SSTI Digest

One Goal would see Science Share of GDP Surpassing US before 2010.

Not to be outdone by its European neighbor across the Channel (see story above), the French government announced at the end of June it will create a national research agency modelled after the National Science Foundation, according to The Scientist, the European Commission and several French news reports. While the budget for the new government agency will not be released until November, the press reports indicate an additional $1.23 billion (US) could be available for research grants in 2005.

Innovation policy approaches need to address specific challenges, problems and opportunities found in different types of regions, according to a new research paper from the Vienna University of Economics and Business Administration. The paper, One Size Fits All? Towards a Differentiated Policy Approach With Respect to Regional Innovation Systems, was presented at the recent German Institute of Economic Research conference. In it, the authors stress there is no ideal model for innovation policy in tech-based economic development, instead making a case for more differentiated policies.

Various types of regions are analyzed, based on their preconditions for innovation, networking, and innovation barriers. The authors highlight the regional innovation system (RIS) approach, which is said to provide a useful framework for a differentiated approach.

Scientific research, technological development and innovation are the heart of a knowledge-based economy, and in order to strengthen this sector in Europe, the European Union’s (EU) research budget needs to be doubled, according to a new plan released by the Commission of The European Communities.

Science and Technology, the Key to Europe’s Future offers guidelines suggested by research commissioner Philippe Busquin and other scientists and researchers. In March 2002, the EU set the objective of increasing the European research effort to 3 percent of the European GDP by 2010, an effort referred to as the Lisbon strategy. To provide a response to the objectives of the strategy, the Commission initiated a plan focusing on key topic in future research efforts.

Competition for state, federal and industrial funding to support university research is increasingly fierce in the U.S. Growing interest in developing academic research capacity, eroding state support for higher education and federal R&D budgets barely keeping pace with inflation, let alone absorbing the growing percentage dedicated to Congressional earmarks, are some of the reasons. Universities or investigators able to claim being the "best" based on some sort of respected ranking could help influence state legislators, reviewers in a federal competition, or decision makers within industrial R&D facilities.

With its economy already outpacing the average growth for the member states of the Organisation for Economic Co-operation and Development (OECD) for the past five years, the Czech Republic is injecting 348 million euros ($417.6 million US) into several tech-based economic development (TBED) initiatives.

CzechInvest will coordinate development of strategic components of the nation's business environment including: the development of science and technology parks, incubators and technology transfer centers; subsidies for applied research projects undertaken by companies of any size; and a wide range of support for small and medium enterprises.

Based on the Czech Republic's population of 10.2 million people in 2003, the country's commitment on a per capita basis would be the equivalent of the U.S. making an $11.8 billion investment in state and local TBED.

Increased financial support for start-up companies and the research sector has the attention of Canadian Minister of Finance Ralph Goodale. In the Minister's 2004 budget report, released last month, venture capital (VC) initiatives totaling $270 million (CAN) are targeted for investment. Combined with private sector investments, total VC funding is expected to amount to $1 billion.

Canada is uniquely positioned to benefit from the current global economic recovery, the budget report states. The VC funding, which is reserved for the Business Development Bank of Canada (BDC) and the Farm Credit Corporation, would be directed into four areas:

Although much collaborative work is underway in the United Kingdom, there is more to be done on the parts of universities, government and businesses, according to the Lambert Review of Business-University Collaboration. The conclusions and recommendations of the report span the Atlantic, offering advice of potential value for American university-industry relations.

Through research and various case studies, the review compiles the following broad recommendations for each individual sector:

The previous issue of the SSTI Weekly Digest (June 27, 2003) included a story with the headline "Québec Investing More Than $500M for Biotech." It was the kind of big initiative with a hefty price tag that a few states have launched and most others salivate to replicate. A perfect item for the Digest.

The problem is that big initiative never actually happened.

Had the story run before June 12 – the day the first budget of recently elected Québec Premier Jean Charest was released – it would have been accurate. However, the new Liberal government cancelled all of the biotech initiatives mentioned in that Digest article, and the budget eliminated or reduced several other government programs and tax incentives promoting science and technology (S&T):

Following extensive public consultation, the French Ministry for Industry and Research has announced a revamped national strategy to boost support for research and development (R&D) activities in France. The plan, to be implemented in 2004, aims to make financial resources for innovative companies more accessible and to increase France’s appeal to the international R&D community.

Some of the key measures include:

The Ontario Ministry of Enterprise, Opportunity and Innovation has launched a two-phase, $30 million program intended to accelerate the development of Ontario's biotechnology cluster. The Biotechnology Cluster Innovation Program (BCIP) will support biotechnology infrastructure projects that will help create new companies.

BCIP is expected to support projects such as commercialization centers, research parks and other regional initiatives that demonstrate entrepreneurship and innovation. The program also will fund projects that integrate biotechnology into knowledge-based and traditional industry sectors such as photonics, information technology, automotive, chemicals, agriculture, and forestry.

Ontario is performing from a base of strength in its transition to a knowledge-based economy, according to the Ontario Innovation Index recently released by the Ontario Science and Innovation Council (OSIC). Using 30 indicators, the report measures all aspects of the province's innovation system, from community awareness and support for science and technology (S&T) to levels of investment to support its infrastructure. It also looks at Ontario's incentives for commercialization and growth, innovative performance and innovation outcomes.

"The purpose of the index is to provide us with an ongoing portrait of Ontario's innovation environment," Dr. Suzanne Fortier, chair of OSIC, said in a press statement. "This allows the province to compare itself to other jurisdictions that are also leaders in science and innovation. We hope this will be a useful tool for government, academia and the private sector to gauge Ontario's strengths and key areas for improvement."

Earlier this week, the European Commission presented its strategy to respond to the March 2002 Barcelona European Council's call to raise research spending to 3 percent of the European Union's (EU) average Gross Domestic Product (GDP) by 2010. Today, Europe is at 1.9 percent on average across the member countries.

The Communication More Research for Europe looks into Europe's under-investment in science and technology and its harmful consequences for EU competitiveness, growth and employment. R&D investment (private and public) in the U.S. now exceeds EU expenditure by more than €120 billion every year. In 2000, in the U.S. €288 billion was spent on R&D, while only €164 billion was spent in the EU.