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PPP in Research Development and Innovation for the Southern Mediterranean


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The European Investment Bank used our research as background for its presentation on PPPs in Research Development and Innovation for the Southern Mediterranean region citing our work as the rationale for improved skill creation; increased technology transfer through FDI; employment creation; and enhanced regulatory framework for business.

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PPP in Research Development and Innovation for the Southern Mediterranean

  1. 1. 1ParticipatoryModernizationPPP in Research Development and Innovationfor the Southern Mediterranean
  2. 2. BackgroundChanges in South and East MED 2Baseline Royalty and licence fees Share of knowledge based industries in gross value added Source: W. Schwalje, (2011); World Bank, Enterprise SurveyChallenges OpportunitiesSustainable and  Improved skill creationinclusive growth and  Technology transfer through FDIeconomic  Employment creationdevelopment  Enhanced regulatory framework for businessConsolidation ofdemocratic reforms  More efficient, transparent andand institutional accountable public administrationbuilding
  3. 3. BackgroundLimited impact of traditional RDI 3policies in the EUInefficiencies  Concentration of resources on large scale programmes (targeted predominantly at technical achievements  Involvement of a small number of participants,  Centralized administrative managementShortcomings  Lack of focus on outcomes delivering broadly diffused benefit  Lack of critical mass  Lack of frameworks for a market-driven and bottom-up definition of objectives
  4. 4. 4PPPs: a tool for growth Case StudiesPPP as factor multiplierLeverage Knowledge  Facilitate joint vision development and strategic agenda setting, including at a cross-national and regional level  Build critical mass through flexible structure providing size and cross- fertilizationLeverage resources  Strengthen competitiveness by making the RDI cycle more efficient and shortening the time from research to market  Help to overcome fragmentation and redundanciesLeverage public  Address major societal challengespoliciesEC CommunicationCOM(2011) 572  Partnering in Research and Innovation
  5. 5. 5PPP types in RDI Case StudiesClusters/Networks  Medicines for Malaria Venture, USA  Biotechnet, SwitzerlandResearch Centre-basedClusters/Networks  Mobile Life Vinnova Excellence Centre, Sweden  Digital Enterprise Research Institute, IrelandJoint Ventures  JTI Artemis, EU  Fraunhofer Center for Nanoelectronic Technologies, Germany  National Physical Laboratory, United Kingdom+ venture capital  DTU Symbion, DenmarkAsset-based RDI PPP  Biosciences Research Centre Project, Australia  Proton Therapy Centre - Essen University Hospital, Germany+ venture capital  ISIS Innovation, United Kingdom
  6. 6. 6Leveraging ResourcesAchieving scale & scope economiesFraunhofer CNT,  Public funds used to pay for the research installation used by the private sector partners who financed the operational costs EvidenceJTI Artemis  Private and Public funds blended with EU grantsISIS Innovation  Private funds used to pay for the research laboratory in exchange for 50% licencing and 50% of Chemistry Dep.’s spin off sharesValuable contributionsMobile Life Centre,  Matching funds from the private partners/risk sharingBiotechnet  Valuable contributions in kind (hardware, licences) from the private sector partners blended with Government financial supportNew aggregations of capabilityMedicines for Malaria  New constellation of R&D stakeholders including international organizations (WHO), international drug companies, research institutes, government development organisations (e.g. DFID, UK) as well private foundations (e.g. Bill & Melinda Gates Foundation).Improving efficiency National Physical  Enhanced management/raised operational efficiency (and third party Laboratory, revenues with NPL) Biotechnet  Reduce redundancies
  7. 7. 7Leveraging KnowledgeCreating new Institutional FormsMMV, Biotechnet,  Knowledge broker with branch insight and knowledge of partners’ strengths EvidenceDTU Symbion, ISIS  Access to venture capital knowledge/Provide financial support in pre-Innovation seeds marketImproving Technology Transfer DERI, Mobile Life  Bring together key elements of the research process, facilitate a more Centre, Biotechnet effective technology transfer  Provide R&D infrastructure access  Personal exchange/ in-house internships /training of PhD students  Increase recruitment opportunities Facilitating the Creation of ClustersFraunhofer CNT ,  Unique set of stakeholders including government’s innovation agency,Mobile Life, scientific institutes, municipal partners, SMEs and global players fromDERI, Biotechnet ICT industryBolstering InnovationMobile Life Centre,  Coherent strategic objectives/consistent with broader strategicFraunhofer CNT government’s policy  Industry led/ Market driven competence centreBiotechnet  Evaluation of marked submitted proposals  Retroactive expenses’ repayment
  8. 8. 8Leveraging Public PoliciesCreating Social CapitalDPI, CNT, MMV , JTI  Co-ordinated efforts by a wide range of specialists on complex researchArtemis topics multi-disciplinary in scope EvidenceHigh Level Skills TransferMobile Life Centre,  Reduce the strong cultural divide between private industry andCNT, DPI academiaSolving Market FailureMMV  Align interests of public and private partners by facilitating delivery of new effective and affordable products to the marketGovernance for Public R&D MMV  Independent board entrusted with major financial, ethical and research selection issues  Output based/Termination of less promising projectsBoosting CompetitivenessFraunhofer CNT  Build a local industry cluster  Improve research infrastructure/laboratory facilitiesJTI Artemis  Align research strategy
  9. 9. 9Lessons learnedCreating Social Capital  PPP can build social capital by creating environments where different knowledge creators can effectively and successfully co-operate Evidence  PPPs offer a valuable means to ensure that state/IFIs sponsored RDI funding is more effectively employed where universities (as in the South and East Mediterranean) use traditional channels of knowledge deliveryGovernance for Public R&D  PPPs offer a better solution to cut red tape in supporting RDI  PPPs provide incentives, embedded control at entry and post research evaluation systems through KPIsBoosting Competitiveness  South and East Mediterranean Countries have the opportunities to create clusters/centres of excellence in key area of relevant RDI, (e.g. solar energy, irrigation)  PPPs are a very effective way to both create and sustain clusters
  10. 10. European PPP 10Expertise Centre (EPEC)Capacity Building,  EPEC is a joint initiative of the EuropeanInstitutional Commission, EIB, EU Candidate and Member Statesstrengthening and  EPEC assists the public sector to improve theprogramme support conditions for delivering more successful PPP Instruments projects via: (i) Network activities including working groups and workshops supported by the EPEC Executive (an analytical team with both critical mass and experience in PPP transaction advisory) (ii) Bilateral support on PPP programme implementation  EPEC provides link to the private sector PPP community through Private Sector Forums  The EPEC network links over 27 countries : Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Israel, Italy, Latvia, Lithuania, Malta, Montenegro, Netherlands, Poland, Portugal, Rumania, Scotland, Slovak Republic, Slovenia, Spain, Turkey, and United Kingdom
  11. 11. Claudio Cortese Thomas C. BarrettOperations outside the EU Technical and Financial AdviceDeputy Director General barrett@eib.orgJavier Gutierrez-Degeneve Nick JennettHead of the Near East Division European PPP Expertise Head of Division jennett@eib.orgIoannis KaltsasPolicy and Trust Funds Francesco Totaro ContactsHead of Division European PPP Expertise Advisor totaro@eib.orgAlain NadeauHead of the Maghreb