World Bank

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World Bank Government of Hungary Third
Forum Knowledge based Economy March 23-26,
Budapest
FINANCING OF INNOVATION CASE STUDY FROM REPUBLIC
OF MACEDONIA
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HISTORICAL OVERVIEW

• In Macedonia, until 1991, financing of the
  innovation projects and programs was regulated
  by
•  
• The Law for use of funds for technological
  development of Yugoslavia (1987) and
• The Strategy for technological development of
  Yugoslavia (1987)
•  
• Fund used represented 0,15 of the estimated GDP
  of the Yugoslav economy for the given year 0,1
  of the income of the Federation and 0,05 of the
  funds of respective republics and provinces.

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HISTORICAL OVERVIEW

• Projects/programs had a coordinator (production
  based company) and an executor (scientific-researc
  h entity). Funds were used to finance
  projects/programs that belong to following
  categories
• Development/experimental research, if they
  involve companies from two or more federation
  entities
• Projects/programs that are fundamental and
  relevant for the technological development
• Initial construction of scientific
  infrastructure.

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CURRENT SITUATION

• The period after gaining independence (after
  1991), is characterized by
•  
• Low level of the economical development
• Not favorable conditions for development
  because of political turmoil and armed conflicts
  in the region
• Insufficient domestic accumulation and need
  for foreign capital
• General technological backwardness and
  lagging behind new technologies
• High unemployment
• Efforts to maintain the existing (although
  not favorable) scientific, personnel and
  infrastructure potential.

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CURRENT SITUATION

• The transition period in Macedonia led to
•  
• Change in the economy structure (especially
  with regard to the ownership structure)
• Decrease (disappearance) of the
  development/research units within the companies
• Redirection of the personnel to other
  activities
• Large interest for work in other countries
  (brain drain).

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FINANCING OF INNOVATION

• Allocation of funds for initiation and assistance
  of technological development is executed through
  an annual public competition implemented by the
  Ministry of Education and Science.
•  
• Following entities are eligible to compete
• Companies
• Research/development organizations
• Public scientific institutions
• Innovation centers
• Association of citizens based on innovation
  and technical advancement
• Other legal and private entities active in
  the field of technological development.

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FINANCING OF INNOVATION

• The project will be financially supported if it
  represents
•  
• Common interest for the economy and science
• Development of own technology of products and
  services
• Optimization of the existing production
  capacities
• Developing new products
• Development of new technological
  infrastructure.
•  
• Projects/programs are subjected to expert
  assessment.
• Co-financing is up to 30 of the project/program
  value.

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STRUCTURE OF CO-FINANCED PROJECTS
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EFFECTS OF REALIZED PROJECTS
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DEVELOPMENT OF A NEW GENERATION OF AEROSOL
EQUIPMENT FOR FIREFIGHTING

• Scientific institution Faculty of mechanical
  engineering
•  
• Project cost MKD 6.300.000
• Structure applicants contribution MKD
  5.600.000
• Ministry of Education MKD 700.000 (11,1 )
• Effects
• New product that satisfies international
  standards, especially the environmental aspect
  and is in line with the world trend of
  eliminating the halons.
• It can be used for fire extinguishing in both
  closed and open spaces, in the electrical
  industry, in different technological lines
  exposed to risk of fire, forest fires, etc.
• International awards.

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DEVELOPMENT OF TECHNOLOGY FOR PRODUCTION OF
HIGHLY CONCENTRATED COMPACT DETERGENT

• Scientific institution Technological-Metallurgica
  l Faculty
•  
• Project cost MKD 3.024.000
• Structure applicants contribution MKD
  2.474.000
• Ministry of Education MKD 540.000 (17,8 )
•  
• Effects
• Introduction of a new technology line for
  production of an environmental friendly
  detergent
• New, high quality product able to compete on
  the domestic and on the international market
• Decreased energy consumption in production
  process
• Savings in storage and transport
• Decreased quantity of secondary waste

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CONSTRUCTION DEVELOPMENT OF A NEW GVKS SYSTEM OF
SEISMICALLY RESISTANT BUILDINGS TOWER OF THE
SUN

• Scientific institution Institute for Earthquake
  Engineering 
•  
• Project cost MKD 1.300.000
• Structure applicants contribution MKD
  1.000.000
• Ministry of Education MKD 300.000 (23 )
•  
• Effects
• Upgrade of the classical system of building
  construction
• Decrease of the seismic risk
• Savings in the construction of buildings
• Awards Gold medals at Geneva (1995) and
  Casablanca exhibitions (1998)

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ACTIVITIES OF SPATUM

• SPATUM is a non-governmental association of
  inventors with 3.574 individual members and 97
  organizations.
•  
• SPATUM activities can be grouped as
• Realization of innovative projects/programs
  (4.589)
• Organization of presentations of innovative
  work (fairs, exhibitions)
• Participation at international presentations of
  innovative work
•  
• Macedonian inventors have been awarded with 70
  international awards in the period 2000-2003 at
  the exhibitions in Brussels, Geneva, Seoul,
  Belgrade, etc.
•  

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LESSONS LEARNED CHALLENGES FOR THE FUTURE

• Establishment of a model for unified
  infrastructure for support and development of
  science and technology
• Development of a system for establishment of
  priorities in the technological development and
  their support by the economic policy
• Increased financing of projects by private
  business
•  
• Interdisciplinary and multidisciplinary
  unification of the fundamental and applied
  research in the function of the development of
  the state
• Larger budget allocations for science and
  technology

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LESSONS LEARNED CHALLENGES FOR THE FUTURE

• Completing the legislation, especially in the
  part regarding the assessment and acceptance of
  the projects/programs
• Establishment of expert body for science and
  technology development, under direct jurisdiction
  of the Government of the Republic of Macedonia
• Development of network of national coordinators
  for activities in the area of science and
  technology
• Networking of domestic and international
  systems for continuous following of international
  activities.