R&D in Information and
Communication Technologies
in Lithuania
Saulius Maskeliūnas
Institute of Mathematics and Informatics
Akademijos 4, Vilnius LT-2021
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Content
1. European factor
2. Lithuanian ICT Sector
3. R&D peculiarities in Lithuania
4. Lithuanian R&D in ICT
5. Conclusions
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1. European factor
Socioeconomic changes in
Central and Eastern Europe
have clearly positive impact
on the ICT R&D community:
• availability of EU structural funds,
• participation in FP6 projects,
• the “push” of Lisbon strategy
strengthen Lithuanian ICT R&D capacities.
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2. Lithuanian ICT Sector
• It is mostly private. In 2004 consisted of around 1000+
ICT companies employing around 30.000 people
(most important ones belong to Infobalt Association).
• Historically most of the IT companies have been
established based on State and University computing
centres, & big enterprises that evolved in 1988-1996.
• Mostly these are small-sized companies with 2-20
programmers, very few have over 100 employed
specialists.
D. Vitkute-Adzgauskiene, R. Sablinskas, ALIPRO National Report - Lithuania:
Overview of national research programmes on mobile telecommunications in
Lithuania. ALIPRO Project Consortium, September 2005, 106 p.
http://alipro.eurescom.de/documents/reports/ALIPRO_NR_LT_en.pdf
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http://www.eito.org/download/EITO Update 2006 - ICT market October 2006.pdf
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Comparison of key ICT indicators
National Lisbon Strategy Implementation Programme (2005-2008).
Approved by Res. No. 1270, Nov. 22, 2005 of the Government
http://www.ukmin.lt/en/strat_prog/lisbon/doc/Lisabona-angl..doc
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Lithuanian ICT: strengths
• Well-developed universities producing over
1000 specialists in ICT annually
• Well-trained & low-cost human resources
available
• Modern telecom infrastructure with a
digitalisation ratio of 100% and mobile
penetration of 95%
International Trade Centre UNCTAD/WTO, Information and Communications
Technology Country Profile: Lithuania. Geneva, October 2002
http://www.ebiz.lt/files/WTO_ITT_PROFILE___LIETUVA__galutinis_darbinis1.doc
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Lithuanian ICT: weaknesses
• Vague long-term vision for ICT development
including action plans or prioritization of funds
• Public-private partnership weak & cooperation
among economic entities under-developed
• Not much of incentives for R&D by business
• Lack of ICT access development in rural
areas
International Trade Centre UNCTAD/WTO, Information and Communications
Technology Country Profile: Lithuania. Geneva, October 2002
http://www.ebiz.lt/files/WTO_ITT_PROFILE___LIETUVA__galutinis_darbinis1.doc
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Lithuanian ICT: opportunities
• Availability of EU Structural Funds to provide
support
• FP7 projects based on National Technology
Platforms (Networked European Software
and Services Initiative Platform, Networked
and Electronics Media, etc.)
• Extending ICT “Outsource to Lithuania”
activities
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Lithuanian ICT: threats
• Intellectual outflow to weaken intellectual
potential
• Becoming a centre of high cost production
because of alignment to the EU
• Inconsistent policies, lack of coordination
• Non sufficient financement of Universities,
increasing lack of lecturers
International Trade Centre UNCTAD/WTO, Information and Communications
Technology Country Profile: Lithuania. Geneva, October 2002
http://www.ebiz.lt/files/WTO_ITT_PROFILE___LIETUVA__galutinis_darbinis1.doc
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Success stories in Lithuanian ICT
• The Lithuanian mobile network service providers
are especially active in the ICT sector. Mobile network penetration rate is one of highest in the world.
• The Rural Area Broadband Interconnection to
Network (RAIN) programme financed by the EU
Structural Funds is in process of implementation:
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a total of 410 local administrations and their inhabitants
are to be joined by a single broadband network
fibre-optic cables of 3.000 km in total length are to
connect rural areas;
not less than 100 megabit per second throughput for
each node
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http://www.primeinvestment.lt/files/ICTnews_06oct.pdf
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3. R&D peculiarities in Lithuania
Overall expenditures on R&D 2004 in total were 472,7
mln Lt (i.e. 137 mln €):
• 63,1 % - from governmental sources,
• 19,9 % - from business,
• 10,7 % - from foreign investments,
• 6 % - from higher education,
• 0,3 % - from private non-commercial enterprises
(D. Bubliene, R&D in Lithuania. Presentation at 79th meeting of the JRC
Board of Governors and Round Table Discussion, Vilnius, June 2006
http://www.tpa.lt/Renginiai/jrc/ENG/Round_table/presentations.htm )
Gross domestic expenditure on R&D was 0.76% on
2004; it is expected: 2% in 2010.
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EIS: Summary Innovation Index and
trends
http://trendchart.cordis.lu/scoreboards/scoreboard2005/executive_summary.cfm
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EU countries according to Summary
Innovation Index (SII)
50
40
30
20
10
0
-10
-20
-30
-40
-50
SK
PL
MT EL
LV
CY
CZ
PT
LT
NO
Years to catch up
IT
SI
HU UK
FR LU
Years to fall down
Source: European Innovation Scoreboard ‘2005
SE EU15 DK US
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European
Innovation
Scoreboard:
Categories of
innovation
indicators – 2005
26 EIS innovation indicators have been
classified into five categories to better capture
the various aspects of the innovation process.
These five categories cover different
dimensions of innovation performance with a
limited set of indicators.
Innovation drivers measure the structural
conditions required for innovation potential,
Knowledge creation measures the
investments in R&D activities,
Innovation & entrepreneurship measures the
efforts towards innovation at the firm level,
Application measures the performance
expressed in terms of labour and business
activities and their value added in innovative
sectors, and
Intellectual property measures the achieved
results in terms of successful know-how.
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Innovation performance
relative to EU average
26 EIS innovation indicators
have been classified into five
categories to better capture the
various aspects of the
innovation process. These five
categories cover different
dimensions of innovation
performance with a limited set of
indicators.
Innovation drivers measure the
structural conditions required for
innovation potential,
Knowledge creation measures
the investments in R&D
activities,
Innovation & entrepreneurship
measures the efforts towards
innovation at the firm level,
Application measures the
performance expressed in terms
of labour and business activities
and their value added in
innovative sectors, and
Intellectual property measures
the achieved results in terms of
successful know-how.
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Comparison of key R&D indicators
Source: National Lisbon Strategy Implementation Programme (2005-2008).
Approved by Res. No. 1270, Nov. 22, 2005 of the Government
http://www.ukmin.lt/en/strat_prog/lisbon/doc/Lisabona-angl..doc
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EU25 vs. National trends in European
Innovation Scoreboard indicators (1)
http://trendchart.cordis.lu/reports/documents/Country_Report_Lithuania_2005.pdf
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EU25 vs. National trends in European
Innovation Scoreboard indicators (2)
http://trendchart.cordis.lu/reports/documents/Country_Report_Lithuania_2005.pdf
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Academic R&D in Lithuania
• Coordination of the main activities in R&D is accomplished
by governmental decrees. The policy of research is formed
and implemented by the Ministry of Education and Science
in collaboration with the Science Council of Lithuania. The
Science Council of Lithuania is the main scientific expert
(by the Parliament and the Government of the Republic of
Lithuania) on issues of organizing and financing of
research and higher education.
• Lithuanian academic R&D system consists of 21
universities (15 public and 6 private), 28 non-university
colleges, 17 state research institutes, 18 university
research institutes, and 7 state research establishments
E. Butkus. Basic Research in Lithuania: a view from the Science Council.
Presentation at the Seminar on FP7 Specific Programme IDEAS, Nov. 17, 2006
http://www.tpa.lt/Renginiai/Info_d_pranesimai/2006-11-17/3.ppt
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National Innovation System SWOT
overview - Strengths
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Growing economy, favourable and stable macroeconomic conditions for innovation
Recognised need for knowledge based innovation in policy and business communities
Relatively favourable educational level, high share of S&T graduates (Skilled IT,
electronics and nuclear engineers)
Growing number of postgraduate S&T researchers
Developed network of scientific and Professional training institutions
Established universities and colleges with good track records
Track record in leading edge scientific disciplines (biotechnology, laser technology,
some areas of medicine, etc.).
Established framework of business and innovation support organisations, including
incubators, Technology Parks and innovation centres, which also serve as
intermediaries between the R&D and business sectors
Companies willing to cooperate in innovation development
Development of innovation policy since 2000 – main policy documents cover major
innovation related areas
More funding for RTD, also in the business sector
Use of EU Structural Funds to strengthen the innovation support system and direct
support for innovations developed jointly by the business sector and R&D institutions
Upgrade of R&D base and development educational programmes for highly skilled
empowerment for innovation
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National Innovation System SWOT
overview - Weaknesses
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Lack of horizontal coordination between the responsible ministries, bilateral approach
(Ministries of Economy, Science and Education)
Weak cooperation between R&D and business communities
Innovation policy centralised at the national level, weak interrelation with regional
policies The coordination structure is in place (S&T and Innovation Commission) but
its influence is relatively weak
No evaluation culture; ad–hoc policy making processes
Innovation policy adopted from western modes and not relevant to current industrial
structure (low value added, traditional sectors, blue colour work)
Limited administrative capacity for policy design and implementation
Low level of life long learning, high but obsolete qualifications of the labour force
Low business investment in on-the-job training
State supports only one higher education course per person
Low labour force productivity by EU standards
Low value added innovations, mainly market and customer oriented
Weak R&D sector input in innovation process
Weak links between R&D, business and politics
Existing business support infrastructure oriented towards phase 1 growth, no
business support for 2nd phase growth
Lack of venture capital schemes for new businesses
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National Innovation System SWOT
overview - Opportunities
• EU Structural funds and other EU programmes offer broad networking
opportunities and increasing funding for innovation
• Lisbon targets are pushing national policy makers to focus on R&D and
innovation in business
• EU integration and the development of free economic zones open up
new markets and new opportunities for attracting investments
• The traditional relationship with Russia/the CIS is an opportunity to
establish new links to exploit EU markets and attract investment from
the CIS.
• Mobility of workforce within EU; inverse brain drain
• Potential for using the lower cost base to establish Lithuania as an R&D
base
• Developing traditional industries with strong skills (furniture, textiles,
clothing, fabrication, etc.)
• New applications may result from cross-disciplinary research
• Commercialisation of know-how of R&D institutes
• Access to new technological and commercial opportunities via
European R&D collaboration and strategic partnerships
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National Innovation System SWOT
overview - Threats
• Other emerging economies in the region (Latvia and Estonia) target the
same markets with similar offerings
• Recession of EU and global economies
• Unstable CIS and Russian economies, implications for exports and
imports of raw materials
• Changing demographic profile (ageing society)
• ‘Brain drain’ due to lack of opportunities at home and new opportunities
in the EU, loss of qualified labour force
• High cost of accessing new and emerging technologies, including
software
• Loss of unprotected intellectual property
• Low end position in the value chain of highly knowledge intensive
products and technologies in the international context
• Low wages limit recruitment of new talent abroad
• Adoption of Science and Technology Park concept based on foreign
models may not meet the specific Lithuanian context (this is still too
early to evaluate)
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Reasons of R&D problematic status
• Lack of diverse instruments supporting R&D which are
available in advanced countries
• The system of science and study does not sufficiently
react to the state needs for long-term development
• Business investments to R&D are small and the
promotion to do it is insufficient (Lithuanian Computer Society,
Infobalt Association, Knowledge Economy Forum are helping to solve this problem)
• Cooperation of research and business is problematic
because the amount of entrepreneurs in Lithuania is
small.
• Higher schools and institutions of scientific research
generate not much new innovative companies
• Aging of researchers and brain drain
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Support to innovation
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Policymaking (Lith Govt, Min of Econ)
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Indirect support (support services)
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Innovation in Business Programme, 2000,
Science, Technology and Innovation Development Commission (2202, 2005),
…
Innovation policy
State budget, 2000+
PHARE, in 2004-2005
ERDF, beginning with 2004
Direct support (grant schemes)
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State budget
PHARE, in 2004-2005
ERDF, beginning with 2004
Innovation infrastructure
Innovative companies
K. Gečas, D. Vijeikis. Towards Innovation Policy in Lithuania: RIS LITHUANIA - INNPULSE.
European innovation strategies, Vilnius, 1 Dec. 2005 http://www.tpa.lt/Renginiai/2005-1201/Pranesimai/9_RIS%20LIETUVA-INNPULSE%202005%2012%2001.ppt
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Innovation Support Services
• Lithuanian Innovation Centre,
with 5 representatives across Lithuania
• Science and Technology Parks:
•
Vilnius
• North Town Technology Park
• Science and Technology Park
• Visoriai IT Park
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Kaunas High and Information Technology Park
Klaipeda Science and Technology Park
Šiauliai University ST Park
• Sunrise Valley Initiative
• Technopolis Initiative
• Kaunas Regional Innovation Centre
K. Gečas, D. Vijeikis. Towards Innovation Policy in Lithuania: RIS LITHUANIA - INNPULSE.
European innovation strategies, Vilnius, 1 Dec. 2005 http://www.tpa.lt/Renginiai/2005-1201/Pranesimai/9_RIS%20LIETUVA-INNPULSE%202005%2012%2001.ppt
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Strategic documents of
Lithuanian innovation politics
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State long-term development strategy
Lithuanian economy development strategy up to year 2015
Long-term R&D development strategy
Lithuanian general programming document for years 2004–2006
Program of Innovations and means in business for years 2003-2006
Program of high-technologies development
Program of implementation of White book of Lithuanian science and
technologies provisions
• Priority directions of Lithuanian R&D for years 2002–2006
• National Lisbon strategy implementation program
• EU structural funds programming document 2007-2013
+ operational programs (under development)
• Lina Domarkienė. Development of Lithuanian innovations in the context of Lisbon
strategy. Conf. “European innovation strategies” http://www.tpa.lt/Renginiai/2005-1201/Pranesimai/2_Lisabon_Strategy-11-30_su%20tekstu_v05.ppt
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5. Lithuanian ICT R&D
• ICT and Information Society development are
among the R&D priorities, approved by the
Government of Lithuania, and reflected in the
scope of current research programmes.
• But, there is some lack of coordinating
institution of ICT R&D in Lithuania:
•
Information Society Development Committee
under the Government: continues only partially
activities of previous Ministry of Communications
and Informatics.
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Future prospects
(1) To reorganize the governance and the
funding system of R&D
(2) To facilitate the co-operation of science and
industry
(3) To renovate the infrastructure of research
and studies institutions
(D. Bubliene, R&D in Lithuania. Presentation at 79th meeting of the JRC
Board of Governors and Round Table Discussion, Vilnius, June 2006
http://www.tpa.lt/Renginiai/jrc/ENG/Round_table/presentations.htm )
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(1) To reorganize the governance and the
funding system of R&D
• to strengthen tender- and programme-based
funding system for research
• to fund the most important developments
both in high-level research (Centres of
excellence) and in co-operation with
research and industry
• to implement a new system of grants for
young scientists
(D. Bubliene, R&D in Lithuania. Presentation at 79th meeting of the JRC
Board of Governors and Round Table Discussion, Vilnius, June 2006
http://www.tpa.lt/Renginiai/jrc/ENG/Round_table/presentations.htm )
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(2) To facilitate the co-operation between
science and industry
• to introduce different support instruments for
enterprises investing into research
• to promote researchers to get involved into
consultancy for industry
(D. Bubliene, R&D in Lithuania. Presentation at 79th meeting of the JRC
Board of Governors and Round Table Discussion, Vilnius, June 2006
http://www.tpa.lt/Renginiai/jrc/ENG/Round_table/presentations.htm )
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(3) To renovate the infrastructure of
research and studies institutions
• to concentrate investment into particular
research centres
• to identify the strategic research investment
projects
• Sunrise Valley, Visoriai Information
Technologies Park in Vilnius,
similar entities in Kaunas and Klaipėda
regions
(D. Bubliene, R&D in Lithuania. Presentation at 79th meeting of the JRC
Board of Governors and Round Table Discussion, Vilnius, June 2006
http://www.tpa.lt/Renginiai/jrc/ENG/Round_table/presentations.htm )
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Conclusions
• Current situation of Lithuanian Research and Development in
Information and Communication Technologies has various
problems, but the future prospects are rather promising.
• (IT STAR declaration http://www.starbus.org/r_d_ws1/r_d_ws1.htm):
A stable R&D environment in ICT with appropriate regulations, financing
and incentives has to be ensured to keep the best scientists at home and
the leading national R&D institutions competitive and integrated within
the European network of programs and institutes.
Further care should be taken to foster the traditionally good university
education and research, to encourage R&D in innovative SMEs.
To this end, national governments and the European Commission, in
partnership with industry and civil society, need to further refine policies
and ensure favorable conditions.
• Bureaucracy burden for R&D enterprises should be alleviated
(or at least not be increased further).
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Conclusions
• Successful innovation activity is based on human
resource improvement, innovation culture nurturing
and extension of enterprise innovation capabilities;
for the extension of R&D and innovations the
commertialisation of research results is needed.
( From the declaration of „European Innovation Strategies“ Conference,
Vilnius, December 1, 2005 http://www.tpa.lt/Renginiai/2005-12-01/ )
Thank You
for Your Attention
P.S. Report on this topic:
http://www.mii.lt/files/mii_prep_2007_36.doc
slides:
http://www.mii.lt/files/2007_01_19.ppt