The overall structure of the National Innovation System in Poland will be discussed. Forms of support for government strategy (Responsible Development Strategy). The role of the National Center for Research and Development in support of the above mentioned strategy. New forms of R & D funding used by NCRD including VC funds (fund of funds) and the DARPA-type approach to funding projects.

1. Challenges of National Innovation
System in Poland
Stanislaw Dyrda PhD, MSE, Ass. Prof.
Warsaw University of Technology, Faculty of Management
National Centre for Research and Development

2.  NATIONAL INNOVATION SYSTEM –DEFINITION
 NIS OF POLAND –ACTORS
 NIS OF POLAND - IDENTIFIED CHALENGES
 ECONOMIC OVERVIEW OF POLAND
 RDI SYSTEM CHARACTERISTICS
 RESPONSIBLE DEVELOPMENT STRATEGY
 INNOVATION ECOSYSTEM
 NCBR ACTIVITIES
 NEW APPROACH TO RDI
 CHANGES OF PARADIGMS
Agenda

3. • The National Innovation System is the flow of
technology and information among people,
enterprises and institutions which is key to the
innovative process on the national level.
• Innovation and technology development are
results of a complex set of relationships among
actors in the system, which includes enterprises,
universities and government research institutes.
National Innovation System in Poland

4. Central government
Administration (Ministries,
Agencies, Fundations, Funds, etc.)
Local authorities (in particular
entities responsible for
innovation funding),
technological parks, etc.
State-owned Universities, State
owned Research Institutes, etc.
Private enterprises (inluding big
enterprises, SMEs, small
offices/home offices, startups),
etc.
private equity/venture capital
funds, business angels, banks,
private research entities,
private research entities
State-owned companies, banks.
public-private
partnership,
clusters, funds
of funds etc.
National Innovation System in Poland - actors
STATE OWNERSHIP PRIVATE OWNERSHIP

5. • Provide the necessary funding to support research
and innovation activities (increase GERD/BERD,
use of EU funds)
• Ensure the continuity of funding for prospective
projects at various stages of development - from
basic research, through applied research to market
implementations and production scaling.
• Support national strategies, in particular –
Responsible Development Strategy.
• Ensure the transition towards sectors with higher
technological content and value added to sustain
strong growth performance
National Innovation System in Poland –
identified challenges

6.  Poland is the 8 largest EU economy, since 2004 it
has grown over 2 times (from 203 bn USD in 2004 to
467 bn USD in 2016 according to IMF)
 General government gross debt in Poland is
relatively small (50%), Greece (177%), Italy (132%),
Portugal (130%), Ireland (110%)
 Population 38.5 million people, well-educated and
ambitious
Source: Eurostat, International Monetary Fund - the forecasted value for 2017
Chart: GDP growth in Poland (%) 2004-2017
5.1
3.5
6.2
7.2
3.9
2.6
3.7
4.8
1.8 1.7
3.4 3.6
2.9 3.4
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0.0
2.0
4.0
6.0
8.0
10.0
Economic Indicators

7. Number of patent applications

8. Patent applications, broken down by
types of applicants

9. Patents issued

10. 31.27
27.41
8.61
2.17
4.69
2
0.7
Regional OP
OP Infrastructure and
environment
OP Intelligent Development
OP Knowledge, Education and
Development
OP Digital Poland
OP Eastern Poland
OP Technical Assistance
EU funds for Poland
2014-2020 financial perspective
Budgets of operational programmes [Billions Euro]

11. EU Operational Programs funds for
Poland and NCBR (2014-2020)
27.4
8.6
4.7
2.2
2.0
0.7
31.3
0
10
20
30
40
50
60
70
80
Poland = 76,9 BN Euro
Regional
Programmes
OP Tech
Assistance
OP Dev of
Eastern Poland
OP Digital Poland
OP Knowledge
Education Dev
OP Smart
Growth
OP
Infrastructure
and Environment
Chart: European funds for Poland and NCBR (2014-2020)
4.556
1.445
1.033
0.029
0
1
2
3
4
5
6
7
8
NCBR = 7,063 BN Euro
OP Digital Poland (3.3, III)
OP Knowledge Education Dev (III)
OP Smart Growth (IV)
OP Smart Growth (I)
Allocation(BillionEuro)
Source: Ministry of Infrastructure and Development, NCBR
• 82.5 bn euro cohesion policy budget
• of which 76.9 bn euro Operational
and Regional Programmes
• Over 7 bn euro for NCBR
• including 6 bn euro – OP Smart
Growth (Priority I - Support of
innovation in enterprises and Priority
IV - Increasing R&D potential)
Allocation(BillionEuro)

12. Main institutions stimulating R&I in
Poland
• POLISH DEVELOPMENT FUND – PFR:
•POLISH AGENCY FOR ENTERPRISE
DEVELOPMENT – PARP
•POLISH INVESTMENT AND TRADE AGENCY -
PAIH
MINISTRY OF
DEVELOPMENT
•NATIONAL SCIENCE CENTRE - NCN
•NATIONAL CENTRE FOR RESEARCH AND
DEVELOPMENT - NCBR
MINISTRY OF SCIENCE
AND HIGHER EDUCATION
•DEDICATED PROGRAMMES STIMULATING
INNOVATIONS AND RESEARCH PROJECTS IN
RELEVANT SECTORS
OTHER MINISTRIES and
INSTITUTIONS
e.g. Ministry of Finance,
Ministry of Digitization,
Ministry of National
Defence, Local
authorithies etc.
Research&Innovations

13. Key Documents of Innovation System
Technological
Foresight of
Industry - InSight
2030
(2010)
National
Research
Programme
(2011)
National
Smart
Specialisations
(2014)
Responsible
Development
Strategy
(2016)
Ministry of
Economic
Development
Ministry of Science
and Higher
Education
Ministry of Economic
Development
In cooperation
with World Bank
Ministry of
Development

14. New energy technologies → Advanced Technologies for Energy
Generation, Technologies Supporting Development of Safe Nuclear
Power Engineering
Diseases of affluence, new medicines and regenerative medicine →
STRATEGMED launched in 2013
High IT technologies and mechatronic technologies
New material technologies → TECHMASTRATEG launched in 2016
Environment, agriculture, forestry → BIOSTRATEG launched in 2014
Social and economic development of Poland in the context of
globalization
Security and defence → Since 2011 NCBR takes actions related to
scientific research and studies for the purposes of national defense
and security
1.
2.
3.
4.
5.
6.
7.
• Document of 16 August 2011
National Research Programme

15. Innovative technologies and industrial processes (in horizontal approach)
Healthy society
Agri-food, forestry-timber and environmental bioeconomy
Sustainable energy
Natural resources and waste management
1.
2.
3.
4.
5.
• Approved on 8 April 2014
• All specialisations divided into 5 groups (initially 18 specialisations)
• National Smart Specialisations – the latest update made on 3 December 2015
• Currently 20 smart specialisations
National Smart Specialisations

16. Responsible Development Strategy

17. 79%
of EU
AVERAGE
for
GDP PER
CAPITA
25%
of GDP for
INVEST
MENTS
2%
of
GDP
for
R&D
>22,000
of
MID - SIZED AND
LARGE
COMPANIES
70% MORE
POLISH FDI
Source: Plan of Responsible Development
Objectives to be reached before 2023

18. Fundamental
Research
NCN
Aplied Research
NCBR,
various
Foundations
Private equity
funds
Business Angels
Market
research,
Product
deployment
PFR/PARP
various
Foundations
Private equity
funds
Business Angels
Production scaling
/Investments
PFR/ ARP
PFR/PAIH
BANKS (CREDIT),
Private equity funds/VC Funds
Globalization
NCBR
PFR
BANKS
Privete Equity
Funds/VC Funds
CONTINUITY OF FOUNDING

19. National Centre for Research and
Development (NCBR)
• R&D-supporting government agency, subordinate to the
Ministry of Science and Higher Education
• Largest research funding agency in Central & Eastern Europe
• Funded from state budget and EU funds
• Has run > 50 programmes in 2014-17
• Institutional collaboration (ARP, NCN, GDDKiA and others)
• International partnerships (Israel, RSA, Singapore, Taiwan &
other)

20. NCBR budget in bn EUR
1.329
1.451
0.765 0.718
2014 2015 2016 2017
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6

21. How do we act?
• Encouraging industry to commercialise research
by co-funding R&D projects
• Bridging science with business
• Providing entrepreneurs with „risk insurance policy”
• Helping „from idea to industry”
• Effectively assists in building a lasting technological edge
of the Polish economy
• Current EU Operational Programmes: Smart Growth;
Knowledge, Education, Development

22. For whom?
42 %
26 %
20 %
8 %
3 %
Consortia
Enterprises
Higher Education
Institutions
Research institutes
PAN units
WAT, PIT-RADWAR,
AGH, PW, PŚ
EIT+, ADAMED, POLONIA AERO,
SELVITA, SKOTAN
PW, UW, AGH, WAT, UJ
GIG, IMN, IPJ, ITE,CIOP
INSTITUTES OF: BIOCHEMISTRY, BIOPHYSICS,
ORGANIC CHEMISTRY, PHYSICS,
NUCLEAR PHYSICS, PHARMACOLOGY PHYSICS
AVERAGE GRANT VALUE (PER ENTITY) EUR 3,38 m

23. 10 largest beneficiaries
390.5 Warsaw University of Technology
320.75 University of Warsaw
316 AGH University of Science and Technology
262 Military University of Technology in Warsaw
202 Jagiellonian University
145.5 Łódź University of Technology
181 Wrocław Research Centre EIT+
180.25 Wrocław University of Technology
158.5 Silesian University of Technology
139.75 Medical University of Warsaw
Total funding value of all contracts in m EUR – as of 1 August 2016

24. Building and
equipping
Wielkopolska
Centre
for Advanced
Technologies
(WCZT)
Centre for Advanced
Materials and Technologies
(CEZAMAT)
Clean Coal Technologies
Centre (CCTW)
University of Warsaw
Biological and Chemical
Research Centre:
Ochota Campus (CENT III)
Centre for Pre-Clinical
Research and Technologies
(CePT)
Lower Silesian Centre for
Materials and Biomaterials
Wrocław Research Centre
EIT+
Large research infrastructure in Poland
Projects co-funded under the Operational Programme Innovative Economy
POZNAŃ
WROCŁAW
KATOWICE
WARSAW

25. NCBR PROGRAMMES
FROM IDEA TO INDUSTRY
From highest risk phase up to foreign expansion

26. „Idea” stage
BRIdge Alfa
Budget: EUR 112.5 m
• Bridging innovators with seasoned
entrepreneurs
• Funding early stage ideas with
commercialisation potential
• Spin-off incubation by investment
vehicles, the so-called alfas
TANGO: joint NCBR-NCN venture
Budget: EUR 10 m
• Practical application of fundamental
research
• Facilitating science units introducing
modern products or technologies
to the market, e.g. by covering market
analyses costs

27. NCBR
ALFA
Management
Pre-incubation
Proof of Principle
Inwestor
80% 20%
Financing instrument – support for
R&D projects in seed phase
SPIN
OFF
Support for spin-off
up to 1 M PLN
SPIN
OFF
SPIN
OFF
Alfa as donation operator
(up to 1,6 M €)

28. Capital Funds of NCBR (within PFR – Polish
Development Fund)
NCBR VC
(Venture Capital)
Budget: 1 100 M PLN
• First Polish, professional institutional
investor
• Market of financing
• Inwestments into SMI with technological
profile with high potential for growth
NCBR CVC
(Corporate Venture Capital)
Budget: 880 M PLN
• Planned 6-9 funds with capitalization of o
60-100 M PLN each in various market
sectors
• Portfolio companies with the possibility
of passing ideas in a corporation
• Faster project implementation

29. Idea development stage on Fast Track
– NCBR flagship programme
Fast Track for SMEs
Budget: EUR 250 m
• Minimal formalities, intuitive
procedure, decision made in 60 days
• Entrepreneurs „learn” how to invest in
innovations and how to collaborate
with scientists
• Funding – max. 80%
Fast Track for large enterprises
Budget: EUR 100 m
• Minimal formalities, intuitive procedure,
decision made in 90 days
• Incentive to collaborate with scientists
and develop own R&D teams
• Funding – max. 65%

30. SECTORAL PROGRAMMES
SUPPORTING FLAGHIPS
Development of key Polish economy sectors

31. Sectoral programmes- examples
INNONEUROPHARM
Budget: EUR 47,5 m
Pharmaceutical
and neuromedical sectors
e.g. innovative medical
products
INNOMOTO
Budget: EUR 62.5 m
(I competition)
Automotive sector
e.g. driverless car prototype
GAMEINN
Budget: EUR 20 m
(I competition)
Videogames sector
e.g. graphic engines
development

32. Domestic strategic programmes
STRATEGMED
Budget: EUR 200 m
• Combating civilizational
diseases
• Development of
regenerative medicine
BIOSTRATEG
Budget: EUR 125 m
• Food security
• Biodiversity protection
• Water resources
management
TECHMATSTRATEG
Budget: EUR 125 m
• Modern technologies of
creating construction and
nanoelectronic materials
as well as of energy
storage

33. TECHNOLOGY DEMONSTRATORS
Testing innovative solutions prior to market implementation

34. PILOT LINES
formerly DEMONSTRATOR
Budget: EUR 125 m R&D projects of large
enterprises linked with
creating pilot installations
• Film production
support system
• Multi-system electric
locomotive
• Technology of joining
plastics

35. JOINT VENTURES
Encouraging research units to work on technological
solutions defined and required by specific entrepreneurs
or other public institutions

36. CuBR
Budget: EUR 50 m
NCBR and KGHM
Polish Copper SA to
invest in 1:1 ratio
• Projects by science and
science-industry consortia
• Sustainable development
of non-ferrous metals
industry
• Boosting one of key
economy sectors
• Quick opening of deep
deposits below 1,300
metres
• Remote controlled and
automated device to
break up lumps
• Highly efficient copper
ore enrichment & slag
decopperisation
technologies

37. NEW APPROACH TO R&D SUPPORT
BRIdge VC

38. BRIdge VC – return of investment
Whole instrument
capitalisation:
EUR 450 m
Max. 50% funding
from NCBR,
min. 50 % from
private investors
• Capital funding
instrument
• Supporting R&D and its
commercialisation by
investing in SMEs carrying
out innovative early-stage
projects
• 2 Funds of Funds: for VCs
and CVCs
• Selection of VC fund
management teams
• Budget of each fund:
EUR 20-50 m
• Investment period ends
after 4 years
• Subsequently: portfolio
companies development
and carrying out most
economically viable
exit strategy

39. NEW APPROACH TO R&D INITIATIVES
BASED ON DARPA EXPERIENCE:
Electromobility/emission-free public transport

40. NCBR
· ANNOUCES FOR COMPETITION
· INVITES ENTITIES
CONTRACTOR:
• DEFINES THE PROBLEM
• GOVERNMENT, LOCAL
AUTHORITIES,
CORPORATION
STAGE I
BUDGET FOR EVERYONE QUALIFIED
ENTITY
STAGE II
HALF OF THE ENTITIES
PROTOTYPES
STAGE III
PRODUCT SAMPLES
STAGE IV
WINNER
WE GET A STRONG
ECONOMIC ENTITY
THE CONTRACTOR
GUARANTEE:
· SAMPLE PART
· MARKET
· PRODUCT ADJUSTMENT
· EVENTUAL PROMOTION ON
FOREIGN MARKETS

41. International programmes
• Participation in international R&D programmes
• Bilateral and network cooperation, including:
 Polish-Norwegian Research Programme
 ERA-NET COFUND
 EUREKA
 BONUS -185

42. • Clusters and
industrial valleys
• Foreign
investment
• Review of
scientific
institutions
• Start in
Poland
• European
funds
• Financing
• Strong brand
Poland
• Development
of science
and
education
Sectoral
programmes:
• INNOLOT
• INNOMED
• InnoSBZ
• INNOTEXTILE
• INNOCHEM
• INNOMOTO
• INNOSTAL
• BRIdge Alfa
• Joint
Undertakings
(CuBR, PKP
Cargo, PKP
PLK, PGE)
• Tango
• Operational
Programmes
(e.g. OP Smart
Growth - Fast
Track and Pilot
Lines)
• Go_Global.pl
• International
programmes
• Lider
• e-Pionier
• Operational
Programme
Knowledge
Education
Development
Responsible Development Strategy
and NCBR’s activities

43. Hipromine
Saule Technologies
Platige Image
Medical University of Silesia Poltreg
Modertrans
Moratex
Example projects & beneficiaries
VIGO System
Flaris

44. Ursus C-3150V Power with an innovative Vigus transmission
Pregnabit by NestMedic
Modertrans
Educational robot
StethoMe

45. First change of paradigm
ACADEMIA
BUSINESS ACADEMIA
BUSINESS
Budget, EU funds Budget, EU funds

46. Second change of paradigm
Very broad
spectrum of
supported
areas
Focus on areas of key
importance to economic
transformation in line with the
Responsible Development
Strategy

47. Third change of paradigm
Non-refundable
subsidies from the
national budget or EU
funds (with limited own
contribution required
from commercial
beneficiaries)
Increased use
of returnable
instruments
to finance R&I

48. THANK YOU FOR YOUR ATTENTION
Stanislaw.Dyrda@pw.edu.pl
Stanislaw.Dyrda@ncbr.gov.pl