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2 Report prepared by: Simas Dunauskas, Vilius Jaujininkas, Justinas Lapienis, Dr Ramojus Reimeris, Dr Vytautas Valatka Thanks for assistance in preparing the report: Dr Žilvinas Martinaitis. Expert, UAB Visionary Analytics Layout and design: Paulė Gumbelevičiūtė This report has been prepared as a result of the implementation of the project Development and Implementation of the System for Identification of Priorities of the Science and Innovation Policy (project code 0..-ESFA-V ) Read more about the implementation of Smart Specialisation at: Our other studies: MOSTA 07

3 Contents Summary Introduction.. Lithuanian RDI system in an international context.. Overview of the development of economic sectors... Growth trends... Growth prospects..3. Summary.3. Research potential.3.. The scope of Smart Specialisation publications.3.. International collaboration and citation indicators.3.3. Distribution of publications in journals.3.. Thematic analysis.3.5. Output by institution.3.6. Patents.3.7. Summary.. Performance under the Horizon 00 programme... Funded applications and organisations... International partnerships of Lithuanian organisations. Results of the first call under the Intellect instrument.. Potential of priorities to contribute to the implementation of the programme.. Thematic concentration.3. Expected outcomes.. Summary 3. Status of priorities. Further steps in developing the monitoring system Annexes 6

4 Abbreviations and explanations Abbreviations GDP Gross domestic product CPMA Central Project Management Agency EU European Union EU-8 EU Member States: EU-5 (Austria AT, Belgium BE, Denmark DK, Finland FI, France FR, Germany DE, Greece GR, Italy IT, Ireland IE, Luxemburg LU, Netherlands NL, Portugal - PT, Spain - ES, Sweden SE, United Kingdom - UK) and EU- (Bulgaria BG, Czech Republic CZ, Croatia HR, Cyprus CY, Estonia EE, Hungary HU, Latvia - LV, Lithuania LT, Malta MT, Poland PL, Romania RO, Slovakia SK, Slovenia SI) EC European Commission ESFA European Social Fund Agency FTE - Full-time equivalent NACE Statistical classification of economic activities in the EU MoF Ministry of Finance ICT Information and communication technology RCL Research Council of Lithuania LBSA Lithuanian Business Support Agency MITA Agency for Science, Innovation and Technology MOSTA Research and Higher Education Monitoring and Analysis Centre RDI Research, experimental development and innovation SME Small and medium-sized enterprises OECD Organisation for Economic Co-operation and Development DPFC Description of project financing conditions GII Global Innovation Index MoES Ministry of Education and Science MoE Ministry of Economy Explanations Research and experimental (socio-cultural) development (RDI) means creative work undertaken on a systematic basis in order to increase the stock of knowledge of nature, man, culture and society and the use of this knowledge. Smart Specialisation Strategy means a strategy of state aid for research and innovation, which Lithuania, like other EU countries, has developed by determining research, experimental development and innovation priorities based on the available or potential competitive advantages. Researcher means a person with higher education who develops knowledge, conceptualises or creates new products, processes, methods and systems or directs research and experimental (socio-cultural) development projects. European Innovation Scoreboard (EIS) is a European Commission instrument intended to assess and compare the innovation activity of EU Member States. In 00, EIS was updated and consists of 5 indicators (instead of 9), which provides a better picture of national research and innovation systems. Global Innovation Index (GII) is an instrument de- veloped by the Business School for the World (IN- SEAD), World Intellectual Property Organisation (WIPO) and Cornell University, which benchmarks the innovation potential and performance of world economies. The index calculation methodology has changed little since 03. The index today consists of 8 indicators. PISA (Programme for International Student Assessment) is the OECD international assessment of 5-year-old students performance in sciences, mathematics, and reading. PIAAC (Programme for the International Assessment of Adult Competencies) is the OECD international survey of adult competences. Web of Science is the scientific citation and bibliographical information database maintained by Clarivate Analytics. InCites is the bibliometric analysis tool of the Web of Science Core Collection data. The average journal impact factor percentile shows the average number of times articles from a journal have been cited among journals of a similar subject category. For example, if the value is, articles from the journal have been cited in over 99% of journals of a similar subject category.

5 The journal impact factor (JIF) shows the average number of times articles from a journal published in the past two years have been cited among journals of a similar subject category. For example, if in 05 the JIF value is, it means that a publication which appeared in 0 05 was on average quoted once. Q publication means that the research findings have been published in a journal with an impact factor within top publications of the Web of Science of the JIF distribution of a certain category. Main publication means a publication assessed as fully complying with the Smart Specialisation priority. Secondary publication means a publication assessed as only partially complying with the Smart Specialisation priority. H index denotes the maximum number (N) of publications within a certain area with at least N citations each (H=N). Normalised citation indicator means the number of citations of the publication normalised for field differences, year and type of publication. The world average is (a value of more than means that the publication has been cited above the world average). International collaboration publication means a publication which has at least two country affiliations. Average percentile of a publication shows the number of times the average publication of a set of publications has been cited compared to papers in the same strata (normalised for year, field differences and the type of publication). For example, if the value is, the average publication from the set of publications has been cited 99% within the strata (greatest number of citations). Horizon 00 is the main EU research and innovation financing programme available for Intellect is the biggest Lithuanian tendering instrument of the ESF 0 00 funding period intended to encourage the country s companies to invest in RDI, innovation infrastructure and to establish new SMEs. HH index is the Herfindahl-Hirschman Index, one of the most commonly accepted concentration indicators. The minimum value of the index would be acquired if all components of the structure were equal. List of topics of Smart Specialisation Short name (full name) E Energy and sustainable environment E Smart energy systems (smart systems for energy efficiency, diagnostic, monitoring, metering and management of generators, grids and customers) E Energy from biomass and waste (energy and fuel production using biomass / waste and waste treatment, storage and disposal) E3 Digital construction (technology for the development and use of smart low-energy buildings) E Solar energy (solar energy equipment and technologies for its use for the production of electricity, heat and cooling) S Health technologies and biotechnologies S Molecular technologies (molecular technologies for medicine and biopharmaceutics) S Advanced technologies for health (advanced applied technologies for individual and public health) S3 Advanced medical engineering (advanced medical engineering for early diagnostics and treatment) M Agro-innovations and food technologies M Safer food (sustainable agro-biological resources and safer food) M Functional food (functional food) M3 Biorefinery (innovative development, improvement and processing of biological raw materials)

6 G New production processes, materials and technologies G Photonic and laser technologies (photonic and laser technologies) G Functional materials and coatings (functional materials and coatings) G3 Structural and composite materials (structural and composite materials) G Flexible production systems (flexible technological systems for product development and production) T Transport, logistics and information and communication technologies T Smart transport and ICT systems (smart transport systems and ICT) T International transport corridors (technologies / models for the management of international transport corridors and integration of modes of transport) T3 Digital content (advanced digital content, content development technologies and information interoperability) T Cloud computing and services (ICT infrastructure, cloud computing solutions and services) V Inclusive and creative society V Educational technologies (modern self-development technologies and processes which encourage creative and productive personality building) V Implementation of breakthrough innovations (technologies and processes for the development and implementation of breakthrough innovations)

7 Summary The first monitoring report of Lithuanian Smart Specialization Strategy (thereafter S3) is dedicated for policymakers, policy implementing agencies, researchers and related institutions, business representatives and the public. This report is intended to inform on progress of S3 and the prioritized fields of research, experimental development and innovation. Our aim is to stir the political and public debate regarding the progress of the strategy implementation. Furthermore, the report is intended to present the monitoring methodology to local and foreign partners. However, some of the monitoring findings should be taken cautiously, because their accuracy is not complete. Moreover, with this report we expect to initiate discussions and receive the necessary feedback regarding the strategy and its monitoring. We hope that the shared insights will be helpful in improving the strategy s implementation and monitoring function. This summary has three main parts. In the first the objects and the methods of monitoring are briefly introduced. The second part presents the main results, and the third part covers further steps of Lithuanian S3 monitoring. Monitoring objects and methods Lithuanian S3 is aimed at developing a mature research and entrepreneurial potential in various knowledge, technology and business fields. In this report Lithuania s innovation system was examined in the EU and regional context based on innovation indices. Furthermore, comprehensive monitoring of the S3 was executed along separate topics. Namely, following the structure of Lithuanian S3, the six priority areas and 0 priorities. Three main sections were monitored: Economic sectors. S3 representing economic subsectors were in accordance to NACE distinguished and mapped in regard of 00 0 data and three indicators: ) added value created, ) number of people employed, 3) material investments. Research potential. Current research potential was assessed according to bibliometric data in the period of 0 05 (citation, international collaboration indicators, keywords), and the public disclosure of Lithuanian patent applications in the period of Research and innovation activities. Science and business engagement into RDI was identified by observing participation in projects funded by two instruments: Horizon 00 (0 06) and business RDI projects Intellect (06). Monitoring and its methodology faced some challenges. The S3 priorities are of horizontal nature and does not directly correspond with the economic activities, fields of research or other classification groups. That made linking the monitored priorities to economy and research complicated. However, the challenges were partially solved by case-by-case approach. Nevertheless, the findings of this report should be interpreted cautiously and regarded as indicative. The report should not be used for policy decision making and / or amending the S3. A more precise Lithuanian S3 scene will be available to present once the full policy mix will be launched and monitored. Main results of monitoring Since 008 composite indicators of country s RDI system have improved at the same pace as of the rest of EU Member States. Nevertheless, growth of Lithuanian exports and of GDP is slowing down. Innovation and knowledge based exports are hoped to eventually boost the Lithuanian economy. The situation of the Lithuanian RDI priorities was assessed based on selected monitoring indicators (Annex ) and S3 priorities were assigned according to their results: High critical mass priorities. Have potential priorities. Low critical mass 5 priorities. 7

8 High critical mass Priorities of the high critical mass were characterized by the largest number of Q publications (63 to ), patenting process (33 patents in total), research internationalization ( out of 3 publications are with foreign co-authors(s)), and the highest financing from Intellect / Horizon 00 instruments (EUR 0 millions). These priorities are: Molecular technologies Advanced technologies for health Functional materials and coatings Photonic and laser technologies Have potential Priorities demonstrating some potential were assigned regarding some outstanding features. Advanced medical engineering, structural and composite materials, smart energy systems, and solar energy were selected for greater patenting activity (3 patents in total). Energy generation using biomass and waste, structural and composite materials, smart transport and ICT systems, digital construction, safer food were selected according to higher number of publications ( in total). However, some priorities were attributed to the group with some reservations. These are flexible production systems, functional food, and cloud computing and services. Low critical mass The priorities assigned to this group features poor results regarding the aforementioned indicators. Furthermore, fewer than / 3 of the funding applications within Intellect instrument met the criteria of RDI or / and S3. The priorities with the respective funding are: Digital content EUR 3.3 millions Implementation of breakthrough innovations EUR.7 millions Educational technologies EUR.7 million International transport corridors EUR 0.8 million Biorefinery EUR 0 Further steps S3 is a large-scale public policy construct. The complexity of the strategy also leads to a complex and difficult process of monitoring. Therefore, we are looking forward for insights and observations on how the monitoring methodology could be improved, or what could be added for a more precise assessment of the situation and its changes. For the next monitoring report, we () will identify basic monitoring shortcomings and will supplement and verify the existing monitoring indicators, and () with the accumulation of data, we will have to ensure a systematic and unified codification of the S3 projects. 8

9 Introduction The implementation of the programme on research, development and innovation (hereafter Smart Specialisation) addresses structural changes in the country s economy - high added value, knowledge and highly skilled, labour-intensive economic activities should account for a larger share of GDP. The Smart Specialisation priorities and their implementation programme were approved in 0 by the Government of the Republic of Lithuania. It was also established that the monitoring process of RDI priorities implementation should be executed in a systematic manner and that compliance with the RDI Priorities Action Plans must be ensured. The Research and Higher Education Monitoring and Analysis Centre (MOSTA) together with the Lithuanian Ministry of Economy (MoE) are responsible for carrying out the monitoring and assessment. impact on the content of this report. First, many instruments of the Smart Specialisation have not been implemented yet (see Table ), with only some first agreements having been concluded. No actual physical progress has been achieved under any of the instruments. Therefore, it is not yet possible to provide any kind of comprehensive analysis on progress. Therefore, the results of the first call under the single but the largest Intellect instrument are briefly discussed in the report (Chapter ) and the focus is rather on the context of the implementation of priorities (Chapter ) changes in the economic and bibliometric indicators and participation rate in the Horizon 00 programme. The report does not analyse the results of some of the instruments separately, but provides a list of projects implemented under these instruments (Annex ). This report provides the first results of the monitoring of the implementation of the priorities of Smart Specialisation. Two factors had a significant Table. Progress of implementation of RDI policy instruments Instrument Implementing agency Financing allocated for the instrument Call Financing allocated for the projects RDI infrastructure development and integration into the European infrastructures CPMA 88,0 6,8 0,9 3 0,0 Intellect. Joint science and business projects LBSA 39,0 39, SmartInvest LT+ LBSA 3,,8,5 Capacity building of scientists and other researchers ESFA 3,0 6,8,3 3,, Inoklaster LT LBSA 6, 0,5 Inogeb LT LBSA 8,7 3, SmartInvest LT LBSA 5,8, 9

10 Instrument Implementing agency Financing allocated for the instrument Situation* Scientific competence building of scientists, other researchers and students through practical scientific activities RCL 68, Targeted research in the field of Smart Specialisation RCL,9 Joint science and business projects LBSA 35,9 Pre-commercial procurement LT LBSA 9, Promotion of operations of the centres of excellence and innovation and technology transfer CPMA 6, Technoinvest MoF 7,6 3 RDI result commercialisation and promotion of internationalisation MITA 3,0 Smartpark LT LBSA 3,0 3 Innovation vouchers MITA 0, Development of centres of excellence CPMA 8,7 Inopatent MITA 3,0 Qualification training of scientists and researchers at knowledge-intensive enterprises ESFA,9 Inoconnect LBSA,8 Independent RDI projects CPMA - - * Situation: approved instrument ; DPFC project ; approved DPFC project 3; announced calls for proposals / continuous selection invitations / lists of state projects ; received applications 5. Sources: 0-00 structural investment portal of the MoF of the Republic of Lithuania. February, 07. Visionary Analytics, services for progress assessment of the implementation of the objectives of the action programme for promotion of RDI. Preliminary Report. 06, information updated at the beginning of February 07. Also, at the time of drafting this report methodological challenges had been met. Smart Specialisation priorities describe groups of products, services or technologies which do not match (or only partially match) types of sectoral economic activities, fields of research and other classification groups. So, the underlying challenge was how to link the priorities with different classifications, specific publications or projects. Applied methodological solutions are described in the relevant sections of the report. Links between priorities and different classifications are still subject to significant restrictions. In view of this, some methodological solutions will be further reviewed in the future to obtain more accurate results. 0

11 .. Lithuanian RDI system in an international context Since 008, the overall indicators of the Lithuanian RDI system have improved at a similar rate to that of all the other EU Member States, and currently the growth of Lithuanian exports and GDP are slowing down. According to the 06 EU Innovation Scoreboard, Lithuania belongs to the group of moderate innovators and is ahead of Bulgaria, Croatia, Latvia and Romania. In the 06 rankings of the Global Innovation Index (GII), which is based on a broader concept of innovation, Lithuania ranked 39th in the world. If the rate of change remains at its current level, Lithuania could reach the EU-8 average in the innovation scoreboard by 080, while according to the GII, Lithuania could reach the EU-8 average by 500 (see Fig. and Fig. ). Of course, the place of Lithuania in the innovation indexes is not a value in itself and the forecast is only an extrapolation of existing trends. However, the trends show that: (a) the reforms and investment of the last decade did not allow a significant breakthrough to be achieved and (b) further concerted efforts and targeted investment are required. Fig. Innovation Scoreboard: changes in indicators of Lithuania and forecasts* * Since 05, index values show a forecast based on a linear trend. Source: Innovation Scoreboard Fig.. Global Innovation Index: changes in indicators of Lithuania and forecasts* * Since 05, index values show a forecast based on a linear trend. Source: Innovation Scoreboard Recalculated rating by MOSTA. An error was identified and reported in two GII indicators on Education:... Expenditure for education, % of GDP;... Public expenditure per student, % GDP per capita. After the correction, Lithuania ranks 39th, not 36th among 8 countries.

12 Compared to the EU average, the strongest aspects of the Lithuanian RDI system is: Good overall economic infrastructure and high quality legal regulation. These indicators are broadly reflected in the GII (see Fig. ). Human resources (see Fig. 3). Lithuania is distinguished in the EU with some of its education system tendencies: a greater number of the population with secondary education and low pupil-teacher ratio in it; a large share of population with higher education due to the low popularity of vocational education. However, PISA and PIAAC studies conducted by the Organisation for Economic Co-operation and Development (OECD) show that the level of skills of both Lithuanian school students and adults are still lower than the EU average. Funding and support. Public RDI expenditures in 05 amounted to 0.7% of GDP (a significant part accounted for EU funding) this indicator corresponds to the EU average. In terms of the volumes of risk capital investment (0.08% of GDP in 05) Lithuania exceeded the EU average. Fig. 3. Innovation Scoreboard dimensions (scaled values) Source: Innovation Scoreboard, 06

13 Fig.. Global Innovation Index dimensions (difference in scores from EU average) Source: Innovation Scoreboard, 06 On the other hand, in terms of the many dimensions of both indices (human resources, funding and support) the Lithuanian RDI system is significantly behind the EU-8 average. Lithuania s main weaknesses are: International competitiveness of the research system remains low. According to the EIS data of 05, only.5% of the publications of Lithuanian researchers were among 0% of the world s best quoted publications (EU average is 0.5%). Based on this indicator Lithuania is ahead only of Bulgaria (3.5%). In addition, since 008, despite fluctuations, this indicator has basically remained unchanged. In terms of international scientific co- publications per million population (in 05 this figure was 355 publications), Lithuania is ahead of only three other EU countries. Nevertheless, since 008, the scope of international cooperation of Lithuanian researchers has grown faster than the EU average. Finally, students from other countries are not attracted to Lithuania for doctoral studies: in 05, doctoral students from non- EU countries accounted for only.% of all doctoral students. Although this result has increased since 008, it remains among the poorest in the EU. Despite pockets of excellence, knowledge-intensity of the national economy is still low. Many indicators included in the international indices attest to this. It is already clear that Lithuania will not achieve the goal of the Europe 00 strategy to reach.9% of GDP investment in RDI. The effect of RDI on the national economy and its competitiveness remains relatively low. Employment in knowledge-intensive sectors has stagnated since 008. The share of export of knowledge-intensive services and medium-high or high-tech products has not changed in the export structure. Corporate revenues from the sales of new products to the market and innovations in private enterprises (within the total turnover) have halved since

14 When programming the EU investment, an ambitious goal of dedicating 0% of the total investment to the RDI system was raised. It is obvious that this investment has so far not led to a significant breakthrough. In general, there has been an imbalance in the RDI system in Lithuania over the past decade: overall conditions were good, the education system well developed and public RDI investments were relatively high. Nevertheless the performance of the RDI system and the impact of RDI on the competitiveness of the country are still relatively poor. This is indicative of a need to review the previously applied investment strategy and governance principles of the system.

15 .. Overview of the development of economic sectors This section is intended to review the development trajectories of economic sectors related to the priorities of the Smart Specialisation Strategy. An overview helps better understand the economic context of the identified priorities, the needs and challenges of individual economic sectors and their further growth prospects. Performed for the first time, such analysis faces considerable methodical challenges (see below). These challenges have been partially dealt with. Methodological challenges and solutions The main methodological challenge is to establish a link between Smart Specialisation priorities and NACE economic sectors. Priorities define groups of products, services or technologies, while aggregated economic data is provided about groups of companies or sub-sectors of the economy defined by NACE. So, monitoring and assessment can rely on two alternatives: (i) direct data aggregation on individual companies which contribute to the implementation of priorities; (ii) association of NACE sub-sectors identified in the official statistics (-, 3- and -digit level) with priorities. Since the implementation of Smart Specialisation is only accelerating, it is not clear which companies will contribute to the implementation of the priorities, but as official statistics of the previous years was given, the second option was selected. The link between priorities and economic sub-sectors was defined following these steps:. The links between Smart Specialisation topics and economic sub-sectors were identified in a high tech development (hereafter HTD) study (Visionary analytics, 0). The study maps the sectors that develop and use products / services technologies proposed in the strategy.. The links established in the HTD study were further adjusted by including only those sub-sectors which develop proposed technologies. 3. The links between each priority and the respective economic sub-sectors are provided in Annex 3. The link established in the manner above has two shortcomings and limitations. First, the data of the economic sub-sectors is relatively old, the most detailed data (NACE -digit level) being from 0. Second, in terms of the content and scope, NACE sub-sectors are only partially suitable for the monitoring the implementation of priorities but relative indicators nevertheless could still be used for monitoring. Large economic sectors are attributed to certain priorities (digital construction, agro-innovations and food technology, and transport). Also, for example, the education sector is at the same time the user and the developer of educational technologies. In addition, the economic sub-sectors of agro-innovations and food technologies, and smart transport and ICT priorities overlap, therefore the data can only be analysed at the level of priority area or group of some priorities. Finally, the sub-sectors related to the advanced medical engineering priority are small and there are no data on them available. Therefore, this priority is not reflected in the analysis. In light of these limitations, the methodology will be improved or replaced in the future (e.g. indicators of the groups of companies will be examined).... Growth trends In many sectors of the economy which contribute to the implementation of the RDI priorities, the number of employed staff and the produced added value in 00 0 grew considerably faster than the average in Lithuania, 6% and 55% respectively (see Fig. 5). Sub-sectors which develop photonic and laser technologies demonstrated rapid extensive development. The growth in the number of FTE employees (hereafter - employees) was nearly 50% faster than the Lithuanian average. In the meantime, sub-sectors which develop molecular technologies are characterised by exceptional added value growth which doubled over five years. Of course, the sub-sectors which contribute to the implementation of the above priorities are small, and this makes it easier for them to demonstrate such impressive growth compared with, for example, the ICT or transport sectors. Among the large eco- 5

16 nomic sub-sectors, those which contribute to the implementation of the digital construction priority enjoyed the most dynamic growth. The number of employees there grew as fast as it did in Lithuania. In the meantime, their added value grew particularly fast, similarly to the rate within the molecular technology area. The number of employees also grew strongly in sub-sectors which contribute to ICT technology development. Nevertheless, the value-added growth there was slower than the country s average, as it decreased by 7% (due to extremely strong competition within the telecommunications sub-sector). The following economic sub-sectors which contribute to the implementation of the three RDI priorities demonstrated poorer added value and employee change dynamics than the average in the Lithuanian economy: Agro-innovation and food technologies poorer performance within the food production sub-sector could have been caused by losses in the Russian market due to sanctions which previously accounted for a substantial share of production. Educational technologies state funding for education has a significant impact on the economic indicators of this priority. The number of employees and the added value created by the contributing sub-sectors grew at a slower rate than the average growth rate in Lithuania. In addition, added value in the publishing sub-sector grew even more slowly and the number of employees declined there. Smart energy systems poorer indicators of power distribution and transmission sub-sectors in the short term could have been determined by business optimisation and price regulation in companies in which the state holds the major share. Fig. 5. Changes in employment rates and added value in the sectors which contribute to the implementation of the priorities in 00 0 vs Lithuanian average 6 Source: Statistics Lithuania Calculation by MOSTA

17 ... Growth prospects It is likely that in the future those sectors which today are highly productive and invest in equipment, machinery, premises, etc. will continue to grow in strength and will remain competitive. The Smart Specialisation priority map according to these indicators is provided in Fig. 6. Sectors which contribute to the implementation of the following RDI priorities: molecular technologies; smart energy systems; ICT (which covers digital content, cloud computing and services priorities); functional materials and coatings and photonic and laser technologies can be characterised by the highest productiv- ity and the largest investments in tangible assets. The weakest performance has been recorded in the sectors of advanced technologies within health and educational. On the one hand, poorer performance can be explained by lower investment and productivity-intensity of service sectors in general. Finally, those sub-sectors contributing to the implementation of digital construction priority make the least use of the investment potential of all the sub-sectors. Although added value (includes profits and wages) significantly increased, investments in tangible assets were among the smallest within the priority. Fig. 6. Added value and material investment in the sectors which contribute to the implementation of priorities, 0 Source: Statistics Lithuania Calculation by MOSTA The results obtained should be interpreted with caution. The link between priorities and economic sub-sectors must be further improved. The problems of linking allowed certain priorities to only be examined in groups. Certain indicators are more favourable to production, while others to services sub-sectors...3. Summary. According to a survey of business structure carried out by Statistics Lithuania, the changes in produced added value and the FTE employees in 00 0 economic sub-sectors related to the priorities of the Smart Specialisation Strategy may be classified as follows: Sub-sectors where added value and the number of employees increased at a lower pace than the country s economy: agro-innovation and food technologies, educational technologies and smart energy systems.. Sub-sectors where added value grew faster, but the number of employees increased more slowly than the country s economy: solar energy. 3. Sub-sectors where both added value and the 7

18 number of employees grew faster than the country s economy: photonic and laser technologies, structural and composite materials, flexible production systems, generation of energy from biomass, transport, molecular technologies, digital construction, and the implementation of breakthrough innovations.. Sub-sectors where the number of employees increased faster, but the added value grew more slowly than the country s economy: functional materials and coatings, advanced technologies for health, and ICT. The following four groups of sub-sectors may be identified according to material investments and the added value per employee in 0:. Sub-sectors with the largest investments and high added value: molecular technology (EUR 950/ month and EUR 5,00/month) and smart energy systems (EUR,50/month and EUR,550 /month). Sub-sectors with medium investments and high added value (EUR 500; EUR,800,900): ICT, functional materials and coatings, also photonic and laser technologies. 3. Sub-sectors with large investments and medium added value (EUR ; EUR,550,050): transport, generation of energy from biomass and waste, implementation of breakthrough innovations, structural and composite materials.. Sub-sectors with small investments and low added value (EUR ; EUR,00,700): agro-innovations and food technologies, solar energy, digital construction, advanced technologies for health, educational technologies and flexible production systems. Methodological problems in allocating economic sub-sectors to Smart Specialisation priorities and the limitations of statistical indicators have so far prevented performing a more thorough in-depth analysis and making quantitative, unambiguous conclusions. Based on the performance analysis carried out in this section, Table provides an illustrative qualitative summary of the strengths and challenges of priorities and the country s economic sub-sectors. Table. Development of RDI priorities and corresponding sub-sectors Priorities Molecular technologies Photonic and laser technologies Digital content Cloud computing and services Flexible production systems Structural and composite materials Smart energy systems Implementation of breakthrough innovations Energy from biomass and waste Smart transport and ICT systems International transport corridors Safer food Functional food Biorefinery Solar energy Functional materials and coatings Digital construction Advanced medical engineering Advanced technologies for health Educational technologies Development The flagship representatives of the Lithuanian high-tech industry characterised by rapid growth, high productivity and significant investment. These sub-sectors carry out intensive RDI, but are small and the impact of their further growth on the economic structure of the country may remain limited due to limited spill-over potential of the technologies they produce among the sectors. Competitive sub-sectors with significant critical mass in the country s economy in recent years have encountered transformational challenges: changes in technologies, production systems and the place of sub-sectors within international value chains. It is important to know how these sectors will respond to the transformational challenges what the role of RDI will be and what impact it will have on the acquisition of already created technologies. Development of technologies, products and services indicated in the priorities is in the early stage, therefore it is difficult to show development using official statistics. However, successful development and implementation of planned technologies would lead to higher added value in such cornerstone areas of the country s economy as agriculture, the food and beverage industry, transport, construction and energy. These sectors are very important for the sustainable development of society. Due to the limited effect of economic reforms and insufficient state funding, their economic indicators are poor and there is a shortage of RDI. 8

19 .3. Research potential Implementation of the Smart Specialisation priorities relies on top level research. This section aims to identify which priorities saw the most research publications in prestigious journals in 0 05 and provides their general characteristics. At the end of the section, the outcomes of the patent analysis are provided. To publish research work in scientific journals takes time, so publications which appeared in 0 05 were the result of research work of the previous period. Nonetheless, we hope that the information allows research potential to be evaluated at least in part. Methodological challenges and solutions The main methodological challenge is to determine which publications correspond to the topics of the Smart Specialisation priorities. Experts in particular fields assisted with this task. The selection of publications was carried out in the following manner:. Selection of scientific journals suitable for a particular priority area. Each expert received a list of scientific journals consisting of: (a) 05 Web of Science first-quartile (Q) journals; (b) journals selected by experts at the stage of development of the Smart Specialisation Programme as suitable according to the 03 SCOPUS ranking. The entire list consisted of 3,360 scientific journals. Focus only on the most relevant scientific publications aimed at narrowing down the list of publications. It is assumed that an expert can identify the most important publications in which papers are published that correspond to the topics of a particular specialisation. So, the experts chose the most relevant journals from the original list. In total, 79 scientific journals were selected of which 79 had at least one publication with affiliation in Lithuania.. Selection of publications that correspond to a topic of a particular priority. Representatives of individual priority areas received lists of publications by Lithuanian authors in the most relevant journals and summaries of publications. Experts then assigned publications suitable to the Smart Specialisation priorities. The scientific papers were selected in the Clarivate Analytics Web of Science Database for the period Priority area Energy and sustainable environment Health technologies and biotechnologies Agro-innovations and food technologies New production processes, materials and technologies Transport, logistics and information communication technologies Inclusive and creative society Priority All All All All -, 3- All Expert Vytautas Martinaitis Gintaras Valinčius Rimantas Venskutonis Gintautas Tamulaitis Algirdas Šakalys Egidijus Kazanavičius Asta Pundzienė and Žilvinas Martinaitis This section also presents an analysis of the patents issued by the State Patent Bureau in MOSTA analysts assigned patents to Smart Specialisation priorities. Such preliminary assignment is less accurate than assignments made by experts of individual topics. In the future, patents will be allocated to experts within individual priority areas. The analysis will also include European and US patent office data. 9

20 .3.. The scope of Smart Specialisation publications A total of 76 publications corresponded to the topics of the Smart Specialisation priorities of which 7 publications were assessed by experts as fully corresponding to the priority and a further 0 were assessed as corresponding partially. Subsequently, only those publications which fully corresponded to the Smart Specialisation priorities were analysed. A total of 506 publications appeared in the Web of Science first-quartile (Q) journals. Compared to the total number of publications prepared by the country which appeared in Q journals in 0 05 (,675 publications), the share selected by experts as corresponding to the Smart Specialisation priorities thus account for one third of publications which appeared in Q journals (the share could have fallen outside the scope due to the journals selected). The analysis of the distribution of scientific publications by fields of science (Fig. 7) shows that less than 0% of all medical and agricultural publications were selected. Meanwhile, 59% of publications in the areas of engineering and technology sciences were selected as complying with the Smart Specialisation priorities. 3 Fig. 7. Comparison of Smart Specialisation Q and Lithuanian Q publications per fields of science Source: Clarivate Analytics, InCites, The citation indicator of the Smart Specialisation publications is lower than all country s Q publications (Fig. 8). The normalised citation indicator of Lithuanian Q publications is.03, and that of the publications which correspond to priority topics is.65. This shows that the publications of Lithuanian scientists in Q journals are cited twice as often as the world average, while the publications which correspond to the topics of priorities received 38 percent of citations less than all Lithuanian Q publications. Indeed, the indicator for publications cited at least once is higher among the set of publications related to Smart Specialisation. However, it is too early to make generalisations concerning the impact of the scientific papers of Smart Specialisation because they have only been published quite recently (0 05). Fig. 8. Citation and international collaboration indicators of Smart Specialisation Q publications and Lithuanian Q publications (percentage) Source: Clarivate Analytics, InCites, Experts assessing the suitability of publications for a particular priority could have allocated them to either fully corresponding or partially corresponding to the priority. 3 In the area of the Humanities, 0% of Lithuanian Q publications correspond to the strategy (in total, Lithuania has only 0 publications in the Humanities). 0

21 .3.. International collaboration and citation indicators by priority areas The number of publications in individual priority areas varies significantly. The distribution of publications varies from 353 publications in the priority area of new production processes, materials and technologies (G) to eight publications in the priority area of inclusive and creative society (V, Table 3). Looking at the priorities, 69 % of all publications focus on four main priorities. The critical mass (50 and more publications) published in top-level journals is in the priorities of: molecular technologies; advanced technologies for health; photonic and laser technologies; functional materials and coatings. Table 3. Distribution of publications by priority areas of Smart Specialisation and priorities Priority area Priority Number of main publications Percentage of main publications within the priority area Secondary publications Main + secondary publications E E: smart energy systems 9 0% E: energy from biomass and waste E3: digital construction 3 5 3% 7% 95 E: solar energy 8 9% S S: molecular technologies 63 3% S: advanced technologies for health 38 68% 0 0 S3: advanced medical engineering 3 % M M: safer food 9 8% M: functional food 8 30% 6 M3: biorefinery 3% G G: photonic and laser technologies 88 5% G: functional materials and coatings G3: structural and composite materials 30 6% 8% 367 G: flexible production systems 6% T T: smart transport and ICT systems 6 53% T: international transport corridors T3: electronic content 6 5 % 0% 5 6 T: cloud computing and services 6 33% V V: educational technologies V: implementation of breakthrough innovations The analysis of the selected publications according to the citation and international collaboration indicators (Fig. 9) shows that publications of nine priorities are cited more often than the world average (priorities on y-axis on the right). The international collaboration indicator of 3 priorities is higher than the Lithuanian average (priorities above x-axis). In terms of the number of publications, the 7 88% 3% 0 8 Source: Clarivate Analytics, Web of Science, citation indicator of the largest priority (functional materials and coatings) with its publications is 0% lower than the world average. Meanwhile, in the area of advanced technologies for health (second largest priority 38 publications) publications are cited almost three times more than the world average.

22 Fig. 9. Citation and international collaboration indicators of publications of different priorities SIZE OF THE CIRCLE INDICATES THE NUMBER OF PUBLICATIONS X-axis normalised citation indicator. World average value. Y-axis share of international collaboration publications. Share of all Lithuanian international collaboration publications 36.5% Source: Clarivate Analytics, InCites, Distribution of publications in journals by priority areas The selected Smart Specialisation research papers were published in 79 different periodicals (from which 87 are Q journals [Table ]). In terms of the number of journals, publications on Smart Specialisation priority areas appeared in from between six (inclusive and creative society) to 08 (new production processes, materials and technologies) journals. Some of these journals are among the top 0 most cited world journals: New England Journal of Medicine (JIF=59.56) - one publication, Nature (JIF= 38.) two publications, and Nature Genetics (JIF=3.6) four publications. Table. Distribution of scientific journals by Smart Specialisation priority areas and priorities (five journals in each priority area which feature the largest number of publications are included) Priority area Distribution of publications* Journal Number of publications Share of publications of a certain priority in the journal Quartile Citation index of the journal Average citation percentile of the journal** RENEWABLE & SUSTAINABLE ENERGY REVIEWS,7% 6,798 9,565 E ENERGY CONVERSION AND MANAGEMENT 7 7,%,80 9,67 ENERGY AND BUILDINGS 5 5,3%,973 83,986 ARCHIVES OF CIVIL AND ME- CHANICAL ENGINEERING 5 5,3%,9 78,5

23 INDUSTRIAL CROPS AND PRODUCTS,3% 3,9 9,33 PLOS ONE 30,7% 3,057 83,333 S 08 NUCLEIC ACIDS RESEARCH BMC PUBLIC HEALTH 8 5,% 3,9% 9,0,09 93,95 66,763 BMC PEDIATRICS 5,5%,83 6,97 NATURE GENETICS,0% 3,66 99,096 INDUSTRIAL CROPS AND PRODUCTS 8 3,% 3,9 9,33 FOOD CHEMISTRY 6,6%,05 90,66 M 38 JOURNAL OF SUPERCRITICAL FLUIDS 6,6%,579 66,956 LWT-FOOD SCIENCE AND TECHNOLOGY 3,9%,7 8 JOURNAL OF THE SCIENCE OF FOOD AND AGRICULTURE 3,9%,076 75,708 APPLIED SURFACE SCIENCE 9 5,% 3,5 80,6 DYES AND PIGMENTS 8 5,%,055 9,655 G 95 ELECTROCHIMICA ACTA 8 5,%,803 90,7 JOURNAL OF PHYSICAL CHEMISTRY C 8 5,%,509 79,678 APPLIED PHYSICS LETTERS 7,8% 3, 8,03 INFORMATICA 6 3,7%,386 70,87 TRANSPORT,5% 0,55 0,080 T 5 EXPERT SYSTEMS WITH APPLICATIONS 8,%,98 89,58 APPLIED SOFT COMPUTING 3 6,%,857 8,663 COMPUTER-AIDED CIVIL AND INFRASTRUCTURE ENGINEERING,% 5,88 99,97 JOURNAL OF VOCATIONAL BEHAVIOR 5,0%,76 8,77 PSYCHO-ONCOLOGY 5,0% 3,56 79,855 V 6 TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE,5%,678 86,6 INTELLIGENCE,5% 3,8 85,659 EUROPEAN CHILD & ADOLESCENT PSYCHIATRY,5% 3,339 80,65 * The number of journals with at least one publication. ** Shows the number of times articles from the journal have been cited among the journals of a similar subject category. For example, if the value is 90, articles from the journal have been cited in over 90 journals of a similar subject category. Source: Clarivate Analytics, Web of Science,

24 .3.. Thematic analysis Keyword analysis helps review briefly the content of Smart Specialisation publications in order to have an idea of the topics examined by researchers. The diagram below (Fig. 0) shows keywords specified in Smart Specialisation publications by authors. All words which are repeated four times and more are specified. Lines between the bubbles mean that these words appeared together in the same publication. The size of the bubble indicates the number of publications. It is important to note that the structure of the diagram is significantly affected by the number of publications within individual priority areas (priorities) the more publications appeared in a certain priority area, the more keywords there are. So, the overall image in the diagram largely represents the priority area with the largest number of publications (health technologies and biotechnologies, new production processes, materials and technologies). The following keywords were mostly used in the publications on Smart Specialisation areas (Table 5): ionization potential ( publications), carbazole (), Europe (9), thin films (8) and children (8). The publications which had the following keywords were most cited: mcdm (on average 3.8 citations), ethanol (0.5), epidemiology (9.6) and adolescents (9.5). Fig. 0. Network of keywords of Smart Specialisation publications * * All the authors keywords are included in the analysis. Visualisation includes keywords which repeat four times and more. The scale at the bottom of the diagram shows the average number of citations of the keyword. Prepared using VOSviewer software. Source: Clarivate Analytics, Web of Science, 0 05.

25 Table 5. Network of keywords of Smart Specialisation publications * No. Keyword ionization potential Number of publications Average number of citations 3,67 No. Keyword raman spectroscopy Number of publications 5 Average number of citations, carbazole 6,7 electrical conductivity 5 0,8 3 europe 9 7,67 3 ethanol 0,5 children 8 6,75 adolescents 9,5 5 thin films 8 5 electrochemical impedance spectroscopy 8 6 impedance spectroscopy 7,86 6 molecular glass 7,5 7 luminescence 6,67 7 physical activity 6 8 optical properties 6 3,67 8 adsorption 5,5 9 electrical properties 6 3,5 9 surface plasmon resonance 5,5 0 biosensor reinforced concrete,75 xrd 6,5 3 amorphous material,5 microstructure 6,33 3 dielectric properties 3 xps 6 33 hydrazone 3,5 optimization 6,67 3 discrete element method,5 5 mcdm 5 3,8 35 modeling,5 6 epidemiology 5 9,6 36 experimental investigation,75 7 graphene 5 6,6 37 fluorescence,5 8 triphenylamine 5 6,6 38 obesity 9 light emitting diode 5 39 electroluminescence 0,75 0 chemical composition 5 3,8 0 phase transition 0,5 * All the authors keywords which repeat four times and more are specified Source: Clarivate Analytics, Web of Science, Below are keyword heat maps of Smart Specialisation by priority area. The size of the font and colours in Fig. 6 represent the number of publications in which the keyword was used (the larger the font and the hotter the colour, the more the keyword has been used). Keyword clusters mean that the author specified these words as keywords in the same publication. The analysis of keywords by priority area shows that keywords rarely repeat in publications by priority area apart from priority areas such as health technologies and biotechnologies, and new production processes, materials and technologies, where keywords appear more than four times. 5

26 Fig.. Keywords within the priority area of energy and sustainable environment Fig.. Keywords within the priority area of health technologies and biotechnologies 6

27 Fig. 3. Keywords within the priority area of agro-innovation and food technologies Fig.. Keywords within the priority area of new processes, materials and technologies 7

28 Fig. 5. Keywords within the priority area of transport, logistics, and ICT Fig. 6. Keywords within the priority area of inclusive and creative society 8

29 .3.5. Output by institution A total of 6 institutions have at least one publication in the area of Smart Specialisation, namely universities, seven research institutes, four hospitals and one public institution. Most of these publications (63, or 89%) were prepared by five institutions Vilnius University (VU), Kaunas University of Technology (KTU), Centre for Physical Sciences and Technology (FTMC), Lithuanian University of Health Sciences (LSMU), and Vilnius Gediminas Technical University (VGTU). It is worth mentioning that the number of publications generated by research institutions is determined by their potential specifically the number of their researchers, infrastructure, etc. Institutions with a higher citation indicator than the world average and an international collaboration indicator greater than that of Lithuanian publications are specified in the top right quarter of the diagram below (Fig. 7). It can be concluded that the correlation of the citation and international collaboration indicators of publications among institutions (k=0.3) is greater than among the priorities (0.8) (Fig 9). This means that in this respect the priorities are not homogeneous. Publications are prepared by institutions with different citation and international collaboration indicators parameters. Publications concerning the four largest priorities (69% of all Smart Specialisation publications) photonic and laser technology, functional materials and coatings, molecular technologies and advanced technologies for health were produced by institutions. The bulk of these publications were prepared by researchers at VU (53%), FTMC (8.6%), LSMU (5.6%), and KTU (5.%). Fig. 7. Citation and international collaboration indicators of institutions with a minimum of 0 Smart Specialisation publications SIZE OF THE CIRCLE INDICATES THE NUMBER OF PUBLICATIONS X-axis normalised citation indicator. World average value. Y-axis percentage of international collaboration. Lithuanian average 36.5%. Source: Clarivate Analytics, InCites,

30 Fig. 8. Distribution of publications on priorities of photonic and laser technologies, functional materials and coatings, molecular technology and advanced technologies for health by institutions Source: Clarivate Analytics, InCites, Patents Patent analysis allows a broader in-depth look at research potential within the context of Smart Specialisation. This section provides a brief overview of the patents issued in 0 07 by the State Patent Bureau as stated in its official bulletins. Applications for patents had been submitted prior to the start of the implementation of the Smart Specialisation Strategy, therefore we will use the existing data as the reference point for subsequent analyses. During the entire 0 07 period, a total of 67 patents were published corresponding to the Smart Specialisation priorities of which 8% are held by business entities, 39% by research institutions and 3% by private individuals. The results of patenting show that the priorities in which relatively few publications were produced advanced medical engineering (three publications), solar energy (8), and functional food (8) held a relatively large number of patents. Allocation of patents to priorities is not entirely accurate. In the future, the allocation process and criteria will be improved with the help of experts in this area. Patents specified in the FG9A issued patents section of the bulletins. 30

31 Fig. 9. Patents by priorities Source: Patent bulletins by the State Patent Bureau, Summary The selected publications on the topics of Smart Specialisation priorities account for nearly one third of Lithuanian papers in Q journals. It should be noted that in the areas of medical and agricultural sciences, less than 0% of publications were selected by experts as corresponding to the topics of Smart Specialisation. The critical mass of scientific papers focuses on four priorities: molecular technologies, advanced technologies for health, photonic and laser technologies and functional materials and coatings. The international collaboration indicator of these priorities is higher than the average of Lithuanian publications and the citation indicator is higher than the world average (with the exception of functional materials and coatings priority). Nine out of every 0 of the Smart Specialisation publications were prepared by researchers in five institutions VU, KTU, FTMC, and VGTU. The international collaboration indicator of these publications is higher than the Lithuanian average and the VU, LSMU and VGTU papers are cited above the world average. The analysis of institutions shows a stronger statistical correlation (k=0.3) between citation and international collaboration indicators of publications than among priorities (0.8). This indicates that the priorities are not homogeneous. Publications are prepared by institutions with different citation and international collaboration parameters. The dispersion of publications among research journals is significant papers which correspond to Smart Specialisation topics were published in 80 different Q research journals. Publications on the subject of new production processes, materials and technologies, and health technologies and biotechnologies appeared in (approximately) 00 journals. The largest number of patents in 0 07 was issued in the priorities of molecular technologies, advanced medical engineering, structural and composite materials, and photonic and laser technologies. 3

32 .. Performance under the Horizon 00 programme According to data from October 06, Lithuanian organisations submitted a total of,56 applications as partners and coordinators under the EU research and innovation programme Horizon 00. Of these, 70 applications (%) received funding. Lithuanian organisations coordinate 5 projects and participate as partners in the remaining ones. Out of 70 funded applications, 9 projects focus on RDI activities and of these 65 applications (69%) are closely associated with the Smart Specialisation priorities. Methodological challenges and solutions The main methodological challenge was to determine which projects of the Horizon 00 programme could contribute to the implementation of the Smart Specialisation priorities. The data analysis consisted of the following steps: It was established that the programme allocated funding (as of October 06) to 70 projects with the participation of Lithuanian organisations. 76 projects were financed under the Horizon 00 instruments / sub-programmes which did not involve RDI activities. These programmes are: Coordination and Support Action (CSA), ERA-NET Cofund, European Training Network, Reintegration Panel, RISE, SGA-RIA, RF Grant Agreement and Coordination and Support Action. The remaining 9 projects are funded under the instruments and sub-programmes which involve RDI. These programmes are: Bio-based Industries Research & Innovation Action, COFUND (European Joint Programme), CSA Lump Sum, ESCEL Research & Innovation Action, Innovation Action, Research & Innovation Action, SME Instrument Phase and SME Instrument Phase. Projects funded under these instruments and sub-programmes were evaluated in step four. Of the 9 projects dedicated to RDI activities, 65 were identified as being related to the smart specialisation priorities of Lithuania. Project allocation to the priorities of Smart Specialisation however is not entirely accurate. In the future, the process and criteria of allocation will be reviewed and improved with the help of experts. Therefore, the allocation of the projects of the Horizon 00 programme in this report is indicative and reflects trends, but are not necessarily completely accurate.... Funded applications and organisations The general statistics of participation in the Horizon 00 programme related to the Smart Specialisation priorities is provided in Fig. 0 and Fig.. The figures show that no projects were identified in the topics of the five priorities of digital construction, photonic and laser technologies, functional food, biorefinery and digital content. Most of the projects were funded in the following two areas: Smart transport, logistics and ICT 3 projects. The funding allocated to organisations in Lithuania is EUR 5.5 million. (The EC provided EUR.0 million and the Lithuanian project participants allocated an additional EUR 3.6 million). A total of 5 projects in this area are being implemented by the state company Oro Navigacija. New production processes, materials and technologies projects, total budget EUR 5. million (allocated funding accounts for EUR.5 million and the project participants allocate an additional EUR.7 million). 3

33 Fig. 0. Horizon 00 projects and funding allocated to Lithuanian organisations by priority Source: EC, Horizon 00 Calculations by MOSTA Fig.. Proportion of Horizon 00 co-financed by project applicants Source: EC, Horizon 00 Calculations by MOSTA 33

34 Fig. provides a map of the Smart Specialisation priorities based on the statistics of the financed Horizon 00 projects. The map shows the following: A significant critical mass has formed in the priorities of solar energy, flexible production systems and molecular technologies. The value of the projects implemented in each of these priorities exceeds EUR million. Participants of the solar energy priority are SMEs only and participants of four projects of the flexible production systems priority are research and higher education institutions. The other priorities are dominated only by companies. Only two projects are carried out in the priority of molecular technologies, but their total value exceeds EUR million. The assessment of transport priorities should be treated with caution. There is a sufficient critical mass in five priorities advanced medical engineering, the implementation of breakthrough innovations, structural and composite and functional materials and coatings and the generation of energy from biomass. The smart energy systems priority deserves a separate mention. A Lithuanian company in this priority manages a consortium of 0 participants. Fig.. Map of Smart Specialisation priorities based on participation in the Horizon 00 programme SIZE OF THE CIRCLE INDICATES THE NUMBER OF ORGANISATIONS Note: priorities in which the Horizon 00 projects have so far not been implemented (digital construction, photonic and laser technologies, functional food, biorefinery, and electronic content) are excluded. Source: EC, Horizon 00, calculations by MOSTA 3

35 .. Partnerships of Lithuanian organisations Representatives from Lithuania participate in 9 Horizon 00 projects which correspond to the areas of the Smart Specialisation Strategy and which involve international partners. Fig. 3 shows the countries with which Lithuanians have at least 0 partnerships. Fig. 3. Partners of Lithuanian organisations in the Horizon 00 programme by countries Source: EC, Horizon 00, calculations by MOSTA Representatives from Lithuania participate in five joint projects with Latvian organisations and four joint projects with Estonian organisations. Other EU countries not included in the chart above are Slovenia (seven joint projects), Luxembourg (two), and Bulgaria, Cyprus, Iceland and Malta with each of which Lithuania has one joint project. 5 Lithuanian research and business organisations also implement joint projects with partners in Australia, Canada, Israel, Kenya, Macedonia, Russia, the Republic of South Africa, Taiwan, Turkey, Ukraine, Uruguay and the USA. 5 We failed to locate a list of partners of one project which includes seven participants. More than one Lithuanian organisation participates in three projects and in one project there are Lithuanian representatives both among the coordinators and participants of the project. 35

36 . Results of the first call under the Intellect instrument Methodological challenges and solutions When assessing the results of the first call for proposals for the Intellect instrument, the data provided in the 0-00 EU Structural Investment Portal of the Ministry of Finance and the LBSA were used. In their proposals, companies specified to which specific Smart Specialisation priority the project would contribute, also which specific technologies in the area of Smart Specialisation the project is going to develop. In this case there were no problems in allocating projects to priorities. The analysis of each priority is based on the following criteria: Business commitment to invest: business investment scope specified in the proposals, which successfully passed the first selection phase; Critical mass: the number of projects funded in each priority; The thematic concentration: whether the funded projects develop the same technologies. Thus far it is only possible to analyse the one call for proposals under the Intellect instrument. A significant number of projects (Annex ) will be funded under this instrument (the information about other relevant instruments is provided in Annex ) later, and this should be taken into consideration in this section. In the future, the analysis will include other calls for proposals under the Intellect instrument. According to its objectives and scope, the Intellect instrument is one of the most important instruments during this phase of the implementation of the Smart Specialisation Strategy. It is designed to encourage companies to invest in RDI activities for the development of innovative products, services or processes, and to promote the growth of companies and the establishment of new innovative companies by investing in RDI infrastructure and its development. Companies may carry out RDI activities in conjunction with partners (research institutions, universities and private legal entities). A total of EUR 60 million was allocated to the first call for proposals under the Intellect instrument. The maximum amount of financing per project is up to EUR,00,000. Applications may be submitted by private legal entities or public institutions which carry out RDI activities. Research and higher education institutions cannot be the main applicants. The selection of projects is carried out in two stages. In the first stage of the call for proposals it is assessed whether the submitted project, inter alia, meets the following requirements: (a) the planned activities correspond to RDI activities (69.5% of the applications rejected at this stage failed to comply with this requirement); (b) the planned activities correspond to the Smart Specialisation priority areas (5.7% of the rejected applications failed to comply with this criterion; another 9.% failed to comply with both [a], and [b] requirements). During the second stage, the projects with the greatest potential to contribute to the objectives of the Smart Specialisation programme and to achieve the required indicators are selected. 36

37 .. Potential of priorities to contribute to the implementation of the programme The potential of priorities to contribute towards the strategic goal of the Smart Specialisation Programme to promote structural change within the Lithuanian economy is assessed on the basis of two criteria: Business commitment to invest in RDI. This criterion shows whether the priorities set by the state correspond to the investment priorities of knowledge-intensive businesses. This can be measured by the business investment volumes specified in applications which successfully passed the first selection phase, i.e. applications which correspond to the RDI and Smart Specialisation criteria. The critical mass of investment allocated by the state. Smart Specialisation priorities may promote structural changes in the economy only if there is a critical mass of investment, i.e. if a significant number of projects are financed and significant financing is allocated for their implementation. When assessing the results of the Intellect instrument on the basis of both criteria (see Fig. ), Smart Specialisation priorities can be divided into four categories: Critical mass and a breakthrough potential are achieved: priorities of molecular technologies, flexible production systems, and advanced technologies for health. More than 0 projects are financed under these priorities. State investment is more than EUR 3.5 million, and business commitment to invest (applications selected in stage one) was more than EUR 5 million. Forming of the critical mass and potential: priorities of digital content, photonic and laser technologies, functional materials and coatings, advanced medical engineering, safer food, smart energy systems and structural and composite materials. From four to nine projects are implemented under these priorities, with state investment ranging from between EUR.5 million and EUR 3.5 million and businesses planning (applications selected in stage one) to invest at least EUR million. A small critical mass: priorities of educational technologies, implementation of breakthrough innovations, cloud computing and services, functional food, generation of energy from biomass, digital construction, smart transport and ICT systems and International transport corridors. A small number of relatively small projects are financed and the business commitment to invest in many of these priorities was less than EUR.5 million. No funding was allocated to the projects of two priorities: solar energy and biorefinery. Business commitment to invest in RDI in the solar energy priority was very small. It is likely that the promoters of this priority submitted applications under another priority for solar energy administered by LBSA. One ambitious application was submitted under the priority of biorefinery with the aim of investing EUR. million. The application was declined and requested financing of EUR. million was not granted. 37

38 Fig.. Financing for the Intellect projects by priority and source of funding SIZE OF THE CIRCLE INDICATES THE NUMBER OF AAPLICATIONS * only those applications which were successfully assessed in stage one, during which applications which failed to comply with the RDI or the Smart Specialisation criteria were rejected, were analysed ** budgets of the projects which were successfully assessed in stage two Source: EC, Horizon 00, calculations by MOSTA 38

39 .. Thematic concentration The analysis of thematic concentration helps identify whether projects financed within the scope of the same priority aim to develop the same or different technologies, products, services etc. The higher the concentration, the greater the likelihood that synergies will form between the financed projects, resources will be concentrated and a critical mass will be achieved for structural changes within the economy. Table 6 shows that the thematic concentration in the priorities of the Smart Specialisation is limited. Only three priorities (flexible production systems, advanced technologies for health and digital content) have two technologies in the same area, which will be implemented in more than three projects. Most of the projects representing different priorities are developing different technologies and there is no technology that would repeat in the applications more than three times. Another method to assess concentration is to calculate the Herfindahl-Hirschman index (HH index), which in this case shows the distribution of the technologies developed / implemented in the projects. If the distribution is broad (low concentration), then there is a risk that investment will be too dispersed within the same priority. Small distribution (high concentration) is characteristic of the following priorities: functional materials and coatings, molecular technologies and the implementation of breakthrough innovations. Obviously if only one project of the priority is funded, a high degree of concentration is not a significant figure and this must be taken into account when interpreting the maximum value of the HH index estimated in the priorities of digital construction, functional food and International transport corridors. Table 6. Concentration of technologies within priorities Code Priority Total number of technologies within the priority action plan (technologies to be developed within the financed projects) Concentration index (Herfindahl Hirschman index) Number of technologies which reappear in the applications more than three times Technologies characterised by the highest concentration (number of projects) E Smart energy systems 55 (3) 0,05 E Generation of energy from biomass (6) 0,7 E3 Digital construction () G Photonic and laser technologies 50 (9) 0, G G3 Functional materials and coatings Structural and composite materials 37 (3) (0) 0, 0, Technologies for modification of surfaces by material layers and nanostructures () Energy-efficient structural and composite materials production technologies (7); technologies for secondary recycling (chemical, mechanical) of products made of composite materials () G Flexible production systems () 0, M Safer Food 38 (9) 0, M Functional food 6 () S Molecular technologies 7 (6) 0,37 Recombinant protein and cellular technologies (8) 39

40 S Advanced technologies for health (0) 0, Advanced therapeutic technologies (); use the advanced therapeutic medical preparations in the market () S3 Advanced medical engineering 0 (8) 0,6 Technologies for the processing of medical images and signals registered () T Smart transport and ICT systems 6 (7) 0,6 T International transport corridors 6 () T3 Digital content 3 () 0, Semantisation technologies of information resources and services (); large-scale data analysis, mathematical modelling and visualisation technologies designed to optimize work of the state and business organisations (5) T Cloud computing and services 30 (6) 0,8 V Educational technologies (7) 0,6 Blended or hybrid competence development technologies (7) V Implementation of breakthrough innovations 6 (3) 0,39 Source: LBSA, calculations by MOSTA 0

41 .3. Expected outcomes Assessment scores partly describe the expected outcomes of the projects being implemented. In the case of the Intellect instrument, the main components of the score are as follows: the significance of expected innovations (up to 30 out of 00 points), commercial potential of the developed products (up to 30 points) and estimated revenue (up to 5 points). The average scores of the Intellect instrument and minimum and maximum values by priority area are provided in Fig. 5. The lowest score of 35.6 was obtained for the transport, logistics and ICT area and the highest score of 83 was obtained for the new production processes, materials and technologies area. The largest average project assessment score of 6 after the second stage of assessment was in the area of health technologies and biotechnologies, and the smallest of 3.8 was in the area of inclusive and creative society. The difference in the scores of the Smart Specialisation projects was determined by the structure and evaluation criteria (weight) and their contents. The assessed project volumes were large and assessment was conducted by different experts, therefore the scores are not directly comparable. However, the diverging scores lead to the conclusion that there are substantial differences between the priority areas. Fig. 5. Summary scores of stage two of the assessment of the Intellect instrument Source: LBSA, calculations by MOSTA

42 .. Summary According to the results of the analysis of the first call for proposals, the following priorities have reached the critical mass and demonstrate breakthrough potential: molecular technologies, flexible production systems and advanced technologies for health. This is demonstrated by (a) a commitment among businesses to invest in RDI; (b) overall size of investment in projects; (c) a relatively high level of concentration of projects in the same technologies and; (d) high assessment scores of applications. The following priorities are forming critical mass: digital content, photonic and laser technologies, functional materials and coatings, advanced medical engineering, safer food, smart energy systems and structural and composite materials. Development of these priorities has potential, but it is not clear whether it will be possible to benefit from it. This will partly depend on business ambitions and success in other calls for proposals of this instrument and in other instruments. The following priorities have a small critical mass: educational technologies, implementation of breakthrough innovations, cloud computing and services, functional food, generation of energy from biomass, digital construction, smart transport and ICT systems and international transport corridors. Their breakthrough potential is therefore limited. Both the business ambitions and the amount of financing in these priorities are relatively low. No investment was allocated for two priorities: solar energy and biorefinery. In the latter case, business commitment to invest was high, but the only project submitted did not receive funding.

43 3. Status of priorities The report provides the first monitoring results of the Lithuanian RDI priorities. In order to obtain monitoring results, monitoring tools were developed, tested and implemented. Potential monitoring indicators were identified and various data analysis and classification methods were applied. Building the link between the RDI policy priorities and the objects of monitoring (publications, projects in progress, patents etc.) was challenging. Not all solutions worked, therefore monitoring tools will be improved while the obtained results should be treated with caution. After performing different measurements, albeit with rather limited information, the main indicators for each priority were identified (Annex ) and the priorities grouped according to the critical mass available for RDI implementation. The groups of priorities were formed by comparing the results obtained using different clustering algorithms, the optimal number of clusters was then verified by using different criteria and the visualisation of principal components (Table 7) was performed. The grouping results are provided below. Four priorities show the presence of a critical mass: Molecular technologies (S) Advanced technologies for health (S) Functional materials and coatings (G) Photonic and laser technologies (G) The following are the characteristics of the priority group which shows a critical mass: largest number of Q publications (from 63 to ), patents (33 patents in total), high international collaboration indicator (two thirds of the publications are with foreign co-authors), and the ensured largest financing under the Intellect instrument and / or Horizon 00 research programme -EUR 0 million in total. IExclusiveness: the largest number of patents (), the largest share of proposals accepted under the Intellect instrument (9%), and the largest financing (EUR 5.9 million) are within the priority of molecular technologies (S). The advanced technologies for health priority (S) features a.8 times higher citation index than that of the global average. The functional materials and coatings priority (G) features the largest number of prestigious publications (). Some potential is present in the individual areas of priorities with an average ensured financing of EUR 3 million. The identified group is heterogeneous. Four priorities feature a relatively high patenting activity (3 patents in total): Advanced medical engineering (S3) Structural and composite materials (G3) Smart energy (E) Solar energy (E) Five priorities have publishing indicators which exceed the median (on average 8 Q publications each, a total of publications): Generation of energy from biomass and waste (E) Structural and composite materials (G3) Smart transport and ICT systems (T) Digital construction (E3) Safer food (M) The following priorities could be allocated to the group with some reservations: Flexible production systems (G) and functional food (M) median patenting and publishing indicators, Cloud computing and services (T) the lowest indicators in the group, except for the citation index which exceeds the world average in the subject category. Exclusiveness: the priority of smart transport and ICT systems (T) will receive the largest financing under the EU Horizon 00 research programme EUR.3 million. The normalised citation index of the priorities of smart transport and ICT systems and digital construction (E3) is twice as high as the world average in the subject category. The priorities of construction (E3) and functional food (M) have the smallest ensured financing in the group, EUR 0.8 million and EUR 0.3 million respectively; the priority of flexible production systems (G) has the largest ensured financing of EUR 8.3 million. Five priorities with the smallest critical mass (in the order of the amount of ensured financing) are as follows:. Digital content (T3) EUR 3.3 million. Implementation of breakthrough innovations (V) EUR.7 million 3

44 3. Educational technologies (V) EUR.73 million. International transport corridors (T) EUR 0.78 million 5. Biorefinery (M3) EUR 0. The publishing and patenting indicators of the priorities with the weakest potential are particularly poor. Furthermore, less than a third of proposals submitted under the Intellect instrument met the necessary requirements. Nevertheless, the difference between agro-innovations and the food technologies priority area on the one hand and other priorities of low critical mass on the other should be noted. Publishing indicators in the two first priorities are higher than those of the remainder of the group. However, the remaining priorities have secured larger financing. Different priorities feature a varying concentration of resources for developing technologies specified in the action plans. The focus of the priorities of functional materials and coatings (G) and molecular technologies (S) on the thematic specificities is high. Meanwhile, that of the remaining critical mass and similar priorities is low. Concentration in the weaker priorities is often one or zero and this depends on whether at least one project under the Intellect instrument will be implemented in the priority or not.

45 . Further steps in developing the monitoring system Although the implementation most of the Smart Specialisation programme instruments are delayed, some early indicators were analysed in this first progress report: Number of publications and patents, Results of assessment of the proposals for the business and science cooperation promotion instrument Intellect, Information about the projects in progress under the EU Horizon 00 research programme. During the implementation of the programme, when new data is accumulated, quantitative monitoring and assessment will become more accurate and detailed. The obtained results will also be supplemented with the results of the science and business cooperation survey. It is extremely important that, in cooperation with the State Tax Inspectorate, R&D expenditure data declared by businesses will be used to assess the scope of RDI activities. When developing the monitoring system, the following two aspects should be emphasised:. A need to identify the main shortcomings and to supplement and refine existing monitoring indicators. The necessary condition for the new proposed indicators is the ability to analyse them within 0 priorities. The system of monitoring should remain transparent and simple still. The analysis of the main components of the existing indicators is provided in Table 7. Table 7. Projection of dispersions of monitoring indicators to the four main data components (%) Monitoring indicator Q Publications Critical mass 8 C o r - relation sign - Citations 9 C o r - relation sign... H00 C o r - relation sign... International collaboration 6 C o r - relation sign... Normalised citation index International collaboration publications Patents Correspondence to RDI and Smart Specialisation Financing provided under the Intellect instrument Financing under H Whole principal component The need to ensure a systematic and unified codification of the Smart Specialisation projects by topics and thematic specificities. Due to the fact that the implementation of the projects has not yet started, it was not possible to perform monitoring of the criteria planned in the priorities action plans. When the implementation starts, monitoring will be of a more technical nature. In order to ensure such monitoring, during applications assessment phase implementing agencies must clearly identify the Smart Specialisation priorities and thematic specifies (financing should actually be allocated by topics). During the preparation of the Smart Specialisation monitoring report, a draft description of the codification of RDI priorities and thematic specificities was prepared.

46 Annex. List of projects in progress Instrument Project Implementing institution Applicant Expenditure, EUR 000s Allocated financing, EUR 000s Planned investment (expenses allocated financing), EUR 000s Contract date Development of research, EMoDB.LT3: Opening of the Online Research Databases for Lithu- experimental development and innovation ania Stage 3 infrastructure and their integration into European infrastructures CPMA Lithuanian Research Library Consortium 3,86 6, Capacity building of scientists and other researchers Development of doctoral studies ESFA Research Council of Lithuania,87, Development of research, Marine Valley Nucleus and Update experimental development and innovation stage of Study Infrastructure (JURA), infrastructure and their integration into European infrastructures CPMA Klaipėda University 0,935 0, SmartInvest LT+ Technology for presenting personalised programmable online advertising between different devices LBSA UAB Adform Lithuania, SmartInvest LT+ Research intended for development of innovative cloud solutions (3rdCLOUD) LBSA UAB Virtus- team LT 3,37, SmartInvest LT+ Implementation of R&D infrastructure for innovative botanical biorefining technologies and for developing and implementing functional ingredients from them LBSA UAB Endobiotech 3,68, SmartInvest LT Smart investment LBSA Public Agency Invest Lithuania,35, Capacity building of scientists and other researchers Open Access to Science and Research - MITAP II ESFA Agency for Science, Innovation and Technology,57, Inogeb LT Popularisation of technology and innovation LBSA Agency for Science, Innovation and Technology,00, Capacity building of scientists and other researchers Increasing international collaboration indicator of Lithuanian science development of R&D communications (LINOLT) ESFA Research Council of Lithuania,390, Inogeb LT Promotion and development of innovation networking (InoLink) LBSA Agency for Science, Innovation and Technology,0,

47 Instrument Project Implementing institution Applicant Expenditure, EUR 000s Allocated financing, EUR 000s Planned investment (expenses allocated financing), EUR 000s Contract date Capacity building of scientists and other researchers Publishing of research periodicals and its coordination ESFA Lithuanian Academy of Sciences,303, Capacity building of scientists and other researchers Development of the database Lithuanian Studies ESFA Research Council of Lithuania,303, Capacity building of scientists and other researchers Development and implementation of the national popular science system ESFA Lithuanian Academy of Sciences,303, Capacity building of scientists and other researchers Development of LITNET IT services provided to research and higher education institutions ESFA Kaunas University of Technology SmartInvest LT+ Biomedical electronic equipment for post-stroke monitoring LBSA UAB Gruppofos Lithuania Capacity building of scientists and other researchers Development of the international competences of researchers (TYKU) ESFA Agency for Science, Innovation and Technology Inoklaster LT Promotion of International Security Cluster research, experimental development and innovation in cyberspace security LBSA Association International Security Cluster Inoklaster LT Promotion of Užupis Creative Cluster research, experimental development and innovation in the field of creative industries LBSA Association Užupis Creative Cluster Inoklaster LT R&D and RDI activities in operating the SmartFood cluster LBSA Lithuanian Food Exporters Association (LitMEA) Inoklaster LT Strengthening OF LITEK synergy LBSA Science and Technology Park of Institute of Physics Inoklaster LT Development of the system for promoting the innovation system of the photovoltaic technology cluster to ensure competitiveness of the sector (InoPV) LBSA Applied Research Institute for Prospective Technologies Inoklaster LT ivita awareness and network development (InterGates) LBSA UAB De Futuro Source: 0-00 EU Structural Investment Portal of the Ministry of Finance of the Republic of Lithuania. February, 07 7

48 Annex. Results of the first call for proposals under the Intellect instrument Priority Project Applicant Value in the proposal, EUR 000s Requested financing, EUR 000s Allocated financing, EUR 000s E Smart system for assessment, recording AB Axis Industries, and control of efficient use of energy E Smart energy accounting systems UAB ELGAMA ELEKTRONIKA E Development of a new technology for diagnostics and auditing of the conditions of buildings using the unique integrated 3D thermal imaging system UAB GO-ERP E New generation smart accounting and UAB ELGAMA SISTEMOS management systems prototypes E UAB Gitoma investments in R&D UAB Gitoma E R&D activities in order to increase the company s UAB Santaviltė innovation and economic potential E Development of smart AĮS and ŽĮS systems UAB Elektros inžinerija E Research and development of technologies UAB ENERSTENA,58,39,03 for increasing the efficiency of biofuel use and the reduction of pollution E3 Research and experimental development for developing an innovative and complex solution for building information models (UNDETpro) UAB Infoera, G Ultra-short impulses for future technologies UAB Ekspla, (TRUST) G Research and development of the compact UAB Optogama µm wavelength nanosecond la- sers (acronym Kaukas) G Development of the parallel kinematic positioning UAB STANDA systems G Development of the optic module integrated UAB ALTECHNA R&D with the femtosecond laser intended for the laser-processing machines (FemtoModulis) G Periodic structures for the laser spectrum UAB Integrated Optics 70 0 control (PERLAS) G Modular, terahertz frequency (THz) spectroscopy UAB TERAVIL system with the optical exci- tation Thz probe extension (SPEKSIS) G Development / installation of the innovative UAB Rho nano,9,83 57 nanoparticle production line G Research and experimental development for developing innovative small satellite traction systems (acronym ISPS) UAB Nanoavionika, G UAB Tavira investments in R&D and infrastructure UAB TAVIRA, G UAB Verdigo investments in R&D UAB VERDIGO G3 UAB Iviltra R&D activities in developing UAB IVILTRA,78, new products G3 Development of technology for fishing industry UAB Ortmeta,900,93 88 waste-(nets, ropes) processing G3 UAB Neo Group investment in R&D and infrastructure UAB NEO GROUP,88 9 development 8

49 Priority Project Applicant Value in the proposal, EUR 000s Requested financing, EUR 000s Allocated financing, EUR 000s G3 UAB Kegesa investments in R&D and infrastructure UAB Kegesa, G3 Development of the shell of a hybrid bus UAB ALTAS komercinis produced at the wheelbase transportas G Research and experimental development intended for innovative printing technologies with sustainable use of resources (acronym - ECODECO) UAB VEIKA,55,0 669 G Development of the innovative UAB Terekas, automated PET equipment G Development of the innovative technological UAB Elektronikos perdirbi-, system for processing electronic waste mo technologijos G Development of the new generation multifunctional UAB ELTESTA GHz stroboscopic oscillograph (SAMPLETEST) G Development of Unifacture software UAB DevBridge LT G Creation and commercialisation of the tools for the monitoring, control and forecasting of production process and energy resources (ipers) UAB AEDILIS G Innovative robotic metering systems and UAB PRECIZIKA METRO their optical components LOGY G Investment in the development of innovative AB Snaigė refrigerator series G UAB KEMEK Engineering investments in UAB KEMEK ENGINEERING R&D G Development of MINI-PLASMA and MINI- MASSSPEC sensors UAB Nova Fabrica G Development of eco-innovative wastewater treatment facilities UAB AUGUST IR KO 75 9 G Development of an innovative new product by UAB Elinta UAB Elinta G Research of smart flexible autonomous robotic systems and development of their prototypes UAB Selteka G Research and experimental development UAB Terra IT in creating innovative high added value products by UAB Terra IT G Development of the intellectual self-paying production process planning system for flexible and complex management of production processes UAB Technologiniai valdymo sprendimai 87 6 G Investment in the development of innovative robotic systems UAB ROBOTEX M M Development of the system for identification of chemical elements using the image of a plant using aero remote spectrometric methods Development of a system of mass sensors integrated in refrigerators and intended for the identification of the freshness or decay of food UAB ART UAB Ars Lab, M Development of an automated mealworm breeding technology to produce high value feed and food supplements UAB inovacinė firma MKDS

50 Priority Project Applicant Value in the proposal, EUR 000s M M Creation of the industrial prototype of the technological equipment for elimination of water from sapropel through freezing into snow crystals UAB Chemcentras technological agro-inovations UAB Iksada production and technical centre UAB CHEMCENTRAS Requested financing, EUR 000s Allocated financing, EUR 000s 8 7 M Creation of a prototype of the methodology and systems for the support to technological precision farming solutions based on spatial and sensory data UAB HNIT-BALTIC M Creation of the prototypes of the functional food to satisfy the specific needs of different groups of people UAB Rūta S Development of technologies to produce biosimilar monoclonal antibodies UAB Biotechnological Pharmaceuticals Centre Biotechpharma 7,70 3,050, S Technology for imunomodelling of organism and stopping proliferation of malignant cells based on manipulation of molecules using S.cerevisiae preparations (ImunoM) UAB BIOCENTRAS,3, 3 S Development of the second generation express system tailored to produce IgG monoclonal antibodies UAB Biotechnological Pharmaceuticals Centre Biotechpharma, S UAB Imunodiagnostika investments in R&D: innovation in allergy diagnostics UAB Imunodiagnostika, S Development of the technology for stem cell cultivation / increase to the level of the therapeutic cell content UAB Kamieninių ląstelių tyrimų centras, S Biosentox (Biological sensors for toxin detection) UAB Energenas S S Anti-microbial preparation in the treatment of Pseudomonas aeruginosa infections Development of the native recombinant human caltinclin protein production technology in the yeast manifestation system UAB Nomads UAB Baltymas S New prostate cancer diagnostic tools (NPVDP) UAB Diagnolita S S Development of the technology of anti-cancer medicinal preparations based on the selective carbonic anhydrase ix suppression Development of smart dental prosthesis technologies SPD (Smart Prosthetic Dentistry) and the corresponding personalised prosthetic implants UAB ThermoPharma Baltic UAB BALTIC ORTHOSER- VICE 57,5 80, S S Development of a tool for assessing efficiency of personalised physical activity and methodology for the application of the tool Development of the information ecosystem and applications for processing medical images, computer diagnosis, and support of clinical decisions UAB InMedica UAB Softneta,05,

51 Priority Project Applicant Value in the proposal, EUR 000s S RTD project for the medical operating system and applications UAB Softneta 805 Requested financing, EUR 000s 709 Allocated financing, EUR 000s 9 S Medicinal preparations which model advanced therapy immune system for cancer treatment UAB Froceth S Project AURORA robotic remote patent monitoring, diagnostic and assistance system UAB Rubedo sistemos S A prototype of the remote system for monitoring vital parameters UAB ELDES S Development of multifunctional compression instruments for treatment of hypertrophic scars UAB Ortopedicjos klinika S Personal transport means for a disabled person UAB MSC Antakalnis S Health risk profile assessment expert system (D-Health) UAB Kvantas S Development of mobile health technological systems for controlling the person s aerobic exercise and getting e-consultations (HRVworkout) UAB De Futuro 67 S3 Development of a mini kit for the detection of protein cancer marks UAB Erumpo S3 Development of a diagnostic kit and methodology for diagnosing thyroid follicular neoplasm and thyroid follicular carcinoma UAB Nabelita S3 Investment in the development of innovative medical equipment UAB Esco Medical S3 Research of innovative orthodontics concepts digital-patient and smart materials, practical clinical application and creation of products UAB PRODENTUM S3 Development of the smart, biopolymeric dressing coated with silver nanoparticles with the infection indicative system UAB IKN S3 Functional diagnostic system based on the measurement and analysis of the nutrient artery sphygmograms UAB Inovatyvios Diagnostikos Centras 7 97 S3 Innovative motion simulator at the creation of a prototype UAB Vildoma S3 The use of virtual reality technology for the creation of new psychotherapy measures UAB SneakyBox T Development of new products UAB Ruptela, T R&D of smart transport traffic control and monitoring technologies UAB Altas IT,

52 Priority Project Applicant Value in the proposal, EUR 000s T Creation of a prototype of a new IT service for transport insurance risk management using telemetric data UAB Finance engineering 6 Requested financing, EUR 000s 83 Allocated financing, EUR 000s 83 T3 Development of innovative products UAB Elitnet, T3 UAB Creditinfo Lietuva R&D activities required for development of new models UAB Creditinfo Lietuva, T3 Smart data analysis assistant UAB Exacaster, T3 Automatic speech recognition, synthesis and customisation technologies, their improvement through R&D (Speech Cloud) UAB TILDE INFORMA- CINĖS TECHNOLOGIJOS, T3 Self-paying smart image recognition, statistical data collection, analysis and graphic representation system UAB TV partneriai T3 Economic and IT innovations for the leisure and entertainment industry UAB Frogdom T3 R&D project for development of the system for identification and processing of legal arguments based on the information resource semantisation technology UAB LEXNET T3 Innovation for the adaptation of artificial intelligence in news processing UAB Nextury Ventures T3 Software for modelling enhanced security telecommunication networks UAB Cellular Expert 0 6 T Arcadia Baltics R&D activities required to develop cyber security services UAB Arcadia Baltics, T Smart cloud computing application technology (SCAF) UAB Sekasoft T Complex system for the prevention of the early stages of cyber-attacks (KASKAPS) UAB MEDIA INOVACIJOS T Amusement park virtualisation, advanced localisation and secure carabiner solution UAB UNO Parks 83 0 V Digital instruments to increase adult learning efficiency UAB AYUS V Adaptive learning environment Joint Lithuanian, Russian and Dutch company UAB TEV V Development of the imitation model for assessing activities and efficiency of the educational port and development of competences UAB INFORMACINĖ RAI- DA V Development of the systemic tools for management and analysis of competences and skills in Lithuania UAB Nacionalinis švietimo centras 300 V Development of a prototype of the customised adult learning system and its adaptation in the continuous adult education processes UAB Binar Solutions

53 Priority Project Applicant Value in the proposal, EUR 000s V Development of the innovative car sharing service management solution UAB CityBee Solutions,370 Requested financing, EUR 000s 763 Allocated financing, EUR 000s 6 V UAB Sharecruit investments in R&D UAB Sharecruit V Public institution Kitokie Projektai investments in R&D VšĮ Kitokie projektai Source: 0-00 EU Structural Investment Portal of the Ministry of Finance of the Republic of Lithuania. February, 07 53

54 Annex 3. Link (overlap) of the economic sectors and Smart Specialisation topics, 0 indicators and change in 00-0 Smart Specialisation topics / NACE class code Smart Specialisation priority / name of NACE class Number of companies, units Change, % Added value (production prices), million EUR Change, % Profit, million EUR Change, % Material investments, million EUR Change, % Fulltime equivalent employees Change, % Code RDI priority / NACE class Comp. Δ% VA Δ% GP Δ% MI Δ% FTE Δ% E Smart energy systems, , Manufacture of electricity distribution and control apparatus , Electricity transmission Electrical distribution , Architectural activities, ,70 7 Engineering activities and related technical consultancy, ,695 7 E Energy from biomass and waste , Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials ,8 6 5 Manufacture of central heating radiators and boilers Manufacture of ovens. furnaces and furnace burners Manufacture of other general-purpose machinery and equipment n.e.c Treatment and disposal of non-hazardous waste , Treatment and disposal of hazardous waste E3 Digital construction, ,70 0 Construction of buildings 3, ,09 5,9 7 38,699 3 Installation of electrical systems, , 9 6,8 3 Plumbing. heat and air-conditioning installation, , 67 5,776 7 Architectural activities, ,6 365,70 7 Engineering activities and related technical consultancy, , 5,

55 Code RDI priority / NACE class Comp. Δ% VA Δ% GP Δ% MI Δ% FTE Δ% E Solar energy, ,990 6 Manufacture of electronic components Manufacture of optical instruments and photographic equipment Manufacture of ovens. furnaces and furnace burners Plumbing. heat and air-conditioning installation, ,776 7 Engineering activities and related technical consultancy, ,695 7 S Molecular technologies ,53 6 Manufacture of basic pharmaceutical products and pharmaceutical preparations Manufacture of optical instruments and photographic equipment Research and experimental development on biotechnology S 86 Advanced technologies for health Human health care activities,693, ,569, Other in-patient care activities Research and experimental development on biotechnology Other research and experimental development on natural sciences and engineering M-M3 Agro-innovations and food technology, ,7 0 Food production, , Manufacture of machinery for food. beverage and tobacco processing Other research and experimental development in natural sciences and engineering , G Photonic and laser technologies Manufacture of optical instruments and photographic equipment Manufacture of electric lighting equipment

56 Code RDI priority / NACE class Comp. Δ% VA Δ% GP Δ% MI Δ% FTE Δ% G Functional materials and coatings Manufacture of paint, varnishes and similar coatings, printing ink and mastics Manufacture of electronic components Manufacture of optical instruments and photographic equipment G3 Structural and composite materials, ,8 9 7 Manufacture of paper and paper products ,0 3 Manufacture of rubber and plastic products , Manufacture of products of wood, cork, straw and plaiting materials, , Manufacture of articles of concrete, cement and plaster , Manufacture of abrasive products and non-metallic mineral products n.e.c Manufacture of structural metal products , Manufacture of plastics G Flexible production systems , Manufacture of machinery and equipment n.e.c , Installation of industrial machinery and equipment T-T Transport 0, , Land transport and transport via pipelines 8, , Water transport , Air transport , Storage and activities incidental to transport services, ,090 T3-T ICT 3, , Telecommunications , Computer programming, consultancy and related activities, , Information services activities ,

57 Code RDI priority / NACE class Comp. Δ% VA Δ% GP Δ% MI Δ% FTE Δ% 6 Manufacture of electronic components and boards Manufacture of computers and peripheral equipment Manufacture of communications equipment V Educational Technologies 9, , Publishing activities ,67-85 Education 9, ,566 7 Research and experimental development on social sciences and humanities V Implementation of breakthrough innovations 6, , Management consultancy 3, , Technical testing and analysis , Research and experimental development on social sciences and humanities Higher education Engineering activities and its related technical consultancy, ,695 7 Source: Statistics Lithuania, calculations by MOSTA 57

58 Annex. Main indicators of RDI priorities Smart specialisation priority code Priority name Normalised citation index Q publications International collaboration publications, % Patents Correspondence to RDI and Smart Specialisation criteria, % Financing by Intellect, million EUR Concentration in technologies (Intellect applications) Financing by H00, million EUR G Functional materials and coatings S Advanced technologies for health G Photonic and laser technologies S Molecular technologies G3 Structural and composite materials E Smart energy systems E Solar energy S3 Advanced medical engineering G Flexible production systems M Functional food E Generation of energy from biomass M Safer food T Smart transport and ICT systems E3 Digital construction T Cloud computing and services T3 Electronic content V M3 Implementation of breakthrough innovations Biorefinery V Educational technologies T International transport corridors Median

59 Mokslo ir studijų stebėsenos ir analizės centras (MOSTA) Geležinio Vilko g., LT-0363 Vilnius

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