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SCIENCE, TECHNOLOGY AND INNOVATION POLICY
REFORMATION TRENDS IN TRANSITION COUNTRIES ON
THE MODEL OF ARMENIA
Tigran ARZUMANYAN 2nd PhD School on Innovation and Economic
Development: Globelics Academy 2005, Lisbon, Portugal
23 May – 4 June, 2005
A LITTLE HISTORY ...
• During the Soviet period Armenia developed a ramified and actively operating system of research and technological institutions.
• These capabilities were oriented to a significant degree toward supporting the Soviet military-industrial complex and most of research institutions were well financed directly from Moscow.
After the collapse of the USSR...• The difficulties of a transition period,
worsening of the economic situation, destruction of previous economic, scientific and other connections, sharp decrease of a demand for a traditional Armenian production (including intellectual) have unavoidably led to the sufficient reduction in the activities of many scientific and technical subdivisions and relevant S&T capacious productions/industries.
PROBLEMS FACEDreduced budget allocations to R&D, mainly
used for salaries and covering growing operating costs;
sharp reduction of total number of research staff and slowdown of inflow of young specialists to science and technology resulting in deficiency of practicing scientists in the 25-40 age bracket;
emigration of qualified Armenian specialists to the developed foreign countries or other sectors of the economy.
DYNAMICS OF GERD/GDP %
(1990-2002)
0,5
0,3
0,2
0,3
0,2
0,1 0,1
0,2
0
0,1
0,2
0,3
0,4
0,5
0,6
1990 1996 1997 1998 1999 2000 2001 2002
Source: National Statistical Service of Armenia, 2003. Statistical Yearbook of Armenia, www.armstat.am
FINANCIAL ALLOCATIONS TO R&D
Gross Domestic Expenditure on R&D
• (GERD) was 0,2 % of GDP in 2002
• In 2002 GDP was around 50% of GDP 1990 in nominal values;
• Governmental funds according to type of activity: – about 70% to basic research
– about 27% to applied research
– about 3% to experimental developments
Source: National Statistical Service of Armenia, 2004. Statistical Yearbook of Armenia, www.armstat.am
124 122
73
46 44
10194 96
8288 91 96 99
0
20
40
60
80
100
120
140
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
NUMBER OF R&D INSTITUTIONS (1991-2003)
NUMBER OF RESEARCH PERSONNEL(1997-2003)
20000
7716 81336528 7309 6965 6737 6277
0
5000
10000
15000
20000
25000
1990 1997 1998 1999 2000 2001 2002 2003
Source: National Statistical Service of Armenia, 2004. Statistical Yearbook of Armenia, www.armstat.am
S&T INFRASTRUCTURE
Parliamentary Commission for
Science
Department of Science Ministry of Education and
Science
Presidium of National
Academy of Sciences
Science Departments of Relevant
Branch Ministries
R&D Institutes
University R&D
Subordinated R&D Institutes
Source: Compiled by the author
MAIN R&D INSTITUTIONS OF ARMENIA
NATIONAL ACADEMY OF SCIENCES
- Total number of Institutes - 40
Including:
• Division of Physical, Mathematical & Technical Sciences - 13 Institutes, in the fields of ICT, Physics, Nuclear Physics, Astrophysics, Radiophysics &Electronics, Geophysics, Engineering Seismology, Mechanics, Mathematics, Geological Sciences, etc.
NATIONAL ACADEMY OF SCIENCES (2)
• Division of Natural Sciences - 16 Institutes,
in the fields of:
Biotechnology, Medical Genetics, Environmental Studies, Neurochemistry, Chemical Physics; Fine Organic, General and Inorganic Chemistry, Microbiology, Physiology, Ichthyology, Zoology, Physiology, Hydroponics, Botany, etc.
NATIONAL ACADEMY OF SCIENCES (3)
• Division of Humanities and Social Sciences - 11 Institutes, in the fields of:
Archaeology, Ethnography, Oriental Studies,
Philosophy, Sociology, Law, Economics,
History, Armenian Studies, Art History,
Linguistics, etc.
MINISTRY OF EDUCATION AND SCIENCE
• 20 national universities supervised by the Ministry of Education & Science
including:
Yerevan State University, Medical University,
Engineering University, Agricultural Academy, etc.
• About 70 private universities established during last years
OTHER BRANCH R&D INSTITUTIONS
• Ministry of Trade & Economic Development About 40 institutes (Yerevan Physics Institute, Institute of Biotechnology, Institute of Optic-physical Measurement, Institute of Applied Chemistry, etc.)
• Ministry of Health Care
10 institutes involved in various medical research
• Ministry of Agriculture
6 institutes
RESPONSIBILITIES OF EXECUTIVE BODIES
MINISTRY OF EDUCATION & SCIENCE
• Responsible for general S&T policy making in the country
• Management of Universities’ R&D
• Institutional & project based distribution of budget funding to all R&D institutions based on the decision of Expert Commissions (Peer review)
MEMBERS OF EXPERT COMMISSIONS
• Experts from each R&D Institution & University
• Scientific Councils of R&D Institutes and Universities elect experts
Problems
• Impartiality of decision-making is questionable (conflict of interests)
• Need for involvement of independent experts
NATIONAL ACADEMY OF SCIENCES
The Law assigns the Academy to:
• Manage R&D Institutes of NAS RA
• Coordinate basic research carried out throughout Armenia
• Act as official scientific consultant to the highest governing bodies of the country, proposals of which in the field of S&T are to be necessarily taken into discussion.
RECENT DEVELOPMENTS IN S&T&I
• During last years Armenian Government initiated steps to improve the situation and declared S&T and Innovation Policy as priority area for development.
• Law on Scientific & Technological Activity adopted in 2000 to regulate interrelations between research & technological organizations, state bodies and consumers of research outcomes. It states the need for promoting innovation and commercialization of research outcomes as main factor of economic growth.
RECENT DEVELOPMENTS IN S&T (2)
• In 2002 the Government also specified main scientific directions as priority areas for development as follows:– Armenian Studies;– Information Technologies– Basic research promoting applied research of vital
importance– Advanced Technologies (Biotechnology &
Nanotechnology)– New Energy Sources and New Materials– Risk Factors & Human Health
PROBLEMS
• Absence of S&T&I coordinating body at the highest governmental level;• Status of the academic institutes as non-commercial organizations as restricting factor to commercialization of R&D results;• The measures undertaken are mostly of declarative character and don’t provide real mechanisms for achieving the stated objectives;• Declared priority areas are very general and hardly to be developed all together by scarce funds allocated for R&D.
RECENT DEVELOPMENTS IN S&T (4)
Along with stated problems certain positive trends can be observed:
• According to officials, growth in IT sales has been nearly 20% per year during last years, accounting for 2% of the GDP (about $ 50 million USD in export revenues in 2003).
• Around 200 small private software companies have emerged in recent years, working primarily through outsourcing contracts with large Western software firms.
SUCCESS STORIES
• Enterprise Incubator Foundation founded in 2002 to assist:
• Building successful business incubation mechanisms for IT start-ups.• Stimulate growth in IT sector by providing interrelated services;• Drive Armenian technology products to international market;• Attract foreign investments.
SUCCESS STORIES (2)
• Open Source Armenia, initiated in 2003
• The project in Armenia in the IT area aimed at developing a community of IT professionals and exposing their potential to the world. • Provide organizational, legal, technical, management, marketing and financial support for the OSA open-source software projects.• Encourage development of hi-tech enterprises in the country.
SUCCESS STORIES (3)• Viasphere Technopark
• State-of-the-art technology park located in Yerevan providing infrastructure to local startups and ICT companies worldwide looking to extend their core development offshore;• Currently houses several US-based subsidiaries developing advanced technologies in variety of ICT fields.
CONCLUSIONS
• To ensure further development of S&T and Innovation processes in Armenia urgent reformation of the whole system is needed.
• Establishment of coordinating body (Council on S&T&I ) to develop system reformation recommendations and carry out enforcement;
• Creation of special state programmes directed to promoting academy-university-industry cooperation;
CONCLUSIONS (2)
• With presently available resources it seems to be very difficult for Armenia to sustain its robust and huge R&D infrastructure, particularly, in the field of basic research with sometimes overlapping research activities. This necessitates some realignment of the overall governmental research structure with the concentration of available resources for establishment of a few centers of excellence in the declared priority areas.
THANK YOU!
Tigran ArzumanyanForeign Relations Department,
National Academy of Sciences of ArmeniaInstitute of Philosophy, Sociology and Law
E-mail:[email protected]