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Advisory Services Agreement on

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

Output No. 5Institutional Strategic Plan 2018-2021 for the Ministry for Research and Innovation

July 2018

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

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. 5 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, except for representatives of the national authority for research and development or representatives of other organizations empowered by it.

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...................................................................................................................................5List of tables....................................................................................................................................5List of boxes....................................................................................................................................5Foreword........................................................................................................................................7Executive summary.........................................................................................................................8I. Context....................................................................................................................................9II. Mission and Vision.................................................................................................................16III. Strategic Objectives, Programmes, Measures, Indicators..........................................................17

Strategic Objective 1. Developing the capacity for scientific research and dissemination of research results...............................................................................................................................................17Strategic Objective 2. Increasing economic competitiveness through innovation.........................................................................................................................................................26Strategic Objective 3. Improving administrative capacity..........................................31

IV. Performance Monitoring and Evaluation System......................................................................35V. Financial Resources...................................................................................................................37Annex 1a: Budgetary Objectives and Programmes 2018-2021 (thousand lei).................................39Annex 1b: Programmes, Measures, and related Budgets 2018-2021 (thousand RON).....................40Annex 2: Institutional Strategic Plan (summary table)....................................................................42Annex 3: Programs and connected Measures, Output Indicators (Summary Table)........................44Annex 4: Institutional profile.........................................................................................................63Annex 5 Legislative proposals in the Annual Government Working Plan submitted by the Ministry of Research and Innovation for 2018.............................................................................................73

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List of Acronyms

AGWP Annual Government Working PlanBERD Total annual investment in R&D of enterprises CERN European Organization for Nuclear ResearchCOP Competitiveness Operational Programme 2014-2020EIF European Investment FundELI-NP Extreme Light Infrastructure – Nuclear Physics ERA 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 UnionFTE Full-time equivalent (researchers)G(E)O Government (Emergency) OrdinanceGD Government DecisionGDP Gross Domestic ProductGoR Government of RomaniaGSG General Secretariat of the GovernmentIFA Institute of Atomic PhysicsINCD National Research and Development InstituteIPR Intellectual Property RightsISP Institutional Strategic PlanMRI Ministry for Research and InnovationNP2 / NP3 National Plan for Research, Development and Innovation, 2007-2013 / 2015-2020NSA National Space AgencyOPAC Operational Program Administrative Capacity 2014-2020PA Priority Axis PNCDI National Plan for Research, Development and Innovation 2015-2020RAS Reimbursable Advisory ServicesRCRI Romanian Committee on Research Infrastructures R&D Research and developmentRDI Research, development and innovationRDIs Research and Development InstitutesR&I Research and innovationSME 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, Thomson Reuters database (2005-2014)..........................................................................................................................................13Figure 5. Positional analysis of publications with Romanian authors, SCOPUS (2016)........................14Figure 6. Monitoring Cycle of the Institutional Strategic Plan 2018-2021............................................36Figure 7. Research and Innovation system in Romania........................................................................64

List of tables

Table 1. Strategic Objective 1: Financial allocations by budgetary programmes (thousand lei)...........19Table 2. Measures included in Program 1.1.........................................................................................21

Table 3. Measures included in Program 1.2.........................................................................................22Table 4. Measures included in Program 1.3.........................................................................................24

Table 5. Measures included in Program 1.4.........................................................................................25Table 6. Strategic Objective 2: Financial allocations by budgetary programmes (thousand lei)...........28

Table 7. Measures included in Program 2.1.........................................................................................29Table 8. Measures included in Program 2.2.........................................................................................30

Table 9. Strategic Objective 3: Financial allocations by budgetary programmes (thousand lei)...........32Table 10. Measures included in Program 3.1.......................................................................................34

Table 11 Annual financial allocations, by strategic objectives (thousand lei).......................................37Table 12. Financial allocation, by expenditure (thousand lei)..............................................................38

List of boxes

Box 1. Strategic Objective 1: Impact and result indicators...................................................................18

Box 2. Strategic Objective 2: Impact and result indicators...................................................................27Box 3. Strategic Objective 3: Impact and result indicators...................................................................32

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Acknowledgments

The Institutional Strategic Plan is the result of the work performed by the staff of the Ministry for Research and Innovation, with the support of the World Bank team (Elena Botezatu, Mihai Vilnoiu). The team benefited from solid methodological guidance from Costel Todor, as strategic planning senior expert, as well as from valuable contributions from Arabela Sena Aprahamian (senior specialist private sector development, World Bank) and Mădălina Prună (private sector specialist, World Bank).

The authors give special thanks to Nicolae Burnete (Minister), as well as to the management of the directions of the Ministry for Research and Innovation, for outstanding involvement and contributions.

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 Note, in particular to Secretary of State Oana-Elena Pintilei, 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.

As well, the team would like to thank Lalita Moorty (Practice Manager, Fiscal and Macroeconomic Management), Tatiana Proskuryakova (Country Manager Romania) and Cătălin Păuna (TTL, Chief Economist, World Bank) for their overall coordination. At the same time, the team thanks Brigita Orzan (expert, World Bank) for her constant support.

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Foreword

Background

In line with the central government reform objectives, the General Secretariat of the Government (GSG), with the support of the World Bank, is conducting a comprehensive project in order to strengthen the planning, budgeting and policy monitoring capacity at the Center of Government, the Ministry of Public Finance (MPF) and selected ministries.

The Reimbursable Advisory Services (RAS) agreement aims to: i) Continue to consolidate existing processes for the development of Institutional Strategic Plans for the selected ministries (ISPs) under the guidance of the GSG; ii) Develop the intra-governmental capacity to monitor the implementation of ISPs through a joint IT tool; and iii) develop a “dashboard” within the GSG for reporting on the implementation of major priorities of the ministries, based on the institutional strategic plans.

The defined activities stem from the functional analyzes which were carried out at the level of the central public administration and which show that there is a weak link and a low traceability at the public sector level between the resources used and the results obtained. This makes it necessary to build a closer link between the planning and the budgeting components. As a result, the aim is to institutionalize a process of monitoring the implementation of public policies, with clearly defined roles and responsibilities for GSC, MPF and line ministries through the use of methodologies, tools and processes developed with the support of the World Bank. This will be an integral part of the budgetary reforms promoted at the public administration level.

As selected line ministry and state authority in the R&D field, the Ministry for Research and Innovation has committed itself to carrying out a comprehensive reform program, in which the strengthening of the strategic planning function represents a key component.

Methodology

The elaboration of the ISP began in September 2016. A first version of the document was finalized in June 2017, and the planning process continued between December 2017 and March 2018. This document is an updated version of the ISP, reflecting the priorities and the implementation framework for 2018 and including a set of estimates for the period 2019-2021.

Throughout the process, all the relevant management and operational staff within the ministry, as well as the GSG specialists have shown a substantial commitment.

The Strategic Planning Process within the Ministry was supervised by a Strategic Planning Coordination Committee, with representatives from all departments. The Working Group met as deemed necessary between September 2016 and March 2018.

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, December 2017 and February 2018 in order to present the principles and instruments used in the strategic planning.

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Executive summary

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 2018-2021 represents a review of the plan developed for the period 2017-2020 and continues the institutional objectives assumed in the field of scientific research, development and innovation; it also presents 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 targets. The ISP is organized around the main areas under the responsibility of the Ministry for Research and Innovation (MRI) as state authority in the field of research and innovation, 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 estimated results, programs and expected outcomes and planned measures correlated with the financial resources and their distribution over the implementation period 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 a result of the international financial crisis of 2008, economic growth has been, and continues to be, a primary goal of governmental strategies, both at the level of the European Union and internationally. Considering that in the new context of global competitiveness, technological progress is recognized as one of the key elements of sustainable economic development, R&D and innovation (RDI) is a focal point in this equation.

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 programs, 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 one of poor performance, with low-knowledge intensity, benefiting from limited public and private resources, and with low impact at world level.

A number of evaluations have emphasized more or less the same recurring challenges: The 2011 Functional Review by the WB highlighted that Romania’s RDI 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, all fields seem to be covered in what seems to be an “excerpt from canonical works on innovation”3 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 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 .

9

http://fmmc.ro/uploads/poze/files/MTE_National_Strategy_Plan_Report_RO_120213.pdf

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

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

A 2013 evaluation report by UEFISCDI financed under SOP IAC4 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.

For the 2014-2020 period, the programming documents are the National Strategy for Research, Technological Development and Innovation 2014-2020 approved by GD 929/2014, the National Plan for Research, Development and Innovation for the period 2015-2020 (PNCDI III), approved by GD 583/2015, together with the new Competitiveness Operational Programme, which ensures the funding framework of the European Structural and Investment Funds. 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 behavior 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 underutilized research infrastructures and series of PhD students without real research career prospects. At the same time, it is important to mention that Romania has one of the largest scientific diaspora among the EU countries.

Despite the concerted efforts of key RDI decision makers, the RDI performance is well below expectations and expected results. The latest EC Reports5 still place 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 the low share in the GDP expenditure for research development: 0.48% in 2011, 0.49% in 2012, 0.39%, of which 0.27% in the public sector and 0.12% in the private sector in 2013, 0.38%, of which 0.22% in the public sector and 0.16% in the private sector in 2014, whereas in 2016, R&D expenditure accounted for 0.48% in the GDP (0.21% of GDP 6 – the public sector and 0.27% of GDP – the private sector), registering a decrease compared to 2015 by 0.01% on total expenditures—0.06% in the public sector spending and a rise by 0.05% in the private sector, against the R&D target assumed by Romania through the National Reform Program (Government Memo 1801/2010) of 2% of the GDP for R&D investments by 2020, following the scheme of 1% in public funds and 1% in private funds.

Against this background, the target of 2% of the GDP assumed by Romania for RDI spending under the Europe 2020 Strategy is most likely impossible to achieve, given the current pace.

4 Evaluation Report regarding the governance of the RDI 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 . 5 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 . 6 Provisional data published by the National Statistics Institute in the Press release no. 295 / 16 of November 2017 on R&D activity in 2016.

10

http://ec.europa.eu/DocsRoom/documents/17822

http://ec.europa.eu/europe2020/pdf/themes/2016/research_innovation_201605.pdf

http://www.incd2020.ro/sites/default/files/Raport%20de%20evaluare%20a%20guvernantei%20sistemului%20public%20de%20CDI%20din%20Romania%202007-2013.pdf

http://www.incd2020.ro/sites/default/files/Raport%20de%20evaluare%20a%20guvernantei%20sistemului%20public%20de%20CDI%20din%20Romania%202007-2013.pdf

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

In 2017, Romania become the 42nd among the 128 countries included in the Global Innovation Index8, which represents a six-position advance compared to 2016, when it occupied the 48th position. This progress is noted by the introduction of Romania in the section showing the highest density of inventors found in international patent requests, called “invention hotspots”, where Romania obtained a score of 39.2 on a scale from 0 to 1009. Romania is also among the top 10 upper middle-income countries with respect to innovation efficiency.

Since in Romania, RDI is mainly funded from public resources, the participation of universities and public research institutes and their performance in the world scientific system is central to ensuring a positive evaluation of the system as a whole. However, international classifications describe a system with modest scientific performance.

Regarding Romania's position in the European Innovation Scoreboard10 (EIS) system, although some indicators show an improvement, the general trend is to decrease performance. For example, while the proportion of doctoral graduates per 1,000 inhabitants and scientific co-publications have had a positive trend, while investment, venture capital financing, innovative local SMEs and collaboration indicators have worsened.

7 http://ec.europa.eu/research/innovation-union/pdf/state-of-the-union/2014/countries/romania.pdf 8 https://www.globalinnovationindex.org. 9 Website MRI: www.research.gov.ro (press release).10 Available at: http://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards/

11

http://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards/

http://www.research.gov.ro/

https://www.globalinnovationindex.org/

http://ec.europa.eu/research/innovation-union/pdf/state-of-the-union/2014/countries/romania.pdf

Figure 2. Evolution of Romanian innovation benchmark indicators, 2018

Source: 2018 European Innovation Scoreboard, Romania

12

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

Source: EU Innovation Scoreboard 201711

In most areas, Romania's contribution is modest, both in terms of volume and impact. Only two fields, Physics and Mathematics, have good results both in terms of the number of citations and the number of works done. Space has a large number of citations, but has modest contributions overall at the global level, while Materials Science, Ecology, Chemistry, Economics and Business have a relatively large volume, but low impact.

Figure 4. Positional analysis of publications with Romanian authors, Thomson Reuters database (2005-2014)

Source: Bibliometric Analysis of Romania’s Research Output, 2005-2014, UEFISCDI 201512

11 Available at: http://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards. 12 http://old.uefiscdi.ro/userfiles/file/scientometrie/1%20Raport%20Bibliometric%20.pdf.

13

http://old.uefiscdi.ro/userfiles/file/scientometrie/1%20Raport%20Bibliometric%20.pdf

http://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards

Figure 5. Positional analysis of publications with Romanian authors, SCOPUS (2016)

Source: SCIMAGO Journal and Country Ranking13

Key indicators14 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 EU 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.The RDI system remains fragmented and highly polarized, its results being limited to a few number of actors. Attempts to implement various institutional evaluation mechanisms have been subject to major debates, and the implications of classification on the funding remain uncertain. The high degree of fragmentation and polarization of the public research system affects its effectiveness and amplifies to a great extent the consequences of insufficient funding. Taken individually, research organizations offer different degrees of transparency; however, the overall degree of transparency is low, being affected by some of the current regulatory frameworks.15

Although the RDI Strategy 2014-2020 provides for improved mechanisms, its implementation process remains open to evaluation. The SIPOCA project carried out by MRI under the Operational Programme for

13 http://www.scimagojr.com/mapgen.php?maptype=bc&country=RO&y=citasxitem . 14 See Research and Innovation performance in the EU. Innovation Union progress at country level, p. 24715 Rio Country Report 2016.

14

http://www.scimagojr.com/mapgen.php?maptype=bc&country=RO&y=citasxitem

Administrative Capacity Development should provide for an evaluation methodology and the results achieved at the mid-term evaluation, which is foreseen for 2018.For the 2017-2020 period, the strategic and financing framework of RDI is clearly set. As noted by the 2015 Rio Country Report Romania16, “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 or absent.” A more limited number of priority sectors17 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 RDI and economic growth. Nonetheless, underfinancing18, as well as little focus on improving administrative capacity and governance seem to remain the chronic challenges affecting performance. It is to be expected that the process of updating the strategic and financial framework for the next programming cycle (2021-2028) will be carried out in 2019 and, above all, in 2020. Until 2023 inclusive, interventions funded by European funds will be supported through the Competitiveness OP 2014-2020.

16 Available at: https://rio.jrc.ec.europa.eu/en/library/rio-country-report-romania-2015 . 17 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.18 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

15

http://gov.ro/en/government/cabinet-meeting/the-budget-for-2017-approved-by-the-government

http://gov.ro/en/government/cabinet-meeting/the-budget-for-2017-approved-by-the-government

https://rio.jrc.ec.europa.eu/en/library/rio-country-report-romania-2015

II.Mission and Vision

The Ministry of Research and Innovation coordinates the implementation of the National RDI Strategy and the Government Program19 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”.20

Drawing upon the mandate established by law21 the Mission of the Ministry for Research and Innovation is to coordinate and lead the Romanian RDI system, exercising its attributions established by law and other normative acts in its field of activity, and, as appropriate, carry out governmental policy in their fields of activity, together with line ministries.In line with the strategic vision regarding the RDI sector in Romania, as stated in the NSDRI 2014-2020 22, the vision of the Ministry for Research and Innovation is that ”In 2020, Romania becomes globally and regionally competitive through innovation, fueled 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 through increased efficiency of RDI processes and high-quality products; (2) The RDI sector develops around a number of strategic areas of smart specialization, is integrated internationally and offers an attractive environment for the members of the global scientific community; (3) Breakthroughs in strategic areas, such as: bio-economy; information and communication technology, space and security; eco-nanotechnologies and advanced materials. Thus, at the national level, the RDI is at the center of the reform of some important sectors and becomes the vector of the national re-industrialization policy23 by focusing on competitiveness clusters, as well as the key factor for the modernization of the Romanian agriculture by optimizing food products and developing the eco-nanotechnology that preserves the properties of water, air and soil.International competitiveness is based on excellence research at European and international level by supporting pan-European infrastructure projects and interdisciplinary research centers, such as DANUBIUS-RI, ELI-NP and ALFRED. 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 inter-institutional collaboration and improved governance and better correlation in terms of policy implementation in relation to education and labor market.While the cross-cutting nature of RDI is pivotal in determining future directions, a sectoral approach is also envisaged with 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

19 http://gov.ro/ro/obiective/programul-de-guvernare, pg. 41-43. 20 The mandate is based on GF 13/2017 regarding the organization and functioning of the MRI.21 GD no. 13/2017.22https://www.edu.ro/sites/default/files/_fi%C8%99iere/Minister/2016/strategii/strategia-cdi-2020_-proiect-hg.pdf , p.1023 Government Program 2018-2020, pg.7.

16

https://www.edu.ro/sites/default/files/_fi%C8%99iere/Minister/2016/strategii/strategia-cdi-2020_-proiect-hg.pdf

http://gov.ro/ro/obiective/programul-de-guvernare

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 research24.

24 Based on RDI Strategy 2014-2020, pg.7.17

III. Strategic Objectives, Programmes, Measures, Indicators

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

Taking into consideration the 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-RI, 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 level25, 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 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.

25 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

18

http://gov.ro/fisiere/pagini_fisiere/Programul_de_guvernare_2017-2020.pdf

Box 1: Strategic Objective 1. Impact and result indicators

19

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

Programme 1.1Physical Infrastructure

for RDI

Measures of Programme 1.1

M1.1.1.1 Financing infrastructure projects

of European importance

M1.1.1.2 Financing RDI infrastructures for public RDI institutions

Programme 1.2Human resources for

RDI


M1.2.1.1 Preparing young researchers M1.2.1.2 Attracting

high-skilled researchers from

abroad in the public RDI organizations

Programme 1.3Internationalization


M1.3.1.1 Support for international

collaborationsM1.3.1.2

Dissemination and access to information

Programme 1.4RDI Institutions


M.1.4.1.1 Research in fields of strategic

interest for RomaniaM.1.4.1.2 Institutional

support

Increasing the quantity and quality of research output, as well as the international exposure of Romanian research: (1) 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 6% in 2021, compared to 5.1% in 2015 (EIS); (2) the number of international scientific co-publications (no./1 mil. Inhabitants) will increase from 182.5 in 2016 to 220 in 2021 (EIS); (3) the number of researchers (FTE) will increase from 18.046 in 2016 to 18.400 in 2021 (NIS).

Impact

(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 2021 (OP Competitiveness)(1.2.1.) Increasing the number of researchers: The number of new researchers (FTE) in the supported entities will reach 627 in 2021 (OP Competitiveness)(1.3.1.) Increased participation in international projects: The number of international partnerships under Horizon 2020 will reach 400 in 2021, compared to the baseline of 200 in 2016 (CORDIS)(1.4.1.) Increasing the output and quality of Romanian research: The number of ISI research publications will reach 60 (MRI)

Programme Results

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

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

2018 2019 2020 2021

Program 1.1: Physical infrastructure for RDI 429,464.84 468,268.84 200,000.00 200,000.00

Program 1.2: Human resources for RDI 205,241.91 222,841.91 222,841.91 50,000.00

Program 1.3: Internationalization 119,400.00 201,700.00 172,100.00 172,100.00

Program 1.4: RDI Institutions 517,406.00 446,253.00 598,406.00 587,000.00

TOTAL SO1 1,271,512.74 1,339,063.74 1,193,347.91 1,009,100.00

Program 1.1. Physical infrastructure for RDI

Rationale. SNCDI 2014-2020 promotes the services provided by existing infrastructures and encourages new investments through a) supporting major projects and large public RDI infrastructure, creating new infrastructures (laboratories, research centers, etc.) and b) supporting the development of pan-European infrastructure research in Romania (ESFRI).

As a result of a significant flow of resources in the period 2007-2013, there are currently approximately 1,200 research facilities registered in the ERRIS – the Romanian Research Infrastructure Register, to which approximately 7,000 research services and almost 19,000 equipment articles are associated. 26 Of the 1,200 registered research facilities, only 120 are private. At the same time, not all of these facilities can be considered research infrastructures as they are defined and used in practice, some of them being in practice equipment items. ERRIS shows however that there is a very large stock of high-value and high-potential scientific equipment in Romania.

On the other hand, there are signs that the exploitation of equipment or research infrastructures is suboptimal, either due to the lack of personnel qualified for using them or to the lack of a technical and support infrastructure (e.g. electricity consumption not being supported by the network of the building). These issues are highlighted in the Roadmap on priorities for the development of research infrastructures, updated by MRI in 2017.

The main challenges related to the current financial framework are therefore the following:

a) Ensuring adequate use of existing infrastructure

b) Increasing its 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 2021:

(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 2021, as a result

of the implementation of the programme.

26 http://sipoca27.ro/wp-content/uploads/2018/02/Situatia-infrastucturilor-existente.pdf 20

http://sipoca27.ro/wp-content/uploads/2018/02/Situatia-infrastucturilor-existente.pdf

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

M1.1.1.1. Financing major European infrastructure projects refers to supporting the development of large, open pan-European research infrastructures (ESFRI) in Romania. The financing of these investments is ensured by:

- ESI funds: Competitiveness OP 2014-2020, IP-1a, Action 1.1.1 Large R&D infrastructures, type of projects: ELI-NP, DANUBIUS-RI and approved projects in the national Roadmap on research infrastructures.

- National funds: PNCDI’s Subprogram 5.4. Research, development and innovation program for river-delta-maritime systems (DANUBIUS).

M1.1.1.2. Financing RDI infrastructures for public RDI institutions refers to the development and arrangement of new laboratories or research centers or to the modernization of new research institutions and public universities. The financing of these investments is ensured through:

- ESI funds: Competitiveness OP, IP-1a, Action 1.1.1 Large R&D infrastructures; project type: Investment projects for R&D public institutions / universities; Objective: to increase R&D capacity in the domains identified within SNCDI as being a priority for smart specializations and health.

- National Funds: PNCDI’s Subprogram 1.3. R&D Infrastructures and the Financing Program for National Interest Research Facilities, which provides financing to cover the costs of maintenance, operation and security for the 29 facilities and special objectives of national interest.

According to PNCDI, investments should target priority sectors, particularly the best performing research organizations, so as to optimize investments in R&D equipment and favor revenue generation from their utilization. The main types of financed projects include: investment in R&D infrastructure (of regional, national, pan-European interest); investments in R&D projects complementary to those present locally; projects regarding the integration or connection of local networks to similar / complementary R&D international infrastructures. Stimulating the creation and development of innovation clusters around large infrastructures, as well as maintaining and developing the National Registry of R&D Infrastructures is also envisaged under this measure.

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

- Increased public funding for RDI, according to the needs estimated in the SNCDI/PNCDI 2015-2020;- 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

(R1.1.1) Increasing the capacity utilization rate of the research facilities

M1.1.1.1 Financing infrastructure projects of European importance

21


P1.2. Human resources for RDI

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, 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 students27 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 2021:

(1.2.1.) Increasing the number of researchers:

o The number of new researchers (FTE) in the supported entities will reach 627 in 202128.

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.

M.1.2.1.1 Preparing young researchers aims at increasing the number and quality of human resources in R&D activities in priority sectors. The objectives of the subprogram are related to increasing the number of researchers and preparing new generations, boosting the attractiveness of careers in research, improving the performance of the group, creating and updating the National Register of Researchers. The financing of these investments is ensured by:

- National Funds: PNCDI’s Subprogram 1.1. Human Resources, aimed at increasing the number and quality of human resources in R&D activities in priority sectors. The main types of projects funded under this measure are: doctoral and post-doctoral research projects, including PhD studies; Research projects to stimulate young independent teams; complex reintegration programs for researchers from the diaspora (young and experienced); scholarship for young researchers; rewards for research results (articles), research scholarships ("Stefan Odobleja", "Spiru Haret").

M1.2.1.2. Attracting highly-skilled researchers from abroad in the public RDI organizations and developing the concept of “brain return” 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. The financing of these investments is ensured by:

- ESI Funds: Competitiveness OP, PA1-1a, Action 1.1.4. Attracting staff with advanced skills 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 RDI capacity for preparing the participation to Horizon 2020 and will concentrate on the four plus one priority sectors established by the SNCDI.


27 Through EU funding (ESF), Sectoral Operational Programme Development of Human Resources 2007-2013.28 OP Competitiveness indicators and targets.

22

- Increased public funding for RDI, according to the established targets;- Absorption of the available EU funds;- Strengthening the collaboration mechanisms between MRI and the other line ministries, especially the

Ministry of Education.



(R1.2.1) Increasing the number of researchers

M1.2.1.1 Preparing young 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 projects

o 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. These two measures comprise a variety of complementary actions, as shown below.

M1.3.1.1 Support for international collaborations refers to supporting a wide range of interventions, including: supporting participation to different types of “Horizon 2020” projects and rewarding the

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

23

http://ec.europa.eu/research/innovation-union/index_en.cfm?pg=eip

http://ec.europa.eu/research/jti/index_en.cfm

http://ec.europa.eu/research/era/joint-programming-initiatives_en.html

institutional participation to these projects, encouraging synergies between “Horizon 2020” and other international RDI programs, increasing the visibility of Romanian research by participating in international research programs and organizations, integrating Romanian research into the European research area, improving bilateral and multilateral cooperation in the field of scientific research. The financing of these interventions is ensured by:

- ESI Funds: COP IP-1a, Action 1.1.3. Creating synergies with RDI actions of the EU's Horizon 2020 framework program and other international RDI programs

- National funds:o PNCDI Subprogram 3.1. Bilateralo PNCDI Subprogram 3.2. "Horizon 2020"o PNCDI Subprogram 3.3. Supporting Romanian participation in JPI,o PNCDI Subprogram 3.4. Supporting JTI / JU participationo PNCDI Subprogram 3.5 Other European and international initiatives and programso PNCDI Subprogram 3.6. Supporto PNCDI Subprogram 5.2. Participation in international research bodies and programs (includes

participation fees)o PNCDI Subprogram 5.3. RDI Program for space technology and advanced research - STAR.

M1.3.1.2 Dissemination and access to information refers to ensuring access to international databases for Romanian researchers, building networks of R&D centers that are coordinated at national level and connected to European and international networks, and supporting participation to scientific events and RDI literature. Funding of interventions under this measure is ensured by:

- ESI Funds: Competitiveness OP, IP-1a, Action 1.1.2. Building networks of R&D centers, coordinated at national level and connected to European and international networks, and providing researchers with access to scientific publications and European and international databases; type of projects: CLOUD and big data infrastructures; ANELIS PLUS; RoEduNet

- National funds: PNCDI - Scientific events subsidized from the state budget, Subsidies for RDI literature.

Access to international databases has proven to be essential for improving research results and, as a consequence, the new resources will aim to ensure further access to information and documentation sources, creating a virtual campus and a national resource pool, promoting free access to scientific publications and providing mobile access to resources.Developing networks of RD centres 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 aim is to improve (virtual) access to scientific publications and databases. 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 RoEduNet 32 (single project), high-speed connections to EU infrastructure; migration to high-speed connections; ensuring access to international scientific literature (single project, by ANELIS-PLUS33). 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.


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

32 https://www.roedu.net/ 33 http://www.anelisplus.ro/

24

http://www.anelisplus.ro/

https://www.roedu.net/

- Absorption of the available EU funds; - Government support for increasing the international exposure of Romanian research;- 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



(R1.3.1) Increased participation in international projects

M1.3.1.1 Support for international collaborations

M1.3.1.2 Dissemination and access to information

P1.4. RDI institutions

Rationale. 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:

The number of ISI listed Romanian journals will increase from 56 to 60 by 2021.

Description. Program 1.4 aims at supporting fundamental and exploratory research, following the principles established by SNCDI in respect to competition based-financing and bottom-up definition of research themes. M.1.4.1.1 Research in areas of strategic interest for Romania refers to supporting research institutions and competences in these fields, in order to obtain contributions that are valuable for science, economy and society. The interventions aim at supporting the participation of Romanian research institutions in international institutions and programs, identifying research, technology and industry niches at national, European and global level; the use of international R&D resources through participation in joint European programs and organizations, in order to provide solutions to issues of strategic interest for Romania, the achievement of visible scientific results, etc.At the same time, the purpose is to maximize the results obtained from research investments by concentrating resources towards the most performing public R&D organizations. The implementation of institutional development plans, together with capacity building for public R&D organizations are aimed at: harnessing and disseminating knowledge and research results; initiating and developing viable collaborations with partners; providing technical assistance and high-tech technological and scientific services in priority areas.

25

The main types of projects funded are: fundamental research projects, advanced studies, frontier research projects, support of scientific results with high applicative potential, complex border projects, exploratory workshops.Funding is provided by:

- National funds:o PNCDI - Program 4, Fundamental and Frontier Research to maintain and develop niche areas where

Romanian fundamental research has comparative advantageo PNCDI’s Program 5. Research in areas of strategic interest, which is a support-program led by

institutions with a role of scientific coordination in areas of strategic interest.

M.1.4.1.2 Institutional support through complementary funding refers to the establishment and development of research institutions and competences that could be supported financially. The interventions aim at adopting international evaluation standards, supporting the participation of Romanian research institutions in international institutions and programs, identifying research, technology and industry niches at national, European and global level; the use of international CD resources through participation in joint European programs and organizations in order to provide solutions to issues of strategic interest for Romania, the achievement of visible scientific results, etc.Implementation of institutional development plans, as well as capacity building for public R & D organizations to target and disseminate the knowledge and results of research; initiating and developing viable collaborations with partners; the provision of technical assistance and high-tech technological and scientific services in priority areas.Funding is provided by:o Nucleus Programso Complementary financing instruments (PNCDI – Program 1.4 – Institutional Performance)

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.



(R1.4.1) Improving research results in Romania

M.1.4.1.1 Research in fields of strategic interest for Romania

M.1.4.1.2 Institutional Support

26

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 favorable 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.

To this end, the National RDI Strategy 2014-2020 sets targets for stimulating the business sector and increasing the economic impact, with a focus on areas of smart specialization, while the Competitiveness OP 2014-2020 provides for specific financial instruments, such as loans, guarantees and measures with respect to venture capital.

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 in the frame of a sustainable economic growth. Improvements have also been made in terms of fiscal and regulatory environment.

Economic growth can be seen as the result of innovative activities, skilled workforce and research productivity. These models suggest that investment in R&D leads to innovation and technological development thanks to human capital and knowledge accumulation.

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.” 34

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.” 35

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.

34 Available at: http://ec.europa.eu/DocsRoom/documents/17853 . 35As noted in the RIO 2020 – Country Report, available at: https://rio.jrc.ec.europa.eu/en/country-analysis/Romania/country-report

27

https://rio.jrc.ec.europa.eu/en/country-analysis/Romania/country-report


Box 2. Strategic Objective 2: Impact and result indicators

28

SO2. Increasing economic competitiveness through innovation

Programme 2.1 Knowledge transfer

Measures of Programme 2.1M2.1.1.1 Knowledge transfer

partnershipsM.2.1.1.2 Support for innovation

clusters

Programme 2.2 Supporting private RDI investments

Măsurile Programului 2.2M2.2.1.1 Implementation of risk

capital instruments for RDI M2.2.1.2 Supporting enterprises

demand for innovation

Increasing private investment in RDI: The share of private R&D expenditure in GDP will increase to 0.4% in 2021, from 0.27% in 2016.Developing RDI activities in the private sector: The number of patents requested from EPO and USPTO (no./year) will increase from 85 per year in 2016 to 120 per year in 2021.

Impact

(2.1.1) Increasing the number of SMEs accessing results and resources of RDI organizations for improving products and services: The number of companies cooperating with research institutions will reach 110 in 2021, as a result of the program implementation.(2.2.1) Increasing the participation of Romanian enterprises (particularly SMEs) in RDI: The number of innovative enterprises (product, process, unfinished, abandoned, organizing, marketing) will reach 4,100 in 2021, from 3,645.

Programme Results


SO2. Increasing economic competitiveness through innovation 2018 2019 2020 2021

Program 2.1: Knowledge transfer 326,740.32 208,440.32 358,440.32 358,440.32 Program 2.2 Supporting private RDI investments 140,262.63 137,488.44 70,000.00 -

TOTAL SO2 467,002.95 345,928.76 428,440.32 358,440.32

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 RDI 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.

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 2021:

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

The number of companies cooperating with research institutions will reach 110 as a result of the program implementation.

Description. Program 2.1 comprises two measures, designed to support collaboration instruments and to activate entrepreneurial activities at the level of RDI institutions.

M.2.1.1.1 Knowledge transfer partnerships aim at encouraging interaction between RDI institutions and the academic and business environment by supporting companies' access to the expertise and facilities of RDI institutions. At the same time, this is a means of harnessing the existing infrastructures and resources that have been acquired, developed or upgraded during the previous programming period and that can support enterprises’ needs in terms of innovation. The projects under consideration are grouped into three categories: knowledge transfer, partnership actions and access of enterprises to the research organization's units, facilities and research equipment in order to perform the necessary testing or experiments for developing new or improved products / technologies / methods.

At the same time, support is being given to the liaison offices with the industry and to the centers for technology information.

Financing of interventions is ensured by:

- ESI Funds: Competitiveness OP, PA1-1b, Action 1.2.3, aimed at fostering interaction between RDI institutions / universities and the business environment.

- National funds:

29

o PNCDI’s Subprogram 2.1. Transfer of knowledge to the economic agent, transfer to the enterprise, implementation at the economic agent level, technological platforms, group development and management, competitions, etc.

o PNCDI’s Subprogram 2.2. Technology transfer in support of competitiveness.

M.2.1.1.2 Supporting innovation clusters aims at encouraging the sharing of equipment, information and knowledge, creation of networks, dissemination of information between businesses and other members of the group. The financing of interventions is ensured by:

- ESI Funds: Competitiveness OP, PA1-1a, Action 1.1.1. Large R&D infrastructures; project type: Innovation clusters.


- Increased public funding for RDI, according to the established targets;- Absorption of the available EU funds;- Strengthening cooperation mechanisms between MRI and other ministries and agencies. As outlined in

the RIO Report of 2016, “The main risks are related to the implementation process. Overlapping implementation measures, programs and agencies, as well as the lack of coordination, monitoring and clear responsibilities for each participant involved in the implementation process, the lack of transparency in the management of the Structural Funds, as well as the bureaucratic delays in meeting EU deadlines and procedures can compromise the achievement of strategic objectives.”36



(R2.1.1) Increasing the number of SMEs accessing results and resources of RDI organizations

M2.1.1.1 Knowledge transfer partnerships

M.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.”37 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 2021:

(SO 2.2.1) Increasing the participation of Romanian enterprises (particularly SMEs) in RDI: The number of innovative enterprises (product, process, unfinished, abandoned, organizing,

marketing) will reach 4,100 in 2021, from 3,645.

36 Section “Improving the framework for private investment in research and innovation and building synergies between science and industry,” Policy assessment: https://rio.jrc.ec.europa.eu/en/country-analysis/Romania/country-report . 37 Available at: https://rio.jrc.ec.europa.eu/en/country-analysis/Romania/european-semester.

30

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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.

M2.2.2 Supporting enterprise innovation demand covers investments for enterprise R&D departments and enterprises’ demand for innovation.

The Financing of interventions is ensured by:

- ESI funds:o Competitiveness OP, PA1, Investment Priority 1a, Action 1.1.1 Large R&D infrastructures, Investment

projects for enterprise R&D departments;o Competitiveness OP, PA1, Investment Priority 1b, Action 1.2.1 Stimulating enterprise demand for

innovation, type of project: Start-up / spin-off;o Competitiveness OP, PA1, Investment Priority 1b, Action 1.2.1 Stimulating enterprise demand for

innovation, type of project: Innovative new enterprises;o OP Competitiveness PA1, Investment Priority 1b, Action 1.2.1. Stimulating company demand for

innovation, type of project: Innovative Technology Project.


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.



(R2.2.1) 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 enterprise demand for innovation

31

Strategic Objective 3. Improving administrative capacity

The national public RDI system in Romania has the Ministry for 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 RDI 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 RDI policy at inter-ministerial level, as well as its correlation with other relevant policies, but their practical contribution is limited.

The public RDI 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 RDI 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 universities38), 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 RDI 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.

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.

38 Which only receive institutional funding for education32

Box 3. Strategic Objective 3: Impact and result indicators


SO3. Improving administrative capacity 2018 2019 2020 2021

Programme 3.1: RDI governance system 731,248.00 673,198.00 684,708.00 367,228.00

TOTAL SO 3 731,248.00 673,198.00 684,708.00 367,228.00

33

SO3. Improving administrative capacity

Programme 3.1. RDI governance system

Measures of the Programme 3.1M3.1.1.1 Evidence-based RDI policy

M3.1.1.2 National RDI governance system

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 2021.

Impact

(3.1.1) Improved efficiency and effectiveness at the level of the national RDI system: The RDI governance system will be developed in accordance with the SNCDI provisions.

Programme Results

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 201639, “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.

An important component of the governance will consist in ensuring the proper functioning and coordination of the various consultative bodies40:

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)

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. The Government Program 2017-2020 reorganized the consultative bodies, in support of the implementation of the RDI policy. The new organizational framework will include representatives of the academic community and of the economic environment (large employers).

At the level of public R & D institutions, reforms need to be implemented in terms of strengthening performance and budget monitoring.

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

(R3.1.1) Improved efficiency and effectiveness at the level of the national RDI system

39Section on Challenges - Improve the R&I governance, available at: https://rio.jrc.ec.europa.eu/en/country-analysis/Romania/country-report 40 Presented in their current set-up, subject to reform

34



The RDI governance system will be streamlined and developed.

Description. Administrative 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.

Based on the priorities set by the Governance Program and taking into account the recommendations of all systemic evaluations carried out, Program 3.1 will focus on reviewing, updating and strengthening the architecture and processes of the RDI system.

Beyond the review of the institutional structure, it is also envisaged to ensure the IT integration of the RDI system, together with the development, monitoring and evaluation of the RDI system and activities.

M.3.1.1.1 Evidence-based RDI policy refers to the development of regulations and normative acts on the organization and functioning of MRI, the development and operation of the regional observatory network, support for RDI advisory bodies and the implementation of the RDI Sectoral Plan.The financing of interventions is ensured by:

- National Funds: MRI Budget.

M3.1.1.2 The management of the national RDI system refers to the implementation of support programs for the development of the RDI system in Romania and the development of the integrated IT platform for RDI.The financing of interventions is ensured by:

- National funds: PNCDI’s Subprogram 1.4. Support;- ESI Funds: Administrative Capacity OP, SIPOCA Project 27.

The 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.



(R3.1.1) Improving efficiency and effectiveness

M3.1.1.1 Evidence-based RDI policy

M3.1.2 National RDI governance system

35

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: A monitoring framework for the follow-up processes constituting the actions is set out in the ISP sections and summarized in the annexes. This provides information on indicators and targets for different levels of planning.Evaluation: The details of impact and result indicators suggested for performance evaluation are also found in the previous sections of the ISP.Data collection and management: A strategic planning and performance assessment application has been developed, with the proposed PSI structure model. The application is developed by the central government (SGG) and will be used to collect data and present them in a structured way, namely Project, Measure, Program and Strategic Objective. 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 encouraged to learn about the progress achieved in delivering the results, the challenges encountered

36

Ian. Apr. Jul. Oct.

Annual analysis of results : all indicators

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

Bi-Annual analysis of results r: Result, output and input indicators rezultat, produs și intrare

and the necessary steps ahead. In this context, the ISP should be a useful and powerful communication tool.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 6. Monitoring Cycle of the Institutional Strategic Plan 2018-2021

A complete exercise of strategic planning will be done once every four years. In the meantime, between April and June, the Ministry of Research and Innovation, 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 Timespan2018 2018 -20212019 2019-20222020 2020-20232021 2021-2024

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.

37

V. Financial Resources

The ISP of the Ministry for 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 (2018-2021), the strategic objectives and budgetary programs within the ISP will amount to 8,8 bn. lei.

Table 11. Annual financial allocations, by strategic objectives (thousand lei)Strategic objectives TOTAL 2018 2019 2020 2021

SO1. Developing the RDI capacity and dissemination of research results

4.813.024,40 1.271.512,74 1.339.063,74 1.193.347,91 1.009.100,00

SO2. Increasing economic competitiveness through innovation

1.599.812,35 467.002,95 345.928,76 428.440,32 358.440,32

SO3. Improving administrative capacity

2.456.382,00 731.248,00 673.198,00 684.708,00 367.228,00

Looking at the distribution of strategic objectives, most of the funds are allocated to the Strategic Objective 1, namely the financing of major projects of strategic importance, the consolidation of the material basis for RDI and the development of human resources in the RDI system. Strategic Objective 3 has the second largest share of budget allocations, targeting the functioning of the MRI and the institutions under its subordination or coordination, as well as the development of the national RDI system. The Strategic Objective 2, focusing on financing the business environment and stimulating RDI activities of enterprises, has the lowest share in the budget estimated for the period 2018-2021.

54%

18%

28%

ISP Budget 2018-2021

SO1. Developing the RDI capacity and dissemination of research resultsSO2. Increasing economic competi-tiveness through innovationSO3. Improving administrative ca-pacity

38

Table 12. Financial allocation, by expenditure (thousand lei)

Expenditure category / funding sources

2018 2019 2020 2021

State budget 1.637.754 1.528.955 1.855.214 1.526.328

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

9.696 9.130 9.587 10.066

Expenditure for goods and services financed from the state budget

5177 5365 5797 5826

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

17873 14495 15384 15892

All other expenditure financed from the state budget

1.622.881 1.514.460 1.839.830 1.510.436

Other transfers 1.288.851 1.138.950 1.419.320 1.509.986

FEN 333.520,00 375.000,00 420.000,00

-

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.

39

Annex 1a: Budgetary Objectives and Programmes 2018-2021 (thousand lei)

Budgetary programmes

Total

,000 RON

Total value/years

,000 RON

Financing Sources / annual value ,000RON

State Budget FEN Co-fin FEN C OP

2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021

P1.1. Physical infrastructure for RDI

1.297.733,67 429.464,84

468.268,84

200.000,00

200.000,00

119.000,00

157.804,00

200.000,00

200.000,00

-

-

-

-

-

310.464,84

310.464,84

-

-


700.925,73 205.241,91

222.841,91

222.841,91

50.000,00

32.400,00

50.000,00

50.000,00

50.000,00

86.420,95

86.420,95

86.420,95

-

-

-

-

-

86.420,95

86.420,95

86.420,95

-

P1.3. Internationalization 665.300,00 119.400,00

201.700,00

172.100,00

172.100,00

119.400,00

201.700,00

172.100,00

172.100,00

-

-

-

-

-

-

-

-

-

P1.4. RDI institutions 2.149.065,00 517.406,00

446.253,00

598.406,00

587.000,00

517.406,00

446.253,00

598.406,00

587.000,00

-

-

-

-

-

-

-

-

-

-

-

-

TOTAL SO1 4.813.024,40

1.271.512,74

1.339.063,74

1.193.347,91

1.009.100,00

788.206,00

855.757,00

1.020.506,00

1.009.100,00

86.420,95

86.420,95

86.420,95

-

-

-

-

-

396.885,79

396.885,79

86.420,95

-

P2.1. Knowledge transfer 1.252.061,28 326.740,32

208.440,32

358.440,32

358.440,32

118.300,00

-

150.000,00

150.000,00

104.220,16

104.220,16

104.220,16

104.220,16

-

-

-

-

104.220,16

104.220,16

104.220,16

104.220,16

P2.2. Supporting private RDI investments

347.751,07 140.262,63

137.488,44

70.000,00

-

-

-

-

-

-

-

-

-

-

-

-

-

140.262,63

137.488,44

70.000,00

-

TOTAL SO2 1.599.812,35 467.002,95

345.928,76

428.440,32

358.440,32

118.300,00

-

150.000,00

150.000,00

104.220,16

104.220,16

104.220,16

104.220,16

-

-

-

-

244.482,79

241.708,60

174.220,16

104.220,16


2.456.382,00 731.248,00

673.198,00

684.708,00

367.228,00

397.728,00

298.198,00

264.708,00

367.228,00

240.156,00

309.518,00

376.765,00

-

93.364,00

65.482,00

43.235,00

-

-

-

-

-

TOTAL SO3 2.456.382,00 731.248,00

673.198,00

684.708,00

367.228,00

397.728,00

298.198,00

264.708,00

367.228,00

240.156,00

309.518,00

376.765,00

-

93.364,00

65.482,00

43.235,00

-

-

-

-

-

40

Annex 1b: Programmes, Measures, and related Budgets 2018-2021 (thousand RON)

CodeStrategic

Objective / Programme /

Measure

Value ,000 RON

Value / years ,000 RON State Budget ,000 RON EU Funds Budget ,000 RON State Budget Co-fin ,000 RON C OP

2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021

SO1Developing the capacity for scientific research and dissemination of research results

4.813.024,40

1.271.512,74

1.339.063,74

1.193.347,91

1.009.100,00

788.206,00

855.757,00

1.020.506,00

1.009.100,00

86.420,95

86.420,95

86.420,95

-

-

-

-

-

396.885,79

396.885,79

86.420,95

-

P1.1. Physical infrastructure for RDI

1.297.733,67

429.464,84

468.268,84

200.000,00

200.000,00

119.000,00

157.804,00

200.000,00

200.000,00

- -

-

-

-

310.464,84

310.464,84

-

-

M1.1.1.1 Financing infrastructure projects of European importance

489.798,46

235.649,23

214.149,23

20.000,00

20.000,00

24.000,00

2.500,00

20.000,00

20.000,00

211.649,23

211.649,23

-

-


807.935,22

193.815,61

254.119,61

180.000,00

180.000,00

95.000,00

155.304,00

180.000,00

180.000,00

98.815,61

98.815,61


700.925,73

205.241,91

222.841,91

222.841,91

50.000,00

32.400,00

50.000,00

50.000,00

50.000,00

86.420,95

86.420,95

86.420,95

-

-

-

-

-

86.420,95

86.420,95

86.420,95

-

M1.2.1.1 Preparing young researchers

182.400,00

32.400,00

50.000,00

50.000,00

50.000,00

32.400,00

50.000,00

50.000,00

50.000,00

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

259.262,86

86.420,95

86.420,95

86.420,95

-

86.420,95

86.420,95

86.420,95

-


665.300,00

119.400,00

201.700,00

172.100,00

172.100,00

119.400,00

201.700,00

172.100,00

172.100,00

-

-

-

-

-

-

-

-

-

-

-

-

M1.3.1.1 Support for international collaborations

647.100,00

115.200,00

197.100,00

167.400,00

167.400,00

115.200,00

197.100,00

167.400,00

167.400,00

M1.3.1.2 Dissemination and access to information

18.200,00

4.200,00

4.600,00

4.700,00

4.700,00

4.200,00

4.600,00

4.700,00

4.700,00

P1.4 RDI institutions 2.149.065,00

517.406,00

446.253,00

598.406,00

587.000,00

517.406,00

446.253,00

598.406,00

587.000,00

-

-

-

-

-

-

-

-

-

-

-

-

M1.4.1.1 Research in fields of strategic interest for Romania

1.767.765,00

460.306,00

342.053,00

488.406,00

477.000,00

460.306,00

342.053,00

488.406,00

477.000,00

M1.4.1.2 Institutional support

381.300,00

57.100,00

104.200,00

110.000,00

110.000,00

57.100,00

104.200,00

110.000,00

110.000,00

SO2 Increasing economic competitiveness

1.599.812,35

467.002,95

345.928,76

428.440,32

358.440,32

118.300,00

-

150.000,00

150.000,00

104.220,16

104.220,16

104.220,16

104.220,16

-

-

-

-

244.482,79

241.708,60

174.220,16

104.220,16

41

CodeStrategic

Objective / Programme /

Measure

Value ,000 RON

Value / years ,000 RON State Budget ,000 RON EU Funds Budget ,000 RON State Budget Co-fin ,000 RON C OP

2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021

through innovation

P2.1 Knowledge transfer

1.252.061,28

326.740,32

208.440,32

358.440,32

358.440,32

118.300,00

-

150.000,00

150.000,00

104.220,16

104.220,16

104.220,16

104.220,16

-

-

-

-

104.220,16

104.220,16

104.220,16

104.220,16

M2.1.1.1 Knowledge transfer partnerships

1.202.803,43

314.425,86

196.125,86

346.125,86

346.125,86

118.300,00

-

150.000,00

150.000,00

98.062,93

98.062,93

98.062,93

98.062,93 98.06

2,93 98.06

2,93 98.

062,93 98.0

62,93

M2.1.1.2 Support for innovation clusters

49.257,84

12.314,46

12.314,46

12.314,46

12.314,46 6.

157,23

6.157,23

6.157,23 6

.157,23 6.157,23

6.157,23

6.157,23

6.157,23


347.751,07

140.262,63

137.488,44

70.000,00

-

-

-

-

-

-

-

-

-

-

-

-

-

140.262,63

137.488,44

70.000,00

-

M2.2.2.1 Implementation of risk capital instruments for RDI

210.000,00

70.000,00

70.000,00

70.000,00

-

70.000,00

70.000,00

70.000,00

M2.2.2.2 Supporting enterprise demand for innovation

137.751,07

70.262,63

67.488,44

-

-

70.262,63

67.488,44

-

-

SO3 Improving administrative capacity

2.456.382,00

731.248,00

673.198,00

684.708,00

367.228,00

397.728,00

298.198,00

264.708,00

367.228,00

240.156,00

309.518,00

376.765,00

-

93.364,

00

65.482,

00

43.235,

00

-

-

-

-

-


2.456.382,00

731.248,00

673.198,00

684.708,00

367.228,00

397.728,00

298.198,00

264.708,00

367.228,00

240.156,00

309.518,00

376.765,00

-

93.364,

00

65.482,

00

43.235,

00

-

-

-

-

-

M.3.1.1.1 Evidence-based RDI policy

379.579,00

112.196,00

58.730,00

103.087,00

105.566,00 112.196,00 58.730,00 103.087,00 105.566,00

M3.1.1.2 National RDI governance system

2.076.803,00

619.052,00

614.468,00

581.621,00

261.662,00 285.532,00 239.468,0

0 161.621,00 261.662,00 240.156,00

309.518,00

376.765,00 0,00 93.364,

0065.482,

0043.235,

00 0,00

Total ISP 8.869.218,75

2.469.763,70

2.358.190,50

2.306.496,23

1.734.768,32

1.304.234

1.153.955

1.435.214

1.526.328

430.797,11

500.159,

11

567.406,

11

104.220,16

93.364

65.482

43.235

-

641.368

638.594,39

260.641,11

104.220,16

42

Annex 2: Institutional Strategic Plan (summary table)

Objectives, programs, indicators Unit Baseline Target 2019

Target 2021

Strategic 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

% 5,1% (2015)41 5,5% 6%

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

No./1mil inhabitants 182,5 (2016)42 200 250

Impact Indicator 3: Number of researchers (FTE) Number 18.046 (2016)43 16.500 17.000

P1.1. Physical infrastructure

Result 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 RDI

Result 1.2.1. Increasing the number of researchers

Outcome indicator: Number of new researchers (FTE) in the supported entities Number 0 550 627


Result 1.3.1. Increased participation in international projects

Outcome indicator: Number of international partnerships under Horizon 2020 Number 200 350 400

P1.4. RDI Institutions

Result 1.4.1. Increasing the output and quality of Romanian research

41 European Innovation Scoreboard http://ec.europa.eu/DocsRoom/documents/24141 42 European Innovation Scoreboard http://ec.europa.eu/DocsRoom/documents/2414143 National Statistics Institute: Tempo Online, Employees in R&D activity - full time equivalent, by performance and occupation sectors, total, researchers, 2016

43



Objectives, programs, indicators Unit Baseline Target 2019

Target 2021

Outcome indicator: Number of ISI listed Romanian journals Number 56 58 60

Strategic objective 2. Increasing economic competitiveness through innovation

Impact Indicator 1: Share of private R&D expenditure in GDP % 0,27%44 (2016) 0,35% 0,4%

Impact Indicator 2: Number of EPO, USPTO patents (number/year) No./ year 85 100 120


Result 2.1.1. Increasing the number of SMEs accessing results and resources of RDI organizations for improving products and services

Outcome indicator: Number of SMEs that collaborate with research institutions

No. 0 50 11045


Result 2.2.1. Increasing the participation of Romanian enterprises (particularly SMEs) in RDI

Outcome indicator: Innovative enterprises (product, process, unfinished, abandoned, organizing, marketing)

Number 3.64546 4.000 4.100

Strategic Objective 3. Developing administrative capacity

Impact Indicator 1: Total number of RDI projects in Romania Number 8051 (2016)47 9.000 10.000


Result 3.1.1. Improving efficiency and effectiveness at the level of the RDI system

Outcome indicator: Improved RDI system according to SNCDI provisions Number 0 1 1

44 National Statistics Institute (NSI): http://www.insse.ro/cms/sites/default/files/field/publicatii/activitatea_de_cercetare_dezvoltare.pdf 45 According to Competitiveness OP 2014-202046 NSI Tempo Online, Innovative enterprises (product, process, unfinished, abandoned, organizing, marketing) by activities and classes, total, 201447 NSI Tempo Online, R&D Projects, according to NABS, total, 2016. An R&D project is a way of achieving a program objective with a well-established goal, which is to be achieved within a certain period using the assigned resources and to which is attached a set of rules, objectives and activities. The grant is a specific form of non-reimbursable financing of scientific research topics of national interest, with a pronounced originality and given on a competitive basis.

44

http://www.insse.ro/cms/sites/default/files/field/publicatii/activitatea_de_cercetare_dezvoltare.pdf

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

MeasuresOutput Indicator Unit/Target Values48

Output indicator (M.U., baseline)

Target 2018

Target 2019

Target 2020

Target 2021

P1.1. Physical infrastructure

(1.1.1) Increasing the capacity utilization rate of the research facilities

M1.1.1.1 Financing infrastructure projects of European importance Competitiveness OP, IP-1a, Action 1.1.1 Large R&D infrastructures, type of projects: ELI-NP, Danubius-RI and projects approved in the National Roadmap for Research Infrastructures aim at financing the large pan-European research infrastructures on ESFRI list, which can be included as thematic area of future research in the fields of smart specialization research or health, according to SNCDI. In this case, there is the ELI-NP project that was financed in SOP IEC and will continue with the second stage with funding from COP. Another project proposal is the International Center for Advanced Studies on River-Delta-Maritime Systems (Danubius-RI), proposed to be funded under the COP after its inclusion in the ESFRI list in 2016.

Subprogram 5.4 The RDI Program for River-Delta-Maritime Systems (DANUBIUS) aims at: developing RDI activities in order to strengthen competencies in the field of river-delta-maritime systems; the preparation of RDI activities to be carried out in the future pan-European research infrastructure, increasing the RDI potential in Romania, promoting cooperation within and outside the consortium, etc. The types of funded projects include: RDI projects, experiments, models, measurements and

Major projects financed (Number) 1 1 1 1

Large projects financed (Number)

2 2 2 2

48 The target values are cumulative for the reference period, unless otherwise specified. In other words, the target for 2021 is the value achieved throughout the 2018-2021 period.

45

MeasuresOutput Indicator Unit/Target Values


Target 2018

Target 2019

Target 2020

Target 2021

specific analyzes, research-support projects, management-support projects.

M1.1.1.2 Financing RDI infrastructures for public RDI institutionsOP Competitiveness, PI-1a, Action 1.1.1 Large R&D infrastructures, investment projects for public R&D institutions / universities aim to increase the R&D capacity in the areas identified within SNCDI as priority for smart specializations and health. This type of project aims to increase research capacity by supporting participation in research infrastructures of European interest, mentioned in the Roadmap approved by the European Strategy Forum on Research Infrastructures (ESFRI) and by creating or upgrading national or regional infrastructures, as they were selected from Romania's list / Roadmap for research infrastructures for the period 2017-2025.Financing is given only to projects focused on the following priority thematic research areas: Smart specialization (Bioeconomy, ICT, Space and Security, Energy, Environment and Climate Change, Eco-Nanotechnologies and Advanced Materials) and Health, as a priority area of national interest. The investments are given for facilities (fixed or mobile laboratories, new or upgraded research centers) and / or for endowment with research equipment and tools.

PNCDI’s Subprogram 1.3 RD Infrastructures 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 Program for Financing New Research Facilities of National Interest

Public infrastructures supported (Number) 6 8 10 10

Large investment projects (Number)

1 2 4 4

46



Target 2018

Target 2019

Target 2020

Target 2021

These facilities are considered to be of national interest because they ensure that all researchers have access to the facilities available to them, but have maintenance and operating costs that cannot be covered by the funds allocated to research projects, additional sources of financial support being needed. The research activity that is carried out allows for the achievement of results that ensure the connection of the Romanian research to the European and international scientific community in avant-garde areas, knowing that the research and the technological development lead to the increase of labor productivity and competitiveness.These special facilities and objectives of national interest represent support facilities for research in strategic areas of the national economy, comparable to those at the global level and leading to high-performance research. At the same time, they provide adequate scientific, technical and logistic support and are also accessible to other users interested in carrying out their research activities, developed on their own or in collaboration, as they have documents certifying the quality of services, which are issued by competent bodies, approved by the regulatory authority in the field, having also both proven capabilities over the years and prospects for use in future research.


(1.2.1.) Increasing the number of researchers

M1.2.1.1 Preparing young researchers Subprogram 1.1 Human Resources of PNCDI49 aims 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

PhD programmes supported (Number)

15 15 15 15

49 PNCDI pg. 17

47



Target 2018

Target 2019

Target 2020

Target 2021

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").

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 are conducted by the specialist from abroad, who is hired as a scientific researcher (at least) for the duration of the project, by the host institution. This action is aimed at consolidating the RDI capacity for preparing the participation to Horizon 2020 and concentrates on the four plus one priority sectors established by the SNCDI.Allotted funds are fully contracted and projects are under implementation.

Specialists from abroad hired in

supported projects (Number)

10 25 40 45


(1.3.1) Increased participation in international projects

M1.3.1.1 Support for international collaborationsCompetitiveness OP, PI-1a, Action 1.1.3 Creating synergies with RDI actions of the EU's Horizon 2020 framework program and other international RDI

Projects with Romanian

participation (Number)

300 340 340 340

48



Target 2018

Target 2019

Target 2020

Target 2021

programs is aimed at supporting RDI projects that participate directly in H2020 competitions, complementing the proposed activities of the objectives of some calls for H2020 competitions or addressing the strengthening of the administrative capacity of RDI institutions in Romania in order to develop applications for European and global projects and calls.

The following types of projects are funded:- Research and innovation projects for both research organizations and enterprises (CO-ECSEL, COMPLEMENT, RO-EIT, RO-ERIC, FINALIST-SMEs)- Support projects for research organizations (Support Centers)- Investment projects for R&D infrastructure for research organizations (ERA chairs, Teaming)

PNCDI Subprogramme 3.1 Bilateral is aimed at bilateral or multilateral cooperation in the field of scientific research, strengthening the national RDI system by intensifying international cooperation - launching joint thematic calls in partnership with other countries, joint research activities, joint research teams, in order to access other funds available from international research-development programs, strengthening scientific cooperation between Romania and partner countries through financing joint research projects.

PNCDI’s Subprogram 3.2 "Horizon 2020" aims at supporting participation in Horizon 2020 projects, strengthening the national RDI system by enhancing collaboration in European excellence research, increasing Romania's visibility in the field of research and innovation. The projects under Horizon 2020 for which participation is supported include: GEOTERMICA, FET

197

Financing organizations

supported (Number)1 1 1 1

Support Centers at Horizon 2020

applications and other international programs

(Number)

10 15 20 20

Agreements signed (Number) 16 16 16 16

Transnational participations

(Number/year)

28 28 28 28

49



Target 2018

Target 2019

Target 2020

Target 2021

Flagship ERA-NET, QuantERA, MANUNET III, EuroNanoMed III, RI-LINKS2UA, ERA4CS, ACT, ProSafe, NEURON, FACCE-SURPLUS, CoBioTech, SUSFOOD 2 , BIODIVERSA 3, CORE Organic Cofund, 4 PRIMA CSA, SYNAMERA, ERA-GAS, WaterWorks 2015, ENSUF - ERA-NET co-fund Smart Urban Futures, INNOVOUCHER, Columbus, Net Smart Grids Plus, ERA-NET Smart Cities and Communities, Waterworks 2014.

PNCDI’s Subprogram 3.3 Supporting the Romanian participation in the JPI supports the integration of Romanian research into the European research area in the fields covered by the Joint Programming Initiatives (JPI), and the participation of Romanian research organizations in identifying common solutions / measures for the societal challenges that affect European communities differently. The main types of projects used are: RDI projects - projects selected for financing following joint calls; support projects.

PNCDI’s Subprogram 3.4. Supporting JTI / JU participation is intended to support the participation of Romanian entities in joint technology initiatives; creating favorable conditions for investment in knowledge and innovation at national level, boosting European competitiveness, growth and employment. The main types of projects used are:- demonstrative, integrated, innovative projects of the Joint Undertaking – they are generally run throughout the Joint Undertaking, in which the legal entities participate as "members", "associates", "key partners", etc., which are selected following specific applications / participation requests;- RDI projects and specific support – are usually run for a limited period, being selected by the Joint Undertaking following open calls and proposal competitions.

50



Target 2018

Target 2019

Target 2020

Target 2021

PNCDI’s Subprogram 3.5 Other European and international initiatives and programs have as objectives: to support Romanian participation in European and international initiatives: EUREKA, EUROSTARS, NATO, art. 185 TFEU and the like; stimulating the technological and economic performances of Romanian companies by financing those entities that have the capacity to transform ideas into innovative products and technologies with real market potential; the realization by new economic operators of new products and technologies based on research results and potential for commercial exploitation in the domestic and international market; stimulating SMEs to consider innovation as a development strategy, both by developing their own research capabilities and by accessing the experimental facilities available in research entities in Romania; to support cooperation between research organizations and industry so that they collaborate at all stages, namely: idea, concept, design, experimental model, prototype, testing, technological design, serial production, promotion, marketing and sales of innovative products with great value added; strengthening enterprise innovation capacity to create new products / systems / technologies / based on the exploitation of research results.These types of projects follow the format required by the European program to which it is addressed and updated as necessary:- Traditional EUREKA project;- EUREKA-Cluster Project;- EUROSTARS project;- NATO-STO (Science and Technology Organization) projects;- NATO-SPS (Science for Peace and Security) projects;

51



Target 2018

Target 2019

Target 2020

Target 2021

- specific projects as foreseen in the European programs under Art. 185 TFEU.

PNCDI’s Subprogram 3.6 Support helps the formation of consortia with international partners, stimulates participation and supports Romania's representation in international research organizations, programs and initiatives (e.g. Horizon 2020, EUREKA, NATO, COST, EIT, EIP, JPI, JTI, etc.). The main types of projects used are:- support projects for the participation of Romanian representatives in meetings of European and international organizations, bodies and initiatives;- support projects for the organization in Romania of meetings of European and international research organizations, bodies and initiatives in which Romania is represented;- support projects for organizing or participating in preparatory activities to form consortia for the submission of new European projects (Horizon 2020);- support projects to stimulate participation in pan-European and international R&D initiatives, including European Innovation Partnerships (EIP, JPI).- awards given to Romanian participants in Horizon 2020 projects as project and / or project coordinators.

PNCDI’s Subprogram 5.2. Participation in international research bodies and programs aims at: increasing the visibility of Romanian research by participating in international research bodies and programs in the nuclear field and elementary particles; strengthening scientific and industrial

52



Target 2018

Target 2019

Target 2020

Target 2021

cooperation, knowledge transfer and cutting-edge technologies at European and international level in nuclear and particulate matter; promoting industrial innovation in the nuclear energy sector; obtaining nuclear technologies by strengthening the collaboration between Romania (through the Institute of Atomic Physics - IFA Bucharest) and partner organizations at international level (e.g. CEA - Atomic Energy and Alternative Energy Commission of France); providing an efficient communication platform between Romanian research, educational, industrial and economic institutions and international research bodies in the nuclear field and elementary particles.The subprogram comprises the following modules:- EURATOM-RO: nuclear fusion, nuclear fission and radioprotection;- CERN-RO: elementary particle physics, high-energy nuclear physical physics with radioactive beams;- FAIR-RO: the physics of antiprotons and ions, nuclear physics with high energy, physical with radioactive beams;- CEA-RO: nuclear energy, alternative energies and applications;- F4E-RO: Fusion for energy.These types of projects are adapted to the types of projects within the European programs:- research and development projects (F4E, CERN-RO, FAIR-RO, CEA-RO, etc.);- R&D projects - Jointly funded projects from the state budget and partner organizations at international level (e.g. CEA);- management support projects (F4E, CEA-IFA, others similar).

53



Target 2018

Target 2019

Target 2020

Target 2021

PNCDI’s Subprogram 5.3. R&D and Innovation Program for Space Technology and Advanced Research - STAR. The STAR Program for Supporting Participation in the Programs and Activities of the European Space Agency is initiated, approved and under implementation for the period 2012-2019, according to the provisions of Art. 6 par. (1) of the Law no. 262/2011, and will be supported in the current multi-annual strategic planning and financing cycle until 2019. According to the provisions of art. 6 par. (2) of the Law no. 262/2011, ROSA ensures the management of the program, its implementation being made with the specific instruments established by orders and instructions issued by the state authority for research and development.

M1.3.1.2 Dissemination and access to informationCompetitiveness OP, PI-1a, Action 1.1.2 Building networks of R&D centers, coordinated at national level and connected to European and international networks and providing researchers with access to scientific publications and European and international databases; project type: CLOUD and big data infrastructures; ANELIS PLUS; RoEduNet.CLOUD and big data infrastructures. This will contribute to the development of CLOUD-type infrastructures using private CLOUD solutions, but also encouraging projects that develop infrastructure solutions that can be plugged into other Cloud resources in a hybrid model.RoEduNet. This action will help to increase the Romanian researchers' national and international level of connection and at the same time will contribute to the development of specialized infrastructures to support large and complex research projects. RoEduNet is the national network for education and research in Romania. At the national level, RoEduNet provides data connections for research institutions in Romania, universities, schools and high schools, university hospitals, libraries and several

Implemented projects (Number) 4 5 6 6

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

91

110 120 120 120

54



Target 2018

Target 2019

Target 2020

Target 2021

museums and cultural institutions. The objectives are: expanding and diversifying the international connectivity of the RoEduNet network, Increasing the capacity to connect research centers at national level.Scientific manifestations subsidized from the state budget, subsidies for RDI literature.

P1.4. RDI Institutions

(1.4.1) Improving research results in Romania

M.1.4.1.1 Research in fields of strategic interest for RomaniaPNCDI’s Program 5, Research in areas of strategic interest, support program led by institutions with a role of scientific coordination in areas of strategic interest.The program aims at:- supporting the participation of Romanian research institutions in international scientific institutions and programs, in order to increase national research capacity in areas of strategic interest;- identification of research, technological and industrial niches at national, European and global level;- the use of international R&D resources through joint participation in European scientific organizations and programs for solving issues of strategic interest for Romania;- achieving visible and impacting scientific results through international cooperation, knowledge transfer and technology with strategic applications;- promoting industrial innovation in strategic interest sectors, developing and diversifying research applications in industrial activities;- efficient communication between research, educational, industrial and

Major projects supported

(Number/year)

4 4 4 4

55



Target 2018

Target 2019

Target 2020

Target 2021

economic institutions in Romania, by popularizing scientific results in areas and sectors of strategic interest.Core programs are R&D programs pertaining to R&D institutions and units, which can be funded by the state authority for R&D and which focus mainly on issues specific to the economic and social sphere in which the institution or unit operates. In 2018, 48 proposals for core programs were approved for funding.

M.1.4.1.2 Support for high-level researchPNCDI’s Program 4 Fundamental and frontier research to maintain and develop niche areas where Romanian fundamental research has comparative advantage provides funding for exploratory research projects, complex border research projects and ERC-like research projects, aimed at developing the fundamental research in the priority areas set by SNCDI 2020, increasing Romania's contribution to the ERA, developing emerging themes; the adoption of international assessment 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.

Projects supported (Number/year)

ERC-Like Complex border

research projects Exploratory research

projects

200 200 200 200


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

M2.1.1 Knowledge transfer partnershipsCompetitiveness OP, PA1-1b, Action 1.2.3 aims to foster interactions

Enterprises collaborating with public institutions

80 90 110 110

56



Target 2018

Target 2019

Target 2020

Target 2021

between RDI institutions / universities and the business environment. This action seeks to encourage the interaction of higher education institutions and R&D institutions with the business environment by funding enterprise access to extensive expertise and facilities of research organizations in order to market research results towards businesses that are developing market-driven businesses. To this end, partnerships will be established between research organizations and businesses / business groups interested in acquiring knowledge, including skills and competencies that will meet the strategic development needs of business and provide innovative solutions for product and process acquisition, new / improved technologies identified by businesses as being required by the market. PNCDI’s Subprogram 2.1 Transfer of knowledge to the economic agent, Transfer to the enterprise, Implementation at the economic agent level, Technological platforms, Group development and management, competitions, etc. The program has the following objectives:- stepping up partnerships for industrial research and business development activities funded by the business sector;- achieving new or significantly improved products / technologies / methods / services and introducing them into the productive chain;- climbing on value chains by increasing the value added and raising technological levels in enterprises;- completing value chains – from primary suppliers to the sale of finished goods;- promoting innovative business culture;- promoting common agendas and strategic development plans;- optimizing the use of research resources (infrastructure and personnel);- boosting national and international patenting;

(Number)0

SMEs financed (Number) 432 600 600 600 600

Tech Transfer entities (Number)

60 60 60 60

57



Target 2018

Target 2019

Target 2020

Target 2021

- concentration of investments (maximizing the value of the money invested);- training research staff in enterprises, hiring research staff.

PNCDI’s Subprogram 2.2 Technological Transfer in support of competitiveness aims to increase the supply of information and brokerage services and to provide support for administrative capacity and intellectual property management.The main types of projects used are: the liaison office with the industry and technology information center.

M2.1.1.2 Supporting innovation clusters Competitiveness OP, PA1-1a - Action 1.1.1. Large R&D infrastructures; project type: Innovation clustersThe measure contributes to the development of R&D capacity within the supported clusters (including by strengthening the role of R&D partners in clusters and attracting new R&D cluster entities), to stepping up innovation activities (e.g. by introducing new products - goods or services - and processes on the market) and to increasing their economic competitiveness (by increasing aggregate turnover, aggregate exports value or other economic indicators). Also, the creation of new highly qualified cluster jobs is envisaged. The funding covers investments for the development of new joint R&D facilities in innovation clusters and / or the upgrade of existing joint R&D facilities, innovation activities (obtaining, validating and protecting patents and other intangible assets belonging to the cluster, detaching highly qualified personnel, the purchase of innovation advisory services and the acquisition of innovation support services), as well as exploitation activities to support cluster operations (cluster animation and

Clusters supported (Number)

0

4 4 4 4

58



Target 2018

Target 2019

Target 2020

Target 2021

promotion, cluster facility management, training programs, workshops, conferences).


(2.2.1) Increasing the participation of Romanian enterprises (particularly SMEs) in RDI

M2.2.1.1 Implementing risk capital instruments for RDICompetitiveness OP, PA1-1b. Action 1.2.2 Credit instruments and risk capital measures in favor of innovative SMEs and research organizations responding to market demandsThe State aid and de minimis scheme in the form of risk capital investments for SMEs target beneficiaries who meet at least one of the following criteria:- the beneficiary or one of its shareholders / associates has registered or is in the process of registering at least one technological right (such as patent, utility model, industrial design right, copyright for a computer program, etc.) and financial support is directed towards actions aimed at supporting the implementation of the same technological right;- the beneficiary or one of its shareholders / associates has received a research, development or innovation prize awarded by an EU institution or a body competent at EU / national / regional level and the financial support is directed towards actions to support the implementation of the same prize; or- the beneficiary is an innovative enterprise financially, during the audit of the current tax period, as certified by an external auditor;- the beneficiary intends to use innovation funding as defined in the "Oslo Manual - Guide to the Collection and Interpretation of Innovation Data",

Enterprises supported (Number)

0 15 20 20

59



Target 2018

Target 2019

Target 2020

Target 2021

3rd ed., chapter 3.

M2.2.1.2 Supporting enterprise demand for innovationCompetitiveness, PA1, PI-1a, Action 1.1.1 Large R&D infrastructures, Investment projects for enterprise R&D departments Investments in the development of enterprise R&D departments aim to encourage increased RDI capacity in order to boost the level of innovation and market competitiveness of enterprises and improve private RDI investment. When the enterprise is part of a cluster, investing in RDI will also help to increase cluster potential, especially in those economic sectors that are competitive or have growth potential at the level of the communities where these businesses operate. This type of project will support initial investments for: the construction of new R&D departments (laboratories / R&D centers, etc.), mandatorily accompanied by the provision of equipment and research tools; modernization, extension, consolidation, change of destination of the existing R&D departments, compulsorily accompanied by equipment and research tools; the purchase of research equipment and tools.Competitiveness OP, PA1-1b, Action 1.2.1 Stimulating enterprise demand for innovation; project type: Start-up / spin-offFunding has the objective of making products, new / significantly improved technologies / processes for production and marketing purposes.Competitiveness OP, PA1-1b, Action 1.2.1 Stimulating enterprise demand for innovation; project type: Innovative start-upsThe objective is to stimulate innovation in new innovative start-ups that develop new or substantially improved products and / or processes for production and marketing purposes. The specificity of this type of project consists in capitalizing on research-development results or patented ideas

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

0100 150 200 200

Patent requests (Number)* 150 180 200 200

Enterprises introducing new

products / (Number)* 35 45 45 45

Enterprises supported

(Number/year)*

10 5 0 0

60



Target 2018

Target 2019

Target 2020

Target 2021

as a starting point for the development of those products (goods or services), processes, technologies identified by the applicant as being required by the market based on firm pre-contracts held by the applicant.

Competitiveness OP, PA1-1b, Action 1.2.1. Stimulating enterprise demand for innovation; type of project: Innovative Technology ProjectThis action is aimed at encouraging private RDI investment by increasing the number of enterprises that aim to bring innovation into their own business through projects that develop new or substantially improved products and / or processes or technologies for production and marketing purposes, based on research.This action is addressed to large, medium or small enterprises (including micro-enterprises) in Romania that run R&D activities, but don’t have R&D as main activity.The innovative technology project aims to achieve a process or product innovation (goods and / or services), which is based on research conducted within the project.

P3.1. RDI governance system (ministry - funding agencies - national institutes)

(3.1.1) Improving efficiency and effectiveness

M.3.1.1.1 Evidence-based RDI policySupporting the development and implementation of evidence-based public RDI policy will be achieved by:

- Developing the organizational and regulatory framework- Supporting the regional observatories network

Regional observatories

supported (Number)

8 8 8 8

61



Target 2018

Target 2019

Target 2020

Target 2021

- Supporting the consultative bodies (their budget)- Sectoral plan

M3.1.1.2 The management of the national RDI systemPNCDI’s Subprogram 1.4. Support provides indirect support tools necessary for the proper functioning of the national R&D system (including the development of human resources specialized in the management and marketing of research results). Mainly but not exclusively, the following types of projects will be used:- competence centers (science and technology specialization projects and related support areas: RDI, intellectual property, technology transfer, technology brokers, marketing, etc.);- procurement projects - modernization and automation of administrative capacity for the management of R&D activity;- support projects for substantiating RDI policies, for scientific information and documentation, for the communication and popularization of science.

Subprogram 3.6. Support provides assistance for the formation of consortiums with international partners and for stimulating participation and supporting the Romania’s representation in international research organizations, programs and initiatives.

The project "Developing the administrative capacity of MRI to implement some actions established in SNCDI 2014-2020" (SIPOCA 27) aims at adapting the structures, optimizing the process and preparing the human resources within ANCSI for the implementation and implementation of evidence-based public policies, in order to correlate strategic planning with

Functional IT systems (Number) 0 0 1 1

National registries (Number)

0 0 1 4

62



Target 2018

Target 2019

Target 2020

Target 2021

program budgeting.Funding is given for:- establishing an Integrated Information Technology Platform for RDI (ITP-RDI), which performs activities of collecting, aggregating, processing and distributing information.- Achieving the strategic guidance mechanism, based on entrepreneurial discovery and increasing the degree of integration of the RDI system in the national economy, in response to the need to improve the monitoring and evaluation process of SNCDI.- Staff training and skills achievement for substantiating and implementing program budgeting.

63

Annex 4: Institutional profile

Policies and strategies

Policies Strategies

EU State Aid Policy50

EU Industrial Policy51

EU Innovation Union Policy52

EU Cohesion Policy53

Europe 2020 Strategy54

European Semester55

Strategy for the public administration consolidation 2014-2020

National Competitiveness Strategy 2015-2020 (GD no.775/2015)56

National Strategy57 for RDI 2015-2020 (GD no. 929/2014)

National Plan for RDI 2015-202058 (GD no. HG 583/2015)

National Reform Plan59

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 for Research and Innovation is the governance structure, coordinating the majority of the institutions.

50 http://ec.europa.eu/competition/state_aid/overview/index_en.html . 51 https://ec.europa.eu/growth/industry/policy/eu_en . 52 http://ec.europa.eu/research/innovation-union/index_en.cfm . 53 http://ec.europa.eu/regional_policy/index_en.cfm . 54 https://ec.europa.eu/info/strategy/european-semester/framework/europe-2020-strategy_en . 55 https://ec.europa.eu/info/strategy/european-semester_en.56 http://legislatie.just.ro/Public/DetaliiDocumentAfis/171941 . 57 http://www.research.gov.ro/ro/articol/3978/politica-cdi-strategia-nationala-de-cercetare-dezvoltare-si-inovare-2014-2020.58 http://www.research.gov.ro/ro/articol/1434/programe-nationale . 59 https://ec.europa.eu/info/publications/2016-european-semester-national-plan-romania_en .

64

https://ec.europa.eu/info/publications/2016-european-semester-national-plan-romania_en

http://www.research.gov.ro/ro/articol/1434/programe-nationale

http://www.research.gov.ro/ro/articol/3978/politica-cdi-strategia-nationala-de-cercetare-dezvoltare-si-inovare-2014-2020

http://www.research.gov.ro/ro/articol/3978/politica-cdi-strategia-nationala-de-cercetare-dezvoltare-si-inovare-2014-2020

http://legislatie.just.ro/Public/DetaliiDocumentAfis/171941

https://ec.europa.eu/info/strategy/european-semester/framework/europe-2020-strategy_en

http://ec.europa.eu/regional_policy/index_en.cfm

http://ec.europa.eu/research/innovation-union/index_en.cfm

https://ec.europa.eu/growth/industry/policy/eu_en

http://ec.europa.eu/competition/state_aid/overview/index_en.html

Figure 7. 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.

65

Organizational chart of the Ministry for Research and Innovation, as per GD 13/201760

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

66

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

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. Smart 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.

Smart 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

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Sector / Organization Threat Probability Impact

RDI Lack or decrease of funding for RDI Big Big

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

Negative Medium Reduced RDI fundingDelay / abandonment of ongoing projects

Avoiding pro-cyclical measuresLimiting measures with a potential negative impact on the business environment (eg raising the

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the state budget and rising public spending (repeating the 2008 scenario)

Cancelling private investment in RDI

minimum wage)Improve the collection of revenues 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

Continuing the process of de-bureaucracy

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blurring; Generates uncertainty in high 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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Annex 5 Legislative proposals in the Annual Government Working Plan submitted by the Ministry of Research and

Innovation for 2018

No. Legislative proposal in AGWP Estimated date for discussion in Govt meeting

1. Government Decision for the modification and completion of GD 403/2017 regarding the approval of the Grant Program for RDI ”Grant for young researchers King Carol I”

Under consultation on MRI website – Trim. 3 2018

2. Government Decision for the modification and completion of GD 1265/2004 regarding the approval of the Methodological norms for contracting, financing, monitoring and evaluating programs, RDI projects and actions comprised in the NRDIP

Trim. 1 2019

3. Government Decision for the modification and completion of 1266/2004 approval of the Methodological norms for contracting, financing, monitoring and evaluating the projects in the sectoral RD plans.

Trim. 1 2019

4. Law proposal for the modification and completion of Law 319/ 8 July 2003 regarding the statute of RD personnel

Under preparation (internal discussions) - Trim 4 2018

5. Law proposal for the modification and completion of GO 57/2002 regarding the activity of scientific research and technological development.

Trim. 1 2019

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

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