Advisory Services Agreement on

Technical Assistance for Strengthening Planning and Budgeting Capacity and Supporting the Introduction of Performance Budgeting (P156889)

Output No. 3Institutional Strategic Plan 2017-2020 for the Ministry for Research and Innovation

June 2017

Project co-financed from the European Social Fund through the Operational Programme Administrative Capacity 2014-2020

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This report was delivered under the Advisory Services Agreement on Strengthening Planning and Budgeting Capacity and Supporting the Introduction of Performance Budgeting, signed between the General Secretariat of the Government and the International Bank for Reconstruction and Development on June 8, 2016. This corresponds to Output No. 3 under the above-mentioned agreement.

Disclaimer

This report is a product of the International Bank for Reconstruction and Development / the World Bank. The findings, interpretation, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work.

This report does not necessarily represent the position of the European Union or that of the Romanian Government.

Copyright Statement

The material in this publication is copyrighted. Copying and/or transmitting this work or portions of it without permission may be a violation of applicable laws.

For permission to photocopy or reprint any part of this work, please send a request with the complete information to either of the following institutions: (i) the General Secretariat of the Government (1 Victoriei Square, Bucharest, Romania); or (ii) the World Bank Group Romania (31 Vasile Lascăr Street, Et 6, Sector 2, Bucharest, Romania).

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Table of Contents

List of Acronyms..............................................................................................................................4List of figures...................................................................................................................................6List of tables....................................................................................................................................6List of boxes....................................................................................................................................6I. Context..................................................................................................................................10II. Mission and Vision.................................................................................................................16III. Strategic Objectives, Programmes, Measures, Indicators..........................................................18

Strategic Objective 1. Developing the capacity for scientific research and dissemination of research results...............................................................................................................................................18Strategic Objective 2. Increasing economic competitiveness through innovation..........................30Strategic Objective 3. Improving administrative capacity.................................................................36

IV. Performance Monitoring and Evaluation System......................................................................41V. Financial Resources...................................................................................................................43Annex 1a: Budgetary Objectives and Programmes 2017-2020 (thousand lei).................................45Annex 1b: Programmes, Measures, and related Budgets 2017-2020 (thousand RON).....................46Annex 2: Institutional Strategic Plan (summary table)....................................................................48Annex 3: Programs and connected Measures, Output Indicators (Summary Table)...........50Annex 4: Institutional profile.........................................................................................................58

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List of Acronyms

BERD Business Expenditure on Research and DevelopmentCERN European Organization for Nuclear ResearchCOP Competitiveness Operational ProgrammeEIF European Investment FundELI Extreme Light InfrastructureERA European Research AreaERDF European Regional Development FundERIC European Research Infrastructure ConsortiumESA European Space AgencyESFRI European Strategy Forum for Research InfrastructuresESIF European Structural and Investment FundsEU European UnionFAIR Facility for Antiproton and Ion Research

FTE Full-time equivalent (researchers)G(E)O Government (Emergency) OrdinanceGD Government DecisionGDP Gross Domestic ProductGEO Government Emergency OrdinanceGERD Gross Expenditure on Research and DevelopmentGoR Government of RomaniaGSG General Secretariat of the GovernmentIFA Institute of Atomic PhysicsINCD National Research and Development InstituteIPR Intellectual Property RightsISP Institutional Strategic PlanITER International Thermonuclear Experimental ReactorLDR Less Developed RegionsMDR More Developed RegionsMRI Ministry for Research and InnovationNASRI National Authority for Scientific Research and InnovationNP2 National Plan for Research, Development, and Innovation, 2007-2013NP3 National Plan for Research, Development, and Innovation, 2014-2020NSA National Space AgencyOPAC Operational Program Administrative CapacityPA Priority Axis PNCDI National Plan for Research, Development and Innovation 2014-2020RAS Reimbursable Advisory ServicesRCRI Romanian Committee on Research Infrastructures RD&I Research, development and innovation

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RDIs Research and Development InstitutesSME Small and Medium EnterpriseSNCDI National Strategy for Research, Development and Innovation 2014-2020SOP IAC Sectoral Operational Program Increase of Administrative Capacity 2007-2013 TFEU Treaty on the Functioning of the European UnionUEFISCDI Executive Agency for Higher Education and RDI Funding

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List of figures

Figure 1. R&D intensity projections 2000 - 2020, Romania and EU targets..........................................11Figure 2. Evolution of Romanian innovation benchmark indicators, 2016...........................................12Figure 3. Quality of scientific output and public R&D investment levels..............................................13Figure 4. Positional analysis of publications with Romanian authors in the SCOPUS scientific database (2009)...................................................................................................................................................14Figure 5 Monitoring Cycle of the Institutional Strategic Plan 2017-2020.............................................40Figure 6. Research and Innovation system in Romania........................................................................55

List of tables

Table 1 Strategic Objective 1: Financial allocations by budgetary programmes (thousand lei)............20Table 2 Measures included in Program 1.1..........................................................................................22Table 3 Measures included in Program 1.2..........................................................................................23Table 4 Measures included in Program 1.3..........................................................................................26Table 5 Measures included in Program 1.4..........................................................................................28Table 6 Strategic Objective 2: Financial allocations by budgetary programmes (thousand lei)............30Table 7 Measures included in Program 2.1..........................................................................................32Table 8 Measures included in Program 2.2..........................................................................................33Table 9 Strategic Objective 3: Financial allocations by budgetary programmes (thousand lei)............35Table 10 Measures included in Program 3.1........................................................................................38Table 11 Annual financial allocations, by strategic objectives (thousand lei).......................................41Table 12. Financial allocation, by expenditure (thousand lei)..............................................................42

List of boxes

Box 1 Strategic Objective 1. Impact and result indicators....................................................................18Box 2Strategic Objective 2. Impact and result indicators.....................................................................29Box 3 Strategic Objective3: Impact and result indicators.....................................................................34

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Acknowledgments

The Institutional Strategic Plan is the result of the work performed by the World Bank team, of the consultants and of the staff of the Ministry for Research and Innovation. Main contributions were delivered by Elena Botezatu, Mihai Păunescu and Mihai Vâlnoiu (experts, World Bank), as well as by Arabela Sena Aprahamian (senior private sector development specialist, World Bank) and Mădălina Prună (private sector development specialist, World Bank). The team benefited from the solid methodological guidance of Costel Todor, senior specialist in strategic planning.

The authors give special thanks to Lalita Moorty (Practice Manager Macroeconomic and fiscal Management) and to Elisabetta Capannelli (Country Manager for Romania, World Bank) for the overall coordination, as well as to Victor Giosan and Cătălin Păuna (TTL, Chief Economist, World Bank) for the guidance and valuable advice. The team also thanks Gord Evans (World Bank) for the insightful peer review. Last but not least, the team sends thanks to Brigita Orzan (expert, World Bank) for the constant and substantive support.

The team would like to thank the staff at the Secretariat General of the Government (SGG) for the support and excellent collaboration provided throughout the elaboration of this document, in particular to Secretary of State Radu Puchiu, and General Director Dragoș Negoiță, as well to the counselor Radu Iacob and the project team, who provided useful recommendations and achieved a proper project management. The team also wishes to thank Mrs Arina Șușară.

The team wishes to acknowledge the support and contributions made by the members of the working group set up with the task of developing and implementing the Institutional Strategic Plan, including experts from the Ministry of Research and Innovation. The team is particularly grateful to Mr. Lucian Georgescu, State Secretary, Mrs. Sorina Dumitrescu, Director Direction Intermediate Body for Research, Mr. Ionel Andrei, General Director of the General Direction for Policies and RDI Programs, for their involvement and cooperation.

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Foreword

Background

The General Secretariat of the Government (GSG) has signed a reimbursable consultancy services (RAS) agreement with the World Bank, with the goal to strengthen the planning, budgeting and policy monitoring capabilities of the Government, the Ministry of Public Finance (MPF) and the selected ministries. To improve the efficiency of public spending, the RAS focuses on i) continuing to consolidate the existing processes of developing the Institutional Strategic Plan (ISP) under the guidance of the General Secretariat of the Government (GSG); Ii) building intra-governmental capacity to monitor ISP updates and implementation with the help of a common IT tool developed with the support of the Bank; and iii) the development of a central unit within the GSG, for reporting on the implementation of major ISP priorities of selected ministries.

The defined activities of these SCRs arise from the functional analyzes of the Public Administration that highlighted that the public sector needs a better link between planning and budgeting, resulting in poor connections between the resources used and the results. Therefore, the Government has asked the Bank to help institutionalize a process to monitor policy implementation, with clear roles and responsibilities for GSG, MPF and the line ministries, using methodologies, tools and processes developed under the RAS. This will be an integral part of government budget reform. In order to make the process of strategic planning mandatory, GSG wants the ISP to become a product developed consistently by each ministry.

As a selected ministry, the Ministry of Research and Innovation has committed itself to carrying out a comprehensive reform program covering both public policies and public administration. Strengthening the strategic planning function is an important component of this reform. Developing the ISP for the 2017-2020 budget cycle comes at an important moment in the 2014-2020 policy cycle.

Methodology

The elaboration of the 2017-2020 ISP began in September 2016, as part of the ISP for the Ministry of Education and Research and continued between March and June 2017 as a separate ISP. The process enjoyed substantial commitment from all relevant management and operational staff within the ministry, as well as SGG specialists.

The Strategic Planning Process 2017-2020 of the Ministry of Economy was supervised by a Strategic Planning Coordination Committee, with representatives from all departments. The Working Group met as deemed necessary between September 2016 and April 2017.

The World Bank provided technical support throughout the process. In an endeavoring to be comprehensive, informative and participatory, the World Bank held a training program with members of the Working Group in September 2016 to present members with the principles of strategic planning, in parallel with the use of theories and the ISP 2014-2017.

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Executive summary

The General Secretariat of the Government (GSG) is committed to improving the efficiency of public spending. By establishing an Institutional Strategic Plan (ISP) for the budget cycle 2017-2020 in the Ministry of Public Finance and the 13 selected ministries, GSG aims to strengthen the budgetary, planning and monitoring capacity of the Romanian Government1.

The ISP 2017-2020 is based on the strategic objectives of the sector, on the priorities and institutional objectives assumed by the Ministry of Economy; It also provides clear programs and measures (including budgets) needed to achieve these goals over the medium term as well as a robust performance assessment framework to assess progress towards these objectives.

The ISP is organized around the main areas under MoE responsibility, as follows:

Strategic Objective 1: Developing the capacity of scientific research and dissemination of research results, aimed at increasing the quantity and quality of research results, as well as the international exposure of Romanian research.

Strategic Objective 2: Increasing economic competitiveness through innovation, aimed at promoting collaboration between the RDI sector and industry, directly related to the priorities of industrial, competitiveness and SME policies as a mechanism to support the transition of the Romanian economy from cost competitiveness to innovation-generated performance

Strategic Objective 3: Developing institutional capacity for MCI to strengthen the Ministry's ability to carry out its policy and regulatory functions efficiently and effectively

A description of the expected strategic objectives and expected impacts, programs and expected outcomes and measures with their planned outcomes correlated with the financial resources and their distribution over the implementation period 2017-2020 is presented in the body of the Institutional Strategic Plan below.

1 The project was initiated and developed in 2016 by the Chancellery of the Prime Minister (CPM), reorganized in 2017 under the coordination of the SGG.

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I. Context

As key components of the Europe 2020 agenda, research and innovation are constantly retained as major priorities for policy and investment across the EU. Following the economic crisis, the European Commission has also repeatedly drawn attention and expressed concern upon the fact that most EU member countries are far from their self-set objectives regarding Research and Development (R&D) expenses and outcomes and that “this risks delaying considerably the transformation of these countries into knowledge-based economies”.

The EC2 sets a number of key strategic actions in an effort to push for a redefinition of R&D national systems union-wide. The main points set out concern the following: improving the quality of strategy development and the policy making process; improving the quality of programmes, focusing of resources and funding mechanisms; optimizing the quality of public institutions performing research and innovation. To support these three axes of reform, the EC pledges financial support for research and innovation (R&I) through the Horizon 2020 financial program. At the same time it invites member states to increasing public spending in R&I actions, to increase efficiency and impact of resources invested in R&I, to provide adequate incentives for business investment in R&I actions. The Innovation Union (IU) and European Research Area (ERA) are emphasized as “flagship” cooperative actions which could provide a strong basis for future development in this sector.

Romania has long been classified as a “low knowledge capacity system with a specialization in low-knowledge intensity, which this translates into low intensity of R&D and innovation investments, lack of specialization in technology, low impact of scientific publications at world level”3.

A number of evaluations have emphasized more or less the same recurring challenges: The 2011 Functional Review by the WB highlighted that Romania’s RD&I sector is “in a silent crisis” related to three key factors: governance fragmentation, focus of on basic research and underutilization of private potential. Underfinancing and, often, poor use of available funds, contributes to the overall poor performance.

The 2012 Interim Evaluation of the SNCDI and PNCDI 2007-2013 notes that, while mirroring the EU-PF7, the Romanian framework puts too much emphasis on delivering the funding calls and too little on improving institutions. At the same time, “nothing is left behind”, in what seems to be an “excerpt from canonical works on innovation”4 in terms of policies and instruments.

2 See EC Communication COM(2014) 339 final, Research and innovation as sources of renewed growth, Brussels, 10.6.2014, available at: https://ec.europa.eu/research/innovation-union/pdf/state-of-the-union/2013/research-and-innovation-as-sources-of-renewed-growth-com-2014-339-final.pdf 3 The Innovation Union Competitiveness Report, available online at: http://ec.europa.eu/research/innovation-union/index_en.cfm?pg=home&section=competitiveness-report&year=2011 4 Interim evaluation of the SNCDI and PNCDI 207-2013, Pg.13, available at: http://fmmc.ro/uploads/poze/files/MTE_National_Strategy_Plan_Report_RO_120213.pdf

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A 2013 evaluation report by UEFISCDI financed under SOP IAC5 focusing on the governance of the RDI system reiterates mainly the same challenges related to underfinancing, fragmentation and polarization among actors, restating the need for reform, coherence and a strategic approach.

After the completion of the 2007-2013 financing period, a new SNCDI and PNCDI were developed, along with the new Operational Program Competitiveness, providing EU funding. The legacy of the first true programming exercise in Romania is a change of paradigm in the research system: scientific production and quality have increased, individual and institutional behaviour has shifted toward a more competitive approach. International participation in Romania has also increased, compared to the past.

Nonetheless, lack of resources and inefficient allocation has led to an abundance of underutilised research infrastructures and cohorts of PhD students without real research career prospects. The historical brain-drain has not been reverted, as Romania has one of the largest scientific diaspora among the EU countries.

As a consequence, the RDI performance is well below expectations and current results are telling; in 2016, the latest EC Reports6 still places Romania in the group of countries with the weakest science base, while the low quality of the public R&I system is still a key issue to be addressed. Only two countries, Romania and Bulgaria, still remain in this group and the gap between Romania and the other Member States is still increasing, mainly as a direct consequence of low public RDI expenditure (0.49% of GDP).

Figure 1. R&D intensity projections 2000 - 2020, Romania and EU targets

Source: Research and Innovation performance in the EU. Innovation Union progress at country level7

5 Evaluation Report regarding the governance of the RD&I system in Romania 2007-2013, available at: http://www.incd2020.ro/sites/default/files/Raport%20de%20evaluare%20a%20guvernantei%20sistemului%20public%20de%20CDI%20din%20Romania%202007-2013.pdf 6 European Semester Thematic Fiche. Research and Innovation, available at: http://ec.europa.eu/europe2020/pdf/themes/2016/research_innovation_201605.pdf and the 2016 European Innovation Scoreboard, available at: http://ec.europa.eu/DocsRoom/documents/17822 7 http://ec.europa.eu/research/innovation-union/pdf/state-of-the-union/2014/countries/romania.pdf

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While some indicators show improvement, the overall progress shows Romania’s performance has declined the most of all countries (-4.4%), in particular since 2012. For example, while the proportion of doctoral graduates per thousand population and international scientific co-publications had a positive trend, firm investments, venture capital, SMEs innovating in-house, collaborating with others or producing innovations have decreased significantly.

Figure 2. Evolution of Romanian innovation benchmark indicators, 2016

Source: 2016 European Innovation Scoreboard, Romania

As RD&I is an activity mainly funded from public resources in Romania, the participation of universities and public research institutes and their performance in the scientific world-wide system is the central point in ensuring a positive evaluation of the system as a whole. However, data presented in the R&I Performance Report, previously quoted, describes an inefficient and irrelevant system from a scientific point of view.

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Figure 3. Quality of scientific output and public R&D investment levels

Source: European Semester Factsheet on Innovation 20168

With the exception of food, agriculture and fisheries, security and other transport technologies, Romanian scientific works have a measured impact below world levels. Moreover, works in the mentioned fields are of an un-specialized type, with the exception of other transport technologies, which, according to the analysis provided in the report, proves that on the one hand they are still too few for Romania to reach the “specialized” benchmark and also are an effect of pre-1990 specialization in these sectors of the Romanian research system9. Finally, in cross-country comparison, Romania places in the area where low public investment in R&I correlates with low citations of scientific works, alongside most EU member countries, thus proving a lack of strategy and vision in R&I development, at least before 2013.

8 Available at: http://ec.europa.eu/europe2020/pdf/themes/2016/research_innovation_201605.pdf 9 For an extend argument see Research and Innovation performance in the EU. Innovation Union progress at country level, 2014, p. 242 – 243.

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Figure 4. Positional analysis of publications with Romanian authors in the SCOPUS scientific database (2009)

Source: Research and Innovation performance in the EU. Innovation Union progress at country level

Synthetic key indicators10 pertaining to R&I performance and potential for growth calculated in the framework of the Europe 2020 objectives for Growth, Jobs and Societal Changes complete a rather poor picture of the state of the sector in the larger context of ET 2020 targets. Levels of most indicators rank Romania among the worse off EU member countries in areas such as R&D intensity, share of population aged 30 – 34 years who have successfully completed tertiary education and share of the population at risk of poverty or social exclusion (rank 27 out of 28 countries); the share of the population aged 18 - 24 with at most lower secondary education and not in any further education or training (rank 24 out of 28 countries) and employment rate of the population aged 20 – 64 years old (rank 20). However, the source of real concern is the very low values for indicators which measure factors for structural change and addressing societal changes.

The evolution of the rate of employment in knowledge-intensive activities (manufacturing and business services) as % of total employment aged 15–64; SMEs introducing product or process innovations as % of SMEs; environment related technologies and medical related technologies; constantly place Romania on the last place among EU member countries.

Moreover, data presented shows that monitoring of such indicators is not a constant concern of the Government of Romania, since time series are often broken with missing data for all indicators monitored at EU level.

10 See Research and Innovation performance in the EU. Innovation Union progress at country level, p. 247

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For the 2017-2020 period, the strategic and financing framework of RD&I is clearly set. As noted by the 2015 Rio Country Report Romania11, “The government has made progress in identifying the causes of structural weaknesses of the R&I system, but the implementation of the solutions is delayed and/or absent.” A more limited number of priority sectors12 compared to the previous exercise, as well as more emphasis on the quality of research and on activating private potential are envisaged, in an effort to consolidate the link between RD&I and economic growth. Nonetheless, underfinancing13, as well as little focus on improving administrative capacity and governance seem to remain the chronic challenges affecting performance.

11 Available at: https://rio.jrc.ec.europa.eu/en/library/rio-country-report-romania-2015 12 There are two types of priority fields selected: Smart specialization fields: (1) Bioeconomy, (2) ICT, Space and Security, (3) Energy, environment and climate change and (4) eco-nanotechnologies and advanced materials and Public Priority fields: (1) Health, (2) Heritage and cultural identity and (3) New and emerging technologies.13 The budget for RDI is only 0,22% of GDP for 2017, already well less than the 0,63% allocation envisaged by the SNCDI 2014-2020 for 2017 – see synthesis at http://gov.ro/en/government/cabinet-meeting/the-budget-for-2017-approved-by-the-government

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II. Mission and Vision

The Ministry of Research and Innovation coordinates the implementation of the National RDI Strategy and the Government Program14 in the field of scientific research, technological development and innovation. It is also mandated to ”organize and lead the national system for scientific research, technological development and innovation”.15

Drawing upon the mandate established by law16 and upon the strategic vision for the Romanian RDI sector, stated in the National RDI Strategy for 2014-202017, the Ministry for Research and Innovation sets out the following vision and mission:

The Mission of the Ministry for Research and Innovation is to:

Act as the leading governance agent of the Romanian RDI system, enabling the integration of the RDI sector in the national competitiveness policy and promoting RDI uptake in the economy and society.

The Vision of the Ministry for Research and Innovation is that:

”In 2020, Romania becomes globally and regionally competitive through innovation, fuelled by research and development, while generating welfare for its citizens”.

The SNCDI vision establishes a set of principles for action, supported through three main pillars: (1) Companies become key actors of innovation; (2) The RDI sector develops around a number of strategic areas, is integrated internationally and offers an attractive environment for the members of the global scientific community; (3) Breakthroughs in strategic areas.

International competitiveness builds upon an innovation ecosystem, in which research and development support the advance in global value chains. Creativity activates innovation-based entrepreneurship, which in turn and together with excellence, leads to achieving a critical mass of entities.

Based on successful stories and credible models, a culture of innovation is created and, ultimately, a society for which innovation is the main factor of competitiveness.

The strategic framework draws primarily upon the priorities and expectations stated in the National Strategy and Plan for RDI 2014-2020 and in the Government Program 2017-2020 and aims mainly on improved knowledge creation, increased international exposure and enhanced contribution of RDI to economic and societal development. To that extent, the predictable and substantial increase of financing is essential, as well as refined mechanisms for interinstitutional collaboration and improved governance and better correlation in terms of policy implementation in relation to education and labour market.

14 http://gov.ro/ro/obiective/programul-de-guvernare, pg. 41-43 15 The mandate is based on GF 13/2017 regarding the organization and functioning of the MRI16 GD no. 13/201717 https://www.edu.ro/sites/default/files/_fi%C8%99iere/Minister/2016/strategii/strategia-cdi-2020_-proiect-hg.pdf , pg.10

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While the cross-cutting nature of RDI is pivotal in determining future directions, a sectoral approach is also envisaged in respect to industrial specialization and priority field of public importance. Actions and resources are also directed towards areas which increase the capacity of responding to tangible and imperative social challenges, as is the case with emerging technologies. At the same time, fundamental research is at the heart of RDI strategic framework, as a source for frontier and interdisciplinary research18.

18 Based on RDI Strategy 2014-2020, pg.7

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III. Strategic Objectives, Programmes, Measures, Indicators

Strategic Objective 1. Developing the capacity for scientific research and dissemination of research results

As outlooks present an increasingly widening performance gap between the Romanian and the EU research systems, the need for fast-paced, substantial and systemic interventions is growing. Romania needs to capitalize on its current strengths, while addressing the vulnerabilities related to governance and underfinancing.

As such, continuing to develop the research infrastructure, focusing on a limited number of large-scale, critical projects and taking stock of the existing ones, while improving the efficiency of their use, is essential for achieving a balanced and competitive research system.

Addressing the challenges related to human resources is another key factor for improving scientific results. Capitalizing on the newest generations of PhD students resulted from the previous programming period, means increasing the attractiveness and improving the prospects of the research career. While reversing brain drain may prove too difficult to achieve, putting a stop to it and intensifying the ties with the research diaspora may provide significant positive results.

Following a positive trend in internal exposure, driven partially by the significant change in the researchers’’ performance evaluation factors and partially by increased focus on results in EU-projects financing, the international exposure of Romanian research has also improved. However incentivized by the prospects of participating in international projects, the Romanian research organizations have yet to achieve the desired results. Participation in FP7 and in other international collaborative initiatives has proven difficult, for lack of experience, information and, more importantly, resources.

At the same time, continuing the support for research in a limited number of key fields of strategic societal and economic importance, as well as the flagship projects (ELI-NP, Danubius, and Alfred) is bound to contribute significantly to increasing the performance of Romanian research.

Informed by these assumptions, Strategic Objective 1 sets out to transpose the national strategic priorities and the Government Program in respect to achieving research excellence at EU and international level19, focusing on improving the quality of the research output. To this end, it focuses on supporting the development of competitive research organizations the through their core enabling elements: improving the RDI infrastructure, enabling the build-up of a critical mass of researchers, facilitating their exposure at international level and supporting fundamental and exploratory research project in key priority fields. These pillars build upon and reinforce each other and are the core of a functioning innovation ecosystem, capable of producing tangible positive effects for the Romanian economy and society.

The expected change (impact), following the implementation of the program and measures subsequent to SO1 refer to increasing the quantity and quality of research output, as well as the international

19 Government Program 2017-2020, Chapter on RDI, Priority 3, pg. 42, available at: http://gov.ro/fisiere/pagini_fisiere/Programul_de_guvernare_2017-2020.pdf

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exposure of Romanian research. The selected indicators reflect: a bibliometric measurement of scientific excellence (the share of scientific publications present in the top 10% most cited publications worldwide, among all national scientific publications), the number of researchers (FTE) and international scientific co-publications.

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Measures of Program 1.4

M.1.4.1.1 Research in fields of strategic interest for Romania

M.1.4.1.2 Support for high-level research

Measures of Program 1.3

M1.3.1.1 Support for international collaborations

M1.3.1.2 Dissemination and access to information

Measures of Program 1.2

M1.2.1.1 Supporting the preparation of a new generation of researchers

M1.2.1.2 Attracting high- skilled researchers from abroad in the public RDI organizations

Measures of Program 1.1

M1.1.1.1 Financing infrastructure projects of European importance

M1.1.1.2 Financing RDI infrastructures for public RDI institutions

Programme 1.4RDI Institutions

Programme 1.3Internationalization

Programme 1.2Human

resources for RDI

Programme 1.1Physical

Infrastructure for RDI

SO1. Developing the capacity for scientific research and dissemination of research results

Box 1 Strategic Objective 1. Impact and result indicators

Table 1 Strategic Objective 1: Financial allocations by budgetary programmes (thousand lei)

SO1. Developing the capacity for scientific research and dissemination of research results

2017 2018 2019 2020

Program 1.1: Physical infrastructure for RDI 107.500 187.700 189.000 205.000

Program 1.2: Human resources for RDI 136.490 156.750 156.750 156.750

Program 1.3: Internationalization 232.730 286.500 279.200 236.900

Program 1.4: RDI Institutions 708.410 592.100 592.100 605.000

TOTAL SO1 1.185.130 1.223.050 1.217.050 1.203.650

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(1.1.1) Increasing the capacity utilization rate of the research facilities: The number of researchers working in improved research centres will reach 473 in 2020 (1.2.1.) Increasing the number of researchers: The number of new doctoral graduates per thousand population aged 25-34will increase, from 1,5/1000 inhabitants in 2015, to 1,8 in 2020;The number of new researchers (FTE) in the supported entities will reach 627 in 2020(1.3.1.) Increased participation in international projects: The number of international partnerships under Horizon 2020 will reach 400, compared to the baseline of 200 in 2016 (1.4.1.) Increasing the output and quality of Romanian research: The number of citable articles, according to the international SCIMAGOR ranking, will increase, from 12.371 in 2015, to 15.000 in 2020.

Increasing the quantity and quality of research output, as well as the international exposure of Romanian research: the share of scientific publications present in the top 10% most cited publications worldwide, out of the total number of publications in the country will reach 7% in 2020, compared to 4% in 2015; the number of international scientific co-publications/1 mil. Inhabitants will increase, from 160 in 2016, to 300 in 2020; the number of researchers (FTE) will increase, from 16.000 in 2017, to 17.000 in 2020.

Programmes results

Impact

Program 1.1. Physical infrastructure for RDI

Rationale. Currently, there are 1.393 infrastructures with 7.450 research Services, 52 technological services and 19.692 equipment in Romania, according to the National Registry of Romanian Research Infrastructures20.

At national level, the Romanian Committee on Research Infrastructures (RCRI) is responsible with formulating recommendations regarding the development of research infrastructures. Operationally, MRI is currently updating21 the Roadmap regarding priorities for the development of research infrastructures, as the previous one was prepared in 2008 and regarded the past programming period.

The SNCDI 2014-2020 promotes the services provided by existing infrastructures and encourages new investments, by establishing the following priority lines of action, among others: (1) updating the National RD&I Infrastructures Roadmap, (2) supporting major projects and large RD public RDI infrastructures, creating new infrastructures (labs, research centres etc.) and supporting the development of pan-European research infrastructures in Romania (ESFRI).

Following a significant but poorly planned inflow of resources during the 2007-2013 period, the main challenges related to the current financial framework are related to ensuring a proper use of the existing infrastructure (currently visibly underutilised, although and focusing on targeted interventions for future investments, based on efficiency and performance.

Increased transparency, improved coordination between the national and European funding sources (especially for avoiding duplications), as well as improved conditions for access are key issues envisaged for achieving the expected results.

Objectives. P1.1 seeks out to seeks to obtain the following results by 2020:

(1.1.1) Increasing the capacity utilization rate of the research facilities The number of researchers working in improved research centres will reach 473 in 2020, as a

result of the implementation of the programme

Description. Program 1.1 focuses on five main lines of action, in a comprehensive effort to consolidate and expand the public research infrastructure.

Financing major infrastructure projects refers to supporting the development of large, open pan-European research infrastructures (ESFRI) in Romania. Three such projects are envisaged for financing under OP Competitiveness, Specific Objective 1.1. Increasing the RD&I capacity in smart specialization and health, Investment Priority 1a, namely: ELI-NP22 and Danubius-RI23

These will also be supported by Subprogram 5.1. Research, development and innovation program for ultra-high power lasers technologies – ELI-RO and through Subprogram 5.4. Research, development and innovation for river-delta-maritime systems (DANUBIUS).

20 http://www.erris.gov.ro/index.php?21The experts recruitment process begun in January 201722 http://www.eli-np.ro/ro/ 23 http://www.danubius-ri.eu/

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Financing large RDI infrastructures for public RDI institutions and universities is financed from OP Competitiveness, Specific Objective 1.1. Increasing the RD&I capacity in smart specialization and health, Investment Priority 1a, type A projects. Investments for increasing RD capacity in fields identified under SNCDI as priority for smart specialization and health. This will be done by developing and furbishing new labs or research centres or by modernizing new ones for public research institutions and universities.

Supporting the consolidation of the existing RDI physical infrastructure in public RDI entities will be the third main line of action, financed from the national budget, through PNCDI – Subprogram 1.3 RD Infrastructures24. This is directly targeted at improving the integrated development and efficient use of the available public research material base. As per the PNCDI, investments should be targeted towards priority sectors, particularly in the best performing research organizations, so as to optimize investments in RD equipment and favour revenue generation from their utilization. The main types of financed projects include: investment in RD infrastructure (of regional, national, pan-European interest); investments in RD projects complementary to those present locally; projects regarding the integration or connection of local networks to similar / complementary RD international infrastructures. Stimulating the creation and development of innovation clusters around large infrastructures, as well as maintaining and developing the National Registry of RD Infrastructures is also envisaged under this measure.

Another line of financing consists in the Program for Financing New Research Installations of National Interest, through which costs are covered for maintanance, use, functioning and security for the 29 installations and special objectives of national interest.

Success factors. Critical success factors for achieving the envisaged change are related to:

- Increased public funding for RDI, according to the established targets;

- Absorption of the available EU funds;

- Maintaining a high level of commitment across the Government for achieving the necessary reforms and achieving the assumed targets for RDI;

- Strengthening the collaboration mechanisms between MRI and the other line ministries

Measures. The measures by which the program will be implemented are presented synthetically hereafter. Their allocated budgets, as well as the associated monitoring indicators and targets are presented in the Annexes to the ISP.

Table 2 Measures included in Program 1.1(1.1.1) Increasing the capacity utilization rate of the research facilitiesM1.1.1.1 Financing infrastructure projects of European importance M1.1.1.2 Financing RDI infrastructures for public RDI institutions

24 PNCDI, pg.18

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P1.2. Human resources

Rationale. One of the most severe deficiencies of the Romanian research system is related to the insufficient critical mass of researchers. Massive and long-term brain-drain, dramatically low payment and poor working conditions, lack of perspective regarding a professional career in research, are among the factors which have contributed to the current situation.

During the previous programming period efforts have been made in supporting new generations of PhD students25 and in attracting young researchers in the Romanian research organizations. Overall under-financing and insufficient opportunities have, however, determined poor results.

Objectives. P1.2 focusing on increasing the attractiveness of the research career, seeking to obtain the following results by 2020:

(1.2.1.) Increasing the number of researchers:

o The number of new doctoral graduates per thousand population aged 25-34will increase, from 1,5/1000 inhabitants in 2015, to 1,826 in 2020

o The number of new researchers (FTE) in the supported entities will reach 627 in 202027.

Description. Program 1.2 combines national and EU funding in a variety of interventions, by preparing new generations of researchers, promoting and rewarding excellence, and encouraging mobility.

Supporting the preparation of a new generation of researchers is the focus of Subprogram 1.1 Human Resources of PNCDI28, aimed at increasing the number and the quality of human resources in RD activities in priority sectors. The objectives envisaged by the subprogram refer to increasing the number of researchers and preparing new generations, increasing the attractiveness of the research career, improving group performance, creating and updating the National Researchers’ Registry.

Main types of projects financed under this measure are: PhD and Post-Doc Research Projects, including industrial PhD; Research projects for stimulating young independent teams; complex programs for reintegrating researchers from the diaspora (young and experienced); Young Researcher Scholarship; rewarding research results (articles), research scholarships ("Stefan Odobleja"; Spiru Haret").

Attracting highly-skilled researchers from abroad in the public RDI organizations and developing the concept of “brain return”, financed through POC PA1 – 1a – Action 1.1.4 targets the creation of scientific and/or technological competence cores, at European standards, within an RD institution, university or enterprise, by attracting specialists from abroad. Projects will be conducted by the specialist from abroad, who will be hired as a scientific researcher (at least) for the duration of the project, by the host institution. This action is aimed at consolidating the RD&I capacity for preparing the participation to Horizon 2020 and will concentrate on the four plus one priority sectors established by the SNCDI.

Success factors. Critical success factors for achieving the envisaged change are related to:

25 Through EU funding (ESF), Sectoral Operational Programme Development of Human Resources 2007-201326 Both the reference and the target values are established by SNCDI. Update is necessary. Proxy Data is available on https://rio.jrc.ec.europa.eu/en/stats/new-doctoral-graduates-thousand-population-aged-25-34 27 OP Competitiveness indicators and targets28 PNCDI pg. 17

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- Increased public funding for RDI, according to the established targets;- Absorption of the available EU funds;- Maintaining a high level of commitment across the Government for achieving the necessary reforms

and achieving the assumed targets for RDI; - Strengthening the collaboration mechanisms between MRI and the other line ministries

Measures. The measures by which the program will be implemented are presented synthetically hereafter. Their allocated budgets, as well as the associated monitoring indicators and targets are presented in the Annexes to the ISP.

Table 3 Measures included in Program 1.2(1.2.1) Increasing the number of researchersM1.2.1.1 Supporting the preparation of a new generation of researchers M1.2.1.2 Attracting high- skilled researchers from abroad in the public RDI organizations

P1.3. Internationalization

Rationale. The international exposure of Romanian research has generally been limited, as a consequence of poor funding and lack of information and experience, doubled by the absence of any incentives for researchers to commit to the effort. Following the reforms in the respect to performance assessment and the EU funding from the previous programming period, international activities and exposure are picking up. However, this generates further need for support and additional resources dedicated to facilitating affiliation or participation to regional, European or international initiatives, programs, infrastructures etc.

The SNCDI provides funding for Romania’s participation to the Joint Programming Initiatives (JPI)29, Joint Technology Initiatives (JTI)30, European Innovation Partnerships (EIP)31, as well as to bilateral programs and some international organizations.

At the same time, the current strategic framework supports the participation to Horizon 2020 projects, by ensuring co-financing, as well as to other types of institutional partnerships, common chairs and collaborations.

Objectives. Program 1.3 is aimed at increasing the participation of Romanian RD organizations and enterprises (especially SMEs) to Horizon 2020 and aims at achieving the following results:

(1.3.1.) Increased participation in international projectso The number of international partnerships under Horizon 2020 will reach 400, compared to the

baseline of 200 in 2016.

Description. Program 1.3 is comprised of four measures, designed to support participation in European research and to encourage international collaborations, by providing direct access to finance and to information for Romanian research organizations.

29 http://ec.europa.eu/research/era/joint-programming-initiatives_en.html 30 http://ec.europa.eu/research/jti/index_en.cfm 31 http://ec.europa.eu/research/innovation-union/index_en.cfm?pg=eip

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Subprogram 3.2 Horizon 2020 and Subprogram 3.6 Support of PNCDI are aimed at supporting the participation to various types of Horizon 2020 projects32 and to reward institutional participation in Horizon 202033.

EU funding through OP Competitiveness, PA1, Action 1.1.334 encourages synergies between H2020 and other international RDI programs, so as to contribute to the development of a common strategic perspective and to ensure coordination and complementarity between the Romanian participation in Horizon 2020 and in other RD&I initiatives. This is envisaged through:

- Establishing connections between emerging research centres and their European peers – Teaming projects35;

- Establishing ERA Chairs36 so as to attract top academics that would enable hosting institutions to compete with centres of excellence elsewhere in the European Research Area (ERA);

- Optimizing existing structures and establishing new ones for enabling the identification of priorities for the different instruments and coordination structures at national level (institutional development)

- Supporting research organizations and enterprises to participate in Horizon 2020, by financing personnel and administrative costs;

- Establishing Support Centres for assisting in the elaboration of RD projects proposals for Horizon 2020 or other international programs, so as to increase their success rate.

Subprogram 5.2 Participation in atomic and sub-atomic international research programs aims at increasing the visibility of Romanian research by participating in international research programs and organizations in the given field; promoting cooperation; obtaining nuclear technologies by consolidating collaborations between IFA Bucuresti37 and international partner organizations etc. The following modules are included: EURATOM-RO38: nuclear fusion, nuclear fission and radioprotection; CERN-RO39: physics of elementary particles, high energy nuclear physics, physics of radioactive beams; CEA-RO 40: nuclear energy, alternative energies and applications; F4E-RO41: fusion for energy. Both RD projects and support projects are financed.

Other critical priorities for financing are: supporting European partnership and financing for developing technologies for Lead Fast Reactor, by the implementation of the ALFRED project (Advanced Lead Fast Reactor European Demonstrator), within RATEN-ICN Mioveni, as well as supporting cooperation

32 See http://old.uefiscdi.ro/articole/4374/Subprogramul-32-Orizont-2020.html for the list of projects supported under Subprogram 3.233 http://old.uefiscdi.ro/articole/4548/Premierea-participarii-la-Orizont-2020.html 34 OP Competitiveness pg. 3535 http://ec.europa.eu/programmes/horizon2020/en/h2020-section/spreading-excellence-and-widening-participation 36 http://ec.europa.eu/research/era/era-chairs_en.html 37 http://www.ifa-mg.ro/38 http://www.ifa-mg.ro/euratom-fisiune/ 39 http://www.ifa-mg.ro/cern/ 40 http://www.ifa-mg.ro/cea/ 41 http://www.ifa-mg.ro/f4e/

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between AIEA Vienna42 and RATEN-ICN for Scientific and Technical Support for the IAEA Member States in respect to Nuclear Security, based on the Practical Arrangements signed by the parties.

Subprogram 5.3 Research, development and innovation program for space technology and advanced research (STAR) is implemented between 2012-2019

Subprogram 3.3. Supporting Romanian participation to European joint programming innitiatives (JPI) seeks to integrate Romanian research in the European research area, in the fields covered by the JPIs and to support the participation of Romanian research organizations to identifying common solutions / measures to societal challenges affecting European communities in different ways.

Subprogram 3.4 Support for the participation in the Joint Technological Innitiatives (JTI/JU) seeks to support the participation of Romanian entities to joint technological innitiatives and to create favourable conditions for investments in knowledge and innovation at national level, to stimulate competitiveness at European level, economic growth and employment.

Support for international collaborations will also be provided by Subprogram 3.1 Bilateral under PNCDI43, aimed at improving bilateral and multilateral cooperation in the field of scientific research. The main types of projects financed include: a) complex projects, where research fields and common activities are established by agreement between the respective RD&I institutions and b) mobility projects, financed according to the agreements signed by partner countries. At the same time, Subprogram 3.5 of PNCDI44 enables Romanian participation to European and international initiatives EUREKA45, EUROSTARS46, NATO47, Art. 185 of TFEU48 and others of similar nature. The Government Program also sets out to enhance cooperation in science and technology with the US, based on the Strategic Partnership.

Another line of action under P1.3 is ensuring access to international databases. Financed through OP Competitiveness PA1 1a – Action 1.1.2, it envisages one single project for ANELIS PLUS, which continues previous efforts under the 2007-2013 framework. This type of action has proved essential for improving research outputs and, as such, new resources will be targeted to ensuring access to information and documentation sources, creating a virtual campus and a national resources repository, promoting open access to scientific publications, as well as providing mobile access to resources.

Developing networks of RD centres coordinated at national level and connected to European and International networks will be financed from OP Competitiveness, under PI-1a – Action 1.1.2 GRID-GEANT49. This measure will contribute to increasing the involvement and connectivity of Romanian research to highly specialized networks, using GRID architectures, while also enabling the development of the specialized infrastructure necessary for supporting large and complex research projects. At the same time, the measure is aimed at improving (virtual) access to scientific publications and databases.

42 https://www.iaea.org/ 43 PNCDI, pg.2244 PNCDI, pg. 2345 http://www.eurekanetwork.org/ 46 https://www.eurostars-eureka.eu/countries/romania47 http://www.nato.int/cps/en/natohq/85367.htm 48 http://ec.europa.eu/research/era/art-185-in-horizon-2020_en.html 49 OP Competitiveness 2014-2020, pg.32

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Access will be ensured for all universities, RD institutions and central university libraries, through a dedicated project.

The following types of projects are envisaged: GRID type projects, continuing the development of RoEduNet50 (single project), high-speed connections to EU infrastructure; migration to high-speed connections; ensuring access to international scientific literature (single project, by ANELIS-PLUS51). Both RoEduNet and ANELIS-PLUS are priority projects for increasing the capacity of the Romanian RD system and its correlation and connection to international research.

Success factors. Critical success factors for achieving the envisaged change are related to:

- Increased public funding for RDI, according to the established targets;- Absorption of the available EU funds;- Maintaining a high level of commitment across the Government for achieving the necessary reforms

and achieving the assumed targets for RDI; - Strengthening the collaboration mechanisms between MRI and the other line ministries

Measures. The measures by which the program will be implemented are presented synthetically hereafter. Their allocated budgets, as well as the associated monitoring indicators and targets are presented in the Annexes to the ISP.

Table 4 Measures included in Program 1.3

(1.3.1) Increased participation in international projectsM1.3.1.1 Support for international collaborationsM1.3.1.2 Dissemination and access to information

P1.4. Research institutions

Rationale. Fundamental research is aimed at increasing Romania’s contribution to the development of the European Research Area (ERA). As per SNCDI, the research institutes under the Romanian Academy have the capability to internationally promote the Romanian scientific identity and to create leadership in a number of selected fields. By targeting funding to those fields/actors which have demonstrated excellence and internationalization potential, inter-disciplinary research will be supported, thus generating accumulation of knowledge, providing answers to societal problems and opening up new niches for excellence. No less important, fundamental research is crucial for preparing the future generations of researchers and specialists.

Objectives. Program 1.4 aims at maintaining and developing the niche RDI fields where RO still has a competitive advantage, so as to obtain high-level scientific results, with commercialization potential/ perspectives. As such, it aims at achieving the following results:

(1.4.1.) Increasing the output and quality of Romanian research:

50 https://www.roedu.net/ 51 http://www.anelisplus.ro/

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o The number of citable articles, according to the international SCIMAGOR ranking will increase, from 12.371 in 2015, to 15.000 in 2020.

Description. Program 1.4 comprises measures targeting support for fundamental and exploratory research, following the principles established by SNCDI in respect to competition based-financing and bottom-up definition of research themes.

PNCDI - Program 452 ensured financing for Exploratory Research Projects, Frontier Complex Research Projects and ERC-Like research projects, aiming at developing fundamental research in the priority fields established by SNCDI 2020, increasing Romanian contribution to ERA, developing emerging themes; adopting international evaluation standards for fundamental research projects. The main types of financed projects are: fundamental research projects, advanced studies, frontier research projects, supporting scientific results with high applicative potential, complex frontier projects, exploratory workshops.

PNCDI – Program 553 supports research in fields of strategic interest for Romania, for establishing and developing research institutions and competencies in those fields, so as to obtain valuable contributions for science, economy and society. The program aims at supporting the participation of Romanian research institutions to international institutions and programs, identifying research, technology and industrial niches at national, European and global level; using international RD resources by participating in joint European programs and organizations, to provide solutions to problems of strategic interest for Romania, obtaining visible scientific results etc.

This is complemented by the NUCLEU programs financing, as well as PNCDI – Subprogram 1.2 Institutional Performance, seeking to obtain the best value for the money invested in research, by concentrating resources to the top performing public RD organizations. This line of financing supports the implementation of the institutional development plans, as well as developing the capacity of public RD organizations for: capitalizing and disseminating research and research results; initiating and developing viable collaborations with partners; providing technical assistance and top level technological and scientific services in priority fields.

Success factors. Critical success factors for achieving the envisaged change are related to:

- Increased public funding for RDI, according to the established targets;- Absorption of the available EU funds;- Maintaining a high level of commitment across the Government for achieving the necessary reforms

and achieving the assumed targets for RDI;

52 http://old.uefiscdi.ro/articole/4475/P4Cercetare-fundamentala-si-de-frontiera.html 53 PNCDI, pg.24-28

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Measures. The measures by which the program will be implemented are presented synthetically hereafter. Their allocated budgets, as well as the associated monitoring indicators and targets are presented in the Annexes to the ISP.

Table 5 Measures included in Program 1.4

(1.4.1) Improving research results in Romania

M.1.4.1.1 Research in fields of strategic interest for Romania

M.1.4.1.2 Support for high-level research

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Strategic Objective 2. Increasing economic competitiveness through innovation

The second strategic objective focuses on supporting and promoting collaborations between the RDI sector and the productive sector, in direct connection with the priorities of the industrial, competitiveness and SME policies, this supports the transition of the Romanian economy from cost-based competitiveness to innovation-led performance.

At strategic level, both the SNCDI 2014-2020 and the Government Program for 2017-2020 have a significant focus on promoting the collaboration between the RDI sector and industry. However, in order for this to be effective, a comprehensive approach and broad reforms are necessary, at the level of the entire RDI ecosystem. While access to finance is certainly critical, so is research excellence, a favourable regulatory framework in respect to IPR protection, proper incentives and, not the least important, a good level of trust between the scientific and business communities.

Important lessons in respect to the concrete instruments for technology transfer and science-industry collaboration are to be observed from the previous programming period. Supply-driven projects (initiated by the RD institutions, instead of the private companies), low sustainability, little transparency, lack of support and not enough focus on overcoming the critical stages of commercialization are but a few of the deficiencies that the current rules are trying to avoid.

At the same time, a fast and substantial learning process has begun within the research community in terms of entrepreneurial culture and skills, on which the current framework is trying to capitalize. Improvements have also been made in terms of fiscal and regulatory environment.

Nonetheless, Romania’s performance is well below the European average. As observed in the European Innovation Scoreboard 2016, “The weakest relative performance in terms of dimensions is Linkages and entrepreneurship, while in terms of indicators, the worst relative performance is observed for PCT patent applications in societal challenges and PCT patent applications.” 54

Given the low level of science-business collaboration and the weak commercialization of research results, “In 2013 Romania received a country-specific recommendation to ensure closer links between research, innovation and industry, by prioritizing R&D activities that have the potential to attract private investment.” 55

Informed by these assumptions, Strategic Objective 2 sets out to provide the necessary means so as to further improve the mechanisms and instruments for research-industry collaboration and increased participation of the private sector to RDI

54 Available at: http://ec.europa.eu/DocsRoom/documents/17853 55As noted in the RIO 2020 – Country Report, available at: https://rio.jrc.ec.europa.eu/en/country-analysis/Romania/country-report

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Measures of Programme 2.2

M2.2.1.1 Implementation of risk capital instruments for RDI

M2.2.1.2 Supporting enterprises demand for innovation

Measures of Programme 2.1

M2.1.1.1 Knowledge transfer partnerships

M.2.1.1.2 Support for innovation clusters

Programul 2.2 Supporting private RDI investments

Programme 2.1 Knowledge transfer

SO2. Increasing economic competitiveness through innovation

Box 2 Strategic Objective 2. Impact and result indicators

Table 6 Strategic Objective 2: Financial allocations by budgetary programmes (thousand lei)SO2. Increasing economic competitiveness through innovation 2017 2018 2019 2020

Program 2.1: Knowledge transfer 237.920 172.000 152.000 70.000

Program 2.2 Supporting private RDI investments 70.000 70.000 170.000 100.000

TOTAL SO2 307.920 242.000 322.000 170.000

P2.1. Knowledge transfer

Rationale. The historical separation between the research and business/industry sectors has resulted, among others, in a lack of knowledge and skills, at the level of the RD&I institutions and organizations, in what concerns the needs and expectations of the industry, the advantages of collaboration, technological transfer or capitalization of RD results. On the demand side, this resulted in diminishing interest in developing functional relationships with the RD institutions.

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(2.1.1) Increasing the number of SMEs accessing results and resources of RDI organizations for improving products and services: The share of innovative SMEs which collaborate with others (% of total SMEs) will increase, from 1,2% in 2015 , to 6% in 2020. The share of SMEs introducing innovative products and services (%) will increase, from 5,2% in 2015, to 20% in 2020.

(2.2.1) Increasing the participation of Romanian enterprises (particularly SMEs) in RDI: The number of spin-offs and start-ups established per year will increase, from 40 in 2016, to 48 in 2020; The number of innovative SMEs accessing risk capital for RDI through NSRDI instruments will increase, from 0 in 2016, to 300 in 2020.

Increasing collaborations between the private sector and the public research system: The number of public-private co-publications (no/1 million inhabitants) will increase, from 2,6 in 2015, to 4 in 2020;

Developing RDI activities by the private sector: The number of EP, USPTO patent requests (np/year) will increase, from 85/year in 2016, to 120/year in 2020; The share of SMEs innovating in-house (% of total SMEs) will increase, from 11% in 2016, to 18% in 2020

Programmes’ results

Impact

Learning from the past programming period, SNCDI and the subsequent available resources support the extensive skill build-up at the level of the public RD organizations and the development of services in respect to research commercialization, increasing collaborations with the private sector, service-provision, increasing mobility between research and industry etc.

Objectives: Program 2.1 set out to achieve the following results by 2020:

(2.1.1) Increasing the number of SMEs accessing results and resources of RDI organizations for improving products and services:

o The share of innovative SMEs which collaborate with others (% of total SMEs) will increase, from 1,2% in 2015 , to 6% in 2020.

o The share of SMEs introducing innovative products and services (%) will increase, from 5,2% in 201556, to 20%57 in 2020.

Description. Program 2.1 comprises a series of measures, funded both from national and European sources, designed to support collaboration instruments and to activate entrepreneurial activities at the level of RD&I institutions.

Knowledge transfer partnerships, financed through OP Competitiveness PA1-1b – Action 1.2.358, seeks to encourage interactions between RD&I institutions and university and the business environment, by supporting enterprises’ access to the expertise and facilities of the RD&I institutions. At the same time, this is a means to capitalize on the existing infrastructures and resources, which have been acquired, developed or modernized during the previous programming period and which can support the needs for innovation of enterprises. The projects envisaged under this line of financing are grouped under three categories: knowledge transfer, partnership actions and enterprises’ access to the facilities, installations and research equipment of the research organization in order to perform test or experiments necessary for the development of new or improved products/ technologies/ methods.

In complementarity with OP Competitiveness, PNCDI Subprogram 2.2 facilitates technological transfer in support of competitiveness, by means of offices for connection with the industry and technological information centres.

Supporting innovation clusters will be achieved through OP Competitiveness PA1 – 1a - Action 1.1.1 – type C projects, designed to encourage the common use of equipment, information and knowledge exchange, networking, dissemination of information between enterprises and the other cluster members.

Support for partnerships between RD&I institutions and enterprises will also be provided from the national budget, through PNCDI – Subprogram 2.1 by an array of interventions, among which Bridge grants, Transfer to enterprise, Implementation to economic agent, Technology platforms, Cluster development and management, competitions etc.

56 Sistemul de indicatori ai inovării europene 2016, disponibil la: http://ec.europa.eu/DocsRoom/documents/1782357 După cum a stabilit SNCDI. Actualizarea este necesară, deoarece este puțin probabil ca obiectivul să fie atins58 OP Competitiveness, pg. 46-47, available at: http://www.fonduri-ue.ro/images/files/programe/COMPETITIVITATE/POC/Programme_2014RO16RFOP001_2_0_ro.pdf

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Supporting enterprise demand for innovation will be done through RD projects under OP Competitiveness PA1-1b – Action 1.2.1 start-up/spin-off.

Success factors. Critical success factors for achieving the envisaged change are related to:

- Increased public funding for RDI, according to the established targets;- Absorption of the available EU funds;- Maintaining a high level of commitment across the Government for achieving the necessary reforms

and achieving the assumed targets for RDI;

Measures. The measures by which the program will be implemented are presented synthetically hereafter. Their allocated budgets, as well as the associated monitoring indicators and targets are presented in the Annexes to the ISP.

Table 7 Measures included in Program 2.1

(2.1.1) Increasing the number of SMEs accessing results and resources of RDI organizationsM2.1.1.1 Knowledge transfer partnershipsM.2.1.1.2 Support for innovation clusters

P2.2. Supporting private RDI investmentsRationale. The European Semester Country report for 2016 highlights that “While the business sector shows some signs of increasing interest in innovation, especially in ICT, the phenomenon remains marginal.” 59 Access to finance is one of the main problems of SMEs, especially when it comes to innovation and RD activities. Given the interest shown by the private sector in pursuing RD projects under the previous programming period, it is necessary to capitalize on the investments which have already been made, while bringing new forms of support.

Objectives. Program 2.2 set out to achieve the following results by 2020:

(2.2.1) Increasing the participation of Romanian enterprises (particularly SMEs) in RDI: The number of spin-offs and start-ups established per year will increase, from 4060 in 2016, to 48

in 2020; The number of innovative SMEs accessing risk capital for RDI through NSRDI instruments will

increase, from 0 in 2016, to 300 in 2020.

Description. As established by the current strategic and financing framework, Program 3.1 comes to support private RD activities, by enabling access to funding through risk capital instruments, by encouraging the development of RDI infrastructures, stimulating enterprise demand for RDI and supporting highly innovative projects for SMEs.

Supporting private RDI infrastructures will be achieved through OP Competitiveness PAI-1a Action 1.1.1 – type B projects, designed to support investments for the RD departments of enterprises.

59 Available at: https://rio.jrc.ec.europa.eu/en/country-analysis/Romania/european-semester60 Sursa: Raport intern MENCS

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OP Competitiveness will also support enterprise demand for innovation, through RD projects under PA1-1b – Action 1.2.1 start-ups.

Complementary to OP Competitiveness, PNCDI will provide support for RD activities in enterprises, through an array of interventions under Subprogram 1.2, such as innovation cheques.

Risk capital instruments for RDI will be financed through OP Competitiveness, PAI-1b Action 1.2.2. They are implemented in partnership with EIF.

Success factors. Critical success factors for achieving the envisaged change are related to: Absorption of the available EU funds; Maintaining a high level of commitment across the Government for achieving the necessary reforms

and achieving the assumed targets for RDI; Strengthening the collaboration mechanisms between MRI and the other ministries and agencies.

Measures. The measures by which the program will be implemented are presented synthetically hereafter. Their allocated budgets, as well as the associated monitoring indicators and targets are presented in the Annexes to the ISP.

Table 8 Measures included in Program 2.2

(2.2.1) Increasing the participation of Romanian enterprises (particularly SMEs) in RDI:M2.2.1.1 Implementation of risk capital instruments for RDI M2.2.1.2 Supporting enterprises demand for innovation

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Strategic Objective 3. Improving administrative capacity

The national public RD&I system in Romania has the Ministry of Research and Innovation at the centre of its governance system. While frequent changes in the government structure have led, as is the case for all other sectors, in numerous alterations of the RD&I policy design and implementation. Nonetheless, at operational level, a relatively high degree of stability has been preserved, leading to know-how accumulation and higher performance compared to other ministries.

A number of (high-level) consultative bodies are designed to ensure coordination of the RD&I policy at inter-ministerial level, as well as its correlation with other relevant policies, but their practical contribution is limited.

The public RD&I system is made up of national institutes for research and development, institutes of the Romanian Academy, and universities. The organisations most closely identified with ‘research and development’ are the national R&D institutes (NRDIs), the majority of which are under MRI coordination (since the 2013 reform).

As noted by the 2016 RIO Country Report, the Romanian RD&I system is highly centralized, divided between a roughly equal number of applied research and fundamental research organisations, dominated by institutional funding, allocated on an annual base. Since private entities make up only for a very small part, their involvement and input into the overall governance of the system is limited. Institutional fragility and uncertainty have often characterized the R&D system.

Except for the public entities benefiting from some form of institutional funding (either research institutes or public universities61), the rest of the actors are dependent on project-based funding and have been struggling to adapt to the performance requirements.

The majority of research activities are performed in the capital region of Bucuresti-Ilfov, showing a highly unbalanced distribution of capacity. The ministry has limited territorial representation, which, in the light of the regional innovation strategic planning, has led to the situation where the RIS3 strategies are effectively disconnected from the overall RD&I policy and concentrate mainly on implementing the available ERFD funds.

SNCDI 2014-2020 provides for an embedded ‘strategic orientation’ mechanism which would enable constant data collection, monitoring, and periodic evaluation of its implementation. The mechanism relies on:

Systematic data collection through a variety of instruments (the Registry of Researchers in Romania, the Registry of Research Infrastructures, intellectual capital reports etc.);

Horizon scanning system for emerging trends (technological trends in particular); An observatory of the RDI ecosystem.

61 Which only receive institutional funding for education

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The expected change (impact), following the implementation of the program and measures subsequent to SO3 refers to increasing the efficiency of resources in the RDI sector.

Box 3 Strategic Objective 3: Impact and result indicators

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Measures of Programme 3.1

M3.1.1.1 Evidence-based RDI policy

M3.1.2 National RDI governance system

Programme 3.1. RDI governance system

SO3. Improving administrative capacity

(3.1.1) Improved efficiency and effectiveness at the level of the national RDI system: The managerial control standards in line with Order 400/2015, will be fully adopted; All public policy documents will be compliant with the impact assessment procedure ; The RDI governance system will be streamlined and developed

Budgetary resources will be carefully planned and eficiently spent, so as the total number of research projects implemented in Romania will increase, from 7.872 in 2015, to 10.000 in 2020.

Programmes’ results

Impact

Table 9 Strategic Objective 3: Financial allocations by budgetary programmes (thousand lei)

SO3. Improving administrative capacity2017 2018 2019 2020

Program 3.1: RDI governance system 494.689 449.580 475.839 519.468

TOTAL SO3 494.689 449.580 475.839 519.468

P3.1. RDI governance system

Rationale. By mandate, the MRI is responsible for organizing and leading the national system for scientific research, technological development and innovation. By law, it is the authority designated with the management and implementation of the PNCDI III and acts as an implementing body for PA1 under OP Competitiveness 2014-2020. It is, therefore, necessary, not only to ensure and maintain a high degree of professionalization in the system, but also to constantly improve the efficiency and effectiveness of the tasks performed.

Although it has passed through a number of institutional changes over time, the MRI team holds significant experience in program budgeting and management, which is an important strength to be capitalized upon.

As noted by the RIO Country Report 201662, “Romania has a very fragmented research, development and innovation policy governance. Despite changes and improvements in policy formulation, the public R&I sector needs a reorganisation. There is a lack of coordination between the relevant policy actors, a fragmented institutional setting, and unpredictability at the level of the advisory councils of the MESR, unreliable funding, and a limited evaluation culture.” With the MRI is at the centre of the system, responsible for organizing and leading the national system for scientific research, technological development and innovation, the overall governance is complemented by a series of inter-institutional coordination mechanisms (consultative bodies, councils, committees), with limited effectiveness and little activity.

These boards are supported by MRI and, respectively, by the Executive Agency for Higher Education, Research, Development and Innovation Funding (UEFISCDI) and they contribute directly to the management of the programmes of the National RDI Plan, through developing professional procedures for project financing. These councils have limited power in determining the flow of resources. The Government Program 2017-2020 also sets out to reorganize the RD&I Consultative Council, the National Research Council and the National Council for Innovation and Entrepreneurship, by establishing specialized committees with enhanced decision-making power in implementing research and development policies. The new organizational framework will include representatives of the academic community and of the economic environment (large employers).

62Section on Challenges - Improve the R&I governance, available at: https://rio.jrc.ec.europa.eu/en/country-analysis/Romania/country-report

38

At the level of the public RD institutions, reforms need to implemented, in terms of consolidating performance monitoring and budgeting. In terms of governance, an important component will consist in ensuring the proper functioning and coordination of the various consultative bodies63:

Technical Secretariat of the National Council for Science, Technology and Innovation Policy (NCSTIP) Consultative College for RDI (CC-RDI) National Council for Scientific Research (CNCS) National Council for Development and Innovation National Council for Ethics in Scientific Research, Technological Development and Innovation (NCE)

Objectives. Program 3.1 sets out to improving the efficiency of the MRI by achieving the following results:

(3.1.1) Improved efficiency and effectiveness at the level of the national RDI system The managerial control standards in line with Order 400/2015, will be fully adopted All public policy documents will be compliant with the impact assessment procedure The RDI governance system will be streamlined and developed.

Description. Capacity building will concentrate on ensuring the necessary resources and instruments for functioning, for developing and implementing the policies, program and project of the ministry. At the same time, it will focus on increasing the quality of the decision-making processes; last but not least, efforts will be devoted to developing the human capital by ensuring proper training, supporting the attraction and retention of personnel and improving organizational culture.

Process improvement will require a comprehensive set of actions, dedicated to developing, updating and streamlining work procedures, implementing managerial control standards, introducing new work methods and streamlining internal communication, including through the use of digital media and adoption/development of IT tools.

Evidence-based decision making should be mainstreamed at the level of the ministry, by providing access to data and information for the ministry staff (via protocols or, preferably, by connecting the ministry to integrated databases which should at the level of the public administration).

In respect to the RDI programs implementation, it is important to achieving the objectives and results set for the programs, while maintaining a high degree of efficiency and effectiveness. The following programs are envisaged:

National RDI Plan 2014-2020 NUCLEU Sectoral Plan Competitiveness OP 2014-2020 – PA1 SEE – Norway Programme

At the same time, it is necessary to consolidate the MRI presence at territorial level, as the institutional structure is no longer adapted to the innovation policy implementation framework. Research and innovation policies have been developed at regional level, by the Regional Development Agencies. In the

63 Presented in their current set-up, subject to reform

39

view of improving the coordination between the national and regional interventions, regional observatories are set to be established (as per the Government Programme).

Success factors. Critical success factors for achieving the envisaged change are related to: Ensuring organizational stability; Maintaining consistency in the mandate and priorities of the ministry and the institutions under its

subordination and/or coordination Maintaining a high level of commitment across the Government for achieving the necessary reforms

and achieving the assumed targets for RDI; Strengthening the collaboration mechanisms between MRI and the other ministries and agencies.

Measures. The measures by which the program will be implemented are presented synthetically hereafter. Their allocated budgets, as well as the associated monitoring indicators and targets are presented in the Annexes to the ISP.

Table 10 Measures included in Program 3.1

(3.1.1) Improving efficiency and effectiveness M3.1.1.1 Evidence-based RDI policyM3.1.2 National RDI governance system

40

IV. Performance Monitoring and Evaluation System

The Institutional Strategic Plan will be implemented in correlation with the annual budgetary planning and execution, taking into consideration the multiannual budgetary and strategic planning framework that covers four years. Thus, the ISP will serve as basis for substantiating the budget for the following year and, in turn, it will be updated based on the past year performance in spending the allocated resources.Although currently there is no direct link between the budgetary planning process and program setting within ministries, it is estimated that by 2020 the entire institutional budgeting to be done solely on programs, thus allowing for an increased efficiency and clearer links between funding and results.The ISP implementation starts once the annual budget has been approved by the Parliament. It should be fully correlated with the Government Program and the Annual Work Plan of the Government, so that the activities and projects are monitored and, if needed, tailored as to allow for the envisaged results to be achieved. Within the MRI, the responsibility for preparing the Annual Operational Programs for the ISP implementation will fall under the responsibility of the WG and of all the ministry directions and will be coordinated by the designated Secretary of State. The team is also responsible with the monitoring and first-level reporting to decision-makers (State Secretaries, Minister). The team will be comprised of representatives from all structures that have responsibilities in the ISP implementation, appointed through an Order of the Minister.Monitoring and evaluation: a monitoring and evaluation framework is set in the ISP sections and summarized in the annexes. This provides information on indicators and targets, for different planning levels. Details on the impact and outcome indicators suggested to assess performance are to be found also in the previous section of the ISP. Currently, at the level of MRI the practice and experience in program budgeting, as well as in monitoring and evaluation is sufficiently developed so as to ensure a proper implementation and monitoring. Data collection and management: a strategic planning and performance evaluation application has been developed, with the structure template suggested for the ISP. The application is development at the Centre of the Government (GSG) and will be employed to collect the data and present it in a structured way, by Project, Measure, Program and Strategic Objective, respectively. Reporting frequency: As per the methodology, input and process indicators will be monitored quarterly, output indicators will be monitored every semester, outcome and impact indicators will be monitored annually. Input and process indicators, not included in the ISP, should be established at action/project level (in the Operational Plan) and monitored on an ongoing basis, along the implementation). In order to generate as little administrative burden as possible for the monitoring team, it is advisable that indicators should be collected from public, official sources (NIS, Eurostat, WB, other national or international institutions and organizations), whenever possible. At the same time, data collection for any other parallel monitoring or evaluation exercises (such as those conducted for national strategies and plans) should feed into the ISP monitoring and evaluation, as much as possible. Transparency and communication is also important for the reporting of results. The center of the Government, the Parliament, as well as other stakeholders, public or private, should be allowed and

41

encouraged to learn about the progress achieved in delivering the results, the challenges encountered and the necessary steps ahead. In this context, the ISP should be a useful and powerful communication tool for increasing the visibility of the MoE team and of the efforts made.Internal communication is essential in respect to the implementation of the ISP and it should be used as means for sharing information among the different direction and task groups at the level of the ministry.ISP evaluation and revision: As per the methodology, yearly revisions of the ISP are recommended, so as to align the projected priorities, programs and measures to the respective political priorities and overall context, and to update indicators and targets. A diagram of the ISP monitoring cycle is presented below: Figure 5 Monitoring Cycle of the Institutional Strategic Plan 2017-2020

A complete exercise of strategic planning will be done once every four years. In the meantime, between April and June, MoE, through the ISP working group, will prepare an annual update to establish if any changes are necessary to the ISP. This will focus on:

- Comparing achieved outcomes against those planned for the previous year;- Updating the context, identifying any major changes in the assumptions used for the current

plan; - Adding one additional year in to the plan, updating any necessary programs and measures.

As such, the timespan of future ISPs should cover the following periods:

ISP Timespan2017 2017- 20202018 2018 -20212019 2019-20222020 2020-2023

The revision exercise should be completed by the 30th of May of every year, so as to provide the necessary input for the future budgetary exercise.

42

BI-ANNUAL ANALYSIS OF RESULTS R: RESULT, OUTPUT

AND INPUT INDICATORS REZULTAT, PRODUS ȘI INTRARE

TRIMESTER ANALYSIS: PROCESS/OUTPUT AND

INPUT INDICATORS

TRIMESTER ANALYSIS: PROCESS/OUTPUT AND

INPUT INDICATORS

TRIMESTER ANALYSIS: PROCESS/OUTPUT AND

INPUT INDICATORS

TRIMESTER ANALYSIS: PROCESS/OUTPUT AND

INPUT INDICATORS

ANNUAL ANALYSIS OF RESULTS : ALL INDICATORS

OCT.JUL.APR.IAN.

V. Financial Resources

The ISP of the Ministry Research and Innovation is comprised of four strategic objectives, comprising eight budgetary programs. The measures are implemented by MRI. The implementation of the ISP will be ensured through the national budget and EU funding. Expenditure limits are those established by the Fiscal-Budgetary Strategy for 2017-2019. As such, the validity of the budgetary programs is linked to the overall budgetary performance framework. At the same time, EU funding is not entirely definitive.During the projected period (2017-2020), the strategic objectives and budgetary programs within the ISP will amount to 7,8 bn leiTable 11 Annual financial allocations, by strategic objectives (thousand lei)

Strategic objectivesTOTAL 2017 2018 2019 2020

7.810.376,00 1.987.739,00 1.914.630,00 2.014.889,00 1.893.118,00

SO1. Developing the RDI capacity and dissemination of research results

4.828.880,00 1.185.130,00 1.223.050,00 1.217.050,00 1.203.650,00

SO2. Increasing economic competitiveness through innovation

1.041.920,00 307.920,00 242.000,00 322.000,00 170.000,00

SO3. Improving administrative capacity

1.939.576,00 494.689,00 449.580,00 475.839,00 519.468,00

4,828,880.00

1,041,920.00

1,939,576.00

SO1. Developing the RDI capacity and dissemination of research resultsSO2. Increasing economic competitiveness through innovationSO3. Developing adminis-trative capacity

43

Table 12. Financial allocation, by expenditure (thousand lei)State budget 1.758.989 1.685.880 1.686.139 1.686.368Expenditure for personnel, good and services financed from the state budget

20.344 20.619 20.878 21.132

Expenditure for goods and services financed from the state budget

22.262 21.480 23.049 22.555

Expenditure for personnel, good and services financed from the state budget

42.606 42.099 43.927 43.687

All other expenditure financed from the state budget

1.716.383 1.643.781 1.642.212 1.642.681

Other transfers 1.305.237 1.305.239 1.305.239 1.305.214FEN 406.241 337.042 335.473 335.967

In respect to budget management, the most important institutional challenge is the capacity of the ministry to actually implement the ISP: that is to plan, execute and monitor the budgets under the four strategic objectives, so as to enable proper program budgeting from 2018. From a managerial and organizational perspective, the transition to program-based budgeting is the main challenge during the life-cycle of the ISP, particularly bearing in mind the fact that this process needs to be coordinated, implemented and streamlined from the center of the government, with political support and commitment and in collaboration with the Ministry of Finance.

44

Annex 1a: Budgetary Objectives and Programmes 2017-2020 (thousand lei)

Budget programmes Total ,000 RON

Total Value/years,000 RON Funding sources/value ,000 RON

State budget FEN Co-fin FEN OP C

2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020

P1.1. Physical infrastructure 689.200 107.500 187.700 189.000 205.000 107.500 187.700 189.000 205.000 - - - - - - - - - - - -

P1.2. Human resources for RDI 606.740 136.490 156.750 156.750 156.750 29.740 50.000 50.000 50.000 - - - - - - - - 106.750

106.750

106.750

106.750

P1.3. Internationalization 1.035.330 232.730 286.500 279.200 236.900 232.730 286.500 279.200 236.900 - - - - - - - - - - - -

P1.4. RDI institutions 2.497.610 708.410 592.100 592.100 605.000 708.410 592.100 592.100 605.000 - - - - - - - - - - - -

TOTAL SO1 7.810.376

1.987.739

1.914.630

2.014.889

1.893.118

1.078.380

1.116.300

1.110.300

1.096.900 - - - - 118.01

496.79

996.79

996.79

9106.75

0106.75

0106.75

0106.75

0

P2.1. Knowledge transfer 631.920 237.920 172.000 152.000 70.000 185.920 120.000 100.000 70.000 - - - - - - - - 52.000 52.000 52.000 0

P2.2. Supporting private RDI investments 410.000 70.000 70.000 170.000 100.000 - - - - - - - - - - - - 70.000 70.000 170.00

0100.00

0

TOTAL SO2 1.041.920 307.920 242.000 322.000 170.000 185.920 120.000 100.000 70.000 - - - - - - - - 122.00

0122.00

0222.00

0100.00

0

P3.1. RDI governance system

1.939.576 494.689 449.580 475.839 519.468 87.403 115.517 141.776 185.405 289.27

2237.26

4237.26

4237.26

4118.01

496.79

996.79

996.79

9

- - - -

TOTAL SO3 1.939.576 494.689 449.580 475.839 519.468 87.403 115.517 141.776 185.405 289.27

2237.264

237.264

237.264

118.014

96.799

96.799

96.799 - - - -

45

Annex 1b: Programmes, Measures, and related Budgets 2017-2020 (thousand RON)

Code Strategic Objective/

Programme/ Measure

Value, ,000 RON

Value/years ,000 RON State budget ,000 RON EU funds budget ,000 RON Co-financing state budget ,000 RON OP Competitiveness

2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020

SO1 Developing the capacity for scientific research and dissemination of research results

4.828.880,00

1.185.130,00

1.223.050,00

1.217.050,00

1.203.650,00

1.078.380,00

1.116.300,00

1.110.300,00

1.096.900,00 - - - - - - - - 106.750,

00106.750,

00106.750,

00106.750,

00

P1.1. Physical infrastructure 689.200 107.500 187.700 189.000 205.000 107.500 187.700 189.000 205.000 - - - - - - - - - - - -

M1.1.1.1

Financing infrastructure projects of European importance

29.200 2.500 2.700 4.000 20.000 2.500 2.700 4.000 20.000 - - - - - - - - - - - -

M1.1.1..2

Financing RDI infrastructures ffor public RDI institutions

660.000 105.000 185.000 185.000 185.000 105.000 185.000 185.000 185.000 - - - - - - - - - - - -

P1.2. Human Resources for RDI

606.740 136.490 156.750 156.750 156.750 29.740 50.000 50.000 50.000 - - - - - - - - 106.750 106.750 106.750 106.750

M1.2.1.1

Supporting the preparation of a new generation of researchers

179.740 29.740 50.000 50.000 50.000 29.740 50.000 50.000 50.000 - - - - - - - - - - - -

M1.2.1.2

Attracting high- skilled researchers from abroad in the public RDI organizations

427.000 106.750 106.750 106.750 106.750 - - - - - - - - - - - - 106.750 106.750 106.750 106.750

P1.3. Internationalization 1.035.330 232.730 286.500 279.200 236.900 232.730 286.500 279.200 236.900 - - - - - - - - - - - -

M1.3.1.1

Support for international collaborations

709.330 151.230 205.000 197.700 155.400 151.230 205.000 197.700 155.400 - - - - - - - - - - - -

M1.3.1.2

Dissemination and access to information

326.000 81.500 81.500 81.500 81.500 81.500 81.500 81.500 81.500 - - - - - - - - - - - -

P1.4. RDI Institutions 2.497.610 708.410 592.100 592.100 605.000 708.410 592.100 592.100 605.000 - - - - - - - - - - - -

M.1.4.1.1

Research in fields of strategic interest for Romania

1.569.200 390.200 392.000 392.000 395.000 1.569.200 390.200 392.000 392.000

M.1.4.1.2

Support for high-level 928.410 318.210 200.100 200.100 210.000 928.410 318.210 200.100 200.100 - - - - - - - - - - - -

46

Code Strategic Objective/

Programme/

Value, ,000 RON

Value/years ,000 RON State budget ,000 RON EU funds budget ,000 RON Co-financing state budget ,000 RON OP Competitiveness2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020

research SO2 Increasing

economic competitiveness through innovation

1.041.920,00

307.920,00

242.000,00

322.000,00

170.000,00

185.920,00

120.000,00

100.000,00

70.000,00 - - - - - - - - 122.000

,00122.000

,00222.000

,00100.000

,00

P2.1. Knowledge transfer 631.920 237.920 172.000 152.000 70.000 185.920 120.000 100.000 70.000 - - - - - - - - 52.000 52.000 52.000 0

M2.1.1.1

Knowledge transfer partnerships

475.920 185.920 120.000 100.000 70.000 185.920 120.000 100.000 70.000 - - - - - - - - - - - -

M.2.1.1.2

Support for innovation clusters

156.000 52.000 52.000 52.000 - - - - - - - - - - - - - 52.000 52.000 52.000 -

P2.2 Supporting private RDI investments

410.000 70.000 70.000 170.000 100.000 - - - - - - - - - - - - 70.000 70.000 170.000 100.000

M2.2.1.1

Implementation of risk capital instruments for RDI

475.920 185.920 120.000 100.000 70.000 185.920 120.000 100.000 70.000 - - - - - - - - - - 100.000 100.000

M2.2.1.2

Supporting enterprises demand for innovation

156.000 52.000 52.000 52.000 - - - - - - - - - - - - - 70.000 70.000 70.000 -

SO3 Improving administrative capacity

1.939.576,00

494.689,00

449.580,00

475.839,00

519.468,00

87.403,00

115.517,00

141.776,00

185.405,00

289.272,00

237.264,00

237.264,00

237.264,00

118.014,00

96.799,00

96.799,00

96.799,00 - - - -

P3.1. RDI governance 1.939.576 494.689 449.580 475.839 519.468 87.403 115.517 141.776 185.405 289.272 237.264 237.264 237.264 118.014 96.799 96.799 96.799 - - - -

M3.1.1.1

Evidence-based RDI policy

40.000 10.000 10.000 10.000 10.000 10.000 10.000 10.000 10.000 - - - - - - - - - - - -

M3.1.2

National RDI governance system

1.899.576 484.689 439.580 465.839 509.468 77.403 105.517 131.776 175.405 289.272 237.264 237.264 237.264 118.014 96.799 96.799 96.799 - - - -

Total ISP 7.810.376 1.987.739

1.914.630

2.014.889

1.893.118

1.351.703

1.351.817

1.352.076

1.352.305 289.272 237.264 237.264 237.264 118.014 96.799 96.799 96.799 106.750 106.750 106.750 106.750

47

Annex 2: Institutional Strategic Plan (summary table)

Objectives, programs, indicators Unit Baseline Target 2019 Target 2020Strategic Objective 1. Developing the capacity for scientific research and dissemination of research results

Impact Indicator 1: share of scientific publications present in the top 10% most cited publications worldwide, out of the total number of publications in the country

% 4% 5% 6%

Impact Indicator 2: number of international scientific co-publications/1 mil. inhabitants

No./1mil inhab 160 250 300

Impact Indicator 3: number of researchers (FTE) Number 16.000 16.500 17.000P1.1. Physical infrastructureResult 1.1.1. Increasing the capacity utilization rate of the research facilities

Outcome indicator: number of researchers working in improved research centres

Number 0 450 473

P1.2. Human Resources for RDIResult 1.2.1. Increasing the number of researchers

Outcome indicator: The number of new doctoral graduates per thousand population aged 25-34

No./1000 inhabitants

1,4 1,5 1,5

Outcome indicator The number of new researchers (FTE) in the supported entities

Number 0 550 627

P1.3. InternationalizationResult 1.3.1. Increased participation in international projects

Outcome indicator: The number of international partnerships under Horizon 2020

Number 200 350 400

P1.4. RDI InstitutionsResult 1.4.1. Increasing the output and quality of Romanian research

Outcome indicator: The number of citable articles, according to the international SCIMAGOR ranking

Number 12.371 14.500 15.000

Strategic objective 2. Increasing economic competitiveness through innovation

Impact Indicator 1: The number of public-privat co-publications (no./1 mil No./mil 2,6 3,5 4

48

Objectives, programs, indicators Unit Baseline Target 2019 Target 2020inhabitants) inhabImpact Indicator 2: number of EPO, USPTO patents (number/year) Number/

year85 100 120

Impact Indicator 3: The share of SMEs innovating in-house % 11% 16% 18%P2.1. Knowledge transferResult 2.1.1. Increasing the number of SMEs accessing results and resources of RDI organizations for improving products and services

Outcome indicator: The share of innovative SMEs which collaborate with others (% of total SMEs)

% 1,2% 4% 6%

Outcome indicator: The share of SMEs introducing innovative products and services (%)

% 5,2% 18% 20%

P2.2. Supporting private RDI investmentsResult 2.2.1. Increasing the participation of Romanian enterprises (particularly SMEs) in RDI

Outcome indicator: Start-ups and spin-offs established / year Number/ year

40 46 48

Strategic Objective 3. Developing administrative capacityImpact Indicator 1: Total number of RDI projects in Romania Number 7.872 9.000 10.000P3.1. RDI governanceResult 3.1.1. Improving efficiency and effectiveness

Outcome indicator: Managerial control standards adopted in line with Order 400/2015

Number 0 16 16

Outcome indicator: Public policy documents compliant with the impact assessment procedure (%)

% 0 100% 100%

Outcome indicator: Improved RDI system Number 0 1 1

49

Annex 3: Programs and connected Measures, Output Indicators (Summary Table)

Measures Output Indicator Unit/Target Values

Output indicator (M.U.)

Target 2017

Target 2018

Target 2019

Target 2020

P1.1. Physical infrastructure(1.1.1) Increasing the capacity utilization rate of the research facilitiesM1.1.1.1 Financing infrastructure projects of European importance OP Competitiveness, Specific Objective 1.1

Financing major infrastructure projects refers to supporting the development of large, open pan-European research infrastructures (ESFRI) in Romania. Two such projects are envisaged for financing under OP Competitiveness, Specific Objective 1.1. Increasing the RD&I capacity in smart specialization and health, Investment Priority 1a, namely: ELI-NP64 and Danubius-RI65

These will also be supported by Subprogram 5.1. Research, development and innovation program for ultra-high power lasers technologies – ELI-NP.66 And Subprogram 5.4. Research, development and innovation for river-delta-maritime systems (DANUBIUS).

Major projects financed (Number)

00 1 1 1

Large projects financed (Number)

00 2 2 2

M1.1.1.2 Financing RDI infrastructures for public RDI institutions

Financing large RDI infrastructures for public RDI institutions and universities is financed from:- OP Competitiveness, Specific Objective 1.1. Increasing the RD&I capacity in smart specialization and health, Investment Priority 1a. investments for increasing RD capacity in fields identified under SNCDI as priority for smart specialization and

Public infrastructures supported (Number)

00 6 8 10

Large investment projects (Number)

0

0 1 2 4

64 http://www.eli-np.ro/ro/ 65 http://www.danubius-ri.eu/ 66 http://www.eli-np.ro/about-eli.php

50

Measures Output Indicator Unit/Target Values

Output indicator (M.U.)

Target 2017

Target 2018

Target 2019

Target 2020

health. This will be done by developing and furbishing new labs or research centres or by modernizing new ones for public research institutions and universities. - PNCDI – Subprogram 1.3 RD Infrastructures . This is directly targeted at improving the integrated development and efficient use of the available public research material base. As per the PNCDI, investments should be targeted towards priority sectors, particularly in the best performing research organizations, so as to optimize investments in RD equipment and favour revenue generation from their utilization.- Another line of financing consists in the Program for Financing New Research Installations of National Interest, through which costs are covered for maintanance, use, functioning and security for the 29 installations and special objectives of national interest.P1.2. Human resources

(1.2.1.) Increasing the number of researchersM1.2.1.1 Supporting the preparation of a new generation of researchers Supporting the preparation of a new generation of researchers is the focus of Subprogram 1.1 Human Resources of PNCDI67, aimed at increasing the number and the quality of human resources in RD activities in priority sectors. The objectives envisaged by the subprogram refer to increasing the number of researchers and preparing new generations, increasing the attractiveness of the research career, improving group performance, creating and updating the National Researchers’ Registry.

Main types of projects financed under this measure are: PhD and Post-Doc Research Projects, including industrial PhD; Research projects for stimulating young independent teams; complex programs for reintegrating researchers from the diaspora (young and experienced); Young Researcher

PhD programmes supported (Number)

0

15 15 15 15

67 PNCDI pg. 17

51

Measures Output Indicator Unit/Target Values

Output indicator (M.U.)

Target 2017

Target 2018

Target 2019

Target 2020

Scholarship; rewarding research results (articles), research scholarships ("Stefan Odobleja"; Spiru Haret").

M1.2.1.2 Attracting high- skilled researchers from abroad in the public RDI organizationsAttracting highly-skilled researchers from abroad in the public RDI organizations and developing the concept of “brain return”, financed through POC PA1 – 1a – Action 1.1.4 targets the creation of scientific and/or technological competence cores, at European standards, within an RD institution, university or enterprise, by attracting specialists from abroad. Projects will be conducted by the specialist from abroad, who will be hired as a scientific researcher (at least) for the duration of the project, by the host institution. This action is aimed at consolidating the RD&I capacity for preparing the participation to Horizon 2020 and will concentrate on the four plus one priority sectors established by the SNCDI.

Specialists from abroad hired in

supported projects (Number)

0

10 25 35 50

P1.3. Internationalization(1.3.1) Increased participation in international projects

M1.3.1.1 Support for international collaborationsSupporting international collaborations will be achieved by: NPRDI Subprogram 3.1 Bilateral NPRDI Subprogram 3.2 „Horizon 2020” NPRDI Subprogram 3.3 Supporting Romanian participation to European joint

programming initiatives (JPI). NPRDI Subprogram 3.4. Supporting Romanian participation to European joint

technological innitiatives (JTI/JU) NPRDI Subprogram 3.5 Other international and European programs and

initiatives

Projects with Romanian participation

(Number)197

250 300 340 340

Financing organizations supported

(Number)0

1 1 1 1

Horizon 2020 and other international 5 10 15 20

52

Measures Output Indicator Unit/Target Values

Output indicator (M.U.)

Target 2017

Target 2018

Target 2019

Target 2020

NPRDI Subprogram 3.6 Support NPRDI Subprogram 5.2. NPRDI Subprogram 5.3. OP Competitiveness – Action 1.1.3

progr. support centeres (Number)

0Agreements signed

(Number)12

14 16 16 16

Transnational participations (Number)

2828 28 28 28

M1.3.1.2 Dissemination and access to informationDisseminating research results and supporting access to information for Romanian researchers are supported through: OP Competitiveness PI-1a - Action 1.1.2 Scientific events supported from the state budget Supporting access to RDI literature

Implemented projects (Number)

02 4 5 6

Scientific events supported by the state budget (Number/year)

91

100 110 120 120

P1.4. RDI Institutions(1.4.1) Improving research results in Romania

M.1.4.1.1 Research in fields of strategic interest for Romania

PNCDI – Program 568 supports research in fields of strategic interest for Romania, for establishing and developing research institutions and competencies in those fields, so as to obtain valuable contributions for science, economy and society. The program aims at supporting the participation of Romanian research institutions to international institutions and programs, identifying research, technology and industrial niches at national, European and global level; using international RD resources by

Major projects supported

(Number/year)0

4 4 4 4

68 PNCDI, pg.24-28

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Measures Output Indicator Unit/Target Values

Output indicator (M.U.)

Target 2017

Target 2018

Target 2019

Target 2020

participating in joint European programs and organizations, to provide solutions to problems of strategic interest for Romania, obtaining visible scientific results etc.

This is complemented by the NUCLEU programs financing, as well as PNCDI – Subprogram 1.2 Institutional Performance, seeking to obtain the best value for the money invested in research, by concentrating resources to the top performing public RD organizations. This line of financing supports the implementation of the institutional development plans, as well as developing the capacity of public RD organizations for: capitalizing and disseminating research and research results; initiating and developing viable collaborations with partners; providing technical assistance and top level technological and scientific services in priority fields.

M.1.4.1.2 Support for high-level researchPNCDI - Program 469 ensured financing for Exploratory Research Projects, Frontier Complex Research Projects and ERC-Like research projects, aiming at developing fundamental research in the priority fields established by SNCDI 2020, increasing Romanian contribution to ERA, developing emerging themes; adopting international evaluation standards for fundamental research projects. The main types of financed projects are: fundamental research projects, advanced studies, frontier research projects, supporting scientific results with high applicative potential, complex frontier projects, exploratory workshops.

Complementary to this, PNCDI - Subprogram 1.2. Institutional Performance

Projects supported (Number/year)

010 10 10 10

69 http://old.uefiscdi.ro/articole/4475/P4Cercetare-fundamentala-si-de-frontiera.html

54

Measures Output Indicator Unit/Target Values

Output indicator (M.U.)

Target 2017

Target 2018

Target 2019

Target 2020

supports RDI activities in public RD organizations.

P2.1. Knowledge transfer(2.1.1) Increasing the number of SMEs accessing results and resources of RDI organizations for improving products and servicesM2.1.1 Knowledge transfer partnershipsKnowledge transfer partnerships, financed through OP Competitiveness PA1-1b – Action 1.2.3 , seeks to encourage interactions between RD&I institutions and university and the business environment, by supporting enterprises’ access to the expertise and facilities of the RD&I institutions. At the same time, this is a means to capitalize on the existing infrastructures and resources, which have been acquired, developed or modernized during the previous programming period and which can support the needs for innovation of enterprises. The projects envisaged under this line of financing are grouped under three categories: knowledge transfer, partnership actions and enterprises’ access to the facilities, installations and research equipment of the research organization in order to perform test or experiments necessary for the development of new or improved products/ technologies/ methods. In complementarity with OP Competitiveness, PNCDI Subprogram 2.2 facilitates technological transfer in support of competitiveness, by means of offices for connection with the industry and technological information centres. This will be complemented by PNCDI - Subprogram 2.1 through „Bridge Grants” (Knowledge transfer to the economic agent), Transfer to enterprise, Implementation to enterprise etc. Also PNCDI 2.2 facilitates knowledge transfer in support for competitiveness, by offices for linkages with the industry (OLIs) and technological information centres

Enterprises collaborating with public institutions (Numberr)

0

50 80 90 110

SMEs financed (Number)

432550 600 600 600

Tech Transfer entities (Number)

5656 60 70 80

M2.1.1.2 Supporting innovation clusters Supporting innovation clusters will be achieved through OP Competitiveness PA1 – 1a - Action 1.1.1 – type C projects, designed to encourage the common use of equipment, information and knowledge exchange, networking, dissemination of

Clusters supported (Number)

04 4 4 4

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Measures Output Indicator Unit/Target Values

Output indicator (M.U.)

Target 2017

Target 2018

Target 2019

Target 2020

information between enterprises and the other cluster members.Support for partnerships between RD&I institutions and enterprises will also be provided from the national budget, through PNCDI – Subprogram 2.1 by an array of interventions, among which Bridge grants, Transfer to enterprise, Implementation to economic agent, Technology platforms, Cluster development and management, competitions etc.

P2.2. Supporting private RDI investments(2.2.1) Increasing the participation of Romanian enterprises (particularly SMEs) in RDIM2.2.1.1 Implementing risk capital instruments for RDICredit instruments and risk capital measures in favour of innovative SMEs and RD entities which meet market demand, financed through OP Competitiveness PA1, 1b. Actiona 1.2.2

Enterprises supported (Number)

00 0 25 25

M2.2.1.2 Supporting enterprises demand for innovationSupporting enterprise demand for innovation will be done through RD projects under OP Competitiveness PA1-1b – Action 1.2.1 start-up/spin-off.

Start-ups / spin-offs created (Number)*

050 100 150 200

Patent requests (Number)*

0100 150 180 200

Enterprises introducing new

products / (Number)*0

100 150 200 270

Enterprises supported (Number)*

010 30 50 60

P3.1. RDI governance(3.1.1) Improving efficiency and effectivenessM.3.1.1.1 Evidence-based RDI policy Methodologies 0 1 1 1

56

Measures Output Indicator Unit/Target Values

Output indicator (M.U.)

Target 2017

Target 2018

Target 2019

Target 2020

Supporting the development and implementation of evidence-based public RDI policy will be achieved by:

- Developing the organizational and regulatory framework- Establishing the regional observatories network- Ensuring the proper function of the consultative bodies - Studies and analyses (via the sectoral plan)

(Number)0

Studies, analyses (Number)

02 3 4 9

Guidelines, instruments (Number)

00 1 1 2

Regional observatories established (Number)

08 8 8 8

M3.1.1.2 RDI system governanceThe governance of the national RDI system will be ensured through: Introducting integrated IT systems (SIPOCA 27)OP Competitiveness – Technical Assistance OP Technical AssistanceSupport programs for the development of the RDI system governance in Romania

Functional IT systems (Number)

00 0 1 1

National registries (Number)

00 0 1 4

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Annex 4: Institutional profile

Policies and strategies

Policies Strategies

EU State Aid Policy70

EU Industrial Policy71

EU Innovation Union Policy72

EU Cohesion Policy73

Europe 2020 Strategy74

European Semester75

Strategy for the public administration consolidation 2014-2020

National Competitiveness Strategy 2015-2020 (GD no.775/2015)76

National Strategy77 for RDI 2015-2020 (GD no. 929/2014)

National Plan for RDI 2015-202078 (GD no. HG 583/2015)

National Reform Plan79

Subordinate institutions and organizations

The national (public) RDI system is made up of national institutes for R&D, institutes of the Romanian Academy and universities. The Ministry of Research and Innovation is the governance structure, coordinating the majority of the institutions.

70 http://ec.europa.eu/competition/state_aid/overview/index_en.html 71 https://ec.europa.eu/growth/industry/policy/eu_en 72 http://ec.europa.eu/research/innovation-union/index_en.cfm 73 http://ec.europa.eu/regional_policy/index_en.cfm 74 https://ec.europa.eu/info/strategy/european-semester/framework/europe-2020-strategy_en 75 https://ec.europa.eu/info/strategy/european-semester_en76 http://legislatie.just.ro/Public/DetaliiDocumentAfis/171941 77 http://www.research.gov.ro/ro/articol/3978/politica-cdi-strategia-nationala-de-cercetare-dezvoltare-si-inovare-2014-2020 78 http://www.research.gov.ro/ro/articol/1434/programe-nationale 79 https://ec.europa.eu/info/publications/2016-european-semester-national-plan-romania_en

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Figure 6. Research and Innovation system in Romania

Source: A. Curaj, Stairway to Excellence Country Report: Romania (2015)

National consultative councils and colleges of MRI

# Name Financing1 Consultative College for RDI State budget2 National Council for Ethics in Technological RD and Innovation State budget3 National Council for Technological Transfer State budget4 National Council of Scientific Research State budget

Institutions in subordination of MRI

# Name Financing1 National Space Agency Own resources2 Institute of Atomic Physics Own resources

RDI, technological development and innovation institutions and units in MRI coordination

# Name Financing1 INCD for Plant Protection Bucharest Own resources

RDI, technological development and innovation institutions and units under the authority of MRI

# Name Financing1 INCERTRANS – Research Institute for Transport Own resources2 ICPROA - Own resources

Apart from these, there are 45 National institutes for research and development under MRI coordination.

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Organizational chart of the Ministry for Research and Innovation, as per GD 13/201780

80 http://www.research.gov.ro/uploads/minister/hg-13-2017.pdf

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INTERNAL ENVIRONMENT

The description of the internal environment refers to the presentation of public policy in the RDI sector and its governance structure. The national RDI system is defined by GO no. 57/2002.

RDI policy

The public policy is set out in the National RDI Strategy 2014-2020

The strategic objectives of NSRDI are as follows:

1. Increasing the competitiveness of the Romanian economy through innovation. The goal is to develop companies' ability to absorb state-of-the-art technology, adapt these technologies to the needs of serving markets, and develop technologies or services that enable them to progress on value chains.

2. Increasing the Romanian contribution to the progress of frontier knowledge. The strategy supports the increase of the international visibility of research and experimental development in Romania. The RDI activities at the frontier of knowledge imply the formation of a critical mass of researchers in the most promising areas, the maintenance of niche areas, international standards for research projects, and far-reaching scientific initiatives such as those developed around major infrastructures.

3. Increasing the role of science in society. Science and technology become relevant to society when their effects are felt in the everyday life of the citizens. The strategy aims to solve societal problems through innovative solutions.

By the National RDI Strategy 2014-2020, a number of priority fields were set:

1. Intelligent specialization priorities, involving the definition and consolidation of areas of high competence with real or potential comparative advantages that can make a significant contribution to GDP. These are:

- bio-economy;- Information and communication technology, space and security;- energy, environment and climate change;- eco-nano-technologies and advanced materials.

Intelligent specialization priorities have been established taking into account the potential of candidate areas to add economic value to research results and the existence of a critical mass of human and material resources as prerequisites for growth.

2. Priorities with public relevance, aimed at allocating resources in areas where research and technological development respond to concrete and pressing social needs.

- Health. In this area, research and experimental development have an essential contribution, influencing not only individual and general well-being, but also the economic prospects of a society.

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- Heritage and cultural identity. The domain covers a wide range of scientific research topics, from the social impact of science and technology, to the development of the education system consistent with the core objectives of the European Union.

- New and emerging technologies. The direction is geared towards the pre-commercial public acquisition of innovation, supporting the strategically relevant opportunities.

3. Fundamental research remains a priority within SN-CDI - including humanities and socio-economic disciplines - as a source for frontier and interdisciplinary research.

The RDI policy main lines of action are as follows:

- Capacity and performance of the CD & I system (institutions, staff, material base);- Stimulation of private investment in CD & I;- Participation in the European Research Area.

The main implementation tools of the strategy are:

1) National RDI Plan 2014-2020 (PNCDI III).2) Core programs dedicated to national research institutes.3) Competitiveness Operational Program - Priority Axis 1 Research, Technological Development

and Innovation for Business Support and Competitiveness 4) Fiscal Facilities for RDI5) Regional Operational Program 2014-2020 - Priority Axis 1 "Promoting Technological Transfer"

Programs of the Romanian Academy.

However, there are only instruments 1-3 and, in part, 4 in the decision-making area of MCI.

RDI policy - medium-term priorities

Current Goals of RDI Policy

1. Integrating R & D policy into the "competitiveness - innovation - RD" public policies policy and the adequate funding of the CD & I system.

2. Strategic monitoring and reorientation mechanisms based on factual evidence.

Direction of action specific to the current stage

Priority: Putting business entrepreneurial processes into operation to maximize the role of CD & I on value chains. RDI provides the company's sustainable competitive advantage with a positive influence on sectoral and national economic competitiveness. Certain decisions (eg on "targeted" competitions) should be replaced by entrepreneurial decisions on the timeliness and timeliness of launching a business.

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SWOT Analysis

Sector / Organization Strong points Weak points

RDI The existence of sectors with competitive potential

Existence of major projects of European interest and their funding commitments

Possibility to use the infrastructures developed during the 2007-2013 programming period

The existence of a new cohort of young doctoral students

Budget-based approach The availability of European

funds, both for the public and for the private sector

Existence of tax benefits for RDI

Lack of predictability of funding Under-funding of the RDI sector Lack of interest for collaborative RDI

projects from the private environment Lack of human resources, due to lack of

career attractiveness in the CDI field Lack of private investment in RDI Insufficient development of competitive

economic agglomerations at regional / local level

Unattractive business infrastructure

RDI governance Poor coordination mechanisms Regulatory and funding framework that

requires improvementOverall administrative capacity

The experience of the 2007-2013 funding cycle

Continuity of strategic programming

Organizational instability Human resources shortage

Sector / Organization Opportunities Probability

RDI Developing sectors with competitive potential Medium

Attracting foreign investment Medium

Absorption of EU funds Big

Overall administrative capacity

Amendments to the regulatory framework on the remuneration of publicly funded staff and the hiring of project- based staff

Big

European-funded projects to attract specialized human resources

Big

Sector / Organization Threat Probability Impact

RDI Lack or decrease of funding for RDI Big Big

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Sector / Organization Threat Probability Impact

Elimination of tax advantages for RDI Medium Big

RDI governance Lack of political will to improve the governance system

Medium Big

Political involvement in managerial structures

Big Big

Overall administrative capacity

Persistence of organizational instability Big Big

Inefficient collaboration with the other institutions and authorities involved in the implementation of RDI public policies

Big Big

PESTLE Analysis

Factor Impact Probability Implications

Measures to reduce / eliminate risks

Measures to capitalize on opportunities

POLITICAL FACTORS (P)

A democratic state with solid and stable principles

Positive Big Attractive environment for RDI

Promoting the advantages that Romania has in terms of RDI activities

Frequent political changes at government level

Negative Big The uncertainty of strategic directions, the prolongation of decision-making processes, unfocused efforts

Transparent political assumption of national priorities

Multi-annual budget on programs

The interest of the main political forces towards the support of RDI

Positive Big Suitable conditions for implementing SNCDI / PNCDI 2014-2020

Ensuring optimal funding for the sector, in line with the commitments made at national and European level

ECONOMIC FACTORS (E)

Financial instability / crisis, against the backdrop of unsustainable growth, lower revenues collected to the state budget and rising public spending (repeating

Negative Medium Reduced RDI fundingDelay / abandonment of ongoing projects

Cancelling private investment in RDI

Avoiding pro-cyclical measuresLimiting measures with a potential negative impact on the business environment (eg raising the minimum wage)Improve the collection of revenues

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Factor Impact Probability Implications

Measures to reduce / eliminate risks

Measures to capitalize on opportunities

the 2008 scenario) to the state budgetCompliance with the agreed fiscal and budgetary framework and prudentiality rules.

High costs and risk associated with RDI activities

Negative Big Lack of private investment in RDI

Implement measures to support private investment in RDI, including venture capital

SOCIAL FACTORS (S)

Continuing „brain drain” Negative Big Lack of human resources in RDI

Implementing measures to increase career attractiveness in the field of RDI

Attracting the cohort of young doctoral students to the a career in RDI

Positive Small Lack of human resources in RDI

Implementing measures to increase career attractiveness in the field of RDI

TECHNOLOGICAL FACTORS (T)

Using the infrastructure developed through EU funding 2007-2013

Positive Medium Increase in CDI production

Implementing measures to support RDI activities in already developed / upgraded centers

Carrying out major RDI projects

Positive Big Increase in CDI production

Securing funding

Developing of IT systems to ensure the governance of the RDI system

Positive Big Improving the efficiency and quality of RDI

Securing funding

LEGAL FACTORS (L)

The instability and complexity of the regulatory framework

Negative Big Heady and rigid normative framework with numerous interconnected acts, contradictions and blurring; Generates uncertainty in high

Continuing the process of de-bureaucracy

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Factor Impact Probability Implications

Measures to reduce / eliminate risks

Measures to capitalize on opportunities

administrative costs

Changes in the regulatory framework regarding the remuneration of publicly funded staff and the hiring of temporary staff in projects

Positive Big Increased administrative capacity Motivated personnel

Supporting and accelerating the adoption of the envisaged measures

ENVIRONMENTAL FACTORS (E)

Orientation of industry and economy to green technologies

Positive Big Rising demand for RDI in the field

Implementation of measures to increase private investment in RDI and private R & D demand

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Competența face diferența!Proiect selectat în cadrul Programului Operațional Capacitate Administrativă, cofinanțat de Uniunea

Europeană din Fondul Social EuropeanCompetence makes a difference!

Project selected under the Administrative Capacity Operational Program, co-financed by European Union from the European Social Fund

67