Poland: Competitiveness Report 2015 Innovation and Poland s Performance in 2007-2014 Marzenna Anna Weresa The World Economy Research Institute Collegium of the World Economy
Key research questions How did the global economic crisis impact the innovativeness and competitiveness of the Polish economy? Was the global crisis a driver of change allowing Poland to overcome the limitations of the development process? To what extent did innovation become the basis for competitive capacity building at the beginning of the post-crisis period?
Switzerland Sweden Finland Germany Denmark Luxembourg Iceland Netherlands Belgium Ireland United Kingdom Austria France EU28 Cyprus Slovenia Norway Estonia Spain Italy Czech Republic Portugal Greece Hungary Malta Slovakia Croatia Poland Serbia Lithuania Romania Latvia Bulgaria Innovation: Poland in Europe, Summary Innovation Index (SII) in 2007 and 2014 compared 0,900 0,800 0,700 0,600 0,500 0,400 0,300 0,200 0,100 0,000 Summary Innovation Index "2014" Summary Innovation Index "2007" Source: IUS 2015, p. 92
2007 2008 2009 2010 2011 2012 2013 2014 Poland s National Innovation System and How It Evolved in 2007-2014 0,33 0,325 0,32 0,315 0,31 0,305 0,3 0,295 0,29 0,285 0,28 0,275 SII Poland 0,6 0,5 0,4 0,3 0,2 0,1 0 V4 and EU28 compared Source: own elaboration based on EC data. SII Poland SII Hungary SII EU28 SII Czech Rep. SII Slovakia
Developments of Poland s Innovation System in 2007-2014 The process of Poland s convergence with the EU15 in terms of real GDP per capita has been accompanied by a divergence in relation to the EU average in terms of innovativeness
Convergence/divergence in innovation (SII) towards EU28 in the period of 2004-2013, (percentage points) Changes in the Summary Innovation Index (SII) and changes in real GDP per capita (in PPS) in relation to the EU28 average levels, 2004-2013 (EU28=100; percentage points) 4 Slovenia 2 Hungary 0 Slovakia -5 0 5 10 15 20 25-2 -4 Czech Rep. -6-8 -10 Croatia Latvia Estonia Bulgaria Romania Poland Lithuania Convergence/divergence -12 in GDP per capita in PPS towards EU28 in the period of 2004-2013 (percentage points) Source: own elaboration based on EC data.
Comparative performance of Poland s national science and innovation system S&T occupations in total employment (%) Doctoral graduation rate in science and engineering Public R&D expenditures (per GDP) 140 120 100 Top 500 universities (per GDP) Publications in the top-quartile journals (per GDP) 15-year-old top performers in science (%) Adult population at tertiary education level (%) 80 60 40 20 Business R&D expenditure (per GDP) Triadic patent families (per GDP) International co-patenting (PCT patent applications)(%) 0 Venture capital (per GDP) International co-authorship (%) Ease of entrepreneurship index Patents filed by universities and public labs (per GDP) Industry-financed public R&D expenditures (by GDP) E-government readiness index Fixed broadband subscribers (per population) Wireless broadband subscribers (by population) Networks (autonomous systems) (by population) Poland Source: own elaboration based on OECD data. OECD sample median
3 areas of Poland s strengths compared do the OECD median 1. International co-patenting (PCT patent applications in %) 2. Wireless broadband subscribers (by population) 3. Networks (autonomous systems) (by population)
On the Minus Side Poland has not yet improved innovativeness (SII is in 2014 below the level achieved in 2011): Poland s ranked relatively low with regard to the majority of S&T indicators Increased R&D financing from the EU budget has yet to result in significant progress in Poland s science and technology system Poland lags behing in introducing new forms and models of innovation (eco, open, social)
Why innovation system in Poland has been developing so slowly? 2 possible reasons pointed out by theory: 1. The new growth theory (Romer, 1990; Agnion & Howitt, 1992, 2009) provides conceptual framework for empirical explorations regarding the relationships between R&D, innovation, competitiveness and growth: Knowledge having a public good characteristics, creates externalities, which arise from learning, observations and interactions. These spillovers increase returns and contribute to endogenous growth (Grilisches 1992). Such effects mean for an individual country, industry or enterprise real benefits with corresponding productivity increases (Meister & Verspagen, 2006, p. 3).
Why innovation system in Poland as been developing so slowly? 2 possible reasons pointed out by theory: 2. Evolutionary economics, regards innovation as a phenomenon dependent on technological paradigms, industry specific and shaped by many different contextual factors: vertical linkages and inter-sectoral knowledge diffusion (Lundvall 1992; Fagerberg, 1995) co-evolution of national, regional and sectoral systems of innovations (Nelson & & Rosenberg, 1993; Breschi & Malerba, Cooke, 2001)
Why innovation system in Poland as been developing so slowly? Too low R&D level (including business R&D) Inefficient links between science and business (problems with learning processes)
Conclusions
Innovation and sustainable competitiveness The concept of sustainable competitiveness and the sustainability-adjusted Global Competitiveness Index (GCI) Source: Corrigan et al. 2014, p. 64.
Sustainabiliy adjusted Global Competitiveness Index 2014 Innovation and sustainable competitiveness in the EU28 7 6 5 4 3 2 1 PL CZ HU SK 0 0,000 0,200 0,400 0,600 0,800 Summary Innovation Index 2014 Source: own elaboration based on data provided by WEF, 2014 and IUS, 2015.
Polish famous inventions 2014 Intelligent wheelchair, which can be used to control devices at home (award of the Ministry of Science) innovative method of treatment of the legs, which allows patients to avoid amputation (awarded at the 63rd International Exhibition of Invention, Research and New Technologies BRUSSELS INNOVA 2014) Spinncar 360 o turn round small car for cities
Policy Implications: Steps to Be Taken Invest in the creation of new knowledge and the development of human capital Support the transfer of knowledge from science to business and the spread of innovation Support the development of entrepreneurship Make the labor market more flexible Reduce bureaucracy The current imitation-based model should be scrapped and replaced by a model based on innovation.
Available free of charge at: http://kolegia.sgh.waw.pl/pl/kgs/struktura/igs- KGS/publikacje/Documents/Polska_raport_2015.pdf (in Polish) http://kolegia.sgh.waw.pl/pl/kgs/struktura/igs- KGS/publikacje/Documents/Poland_report_2015.pdf (in English) Thank you for your attention Marzenna.Weresa@sgh.waw.pl