Delivered to BIN@Sheffield 2014, Ryzard bialecki: developing innovation & technology acceleration in poland

1. Developing innovation & technology
acceleration in Poland
Ryszard Białecki,
Silesian University of Technology
Gliwice, Poland

2. Poland in the last 25 years
economy

3. Poland
Surface area
312 685 km2
6th in EU-28
70th in the world
Population
38,6M
6th in EU-28
29 in the world
GDP
$513 billion (2013 WB)
6th in EU-28
24 in the world
GDP pro capita
$23,275 (2013 WB)
22th in EU-28
46 in the world

4. 1.8 1.6 2.1 2.3 2.3 2.7
GDP pro capita
after 1989 in k€
3.6 4.1 4.1 4.5 4.3 4.5 5 5.2 5.7
6.6
8
9
13.9
11.2
12.3
11.3
13.4
13.4
12.7
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
increased by 760% in 22 years , average 31% a year
Source: GUS

5. inflation rate
585.80%
27.80% 10.10% 2.10% 2.60% 0.90%
1990 1995 2000 2005 2010 2013
Source: GUS

6. Ease of doing business, rank out of 189
Source The World Bank
Strong correlation between entrepreneurship and innovation
45
75
49 54
5 12 14
PL CZ SK HU DK FIN S
Barriers to entrepreneurship - reduced v 50% within last 10 years

7. social cost,
unemployment
Poland
Source: Eurostat

8. social cost,
people at risk of poverty or social exclusion
Poland
Source: Eurostat

9. Economic crisis in Europe did not dampen the ongoing
convergence.
Poland has weathered the crisis better than any other country in
Europe. It remains the only EU economy that avoided a recession in
2008-2010
Poland’s income levels are rapidly converging with the EU-15
income levels, reaching historically unprecedented highs.
Source: POLAND ENTERPRISE INNOVATION SUPPORT REVIEW: FROM
CATCHING UP TO MOVING AHEAD. The World Bank

10. Sources of success
rapid, radical and effective reform in the economy
111 days
shock therapy
implemented rapidly and decisively
lower social costs
massive burst of entrepreneurship
economic barriers lifted
1989-91 number of SMEs grew from 572k to 1.5M
general spirit of enterprise – driving force

11. Poland in the last 25 years
human capital

12. Secondary education PISA tests, rank of Polish students
significant progress
23
25
13
2006
2012
9 9
10
Science Math reading and writing
Source Program for International Student Assessment, OECD

13. 12.9
22.3
40.7
51.8
53.8
48.9
2012
2010
2005
2000
1995
1990
Human capital;
gross enrolment ratio
Source: A. Matras-Bolibok, P. Bolibok: Evolution of Human Capital in Transition Economy, The
case of Poland

14. Institutions of higher education
universities and equivalent
1990 120 public
2010 453 total, 321 private IHE
doctor degrees conferred
2324 2300
4400
5917
5367
4938
1990 1950 2000 2005 2010 2011
dynamics much lower than students
Source: GUS

15. Human resources % of population aged 25-64
89.6
76.5
88.8
81.7
4.5
10
5.6
27.6
PL UE-28 Region Nordic
having completed
tertiary education
participating in LLE
Source Jan Gmurczyk, Innovation of Polish economy, Present state and recommendation Instytut
Obywatelski 2014, in Polish

16. SOCIAL SCIENCES, ECONOMY, LAW
37.6%
SERVICES
8.5%
AGRICULTURE
1,7%
SCIENCE
8,3%
HUMANITIES AND ART.
9,0%
HEALTH AND SOCIAL WELFARE
7,6%
Human capital;
fields of studies 2013
SOCIAL SCIENCES, ECONOMY, LAW
37.6%
SERVICES
8.5%
AGRICULTURE
1,7%
SCIENCE
8,3%
HUMANITIES AND ART.
9,0%
HEALTH AND SOCIAL WELFARE
7,6%
EDUCATION
11,2%
TECHNOLOGY
16,0%
16.0%
8,3%
37,6%
8,5%
9,0%
7,6%
11,2%
Source: Higher Education in Poland 2013. Ministry of Science and Higher Education

17. Human capital
employment in R&D sector
employment dropped

18. Innovation level of Polish economy

19. EU-28 Innovation Ranking
POLAND
Source: Innovation Union Scoreboard 2014

20. Poland innovation performance
• slightly improved (0.9%) between 2006 and 2013
• relative performance to the EU declined from 54% in
2007 to about 50% in 2013.
Relative weaknesses
• Non-EU doctorate students,
• PCT patent applications
• License and patent revenues from abroad.
Relative strengths
• Non-R&D innovation expenditures
• Youth with upper secondary level education.

21. High growth
• Community designs,
• Community trademarks
• R&D expenditures in the business sector.
Strong declines
• Innovative SMEs collaborating with others,
• New doctorate graduates,
• SMEs innovating in-house
• Sales share of new innovations.
Source: Innovation Union Scoreboard 2014

22. 16
15.3
Researchers (FTE) per thousand labor force,
12
10.510.310.2
9.5
8.1 8.1 7.8 7.8 7.5
7.1 6.8
6.2
5.8
5.4 5.3 5.2 5.2 4.9 4.8 4.6
4.1
3.6 3.5 3.4 3.1 2.8
2.4 2.2 1.9
IC
FI
DK
LU
NO
FR
SE
PT
AU
UK
BE
GE
SL
IR
ES
SP
CZ
SW
NE
LT
SK
HU
GR
IT
HR
PL
BG
LV
MA
TR
CR
RO
Source: DG Research and Innovation Monitor human resources policies and practices in research
(LOT 1 Part 1) The Researchers Report 2012 Scorecards

23. 0 1 2 3 4
UE-28
PL
SK
HU
CZ
DK
SE
FIN
business
gov. high. ed., non-profit
R&D expenditure % GDP
Total R&D expenditure in Poland
increased from 0.6%GDP (2008) to 0.9%GDP (2012), mainly due to
government involvement
Source Jan Gmurczyk, Innovation of Polish economy, Present state and recommendation Instytut
Obywatelski 2014, in Polish

24. Structural funds for innovation support ,
€10 billion 2007-2013
• research infrastructure significantly enhanced
• did not trigger a significant breakthrough in innovation level
• venture capital and public R&D infrastructure mainly from
public funds. Limited impact on private R&D investment
• R&D-intensive foreign direct investment only 4.5% of total
business R&D spending (HU 13%, SK 21%)

26. Innovation investments by enterprises
segment (EU-27=100)
Non-R&D
innovation
expenditures
Venture capital
investments
PL 182 55
CZ 122 11
SK 115 lack of data
HU 71 32
DK 91 111
FIN 90 116
SE 113 166
Source Jan Gmurczyk, Innovation of Polish economy, Present state and recommendation Instytut
Obywatelski 2014, in Polish

27. other measures of innovation
PL EU-28 NORDIC REGION
patent applications to the
European Patent office per
million inhabitants 9.9 79.1 236.1 13.3
% of high tech export in total
export 5.9% 11.60% 9.90% 13.9%
% of innovative enterprises
employing at least 10 persons 27% 47% 58% 39%
Source Jan Gmurczyk, Innovation of Polish economy, Present state and recommendation Instytut
Obywatelski 2014, in Polish

28. 160
140
120
100
80
60
40
20
0
other measures of innovation
% of innovative SMEs collaborating with others
EU-27=100
PL Cz SK HU DK FIN SE
Source: Jan Gmurczyk, Innovation of Polish economy, Present state and recommendation
Instytut Obywatelski 2014, in Polish, after Innovation Union Scoreboard 2013

29. 3,167
structure of income in HE
1138 1138
146
585
657
270 221
9
25
Public HEI
total
univerisities universities
of technolgy
universities
of economy
Private HEI
income from
research
income from
teaching

30. Diagnosis
• competitive advantage of Polish companies resulted from
cheap labor force, not capital intensive investments in
development of new technology
• institutional infrastructure supporting innovation system
 Fragmentation
 Unevenly distributed strategy and implementation (5
agencies and ministries) managing 22 innovation support
programs.
 Regions own innovation support initiatives.
• risk-averse selection for public funding favoring large and
mature firms and medium-low technology industries
• lack of venture capital
• limited number of SMEs involved in new technologies

31. • international corporations seldom locate R&D centers
in new EU countries
• low population of research staff
• brain drainage (salaries)
• HE atomized, teaching - main source of income
• Innovation funding – technology absorption rather
than breakthrough innovation
• research staff reluctant to be involved in commercial
activities

32. Measures taken to enhance innovation
Strategy for innovation and efficiency of the economy, 2013
Ministry of Economy.
Objective 1 Adjustment of the regulatory and financial
environment to the needs of innovative and efficient economy
Objective 2 Stimulating innovation through increase in knowledge
and work efficiency
Objective 3 More efficient use of natural resources and raw
materials
Objective 4 Enhanced internationalization of Polish economy
Budget allocation

33. Council of Ministers (April 8, 2014) adapted the Enterprise
Development Program, which is an integral part of the
National Smart Specialization Project
HEALTHY SOCIETY
1. medical engineering technologies, including biotechnologies, medical
2. Diagnosis and treatment of lifestyle diseases and personalized medicine
3. Production of medicinal products
AGRI-FOOD bio-economy, the forest-TREE AND ENVIRONMENTAL
4. Innovative technologies, processes and products of the agri-food and
forestry-wood
5. Healthy food (high quality and performance of production)
6.Biotechnologiczne processes and specialty chemicals and environmental
engineering
SUSTAINABLE ENERGY
7. High efficiency, low-emission and integrated systems of production,
storage, transmission and distribution of
8. Smart and energy efficient building
9. Environmentally friendly transport solutions

34. NATURAL RESOURCES AND WASTE MANAGEMENT
10. Modern technology sourcing, processing and use of natural
resources and the production of substitutes
11. Minimize the generation of waste, including unfit for processing
and use of materials and energy waste (recycling and other
recovery methods)
12. Innovative technologies of water treatment and recovery and
reducing its consumption
INNOVATIVE TECHNOLOGIES AND INDUSTRIAL PROCESSES
(ACCORDING HORIZONTAL)
13. The multifunctional materials and composites with advanced
features, including nanoprocesses and nanoproducts
14. sensors (including biosensors) and intelligent sensor networks
15. Smart grids and geo-information technologies
16. Electronics based on conductive polymers
17. Automation and Robotics processes
18. Optoelectronic systems and materials

35. • 2007 - establishment of National Center for Research and
Development budget €1.1 billion↑ , applied research
• 2009 – establishment of National Science Center Budget
€202M, fundamental research
• NCRD – financial schemes where contribution from
business reaches 50% and the coordination is with the
industrial partner
• amendment to the bill on Higher Education - Intellectual
Properties Rights with individual researchers

36. • creation of a network of technology parks
• 2009 – establishment of National Science Center Budget
€202M, fundamental research
• NCRD – financial schemes where contribution from
business reaches 50% and the coordination is with the
industrial partner

37. National Center for Research and Development
commissioned 2007, implementing agency of the Minister of
Science and Higher Education.
AIM
strengthen cooperation between Polish business and scientists
and promote the commercialization of the research results
ALSO
intermediary for operational programmes financed by structural
funds :
• Innovative Economy,
• Human Capital
• Infrastructure and Environment,
ADDITIONALLY grants
• European Economic Area
• Norwegian Financial Mechanism

38. National Center for Research and Development
Budget 2013
€1.1 billion – direct Ministry contribution
€ 0.24 billion – entrepreneur own contribution
€ 5.2 billion – total served project
59 calls for proposals, 844 contracts
2014 increase by 20%

39. National Center for Research and Development
2009-14 in billion €
0.11 0.12
0.61
1.10 1.07
1.27
source: NCRD Annual Report

40. GRAF-TECH program. Bundle of graphen projects
Prof. Włodzimierz Strupiński, first in the world industrial method
of production of graphene plates, patented in 2010.
Nano Carbon started commercial production and sales in
December 2013.
Other 15 projects with the greatest potential funded
• Ceramic composites with graphene
• Epitaxial growth of graphene on metallic surfaces
• Graphene magnetic field sensors with industrial applications
• Graphene pastes and inks for printing conductive paths
• Graphene coating of sprockets and plain bearings
•
•
•

45. Public-private support for commercialization
of R&D results with the participation of capital funds.

46. innovation centers in Poland

47. technological parks, incubators, technology transfer
centers etc.

48. Gliwice,
a successful and innovation friendly city

49. Gliwice – seat of Silesian University of Technology
Warsaw
A4 A1
Cracow
Gliwice
www.polsl.pl
Vienna
Berlin
Kiev
• Population: 190k
• part of 2.5 M conurbation
• Member of World
Technopolis Association
• Successful
transformation into high
tech region- 300k jobs
lost in mining
• SUT enrolment 30k
• numerous R&D institutes
• unemployment 7.8% vs
14.0% country average
Jan. 2014)

50. Gliwice - life cycle of innovation
Scientific Technological Park Technopark Ltd
Joint venture of City of Gliwice, SUT and Katowice Special Economic Zone
2011 – National Leader on Innovation
2012 – National Best Municipal Corporation

51. 3- 4 years incubation at Technopark
moving to Nowe Gliwice Ltd– city owned

52. mobile and console applications
Nintendo, 3rd best sold IPAD application in US
Microsoft GOLD Independent Software Vendor

53. Special Economic Zone
17.5 jobs
65 enterprises
€1.7 billion investments
Financial Times – second best Special Economic
Zone in Europe and 11th in the world