| National policy debates centre on boosting business productivity through innovative technology adoption and skills enhancement. Discussions also gravitate towards fortifying the national innovation system and optimising resource allocation, and on facilitating support for start-ups and SMEs. | |
| The themes most frequently addressed by policy initiatives are financial support and targeted support to SMEs and young innovative enterprises. | |
| Networking and collaborative platforms is the most common form of non-financial support. | |
| Policy initiatives often indicate yearly budget expenditures ranging between 1M and 20M EUR, which typically address start-ups and combine forms of financial and non-financial support. | |
| The largest budgets are allocated for schemes providing corporate tax relief for R&D and innovation. |
In their response to the 2023 EC-OECD STIP survey, countries indicated the main policy debates around government support to Innovation in firms and innovative entrepreneurship (raw data included below in Annex A). Several patterns can be identified from these responses:
1. Improving business productivity:
2. Strengthening the national innovation system:
3. Modalities of support:
4. Dedicated support for start-ups and SMEs:
Themes within the Innovation in firms and innovative entrepreneurship policy area are ranked in Figure 1 by the number of initiatives addressing them. By a wide margin, the most frequently addressed theme is Financial support to business R&D and innovation, covering various types of funding schemes such as tax incentives, grants and debt financing programmes. Secondly comes Targeted support to SMEs and young innovative enterprises, including various types of policies addressed to firms of this size and age (as opposed to large or established firms). Policies supporting young SMEs often include specific grants and subsidies, innovation vouchers and technology extension services, among other forms of support. This theme is followed by Non-financial support to business R&D and innovation, which consists of programs for the provision of non-monetary assistance such as technical expertise, training, mentoring, networking and marketing and advertising support.
While, unsurprisingly, Figure 2 shows that Firms are the most frequently addressed target group, it is worth noting how many more policies address a specific size (SMEs) compared to firms by age (Young firms (1 to 5 years old)). SMEs are followed by Entrepreneurs, with keywords (obtained when hovering the corresponding bar with the mouse pointer) suggesting that many policies relate to start-ups, venture capital, business development and human capital. Some of these policies also target Private investors, seeking to encourage their contribution to the entrepreneurial activity. Many policies involve Public research institutes, Higher education institutes and Established researchers as well, e.g. aiming to commercialise the knowledge produced by these research actors and also fostering public-private collaborative projects. Furthermore, several reported policies aim to address knowledge intermediaries: primarily Incubators, accellerators, science parks or technoparks but also Industry associations and Technology transfer offices (see knowledge exchange and co-creation policy area).
Following a similar pattern as in the Public research system policy area, Grants for business R&D and innovation are the most frequently used policy instrument, followed by Strategies, agendas and plans. Business sector strategies usually address topics such as digital transformation, artificial intelligence, resilience and tecnological development (see keywords). Networking and collaborative platforms are used as the main form of non-financial support. These aim to gather actors for various business-oriented goals such as building entrepreneurial networks, collaborative research projects and technology development around specific fields, e.g. artificial intelligence and energy Another common form of non-financial support is Technology extension and business advisory services. These services cover aspects such as operations, production, quality, logistics, workforce skills, learning capabilities and the adoption of new technologies. They often have the objective of increasing firm productivity and efficiency. Concerning innovative entrepreneurship, Equity funding plays a major role in promoting access to finance for start-ups, young firms and SMEs. Policies using this instrument often involve business angels and investment funds to promote seed funds and venture capital (see keywords). Finally, while relatively not numerous in the database, Tax or social contributions relief are a key instrument, allocating large amounts of indirect funding to firms' STI activities via tax credits, as highlighted below.
Most initiatives within the Innovation in firms and innovative entrepreneurship policy area reporting budget data have up to 20M in EUR yearly expenditures (Figure 4). Keywords indicate that initiatives within these ranges often address start-ups and include forms of non-financial support (i.e. expertise, technology transfer and training) in addition to financial aid. Initiatives with higher budgets appear to be more frequently associated with applied research and commercialisation, i.e. seeking to help firms leverage public research results (see the Knowledge exchange and co-creation policy area). Schemes using Corporate tax relief for R&D and innovation usually allocate the largest funds, as indicated by the keywords for budget ranges superior to 500M EUR.
Figure 5 shows that Türkiye has reported the largest number of initiatives in this policy area, followed by Portugal, the Poland and Korea. The chart shows only the number of policy initiatives reported by countries and gives no indication of their scale or scope. The figure should therefore be interpreted with care. Clicking on a given bar in the chart will bring you to the corresponding country dashboard for Innovation in firms and innovative entrepreneurship policies.
Table 1 contains the answers provided by countries (and other entities) to the following question: Briefly, what are the main ongoing policy debates around government support to business innovation and innovative entrepreneurship? You may use the table's search box to filter the data by country or keyword. You may also dowload the data in Excel format.
Table 1. Policy debates in the Innovation in firms and innovative entrepreneurship policy area
| Response | |
|---|---|
| Austria | The Research, Technology and Innovation (RTI) strategy identifies applied research as a crucial catalyst towards fostering a functional, transparent, and progressive RTI ecosystem. Consequently, an expansive innovation concept is required. This concept not only includes technological innovation but also societal, creative, and organisational innovation. It encompasses the entire innovation chain and aligns with Austria's economic needs, incorporating elements like grants, liabilities, incubators, property rights, and venture capital. The strategy also aims to facilitate the entry of Small and Medium Enterprises (SMEs) into R&I and to bolster the expansion of R&I activities by leading businesses. Furthermore, the Federal Government's climate and transformation initiative aids the economy in navigating towards sustainable transformation. |
| Belgium - Brussels Capital | In recent years, significant emphasis has been placed on the business innovation cycle. Key questions arise such as: how can we ensure public support for Research, Development, and Innovation (RDI) covers each stage of the cycle? How can we guarantee that business R&D culminates in new or improved products being introduced into the market or society broadly? The Research and Innovation (R&I) mechanisms launched in recent years have contributed towards encompassing the entire innovation cycle. The new Regional Innovation Plan of the BCR aims to stimulate discussion on the necessary tools to support entrepreneurs during the most advanced phases of innovation. A priority in this regard will be the development of testing labs and living labs, particularly through enhanced cooperation with other public bodies engaged in economic and environmental policies. An ongoing debate revolves around the importance of not only supporting traditional R&D actors, but also non-traditional RDI actors such as social entrepreneurs and non-profit organisations. This aligns with the concept that a diverse group of actors collaborating will facilitate the development of "social" innovations, addressing a wide array of pressing societal challenges. As discussed below, societal challenges (including climate change, pollution, mobility, social welfare, etc.) have become prominent in the policy debate in Brussels. Finally, the General Policy Declaration of the Government of the Brussels-Capital Region (2019-24 legislature) asserts that by 2030, all public support for businesses should be channelled towards socially and ecologically responsible activities. This implies that policy evaluators will need to resort to policy evaluation methods capable of assessing the societal and ecological impacts of business RDI projects. |
| Belgium - Federal government | As the responsibilities for Research and Innovation (R&I) were transferred to the regions and communities in the 1990s, the remaining federal-level competencies in relation to business research and development (R&D) and innovation are limited. Federal-level support is confined to niche areas such as backing for the space sector as part of our European Space Agency (ESA) membership. Within this context, the agenda of the ESA Council at Ministerial Level, held in late 2019, continues to be a subject of policy debates. Which programmes will Belgium subscribe to and why? What does the relationship between European Commission (EC) space initiatives and the ESA space programmes look like? How can we enhance the participation of Belgian space stakeholders in EC space programmes by supporting them in ESA programmes? The Belgian space strategy has several objectives, including: - Promoting scientific actors and positioning them as prime investigators for scientific missions in Europe and globally - Enhancing the competitiveness of the industry in Europe and worldwide - Supporting space programmes that encourage international collaboration. |
| Belgium - Flanders | In its policy memorandum for 2019-24, the Flemish Advisory Council for Innovation and Entrepreneurship (VARIO) emphasises the importance of cultivating a vibrant and dynamic economy. The memorandum underscores the necessity of not only focusing on innovative high-growth and young companies but also on more established companies entering a new phase of growth, recognizing their significant role in job creation. Flanders aims to foster entrepreneurship, promote an entrepreneurial culture, and facilitate the growth of small and medium-sized enterprises (SMEs). Efforts will be made to eliminate barriers faced by SMEs when it comes to innovation and business operations. Special attention will be given to expanding the innovation base to encompass small businesses, achieved through tailored procedures and improved collaboration with clusters, thereby reinvigorating productivity growth. In 2022, substantial efforts were made to support businesses in light of the energy crisis following the Ukrainian invasion. Currently, the focus is on gradually phasing out these measures, contingent upon the stability of the energy situation. |
| Belgium - Wallonia | A recurring debate in Wallonia revolves around innovation in small and medium-sized enterprises (SMEs). The majority of the Walloon industrial environment consists of small businesses, many of which do not actively engage in innovation. Given the current economic climate, adopting a more innovative approach could enable these companies to enhance their activities, especially in new markets. The accessibility of SMEs to the government's innovation support system remains a central question, despite ongoing reforms initiated by the government. In recent years, there has been positive progress in terms of research results valorization. To align with the reforms of the innovation ecosystem and economic actors, it is crucial to reinforce the complementarity of existing instruments. This will provide integrated and coordinated support and assistance mechanisms to facilitate the commercial development phase. As we move up the TRL scale, the availability of RDI support instruments diminishes. This poses a particular challenge for advancing research projects closer to the market. Therefore, it is essential to ensure appropriate recognition of R&D activities to avoid hindering the financing of projects situated at higher TRL levels. Furthermore, strengthening collaborations between research actors, including companies, universities, research centers, and colleges, through resilient ecosystems, will enhance development potential. It is important for universities, colleges, and research centers to proactively engage with companies to understand their needs and provide suitable responses. This dynamic should be encouraged and supported, particularly through regional RDI support instruments. |
| Belgium - Wallonia-Brussels Federation | In 2023, Belgium - Wallonia-Brussels Federation did not provide information on 'Innovation in firms and innovative entrepreneurship' policy debates. |
| Bosnia and Herzegovina | In its 2017-21 strategy for scientific and technological development, "Knowledge for Development", (which is still used) the Ministry of Scientific and Technological Development, Higher Education and Information Society (MNRVOID) of Republika Srpska defines support for innovative entrepreneurship, notably in four of its six objectives: - Objective 2: encourage the internationalisation of science and innovation - Objective 3: encourage co-operation of the scientific R&I community with economic actors - Objective 4: create conditions for increasing allocations for science and innovation |
| Brazil | Over the past two years, significant focus has been placed on the debate surrounding the National Innovation Policy, adopted by Executive Order No. 10 534/2020, and the National Innovation Strategy, adopted by Resolution CI No. 1 on July 23, 2021. The National Innovation Policy has been designed to address enduring demands related to enhancing governance and achieving better coordination of innovation policies and initiatives among diverse government bodies and agencies. In conjunction with the National Innovation Strategy, it also aims to establish clearer priorities and directives for the national innovation system. Both the policy and the strategy are the outcomes of comprehensive debate with stakeholders and society, facilitated through targeted workshops and public consultations. Another significant accomplishment was the enactment of the Startups Innovative Entrepreneurship Legal Framework (Complementary Act No. 182/2021). Among a range of incentives for innovative entrepreneurship, the new legislation introduces more flexible rules for start-ups, such as regulatory sandboxes and simplified corporate legal requirements, in an effort to reduce regulatory burdens and administrative costs. Investments in innovative start-ups will also be eligible for tax incentives, in line with the current legislation on R&D tax incentives for business innovation. Specific rules have also been introduced to promote R&D procurement targeting innovative start-ups. |
| Bulgaria | The National Development Programme BULGARIA 2030 serves as a top-tier strategic framework document in the hierarchy of national programming documents, determining the vision and overarching goals of development policies across all sectors of general government, inclusive of their territorial dimensions. One of the primary priorities highlighted in the programme is enhancing the competitiveness of the Bulgarian economy and its transition into a knowledge-based and smart growth economy. The achievement of this objective is the focus of a targeted policy in three interlinked priority areas: elevating the role of science in the country's economy, fostering a smart industry through the promotion of real economy digitisation, and improving the quality of human capital. In the realm of science and scientific infrastructure, the main policy efforts revolve around encouraging and accelerating the process of innovation development and implementation across various economic sectors, with a crucial role played by educational institutions, scientific centres, businesses, and their interrelationships. The Innovation Smart Specialisation Strategy (updated for the period 2021-27) serves as the key policy document guiding innovation policy design, thematic priorities, regionalisation, and funding, as well as implementation of programmes and measures for research and technological transformation. The ultimate goal is to stimulate innovation growth and boost the competitiveness of Bulgarian industry and society. A distinctive governance and monitoring mechanism is designed to engage all relevant stakeholders, develop and mobilise regional innovation capacity, and adjust objectives, priorities, and measures to swiftly changing global political and technological trends. Bulgaria's Digital Transformation Strategy 2020-30 aligns with the European "Digital Europe" policy. The strategy sets the policy framework for Bulgaria's digital transition over the next decade with the objective of reaching an average European level of digital technology penetration in the Bulgarian economy and society, enhancing state administration efficiency, effectively tackling primary social challenges, and increasing citizen security. Research and innovation, digital governance, and cyber security are some of the impact areas prioritised. Under the aforementioned programmes and strategies, measures to stimulate research and innovation of public and private scientific institutions, companies, and clusters will be supported, preparing the Bulgarian economy for the dual digital and green transformation. The newly established Ministry of Innovation and Growth bears the primary responsibilities to: - Initiate and develop projects and programmes financed by national budget funds, EU funds for the period 2021-2027, international donors, and other organisations that align with the goals and priorities of national policy and the European Union's priorities in the field of innovation and technological development; - Evaluate the country's innovative development based on effectiveness indicators, identify key development areas in relevant sectors and spheres requiring early application of modern technologies and innovations; - Participate in coordinating public administration results concerning the implementation of set R&D goals in sector strategies and policies, scientific research, and analytical institutions and other organisations involved in implementing innovative ideas, developments, and technologies, and to prepare and summarise proposals for enhancing innovative activity; - Coordinate the process of "entrepreneurial discovery" and participate in developing and implementing the Innovation Strategy for Intelligent Specialisation of the Republic of Bulgaria and introducing innovations in enterprises; - Collaborate with the Ministry of Education and Science to develop policies and models ensuring the sustainability of research and innovation infrastructures, as well as access and usage of research and innovation equipment and capacity. The Ministry of Education and Science and the Ministry of Innovation and Growth have collectively developed a 'concept' containing several proposed legal amendments. One of these is the creation of an Innovation Council intended to facilitate inter-ministerial coordination of public research. Furthermore, the concept proposes to integrate elements of collaboration between academia and business and aspects of technology transfer and intellectual property. |
| Canada | Canada recognises the importance of business innovation for future economic growth and competitiveness. However, the country has experienced a decline in business expenditure on research and development (BERD) as a percentage of GDP over the past two decades. To address this trend, the establishment of the Canada Innovation Corporation (CIC) was announced in the 2022 federal budget. This new corporation will have a focused, outcome-driven mandate to increase Canadian business expenditure on R&D across all sectors and regions of Canada, and help to generate new and improved products and processes that will support the productivity and growth of Canadian firms. The CIC, expected to begin operations in 2023, will be operationally independent from the government but accountable to Parliament through the Minister of Innovation, Science and Industry. The Government of Canada has primarily supported business innovation through tax incentives, notably the Scientific Research and Experimental Development (SR&ED) tax program. SR&ED provides automatic support to businesses of all sizes and sectors without t pre-assessment or pre-approval of R&D expenditures. In recent years, there has been a slight rebalance towards more direct support for BERD, including the creation of programs like the Strategic Innovation Fund and Global Innovation Clusters in order to invest in the projects of innovation businesses and to speed up growth in some of Canada's most promising industries. Canada's innovation strategy includes sector-agnostic tools to support innovation across all sectors and regions. However, more targeted approaches have emerged to address specific priorities, such as responding to tariffs, COVID-19, and climate change. Technology-specific strategies have also been developed to support areas like genomics, artificial intelligence (AI), and quantum technologies. In terms of supporting innovation, Canada has employed both supply-side and demand-side programs. While traditional approaches have focused on supply push through tax credits and grants, which are still dominant in Canada, demand-side approaches like challenge prizes and innovation procurement have started to gain importance with the introduction of initiatives in recent years, such as Innovative Solutions Canada, Explore IP and Innovation Challenges. The Advisory Panel on the Federal Research Support System has recommended the creation of a mission-oriented Canadian Knowledge and Science Foundation to pursue more demand-side instruments. To streamline and enhance the effectiveness of innovation programs, the government reduced the number of business innovation programs from 92 to approximately 35 following a horizontal review in 2018. This has allowed for stronger relationships with innovative entrepreneurs focused on addressing major policy challenges. For example, Natural Resources Canada is partnering with proponents to advance technology for mining critical minerals used in the production of electric vehicles, contributing to Canada's participation in the growing battery materials market. |
| Chile | Chile ranks amongst the countries with the lowest levels of R&D investment among OECD countries, contributing less than 0.4% of the gross domestic product, with less than a third of that amount financed by the private sector, in stark contrast to knowledge-intensive economies. Consequently, Chile has slipped in various indices and rankings concerning complexity, innovation, competitiveness, and other aspects. This decline can be attributed in part to the fact that the nation's principal industries are not R&D-intensive, presenting a significant challenge to boosting national R&D expenditure. Possible solutions to this predicament include fostering an ecosystem of science-based start-ups and adopting an industrial policy, following the example of the green hydrogen initiative. The Ministry of Science, Technology, Knowledge and Innovation (MSTKI) has prioritised the promotion of the country's science and technology-based enterprises. Initially, the ministry identified and analysed these types of start-ups (amounting to approximately 600) and subsequently developed the Startup Ciencia programme to support them. It is the ministry's conviction that these nascent science- and technology-based companies will enhance productivity, diversify the economy, add value to existing industries, and invest in future R&D. The government is exploring options to make the tax credit more comprehensible and accessible to science and technology start-ups. One potential solution would be to revise the R&D Law so that start-ups that experience tax losses can receive a refund for the tax credit that a profitable company would typically receive. The government has also observed a rise in the level of venture capital (VC) in the country, spurred by the entry of new domestic participants (e.g. family offices) and international players, resulting in a surge in the average investment tickets. A longstanding debate is whether the government should play a more significant role in cultivating this market to attract the private sector. At present, the government co-finances VC funds by leveraging up to three times more private resources through debt. Certain opinion leaders posit that the establishment of a VC fund of funds, in which the government serves as a shareholder, could be an alternative solution to facilitate this. Others, conversely, suggest that the current situation remains the optimal choice until Chile celebrates its first "unicorn", a milestone reached following the sale of Cornershop to Uber. |
| Colombia | In 2023, Colombia did not provide information on 'Innovation in firms and innovative entrepreneurship' policy debates. |
| Costa Rica | There are ongoing discussions regarding the financing of start-ups and small and medium-sized enterprises (SMEs) in biotechnology, nanotechnology, and convergent technologies. These sectors often require long-term support, but current funding instruments typically have limited durations of two to three years. To address this challenge, there are discussions about linking or concatenating different existing funds to provide longer-term support. Work is underway to develop programs that can cater to the specific needs of these industries. Another area of focus is simplifying the application process for public funds. Despite a complicated regulatory framework, efforts are being made to streamline applications for entrepreneurs, SMEs, and other actors. One example is the inclusion of agriculture SMEs in certain programs and the creation of specific programs for the creative economy. These initiatives aim to broaden the scope of eligibility beyond just SMEs and incorporate actors from other sectors. Furthermore, there is an emerging debate on how to integrate larger companies within the SME value chain to increase investment in research, development, and innovation. While existing programmes primarily target SMEs, there is recognition that the overall value chain requires consistent development and stimulation. At present, there are no specific proposals to address this challenge, but discussions are ongoing to explore potential solutions. |
| Croatia | Croatia recognises the crucial role of innovation in enhancing the competitiveness of SMEs, the significant function of SMEs within national innovation systems, and the importance of access to information, financing, and networking for facilitating the innovation process. During the preparation and implementation of the Operational Programme Competitiveness and Cohesion 2014-2020 (OPCC), considerable emphasis was placed on supporting the growth and development of entrepreneurship, a globally acknowledged driver of economic development and job creation. This included providing direct support to R&D investments and promoting innovation in enterprises, thereby encouraging collaboration between science and the economy, and fostering innovative start-ups and spin-offs. Consequently, substantial progress has been made in the operation of the Croatian innovation system. Thematic Innovation Councils for each thematic priority area of the Smart Specialisation Strategy 2016-2020 have been established, providing guidelines for the development and strategic management of each area. The entrepreneurial discovery process's bottom-up approach connects the business sector, scientific research community, and public authorities, following the triple helix model. The work and recommendations of the Thematic Innovation Councils directly impact the national innovation system and the policy for financing RDI projects from European Structural and Investment Funds and other sources. Strategically, policies that support companies investing in performance improvement and innovation are grounded in the Smart Specialisation Strategy. This strategy sets priorities and constructs a competitive advantage by developing and aligning research and innovation strengths with business needs, effectively addressing emerging opportunities and market developments. In Croatia, a positive correlation exists between R&D investment and productivity at the company level, particularly in smaller and younger enterprises. Concurrently, the research sector plays a significant role. The Ministry of Economy and Sustainable Development, through OPCC 2014-2020, made available â¬542 million via Priority Axis 1, 'Strengthening the Economy through R&D', and Priority Axis 3, 'Business Competitiveness'. This funding aims to stimulate R&D activities to develop new products and services, create a favourable innovation environment through investment in supportive infrastructure for entrepreneurial R&D activities, and bolster SMEs' capacity to innovate, leading to the marketing of new, innovative products and services. The Smart Specialisation Strategy of the Republic of Croatia for 2016-2020, the draft new Smart Specialisation Strategy until 2029 (expected to be adopted in Q2 2023), and the National Development Strategy of the Republic of Croatia until 2030 all recognise the importance of partnership among the private sector, public sector, and non-governmental organisations, as well as the catalytic role that cluster initiatives can play. The green and digital transitions form the core of the National Development Strategy, the Multiannual Financial Framework (MFF) 2021-2027, and National Recovery and Resilience Programme 2021-2026. Directing resources towards these areas will enhance the position of the Croatian economy within global value chains. Transitioning towards competitiveness, sustainability, and a digital industry offers excellent opportunities, yet it also necessitates public and private investment in modernising and diversifying production. Through the National Recovery and Resilience Programme 2021-2026, under the component 'Resilient, Green and Digital Economy for Entrepreneurs', the Ministry of Economy and Sustainable Development has directly envisaged measures to encourage the acceleration and commercialisation of innovation, alongside investments to enhance enterprise development capacity. This is designed to increase global market competitiveness and stimulate investments from start-ups of micro, small, and medium-sized enterprises (up to 5 years old) that develop knowledge or high-tech-based innovations. Meanwhile, under the component 'Boosting Research and Innovation Capacity', the Ministry of Science and Education encourages R&D in enterprises with lower technology readiness levels, collaborative research between the industry and research community, and the development of entrepreneurial skills within the research community. In this way, the NRRP plans to elevate the level of investment in research and innovation and stimulate company and research organisation activities that contribute to the creation of value-added products and services. In the new programming period under the Competitiveness and Cohesion Programme 2021-2027, the Ministry of Economy and Sustainable Development, as well as Ministry of Science and Education to some extent, will focus their interventions on strengthening the research and innovation capacity of entrepreneurs (both SMEs and large enterprises), utilising advanced technologies, capitalising on digitalisation, increasing the growth and competitiveness of SMEs, and developing skills for smart specialisation, industrial transition, and entrepreneurship. |
| Cyprus | Pillar B of the National Research and Innovation (R&I) Strategy 2030, being developed by the Deputy Ministry of Research, Innovation, and Digital Policy (DMRID), focuses on creating a comprehensive framework to support innovation and promote entrepreneurship in Cyprus. It specifically aims to facilitate the exploitation of research results, attract investments, and encourage the establishment of international innovation and high-tech enterprises. The Action Plan accompanying the strategy will include specific measures, actions, and initiatives to facilitate the commercialization of research results, support startups and innovative companies, foster collaboration between academic and research institutions and the private sector, and attract investments in R&I. To support these objectives, schemes have already been implemented by the Research and Innovation Foundation (RIF) through the National Framework Programme for R&I "RESTART 2016-2020." As part of Component 3.2 of the Cyprus Recovery and Resilience Plan, the government has extended the application of a tax scheme for investing in innovative companies, certified by the DMRID, to legal entities . This scheme provides 50% tax relief, up to 150,000 euros per year. Additionally, increased tax exemptions for R&D investments and for employees from third countries working in Cyprus are key incentives included in the "Strategy for attracting businesses for activities or/and expansion of their activities in Cyprus," adopted by the Council of Ministers in October 2021. These tax incentives aim to enhance Cyprus' position as an international high-growth business centre. Furthermore, the state-funded Equity Fund is designed to support SMEs and startups by providing financial support through equity or quasi-equity contributions. The state's contribution to the Fund is 30 million euros , providing additional resources to support R&I initiatives in Cyprus. |
| Czech Republic | The Government's programme statement of 6 January 2022 highlights the Czech Republic's aspiration to become a leader in excellence, science, research, and innovation across various fields within Europe. Science and research are seen as key drivers to foster critical thinking and a deeper understanding of the world in broader contexts, contributing to a shared perception of reality. Despite having a strong industrial and research foundation, along with modern research infrastructure, it is essential for the Czech Republic to effectively utilise its research and development capacities and adapt to the rapidly evolving technological landscape. Consequently, the government will prioritise enhancing the research management system, human resources, funding mechanisms, technology transfer processes, and public awareness in these areas. Recognising digitisation as a crucial aspect of society as a whole, the Czech Republic aims to create favourable conditions for the growth of innovative businesses. To streamline the coordination of the digital agenda, the government has approved the "Digital Czech Republic" strategy, which encompasses three main elements: positioning the Czech Republic within a digital Europe, developing an information concept for digital public administration, and fostering a digital economy and society. The Czech Republic faces challenges in its start-up ecosystem and the utilisation of academic outputs. To address these issues, the government is implementing a comprehensive support system for innovative start-ups and promoting collaboration among stakeholders within the innovation ecosystem. Intellectual property protection will also be a key focus, with efforts to enhance IP protection tools and raise awareness in this area. This includes the promotion of systematic education in intellectual property from an early stage, starting from elementary school, as well as encouraging patent protection and enforcement. The Czech Republic has embraced the "smart specialization strategy" principle, which entails concentrating financial, human, and material resources to support the development of priority areas in oriented and applied research and innovation. These priority areas hold significant potential for creating long-term competitive advantages for the country. In January 2021, the National Research and Innovation Strategy for Smart Specialization (RIS3) for the period 2021-2027 was approved by the Government as a crucial document that guides attention and support in this direction. Another key strategy, the National Artificial Intelligence Strategy of the Czech Republic (NAIS) emphasises the importance of international cooperation in the field of artificial intelligence and active participation in innovation initiatives and the development of new technologies. |
| Denmark | Denmark has consistently achieved high scores in the European Innovation Scoreboard, positioning it as an "Innovation Leader" in Europe. The country has made substantial investments in both private and public research, alongside continuous efforts to create optimal conditions for knowledge production. However, despite its status as an "Innovation Leader," Denmark has yet to fully realise the anticipated outcomes from increased investments in public research, the establishment of more autonomous research institutions with stronger leadership, and the existence of a highly sophisticated and well-developed support system for innovation comprising various specialised institutions. In a 2019 international review of the Danish knowledge-based innovation system, it was noted that previous reforms focused on minimising the need for coordination rather than managing linkages. Consequently, there has been a dominance of narrow, project-oriented funding streams that fail to support the development of ecosystems or broader innovation domains crucial for addressing societal and global challenges. In September 2020, the Danish Government published Denmark's first national strategy for investments in green research, technology, and innovation. The strategy introduced four missions aimed at tackling significant societal challenges and leveraging Denmark's research strengths. These missions were developed in collaboration with relevant stakeholders, including other ministries, and will be pursued through green partnerships involving knowledge institutions, businesses, public authorities, and private entities. The strategy provides a long-term direction for research and innovation in Denmark and aligns with the government's climate law and objectives, which seek to reduce greenhouse gas emissions and position Danish industries as leaders in the green transition, thereby benefiting exports and generating green jobs. The implementation of the strategy is facilitated by Innovation Fund Denmark, the largest public fund for innovation, which plays a crucial role in administering public strategic research and innovation funds through competitive processes. The fund is also mandated to coordinate its investments with other public funds and institutions, such as the Danish Board of Business Development, in accordance with the new law governing its operations passed in June 2021. These developments reflect Denmark's commitment to fostering research, technology, and innovation, particularly in the context of addressing climate change and driving sustainable economic growth. |
| Estonia | Following political agreement to maintain public sector R&D investment at 1% of GDP, various initiatives have been launched. The Estonian Employers Confederation has established an Innovation 2% Club, a community of development heads and entrepreneurs who invest 2% or more of their respective companies' turnover in R&D. Alongside this, the 'Innovation Stairs' programme was designed and implemented in 2022. This self-assessment tool aids companies in realising their internal innovation potential. Policy debates concerning business innovation support and innovative entrepreneurship have strongly focused on private-sector stakeholders and their commitment. The trend appears promising: in 2021, Estonian companies broke the all-time R&D investment record. The private sector invested a total of â¬42 million more than the previous year, accounting for 56% of total R&D investments in 2021. This investment was declared by 370 companies - 87 more than in 2020. Since 2019, private sector R&D investments have shown steady growth, and the number of R&D personnel employed by companies has doubled over the last six years. Recent discussions have also included the establishment of Estonia's first Research and Technology Organisation (RTO) - the decision to launch this has already been made. Other topics include the pilot implementation of an R&D tax exemption. In early 2023, a deep tech action plan was adopted to foster the new wave of innovation. Furthermore, the successful roll-out of the applied research and experimental development programme is continuing. |
| European Union | One of the priorities of the EU research and innovation (R&I) policy debate concerns how to direct industrial R&I agendas towards more investments in sustainability. Part of the overall strategic objective of Horizon Europe , is to successfully address climate change and contribute to the attainment of Sustainable Development Goals. A set of policy actions were taken at the EU level to boost the transition to climate-neutral industries (i.e. zero-pollution and zero-waste), including support to the European Green Deal and new European partnerships. The New European Innovation Agenda (NEIA) and the focus on deep-tech innovation represents Europe's response to reduce the GHG emissions, to make our economies more digital and to guarantee Europe's food, energy and raw materials security. Funding streams have been provided to support the objectives of the NEIA. For instance, the European Innovation Ecosystems Work Programme of Horizon Europe and the Startup Europe initiative, supported by the European Innovation Council (EIC), contribute to the NEIA by facilitating uptake of deep tech innovations and supporting the next generation of innovative companies whose solutions will lead towards a more competitive and sustainable EU. European industrial R&I and investment agendas and the topic of environmental sustainability are also linked to strategic value chains and the EU must tackle further challenges related to strategic autonomy and technological sovereignty. EU R&I efforts will pay specific attention to key parts of strategic technology supply chains: ranging from secure and sustainable supply of raw materials to batteries and other green energy/net-zero technologies, low-carbon industries, space critical components and smart connectivity platforms. Furthermore, low-carbon and circular technologies play a crucial role, especially in energy-intensive industries, which are the source of substantial industrial GHG emissions. Recently, the Commission developed ERA industrial technology roadmaps to identify R&I investment needs, identify specific technologies for development, uptake and deployment, business models, and framework conditions to speed up innovation. The ongoing policy debates also address the conditions for scaling-up innovative and breakthrough solutions in particular by SMEs, where an analysis by the European Commission confirmed the role of technology infrastructures and the need for a European strategy. |
| Finland | In innovation policy, a key target is to elevate R&D expenditure to 4% of GDP by 2030 to bolster productivity through business renewal. This parliamentary commitment has spurred discussions on the vital role of R&D and innovation in sustainable growth, productivity, competitiveness, and the resolution of societal challenges. The goal is ambitious and necessitates significant investments from both public and private sectors. It is critical to encourage the business sector to augment R&D investments (approximately two-thirds of total R&D expenditure) and utilise them effectively. Progress in this direction is exemplified by the 57 businesses of the Technology Industries of Finland that have committed to increasing their R&D investments in alignment with the national target. The policy outlines of the parliamentary RDI working group and the Government R&D Funding Act emphasise the need to encourage private R&D investments. To support the 4% target, the government prepared an Act on Research and Development Funding which came into effect at the start of 2023. The Act's main objective is to render the innovation environment in Finland more predictable and attractive for long-term R&D investments. The Act stipulates annually increasing levels of government R&D funding (1.2 % of GDP by 2030). According to this legislation, an increase in government R&D funding can only be curtailed if the private sector's R&D expenditure does not align with the target. This underscores the importance of leveraging business expenditure on R&D with government funding. The parliamentary RDI working group has also adopted principal guidelines for enhancing the research and innovation system in Finland (which include, for instance, principles of predictability, competitiveness, effectiveness, collaboration, and internationality) and has prepared the first multiannual funding plan for allocating government R&D funding. A more detailed multiannual funding plan will be prepared in accordance with the Act on R&D funding. Encouraging a wider group of SMEs to participate in R&D and innovation activities is a topic of much debate. In Finland, merely about 12% of SMEs engage in R&D and the majority (65%) of business R&D expenditure is provided by large companies. To particularly motivate SMEs to expand their R&D activities, an Act on tax deduction for R&D activities was adopted and implemented at the beginning of 2023. This new tax incentive complements direct government funding for business R&D. The effects of combining both indirect and direct subsidies on business renewal will need careful monitoring in the coming years. The necessity of accelerating the green and digital transition is well recognised in Finland. The twin transition is seen to offer new growth opportunities to businesses, with R&D serving as an essential prerequisite for green and digital innovations. Encouraging businesses to undertake more ambitious R&D activity and fostering favourable conditions for creating radical innovations through stronger cooperation between research and industry are also seen as important. To support an efficient RDI environment, the government published the national intellectual property rights strategy in spring 2022. The national RDI funders, Business Finland and the Academy of Finland, support long-term RDI cooperation between private and public sectors with their funding instruments, particularly the Business Finland Co-Innovation and Co-Creation funding and the Academy of Finland's Flagship Programme. Business Finland's Challenge Competitions for leading companies encourage internationally operating companies to resolve significant future challenges, considerably increase their RDI investments, and build new high-value-added ecosystems in Finland. The winning companies have committed to increasing their RDI investments in Finland cumulatively by almost 1.5 billion euro in total. In addition, the leading companies were to boost RDI cooperation with research organisations and SMEs. Business Finland's funding has been a maximum of 20 million euro for the leading company and 50 million euro for the ecosystem assembled by the leading company. By the end of 2022, Business Finland had committed to finance 14 projects of leading companies totalling approximately 260 million euro. The Academy of Finland has announced a new funding instrument, Innovation Proof of Concept, to promote the utilisation and commercialisation of research as well as other societal impacts. Innovative public procurement is one policy tool to improve public services, enable the creation of reference markets, smoothen the market entrance for new solutions, and consequently generate growth for businesses. According to the RDI Parliamentary Working Group's multiannual plan (2023), funding for business R&D activities through Business Finland should be increased. This boost in funding is aimed at supporting green and digital transitions, addressing societal challenges, enabling the renewal and diversification of companies and industries that promote societal well-being, fostering the creation of new companies, and driving sustainable growth of high value-added businesses. Additional funding will be allocated to companies that demonstrate exceptional capability in RDI activities, risk-taking, investment in intangible assets, and the practical application of RDI activities within their operations. Recent policy discussions have paid less attention to start-ups, focusing more on leading companies and other large enterprises. However, start-ups have been gaining momentum and received a record amount of venture-capital funding in relation to GDP in Europe in 2021. In total, â¬743 million were invested in 182 companies. |
| France | National policies supporting private sector innovation and entrepreneurship consist of a mix of horizontal measures to support R&D and innovation activities and more targeted tools. The most important horizontal measures are fiscal tools (R&D and innovation tax-credit schemes). Most of the targeted tools are part of the 'France 2030' plan. This plan has a total budget of â¬54b and covers the period 2021-2025. The objective of this plan is twofold: on the one side, to catch up the most advanced countries in a number of strategic sectors and, on the other side, to pave the way for the emergence of new industries. This plan targets a limited number of sectoral objectives, related to industrial production (with a major focus on energy transition), well-being (including issues related to health and food) and new frontiers (space, seabed). It focuses also on the key enablers to achieve the objectives: access to strategic raw materials and components, human capital, sovereign digital technologies, higher education and research ecosystems, startups. This plan puts a strong emphasis on emerging actors (i.e. small companies with strong potential impact). Part of the France 2030 plan targets business creation, with a specific focus on deep-tech startups. The objectives of this plan are as follows: - Developing an entrepreneurial culture, especially among students and researchers; - Strengthening support for companies at all stages of development, from seed to scale-up; - Strengthening local and sectoral ecosystems. |
| Germany | Germany is currently exploring strategies to attract fresh contributors to innovation and increase participation. A key tactic of the German Federal Government is to incentivise and enable firms, particularly SMEs and start-ups, to innovate through networks and clusters, thus bolstering their market standing. The Federal Government's approach to STI policy comprises several core elements. One of these is the Transfer Initiative, conceived by the Federal Ministry for Economic Affairs and Climate Action (BMWK), as a response to the challenges of technology transfer between research and the private sector. Another is the From Idea to Market Success approach, encompassing different stages of the innovation process, with the aim of accelerating technology transfer to the market. A significant portion of the BMWK's innovation policy for SMEs is managed by the Central Innovation Programme for SMEs (Zentrales Innovationsprogramm Mittelstand, ZIM). This primarily backs inter-firm collaboration across various areas of market-oriented and high-risk innovation. Furthermore, the Federal Ministry of Education and Research (BMBF) is enhancing cooperation between universities, scientific institutions, and industry (especially SMEs), with open-topic initiatives (clusters4future, research campus, validation/vip+ and SME initiatives/KMI-innovativ) contributing to an open culture of innovation. BMBF initiatives particularly support R&D projects at an early stage of development and the establishment of highly inter- and transdisciplinary networks to encourage innovations with a medium to long-term outlook. These initiatives are currently undergoing further development. The establishment of a future technologies fund (Zukunftsfonds) in 2021 significantly improved the overall financial conditions for young, innovative companies. â¬10 billion has been allocated as additional federal funding to finance start-ups over the next decade. Through this approach, the Federal Government is stimulating the German venture capital market and mobilising private-sector venture capital. The Federal Government will implement a suite of measures to enhance innovation participation and widen the innovation base. To this end, assistance is being extended to knowledge-based start-ups, in particular, and university locations are being developed into innovation hubs. Tax incentives for R&D, introduced in 2020, will be evaluated in 2025 and reviewed based on the evaluation results. Low-threshold funding formats, including those for social innovations, will draw new actors to the R&I system. On 1 April 2022, social entrepreneur and start-up founder Zarah Bruhn was appointed Commissioner for Social Innovation at the Federal Ministry of Education and Research. She is assisting the BMBF in promoting the creation of space and networks for social innovation and its implementation. This also aligns with the goal of the national strategy that the government coalition seeks to establish to foster social innovation and social entrepreneurship by improving general conditions, through financial means, and by strengthening the ecosystem. |
| Greece | Increasing R&D intensity, with a higher contribution from the business sector, and improving innovation performance, are major challenges for Research and Innovation (R&I) policies in Greece. According to the 2023 European Innovation Scoreboard, Greece is included in the "Moderate Innovators" cluster. However, over the past few years, there has been rapid improvement in innovation performance due to positive changes in innovative Small and Medium Enterprises (SMEs). This trend confirms that the efforts undertaken in recent years are starting to bear fruit. A strong impetus for establishing a vibrant start-up ecosystem in Greece was provided by the National Registry for Innovative Start-ups (Elevate Greece), created in 2020. This initiative provides a digital gateway through which Greek start-ups can apply to be officially accredited by the General Secretariat for Research & Innovation, in order to benefit from various incentives, such as funding opportunities, awards, networking, and increased visibility. The Elevate Greece web platform was recently transformed into a public company (SA), dedicated to the promotion and international networking of the Greek innovation ecosystem. Moreover, a debate on streamlining legislation for spin-offs has already resulted in the enactment of a new law (Î. 4864/2021), which provides a clear, simple, and operational legal framework for the creation of spin-offs and the valorisation of knowledge produced in universities and public research centres. In parallel, a new initiative to incentivise patenting in SMEs is under discussion since patenting is among the most significant weaknesses of the Greek innovation system. Specifically, with the help of patent experts having experience outside Greece, researchers with good and bad experiences in applying for patents to various countries and local authorities relevant on patenting, the process of application of a patent, the relevant costs and the timeframe at every stage of the application was identified. At the same time, based on historic data, targets were set. The initiative is expected to be launched in 2024. . Finally, it has been decided to construct two Innovation Districts, one in Attika (Chropei) and another in Thessaloniki (ThessIntec). They will operate under a Public-Private Partnership model and will provide physical collocation space for laboratories of public research entities, R&D departments of firms, academic spin-offs and innovative start-ups, as well as financial organisations. In this way, co-creation and networking between different elements of the quadruple helix will be strongly promoted. The attraction of direct foreign investment in Research and Innovation is also expected. |
| Hungary | The SME Strategy (440/2021. (VII. 23.) Gov. Degree) aims to support businesses' green and high-tech renewal, reduce administrative burdens, recognise high-performing firms, improve the business environment, and enhance e-government tools. One objective of the strategy is to implement training and awareness-raising activities to bolster entrepreneurial knowledge. The Hungarian SME Strategy was developed in cooperation with the OECD. A significant proportion of Hungarian enterprises do not engage in innovation activities or perceive a need to, which negatively impacts the competitiveness of the national economy. To stimulate the knowledge economy, the goals being emphasised are: to enhance companies' competitiveness, augment their productivity by reinforcing different types of innovation, bolster the capacity of RDI companies, and improve their technological standards. The Government's objective is to support businesses at all stages of development by providing them with necessary opportunities. It's important to note that the interventions of the knowledge flow pillar create new research, development and innovation capacities and physical spaces suitable for innovation, which the target groups of the knowledge utilisation pillar can leverage. Therefore, the interventions of these two pillars partially build upon and reinforce each other. Over the last eight years, three technology start-up incubator programmes were launched in Hungary, adopting the Israeli model. The main objective is for privately owned incubators to boost their investments in technology-based start-ups up to 80% through this support. Under this scheme, they can acquire a maximum of 24% of the business share in the start-ups they incubate. In addition to financial resources, incubators must provide their start-ups with continuous support, including business and technological advice and networking. |
| Iceland | Ongoing policy debates are centred around the role of public investment in research and innovation as a means of ensuring long-term economic stability. As part of this debate, the establishment of the new Ministry for Higher Education, Science and Innovation signifies a heightened focus on research and innovation as drivers of economic growth and stability in Iceland. This encompasses various forms of investment, including direct funding through government-owned investment vehicles including venture capital and fund-to-fund programmes, as well as soft funding programmes and tax refunds for research and development expenses. The objective is to create programmes that can effectively support research-based innovation in a dynamic environment, particularly in cases where private investors are reluctant to engage and provide support for high-risk early-stage projects. |
| Ireland | Ireland's enterprise RDI (Research, Development and Innovation) performance has developed from a base of 800 R&D-active firms thirty years ago with R&D expenditure in the region of â¬300 million, to an estimated 1,950 R&D-active enterprises investing â¬3.88 billion in 2021. However, there is a significant gap between the performance of foreign-owned and Irish-owned enterprises in terms of R&I expenditure and activity. While Irish-owned enterprises account for c. 70% of R&D performing enterprises in Ireland in 2021, they account for c.30% of business investment in R&D. Through Impact 2030 and the White Paper on Enterprise, enterprise innovation capability will be broadened and deepened, with particular focus on indigenous small and medium sized enterprises (SMEs), on linking the multinational and SME innovation base, and further embedding foreign direct investment in Ireland. New approaches to achieve this include innovation diagnostic tools, scorecards, flexible grants, clusters, digitalisation supports, bespoke advisory services etc. We will cultivate industry-academic collaboration and research commercialisation, including easier industry access to the public research system and a greater number of innovation-driven start-ups emerging from it. Implementation of Smart Specialisation, focusing on research and technology areas of greatest relevance to Irish-based enterprise, will help us to promote and to coordinate innovation diffusion across regions. We will deliver a competitive national enterprise R&I ecosystem, including fiscal, patenting and IP protection, and standards development. Innovation is a key pillar of our national enterprise policy and is a key focus of investment assistance and policy advice from DETE and its enterprise development agencies, Enterprise Ireland and IDA Ireland. Innovation-driven start-ups are delivering solutions to key challenges and opportunities across diverse areas from financial services to healthcare and education. Innovation in products and services is underpinning the growth and expansion of our existing enterprise base, driving success in international markets and export growth, and overall business resilience. DETE leads on the delivery of enterprise innovation policies, programmes and assistance to deliver on the Government's objectives for the enterprise sector and innovative businesses, delivering jobs and prosperity for the Irish people. DFHERIS and DETE work with their Agencies and the higher education sector to cultivate industry-academic collaboration, research commercialisation and innovation diffusion across regions. Three DFHERIS Agencies play a critical role here, with SFI and IRC providing competitive research funding and the HEA providing research funding through the block grant to the HEIs, which underpins Ireland's R&I system. DETE, DFHERIS and their Agencies work with partners across the R&I ecosystem to encourage innovative start-ups and disruptive innovation and the development of relevant R&I capability and skills. This also includes driving research commercialisation, ensuring that Irish based enterprises are participants in frontier technology ecosystems, that innovation is pervasive in all enterprise sectors and regionally, and that the right enabling environment is in place to support an innovation economy. Our success in strengthening enterprise driven research, development and innovation will directly impact on Ireland's ability to create and maintain a thriving and prosperous economy and grow employment, and to achieve our national goals to create a cleaner, greener economy and society and to maximise the opportunities of digital transformation for all. |
| Israel | A major debate currently underway in Israel centres on how to maximise efficiency in government spending supporting business innovation and entrepreneurial ingenuity. Over the past few decades, the Israeli high-tech sector has seen significant growth and maturation. The number of companies and the level of investment in Israeli enterprises have substantially increased during this period, while the proportion of government spending on R&D support relative to GDP has remained constant. This situation compels the government to maximise its impact while becoming a smaller player in the market. Several debates have arisen in this context. For instance, should minor support be extended to a large number of innovators, or should more substantial funding be provided to a smaller number of innovators? One solution is to concentrate government support on sub-sectors and technologies where the market is small and/or fraught with considerable risk. Another approach is to provide no direct funding but to insure the positions of other financiers. This gives rise to a debate about who should be the primary beneficiary of government support: the innovators or the financial backers. Additionally, questions arise about how best to structure policy tools to reflect this preference. |
| Italy | Transition Plan 4.0 Investment Grants Support for the Space Economy Supply Chains. |
| Japan | A world-class startup ecosystem is essential to unleash the potential of young people with outstanding skills and abilities produced at universities and other institutions and to continuously create innovations that lead to new industries and societal change. In particular, from the perspective of creating an innovation ecosystem, it is important to create startups and realize large-scale growth by having universities and other institutions as the source of innovation, utilizing new technologies (deep tech) born from high-quality basic research, and having highly creative people jump onto the path of entrepreneurship without hesitation. In November 2022, the government formulated "Startup Development Five-year Plan" to provide strong support for startups, with the goal of increasing investment in startups more than tenfold (to 10-trillion-yen) by FY 2027, five years later. In order to create an innovation ecosystem centered on universities and other institutions as a source of innovation and to create large-scale startups, particularly in the field of deep-tech, the government will work to utilize the enhanced SBIR system, realize the Global Startup Campus Initiative, strengthen support for commercialization and social implementation of startups in the deep tech field through the Deep Tech Startup Support Project, expand public procurement, broaden the entrepreneurial base, form a growth-oriented funding cycle, and further promote the enhancement of university IP governance. In April 2021, control of the SBIR system was transferred to the Cabinet Office under the provisions of the Law Concerning the Revitalization of Science, Technology and Innovation Creation (Law No. 63, 2008). The Cabinet Office was placed in charge of the new system to strengthen continuous support while selecting initiatives across ministries and agencies in a phased manner, with a focus on innovation creation. From FY2021 onward, specific operation rules have been established, and under the accompaniment and support of the program manager, R&D tasks based on policy and government procurement needs have been set, and proof of concept, R&D, etc. (Phase 1 and 2) have been steadily implemented. In addition, the project has been drastically expanded with the addition of Phase 3, which supports technology demonstrations, to the operation rules starting in FY2023. Based on the 'Startup Development Five-year Plan', we will utilize this project to strongly promote early social implementation of advanced technologies owned by startups. It is also important to use government procurement to nurture startups. Government procurement procedures will be revisited with a view to facilitating the participation of startups, such as the qualifications to participate in bidding. The government will consider making it possible to enter into discretionary contracts with companies selected as J-Startupwith advanced new technologies in the same manner as the procurement method for R&D results under the SBIR system. To provide incentives to entrepreneurs and employees to create startups that will drive growth, we will review the stock option system as necessary. At the same time, we will steadily promote the program to dispatch 1,000 employees for five years and expand initiatives to foster young human resources through mentors. And based on the "Policy Package on Education and Human Resource Development for the Realization of Society 5.0," at the elementary and high school levels, the government will drastically strengthen inquiry-based, STEAM and entrepreneurship education, and provide opportunities for all university students who wish to start their own businesses to receive high-quality entrepreneurship education. In addition, we will discover and nurture management personnel and support efforts to match them with the excellent technology seeds of universities and other organizations. At the same time, we will carry out initiatives such as promoting carve-outs by personnel with excellent technologies from business corporations, etc., in order to stimulate innovation and create start-ups in the deep-tech field by utilizing the technologies of business corporations, etc. |
| Korea | Korea is currently experiencing ongoing transitions in the global industrial landscape. These include a) Transitioning to smart industries and a data economy driven by the Fourth Industrial Revolution; b) Transitioning to carbon-neutral energy to address climate change; and c) Dealing with disruptions in the global value chain caused by the COVID-19 pandemic and changing dynamics in international technology politics. In response to these challenges, current policy discussions are focusing on the following measures to foster industrial innovation: - Strategically allocating and executing national R&D investments in major industrial sectors and technological fields to drive futuristic innovations. - Establishing various technology development schemes such as plans, roadmaps, centres of excellence, and clusters. These schemes aim to address emerging technological challenges, secure long-term technological competence, and generate short-term innovation outcomes. - Enhancing technological competencies in industries related to core materials, components, and equipment to sustain major industrial innovations. - Accelerating the digital transformation of firms, particularly small and medium-sized enterprises (SMEs), to strengthen their innovative capacities in the digital age. - Proactively building major infrastructures for platforms, standardisation, and test beds to support future innovations. - Creating an outcome-oriented innovation ecosystem that enables the swift market release of new technologies through regulatory reforms and other measures. - Strengthening the innovation capabilities of SMEs and startups by promoting innovative entrepreneurship and expanding venture funds for innovation. Notably, the Ministry of SMEs and Startups (MSS) is driving the promotion of global expansion for SMEs under the growth strategies of 'Global,' 'Digital,' and 'Leap Together'. The digital transformation of SMEs is expected to address industrial inequality that has emerged during the rapid growth process. Additionally, an initiative called 'The Global Startup Nation, Creating the Future in the Digital Economy Era' will be launched. It aims to bring together the resources and expertise of relevant ministries, regional organisations, and public institutions to pioneer new industries and markets by fostering start-up ventures. In this effort, the government will establish a substantial fund called Start-up Korea Fund and launch new programs to support start-ups. |
| Latvia | Future plans for innovation support involve further developing strategic RIS3 (Smart Specialisation Strategy) industries and value chain ecosystems within specific areas that have demonstrated high development and competitiveness potential, both locally and internationally. The Ministry of Economics supports the development of these ecosystems, while the Ministry of Education and Science is responsible for fostering research in universities and research institutions, as well as cultivating highly talented specialists through higher education and vocational education. The main policy planning documents that have been adopted include: (1) The National Development Plan of Latvia for 2021-2027 (NDP2027) and the National Industrial Policy Guidelines 2021-2027: The main focus is on the specialisation of key national industries and the development of strategic value chain ecosystems within each of them. This aims to promote overall industrial sophistication, knowledge-intensive production, innovation, technology transfer, and more. As new competitive advantages emerge, a shift in business models is necessary, moving from short-term profitability to long-term productivity, robust sustainable profitability, and cross-industry partnerships. (2) Guidelines for Science, Technology Development and Innovation 2021-2027: These guidelines continue the previous policy implemented in 2014-2020 and align with the strategic overarching goal of promoting smart, technologically advanced, and innovative societal development in Latvia. Compared to the previous planning period, the new guidelines place greater emphasis on promoting research excellence and increasing the social and economic value of research. (3) Research and Innovation Strategy for smart specialisation in Latvia (RIS3): Latvia is planning structural changes in the economy to drive productivity growth and the export of knowledge-intensive goods and services (smart re-industrialisation). The strategy focuses on the RIS3 areas and serves as the foundation for various key national documents in the new planning period. The RIS3 areas include: - Knowledge-intensive bio-economy; - Biomedicine, medical technologies, and pharmacy; - Photonics, smart materials, technologies, and engineering systems; - Smart energy and mobility; - Information and communication technologies. (4) Latvian Space Strategy for 2021-2027: This strategy is a working document jointly developed by the Ministry of Education and Science and the Ministry of Economics. Its aim is to structure and coordinate space policy issues in Latvia and demonstrate the willingness of involved parties to collaborate on space development. (5) Furthermore, in planning the Recovery and Resilience Facility and the next Cohesion Policy period, funding will be concentrated in RIS3 areas: Latvia will receive support from the Recovery and Resilience Facility (RRF) to enhance the resilience of its economy and improve the quality of life and well-being of its people, with a focus on economic recovery after the COVID-19 crisis. The Ministry of Economics plans investments and reforms across four pillars: green transition, smart economic growth and productivity, digital transition, and social and territorial cohesion. The RRF plan aims to address the low level of private investments in research, development, and innovation, as innovation capacity is crucial for economic growth and adaptation to post-COVID-19 changes. The plan includes investment in economic transition towards higher added value, productivity, and more efficient resource utilisation. In the area of digital transition, the main focus will be on business digitalisation, including the introduction of digital technologies, innovations, and new products, as well as support for digitalisation of business processes and digital upskilling. Additionally, investing in renewable energy technologies, energy efficiency in buildings, and related R&D activities are key measures for achieving the green transition. Nearly a quarter of the Cohesion Policy 2021-2027 funding in Latvia will be allocated to the Ministry of Economics. These investments will support innovations, digitalisation, economic transformation, energy transition, and social cohesion. Programmes will be developed in line with the priority fields defined in the Smart Specialisation Strategy (RIS3), and support will be provided in the form of grants and financial instruments to achieve the targets outlined in the National Industrial Policy Guidelines (2021-2027), including increased exports and expenditures on R&D. |
| Lithuania | The plan "New Generation Lithuania" includes a wide range of measures aimed at strengthening the start-up ecosystem. These measures include improving and expanding the business acceleration system to achieve consistency and integrity. Additionally, the plan involves expanding the Fund for the Promotion of Innovation by creating new composite measures to promote innovative activities, thereby increasing the availability of financing for business investments in technological progress and innovation. To promote closer collaboration between science and business, the Ministry of Economy and Innovation, in partnership with the Ministry of Education, Science and Sports, is initiating national mission-based science and innovation programmes (these missions are created in relation with EU missions, however, stressing out national priorities and needs of Lithuania R&I ecosystem). These programmes will facilitate targeted investments in science and innovation to address pressing societal problems collaboratively. Under the EU Investment Fund 2021-2027, investments will be made in research, development, and innovation (R&D&I). The goal is to encourage the shift of the economy towards the production of high value-added products. Specifically, investments will focus on creating favourable conditions for start-ups and transforming small and medium-sized enterprises (SMEs) into high value-added entities in Lithuania's Mid-West Region. Efforts will be made to direct SMEs towards the commercialisation of final products, provide innovation support and advisory services to less knowledge-intensive SMEs in the region, strengthen the capacity of the public sector for pre-commercial procurement, and encourage SMEs to develop innovative products. Attracting foreign direct investments to R&D&I will contribute to private investment in R&D and technology transfer for less knowledge-intensive SMEs. Strengthening the business position of global value chains will enable SMEs to participate in international R&D&I initiatives. The total investments will amount to 397.6 million euros (67.9 million euros for the Capital Region and 329.7 million euros for the Mid-West Region). In the area of "Reaping the benefits of digitisation for citizens, companies, research organisations, and public authorities", investments will be made to promote the development of digital competences in high productivity computing, artificial intelligence, and cybersecurity. This includes investments in digital innovation hubs. The plan also aims to promote the digitisation of SMEs, for example, through e-commerce initiatives. Furthermore, the development of new innovative tools and technological solutions will ensure access to the internet and e-services for all citizens and companies. The plan also involves creating innovative technological solutions for the use of new electronic identification tools and electronic transaction trust services. Additionally, promoting the use of open, demand-oriented data from public authorities to develop innovative solutions and digital services will be a focus, particularly for SMEs. The total investments for this area will amount to 127.7 million euros (55.5 million euros for the Capital Region and 72.2 million euros for the Mid-West Region). |
| Luxembourg | One of the main policy questions related to business innovation concerns how to stimulate business expenditure on research and development (BERD), as well as retain existing research activities in Luxembourg and attract new ones. Official statistics show an overall decrease in BERD. While this owes in part to changes in the methodology for measuring BERD, it also stems from changes in structural patterns (bearing in mind that most research and development |
| Malaysia | Over the years, Malaysian industries have transitioned from being resource-based to knowledge-intensive, and are fast charting a new course towards Malaysia becoming an innovation-led economy. The government plans to accomplish this next transition by developing indigenous STI capacity and capability to advance competitiveness and sustainability, better leverage market opportunities and elevate the industries along the global value chain. These industries may then be in a position to leapfrog from being technology users to technology innovators. Malaysian business consists of 98.5% small and medium-sized enterprises (SMEs), which only contribute 36.6% of the country's gross domestic product (2016). Hence, there exists an urgent need to elevate national industries' capacities, infrastructure, workforce competence and technology use to reach the same level as global players. The Malaysian Government supports industry growth by strengthening the nation's information and communication technology infrastructure and 'infostructures', such as broadband strength and speed. In doing to, it facilitates seamless cross-border trade and enables local businesses - especially SMEs - to export their products globally. Strategic partnership models have been adopted to spur technology development and commercialisation, and accelerate SME productivity growth through innovation intermediaries. To bridge the innovation chasm between industry and researchers while encouraging open innovation, collaborative networks co-ordinated by an industry-led trusted neutral entity have been established for key sectors with strong growth potential. |
| Malta | In line with the recommendations in the PSF Peer Review, the draft National R&I Strategic Plan 2023-2027 makes a number of recommendations for 'Local Ecosystem development' including leveraging private sector R&I to enhance intersectoral mobility and knowledge transfer, as well as implementing a differentiated approach to supporting private sector R&I. The Plan highlights the need to set up appropriate R&I enabling structures which are close and accessible to industry. The draft Strategic Plan also seeks to create more demand for R&I through, inter alia, public procurement. Malta is participating in the Mutual Learning Exercise (MLE) on 'Knowledge Valorisation, Skills, Intersectoral Cooperation, and Incentive Systems'. Malta will use this opportunity to increase its knowledge of the experiences faced by other Member States when developing and implementing initiatives to stimulate inter-sectoral mobility. Malta will also examine the results of the MLE's analysis on academia and industry cooperation, training and lifelong learning, and researcher entrepreneurship and consider its applicability and relevance to the local context. The Malta Digital Innovation Authority (MDIA) has recently launched the European Digital Innovation Hub (DiHubMT) will play a crucial role in supporting business innovation and entrepreneurship. Acting as a one-stop-shop for advanced digital services, the hub will help companies respond to the evolving digital landscape and enhance their competitiveness on both local and international fronts. By creating a more integrated ecosystem of start-ups and SMEs, the DiHubMT will foster an environment that encourages innovation and entrepreneurship, driving economic growth and development. With the support of the DiHubMT, companies can leverage advanced technologies, access cutting-edge research facilities, and tap into the expertise of skilled professionals. |
| Mexico | In the current administration, CONAHCYT has advocated for intellectual property rights generated with public resources to be exercised in line with the national public interest, ensuring that their use and exploitation benefit society to a greater extent. Additionally, there is a focus on promoting value-added generation in strategic and priority areas of national development (Health, Human Safety and Energy), strengthening the social and solidarity economy, and encouraging social innovation. A National Innovation Plan is mandated in the National Development Plan. It is currently being reviewed for approval. Another focus area is promoting the novel application of knowledge in the improvement or creation of new products, services, productive processes, or management systems that enhance the country's competitive advantages, promote industrial development, and contribute to the preservation, restoration, protection, and improvement of the environment. |
| Netherlands | In 2023, Netherlands did not provide information on 'Innovation in firms and innovative entrepreneurship' policy debates. |
| New Zealand | The New Zealand Government has set a target of raising total research and development (R&D) expenditure to 2% of GDP by 2030, previously set for 2027. Debate persists in New Zealand regarding how to reach this goal, especially the methods of amplifying the private sector's contribution. The proportion of R&D derived from the private sector falls short of the OECD average. Part of the rationale behind the introduction of the new R&D Tax Incentive (RDTI) , which replaced the previous system of R&D growth grants, was to boost private-sector investment. The new policy was specifically designed to widen the reach of government support for R&D-performing firms. While approximately 500 New Zealand businesses were receiving R&D support under the grant scheme, at least 1 400 businesses have applied for the RDTI to date, and many more are eligible. A more recent debate revolves around the types of government support for business innovation that can complement the RDTI. When the RDTI was introduced, the main alternative mechanism was the R&D Project Grant. This offered a higher level of support (40% pre-tax compared to 15% under the RDTI) to established R&D-performing firms for specific projects, but there were concerns that it targeted the same business group as the RDTI. In 2022, the New Zealand Government replaced the R&D Project Grant with the 'New to R&D' Grant. This new scheme offers a higher rate of support than the RDTI to businesses that have not performed R&D. The grant aims to assist businesses in building R&D capabilities over the long term, thereby increasing the number of R&D-performing businesses. At the same time, the Government introduced the Arohia / Innovation Trailblazer Grant, which supports non-R&D activities that lead to "trailblazing" innovation. This grant aims to stimulate investment that generates spillovers to others in the innovation system, either by trailblazing a path for others to follow or by providing a platform that enables trailblazing innovation by others. Additionally, there is a debate regarding whether and how to provide industry-specific support for innovation. Traditionally, New Zealand's innovation support has been generic, with a limited focus on particular industries. However, since 2019, the Government has introduced a series of Industry Transformation Plans (ITPs) as part of its Industry Strategy, aimed, in part, at fostering innovation in specific industries. The Ministry of Primary Industries administers the Sustainable Food & Fibre Futures programme, which invests in innovative projects to sustainably grow New Zealand's food and fibre industries. Callaghan Innovation also manages several programmes, including the Health Tech Activator and the New Zealand Product Accelerator, that support innovation in the health and manufacturing industries, respectively. |
| Norway | An ongoing review is being conducted on the industry-oriented research, development, and innovation (RDI) support instruments. A key political objective is to introduce clearer incentives for a green transition. This objective is being pursued through the introduction of more goal-oriented and sector-specific instruments that target specific green industries. Additionally, efforts are being made to develop generic "green" indicators that can be applied across different instruments and industry sectors. New cooperation structures between relevant support agencies are also being experimented with. One important policy debate in progress revolves around striking the right balance between top-down goal-oriented and sector-specific measures and more generic and cross-sectoral bottom-up instruments. Strategic work is also underway to promote business spending on research and development (R&D). The government aims for private sector R&D expenditure to reach 2% of GDP by 2030. A governmental strategy to promote this goal is scheduled to be presented in early 2024. The strategy process is co-governed by the Ministry of Trade, Industry and Fisheries and the Ministry of Research and Higher Education. Public support for business R&D has increased in recent election cycles. This has involved making the R&D tax credit scheme (Skattefunn) more generous. Allocation to competitive R&D grants has also increased, both through a broad, thematically neutral competitive programme and in areas of particular interest to Norway, such as energy innovation, green initiatives, and aquaculture. Efforts to strengthen entrepreneurship policies and public investment funds have been undertaken. The government has concentrated public efforts on venture capital in a smaller number of existing institutions while introducing additional seed-capital measures. One such measure is the establishment of a green investment fund, launched in early 2019, which targets promising businesses and has received increased funding over time. |
| Peru | Peru actively supports business innovation and innovative entrepreneurship through sectoral and regional mechanisms and strategies. The Government aims to enhance the productivity and competitiveness of companies while promoting collaboration between universities (both public and private), public research institutes, and institutes of higher technological education. These initiatives assist companies in innovation activities, training personnel, and adopting new technologies necessary to develop new or improved products and processes. These mechanisms and strategies include the promotion of technology transfer, support for innovative company incubators, and coordinated action among different actors of SINACTI in accelerating innovation. The Law of Tax Benefits for companies investing in scientific research, technological development, and innovation is an important mechanism introduced by the Executive Branch to promote these activities. |
| Poland | Support for innovativeness of enterprises is implemented both through a system of tax reliefs and direct co-financing in the form of repayable or non-returnable (with a large share of European Union funds). The discussion on improvement innovative system in Poland was initiated with the work on the 'White Paper on Innovation' in 2016. This entailed extensive discussions and consultations with the scientific, research, and business communities led by the Ministry of Education and Science. This prompted the beginning of legislative changes regarding support for R&D in Poland, including tax breaks for research and development activities. These changes also facilitated start-up funding, widened the operational scope of special purpose vehicles created by universities and scientific institutes of the Polish Academy of Sciences, and boosted economic activity. Interest in the tax credit for conducting research and development work has been increasing every year. While in 2016, during the initial period of the relief, 571 taxpayers benefited from it, by 2021 the relief was claimed by 3,606 taxpayers. The number of taxpayers and the amount of deduction increased each year from a few to several dozen percent, even during the most challenging years when pandemic restrictions were in effect. The recent discourses on public support for business innovation and innovative entrepreneurship has centred on issues related to support for innovation from European Union funds, public funds, as well as matters concerning the creation of start-ups, clusters, and scientific spin-offs. Discussions have also touched on matters related to the implementation of the National Recovery and Resilience Plan. Key subjects of analysis and consideration include the Productivity Strategy 2030 (adopted by Resolution of the Council of Ministers No. 154 of 12 July 2022, M.P. item 926). The primary objective of the Productivity Strategy has been delineated as a progressive, sustainable, and inclusive enhancement of productivity based on the utilisation of knowledge and new technologies, particularly digital ones. In recent years, Poland has created numerous public instruments to support innovation-driven companies. Firms can receive subsidies for research and development (R&D) expenditures. The largest grants, primarily support programmes co-funded by the European Union, are awarded via open competitions. There are also national programmes dedicated to companies from high-growth potential industries that represent national smart specialisations. An expansive start-up support programme, "Start in Poland", incorporates various types of venture capital funds and accelerators supporting the growth of youthful, innovative companies. Attractive incentives for entrepreneurs include tax reliefs for companies conducting research and development activities, and a preferential tax rate for income from intellectual property rights (IP), the so-called IP Box. The number of companies availing themselves of these tax incentives increases annually. Discussions will focus on further improvement and expansion of these instruments, as well as on the experience of their usage, such as the eligibility of expenditures. The European Union's measures and instruments, which invariably spark robust debate, are of significant importance in stimulating private investment. For instance, under the Smart Growth Operational Programme 2014-2020 (financially implemented until 2023), a total of 14,547 co-financing agreements were concluded by the end of 2022, with a total value of EUR 12.9 billion and co-financing from EU funds amounting to EUR 8.9 billion. Entrepreneurs received EU support in the amount of about 2/3 of the above-mentioned amount. The newly launched national programme FENG (European Funds for a Smart Economy 2021-2027), with a budget of EUR 7.9 billion, proposes innovative flexible solutions for project implementation, which include: - modular support (research and its implementation within one project), - digital and green transformation of enterprises, - improvement of competences, - support for MID-CAPS. This novel approach resulted from a discourse on weaknesses and good practices in the implementation of EU funds during the previous period. Increasing the number of companies conducting research and development and implementing innovative solutions remains a challenge. Inventions created in universities and research institutes are insufficiently commercialised, and investment funds often struggle to find innovative young companies or research teams worth investing in. Given these conditions, the debate on support for innovative companies encompasses a broad spectrum of issues, such as: - increasing the number of innovating companies, - encouraging companies to utilise the public research system more extensively and strengthening cooperation between science and industry, - simplifying existing support instruments to enhance their appeal to enterprises, - identifying the most effective types of support for businesses (e.g., tax reliefs, subsidies, or support through investment funds), - preparing companies for the challenges posed by the digital revolution and climate change. |
| Portugal | Core aims of national STI policies include enhancing the role of Portuguese companies as (i) leading actors in networking and (ii) collaborative projects and as modernisers of the economic fabric and the innovation ecosystem. Multifold initiatives have been developed under the 'GoPortugal' programme (implemented by the Foundation for Science and Technology), including International Partnerships with the American Universities of Carnegie Mellon, MIT, and Texas-Austin (UT Austin), currently in the 3rd phase, taking advantage of their experience and knowledge, together with R&D units. Focused on specific domains, their overall mission is improving competencies of highly qualified researchers while also promoting international academia-industry relations, as a driver for change with social and economic impact - thus improving both scientific knowledge and downstream innovation dynamics. Portugal is also part of the Enterprise Europe Network (EEN), particularly focused on internationalisation through tech-based partnerships, R&D valorisation, and entrepreneurship, to become competitive in global markets. The recently issued Centro de Competências em Compras Públicas de Inovação - PROCURE +i (Competence Centre for Innovation Public Procurement, 2021) is promoting Innovation Public Procurement activities, including the purchase of R&D and innovation by Public Entities through demand-pull policies. The 2nd National Conference of Public Procurement for Innovation (April 2023, a partnership ANI-IMPIC, supported by SATDP/SAMA-COMPETE 2020), emphasised issues of Public Procurement for Innovation sustainability and the urgency for the Public Administration to invest in innovation. A new focus on entrepreneurship and innovation - and on re-industrialisation - is embedded in the Mobilizing Agendas under the Recovery and Resilience Plan (RRP), particularly the Green Mobilizing Agendas for Entrepreneurial Innovation. Reforms under Component 5- Capitalization and Business Innovation, such as 'Promoting R&I and businesses innovative investment (RE-r09) and Enlargement and Consolidation of the Network of Interface Institutions' (RE-r11) are to mention. They leverage collaborative links in the S&T System, while converging to mitigate market failure in access to corporate finance and solvency problems. Actions under the previous INTERFACE program are given a fresh impetus through the new Mission Interface (2022) , namely as regards the investment in the network of interface centres. These programs promote strategic areas of potential growth, also aligned with smart and mission oriented specialisation priorities, stimulating the participation of national and regional actors in European partnerships. Realising the goals established by the PNEC 2030 (National Energy and Climate Plan) requires smart solutions for greater efficiency and efficacy, circular economy, and a lower carbon footprint. All of this places additional stress on the development of an innovative and competitive industry and companies, and their effective uptake of knowledge and technology, particularly digital. Several available measures converge to help companies catch up in the digital process, modernise workflows and production processes, bridge skills gaps, promote equality and diversity, incorporate remote working tools, create new e-commerce channels for products and services, foster an experimentation and innovation culture, and effectively adopt breakthrough technologies in their value chain (Program Empresas 4.0). Other measures focus on supporting infrastructures for companies developing new products and services (National Network of Test Beds), supporting SMEs in internationalisation processes, accelerating digital commerce, providing financial incentives for digital business models (Coaching 4.0), assisting startups in the seeding phase (Voucher for Start Ups - New Products Green and Digital), supporting incubators/accelerators in updating their knowledge and capacities (Incubator/Accelerator Voucher), helping companies implement artificial intelligence, high-performance computing, and cybersecurity (including qualification and training in digital competences), facilitating demand-side funding for investments in digital technologies, fostering entrepreneurship ecosystems (Digital Innovation Hubs), and certifying structural changes in digital business models (Certification Seals of Cybersecurity, Privacy, Usability, and Sustainability, 4 platforms). Strengthening digital competencies is also being addressed through programs such as Academia Portugal Digital and Emprego + Digital 2025. |
| Republic of North Macedonia | The mapping of the policy measures conducted during the designing process of the Smart Specialization Strategy points to fragmentation in the innovation ecosystem, with many institutions overlapping in jurisdictions and lack of coordination thereof. It also shows overlapping measures of support providing direct public financing for private companies and gaps in support measures regarding academia-industry cooperation, as well as risk capital investments. |
| Romania | Overall, there is robust private sector demand for EU Cohesion Policy resources for R&I. Under the POC 2014-2020 scheme, actions promoting technological innovation in enterprises received applications equating to 587% of the allocated funding. For start-ups and spin-offs, this figure reached 628%, for newly established innovative enterprises, it was 285%, and for Knowledge Transfer Partnerships, 125%. Innovative entrepreneurship, while still underdeveloped, has been on a positive trend in recent years. The National Strategy for Research, Innovation and Smart Specialisation 2022-2027 (SNCISI) envisions a specific programme dedicated to innovation, titled 'Partnership for Innovation'. Additionally, Romanian organisations can participate in various EU or pan-European initiatives aimed at supporting innovation and, among other things, innovative entrepreneurship. The National Plan for Research, Development and Innovation outlines a specific subprogramme dedicated to innovative entrepreneurship, namely '5.7.7. Innovative Entrepreneurship and Open Innovation'. This aims at 'the development of innovation entrepreneurship and support for innovative start-ups, contributing to a mature and functional innovative ecosystem by facilitating access to venture capital, developing the incubation capacity and acceleration for innovative start-ups, and nurturing an entrepreneurial culture'. Several types of projects are anticipated, including an innovative business matching fund, a seed capital matching fund, high-tech university contests, an Incubator Grant, and an Accelerator Grant. The Operational Programme for Smart Growth, Digitalisation and Financial Instruments POCIDIF 2021-2027 (POCIDIF) has a specific objective of 'Developing skills for intelligent specialisation, industrial transition and entrepreneurship'. Also, each of the eight Regional Operational Programmes (ROPs) includes a specific objective focussed on 'Developing skills for intelligent specialisation, industrial transition and entrepreneurship'. The National RDI Plan 2022-2027 also targets the improvement of access by private enterprises to research infrastructures and the development of testing capacity at a regional level, through various provided instruments. |
| Serbia | In recent years, the Serbian entrepreneurship and startup ecosystem has witnessed an unprecedented surge in momentum, driven by a concerted effort from various stakeholders. These efforts have not only accelerated the growth of startups but have also transformed Serbia into a thriving hub for innovation and entrepreneurship. From a top-down perspective, the government of Serbia has recognized the potential of the startup sector and has taken significant steps to create a conducive environment. One notable initiative includes the establishment of a favorable tax system specifically designed to support startups, reducing the financial burden on emerging businesses. In parallel, an action plan for the Development of the Start-up Ecosystem has been diligently implemented, providing a strategic roadmap for nurturing entrepreneurial ventures. Moreover, in addition to the entrepreneurship portal (https://preduzetnistvo.gov.rs/?rstr=cyr) that was created a few years ago, a dedicated startup portal (https://startap.gov.rs/?rstr=cyr) has been developed, offering existing and aspiring startups access to vital information, potential investors, and various funding opportunities. This centralized platform has become an invaluable resource for entrepreneurs, streamlining their journey from ideation to market entry. Recognizing the importance of nurturing talent from a young age, Serbia has also introduced specialized IT courses in high schools. The promotion of programming as a compulsory subject equips the next generation with essential digital skills, laying the foundation for future innovation. One remarkable achievement that underscores the success of these efforts is the data from the Start-up Genome Report 2021. According to the report, Serbian startups experienced a banner year, attracting an impressive â¬123 million in investments. This influx of capital has fueled innovation, product development, and market expansion for many startups within the ecosystem. Furthermore, the export of the Serbian Information and Communication Technologies (ICT) Sector in 2022 amounted to EUR 2.692 billion, which marked a staggering 45% increase compared to 2021. This remarkable achievement signifies the sector's global competitiveness and its ability to generate substantial economic value. In a notable testament to the strength of the Serbian startup ecosystem, the national initiative "The Startup Scanner 2022" stands out. This comprehensive report, detailing the state of the domestic startup landscape, has garnered attention beyond Serbia's borders. It has been recognized as a best practice example and served as a reference point for the Feasibility Study for a European Start-up Scoreboard, highlighting Serbia's pioneering role in the broader European context. |
| Slovak Republic | Businesses in Slovakia face various obstacles that affect their innovativeness. These are mainly factors related to cost, lack of information or market factors such as insufficient demand for innovation and services. The main problem can be seen in the transformation and sharing of information from the scientific industry to both small and medium-sized enterprises. In Slovakia, SMEs do not consider information from universities and public research institutions as important for their innovation activities. Information for innovation usually comes from their customers or from the environment in which the firms operate. The share of knowledge-intensive services in Slovakia's GDP is very low and innovation processes have only recently started to be used in services, creative industries and the social sphere. Therefore, there is a great need to focus and invest more in this area. Mainly, it is necessary to increase the technological level of companies, enable the funding of development activities and promote cooperation of innovative actors, Slovakia needs to take policy measures to help achieve these targets and support businesses. |
| Slovenia | Increasing investment in research and innovation is important. Within the Resolution on the Slovenian Scientific Research and innovation Strategy 20230 we established a goal, which is higher, compared to the adopted legislation in 2021. Public investment in science, research and innovation will reach 1.25% of GDP by 2030, with public investment already at 1% of GDP in 2027 and total investment in science, research, development, and innovation at 3.5% of GDP by 2030. Not only the science and research funding, but also the innovation funding will need to increase and to become stable, not reliant mainly on ESIF funding. The aim is to set up a system of a stable every year available support for research and innovation projects which address the challenges of todays society (focus on green and digital transition). The whole government approach can help and will be necessary to improve funding, directionality and for improving the innovation ecosystem. In line with the Resolution on the Slovenian Scientific Research and innovation Strategy 2030 there are some important measures, which are foreseen, such as implementing an efficient and result-oriented research and innovation environment, improving the management and integration of the development and innovation ecosystem, including the stability and predictability of key funding instruments. Within the adopted legislation (Scientific Research and Innovation Act), the research performing organisations are now able to establish companies (start up, spin out, spin offs), which is an important step to improving the knowledge transfer and for improving the ecosystem. Tailored made measures, not only financial, for start-ups, scale-ups will have to be strengthened with improved co-ordination of relevant stakeholders (agencies, funds, ministries, SID bank..). We need a new push to improve access to financing by establishing a fund for initial public offerings of SMEs, measures to increase venture capital funds and attract more private investment. We must support the enhanced commercialization of products and services with coherent support and smooth coordination of actors in the Slovenian innovation ecosystem. |
| South Africa | The Department of Science and Innovation (DSI) has finalised the STI Decadal Plan, which serves as an implementation plan for the 2019 White Paper on Science, Technology, and Innovation (STI). The Decadal Plan aims to address the implementation of initiatives to achieve the following goals for the national system of innovation (NSI): an inclusive and coherent NSI; an enabling innovation environment; increased and transformed human capabilities; an expanded and transformed research system; and significantly increased funding for STI. Another element of the ongoing policy debate on government support for business innovation and entrepreneurial innovation relates to bridging or closing the innovation chasm, i.e. the gap between research results and commercialisation. Since 1996, South Africa's innovation performance (measured in patents and products) has remained relatively flat. Additionally, the world is continuously experiencing significant changes due to rapid technological advancements and the demands of the Fourth Industrial Revolution. Therefore, South Africa needs updated policy responses to expand the role of STI in areas such as re-industrialisation, service delivery, modernising the agricultural sector, and mitigating environmental degradation. Other policy questions revolve around boosting innovation and promoting South Africa as an innovative country (to attract foreign investment) by supporting social and grassroots innovation and through the use of public procurement. Progress has also been made in establishing the Small Business and Innovation Fund. |
| Spain | Beyond the modification to the Spanish STI Act (see Governance section), which is focused on the STI system, several legislative reforms have been enacted to encourage the creation of innovative companies in Spain. Among these, Law 28/2022, enacted on 21 December, stands out for promoting the ecosystem of emerging companies, commonly known as the Startups Law. It includes measures that simplify procedures for the establishment of innovative companies and foreign investment, as well as enhancing the tax incentives system for companies, entrepreneurs, and workers. This Law is complemented by Law 18/2022, dated 28 September, concerning the creation and growth of companies, aiming to stimulate the dynamism of the productive fabric. To this end, the Law fosters companies' establishment and expansion, focusing on SMEs and scaleups. Moreover, implementing the Strategy Spain Entrepreneurial Nation, alongside several strategies and plans, seeks to transform the production system by fostering energy efficiency, circular economy, digitisation (particularly the data-based economy) and innovation. In addition, the provision of the NextGeneration_EU funds under the Recovery and Resilience Facility (RRF) has allowed a significant increase in funding for research, development and innovation (RDI) in the private sector. This has been achieved through calls and new mechanisms from agencies such as the Centre for Technological Development and Innovation and other ministries with competencies in industry, digitalisation, and clean transition. Within this framework, Spain has mobilised Recovery and Resilience Funds through Strategic Plans for Economic Recovery and Transformation (in Spanish, PERTE or Planes Estratégicos de Recuperación y Transformación Económica). The PERTE comprise strategic projects with substantial potential for economic growth, employment, and the competitiveness of the Spanish economy. These projects feature significant public-private collaboration and are cross-cutting across different administrations . They are conceived as a mechanism to promote and coordinate priority projects, particularly those that are complex, face clear market failure, demonstrate significant externalities, or lack sufficient initiative or investment capacity from the private sector. Despite their creation within the RRF, they are designed for longevity. PERTE projects include investment in RDI actions to substantially increase businesses' environmental sustainability, including decarbonisation, pollution reduction, and circular economy aspects. These actions align with the 2021-2027 Spanish Science, Technology, and Innovation Strategy (EECTI in Spanish) and the State Plans, especially in strategic areas of industrial transformation, climate, energy, and mobility. |
| Sweden | The policy debate around government support for innovation in both industry and small businesses has undergone a significant shift in recent years, with an increased focus on the green transition. This transition is generally seen as an opportunity to enhance the long-term competitiveness of Swedish companies. The European Union (EU) has taken substantial and ambitious steps to strengthen Europe's competitiveness and promote sustainability through research, innovation, and industrial development. Given the "perfect storm" of interrelated societal challenges, a small country like Sweden has become increasingly reliant on the EU in the areas of research, innovation, sustainability, and competitiveness. Discussions on how Sweden can best engage with and collaborate within EU policies and initiatives have therefore become of paramount importance. In 2022, the mission-oriented Impact Innovation initiative was launched, representing the next generation of Strategic Innovation Programmes. This initiative is jointly developed and implemented by Vinnova, the Swedish Energy Agency, and Formas. Throughout 2023, 23 preparatory projects are running in parallel to develop proposals for programmes. By February 2024, 3-5 long-term programmes will commence. Start-ups, deep-tech firms, and the associated ecosystems of early-stage funding, incubation, and scaling have been significantly impacted by the profound and unpredictable global stagnation. Sweden has a well-developed support system for SMEs and start-ups, particularly in Stockholm. Numerous actors, both privately and publicly funded, provide support throughout the entire journey from founding to growth stages, and the capital market is highly developed. Most Swedish regions also fund regional support ecosystems for SMEs. Given the evolution of various actors within the support ecosystem over time, the current policy debate revolves around the ambition to foster closer collaboration, synchronise support efforts, and consolidate the support system. |
| Switzerland | After being adopted in both councils in late 2021, the revised Federal Act on the Promotion of Research and Innovation (RIPA) came into force in January 2023. The revision primarily focuses on various funding offers provided by Innosuisse, the Swiss Innovation Agency, by granting it more flexibility and autonomy. This allows Innosuisse to promote national and international innovation projects for Swiss SMEs more effectively. The revised act also serves as a basis for targeted new funding programs. In June 2022, the Federal Council made a directional decision in favour of establishing a sector-neutral Swiss innovation fund. The purpose of this fund is to enhance the financing opportunities for start-ups, particularly during their growth phase, with a specific focus on areas such as decarbonization and digitization. However, the implementation of the fund is currently the subject of ongoing debates and discussions. The planned introduction of a global minimum tax for large, globally active companies under the auspices of the OECD and G20 is expected to impact the effectiveness of tax incentives for research and development (R&D) that were recently introduced in Switzerland in 2020. In response, compensatory measures are being considered to strengthen Switzerland's position as an economic location with a specific emphasis on R&D. Please note that the provided information is accurate as of the knowledge cut-off in September 2021, and there may have been further developments or changes since then. In terms of co-creation, this results from the policies and measures fostering knowledge and technology transfer rather than being a discrete focus of Swiss STI policy. |
| Thailand | In 2020, R&D expenditures in the private sector amounted to THB 141.7 billion, accounting for 68% of GERD. The private sector's R&D spending experienced a decline from the previous year due to the pandemic's impact. The top three sectors for R&D spending in 2020 were (1) the food industry at THB 32.5 billion, focusing on new product development to meet market demands, (2) construction at THB 11.9 billion, concentrating on smart home technology and energy-efficient construction materials, and (3) electrical appliances at THB 11.7 billion, with an emphasis on home appliances as people shifted to work-from-home mode. For years, public research has faced scrutiny and been perceived as ineffective in making an impact on the economy. The failure to commercialise public researches can be attributed to the outdated system in Thai research and academic institutions that hindered research commercialisation. In 2021, a new law equivalent to the Bayh-Dole Act was passed to address this barrier. The Thailand Research and Innovation Utilisation Promotion (TRIUP) Act B.E. 2564 grants institutions the right to claim title to inventions made with government funding, manage their IPs, and negotiate licensing terms that encourage technology utilisation. The law expedites the research utilisation and commercialisation process and incentivises researchers and academia to conduct market-driven research and establish startups to commercialise their inventions. The TRIUP Act also encourages research that benefits communities and social enterprises by allocating funds and compensating researchers for their inventions. Both universities and public research agencies possess the manpower and infrastructure to create innovations, thus holding significant potential to drive innovative businesses and contribute to building a strong innovation-driven economy. A holding company represents a strategy for academic and research institutes to professionally manage investment in innovative businesses spun off from university research by establishing a private entity. As a private company, a holding company offers flexibility, agility, and the ability to make business-driven decisions. Despite its multiple benefits, the holding company scheme has not been widely implemented due to a lack of understanding of pertinent laws and regulations. To encourage universities and public research agencies to adopt this scheme and enhance their role in an innovation-driven economy, the Policy Council endorsed a set of policies to promote the establishment and operation of holding companies in academic/research institutes and issued guidelines to assist them in setting up and managing a holding company. Moreover, in March 2023, the cabinet passed the Regulation on Joint Investment in Research and Innovation Utilisation Projects, providing directives on research commercialisation investment for public universities and government agencies. This regulation allows for joint investment in innovation businesses through joint ventures or holding companies. It also authorises universities and research institutes to support innovation companies by allowing their employees to conduct research or work in companies, encouraging students to conduct research and studies in companies, providing infrastructure, research facilities, and scientific equipment services to companies free of charge or at special-rate fees, procuring goods and services from companies listed on the Thai Innovation Catalogue, and re-employing personnel who have previously resigned to work for companies. Other measures implemented to promote innovation in the industrial sector include: 1. Matching Fund Programs by PMU-C and the National Innovation Agency (NIA), where the government and enterprises jointly invest in research projects. 2. Thai Innovation Catalogue (government procurement program). 3. Innovation Club bringing together public and private organisations to develop solutions and enrich the innovation ecosystem, scaling up Thai startups. 4. Various investment incentives provided by the Board of Investment (BOI). 5. Tax deductions for R&D expenses. 6. Digital transformation in SMEs by the Digital Economy Promotion Agency. 7. Tax incentives promoting high-skilled manpower development under the Thailand Plus Package. 8. Innovation Fund for SMEs initiated by the Federation of Thai Industries (FTI). 9. Thailand Business Innovation Research (TBIR) and Thailand Technology Transfer Research (TTTR) - funding programs aimed at encouraging local enterprises to engage in research demanded by the government or public sector. |
| Türkiye | The Government provides extensive funding for research, development and innovation (RDI) projects aligned with national targets. The Ministry of Industry and Technology (including Regional Development Agencies), the Small and Medium Industry Development Organisation - KOSGEB), and the Scientific and Technological Research Council of Türkiye (TÜBITAK) are Türkiye's leading governmental agencies in innovation and entrepreneurship funding. Measures such as target-oriented and co-creation-based models, industry 5.0, support for technology-oriented startups, and integration with the finance sector are prominent in government support. In recent years, the green transformation of Türkiye's economy and industry has become essential for maintaining competitiveness and trade relations with the EU and third countries. The 'Green Deal Action Plan' by the Ministry of Trade provides a strategy for achieving a green shift in all sectors of the economy. 'The action plan includes 32 objectives and 81 actions across nine categories to power Türkiye's transition to a more sustainable, greener economy in line with the goal of making Europe the first climate-neutral continent by 2050. The Action Plan mainly aims to contribute to Türkiye's transition to a more sustainable, resource-efficient and green economy. For the effective implementation of the Action Plan, on a technical level, nineteen 'Specialized Working Groups' has been set up on thematic areas such as carbon border adjustment mechanism, national carbon pricing, national circular economy, clean energy, sustainable smart mobility, sustainable agriculture as well as specific sectors such as aluminum, cement, steel, textile and construction.' Environmentally friendly innovative investments and R&D-based supports are crucial for Türkiye's green development-oriented economy model and within the Twelfth Development Plan. The plan, covering 2024 to 2028, aims to make Türkiye a global power centre for innovation and entrepreneurship. Policy measures are planned based on the quadruple helix innovation system involving the private sector, universities, the public sector, and society. The 2023 'Industry and Technology Strategy,' prepared and published by the Ministry of Industry and Technology, sets targets for industry and technology. The Strategy has 5 components: high technology and innovation, digital transformation and industry move, entrepreneurship, human resources, and infrastructure. In accordance with the targets in the 11th Development Plan and with the priority technology areas determined by Presidency's Science, Technology and Innovation Policies Council, critical technologies in Industry and Technology Strategy (2019-2023) are determined as; 5G and beyond, AI, robotics and autonomy, IoT, big data, cybersecurity, blockchain, additive manufacturing, super performance computing, unmanned aerial vehicles, space technologies, nanotechnology, biotechnology, agricultural technologies and energy technologies. In line with the objectives of the "2023 Industry and Technology Strategy" and the "11th Development Plan", the "Mobility Vehicles and Technologies Roadmap" and the "Smart Life and Health Products and Technologies Roadmap" were prepared by the Ministry of Industry and Technology and put into practice with the Presidential Circular dated June 9, 2022. The National Technology Entrepreneurship Strategy aims to create a competitive technology entrepreneurship ecosystem. The Ministry of Industry and Technology prepared the Strategy in collaboration with startup ecosystem actors. The Startup Council, chaired by the relevant Deputy Minister, develops policies to support technology startups. Within the 'Green Deal Action Plan,' coordinated by the Ministry of Trade, Türkiye has conducted 'Green Growth Technology Roadmap' studies for critical sectors such as iron and steel, aluminium, cement, chemicals, plastics, and fertilisers. Technological solutions identified in these roadmaps contribute to the green transformation of the economy, sustainable growth, and the country's competitiveness in exports. Co-creation-based collaborations are emphasised through initiatives such as the Technology Readiness Level scheme. Support mechanisms aim to increase knowledge and technology transfer between universities, research infrastructures, and the private sector. TÜBITAK's Priority R&D and Innovation Areas Study for 2022-2023 includes 264 priority topics, focusing on digitalisation and green technologies. The priority RDI topics have three main pillars: (i) priority and key technologies, (ii) compliance with the EU Green Deal and adaptation to climate change, and (iii) strategic and need oriented priorities. Türkiye's efforts to align its national research and innovation system with EU policy objectives and increase participation in Horizon Europe demonstrate its commitment to convergence with the European Research Area. The green and digital transition focus, the European Green Deal, and the Innovation Union commitments reflect Türkiye's alignment with ERA priorities and EU policy objectives. |
| Ukraine | MES of Ukraine has developed a draft law of Ukraine "On Amendments to Certain Laws of Ukraine on Stimulating Activities in the Sphere of Technology Transfer" (Registration No. 4623 of 21 January 2021) to increase the implementation (commercialisation) of research results. To support business innovation and innovative entrepreneurship, the draft law proposes introducing the following financial tools: innovation vouchers; a mechanism for foreign patenting at the expense of the government budget; subsidies for projects by domestic industrial enterprises to create high-tech industries, with the participation of domestic research institutions or HEIs. The draft law does not contain detailed schemes and mechanisms to implement innovation vouchers, but establishes such an opportunity for the government and participants in innovation activities. The draft law defines innovation vouchers as certificates provided on a free and competitive basis to a legal entity or individual for one year from the date of receipt, and guarantees non-refundable government funding for work and services targeting the commercialisation of technologies and/or their components. The procedure for providing and using innovative vouchers will be developed after the law is adoption, which will be reflected in the next resolution of the Cabinet of Ministers of Ukraine. The draft law is being considered by the Committees of the Verkhovna Rada of Ukraine (the parliament). The Ministry has developed several normative and legal acts aimed at creating favorable conditions for the activation of innovative activities, the implementation of innovations, and the functioning of innovative infrastructure, in particular: The draft Law of Ukraine "On Support and Development of Innovative Activity," which is currently at the stage of approval with the central bodies of the executive power; Ðssential is the adoption of the Law of Ukraine «On Amendments to the Budget Code of Ukraine» on April 11, 2023, which introduced additional incentives for state universities regarding innovation and financial autonomy. This is extremely important in a period of insufficient budget funds for state support of scientific research and innovative activities in state; Draft resolutions of the Cabinet of Ministers of Ukraine "On the introduction of an experimental project on the creation of a startup-school-incubator-accelerator network based on higher education institutions and scientific institutions", "On the normalization of the procedure for the creation and operation of regional technology transfer centers" to develop the national innovation ecosystem by expanding network of infrastructure elements, active involvement of scientists, a combination of scientific and industrial potential, ensuring technology transfer and commercialization of scientific results, as well as "On approval of the Procedure for providing financial support for the creation of high-tech industries with the participation of higher education institutions and scientific institutions on the terms of co-financing" for development innovatively active entrepreneurship and interaction of industry with the scientific community. On August 9, 2022, the Government approved the draft Law of Ukraine "On Innovation Parks", which was developed by the MES of Ukraine to determine the legal and organizational basis for the creation and operation of innovation parks on the territory of Ukraine to ensure the development of the Ukrainian economy innovatively. The Ministry is creating digital tools that, in martial law conditions, make it possible to preserve and help realize the scientific and innovative potential of researchers and innovators. |
| United Kingdom | Increasing innovation will enhance productivity across the economy, and in turn bring jobs, growth and prosperity to all parts of the UK. We need the whole system of businesses, government, R&D-performing organisations, finance providers, funders and others, to come together to achieve our innovation ambitions. The UK Innovation Strategy (published in late 2021) outlined an approach for bold, specific, measurable, and timed innovation missions bringing UK brilliance in science and innovation to tackle major challenges faced by the UK and the world and drive capability in key technologies. It had four pillars: - Unleashing business - we will fuel businesses who want to innovate; - People - we will make the UK the most exciting place for innovation talent; - Institutions and places - we will ensure our research, development and innovation institutions serve the needs of businesses and places across the UK; - Missions and technologies - we will stimulate innovation to tackle major challenges faced by the UK and the world and drive capability in key technologies. Innovation Missions will galvanise innovators across diverse UK sectors and disciplines, combining the insight, expertise, energies and resources of government, industry, civil society, and academia. The achieve these missions the UK is employing a diverse range of funding and policy instruments to support our mission objectives and to make the most of the wider economic benefits missions offer. One such example is the UKRI challenge fund which is backed by £2.6 billion of public money, with £3 billion in matched funding from the private sector. The UK Science and Technology Framework in 2023 included identification of critical technologies, signalling UK strengths and ambitions to ensures that all stakeholders have the confidence to invest their time, money and effort supporting our science and technology vision, highlighting outcomes for 2030 for private sector investment, and set a vision for sufficient supply of capital at all stages with increased participation from domestic investors, and an environment to grow and scale large globally competitive science and technology companies that drive growth in the economy and high-skilled employment opportunities for citizens. |
| Viet Nam | Small and medium enterprises, particularly start-ups, struggle to access the capital and credit necessary for technological innovation due to issues such as collateral conditions and required years of operational experience. Many businesses lack a long-term vision for sustainable development through technological advancement. Technological innovation within these enterprises tends to be limited and unsystematic. There are certain issues with existing mechanisms and policies, leading to an underutilisation of the science and technology development fund for investment, technological application, and innovation support. Some tax incentives aimed at investment in scientific research and technological innovation prove challenging to implement due to inconsistent legal regulations. The existing policy on public procurement fails to incentivise the use of products and services resulting from domestic businesses' scientific research, innovation, and technological development activities. There is a notable absence of policies and measures to support businesses in introducing products resulting from research, development, and technological innovation to potential markets. A key policy direction involves advancing the national innovation system, in which enterprises play a central role and higher education institutions are influential research bodies. For enterprises, there is a need to review and amend regulations on approving scientific and technological tasks, simplifying administrative procedures, and creating favourable conditions for enterprises to participate in research and apply the results in industry. It's crucial to continue implementing policies that vigorously develop innovative start-ups, positioning creative start-ups as a driving force for growth model innovation. The construction and development of national innovation centres should be prioritised, with a push to establish national innovation start-up centres in Hanoi, Da Nang and Ho Chi Minh City. Strengthening the linkages of domestic and international innovation networks is also necessary. Policies that encourage the private sector, individuals, and large enterprises to invest in venture capital for innovative start-ups should be promoted. A public-private cooperation mechanism in venture investment for science, technology and innovation needs to be built. Additionally, it's important to deploy comprehensive and synchronous solutions to improve labour productivity, product quality, and goods quality of enterprises through supporting activities on innovation, transfer, application, and ownership. This includes a focus on technology, standards - measurement - quality, exploitation of inventions, establishment of intellectual property rights, and dissemination of science and technology information. |