Research and Innovation Capacities in Bosnia and Herzegovina: Insights and Trends
Uncover the historical overview and current state of research in Bosnia and Herzegovina, along with insights into private and public sector investments in R&D, collaboration networks, industry perspectives on innovation, and more. Explore global research and innovation trends, the Smiling Curve concept, and the innovation ecosystem characteristics of BiH. Dive into the challenges and opportunities in research and innovation in this region.
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Presentation Transcript
Research and innovation capacities Research and innovation environment in Bosnia and Herzegovina Meeting Mi el Pavlica 25.3.2024
1. Historical overview & current state of research in Bosnia and Herzegovina 2. Private & public sector investment in R&D 3. Collaboration networks and innovation projects 4. Industry perspectives on innovation and research adoption Presentation content
Research and innovation trends (worldwide) Sustainability and Green Technologies Artificial Intelligence and Automation Digital Transformation Biotechnology and Health Innovations Supply Chain Resilience Cybersecurity Smart Cities and Urban Mobility Advanced Materials Food Tech Source: DeepAI Chat, assessed 19/03/2024 Workplace Technology and Hybrid Work Solutions Decentralized Finance and Fintech Quantum Computing
The Smiling Curve Source: Yunshi Mao (2022) The Restructuring of Global Value Chains, Springer Books
Research and innovation in BiH (historical overview) Domination of large state owned companies Vertically covering big parts of a value chains Own R&D departments within companies Concentration to products Once upon a time Now Domination of private MSMEs (low number of large enterprises) Low position of companies in value chains Departments specifically focused to R&D are rare Concentration to processes (resulting from constant pressure to reduce prices) Weak and occasional links companies, universities and R&D institutions Limited use of external knowledge for research and innovation activities => Knowledge transfer discontinuity <= Source: Author s research Strong links with universities and R&D institutions Shared university and company KNOWLEDGE management
BiH innovation ecosystem characteristics Underdeveloped innovation system (lowest investment in the WB region) Developing innovation ecosystem primarily promotes tech transfer Still underdeveloped capacities of stakeholders and interactions which should enable joint use of scarce resources Limited private sector interest (in line with own absorption capacities and university capacities to conduct research) Insufficient research funding (primarilly relying on government budgets and international grants) Bureaucratic hurdles and lack of infrastructure
Supporting institutions Ministries (state, entity, cantonal) Institutions (development agencies, tech parks, incubators...) Universities, faculties High dependence on international projects Institutes and (accredited) labs Chambers, consultanicies
Spending Both, public and private spending are among the lowest in WB region Universities lack knowlege and resources for research Transformation of science research into innovation and products is low HR resource capacities are deteriorating (brain drain) R&D company spending amounted to 0,07% of GDP compared to EU average of 0,32% (2016) In the Global Innovation Index 2024, BiH is ranked 80(133) globally in and 37(39) in Europe, just ahead on Albania and Belarus Sources: https://www.wipo.int/gii-ranking/en/bosnia-and-herzegovina Had i , avali (2020) Analiza tr i ne inteligencije, inovacija i sposobnosti komercijalizacije prekograni nih MSP
R&D spending EU average spending was 2.2% of GDP or 381.4 billion in 2023 Top: Sweden (3.6%) followed by Belgium and Austria (3.3%) R&D expenditures as GDP share (2012-2019) Value added of production as a share of GDP per capita (USD) (2010-2020) Source: Agency for Statistics of BiH; United Nations Industrial Development Organization (UNIDO)
Regional collaboration, networks and projects A number of project driven activities establishing networks, providing funding for R&D and innovation Criticism: Sustainability after project completion, irreversible loss in enthusiasm after unsuccessful initiatives Quick shifting in donor s focus to new priorities, why networks and supporting institutions need to quickly adapt Example: GIZ provides German Government and EU funding into projects and programmes such as EU4Business, EU4Digitalization, in line with the needs of German economy) Due to low positions in global value chanins, foreign buyers are treating domestic companies as their operation facilities (no room for development)
BiH company attitude on research and innovation Predominant focus on production Low focus on R&D, design, logistics, marketing, after-sales services, etc. Lacking knowledge and capacities that include pre-production and post-production activities Significant dependence on partners, customers and suppliers Modest ecosystem for supporting businesses and the low trust of businesses in service providers The key requirements that push innovation come from buyers and legal requirements (e.g. standards, CBAM...) Consequences: low added value, competitiveness and profitability
BiH companies innovativeness overview A survey of 5,457 BiH companies shows that 40% have some innovative activities at the company level Only 4% of scientific and research personnel are employed in the private sector Cases of interaction of companies with public scientific and research system are rare Companies enojy almost no support from public sector 34% of companies develop new technologies internally, 33% in cooperation with foreign experts, 19% in cooperation with other companies, 10% obtain it through licenses, while less than 2% do so in cooperation with public scientific and research institutions Most companies are in unfavorable position for innovating even those that produce final products (e.g. furniture) often sell it under someone else's brand Sources: Agency for Statistics of BiH; Pucar, Pepi (2019) Sectoral Study on innovative capacities and potentials of companies
Industry perspectives - the way forward Continuous efforts towards integration with international / European frameworks Improvement of institutional frameworks critical in fostering a more thriving research environment Participation in various international research programs and networks, such as: EDIH - European Digital Innovation Hubs Network EIT - European Institute of Innovation & Technology Collaboration opportunities - initiatives like the Horizon Europe program and other EU initiatives While Bosnia and Herzegovina had a rich historical context in research and innovation, the challenges of the post-war period have tempered its development. Moving forward, strengthening institutional frameworks, enhancing funding, and promoting collaboration and innovation will be essential for revitalizing the research and innovation landscape in the country.
Thank you for your attention! Misel Pavlica info@devcon.pro +43 66 77 82 44 00 Gunduliceva 74 78000 Banjaluka Bosnia-Herzegovina
