI• Insufficient and unarticulated

technological infrastructure•Few laboratories with

accreditations•Scarce incentives for retention of

qualified personnel• Specially in Public Laboratories

Governance & Institutional Arrangmt•Almost null articulation &

information sharing among PublicStakeholders

•Absence of articulated M&ESystems

•Prioritization not explicitwithin NIS sectorialinstitutions

•Little appropriation ofnational policies (nationaland sectorial)Financial Sources

CONACYT’s Instruments

NIS Stakeholders

Contribution to Solutions

MAIN STI INDICATORS

Indicator 2012 2015

•R&D / GDP (%) - Govt & Academic (Avg. LAC:0,77%) 0,09 0,13

•Enterprise Funding/Total R&D Expenditure (%) 0,85 0,28

•R&D / GDP (%) – Manufacturing, IT, Services 0,03 -

•Number of Researchers / 1000 EAP(*) – (Avg.LAC 1,35) 0,48 0,53

•Number of Categorized Researchers (PRONII) 284 515

•Number of SCI publications 115 191

•Number of patent by residents 1 1

(*) Economically active population

R&D PROJECTS,INNOVATION RESULTSAND CHALLENGES

2015-2016 Awarded Projects Accordingto NABS 2007

Nr ofProjectsAwarded

% of TotalAmountAwarded

% of GrantValue

1 Exploration and exploitation of Earth 3 1% 1%2 Environment 95 18% 17%3 Exploration and exploitation of space 2 0% 1%4 Transport, telecommunication, and other infrastructures 17 3% 3%5 Energy 22 4% 4%6 Industrial production and technology 72 13% 12%7 Health 130 24% 26%8 Agriculture 71 13% 12%9 Education 25 5% 4%10 Culture, recreation, religion, and mass media 15 3% 3%11 Political and social systems, structures, and processes 83 15% 16%14 Defense 1 0% 0%

TOTAL 536 34.675.146 US$

R&D Project Awarded in 2015-2016(total of 536 projects awarded)

PrioritizedSector 2014 OSE NABS 2007 Nbr of Projects

Water 2.7, 2.8, 4.9, 27Energy Cap. 5 22

Agriculture Cap. 8 71Education Cap. 9 25

Health Cap. 7 130Total 275 (51%)

Environment (excl.Water)

Cap. 2 67

342 (64%)

Consideration for the Use/Applicationof Knowledge?

Low High¿Q

uest

for

fun

dam

enta

lun

ders

tand

ing? H

igh

Low

Source: Survey to International Peer Reviewers, Convocatoria-2014 and Convocatoria-2015

Conv-14: 10 %

Conv-15: 25 %

Conv-14: 49 %

Conv-15: 69%

Conv-14: 11 %

Conv-15: 1 %

Conv-14: 30 %

Conv-15: 5 %

Pasteur’s Quadrant – David Stokes (1987)Perception of International Peer Reviewers on the contribution of

awarded projects (Call for Proposals 2014 and 2015)

Private Sector Strategies for Innovation(*)

However, when compared to industrializedcountries it can be observed a large difference inthe portion assigned to R&D.

Strategies for innovation investment issimilar to the other countries in theregion

(*) Results from Innovation Survey (2013)

Level of Innovation(*)

64%

36%

0%

10%

20%

30%

40%

50%

60%

70%

Nivel firma Mercado nacional ointernacional

Level of Product Innovation(*) Results from Innovation Survey (2013)

Only 36% of reported product innovation were new to the national andinternational market.

Firm level innovation is consistent with large proportion of acquisition ofequipment as an innovation strategy

Source of Information for InnovationActivities(*)

Business that innovated also relied onuniversities, R&D Labs, patent andspecialized data bases, although still in avery small proportion.

0% 10% 20% 30% 40% 50% 60% 70% 80%

Internet

Proveedores

Clientes

Ferias, conferencias y exposiciones

Revistas y catálogos

Competidores

Consultores

Empresas relacionadas

Universidades

Bases de datos

Organismos Públicos

Empresas del Grupo

Otros

Patentes y propiedad intelectual

Laboratorios/Empresas de I+D

No Innovadora Innovadora

(*) Results from Innovation Survey (2013)

Main source of information are opensource (internet, magazines and fairs)or market (customer and suppliers)

Obstacles(*)

0% 5% 10% 15% 20% 25% 30% 35% 40%

Insuficientes incentivos a la innovación por…

Dificultad de acceso a financiamiento

Falta de personal calificado en mercado…

Carencia de personal calificado en la empresa

Dificultades financieras

Bajo ritmo de cambio tecnológico en el…

Reducido tamaño de mercado

Deficiencia en protección de DPI

Período de retorno excesívamente largo

Organización Industrial

Problemas de acceso a conocimiento

Baja receptividad de la demanda

Deficiencias en la infraestructura

Deficiencias organizativas

No Innovadora Innovadora

(*) Results from Innovation Survey (2013)

Main obstacle, according to respondents, is the lack of public policies that stimulatesinnovation. The following main obstacles are: lack of financial means (both, internal andexternal), as well as scarce competent personnel for innovation activities and management(both within the firms as well as within the market)

Taxonomy of Uruguayan InnovativeEnterprises (B. Baptista, 2016)

Technological Innovation based on science (G_TOT2– 5%-, G_TOT3 -5%- y G_TOT6 -6%-)

Exp: Knowledge Intensive Suppliers (KIS), sciencebased manufacture

Techno-organizational (incremental) innovations, basedon interactions (G_TOT1 -18%-)

Exp.: Agricultural based enterprises with orientation toprocessing

Techno-organizational (incremental) innovations, based onstrengthening internal capacities (G-TOT5 -9%-)

Process-based innovation, efforts biased toward incorporation ofEquipment and Capital Goods (G-TOT7 -17%-)

Exp.: capital intensive enterprises, infrastructure based services,traditional enterprise services

No innovative enterprises, with low capacities (G-TOT4 -40%-)

Exp.: wide arrange of enterprises, no distinction of productive sector or sub-sector

Usual R+D+Iprograms

TechnologyExtensionServices

(technologydiffusion &adoption)

Promotion(evangeliza-

ción)

STRATEGIES &INITIATIVES

National Development Plan 2030Public Policy of Science, Technology and Innovation

CompetentHHRR

EffectiveInstitutional

Communication

AppropriateTechnological

Support

EffectiveManagement

Leadership

Effective STIProgram’s

Definition andManagement

EffectiveResults

OrientedM&E System

EffectiveFinancial &

AdministrativeManagement

FosterDevelopment of

Advanced HumanCapital for STI

StrengthenInfrastructure for

STIFoster R+D+i

Develop,Articulate andDisseminate

Public Policies onSTI

PromoteknowledgeProduction

Promote InnovativeSolutions to National

Problems

Increase valorization ofSTI as an agent for socio-

economictransformations

Lear

ning

&Gr

owth

Inte

rnal

Proc

esse

sVa

lue

Adde

dSe

rvice

sC

ontr

ibut

ion

to S

ocie

ty

EffectiveOrganization

al Design

NbrResearchers/

KPEA

R&DInvestment

/ PIB

NbrPatents/

MHab

R & D & i/ Sales

Draft

EffectiveProspecting and

TechnologicalVigilance

Initiative Status Funding

• R&D Competitive Funds Ongoing PROCIENCIA

•Innovation Projects Competitive Funds Ongoing DeTIEC/PROINNOVA

•Support for research results transfer toproductive sector (OTRI) Ongoing PROCIENCIA

•Support for Technological TransferOffices (CDTs) Ongoing DeTIEC /

PROINNOVA

•Support for Business Incubators Ongoing DeTIEC /PROINNOVA

• Technological Missions 1Q2017 PROINNOVA

•Access to scientific and technologicaldatabases Ongoing PROCIENCIA

•Support for Ph.D. in industries ..

•Support for young engineers in SMEs --

Objective: Foster R+D+I (*)

(*) This is an example. For each strategic objective, a list of initiatives (instruments)have been defined, some of them are undergoing, but some still need to be funded

Current Main Initiatives

PROCIENCIA (2014-2019): a 125 MUSD focused on R&D◦ Competitive funds for R&D projects◦ Incentive to Researchers based on scientific production◦ Support for Advanced Human Capital training◦ Competitive R&D Infrastructure funds◦ Support for research results transfer to productive sector◦ Support for Short-term exchange for Researchers and Tech

Personnel

DeTIEC (2010-2016) : a 6.6 MUSD program focused onInnovation Projects & the National Quality System◦ Competitive funds for innovation projects◦ Support for Technological Transfer Offices (CDTs)◦ Support for Business Incubators

Current Main Initiatives - cont.

PROINNOVA (2017-2021): a 10 MUSD focused onPrivate Sector Innovation◦ Competitive funds for innovation projects◦ Support for Technology & Innovation Management programs

with focus on SMEs (culture and needs)◦ Support for technology based new enterprises◦ Support for Technological Transfer Offices (CDTs)◦ Support for Business Incubators

Other Initiatives underwayEvaluation of supported innovation projects and incubatorsNational survey of R&D Equipment

LOOKING FORWARD

Challenges and Next Steps

Low R&D investment as compared to the region and OCDEcountries◦ Both private and public/academic sectors

R&D results on socioeconomic objectives are aligned withcountry’s needs but must be monitored to gain effectivenessand improve support from society, including enterprises

Very low connection between Universities/Research Centersand Enterprises

Level of product innovation in private sector must beimproved to increase firm and country competitiveness◦ Focus on technology transfer

Role of CONACYT as an articulator among STI institutionneeds to be strengthen

Public policy and STI instruments need to focus on few buteffective sectors, both in productive and social areas

Selected STI Indicators to 20302015 LAC 2014 2030

GDP (millions PPC) 61.021 153.031EAP (*) (millions) 3,49 17,20 4,52R&D Investment (millions PPC) 79 765R&D/GDP 0,13 0,76 0,50%Enterprises contribution to R&D/GDP (% of total) 0,28% 36,61% 35%Enterprises contribution to R&D(millions PPC) 0,22 267,80Government contribution to R&D/GDP (% oftotal) 73,09% 59,26% 64%Government contribution to R&D(millions PPC) 57,98 489,70Researchers (EJC) 1.126 6.781Researchers / 1000 EAP 0,53 1,45 1,50Doctorate Graduates 87 24.750 1.067Annual investment per Researcher (thousands PPP) 30.000 143.000 112.836Patent Applications (residents) 16 70Publications listed on SCI 129 81.784 930

Note: in Green are established targets and in Blue areprojected values (aligned with targets)Fuente: R. Barrere, “Proyecciones de Indicadores de ACT 2030 para el CONACYT”, 2016

(*) EAP: Economically active population

Key Success Factors

Competent and Motivated Team

Clear leadership from all organizational levels

Evidence based decision making

Procedures and IT tools to facilitate management ofR+D+I programs

Synergic work among public institutions to fosterR+D+I

¡¡GRACIAS!!

THANKYOU!