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Funding of Public Research Development and Funding of Public Research Development and Innovation PoliciesInnovation Policies

Session 2Session 2

Symposium on “International comparison of the budget cycle in research development and innovation policies”

Madrid, 3 July 2008

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CONTENTSCONTENTS

1.1. RDI in SpainRDI in Spain2.2. CDTI actionsCDTI actions3.3. CDTI as RDI public policy evaluatorCDTI as RDI public policy evaluator4.4. Public-private partnerships (PPPs): CENIT ProgramPublic-private partnerships (PPPs): CENIT Program

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1.32

1.76

2.12

2.51

2.7

1.20

1.85

2.25

0,0 0,5 1,0 1,5 2,0 2,5 3,0

Spain

Ireland

United Kingdom

EU-25

France

OECD

Germany

United States

R&D intensity (2006 or last year available)

R&D expenditures/GDP (%)

Spanish R&D expenditure by source of financing (2006)

As a percentage of the national total

Sources: Eurostat, OECD and INE (2008)

Lisbon Objective:

66%

Private non-profit 1%

Higher Education 3.9%

Foreign f irms 5.9%

Government 42.4%

Domestic f irms 47.1%

1. RDI in Spain1. RDI in Spain

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CONTENTSCONTENTS

1.1. RDI in SpainRDI in Spain2.2. CDTI actionsCDTI actions3.3. CDTI as RDI public policy evaluatorCDTI as RDI public policy evaluator4.4. Public-private partnerships (PPPs): CENIT ProgramPublic-private partnerships (PPPs): CENIT Program

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CDTI’s Mission: Increase the competitive edge of Spanish companies CDTI’s Mission: Increase the competitive edge of Spanish companies by raising their technological level by raising their technological level

Centro para el Desarrollo Tecnológico Industrial (CDTI): Centro para el Desarrollo Tecnológico Industrial (CDTI):

Founded in 1977Founded in 1977 Public Corporate Entity Public Corporate Entity Under the Ministry of Science and InnovationUnder the Ministry of Science and Innovation

Its legal status enables it to operate with the agility and efficiency that companies demand.

2. CDTI actions2. CDTI actions

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Aeronautics, Space, and Aeronautics, Space, and Industrial Returns *Industrial Returns *

Management of support Management of support instruments for RTDI in the instruments for RTDI in the aeronautics industryaeronautics industry

ESAESA

Technology procurement Technology procurement (CERN/ESRF, Hispasat (CERN/ESRF, Hispasat /Eumetsat/Spainsat)/Eumetsat/Spainsat)

Domestic levelDomestic level

RTDI project evaluation and RTDI project evaluation and funding (soft loans and grants)funding (soft loans and grants)

Facilitating the procedure of Facilitating the procedure of obtaining tax deductions to the obtaining tax deductions to the firms involved in RTDI activities.firms involved in RTDI activities.

Funding of new technology-Funding of new technology-based companies (NEOTEC y based companies (NEOTEC y NEOTEC Venture CapitalNEOTEC Venture Capital))

International levelInternational level

Management of international Management of international technology cooperation programs technology cooperation programs (Framework Program, Eureka, (Framework Program, Eureka, Iberoeka, Chineka…)Iberoeka, Chineka…)

Support for transfer of technology Support for transfer of technology abroad (External Network)abroad (External Network)

* In 2005, CDTI took over management of public support instruments for RTDI in the aeronautics industry.

2. CDTI actions2. CDTI actions

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CDTI covers the entire spectrum of RTDI aid

BASIC RESEARCHMARKET

INDUSTRIAL RESEARCH

TECHNOLOGICALDEVELOPMENT

+ -

TECHNOLOGICALINNOVATION

2. CDTI actions2. CDTI actions

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DIRECT FUNDING OF PROJECTS(million euro)

368461.2

896.3

1,204.5

0

200

400

600

800

1000

1200

1400

2004 2005 2006 2007

2. CDTI actions2. CDTI actions

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CONTENTSCONTENTS

1.1. RDI in SpainRDI in Spain2.2. CDTI actionsCDTI actions3.3. CDTI as RDI public policy evaluatorCDTI as RDI public policy evaluator4.4. Public-private partnerships (PPPs): CENIT ProgramPublic-private partnerships (PPPs): CENIT Program

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Technical evaluation

Global Database

Construction

R&D Project Monitoring

Financial evaluation

Impact Analysis

Programdesign, financial tools…

Accepted Proposal

R&D Proposal

Rejected Proposal

External

Information

External

Diffusion

of Results

Action

Information

3. CDTI as RDI public policy evaluator3. CDTI as RDI public policy evaluator

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3. CDTI as RDI public policy evaluator3. CDTI as RDI public policy evaluator

1) Ex-ante evaluation

Technical Evaluation Financial Evaluation

- Technical assessment- Firm assessment- Market assessment- Fiscal assessment- External information assessment (ANEP, etc.)

- Economic-financial analysis of the Economic-financial analysis of the firmfirm- Balance sheet analysisBalance sheet analysis- Project budget analysisProject budget analysis

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Diffusion of results: working papers (web

CDTI), reports, presentations

Programs design, financial tools…

Internal information: CDTI

External information: SABI, INE

Ministry, CDTI, University, Society

Analysis of proposals

Analysis of approved projects

Impact analysis

1 2 3

3. CDTI as RDI public policy evaluator3. CDTI as RDI public policy evaluator

2) Ex-post evaluation

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CONTENTSCONTENTS

1.1. Business RDI in SpainBusiness RDI in Spain2.2. CDTI actionsCDTI actions3.3. CDTI as RDI public policy evaluatorCDTI as RDI public policy evaluator4.4. Public-private partnerships (PPPs): CENIT ProgramPublic-private partnerships (PPPs): CENIT Program

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4. Public-private partnerships (PPPs): CENIT Program

CENIT Program (Strategic National Consortiums for Industrial Research)

Integrated industrial research projects

Technological break point

Facilitate execution of major projects to increase the scientific-technological capabilities of national companies and research groups. Spread the R+D cooperation culture. Prior step to consortiums created to undertake international programs (Framework Program).

OB

JEC

TIV

ES

1st call: 16 projects approved 2nd call: 15 projects approved3rd call: 16 projects approved

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Consortium or Economic Interest Group (EIG) made up of at least 4 companies (2 large or medium and 2 SMEs) and 2 research

entities

Projects have 4-year duration and a total budget of between 20 and € 40M.

The overall participation of research entities at least 25% of the total budget.

Aid in the form of subsidies can reach a maximum of 50% of the total project costs.

4. Public-private partnerships (PPPs): CENIT Program

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1st call 2nd call 3rd call

Submitted projects

Approved projects

Submitted projects

Approved projects

Submitted projects

Approved projects

Total budget (million €)Total budget (million €) € 1,600M € 429M € 1,223M € 406M € 707.6M € 407.3M

Requested/approved subsidy (million €)Requested/approved subsidy (million €) € 798M € 200M € 610M € 200M € 353.8M € 180M

Number of projectsNumber of projects 53 16 42 15 25 16

Number of companiesNumber of companies 572 176 531 208 377 252

% of SMEs% of SMEs 64% 63% 71% 65% 63.1 59.1%

Number of research entities/groupsNumber of research entities/groups 576 224 530 246 399 261

Average number of companies per Average number of companies per project project 10.8 11 12.6 13.9 15.1 15.8

Average number of research groups per Average number of research groups per projectproject 10.9 14 12.6 16.4 16 16.3

4. Public-private partnerships (PPPs): CENIT Program

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Environment; 7

ICT; 4

Materials; 2

Security; 1Biomedicine; 1

Approved projects per technology areas (1st call)

Biomedicine; 4

Agrofood; 1

Transport; 2

Security; 1

Production and Design; 1

Materials; 2ICT; 1

Environment and Energy; 4

Approved projects per technology areas (2nd call)

ICT; 1; 6%

Materials; 2; 13%

Production and Design;

3; 19%

Environment and Energy;

1; 6%

Agrofood; 3; 19%

Biomedicine; 1; 6%Security; 1;

6%

Transport; 4; 25%

Approved projects per technology areas (3rd call)

4. Public-private partnerships (PPPs): CENIT Program

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4. Public-private partnerships (PPPs): CENIT Program

Critical factors that determine the success of CENIT Program

• Higher contribution of resources.• Risks and costs are shared. • It allows to take advantage of economies of scale.• It avoids the duplication of R&D expenditure and favors the exchange

of knowledge.• It facilitates the link between basic R&D and applied R&D, more

devoted to the market.• Synergies and complementarities between research entities and firms

(qualified employees, resources for research, …).

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4. Public-private partnerships (PPPs): CENIT Program

Critical factors that determine the success of CENIT Program

• International projection (Framework Program, new markets,…).• Learning for the future collaborations.• It encourages R&D to be more strategic.• Corporate branding improvement.• Information access improvement.• It generates positive externalities for other sectors.