Research, Development & Innovation in Visegrad Countries:

An Overview

Introduction

The following overview juxtaposes the main policies and pub-lic bodies, which implement them, and presents the basic sta-tistics in the field. The overview uses definitions as stated in the Oslo and Frascati Manuals for collecting statistics in inno-vation, research and development. Innovation is understood as the implementation of a new or significantly improved pro-duct (good or service), process, new marketing method, or new organizational method in business practices, workplace organization or external relations. Research & development is crucial for the innovation process, however much innovation activity is more of interactional and transactional character and includes various organisational, technological, financial and commercial steps. Therefore, countries pursue the creati-on of national innovation system, which are blends of science and technology policy and industrial policy, dealing both with the creation of knowledge and in its diffusion and application.

The project was financed by the International Visegrad Fund / Prague, 2017

All four Visegrad countries have in recent years taken po-licy measures aimed at improving the legal, infrastructural and financial environment for research and development, its commercialization as well as generation and adoption of innovations. Often, these programs have focused on startups, offering them financial and knowledge support. Some facilitate the flow of capital to innovative companies and R&D activities. None of the V4 countries has howe-ver tackled the biggest challenge of the transformation to knowledge-based society, i.e. a thorough reform of educa-tional systems. Moreover, the public money available for activities discussed here comes in clear majority from the EU structural and investment funds. Once these sources become scarcer, which will be under the next financial fra-mework after 2020, all four countries may face a sharp drop in R&D&I expenses. Even more important for the V4 gover-nments it will be to redesign their approaches, incentivize business sector and motivate its cooperation with universi-ties. As innovation policy often takes place on the regional level, their governing bodies should be more involved in the policy creation and implementation.

Research and experimental development (R&D) is divided into three categories: basic research (work undertaken primarily to acquire new knowledge without any particular application, applied re-search (investigation undertaken to acquire new knowledge directed towards a practical aim), and experimental development (systematic work directed to producing new or improve existing products or processes). R&D is performed in three

main sectors business (enterprises, including pub-lic and government-controlled enterprises), govern-ment (all of its units that are not themselves part of the higher education sector) and higher educa-tion sector (all institutions providing formal ter-tiary education programmes, research institutes, centres, experimental stations and clinics with own R&D activities).

Main policies Government bodies Public institutions Selected features

Czech Republic National Research, Development and Innovation Policy (2016)

National Research and Innovation Strategy for Smart Specialization of the Czech Republic (2016)

(I) Research, Development and Inno-vation Council chaired by vice-prime minister

(II) Section for Science, Research and Innovation, Office of the Government

(III) Ministry of Education, Youth and Sports is the central administrative authority, whose main responsibility is international collaboration, support for large infrastructures, specific university research

(IV) Ministry of Trade and Industry: is responsible for industrial research, development of techniques and technol-

(I) The Czech Academy of Sciences a public non-university research institu-tion comprised of a network of scientific bodies, grant projects, it provides financial aid for scientific projects of fundamental research both to erudite scientists and teams, and to young and beginning scien-tific members

(II) Technology Agency prepare and implement applied research programs, including those for the needs of state administration, RDI tenders and public procurement

(III) Czech Science Foundation provides targeted support for fundamental research

i) Recent policy focus is on the estab-lishment of a functioning system of RDI management and commercializa-tion of research

(ii) National Innovation Fund (soon to be operational) will invest into innova-tive SMEs, pre-seed phase or in proof of concepts

(iii) CzechInvest advises Czech entre-preneurs and foreign investors, also in the area of R&D&I

HungaryNational Smart Specialisation Strategy (2014)

National Research and Devel-opment and Innovation Strategy (2013)

I) National Research, Development and Innovation Office is a government agen-cy that coordinates the national research, development and innovation ecosystem

(II) National Level Steering Board, Inter-ministerial Working Group, and S3 Management Team under the Govern-ment Office coordinate the implementa-

(I) National Research, Development and Innovation Fund

(II) Regional Innovation Agencies imple-ment the RIS3 at the regional level

(I) Main Goal of the R&D&I Strategy - to increase expenses in this field to 1.8% of the GDP by 2020

PolandNational Research Programme (2011)

Small Innovation Act (2016)

(I) Innovation Council and Inter-minis-terial Committee for Innovation presid-ed over by the Minister of Development

(II) Ministry of Science and Higher Education (MSHE) is the main body responsible for R&D policy

(I) National Science Centre support basic research

(II) National Centre for Research and De-velopment is the implementing agency of the for science, technology and innovation policies, also responsible for technology transfer and commercialization

(III) Polish Agency for Enterprise De-velopment supports entrepreneurship, innovativeness human & resources devel-opment, mainly at SMEs level

(IV) Polish Development Fund, has pro-grams for new innovative companies

(I) White Paper for Innovation (2016) is the basis for a package of innova-tion laws to come into force in 2018, envisages the increase of R&D spend-ings to 1,7 % of GDP

(II) National Smart Specialization is implemented via regional strategies by voivodships

(III) StartInPoland is a program to support startups (both domestic and foreign), funded from OP Intelligent Development and private capital

SlovakiaResearch and Innovation Strategy for Smart Specialisation of the Slovak Republic (2013)

(I) Government Council for Science, Technology and Innovations is presided over by vice-prime minister

(II) Ministry of Education, Science, Re-search and Sport responsible for science and technology policy

(III) Ministry of Economy is responsible for the innovation policy

(I) Slovak Research and Development Agency support research and development (basic and applied research and experi-mental development

(II) Slovak Innovation and Energy Agency fulfills the function of Technology Agency and implements innovation policy

(III) Research Agency implements Euro-pean Structural and Investment Funds

(I) Concept for the support of startups and startups ecosystem (2015), intro-duced instruments to support new firms e.g. a new type of company (simple joint-stock company)

(II) National Holding Fund manages 7 venture capital funds supporting start-ups, scale-ups, among them Innovation and Technology Fund

Overview of Innovation, Research and Development policies and implementing bodies

Funding Source of funds for R&D (as % of total R&D funds)

Bussines sector

Private non-profit sector

Government sector

Abroad

Structure of R&D funding (2015)

32,5 % Abroad 0,1 % Private non-profit 0,7 % Higher education 32,2 % Government 34,5 % Business

1,6 % EU 0,1 % Hungary0,7 % Slovakia 0,2 % Czech Republic 0,3 % Poland

55,3 % EU 49,7 % Hungary25,1 % Slovakia 34,5 % Czech Republic 39 % Poland

10 % EU 15 % Hungary39,4 % Slovakia 32,5 % Czech Republic 16,7 % Poland

32,3 % EU 34,6 % Hungary31,9 % Slovakia 32,2 % Czech Republic 41,8 % Poland

16,7 % Abroad 0,2 % Private non-profit 2,2 % Higher education 41,8 % Government 39 % Business

15 % Abroad 0,7 % Private non-profit 34,6 % Government 49,7 % Business

39,4 % Abroad 0,3 % Private non-profit 3,3 % Higher education 31,9 % Government 25,1 % Business

Czech Republic

Poland

Hungary

Slovakia

325

0,24

3 431

6,50

8

10 004,958

151

0,93

5

927,

272

R&D expenditures by sector and source of funds

Total R&D expenditure in all sectors as % of GDP (2015)

Total R&D expenditure in all sectors (in milion EUR, 2015)

R&D expenditure financed from business sector (in million EUR, 2015)

R&D expenditure spent in business sector (in million EUR, 2015)

2,03 % 1,95 %

1,38 %

1 % 1,18 %

1 683,636

1 122,165

751,189

232,349

2,03 % EU1,95 % Czech Republic 1,38 % Hungary 1 % Poland1,18 % Slovakia

3 250,243 Czech Republic1 510,935 Hungary4 316,508 Poland927,272 Slovakia10 004,958 Total V4

1 122,165 Czech Republic751,189 Hungary 1 683,636 Poland232,349 Slovakia

176

5,00

3

201

0,32

5

5 144,142

110

9,62

5

259,

189

1 765,003 Czech Republic1 109,625 Hungary2 010,325 Poland259,189 Slovakia5 144,142 Total V4

2,5 %

2,0 %

1,5 %

1,0 %

0,5 %

0,0 %

2 000,000

1 500,000

1 000,000

500,00 0

0

10 000,000

9 000,000

8 000,000

7 000,000

6 000,000

5 000,000

4 000,000

3 000,000

2 000,000

1 000,000

0

5 000,000

4 000,000

3 000,000

2 000,000

1 000,00 0

0

809,

513 1

246,

433

264

5,05

4

183,

039

406,

069

1 805,335

1 047,051

523,147

296,133

663,

171

105

2,98

6

217

5,27

6

200,

778

258,

341

R&D expenditure financed from government sector (in million EUR, 2015)

R&D expenditure from higher education sector (in million EUR, 2015)

R&D expenditure in government sector (in million EUR, 2015)

R&D expenditure in higher education sector (in million EUR, 2015)

663,171 Czech Republic200,778 Hungary1 052,986 Poland258,341 Slovakia2 175,276 Total V4

1 765,003 Czech Republic1 109,625 Hungary2 010,325 Poland259,189 Slovakia5 144,142 Total V4

23,014

94,979

30,208

n/a

1 047,051 Czech Republic523,147 Hungary 1 805,335 Poland296,133 Slovakia

23,014 Czech Republicn/a Hungary 94,979 Poland30,208 Slovakia

2 000,000

1 500,000

1 000,000

500,00 0

0

3 000,000

2 000,000

1 000,00 0

0

100,000

80,000

60,000

40,000

20,000

0

50 000,000

40 000,000

30 000,000

20 000,000

10 000,000

0

0

500

1000

1500

2000

1 020,191

330,736310,195

1 753,95

1 056,304

225,903

722,688

365,642

1 056,304 Czech Republic225,903 Hungary 722,688 Poland365,642 Slovakia

R&D expenditure coming from abroad (in million EUR, 2015)

Total government allocations for R&D as % of total general government expenditure

1 200,000

1 000,000

800,000

600,000

400,000

200,000

0

Government expenditure

1,38 % EU 1,46 % Hungary0,56 % Slovakia 0,99 % Czech Republic 0,93 % Poland

1 020,191 Czech Republic310,195 Hungary1 753,95 Poland330,736 Slovakia

Total government allocations for R&D *

(* not actual spending)

Expenditure by type of R&D activity

Basic research

Expenditure on basic research per sector (in million EUR, 2014)

Total R&D expenditure on basic research in all sectors (in million EUR, 2014)

Bussines

Government

Higher education

as % of GDP

957,271 Czech Republic264,531 Hungary1 295,414 Poland302,002 Slovakia

50,23 Czech Republic55,906 Hungary90,099 Poland16,164 Slovakia

449,859 Czech Republic108,637 Hungary396,769 Poland116,311 Slovakia

455,266 Czech Republic99,989 Hungary804,173 Poland169,301 Slovakia

0,61 % Czech Republic0,25 % Hungary0,32 % Poland0,4 % Slovakia

0

50

100

0

100

200

300

400

500

0

200

400

600

800

1000

957,271

1�020,191310,195

0

300,000

600,000

900,000

1 200,000

1 500,000

264,531302,002

1�753,95

330,736

1�295,414

Applied research

Total R&D expenditure on applied research in all sectors (in million EUR, 2014)

as % of GDP

1 081,14 Czech Republic417,984 Hungary76,278 Poland190,334 Slovakia

0,69 % Czech Republic0,4 % Hungary0,19 % Poland0,25 % Slovakia

1�753,95

1�020,191330,736

1�753,95

330,736

0

300,000

600,000

900,000

1 200,000

1 500,000

417,984

76,278190,334

1�081,14

1�753,95

1�020,191330,736

1�753,95

330,736

0

300,000

600,000

900,000

1 200,000

1 500,000

417,984

76,278190,334

1�081,14

Expenditure on applied research per sector (million EUR, 2014)

Bussines

Government

Higher education

722,91 Czech Republic289,393 Hungary289,081 Poland70,17 Slovakia

109,557 Czech Republic57,073 Hungary267,811 Poland62,41 Slovakia

240,445 Czech Republic71,517 Hungary201,85 Poland55,319 Slovakia

0

100

200

300

400

500

600

700

0

50

100

150

200

250

300

0

50

100

150

200

250

Experimental development

Total R&D expenditure on experimental development in all sectors (in million EUR,

as % of GDP

1 052,251 Czech Republic728,664 Hungary1 805,822 Poland177,297 Slovakia

0,69 % Czech Republic0,4 % Hungary0,19 % Poland0,25 % Slovakia

Expenditure on experimental development per sector (million EUR, 2014)

Government

722,91 Czech Republic289,393 Hungary289,081 Poland70,17 Slovakia

3,357 Czech Republic30,618 Hungary260,952 Poland11,047 Slovakia

1�753,95

1�020,191330,736

1�753,95

330,736

0

300,000

600,000

900,000

1 200,000

1 500,000

728,664

177,297

1�052,251

1�805,822

Bussines

0

100

200

300

400

500

600

700

900

1200

1500

0

50

100

150

200

250

300

89,724 Czech Republic21,352 Hungary120,785 Poland5,838 Slovakia

37,407 Czech Republic8,115 Hungary61,277 Poland6,161 Slovakia

Higher education

0

50

100

150

200

250

National public funding to transnationally coordinated R&D (in million EUR, 2014)

% of innovative enterprises in total number of enterprises (2014)

36,1 % EU 31,3 % Hungary34,9 % Slovakia 29,1 % Czech Republic 30,4 % Poland

42,0 % Czech Republic25,6 % Hungary21,0 % Poland31,8 % Slovakia

Employment in knowledge-intensive activities as % of total employment (2016)

Innovative enterprises

97 353

57 185

153 475

28 825

31 %38 % 39 % 43 %

56 %69 % 75 %

87 %

27 % 30 %37 % 42 %

97 353 Czech Republic57 185 Huntgary153 475 Poland28 825 Slovakia

31 % Czech Republic38 % Hungary39 % Poland43 % Slovakia

31 % Czech Republic38 % Hungary39 % Poland43 % Slovakia

27 % Czech Republic30 % Hungary37 % Poland42 % Slovakia

Total head count in R&D (2014) % of female

% of researchers

% of female researchers

R&D human capital

0,0

0,5

1,0

1,5

2,0 1,97111,9937

1,405

0,9844

1,2271

1,9 % EU1,9 % Czech Republic 1,4 % Hungary 0,9 % Poland1,2 % Slovakia

269,91 Czech Republic 222,3 Hungary 609,16 Poland49,75 Slovakia

% of total employment

Patent applications to the European Patent Office (2014)

1 000

750

500

250

0

222,3269,91

609,16

49,75

0

50

100

150

200

250

234,02

50,95 50,02

34,95

18,68 234,02 European Union 50,95 Czech Republic50,02 Hungary34,95 Poland18,68 Slovakia

12,42 % European Union49,45 % Czech Republic66,67 % Hungary37 % Poland68,18 % Slovakia

Patent applications to the EPO per million of active population

Foreign ownership of domestic inventions in patent applications to the EPO as % of all patent applications (2013)

12,42 %

49,45 %

37 %

66,67 % 68,18 %

Sources

Eurostat: Database for Science, Technology and Innovation, re-trieved in June 2017

Guidelines for Collecting and Reporting Data on Research and Experimental Development, Frascati Manual, OECD, 2015

Guidelines for Collecting and Interpreting Innovation Data, 3rd Edition, Oslo Manual, OECD, Eurostat, 2005