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Kosovo Economic Development through Quality and Networking project implemented by in partnership with and An EU funded project managed by the European Union Office in Kosovo EU supporting Regional Economic Development in Kosovo Concept for establishment of Center of Excellence on Information Society October 2012, Sofia

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Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

Concept for establishment of Center of

Excellence on Information Society

October 2012, Sofia

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

Table of Contents

Executive Summary .............................................................................................................. 3

Needs .................................................................................................................................... 5

Stakeholders ......................................................................................................................... 8

Objectives ............................................................................................................................. 8

Activities .............................................................................................................................. 9

Phase I Initiation and establishment .................................................................................. 9

Phase II Create capacity and start operations ................................................................... 10

Phase III Center of Excellence Development ................................................................... 13

Important factors for the center sustainability ..................................................................... 15

Annex I Overall environment for creation of Centers of Excellence in Information Society in

the EU ................................................................................................................................. 17

Annex II Policies ................................................................................................................ 21

Annex III Local context and environment for setting up a CoE ........................................... 24

Annex IV Examples of good practices and cases of CoEs in IT ........................................... 26

The EIT ICT Labs ........................................................................................................... 28

The CIST ........................................................................................................................ 29

An entire country as a CoE - Malta .................................................................................. 30

Annex V EU programs and projects supporting the establishment of CoEs in IS ................. 34

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

Executive Summary Disclaimer:

The content of this document does not reflect the official opinion of the European Union.

Responsibility for the information and views expressed in therein lies entirely with the

authors and implementing organizations.

This document was prepared within the framework of the “Kosovo Economic Development

through Quality and Networking” Project and is aimed at outlining a concept for

establishment of Center of Excellence on Information Society in Region Center, Kosovo. The

Project is being co-funded by the European Union Office in Kosovo (EU Support for

Regional Economic Development).

The concept presents strategic objectives and roadmap to establishment of an Excellence

Center that will support Information Society services delivery on local level.

One can consider the current document as a final and more practical document that suggest

implementation mechanism of the needs and recommendations defined in the two

fundamental documents produced by the project and coordinated with the relevant

stakeholders from Kosovo government, municipalities and private sector:

“Analysis of ICT Sector in Economic Region Center, Kosovo”, January 20, 2012

“Strategy Concept for Information Society Development in Economic Region Center,

Kosovo”, July 2012

The current concept is based on the information analyzed and conclusions in the previous

analysis in order to suggest key elements of a strategic plan for establishment of excellence

center for Information Society development. In this regard the Excellence Center, when

established, could be the main tool for initiation, development, implementation and

monitoring of Strategies for Information Society Development on municipal level.

In addition to the above mentioned strategy and analysis the project team conducted

comprehensive research of the EU experience and best practices in this field that was taken

into account while elaborating the current document. The conclusions of the research are

summarized and presented in a separate document.

The Concept for establishment of Center of Excellence on Information Society is structured

in the following sections.

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

Needs

Objectives

Stakeholders

Activities (initiation, establishment and operation)

Success factors

The objectives of the Excellence Center are balanced within four perspectives including:

Electronic services;

Information society implementation processes;

Knowledge dissemination and fund rising.

These perspectives, when implemented, could ensure the sustainable development of the

center and effective achievement of the objectives.

The main purpose of the concept is to provide initial information and a roadmap for

establishment of such an excellence center in three phases:

Phase I Initiation and Establishment

Phase II Create Capacity and Start Operations

Phase III Center of Excellence Development

The document was developed on conceptual level as a framework that on, one hand side, will

guide the stakeholders through the process establishment and, on another hand side, will

provide enough flexibility for definition and aligning specific objective for the for the

founders.

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

Needs The “IT Sector Analysis” and the related interviews and public discussions performed in the

framework of the “Kosovo Economic Development through Quality and Networking” have

identified the following needs for information society development in Kosovo:

Establishment of an effective ICT coordination/governance mechanism on strategic

level that will serve as focal point for the ICT sector development in Kosovo

Currently different aspects of the ICT in Kosovo such as ICT industry, e-services, e-

government, e-health and others are managed by different bodies. There is no effective

coordination mechanism that could ensure balanced development and focal points for

communication with businesses and international organizations.

Prioritization of objectives in all ICT related strategies

A number of good strategies and relevantly consistent normative framework for the ICT

sector development in Kosovo have been adopted on central level. The strategic

documents establish a large number of objectives and priorities for ICT development in

Kosovo that are technically very difficult to be implemented simultaneously. Not all high

level strategies are supported by implementation plans, ensured budgets and strong

implementation mechanisms or bodies. All these factors lead to lack of focus and

difficulties in the implementation of the strategies.

Using of international benchmarking indicators to compare the ICT sector

development of Kosovo and measure the progress of the national priorities

Currently Kosovo ICT is not visible in the international surveys and studies. The

measures for success of the ICT strategies implementation, where available, are very

technical and are rarely aligned with EU and international benchmarking models.

Introducing internationally aligned measures and indicators could decrease the

uncertainty, increase investments in the ICT and facilitate the international standing of

the country.

Introducing international ICT standards in the Kosovo ICT sector governance

rather than develop national standards and procedures.

Kosovo’s government has an opportunity to introduce the international standards and

models for ICT governance such as ISO27000-series (Information Security Management

System Family of Standards), Capability Maturity Model Integration (CMMI), Resilience

Management Model (RMM), Information Technology Infrastructure Library (ITIL) and

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

others. Adoption of the international standards could result not only in mature IT

processes in the public organizations, but also it could push Kosovo companies to align

their operations with the internationally recognized good practices and improve their

competitiveness.

The international experience has shown that such programs are more effective when the

government and the donor community provide parallel support for standard

implementation both in private and public sectors.

Using the already existing ICT infrastructure to improve traditional public services

and deliver e-services to citizens and businesses

In recent years Kosovo has done significant investments in IT infrastructure but the

effects on traditional public services and e-services are still not adequately visible for

businesses and citizens. The focus on e-services could produce three major types of

benefits, as follows:

- E-services delivered through various channels have strong potential to improve the

administrative environment; increase the overall competitiveness of the country and

the satisfaction of citizens with public administration.

- Тhe focus on e-Services will increase the demand for complex ICT solutions in

Kosovo. Local ICT business is aware of local environment and is able to develop

custom solutions and will most probably be highly competitive for the

implementation of such projects and receive significant business benefits.

- Тhe already developed e-Services could facilitate significant increase of the overall

ICT demand of Kosovo from the business and individual clients that will align their

processes with e-Service environment.

Strengthening Information Society implementation capacity on municipal level.

The Strategy Concept for Information Society Development in Region Center concluded

that central government plays a major role in the ICT development, while the role of the

municipalities had not been clearly defined. There was a lack of financial resources and

knowledge base, which are major constrains for the information society development on

municipal level.

Regions and municipalities depend almost completely on the government in the critical

fields of their ICT development such as management expertise, budgets, infrastructure

and others. On the one hand, all of the municipalities in Region Centre reported a lack of

financial resources and insufficient knowledge as two major barriers for the development

and the implementation of information society services. On the other hand, only a few

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

have started development or have already developed plans related to the ICT

implementation. Even when the ICT plans were in process of development they were

more technology oriented rather that service oriented.

Promoting the use the available eGovernment services by citizens and businesses

Despite the positive development of the eGovenment services in the last year the people

and businesses on local level are rarely using them. Currently, the low level of usage of

the available eGovernmet services can be considered as the main barrier for Information

society development. There is a need for promotion and educating the local societies

what are the benefits of the e-services and how they can be used.

Providing expert support to the municipalities for implementation of Information

Society services

During the public discussion about the Strategy Concept for Information Society

Development in Region Center the major stakeholders agreed that the municipalities

would need expert and methodological support in order to be able to initiate, plan,

implement, monitor and control Information Society strategies.

A center of excellence in Information society development on municipal level could provide

the needed support and could effectively cover the needs defined above on municipal level.

The center activities are designed in order to address the following specific needs:

Development, support and sustain Information Society implementation capacity

on municipal level – both managerial and technical

Building awareness among citizens and businesses about the Information society

services benefits.

Prioritization of services of information society on municipal level in order to

contribute to the development of local societies.

Use international benchmarking indicators to evaluate the Information Society

development

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

Stakeholders

The optimal mixture of stakeholders in such a center includes representatives of:

1. Government institutions related to the Information society management and

implementation – representing the policy makers and service providers on national level

2. Municipality administration - representing the policy makers and service providers on

municipal level

3. Business associations – representing the interest of the business community

4. Regional NGOs – representing the interests of the citizens

5. ICT business associations – representing the local ICT providers.

On one hand-side the direct participation of these organizations on strategy level – e. g. members

of the Excellence Center Steering Committee is very important for the alignment of the strategy

to the objectives and needs of the stakeholders.

On another hand-side on operational level the stakeholders could appoint high level professionals

who will be able to translate the strategy into operational objectives.

Objectives The overall goal of the Center of Excellence is to support the information society in Kosovo

especially on municipal level in order to achieve balanced and sustainable economic and social

development.

One can distinguish several levels of objectives including:

1. Strategic objectives related to the Information Society services supply to Citizens and

Businesses

a. Increase the quality of life of citizens through promotion of development

and use of eHealth, eLearning, eCulture and eAdministration services for

all citizens in Kosovo.

b. Improve the business environment in Kosovo municipalities

through promotion of effective eGovernment services and eCommerce.

2. Strategic objectives related to Information Society implementation processes

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

a) Support Information society Strategy definition on local level

b) Support higher effectiveness and efficiency of the municipal

administrations through optimization of administrative processes and

implementation of information and communication technologies.

3. Strategic objectives related to Information Society knowledge dissemination

a) Increase awareness about Information Society benefits

b) Train decision-makers and experts about Information Society

implementation strategies and plans

c) Initiate discussions and know-how transfer

4. Strategic objectives related to providing resources for Information Society

development.

a) Initiation of projects that could be funded through the available

donor funds.

b) Ensuring adequate budgets for Information Society development

on municipal level.

Activities One can distinguish three phases of the center creation: (I) Initiation and establishment; (II)

Create capacity and start operations and (III) Development. Based on the experience with the

development of similar initiatives in other countries the establishment of the center could be able

to start effective operations (phases I and II completed) in 12 – 18 months.

For each phase the stakeholders should implement specific activities that to guarantee a solid

base and conditions for sustainable development in Phase III. In the reality some activities could

be moved from one phase to another phase in order to meet specific objectives or to complete

certain priorities of the organization.

There are specific activities for each phase as described below:

Phase I Initiation and establishment

The main objectives are related to the definition of the strategy formulation and initial set up of

the center. As soon as the decision for the center establishment is made following activities

should be launched:

I.1. Identify and involve relevant stakeholders

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

In the Initiation phase the relevant stakeholders should be identified and commitment to the

center should be obtained based on a shared vision of the Information Society development on

municipal level. The objectives of this activity could be achieved through a series of workshops

and direct meetings with potential stakeholders:

I.2. Initiate the center establishment through an open workshop in which all potential

stakeholders are invited. The list of the Potential stakeholders includes but is not limited to:

ministries and agencies responsible for Information society development on national level,

interested municipalities, international donors and projects, industry associations and others.

A concept for the center is presented and discussed at the workshop. The workshop is expected

to result in declared interest of a number of stakeholders to participate in the foundation and

development of such center.

I.3. Formulate center vision and ensure strategic support for the first three years of the

center operation through a series of interviews and direct discussions with the relevant

stakeholders that were interested to participate in the initiative. In this activity the center

initiation team conducts interviews and meetings with the relevant stakeholders in order to

formulate the strategic framework of the center including but not limited to: vision; mission;

strategic objectives and commitments to center support in the first 3 years of its development.

The commitments can include: office space, equipment, permanent employees, on-demand

expert support, funds for information society projects implementation and others. In general the

stakeholders’ commitments should ensure the facilities and “seed” funding of the center for the

first 18-24 months of its existence. As a final result of this activity the initiation team documents

the strategic framework for the center establishment and the commitments of the different

stakeholders. A series of meetings and more than one iterations can be expected in this activity

until all the elements are coordinated with all relevant stakeholders.

I.4. Develop strategic plan in order to translate the strategic framework into structured nd

balanced plan. Within this activity the initiation team develops a strategic plan or alternative

scenarios of strategic plans including budget.

I.5. Establish the Center of Excellence – Relevant stakeholders establish the center and start its

operations. The center is established as non-profit organization in public benefit keeping a good

balance of government, municipal and private sector stakeholders. The center foloows and

further develops the strategy and plan elaborated in the previous activities.

Phase II Create capacity and start operations

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

A soon as the center is established its priority will to create capacity both in its internal structure

and within the relevant stakeholders in order to be able to fulfill its mission, vision and strategic

objectives. Activities in this phase include:

II.1. Form a Steering Committee and appoint Center Manager and team. Form highly-

regarded international Advisory Committee.

Good project management and monitoring is a key factor of success for the creation of the

Center. The center should be managed on strategic level by a Steering Committee that represents

the interests of all stakeholders involved in the Kosovo ICT sector development. The Steering

committee will nominate a professional to become the center manager that will be responsible

for the operational management of the center.

A Center Advisory Committee will advise the team and will support the communication

strategy to approach the business community, other partners, the donors, and the public. Best

available professionals in the specific fields from Kosovo and abroad will be invited to join the

Advisory Committee.

On a day-to-day basis, the team of the center will be responsible for the implementation of the

center business plan. The relevant stakeholders in the Steering Committee will formulate the

center strategy and they will assist the center management in all aspects of the center’s technical

implementation. The center manager will report to the Steering Committee. The primary function

of the Steering committee will be to make strategic decisions regarding the Center in the best

interests of the Kosovo Information Society development and to ensure that the center adheres to

its fundamental goals as defined in the center mission. This committee is also here to monitor

and assist the executive management of the Center. The Steering Committee could comprise

senior representatives of the center stakeholders.

The Steering Committee will elect the Committee Chairman among its members. The Steering

Committee will provide guidelines to the management team and experts on important

implementation issues, such as:

Strategic management,

Selection of contractors,

Changes to the proposed activities,

Any other issues arising from progress reports and Advisory Committee meetings.

The Advisory Committee will share experience on the overall development of Information

Society and more specifically on the planning and design of training, coaching and consultancy

programs. The Steering Committee Chairman and the Center Manager will be members of the

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

Advisory Committee. The other Advisory Committee members will be experts from ICT

community in Kosovo and abroad.

The center team will be responsible for the activities execution, monitoring and reporting. It will

coordinate, oversee, monitor and implement the activities planned in the project according to the

instructions and guidelines received from the Steering Committee. It will report regularly on the

development of the project before the Steering Committee. The center team will be able to

approach and ask for advice any member of the Advisory committee according to his

competence.

At this phase of the project the center team will be trained on all of the aspects of the Information

Society as well on disciplined business management. Execution of this activity will ensure the

necessary human resources for the Information Society Excellence Center development

II.2. Develop center processes, build infrastructure, measurement, monitor and control

activities.

The center team supported by external experts will develop processes and procedures for

strategic and operational management. Since the center sustainability strongly depends on the

ability to initiate and effectively manage projects – good project management practices will be

developed in more details. The centers procedures will cover the following areas:

Strategy formulation, continuous improvement and monitoring

HR and employment

Procurement

Project implementation

Finance

The process in the above mentioned areas should guarantee transparency, efficiency and

effectiveness of the center operation. The centers employees will be trained how to apply the

processes and sound monitoring mechanism will be established.

II.3. Identify the Information Society framework and needs and based on them, define

priority interests in services-related training programs and pilot demonstration projects

Macro framework influences every single initiative in Kosovo. In order to ensure

correspondence between the macro and micro level of the Information Society support the center

team will work together with external experts in information society development and law and

will analyze main macroeconomic and ICT trends and their impact on Information Society

development on municipal level. The key barriers for information society development will be

identified and solutions will be proposed.

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

The center may offer a wide range of services to the municipalities that are unable to get them

otherwise. A key success factor for sustainable development of the initiative is to meet the

specific needs of the targeted municipalities. The needs analysis produced as a result of this

activity will provide key information for the design and business plan of the center.

II.4. Prepare strategic 3-year plan and 1-year operational plan

The strategic framework will be used as a base for development of the center business plan. The

center team will produce detailed business plan for the Excellence Center for the first year of its

operation and long term business plan for three-year period. The plans will be reviewed and

updated on a regular base under the supervision of the Steering Committee.

II.5. Plan awareness campaign. Develop presentation and training materials

The center will plan and conduct an information campaign in order to increase the awareness

about the Information society benefits and to promote its strategic objectives among all relevant

stakeholders and target groups identified in activity II.3. The center team in cooperation with

external consultants will develop specialized training courses related to the information society

service planning, implementation and maintenance.

II.6. Initiate and communicate projects for initial research and information society

promotion in the municipalities

The center will work together with the municipalities and other stakeholders in order to develop

pilot projects that will demonstrate the benefits of the information society services. These first

projects of the center will ensure experience and success stories for the further promotion of the

center services. The projects will not only produce the first benefits for the Information Society

din Kosovo but also will build valuable project management experience in the center staff.

Phase III Center of Excellence Development

At that phase the center is operating on a full scale in order to achieve its vision and strategic

objectives. The activities in this phase will come from the analysis and strategic and operational

planning completed in phase I and phase II. At this concept level one can suggest activities as

follows:

III.1. Promote the Information Society services development

The center will organize Information society awareness campaigns in order to inform and

convince citizens and businesses to use the available Information society services and to demand

them form the different providers. The center will use different information channels such as

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

awareness and training seminars, Internet, brochures, direct promotion in the municipal service

centers, social networks and others. The awareness campaign is expected to increase the demand

for Information Society services and those to accelerate their development. This activity will

directly address the need for “Building awareness among citizens and businesses about the

Information society services benefits”.

III.2. Continuous analysis of Information Society development framework on municipal

level. The center will develop analysis of the Information society services using international

benchmarking methodologies. The analysis will provide important information about the

completion of the Information Society strategies by the municipalities and the corresponding

benefits for the relevant stakeholders. The analyses will be produced on a regular base and the

main conclusions will be disseminated through all relevant stakeholders. The trends and indictors

included in the analysis will allow precise objective measurement of the Information Society

Progress and Increased awareness among major stakeholders. The data will be used for

prioritization of the information society services and actions. This activity will directly address

the need of “Using international benchmarking indicators to evaluate the Information Society

development” and will provide information for “Prioritization of services of information

society on municipal level in order to contribute to the development of local societies”.

III.3 Support Information society strategy formulation, planning and implementation in

the Kosovo municipalities. Provide mechanism for evaluation of the organizational

capabilities for Information society implementation.

The center will provide training to the municipalities in the filled of strategy formulation and

project management in order to strengthen the capacity for implementation of information

society initiatives. The already develop concept for Focused trainings on key Information

Society technologies will be planned and conducted. All the trainings will be compliant with the

national strategies and the applicable national legislation. As soon as the necessary knowledge

and skills are transferred to the municipalities the center experts will provide consultations and

coaching based on the real projects implemented on municipal level.

The center will develop an evaluation methodology in order to be able to measure and rank the

organizational capacity for Information Society implementation in the municipalities. The

ranking could be used as a prerequisite for implementation of a large scale Information society

projects.

This activity will directly address the need for “development and sustaining Information

Society implementation capacity on municipal level – both managerial and technical” and

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

will ensure the necessary knowledge and skills for “Prioritization of services of information

society on municipal level in order to contribute to the development of local societies.”

III.4 Fund raising for Information society development.

The center will work with national institutions and international donors in order to raise funds for

implementation of Information Society projects. It could be a coordination body that alignes the

efforts of the multiple institutions that currently support the Information Society services in the

municipalities. On one hand side the center will develop methods to measure the benefits and the

return of investments in the ICT, which is very important in order to convince the related

organizations in the effectiveness and benefits of such investments. On other hand side the center

could serve as a monitoring body that optimizes the effectiveness of the relevant projects.

Important factors for the center sustainability Regarding the model of the center, the following questions should be answered:

Locations:

In view of the existing limitations of financial recourses and specific characteristics of the

Information Society, the future center can be based on distributed locations (semi virtual center)

or significant resources to be allocated in a center located in one office. It would desirable to

establish at least the head office of the center at a visible location in municipality that is

relevantly advanced in providing the services of Information Society, thus passing a positive

message to other municipalities. A possible option could be to locate the center in a municipality

that is willing to contribute with office space, equipment and in-kind expertise. In that case the

commitment of the municipality will be ensured and the expenses for the center establishment

will be minimized.

Choice of technologies:

It is our firm believe that focus of the Center should be to guarantee the independence from the

proprietary IT and software technologies. The technology should provide synergies through co-

operation between various technology providers and the institutions responsible for the

Information society implementation. Moreover the center could be focused in service delivery,

process and project management rather than certain software, communication and hardware

technologies. On can assume that the center can use the technical capacity built in the

eGovernment on national level or outsource the technical aspects to private ICT companies while

the organizational and service capacity should be developed in the center and the municipalities.

Suitable models:

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

Various models can be discussed with decision makers in Kosovo during the fields work. The

publicly financed model in principle can be explored trough donor-funded projects. It could be

considered to provide greater access to finance but can delay the process. Close monitoring of

the public finance model with regard of the long-term sustainability of management support is

essential. We would like to envisage a center that is based on a public investment model,

combining public finance, donor support and contribution of the private sector, if feasible.

Providing of such a model could be viable for the Kosovo environment and can ensure center’s

sustainability.

Management and Organization:

We considered the management of the Center as one of the most important factors for its

sustainability. It should provide added value services beyond the provision of standard trainings.

The services should ensure support starting form awareness, passing through training and

implementation and ending with project management of complex initiatives. The Center itself

should also operate as a network, thus providing broader access to international expert support,

including that of international excellence center networks.

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

Annex I Overall environment for creation of Centers of

Excellence in Information Society in the EU The reasons Europe puts a priority on research, education and innovation are apparent. The

ever increasing competition and the challenges Europe is facing due to the demographic

issues at hand, call for specific counteractions. Europe's economic progress and respectively,

the creation of new jobs in the future, will largely depend on innovation breakthroughs in

services, products, business models, processes, etc. Therefore, it is crucial that Europe is able

to not only retain, but also attract talent. Even though there are isolated success stories across

the EU, on average, when compared to global leaders, Member States are still lagging behind

in terms of innovation-based progress. Furthermore, Europe is faced with growing

competition for talent from new CoEs in developing economies.

The information society carries benefits for everyone, but it has to be ensured that its

democratic nature is protected. It is crucial that it provides universal access to information to

all. In one specific case, providing for openness and transparency of government activities

will result in enhanced efficiency of public administration. Other benefits of the information

society are electronic democracy, superior education and training, amelioration of

employment, progress of market economy, different social and legal advantages, as well as a

significant improvement in research and development. The EU recognizes that knowledge is

a major source of power and wealth, but that it also leads to differences between regions,

countries, societies, companies and people, due to the digital divide it creates.

As an aftermath of the advancements of the US and Japan's information societies, the

European Union adopted a strategy to achieve competitiveness by keeping up with the

developments. The main goal of this action plan is the creation of a knowledge-based

economy, built on strong employment rate, flourishing economy and social cohesion. The

successful creation and progress of a knowledge society is founded on four interdependent

pillars. These are the generation of new knowledge, stemming primarily from research

efforts; its transmission through education and training; its dissemination through various

communication channels including computer technologies and the Internet; and finally, its

practical application to achieve innovation in technologies, processes and services. For the

past twelve years, the EU has pursued several strategies aimed at this direction, among which

Kosovo Economic Development through Quality and Networking

project implemented by

in partnership with and

An EU funded project managed by the

European Union Office in Kosovo

EU supporting Regional Economic Development in Kosovo

the eEurope1, the eEurope+, the i2010

2, and the most recent one - the Digital Agenda for

Europe3.

The start of this string of initiatives has been concentrated on encouraging the adoption and

use of digital technologies across Europe and making sure that all EU citizens posses the

essential skills to use these technologies. The pivotal objectives in the first action plans

carried out by the EU were:

Bringing every citizen, home and school, every business and administration, online

and into the digital age;

Creating a digitally literate Europe, supported by an entrepreneurial culture ready to

finance and develop new ideas;

Ensuring that the whole process is socially inclusive, builds consumer trust and

strengthens social cohesion.

After the implementation of the first initiatives, the EU set a new and ambitious strategic

goal and an overall strategy: “The Union has today set itself a new strategic goal for the next

decade: to become the most competitive and dynamic knowledge-based economy in the

world capable of sustainable economic growth with more and better jobs and grater social

cohesion.” To achieve its goal of becoming a world leader in ICTs, the EU must double the

funds dedicated to research, attract talent and abolish any obstacles which impede business

growth.

In 2009, the global ICT market's estimated worth was some EUR 2,000 billion and was

growing at a 4% annual rate. In Europe, ICTs accounted for 6% of the gross domestic

product and was generating 12 million jobs. In terms of research, 20% of all private research

and development (R&D) was spent on ICTs4. Nevertheless, the EU is still falling behind the

global leaders. In comparison, the US is spending twice as much on ICT R&D. Moreover,

Europe is experiencing a shortage of qualified ICT researchers, to some extend due to the

insufficient number of centers of excellence in ICT research within the EU. As a result, the

majority of private research funds and skilled people tend to be allocated to other purposes.

However, Europe excels in a variety of ICT fields, among which telecoms equipment and

services and security technologies. It also is a global leader in applications like telemedicine

and embedded ICTs. In terms of its future, the EU has a lot more to accomplish. It has

1 http://ec.europa.eu/information_society/eeurope/i2010/archive/eeurope/index_en.htm

2 http://ec.europa.eu/information_society/eeurope/i2010/index_en.htm

3 http://ec.europa.eu/information_society/digital-agenda/index_en.htm

4 http://cordis.europa.eu/search/index.cfm?fuseaction=news.document&N_RCN=30575

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declared its intentions to become a leader in the development of the future Internet and the

next generation of ICT systems, exploiting the opportunities provided by them. Finally, the

EU must initiate the use of ICTs in health systems, safety and security and energy efficiency.

The new strategy sets out a three-pronged approach to tackling these problems. Firstly,

investments in ICT R&D must be doubled by 2020. Annual spending on ICT R&D under the

Seventh Framework Programme (FP7) is set to rise from EUR 1.1 billion in 2010 to EUR 1.7

billion in 2013, and the Commission invites Member States to match this budget increase in

their national research programmes.

Among other things, the Commission pledges to set up platforms for more intensive

dialogues between investors and ICT innovators. It also states its intention to increase the

involvement of SMEs (small- and medium-sized enterprises) in its own research

programmes.

Member States are also encouraged to make greater use of public procurement as a tool for

promoting innovation in the ICT sector.

Another stream of action outlined in EU strategies calls for greater collaboration between the

EU, Member States, regions, industry and academia. "Europe needs to better coordinate its

policies and concentrate and specialise its resources, not least for the emergence of world-

class poles of ICT excellence in Europe". In other words, the diverse stakeholders involved

in funding and carrying out ICT research need to pool resources and work according to a

common European strategy.

Finally, the strategies indicate that ICT organizations need the right conditions to grow and

develop. In this sense, the public sector can drive innovation by ensuring that ICTs are fully

exploited in all public services.

To support this work, the EU is investigating how best to support pan-European projects

covering the entire cycle from R&D to deployment. These projects will build on lessons

learned through public-private partnerships and the Lead Market Initiative, for example.

They could cover issues such as the use of ICTs in healthcare and ICT solutions for energy

efficiency.

The strategies aim at resulting in creating markets with clearer demands from users,

providing for shorter innovation cycles, faster responses to socioeconomic challenges and

new opportunities for industry in Europe. The expected outcomes are quicker returns on

investments and consequently greater attractiveness of Europe for investors, companies and

researchers.

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Furthermore, the Directorate General for the Information Society and Media has also

outlined an agenda on supporting the further development of the information society through

making every European digital by5:

achieving a digital single market

reinforcing Europe's competitiveness by increasing investment in ICT research and

innovation

promoting the access and use of ICT to the benefit of EU society

Such strategies present very beneficial conditions for the establishment of CoEs in R&D

aiming at developing new technologies, processes or activities, which to support the

information society.

5 http://ec.europa.eu/dgs/information_society/see_more/index_en.htm#mission

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Annex II Policies Since the information society will have an effect on most aspects of EU citizens' lives, the

respective policies range from the regulation of entire industrial sectors to the protection of each

individual's privacy.

Regulation in the Information Society6

The European Information Society sector has grown partly due to European initiatives such

as the creation of the Single Market, the Television without Frontiers Directive, the adoption

of harmonized standards such as GSM, and the liberalization of the telecommunications

sector. Today, there are two main areas of Information Society regulation at European level:

Transmission & Content.

Stimulating the Information Society Sector7

Rolling out new technologies, products and services is not just a matter of research and

development - policies are required to overcome obstacles ranging from copyright to

security.

1. Research

The Commission is focusing both on the EU’s research and development instruments and

setting priorities for cooperation with the private sector to promote innovation and

technological leadership

2. Infrastructure

Europe's electronic communications regulatory framework stimulates the development of

Europe's infrastructure by promoting competition and growth across the communications

sector.

Additional policies stimulate the development of specific aspects of Europe's digital

infrastructure:

◦ Bridging the Broadband Gap: Europe is ensuring that all regions of Europe

benefit from Broadband Internet access;

6 http://ec.europa.eu/information_society/tl/policy/regulate/index_en.htm

7 http://ec.europa.eu/information_society/tl/policy/stimulate/index_en.htm

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3. Content & Services

Stimulating the sector is also a question of stimulating the supply of content and services

which make the information society valuable:

◦ Copyright: while policies exist to stimulate digital content and manage

copyright in a digital age, the correct approach to Digital Rights Management

technologies must also be found if the sector is to grow.

◦ The public sector is the single biggest producer of information in Europe,

producing data on topics as diverse as economics, traffic flow and

demographics. The EU’s Public Sector Information Directive therefore

stimulates the sector by making it easier for companies to access and add value

to this valuable raw material.

◦ Europe's cultural heritage is another potentially massive source of content.

Digitizing it would both stimulate the development of the information society

and make this unique cultural heritage available to more people.

◦ Security: Finally, the information society cannot grow to its full potential

unless users, companies and governments enjoy reliable networks; high levels

of protection for personal data and from malicious attacks.

Exploiting the Benefits of the Information Society8

A range of policies also aim to ensure that Europe exploits the possibilities offered by the

Information Society, improving both public and private services for all Europeans.

1. Public Services

◦ Government: The eGovernment Action Plan (April 2006), outlined how

"hundreds of billions of Euros could be saved for European taxpayers every

year" by using ICTs to provide 'joined up government' and to improve

democracy, while the Electronic Public Procurement legal framework is

accelerating the use of ICTs to improve efficiencies in public procurement,

which accounts for 16% of the EU economy.

◦ Health: The eHealth Action Plan (April 2004), on the other hand, set out how

ICTs can be used to deliver better quality health care on a pan-European level.

8 http://ec.europa.eu/information_society/tl/policy/exploit/index_en.htm

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◦ Education: Similarly, the 2006 eLearning Conference explored how ICTs can

improve the way Europeans are educated and trained throughout their lives.

2. Society & Environment

◦ Inclusion: These ICT-powered services, of course, must be available to

everyone, regardless of their location, wealth or health, which is why the

Ministerial Declaration on eInclusion was adopted. The Commission also

wants to encourage more women to pursue an IT career as a force for change

and a major boost for the ICT sector.

◦ Sustainable Development: Europe's transport, energy and environment

challenges are well known. What is less well known is the extent to which

ICTs can help solve these problems.

3. eBusiness

Applying ICTs to business sharpens the competitive edge and drives innovation. The

opportunities are particularly attractive in Europe, as eBusiness allows many companies -

particularly SMEs - to benefit from the Single Market for the first time.

The eCommerce Directive (2000) is Europe's basic legal framework for electronic commerce

in the Internal Market. VAT Invoicing Rules ensure all Member States' tax authorities

recognize the validity of electronic invoices.

The Online Financial Services policy framework aims to ensure consumers and retail

investors can access on-line financial services from across the EU while being fully

protected, while the Distance Marketing of Financial Services Directive protects consumers

of retail financial services (insurance, banking, etc.) marketed by telephone, Internet or mail.

Finally, the Consumer policy and e-commerce, aims to improve consumer confidence in the

internal market when it comes to eBusiness.

The EU's Industrial Policy promotes the Competitiveness and sustainable development of the

ICT sector, supporting the take-up of information and communication technology and e-

business practices by European enterprises.

The EU's .eu domain has successfully translated the European Single Market online.

The Directive laying down VAT invoicing rules helps firms operating within the Internal

Market by ensuring that they have only to deal with a single, simplified set of rules on

invoicing valid throughout the EU. It also requires Member States to recognize the valid ity

of electronic invoices and allow cross-border electronic invoicing and electronic storage.

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Annex III Local context and environment for setting up

a CoE In the countries from Southeastern Europe, the ICT sectors have gone through considerable

changes in the last twenty years. They have moved from producing hardware, which depends

on capital, to the development of software, which is heavily dependent on knowledge and

expertise. This shift paralleled the privatization of many firms and the emergence of sta rt-

ups. The growth of the ICT sectors in such countries has been driven by a few major factors,

among which the highly qualified workers, the established traditions in ICT and the low

labor costs. However, the companies in the region, which are predominant ly small and

medium-sized enterprises (SMEs), are faced with global competition by popular outsourcing

destinations, such as China, Russia and India.

The countries in the region can benefit greatly through refocusing their ICT sector's

competitive advantage. The change should be from cheap labor with adequate technical

knowledge and skills to capacity for cost-effective production of high-quality ICT solutions,

bringing high added value not only for the company but for the economy as well.

In order for this to be achieved, the existing barriers must be abolished. Competitive

advantage for the countries and the region can be created through the establishment of

centers of excellent, which to promote collaboration not only on a local, but on a regional

level too.

The successful establishment and adequate operation of a CoE is expected to result in:

Improvement of the ICT competitiveness

◦ Better visibility as an ICT competitive area of both the country and the region and

better integration in the international markets

◦ Increased number of organizations with better competitiveness, providing high

value added resulting from the implementation of models and standards for

process improvement.

◦ More people enhancing their professional expertise.

Effective eGovernment

◦ Creation and utilization of innovative methodologies for eGovernment

development

Modern Education

◦ Easier access of the Universities to modern knowledge adapted to the regional

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specifics

◦ Cooperation between Universities and ICT industry in the development of R&D

projects

Sustainable Economic Growth

◦ Enhancing the overall economic competitiveness through encouragement of ICT

penetration in all economic sectors

◦ Continuous development of the information society

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Annex IV Examples of good practices and cases of CoEs

in IT The establishment of a Center of Excellence in the context of ICT enables the country and the

region to stand out in the international ICT markets by allowing individuals and companies in

this sphere to reach the world quality and productivity standards. The CoE can be the heart of the

initiation, planning and implementation of joint competitiveness programs aimed at improving

the efficiency and effectiveness of of local and regional organizations. The CoE will also allow

organizations to collaborate with international counterparts and to benefit from the knowledge

transfer.

It is crucial that a CoE is developed on the basis of an objective assessment of companies'

readiness and demands. It will provide the needed initial level of awareness and consultancy

services and will ensure seamless transfer and adoption of knowledge and practical

experience.

In order to improve the country's competitiveness, the CoE will carry out activities

establishing strategic alliances and partnerships with leading organizations from other

countries, with focus on joint research projects, development of methodologies and

processes, as well as pilot implementations of innovative solutions. Such benefits highlight

the value of creating a CoE.

To function effectively, the CoE must ensure, through ongoing activities, that its operation is

strategically aligned with the the needs of the country and the region. Such activities include:

Earning and maintaining strong commitment from relevant stakeholders

Carrying out need analysis and surveys

Outlining partnership plans

Designing core processes and information infrastructure and systems, which to

support the daily operations of the CoE

The CoEe can be operated as nonprofit organization (foundation, association or any other

form), with minimal initial staffing and physical requirements.

Stakeholders

The establishment and successful functioning of a CoE depends on a consensus in the society

and strong commitment from the key stakeholders from the private sector, the public sector,

and the intermediate organizations. Some examples of key stakeholders are:

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Government:

High level decision makers such as the President or Prime Minister

Commitment and strategic partnership with the ministries and National Agencies who

plan and execute the ICT policy in the country.

Private sector:

Big multinational companies such as IBM, Intel, Microsoft and others.

Key ICT companies in the country.

Small and medium sized enterprises that form the ICT sector.

Intermediate organizations:

Leading NGOs and think-thanks that influence the country ICT strategy and policy

ICT associations

International business support organizations:

Country programs

International institutions

EU programs and initiatives

Educational sector and institutes

Universities

High schools and colleges

Specialized institutes

In order for the CoE to be a successful endeavor, the balance between the interests of the

various stakeholders must be carefully managed. The stakeholders most committed to the

project should be empowered to lead the initiative and steer it to successful outcomes.

Following are a few examples of good practices in the establishment of Centers of

Excellence. The first is a network focused on achieving results on a pan-European level. The

second is a CoE started on a country level, with the ambition to have an effect on a regional

level. Finally, the third example describes a country-wide strategy aiming at turning the

country itself into a Center of Excellence.

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The EIT ICT Labs9

EIT ICT Labs' main mission is to turn Europe into a global leader in ICT innovation through:

1. Networking and collaboration:

EIT ICT Labs speeds up ICT innovation by bringing people together from different

countries, disciplines and organizations via mobility programs and co-location centers. By

developing and applying innovation catalysts, EIT ICT Labs leverage on existing regional,

national and EU-level funding instruments to speed up innovation in Europe. Its catalysts

focus on integrating the three elements of the knowledge triangle - Education, Research and

Business.

2. Education: it equips students, researchers, academics and business people with skills

for applying creativity, risk-taking spirit and entrepreneurial capacity. It aims to

empower top talents to lead Europe into a new ICT age.

The EIT has been set up to contribute to sustainable economic growth and competitiveness

by reinforcing the innovation capacity of the Union and its Member States. By fully

integrating the knowledge triangle of higher education, research and innovation, the Institute

will strongly contribute to tackling societal challenges under Horizon 202010

and bring about

systemic change in the way European innovation players collaborate. To achieve this goal,

the EIT combines strategic orientation at EIT level with a bottom up approach through its

Knowledge and Innovation Communities (KICs). KICs are highly integrated partnerships,

bringing together excellent universities, research centers, small and large companies and

other innovation actors on a long-term basis around specific societal challenges. Each KIC is

organized around a small number of interconnected co-location centers where partners work

closely together on a daily basis and with an unprecedented degree of common strategic

objectives. Co-location centers build on existing centers of excellence, developing them

further into local innovation ecosystems and linking them together into a broader network of

innovation nodes across Europe. Within the EIT framework , the individual KICs have been

given a large degree of autonomy in defining their internal organization, composition, agenda

and working methods, allowing them to choose the approach that is best suited to meet their

objectives. At strategic level, the EIT organizes the selection process of KICs, coordinates

them with a flexible framework and disseminates their best governance and funding models.

9 http://eit.ictlabs.eu/

10 http://ec.europa.eu/research/horizon2020/index_en.cfm?pg=home&video=none

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Through the KICs, the EIT helps to create environments where innovation is more likely to

thrive and to generate breakthroughs in the way higher education, research and business

collaborate. This approach helps addressing the increasingly complex societal challenges set

out in Horizon 2020 in a holistic way, bringing together excellent people from different

sectors, backgrounds and disciplines – who otherwise would not necessarily meet – to jointly

find solutions to the challenge.

The external evaluation of the EIT validated the concept of the EIT and its goals of

contributing to improving the innovation capacity of the EU by involving partner

organizations in integrated innovation, research and education activities at the highest

standards. Since the introduction of the EIT, the importance of EU support for tackling

societal challenges has increased in significance. The rationale for public intervention is

strong given the levels of market failure present and the missing incentives for firms to

engage in innovation addressing societal challenges.

The CIST11

The Center of Information Society Technologies (CIST) is an interdisciplinary research and

training institution of Sofia University (Bulgaria), motivated by the challenge to support the

development, introduction and wide use of Information Society Technologies (IST).

The main objective of the Center is to create and establish fruitful co-operation between the

University - the academic community and the industry - SMEs, NGOs, public administration,

local community, banking and financial institutions for co-ordinating the efforts in spreading

the IST wide implementation and use.

The research activities performed by the CIST staff have a pivotal role in integrating

awareness and understanding of IST, as well as their implementation in the Bulgarian Public

Society. Regional development, local economic development and issues of cohesion are

among the main goals in research, analysis and development of CIST.

Strong efforts have been applied to promoting the global society development using the new

technologies. The research activities of the Center offer different ways of how a large

number of national institutions and organizations can best benefit from new IST.

The Center brings together the theoretical and applied interdisciplinary research in IST and

their applications in the economic, social and natural sciences. CIST provides its capabilities

11 http://www-it.fmi.uni-sofia.bg/cist/

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at the service of the economic and social needs of the region and the country, in its efforts to

meet the standards of accession to the European Union.

The main aim of CIST is to become a national and regional Center of Excellence in

Information Society Technologies (IST) for South-East Europe. The Center devotes its

capacity to strengthen the process of IST implementation and to shorten the process of

scientific research development and industry applications.

An entire country as a CoE - Malta12

The government’s vision for 2010 is that Malta will become The Smart Island, one of the top 10

information societies in the world. The application of information and communication

technology will be ubiquitous; the Internet will be a social equalizer and the ICT industry will be

a main pillar of the economy. Malta has undertaken a robust strategy to achieve the ambitious

goals it has set for itself.

1. Egovernment

◦ Next-generation e-legislation

Electronic legislative framework aiming at being sensitive to the opportunities that new ICT

paradigms are presenting to the society and the economy.

◦ Smarter regulation

Strive to make the regulation of telecommunications and electronic services a core strength of

theICT environment.

◦ Improving accessibility in government IT operations

Issue specific policies and guidelines to regulate accessibility in the government’s IT operations.

Enhance the accessibility of all government on-line content and current e-government services,

and ensure that new services are more accessible to disabled persons.

◦ Enacting e-government legislation

Enact an e-government legislative framework to provide a concrete legal footing for

electronic filing of documents, accessibility by disabled persons, security, the regulation of

the use of Smart ID cards, and so on.

◦ Public access to information

12 http://www.epractice.eu/files/media/media1798.pdf

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Introduce measures to enable the streamlined digitalization of public sector information.

◦ Re-use of public sector information

Introduce programmes to make it easier and cheaper for content-provider companies to gain

access to public sector information held by government departments and organizations.

2. Society

◦ Building, growing and sharing national ICT resources

There are benefits to being a small country, and the sustainability of a world-class ICT

environment is one of them, because it provides economies of scale.

◦ Accessibility for all

Information and communications technology is to be used as an equalizing instrument to make

easier the integration of the disabled and the disadvantaged.

◦ Opening the way for older people

Raising awareness among the elderly about the usefulness of having and using a computer.

◦ Digital literacy

A national awareness programme to bring in as many people as possible to the fold of digital

literacy, focusing not just on personal computers and the Internet, but also on other forms of

digital communication.

◦ Information and communication technology used as a social leveler

Training in this field can improve job opportunities for the unemployed. Technology can also be

used to address the problem of illiteracy.

◦ Refurbished computer equipment for disadvantaged groups

Public service computers which can connect to the Internet and operate with normal applications

can be refurbished and sold on a token price to people coming from a disadvantaged background.

◦ Popularisation of ICT across all sectors

Reach out to those who still do not see value in technology, and invest more effort in ensuring

that every person is familiar with the benefits of technology in everyday life.

◦ Enhancing trust in ICT

Join forces with regulators, banks and the private sector to accelerate the principle of on-line

self-regulation and to deploy specific measures aimed at instilling more trust in ICT.

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◦ Energy conservation IT programmes

Promote the use of energy management software for businesses and consumers aimed at

reducing the electrical consumption of computing equipment.

3. Education

◦ ICT education

Huge investments in all state schools, to ensure that children from every background are

introduced to the use of computers as early in their lives as possible.

◦ ICT programmes in Universities

Expand the vocational, under-graduate and post-graduate programmes in Universities. By

investing in curriculum to widen the range of specializations available to students. The

involvement of the ICT private sector is essential.

◦ Student placement opportunities

Establishment of a Student-placement programme that allows students to gain experience of the

sector while they are studying, on an internship basis.

◦ E-learning as an educational driver

Use ICT to demonstrate that learning is fun. E-learning as a primary vehicle for ICT education

across all sectors and levels.

4. Careers

◦ Awareness campaign about ICT careers

In partnership with the educational authorities, industry and private IT training providers,

develop and run a continuous innovative marketing campaign aimed at attracting young

students to careers in ICT.

◦ Bringing women into ICT

Focused career guidance at secondary school and the development of world-class dedicated

ICT training programmes that are more attractive to women than those being offered today.

Not enough women are entering the world of ICT.

5. Business

◦ Supporting ICT take-up by businesses

Promote and support the development and take-up of ICT by businesses of all sizes and

types, using fiscal incentives and publicly funded e-commerce frameworks.

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◦ Customized support to micro-businesses and SMEs

Larger players have the resources to explore e-commerce, but micro-businesses and SMEs

may face a steep learning and organizational curve in finding their path through the digital

marketplace. Develop programmes geared towards exposing of micro-businesses and SMEs

to the electronic business environment.

◦ A new breed of SMEs

Work towards the creation of knowledge-based SME, particularly in the ICT sector. Help

ICT SMEs to grow from retailers into value-added service providers, focusing on specialized

but high-value services to the commercial community.

◦ Fiscal incentives for ICT investment

Devise innovative fiscal incentive schemes aimed at encouraging investors to set up high-

value sustainable ICT operations.

◦ Nurturing ICT entrepreneurial activity

Together with organizations that promote entrepreneurship and represent entrepreneurs,

promote ICT entrepreneurship - to encourage start-ups and investment in new opportunities.

◦ ICT start-up aid programmes

Develop a holistic framework to help ICT start-ups begin with low costs and overheads. This

assistance includes fiscal incentives, legal assistance, escrow services, intellectual property

advice, touch-down business space and training assistance.

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Annex V EU programs and projects supporting the

establishment of CoEs in IS ICT in FP7: Objectives and Overview13

The objective of ICT research under the EU’s Seventh Framework Programme (FP7)

is to improve the competitiveness of European industry – as well as to enable Europe

to master and shape the future developments of these technologies so that the

demands of its society and economy are met.

The EU Member States have earmarked a total of € 9.1 billion for funding ICT over

the duration of FP7; making it the largest research theme in the Cooperation

programme, which is itself the largest specific programme of FP7 (with 64% of the

total budget).

FP7 research activities will strengthen Europe’s scientific and technology base and

ensure its global leadership in ICT, help drive and stimulate product, service and

process innovation and creativity through ICT use and ensure that ICT progress is

rapidly transformed into benefits for Europe’s citizens, businesses, industry and

governments.

The Work Programme for 2012 with about €7 billion is the European Commission's biggest

ever funding package under the EU's Seventh Framework Programme for Research (FP7). It

is expected to create around 174 000 jobs in the short-term and nearly 450 000 jobs and

nearly €80 billion in GDP growth over 15 years.

Grants will promote research to tackle the biggest societal challenges facing Europe and the

world. Universities, research organisations and industry will be among more than 16.000

funding recipients. Special attention will be given to SMEs, including a package close to €1

billion. There will also be a new EU Prize for Women Innovators whose work has been

funded by FP7 or earlier programmes.

The ICT Work Programme 2011-12 under FP7 is divided into eight ‘Challenges’ of strategic

interest to European society, plus research into ‘Future and emerging technologies’ and

support for horizontal actions, such as international cooperation and pre-commercial

procurement14:

Challenge 1 - Pervasive and Trusted Network and Service Infrastructures

13 http://cordis.europa.eu/fp7/ict/

14 http://cordis.europa.eu/fp7/ict/programme/home_en.html

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Challenge 2 - Cognitive Systems and Robotics

Challenge 3 - Alternative Paths to Components and Systems

Challenge 4 - Technologies for Digital Content and Languages

Challenge 5 - ICT for Health, Aging Well, Inclusion and Governance

Challenge 6 - ICT for low carbon economy

Challenge 7 - ICT for the Enterprise and Manufacturing

Challenge 8 - ICT for Learning and Access to Cultural Resources

Future and Emerging Technologies (FET)

In addition, ICT research under the following themes is also supported by the EU in FP7.

e-Infrastructures to aid researchers will also be supported through the Research

Infrastructures Work Programme of the FP7 Capacities programme.

International Cooperation

Pre-Commercial Procurement.

While FP7 participants can in principle be based anywhere, there are different categories of

country which may have varying eligibility for different specific and work programmes15

:

MEMBER STATES - The EU-27;

ASSOCIATED COUNTRIES – with science and technology cooperation agreements

that involved contributing to the framework programme budget;

CANDIDATE COUNTRIES – currently recognized as candidates for future

accession;

THIRD COUNTRIES - the participation of organizations or individuals established in

countries that are not Member States, candidates or associated should also be justified

in terms of the enhanced contribution to the objectives of FP7.

15 http://cordis.europa.eu/fp7/who_en.html