Download Figure 3. The comparison of the research proportions

Bogdan N.I.,
Belarusian State Economic University
Minsk, Belarus
National innovative system in Belarus: glance at the regions
The concept of innovative systems has a multilevel basis and includes the
level above national, national and regional levels. In Belarus «The Concept of
national innovative system» was accepted in 2006 and the State program on the
Concept’s realization was developed.
Formation of the Belarus national innovative system goes in conditions of
creation of the knowledge economy and globalization of the world economic
sphere that requests the revealing of new factors of economic growth and
understanding the role of the regions in realization of modern development
tendencies.
Problems of the Belarus national innovative system in economy of
knowledge
Modern development is characterized by new sources of growth. As world
experience and economic researches show, knowledge becomes more important
factor of growth, than work and capital. There was a new term defining the role
of knowledge in development – “the economy of knowledge”. The common
definition for this phenomenon hasn’t been generated yet. In our opinion, the
economy of knowledge can be defined as economy that leans on scientific
researches and development and is characterized by development of the high
technology manufactures and services and use of highly skilled human
resources. According to the OECD methodology knowledge investments
include three components: investments in researches and development;
investments in higher education and ICT (software products) expenses.
Nowadays the following countries have the highest level of the
knowledge investments: Sweden (6.8% of GDP), USA (6.6%), and Finland
(6.1%)(Figure 1). Knowledge investments have precisely expressed tendency to
growth, and the strongest one is in the leader countries of the world
competitiveness. Our calculations have shown that Belarus is an outsider in the
knowledge investments in comparison with the developed countries. The level
of the knowledge investments is about 2% of GDP (the share of the higher
education expenses is 1.4% of GDP and the share of expenses on research and
development is 0.6% of GDP). This parameter is still slightly overestimated, as
education expenses “are not cleared” from the expenses for research and
development. From the other hand, there is no statistics in our republic about
ICT contribution into national economy; therefore the given component of the
knowledge investments wasn’t estimated. There are just expert estimations of
the software sales [1, p.46], according to which they make approximately 100
1
mln. $ that doesn’t exceed 0.3% of GDP.
Sweden
The USA
Finland
Korea
Denmark
OECD
Japan
Germany
Belgium
EU
Great Britain
France
Austria
Spain
Ireland
Italy
Belarus
Portugal
0
1
2
3
4
5
6
7
% of GDP
R&D
Software
High education
Source: OECD Science, Technology and Industry Scoreboard, 2005.
Figure 1. Investments in knowledge by the countries of the world (% of GDP),
2002
The expenses on research and development are the key element of the
knowledge investments, they influence on growth of the labour productivity.
Considering the tendencies of the scientific researches’ expenses it is necessary
to note, that all developed countries have increased investments into this sphere
for the last years [2]. Belarus, unfortunately, doesn’t enter the world tendencies
of the expenses on research and development growth; tasks on growth of science
intensity of GDP were not executed during the last five years. From 1990 to
2004 science intensity of GDP was reduced in 3.4 times (from 2.13% down to
2
0.63%) and only in 2005 it has risen up to 0.69% of GDP (Figure 2).
3,95
Sweden
3,51
Finland
3,13
Japan
2,68
USA
2,50
G7
2,26
OECD
1,90
EU
1,30
China
1,15
Russia
Belarus
0,00
0,69
1,00
2,00
3,00
4,00
5,00
% of GDP
Sources:
1. Main Science and Technology Indicators, OECD, Paris, 2006
2. The data of the Ministry of Statistics and Analysis of the Republic of
Belarus (2005)
Figure 2. Science intensity of GDP (share of budget appropriations for science
in GDP), 2004
The structure of expenses but not the amount of investments and the level
of R&D intensity of GDP (though they are certainly important) is the key
difference between Belarus and developed countries. In Belarus, and Russia
also, the major share of the science expenses lays on the budget shoulders, and
these sources are always limited. Our calculations show that the enterprises
finances have a share of 10-15% of all expenses in total internal expenses on
research and development while in the developed countries this share is 60% i.e.
the Belarus enterprise sector finances research and development extremely
insufficiently. The reasons for this situation are not unequivocal. Historically the
enterprises of the former USSR conducted scientific development not
independently, but through branch scientific research institutes, therefore the
scientific personnel didn’t concentrate at the enterprises, and the science has
been torn off from the practice in many respects. Comparison of the specific
number of the researchers working directly at the enterprises in Belarus and in
the developed countries particularly testifies to it (Figure 3).
3
The number of researchers per 1000 of the
employed
8
6,7
Proportion of researches, %
7
6
6
5
4
3
2,5
2
1
0,36
0
EU
USA
Japan
Belarus
Countries
Comment: There is the data of belarusian industry (2004)
Source: OECD (MSTI 1/2000)
Figure 3. The comparison of the research proportions
The analysis shows, that Belarus lags behind the EU countries in 7 times,
in comparison with USA - in 18 times. It is necessary to note the negative
tendency of the indicator dynamics that describes the number of researchers,
working directly in the industry: it has decreased in 2004 in comparison with
1998 from 0.59 down to 0.36 on 1000 workers. Meanwhile the backlog of the
cumulative specific number of researchers on 1000 workers in our country isn’t
significant in comparison with the developed countries: it is 0.78 to the level of
EU and 0.5 in relation to the USA level.
The other reason is the backwardness of the competition processes and the
inefficiency of the enterprises’ owners. Transition to market relations goes
4
slowly, and the enterprises don’t always realize the role of innovations as the
tool for competition and poorly cooperate with the science.
Insufficiency of the resources, allocated for the science, limits the scales
and results of scientific searches. Comparison of the amount of the research and
development financing per capita (in US dollars by purchasing power parity)
shows that, in spite of the fact that the developed countries differ by the amount
of the resources allocated for the purposes of scientific researches and
development, they aspire to provide approximately equal opportunities for the
researchers (Figure 4).
1200
1063
Amount of financing R&D, USD
1000
924
841
800
627
600
528
400
200
116
72
38,4
0
USA
Japan
G7
OECD
EU-15
Russia
China
Belarus
Countries
Comment: In Belarus the amount of financing R&D was 313.7 billion rubles in
2004 (145 million USD or 14.8 USD per capita by current exchange rate)
Source: Main Science and Technology Indicators, OECD, Paris, 2006
Figure 4. Amount of financing R&D per capita by the world countries (by
purchasing power parity, USD), 2004
If this condition isn’t followed, the “brain drain” is observed. For
5
example, the USA almost twice exceed the amount of financing per capita in
comparison with EU-15, therefore Europe takes the measures directed on
fastening of the scientific personnel and aspires to increase the resources of the
science financing essentially. Russia allocates almost three times more finances
(per capita) for the science than Belarus that partly promotes scientific
migration. In 2005 54 scientific workers and high schools teachers have
emigrated from Belarus and stayed abroad after temporary residence, including
to Russia 22 persons (40%), there are 3 doctors and 6 candidates of sciences
among them. The number of the Belarus scientists emigrated in the USA grows.
In 2005 the share of the scientists who have chosen the USA as the departure
country, was 16.7% of the general number (in 2001 – 8.6%) [3, p.79-80]
Thus, the international comparisons show that Belarus essentially lags
behind the investments into scientific researches and development not only from
the developed countries, but also from the developing economies (China,
Russia). And this backlog is not reduced, but accrues, as the country doesn’t
enter the international tendencies of growth of the scientific expenses. This
conducts to outflow of a thin layer of the most qualified part of the labour
resources that have to become the locomotive of the movement to the economy
of knowledge.
We shall consider the expenses on higher education that are the second
component of the knowledge investments. In the modern world the role of
education has cardinally changed. Today, by the estimations of the international
experts, distinctions between the developed and developing countries are caused
by economic conditions only on one third, and by the level and quality of
education - on two thirds.
Belarus finances education at the level of the developed countries, as the
comparative analysis shows (Figure 5).
The level of expenses in the sphere of higher education is 1.4% of GDP
that even exceeds an average level of the expenses in the OECD countries
(1.3%), but lags behind from northern Europe countries like Denmark (2.5%),
Finland (2.1%), Norway (2.3%) and Sweden (2.2%). But these countries lead in
the innovative development and in the ratings of competitiveness that once again
confirms the role of education for the future social and economic development.
The system of higher education in republic develops with fast rates: the quantity
of the state high schools has increased for last decade from 37 up to 43, counting
the private higher educational institutions - their number has reached 55, there
are 370 students per 10 000 population in the country that is comparable to the
developed countries. At the same time, the expansion of the students’ contingent
is not always accompanied by adequate financing that leads to the problems of
the
equal
access
to
education.
6
Iceland
7,37
USD
7,23
7,11
Countries
Denmark
6,36
Belgium
6,23
Sweden
Finland
6,00
Belarus
6,00
5,75
OECD
4,69
Japan
0,00
2,00
4,00
6,00
8,00
% of GDP
Source: Education at a Glance: OECD indicators 2005
Figure 5. The level of education expenditures in 2002 (% of GDP)
.
Expenses on the student at the third step of education (higher and college
education) have the maximum of 11 254$ (at par of the purchasing capacity) in
the OECD countries, and the highest level they have in the USA – 24 074$ and
in Switzerland - 25 900$. Priorities in the state expenditures on higher education
in the international comparisons are considered in relative sizes: in expenses on
the student in percentage to GDP per capita (Figure 6). Data testifies that
Belarus keeps the state support of higher education at a relatively high level –
27.6% of GDP per capita, and this is more, than in the majority of the CIS
countries. For example, the comparable parameter in Azerbaijan is 12.8%,
Kazakhstan – 6.2%, Kyrgyzstan – 21.2% of GDP per capita.
The international community has paid attention to the problem of the
higher education financing of at the conference for the Ministers of Education in
Athens on June, 27-28th, 2006 where it has been underlined, that it is necessary
to shift the priorities from “increases in scales of higher education to the quality
improvement” and to provide the access to higher education for all social groups
[4]. The European Union has decided to increase the expenses on higher
education up to 2% of GDP [10, p.7]. Thus, the level of the state expenditures
on higher education is the major indicator in construction of the economy of
7
knowledge and in maintenance of the future country’s competitiveness.
According to the relative expenses on higher education Belarus still
corresponds to the developed countries, however the world development
tendencies testify, that it is necessary to monitor the education financing
constantly.
120
102,4
100
74,6
59,9
60
38,6
40
38,1
27,6
25,9
USA
32,5
Belarus
% of GDP
80
20
Iceland
Finland
Belgium
Switzerland
Denmark
Malaysia
0
Countries
Comment: Belarus – 6052; Malaysia – 9512; Switzerland– 30552; Finland –
27619; USA – 37652 (GDP by purchasing power parity, billion USD), 2003
Source: Global Education Digest, 2006; Human Development Report, 2005
Figure 6. Governmental education expenditure per one student (% of GDP per
capita)
Alongside with the problems of education financing the structure of the
professional training plays a very important role. In the economy of knowledge
the attention is paid to the professional training on scientific and technical
specialties. There is an indicator in the European Innovative Scoreboard (EIS)
[6] that describes a share of the high school graduates and postgraduate students
in the noted directions of training at the age of 20-29. It characterizes the
8
actuality of the science and engineering training among youth. The analysis of
the data shows, that in the USA the youth is twice less focused on engineering
training, than in France or Great Britain. Trying to overcome the deficiency of
this type of specialists, the USA expands the attraction of such experts from
abroad, both from Western Europe, and from the CIS countries.
Belarus keeps the structure of the professional training that corresponds to
the tendencies of the innovative economy formation. However for the last years
the decrease in the offer of graduates in investigated directions in professional
training is observed (Figure 7).
35
Share of supplying graduates in total
institutions’ graduates
30,53
30
26,1725,79
25,97
30,1
26,7
25
20
18,31
21,21 22,08
16,87
15
10
5
0
USA
Japan
Great Britain
Sweden
Belarus
Countries
1997/1998
2002/2003
Sources:
1. Eurostat-HRST
2. The Ministry of Statistics and Analysis of the Republic of Belarus
Figure 7. The dynamics of supplying graduates by scientific and engineering
specialties in the world countries (1997/1998 and 2002/2003 – academic years).
The data shows, that in 2004 the share of graduates of science and
engineering in the country corresponded to the European parameters and
exceeded the level of Japan. But the dynamics in the structure of the
professional training has changed: the offer on science and technical specialties
in Belarus has been reduced from 40% of graduates in 1993 down to 30% in
1998 and in 2005 it was 26.5% of the high schools graduates.
The analysis has shown that in Belarus the human capital for the economy
9
of knowledge is basically generated. The country has enough resources to solve
the problems in construction of the modern economy as by the number of people
with the tertiary level of education among workers (Belarus almost twice
exceeds the European level), and by the number of the personnel in scientific
and technical activity. At the same time, the processes of innovative activity
stagnate in the country:
 the level of innovative activity in industry in 2002-2005 practically has
not grown (13.9% in 2002 and 14.1% in 2005. In the developed countries every
second enterprise is engaged in innovative activity);
 R&D intensity of the innovative expenses is low – 6.8% in 2005;
 the share of hi-tech export in the industrial export does not exceed 34% (in the developed countries - 20%);
 small innovative business does not develop. The share of the small
enterprises in scientific and technical sphere was reduced twice for the last five
years.
The country has scientific development, qualified personnel, but the
achievements of innovative development are not significant. The main reason of
the weak adaptation of the Belarus enterprises for innovative calls of the new
century stays at the institutional level. The complexities of the transformation
period and historical conditions did not promote the active role for the
enterprises in financing of research and development. Institutional construction
of the country’s innovative system has political aims and priorities. In Belarus
“The Concept of national innovative system” was accepted and the State
program on the Concept’s realization was developed. The regional level of the
innovative system has to play an important role.
Regional asymmetries of the innovative development in Belarus
A number of factors help to increase the importance of innovative
systems at the regional level. First, in connection with globalization, regions are
more involved in the international exchange, passing national borders, they
become independent participants accepting the political decisions and regional
legislation. Secondly, at the national level the regional environment in many
ways defines competitiveness of the national business. Innovations are more
resulted from environment than from individual efforts. Thirdly, the local level
of innovative development has changed. The concept of «new regionalism» has
come instead of «fordism» with mass production and mass consumption. The
postindustrial economy possesses high dynamism and individualization in
manufacturing and consumption, that sharply increases the regional factor.
The analysis shows a significant asymmetry in scientific and technical
potential in the regions in Belarus (table 1).
10
Table 1. The proportion of scientific and technical potential by the regions
of the Republic of Belarus
Region
Organizations
engaged in
research and
development,%
Researchers, %
Structure of
average annual
R&D fixed assets,
%
Structure of
expenditure on
research and
development,
%
2000
2004
2000
2004
2000
2004
2000
2004
Republic of
Belarus
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
Brest
5,5
5,4
1,4
1,3
2,0
1,2
Vitebsk
8,8
8,5
3,2
3,1
2,5
Gomel
9,1
9,5
7,2
8,6
Grodno
3,6
61,9
5,5
5,5
5,1
61,3
5,1
5,1
1,5
79,6
5,4
1,7
1,4
79,4
4,8
1,4
Minsk-City
Minsk
Mogilev
0,8
1,0
2,1
2,7
2,3
12,6
10,3
8,4
9,5
15,7
58,3
5,8
3,1
2,0
79,7
2,7
2,0
1,9
79,8
4,5
1,9
2,2
78,4
4,6
2,0
Source: [7, p.17]
The basic part of scientific and technical potential is concentrated in the
capital and for the last years the appreciable shifts in its regional distribution
were not observed. The amount of financing per one worker in research and
development in 2004, was 5 200 $ in Belarus, in the regions it changed from
8 000 $ in Minsk to 4 000 $ in Vitebsk region, i.e. it differed twice.
Asymmetries in the density of R&D workers in republic are essential:
80% of researchers and expenses for research and development are concentrated
in capital. But if the «gaps» in density of scientific workers on the country’s
territory can be partially objective owing to the concentration of the academic
and other scientific institutions in the capital, the differences in the level of
research and development employees’ payment is hard to explain. According to
data of 2004, the average salary level of the scientific workers differed from Br
315.7 thousand in Minsk, and Br 302.1 thousand in Minsk region down to Br
181 and 190 thousand in Vitebsk and Mogilyov regions accordingly, i.e. 1.7
times less. In our opinion, the so-called factor of inclusion (involvements)
operates here - the capital region uses the advantages of being close to the
center, better information and it uses scientific grants more often.
At the same time it is necessary to emphasize that asymmetry of
innovative activity in the regions isn’t so significant, as asymmetry of scientific
11
and technical potential (table 2).
Table 2. Comparison of the scientific and innovative activities by the
regions of the Republic of Belarus.
Region
Republic of
Belarus
Scientific
research and
development
personnel per
10000 people
engaged in
economy
2002
2005
Total amount of
financing of
research and
development per
one worker1,
thousand rubles
Average
wages/earnings of
workers1,
thousand rubles
2002
2005
2002
2005
2002
2005
Level of
innovative
activity2,%
70
69
5487
14744
158,2
413,1
13,9
14,1
Brest
7
8
4201
11663
66,4
261,5
19,8
17,3
Vitebsk
19
24
4540
11024
102,8
223,9
10,7
9,6
Gomel
45
46
6573
15124
202,1
455,8
11,8
12,3
Grodno
10
9
7980
18977
148,8
294,3
10,9
13,7
Minsk-City
252
231
5469
14984
163,6
425,4
25,5
25,5
Minsk
30
29
4145
12545
112,8
444,8
11,4
12,1
Mogilev
11
12
5904
17909
65,6
224,8
7,7
9,7
Workers – people who have done scientific researches and developments
It is calculated as a proportion of the number of innovative-active enterprises to
the number of investigated enterprises by innovative activity.
Source: [3]
1
2
Relatively weak in scientific potential regions go ahead or slightly lag
behind the regions that have significant personnel, financial and technical
potential. There are several reasons for this.
1. Innovative process has changed in the modern economy. It used to
proceed from so-called «linear model» when innovations were based on
scientific researches, now it proceeds from so-called «integrated model». In
these conditions the institutional environment, rules of the game and relations
between the participants of innovative process (scientists, businessmen,
politicians, financiers and officials) become critically important.
2. The other reason of the weak influence of scientific and technical
potential on innovative processes consists in the following problem. Many tasks
for scientific and technical programs and innovative projects are initiated by
12
scientists not by the production level, and marketing researches are not always
made. Scientific and technical production is often not demanded because of the
innovative susceptibility of the real sector of economy.
3. The third reason explains the disproportion of scientific and technical
potential and the results of innovative activity in regions. They don’t have
experience of statistical reflection of innovative processes in republic. The
innovations statistics requests high qualification of executors. Unfortunately,
there are still many unsolved problems in statistical survey of innovative
activity.
4. There are some differences in the institutional environment. Belarus
western regions, that have a smaller share of industrial production and
accordingly smaller depth and duration of transformations after disintegration of
Soviet Union, have still kept the «historical memory» of doing business and
normal way of market processes. Besides that the western regions (Brest and
Grodno regions) are influenced by the «demonstration effect» because of the
frontier position with European Union. These regions have higher employment
at the private end foreign enterprises. The analysis has shown that a specific
number of the small enterprises in scientific and technical sphere (per 1000
researchers) in Brest region is higher than in Vitebsk and Gomel regions that
have more powerful scientific and technical potential.
Stability of the national innovative system depends on its subnational
levels and on the way they are expressed in the development strategy and how
they answer the innovative calls in science and technologies. Meanwhile, the
modern condition of the Belarus national innovative system is characterized by a
fragmentation and instability. Innovative activity in the region depends not only
on scientific and technical potential, but also on its institutional potential that is
much more difficult to define. The estimation of the institutional environment in
the region is complicated by virtue of complexity in the measurement of
“nontechnical” barriers of innovative activity. The problem is that institutes as
forms of the public life have plural interrelations that submits to the laws of
internal dynamics. The parameters of the institutional potential have to
characterize the ability of interaction of research sector and industry and to
define the presence of the business networks in the region as complex of stable
and relatively closed communications between the economic agents, workers or
aspired and interested in expansion and development of innovative activity
people. There is a question of mutual cooperation of the enterprises,
organizations and officials in the region’s innovative sphere.
Problems and perspectives of the institutional construction of the
innovative system in Belarus with a support of the regions
During the institutional transformations it should be noted that in the
economy of knowledge the state has to carry out not only macroeconomic
regulation, but also has to act as the organizer of the institutional interactions, to
13
create the mechanisms of formation, storage and distribution of new knowledge
and technologies. The maintenance of the processes’ interaction of enterprise
and research spheres, creation of motivation for economic agents to innovation
manufacture becomes a key problem of the state policy.
The holistic approach to the innovative policy should become a basis for
construction of the national innovative system. It assumes the use of the
complex of mechanisms for maintenance of the duly appearance of the favorable
competitive conditions for new technologies.
The principles of such approach consist of strategic integration of the
innovative policy into all spheres of the state policy; combinations of branch and
regional policy with the innovative one; horizontal and vertical coordination of
the policy mechanisms; orientations on the practice results and the best
experience.
The state can promote the creation of the innovative markets in the new
economy. The creation of markets that favour to innovations demands the
formation of the harmonized environment from the state. In this environment the
system of standards sets a hi-tech level of requirements, the system of the state
orders is an engine of demand for innovative development and at the same time,
improves the system of the state social services. The system of the state
purchases can make the essential shifts on intensity of the scientific
development from the enterprise sector. The concept of innovation-friendly
market is actively developing by the EU countries [8]. It is expedient to use the
experience of the EU countries in activization of the role of the state support of
innovative development.
The formation of the knowledge economy alongside with the growth of
the knowledge investments assumes the essential state expenses for institutional
transformations. There are no free-of-charge reforms. By the estimations of
Russian experts serious reforms demand about 15-20 billion rubles [9, c.26].
Additional resources are necessary for realization of the political initiatives in
formation of innovative economy for monitoring of the situation, infrastructure,
training and informational support.
The major directions of the innovative policy in the knowledge economy
are the following:
 creation of the coordination mechanisms to put together all political
initiatives under the vector of innovations. The industrial, competitive, tax,
monetary, financial and regional policies should be focused on solving of the
innovative development problems. Using the experience of the EU countries for
these purposes the formation of the Innovations Department at the highest
political level can be possible;
 adjusting mechanisms should be oriented at creation of the adequate to
the problems of innovative development legislative base and receiving full and
trustworthy information to make the political decisions. For the high-grade
monitoring of the innovative activity it is expedient to expand the innovations
14
statistics by the example of “the European Innovation Scoreboard”, that will
allow to benchmark the policy tools and to reveal weak sides of the innovative
development model;
 stimulating mechanisms of innovative development have to expand the
diffusion of the results of scientific researches that assumes the changes in the
intellectual property between the state and a private sector, development of
partnership between the state and business. It is necessary to develop the
programs of the business support in scientific and technical sphere and the
educational programs on innovative management for the managers, to support
the network mechanisms of cooperation based on information and
communication technologies and to create the regional clusters for innovative
development, that are used in the developed countries.
Using the experience of the European regulation of the regional
innovative development it seems expedient to carry out a complex of measures
in formation of the regional innovative systems:
 to form regional development strategies with participation of local
authorities, universities, enterprise structures;
 to allocate up to 20% of finances from the Regional scientific and
technical programs for the «soft» support (creating the development strategies of
the region);
 to define the sources for the financial support of innovative
infrastructure at the republican and local levels;
 to define the specialization of the innovative infrastructure with
participation of the regional scientific and technical Departments and business
support organizations;
 to develop the methods for the efficiency estimation of innovative
infrastructure (indicators, methods of their calculation);
 to expand the practice of the «independent expertise» of the scientific
and technical programs and projects, involving in some cases foreign experts;
 to provide an information transparency of the reached results in
practical scientific researches;
 to expand consultations with public associations of scientists for
selection of priorities in scientific and technical development;
 to lead national/regional competition of innovative projects with the
participation of sponsors that can help to create «histories of success»;
 to promote the international cooperation in «soft support» of the
innovative activity.
15
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