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STRATEGY FOR THE DEVELOPMENT OF SCIENCE IN BOSNIA AND HERZEGOVINA November 2009 Full title of document: STRATEGY FOR THE DEVELOPMENT OF SCIENCE IN BOSNIA AND HERZEGOVINA Purpose of the document: Strategy for the development of science in BiH is a document providing strategic guidelines and plan of action for the development of scientific-research sector in Bosnia and Herzegovina, in the period from 2010 – 2015 aiming at a prosperous development of science and research, economy, education and culture in Bosnia and Herzegovina, in accordance with the recommendations for the development of science in Europe and worldwide. Document title: Strategy for the development of science in BiH 2010-2015. Status: Draft Version: 1.0 Version date: 06 May 2009 Owner: Ministry of Civil Affairs of Bosnia and Herzegovina Developed by: Mirsada Hukić,Ph.D. Živojin Erić,Ph.D. Jasmin Branković, M.A.Vinko Bogdan, M.A. Biljana Čamur Experts and associates: a) dr. Duško Jakšić b) dr. Gordana Đurić c) dr. Darko Petković d) Lidija Vignjević e) Zdravka Kraica Contents 1. 2. 3. Introduction ..................................................................................................................................3 Goals of the Strategy for the development of science in BiH................................…....................4 General information on the current situation in the scientific-research sector in EU and worldwide.................................................................................................................................... 5 4. Current situation in science in BiH………………………….......…………………………...…11 4.1 Country profile ……………………………………………………………………………........13 4.2 Bosnia and Herzegovina and EU …………………………...................................................….17 4.3 Funding scientific-research activities ……………….....................……..…….....……………..19 4.4 Current situation of the infrastructure and institutions in the sector of science...……………….22 4.4.1.Academies of Sciences …………………………………………………………………...…...24 4.4.2.Higher education institutions ……………………………………………………………….... 24 4.4.2.1.Bologna process-reform of universities ……………………………………………............. 26 4.4.3.Institutes……………………………………………………………………………...........….. 26 4.4.4.Internet and ICT…………………………………………………………………….........…….27 4.4.5.Library activities ………………………………………………………….......................…….29 4.5.Human resources in the research and development sector in BiH.................................................30 4.5.1.Productivity of scientists and researchers in BiH.......................................................................32 4.5.1.1.Published scientific work.........................................................................................................33 4.5.1.2. Patents.....................................................................................................................................34 4.6.Connection of science and economy..............................................................................................35 4.6.1.Innovation system.......................................................................................................................38 4.6.1.1.Innovation centres and scientific-technological parks.............................................................39 5. Legal framework for the development of science in BiH................................................................41 5.1.Competencies in the area of science and stakeholders .................................................................41 5.2.Relevant documents related to the Strategy for the development of science.................................42 5.3.Follow-up of statistical indicators in the area of science................................................................43 6.International cooperation...................................................................................................................44 6.1.Basis for international cooperation in the area of science..............................................................44 6.2. EU programs and other initiatives of international cooperation....................................................45 6.3.Agreements on cooperation in science...........................................................................................47 7. Funding scientific-research activities...............................................................................................48 7.1.Sources and models of funding scientific-research activities........................................................48 7.2. Funding the scientific research sector until 2015..........................................................................50 8.SWOT analysis..................................................................................................................................56 9.Scientific principles, visions and priorities of the development of science in BiH...........................58 9.1. Development principles.................................................................................................................58 9.2.Visions.............................................................................................................................................59 9.3.Priorities..........................................................................................................................................59 9.3.1.General priorities.........................................................................................................................59 9.3.2.Priorities in certain areas of science and technology...................................................................67 8. Literature...........................................................................................................................................73 9. List of abbreviations.........................................................................................................................74 1. INTRODUCTION Acknowledging the evaluation that the globalisation of the world economy, based on free movement of goods, service, work force and capital is a progressive occurrence and that it is a process which cannot be terminated; the issue of ways and mechanisms of including certain countries in this process remains an open issue, that is, the open issue is how to prevent the globalisation from becoming domination, especially in the field of transferring scientific achievements and technological development. Unlike the relatively successfully established systems of international organisations and institutions in the field of finances and trade (WTO, IMF, WB and others), with the role to remove or reduce obstacles and discriminatory actions in the free movement of goods, capital, work force and services, there are still no established mechanisms at the international level to enable the same in the globalisation of knowledge and scientific achievements. In science and the scientific-research sector, more than in any other sphere of worldwide economic relations, there is domination and exclusivity of large developed countries and a certain level of closed doors within national or closer regional levels. Even Europe is not immune to this, with its form of economic unification in the form of the European Union marking the end of the second and the beginning of the third millennium. Together with the expansion of territorial scope of the European Union, the differences in the level of development of its members states grow. According to data for 2007, differences in the level of the development of current 27 EU member states are significantly bigger than between the previous 15 member states, and vary from 7,3:1 (Luxemburg 265,9% : 36,3% Bulgaria - EU average 27). Parallel to this, the gap in the development of the remaining potential EU member countries is increasing, which is mostly related to six West Balkans countries, amongst which is Bosnia and Herzegovina. Events in the past decade stopped the economic growth of Bosnia and Herzegovina, and the worst thing is that it seriously destroyed its scientific potential being developed for decades, as well as the personnel and infrastructure. Today, with the significantly weakened economic basis, it is difficult to reconstruct the scientific-research potential and the standards and roles of science and scientific research in Europe and even our closest neighbourhood today, are difficult to adopt. Current global economic crisis is so wide that it is difficult to predict the scope of negative effects of the crisis as well as its duration, because these will be different in each country. In addition to this, there is no unified model of measures for overcoming these effects. While some countries marked a decrease of economic activities in the third quarter of 2008, some are just beginning to face this situation. While some countries apply restrictions to consumption, others seek methods for increasing the demand. It is difficult to find a set of adequate measures which could be copied and applied in BiH. In addressing the effects of the financial crisis, developed countries reacted with programs for increasing liquidity of the market, and enormous funds were allocated and planned to be “injected” into their economies. However, it seems that a joint position was reached regarding the general approach which consists of resolving the non-liquidity of the market, being the primary cause of the decrease of demand, as well as the production, exclusively by additional funds which would be given to the economy’s disposal, through different channels and forms. To that regard, recommendation is given to place science and technology into “the front lines” in combating crisis, that is, to provide support to a realistic sector aiming at the increase of innovative capacities and competitive abilities of enterprises, specifically micro, small and medium size companies, by: Securing additional funds for science and technology development; Focusing scientific research and research-development projects for the benefits of economy, strengthening public scientific research institutes and institutes at universities and their connections to the economy; Improving scientific research and technological infrastructure (equipment, devices, systems, laboratories); Increasing financial „start-up“ assistance for high-tech companies; Controlling the quality of imported goods with the assistance of laboratories of universities and institutes; Increasing the engagement of experienced expert personnel in the economy with additional co-funding of their work. With regard to BiH, the solution to the negative effects of the world economic crisis should, among other things, be searched in the accelerated development and application of science in a realistic sector with the goal of increasing innovative capacities and competitive abilities of BiH economy, that is, to take more advantage of three universal factors: appropriate investments of available funds, efficient use of existing knowledge and focusing political will to resolve problems through knowledge. BiH could become an internationally competitive country and achieve powerful economic development if it primarily has internationally competitive production and distribution of knowledge. Scientific research institutions as the key producers of knowledge and higher education institutions as the key distributors of knowledge should become key factors of the development of BiH and as such bring other institutions into the society of knowledge that the EU society wishes to become. A small country with limited resources can successfully build its prosperity only on the development of the economy based on technology and innovations. It should not limit business framework to narrow, regional aspects, but should rather think globally. In BiH higher education, scientific research and technological development (eng. RTD : Research and Technological Development) as a joint group of activities must become a state priority, with the final aim of achieving relevant norms valid for these areas in EU. The Framework Law on Bases of Scientific and Research Activities and Coordination of Domestic and International Scientific and Research Cooperation of BiH (“ Official Gazette of BiH”, no.43/09) defines that a strategy for development of science in Bosnia and Herzegovina is to be adopted and implemented for the purpose of planning and achieving strategic goals, guidelines and priorities of science and technological development of Bosnia and Herzegovina; that is, the realization of specific interest in scientific and research activities. Strategy for Development of Science in Bosnia and Herzegovina consists of basic principles, goals, directions and priorities of scientific and technological development and it gives strategic guidelines and action plan for development of scientific-research and researchdevelopment activities in Bosnia and Herzegovina for the period 2010-2015. Special emphasis is given to coordination of activities and harmonization of plans related to international scientific and research cooperation aimed at prosperous development of science and research, economy, education and culture in BiH in accordance with recommendations for development of science in Europe and worldwide. 2. GOALS OF THE STRATEGY FOR THE DEVELOPMENT OF SCIENCE IN BIH Strategy for the development of science in BiH should include a series of actions supported by the institutions of BiH, entities, cantons and Brcko District, in line with the needs and available funds. Science is the foundation of an education system, it is in constant interaction with it, and as such, they represent an inherent tandem in a successful development of society. Development of science also means the reconstruction of the economy in BiH, and therefore it is very important to intensify the scientific research in public and private sector through concrete activities. Also, one should not exclude the significance of science in the domain of culture of a society and representing BiH at the world’s civilisation chart. Apart from this Strategy, the issue of the development of science and technology was included as a special chapter in the Strategy for development of BiH 2010-2015, which is being developed parallel to this Strategy (Competitiveness – technological infrastructure / science, research, technology), where it is addressed as an important factor of the comprehensive social and economic development, as well as in other strategies at entity and other levels in BiH. The significance of the development of science and technology (S&T) in BiH is emphasized at all international forums, especially after the adoption of the document “EUBalkans countries, Action plan for S&T” 2003, as well as during all meetings and conferences involving policy makers for S&T in the countries of West Balkans and EU countries. In accordance with the aforesaid, BiH acknowledged the development of science and technology as one of its priorities. A renewed establishment of an efficient system of research and technological development of BiH includes development of a Strategy with full support of all bodies involved in its development, specifically the decision-makers at all levels of authority in its implementation phase, because this it is the only possible way to develop the „triangle“ of the prosperous future of a country: education - science – economy, with positive participation of the authorities (politics) as a catalyst. The goals of the Strategy for the development of science in BiH are: 1. To ensure a leading role of science and technology as factors of a long-term development of a country through the consensus of all decision-makers in such a way that the development of science represents a general interest; 2. Increase funds of the public and private sector in BiH for the field of science and technology at the basis of long-term and short-term defined priorities and plans; as well as ensure continuous support to innovations, transfer of technologies and commercialization and application of scientific achievements; 3. Follow-up the development of science and technology and its effects to other areas of society based on internationally recognized statistical standards; 4. More active participation of BiH researchers and institutions in the European scientific research network and European Research area (ERA); 5. Develop a new system of higher education and enable it to perform competent scientific research work, with the aim to ensure new generation of scientists and professional development of existing scientific and research personnel; 6. Structural changes in the scientific research systems, with the emphasis on cooperative and joint research of universities, scientific-research institutes and industry; that is, ensure a stronger connection of science and economy with the aim of achieving development goals; 7. Ensure access to electronic scientific databases, connecting library systems, support to strengthening local scientific magazines, establishing databases of scientists and scientific institutions; 8. Development of research infrastructure by international standards; 9. Re-investing into industrial research in a certain number of sectors. Therefore, the goals of the Strategy for the development of science in BiH are the development and building of Bosnia and Herzegovina as a new, modern society, known as „the society of knowledge“, where knowledge is the key creative force in the personal, economical, social, cultural and financial progress. 3. GENERAL INFORMATION ON THE CURRENT SITUATION IN THE SCIENTIFIC RESEARCH SECTOR IN THE EU AND WORLDWIDE At the beginning of the third millennium, in the field of science and scientific research, the united Europe is facing a wide gap in comparison with the U.S. and Japan, (a gap deeper than any other competitiveness factor at the global market) and therefore it gives special attention to this important segment. Not even the majority of „old“ EU member states (so called EU 15) has not yet reached the intensity of investments reached a long time ago by the two main competitors – U.S. and Japan. In times of the great enlargement of the EU with ten new members (in 2004) the EU 15 allocated 1,95% of the GDP for this purpose, but after the enlargement to EU 25 this percentage in 2006 decreased to 1,84% (U.S.A. 2,62%, Japan 3,20%). It is true that some EU countries, like Sweden and Finland, are already reaching high levels of research intensity (3,73 and 3,45% GDP) while others, like Germany, Denmark, Austria and France are rapidly advancing and are already high above the EU average. The third group consists of five countries with just above the half of the relevant allocations according to Lisboa Declaration1 from 2000: Belgium (1,85%), Great Britain (1,80%), Holland (1,69%), and what's very interesting, new EU members such as Slovenia (1,59%) and Czech Republic (1,54%). The fourth group, with allocations between 1,50 and 1,00% GDP includes: Luxembourg, Ireland, Spain, Estonia and Italy, and the fifth group consists of Hungary, Portugal, Lithuania, Letonia, Greece, Poland and Malta, countries which allocate from 0,50 to 1,00% of the total funds for science. The following countries are struggling with the percentage of below 0,5% GDP: Slovakia, Cyprus, Romania and Bulgaria.2 1 http//ec.europa.eu/growthandjobs/pdf/lisbon_en.pdf Countries with economies in expansion, with the average GDP growth in the period from 2000-2007 from 6-12% (China, India, Russia, South Korea, Brasil) rapidly increase the level of funds allocated for scientific research. According to data for 2006 South Korea allocated 3,23% of its GDP for scientific research, China allocated 1,42% GDP , Russia 1,08% GDP, Brasil 0,82% . 2 Obviously, until 2010 the goal that all EU member states provide 3,0% GDP for science and scientific research, for most of its members is impossible to reach, and therefore impossible for the EU 27, in average. It is true that reaching the goal of the 3% of the GDP (foreseen at the Lisboa Conference in 2000) is not expected from the EU 27 member states with a significantly lower level of development and a lower intensity of scientific research in comparison with the average of the EU, but what is expected is the fastest possible dynamics of the growth and the level of allocated funds which would not decrease the total average of the EU. In the period 2001-2006 the funds for scientific research activities grew at a high rate of 3,6% and in 2006 the EU provided approx. 213 billion Euro for scientific research, and three fifths (60,8%) of that amount were provided by the economically strongest member states Germany, France and U.K., almost one fifth (22,3%) provided by the group consisted of Italy, Spain, Sweden and Netherlands, and the remaining twenty members provided approx. a little over 1/5 (16,3%) of the total funds for scientific research activities. In 2006, there were approx. 2,25 million workers in scientific research organisations of 27 EU member states, working full hours or 1,45% of the total employment rate of the EU. Even here, the seven developed EU member states (Germany, France, Great Britain, Italy, Spain, Netherlands and Sweden) represent more than 3/4 (76,1%) of the total employed in scientific research area in the EU. Chart 3.1. Intensity of scientific research activities Employees of the scientific research sector participate with approx. 3/5 of the total employees of the scientific research activities, and to that regard there are no great differences in the old and new (developed and less developed) EU member states. However, there are large differences in the total number of employees and the number of researchers per a million citizens. So, for example, in Finland, there are approx. 11 000 employees to a million citizens, and approx. 8 000 researchers in scientific research organisations, and in Romania, only 1.400 employees and approx. 1000 researchers, and the ratio of these two countries, is approx. 8:1. However, far more unfavourable ratios are those based on the financial allocations. For example, in Sweden, approx. 1.250 EUR was allocated per one million citizens, and in Bulgaria only 16 EUR (78:1). Even more unfavourable ratio is in funds allocated per researcher, because in Sweden an average of approx. 210 000 EUR is allocated per researcher, and only 12 000 in Bulgaria (17,5:1). Another strategic goal of the Lisboa Declaration (the so-called Strategy for scientific research sector development in the EU) is participation of business sector (entrepreneurial sector) with 2/3 in funding scientific research sector. According to data for 2006, participation of 63% was achieved in the EU 27 (U.S.A. – 72,5%, Japan – 77,2%). Business sector participation higher than 2/3 for scientific research sector was achieved in 9 countries (Luxembourg 85%, Czech Republic 66%), 8 of them are within the ratio 66-50% (France 63%, Italy 50%), while the remaining 10 members' business sector contribution ranges from 50-20% (Romania 48%, Cyprus 22%) – chart 3.2. Chart 3.2. Sources of funding-structure During this year, scientific research sector and production companies of the EU 27 had 53,3% employees of the total scientific research sector employees, in state-funded institutions - 15,3% and higher education scientific research units had 30,2%. Women represent almost 1/3 of the total employees of this EU sector. In all old EU member states, higher education is the second major source of funding in scientific research sector, and in the new EU member states this is the case in three Baltic countries and Poland. In comparison with funding within higher education programs, direct state investments to scientific research organisations is still given priority in Slovenia, Slovakia, Romania and Bulgaria The fact that mechanisms of self-regulation have not been established even within the EU and that there is no full market conditions for the level of investing into scientific research sector is presented in the structure of the sources of funding. Namely, in the EU, state funds represent 13,5% of the total funds, U.S.- 11,1% and Japan 8,3%. To that regard, the following European countries have made significant progress - Austria (5,1%), Denmark (6,7%), Ireland (6,3%), Belgium (8,6%) and Finland (9,4%), but not the two strongest countries in the field of scientific research - Germany (13,9%) and France (17,2%). For the new EU member states, investments into scientific research sector by the state are very important, ranging from 15,2% (Lethonia) to 37,0% (Poland). Relative global indicators of investments into the scientific research sector, such as: percentage of allocated funds of the GDP for scientific research area, structure of investments and numbers of employees - show the intensiveness of the scientific research activities, but do not show the real ratio of the powers in this field. So, for instance, the three largest and most developed EU member states (Germany, France, Great Britain) represent approx. two thirds of the total funds for scientific research. Four member states (Germany, France, Spain and Netherlands) represent more than a half of the total number of EU scientific research employees. The real „ratio of powers“ shows allocations for scientific research per capita, and it indicates that in 2006, EU 27 made an average allocation of approx. 440 EUR per capita for scientific research, and these figures range from 1.307 EUR per capita in Sweden, to 48 EUR per capita in Romania. Therefore, the ratio is 27,2:1, that is, funds for scientific research in Sweden represent 297% of the EU average, and in Romania only 11% of that average – chart 3.3. Chart 3.3. EU 27: Investments into scientific research per capita in 2006 Special importance for the development of research and science in late XX and early XXI century was given to information and communication technologies (ICT), based on which this is often called the „information era“ characterized by all types of information and communication connecting and networking. Special interest for the development of science and research is presented in the so called research and academic computer networks (REN - Academic and Research Network). Research and academic networks are: Networks dedicated to connecting research and academic institutions and users; Support to the conceptual development of the research and development sector as well as assistance to the community in fulfilling its tasks; Ensuring of available and efficient services; Regulating clear (strict) user and development policies. REN is significant for the: Coordination of economy and services (research); Ensure leading research services; Encouraging the development of networking for the benefit of the research and development sector institutions and the society. For the purposes of education and research (science) several global academic-research networks were developed and are being used. So called GÉANT computer network is the most significant one for BiH of which the. GEANT is a Pan-European multi-gigabyte academic computer network with branches connected with 155 Mbit/s to 10 Gbit/s (chart 3.4). Project GÉANT was initiated in 2000 as a part of the European Commission Fifth Framework Program. The successor of project GÉANT is project GÉANT2. Today, GÉANT connects 34 countries (30 collaborative national RENs plus 4 additional countries which are not official partners). Chart 3.4 GEANT network European scheme GÉANT2 NREN development support includes: Support to national networks (NRENs), regional and local research-education (Research and Education - R&E) networks in less developed countries; Increase of inclusion and less divisions; Better understanding and defining the status of R&E networking in less developed countries as well as creating new opportunities; transfer of knowledge to technical, managerial and strategic areas of decision-making. As part of the GEANT project, SEEREN2 segment was also developed, with a mission to: create a new generation of GÉANT segments in South East Europe; overcome the “digital division”, that is, the delay in the development and using of the computer network infrastructure, which still exists amongst the majority of SE European countries and the remaining European countries; assist in establishing and incubating national networks (NREN – National REN) for a full inclusion to the European Research area (ERA) and integrating with other organisations, initiatives and networks (TERENA, CEENet, e-IRG, EUGridPMA, etc.) The initiative of SEEREN 2 program, in which BiH is included (chart 3.5 and 3.6), is to establish and consolidate networks and services in the Pan-European e-infrastructure and national networks (NREN), with the final goal of using the networks in the ERA development programs (European Research Area), and maximum regional networking as one of the key factors of European integrations in the field of research and education. SEEREN2 assisted in creating the new generation of the research-education computer network of SEE, as an integral part of the GÉANT European network. Chart 3.5. E-infrastructure of SE Europe countries Pic 3.6 Proposed e-infrastructure for BiH Overcoming digital division, that is, the shortening of the delay in reaching developed countries in using information science and information infrastructure, is very important for the further development of science, education and research in BiH, for the following reasons: Digital division, i.e. information infrastructure delay in development, leads to insufficient or poor quality of connection and access to important information points in the world for any person who wishes to use the exchange of all types of information (data, text, pictures, voice, etc.); Networking with optical cables is rapidly increasing, which results in exchange of large quantities of data in real time, which is of great importance for modern research methods; Very demanding scientific applications require highly developed and fast communication infrastructure (high bandwidth infrastructure) for connecting servers into a joint network with the goal of mutual distribution of duties (GRID infrastructure); Research networks are mostly developed at the national level, but currently they are used more in the international information traffic and as such they are increasingly jointly planned, developed, maintained and managed; Developed countries worldwide use this system to a maximum, and build new computer networks, while on the other hand, undeveloped, which represent almost 4/5 of the world's population have no access to these networks and do not use the Internet. 4. CURRENT SITUATION IN SCIENCE IN BIH In the former Federal Yugoslavia and all its republics great importance was given to scientific research, in independent scientific institutes, educational institutes and specialized scientific research units of companies. More than one percent of the total GDP was allocated for this purpose, and in the example of Slovenia one can see how much this inherited scientific research potential helped this new country to provide the current 1,63% of the GDP for science, which brings it to the top EU countries concerning the scientific research activities. During 1990, more than one percent of the GDP (totalling approx. 8,7 million EUR) was allocated for science in BiH, resulting in approx. 87 million EUR being allocated for scientific research (or 170 million KM/BAM), according to the prices at the time. Thanks to such financial conditions, a solid personnel and other scientific research infrastructure was established in BiH. During the war, and due to the post-war events, numerous scientific research unites were destroyed or seriously damaged, and those units within companies (large business systems) practically disappeared. Some industrial institutes, affirmed even outside of BiH (Energoinvest, RMK, UNIS, R.Čajavec, Jelšingrad, AIPK, FAMOS, Soko, INCEL etc.), were already at the level of selling their licences and technologies. Having in mind that this situation has been ongoing for ten or more years, it is clear that there are no realistic opportunities to revive the previous export-oriented programs and technologies, and especially no realistic chances to revive scientific institutions in these fields. On the other hand, the expansion of higher education institutions is in progress, especially in the area of economy and management, accompanied by certain reductions, often without adequate personnel basis. This leads to the withdrawal of a very few remaining staff from the scientific research institutions as well as reduced number of interested young people for working in the scientific research and reduced number of specializations in this field. There is irony in the fact that at sites and facilities previously functioning as very powerful institutes and technically and personnel-wise well-equipped centres, faculties and even entire universities are being opened today, with program contents which are not related to material production, because they produce personnel which will have great difficulties in finding a job. Research and development sector was exempt from reconstruction after 1995. Dayton Peace Accord defined the competencies of all levels of authority in BiH. Unfortunately, the terms „science“, „research“, „technological development“ are not defined within competencies of any of the levels of authority. At the same time, significant funding of scientific research projects in BiH was terminated. OECD norm3 requiring that every university lecturer is a professor who spends half of the working hours (so called. FTE - Full Time Equivalent) as educator (teacher, professor, assistant), and the second half of working hours as a researcher, is met with only 3% in BiH.4 Insufficient number of students in BiH, specifically at the natural sciences-mathematics and technical-technological faculties (data and estimates show that they represent only approx. 16% of the total number of students in BiH), make a fragile basis for recruiting research-development personnel. Unfortunately, there are no, or there are few research-development centres in companies, while approx. 60 % of the total number of researchers are present in such centres in EU countries. Therefore, insufficient efforts are made in BiH in developing new products, added value products and services. As a result, the competitiveness of companies, which are the bearers of the country’s competitiveness, is at a very low level. EU already reached the 1,9% GDP in research and development, with a plan to reach 3% in 20105 In BiH statistics do not follow up this area, and UNESCO addressed its notice regarding the difficult situation in the research and development sector in BiH to the authorities in 2005. Since the budgets are approx. 50% of the GDP in BiH, the current norm of the size of 2/3 of the European norm, i.e. the 2% of the GDP is 4% of the budget6. Having in mind that three levels of authority have fiscal rights in BiH, it is understandable (and proposed by UNESCO) that each level should participate in funding the research-development sector in accordance with the fiscal capacities (see table IV-1). Table IV-1: Funds allocated for research and development, BiH 2007 3 OECD/GD (94) 84 Frascatti Manual. Budget based on BH Universities Annual reports for 2004. 5 The Lisboa Agenda, 2000.EURACTIV. Com. Aug. 2004. 6 2% of the budget is close to the 1% of the GDP, which is the achieved state participation in funding research and development sector in 1990. 4 Fiscal entity Fiscal capacity (in %) Budget (bill. KM) 2 % (mill KM) Achieved (mill. KM) Achieved (in %) CoM BiH 14,6 750,1 15,0 0 0 FBiH and cantonal governments 55,1 2.831,2 56,6 9,8 17,3 RS Gov. 26,2 1.349,4 27,0 4,6 17,0 Brcko dist rict 4,1 208,9 4,2 0 0 (Source: DEP budget) Competitiveness of BiH in the field of information-telecommunications technologies, which should represent the basic infrastructure in transition towards a country with high revenue, is low. According to NRI (networking readiness index), BiH was ranked 89th country in 2005 (of the total of 104 countries), in 2006 it was ranked 97th (out of 115 countries) and in 2007 it was ranked 89th. The position of science and scientific research organisations in BiH is illustrated in the fact that until now not a single basic inventory of the available capacities was conducted, of their legal status, number of personnel employed, methods of funding and technical equipment. Independent scientific research organisations are still left on their own; some are subject to the privatisation process without prior review of the needs for maintaining a certain public status. The higher education institutions tide produced certain lobby behaviours which are not in favour of specialized scientific research institutions. Currently, one of the most obvious indicators of inferiority of the scientific research sector in comparison with the environment is very limited presence of domestic scientists at international scientific meetings, their insignificant presence in periodical scientific literature (index magazines), as well as impossibility to organise large scientific meetings in our community, modest or no publications, lack of magazines and periodical publications and above all, very insignificant interest of young people for post-graduate studies and doctorate research (doctor studies in the future) and work in the scientific research sector. Neglect of the scientific research sector is also seen in the fact that statistically not a single relevant parameter is being followed and that BiH is present almost nowhere in international statistical publications relevant to science and research. Briefly, the scientific research sector in BiH can be characterized today by: Lack of trained and accredited institutions for scientific research work and small number of researchers; Low level and inadequate structure of funding sources – total funds for financing science are below 0,1% GDP, and the state participated with over 80% in it, business sector approx. 10% and educational institutions and other below 10%; Low mobility of researchers and their large concentration in entity centres; Low competitiveness of scientific publications in number and quality; Low level of transformation of scientific research into innovations and products of high-quality added value; Very poor statistical data on scientific research results by relevant international standards, etc. 4.1 Country profile Bosnia and Herzegovina is a country consisted of two entities: Republika Srpska (RS) and the Federation of Bosnia and Herzegovina (FBiH). FBiH is an administrative unit with 10 cantons. District Brčko (DB) is a special administrative unit. The territory of BiH is approx. 51.209,2 km² (land 51.197 km² and sea 12,2 km²). The number of inhabitants is approx. 3,8 million (3.842.942 according to the estimate dated 30 June 2007). Almost a decade and a half after the signing of the Dayton Peace Agreement, the social and economic situation in BiH is still unsatisfactory. Although the primary infrastructure was mostly reconstructed, many of the infrastructure facilities are still in a bad condition. In 2004, national product of BiH (8 billion EUR) represented 56% of the pre-war level, while, according to official data, the unemployment rate remained at a very high level (40% of the active population) out of which approx. 20% of the population lives below the poverty line. BiH also has a large trade deficit since export covers only 41% of import (in 2008), and the savings rate in the country is low. However, the picture of the country is not entirely black: - inflation is put under control and remains at a low level, which contributes to the maintenance of monetary stability, - taxation reform was adopted and it is applied since 2006 (value added tax was introduced). Numerous economical reforms were initiated and industrial production was growing until 2009. Development of BiH is facing difficulties, which should not be surprising in these conditions. According to some surveys, 60% of young people see their future abroad and not in their own country. In the text to follow, some of the main statistical data on BiH are presented, which are relevant for the review of the current situation in the scientific research sector and the effects of science and research to the overall situation in the country. Table IV-2. General information on BiH 2003 14.505 2004 15.786 2005 16.927 2006 19.121 2007 21.641 GDP per capita/habitant in KM 3.785 4.109 4.405 4.976 5.633 GDP, mil.USD 8.367 10.020 10.762 12.262 15.139 GDP per capita in USD 2.184 2.608 2.801 3.191 3.940 3.832 1,7335 3.842 1,5755 3.843 1,5728 3.843 1,5594 3.842 1,4295 9.689 4.430 386 10.321 5.008 456 10.831 5.617 480 12.146 6.499 476 13.735 7.357 548 66,80 30,54 2,66 65,38 31,72 2,89 63,99 33,18 2,84 63,52 33,99 2,49 63,47 34,00 2,53 GDP in BiH, current prices GDP, mill.KM Population, estimate, in thousands Average annual exchange rate USD/ KM GDP in entities (mil. KM) GDP for the Federation BiH GDP for Republika Srpska GDP for Brčko District Participation of entities in the GDP of BiH - in % GDP for the Federation BiH GDP for Republika Srpska GDP for Brčko District Source: BiH Statistics Agency, production approach- initial results, Sarajevo, July 2008. Table IV-3. Work-capable population according to highest education level Work-capable population according to highest education level 2007, structure in % BiH 47,6 45,9 6,5 2.725 Primary school education and less Secondary school College, university, masters or doctorate Total (in thousands) * FBiH 46,7 46,7 6,6 1.708 RS 48,7 45,1 6,3 969 BD 57,3 36,4 6,4* 48 data is less reliable due to a small sample/matrix Source: BiH Statistics Agency, Bosnia and Herzegovina in figures 2008 Table IV-4. Export and import BiH from 2003-2008 in thousands KM Import Export Balance 2003 8365183 2004 9422969 2005 11180797 2006 11388783 2007 13898242 2008 16287044 Source: BiH Statistics Agency 2428234 3012763 3783199 5164295 5936583 6714302 -5936949 -6410206 -7397598 -6224488 -7961659 -9572742 Covered 29,03% 31,97% 33,84% 45,35% 42,71% 41,22% In November 2005, Bosnia and Herzegovina initiated negotiations on accessing the EU. One part of the political and economical reform processes have already been completed, which improved the business climate in the country and contributed that today BiH has an economy in development. Until 2009, BiH economy was developing with an average of 5% annually since 2000, which represents a trend for which it is expected to be continued in the future, although international financial organisations predict there will be a significant delay in the future period due to negative effects of the world economic crisis. This annual growth of the GDP, combined with the increase of the level of productivity and export, indicates that BiH economy was in expansion during this period. Almost 62% of the GDP comes from the service sector, 29% from industry and 9% from agriculture. However, together with the positive indicators one must take into consideration the negative effects such as the World Bank Report on the simplicity of business, for this year, as well as for the previous three years, indicates a further fall/decrease. This is a matter of concern, especially because the region of SE Europe (SEE the so called “waiting room” to the EU) is improving year after year. So for instance, two years ago, the average ranking of the region was for 1 level lower than in BiH, while in 2008 the region reached the average ranking level which is 23 steps above BiH. According to World Economic Forum data, BiH is at the last position in the development of economy among SE Europe countries (which are not EU members) and Central Asia. During the determination of the ranking positions, numerous parameters were taken into consideration, such as: level of information, innovation level, development of science and technology, liberalization, connection of industry, entrepreneurship, sustainable development, etc. Table IV-5. Economic and developmental status of Bosnia and Herzegovina in comparison to the non-EU member countries and Central Asia Innovations, science and development Country Ranking Sum Ranking Sum Croatia 1 4,10 3 3,41 Montenegro 2 3,96 7 3,15 Azerbaijan 3 3,88 6 3,24 Turkey 4 3,82 5 3,25 Russian Federation 5 3,82 2 3,62 Kazahstan 6 3,70 4 3,33 Ukraine 7 3,69 1 3,66 Georgia 8 3,66 9 2,90 Macedonia 9 3,53 12 2,78 Moldova 10 3,50 10 2,82 Serbia 11 3,44 8 3,00 Tajikistan 12 3,35 13 2,73 Armenia 13 3,29 11 2,79 Kirghiz Republic 14 3,23 14 2,72 Albania 15 3,12 16 2,37 Bosnia and Herzegovina 16 3,12 15 2,43 Source: The Lisboa Review 2008 © 2008 World Economic Forum; http://www.weforum.org/en/initiatives/gcp/Lisbon Review/index.htm Final index Based on the GCI (Global Competitiveness Index), among 132 reviewed countries worldwide, the competitiveness of BiH was ranked as very low (table IV-6. and pic. 4.1). GCI give a holistic review of the critical factors defining productivity and competitiveness of countries within the 13 pillars of competitiveness group (institutions, infrastructure, macro economy, health care and primary education, higher education and specialized education, goods market efficiency, labour market efficiency, sophistication and financial market, technological readiness, market size, business sophistication and innovations capacity). Table IV-6. Global competitiveness index of BiH with sub-indexes and pillars of competitiveness with their ranking in the past 4 years Chart 4.1. G Bosnia and Herzegovina wil Chart 4.1. GCI rank position of BiH with rank by sub-index and pilllars of competitiveness in the past 3 years There is a special concern due to the fact that there was a fall/decrease in the factor of innovations capacities and sophistication level in the past four years, as well as a fall in efficiency intensifiers. Such a series of events could be very dangerous to the total future competitiveness of the country. 4.2. Bosnia and Herzegovina and the European Union One of the strategic priorities of BiH is to “take measures towards European and Trans-Atlantic integrations, aiming at the improvement and institutionalization of mutual cooperation”7. On that path towards inclusion of BiH into the European integration process, it is also necessary to build roads towards other parts of the Union and its policies, thus finding one's own place in the European higher education area (EHEA) and the European Research Area (ERA). This chapter will present a brief chronological overview of the activities and instruments of assistance to BiH accession to the EU: - Process of stabilisation and association (Stabilisation and Association Process- SAP) in May 1999 offered a clear opportunity of integrating BiH as well as the other four countries of the region into EU structures. - In June 1999 the Stability Pact was agreed upon, which is a political document with a strategic aim – stabilisation in SE Europe through the way of bringing together countries in the region to the Euro-Atlantic integrations and strengthening regional cooperation. - In July 1999, the Summit of the Heads of States and Governments of Europe, Canada, Japan and U.S. took place in Sarajevo, during which the Stability Pact was officially supported and established. - In March 2000 the EU Road Map was published. This document established 18 key requirements which must be met by BiH in order to commence with the development of the Feasibility Study for initiation of the negotiations on stabilisation and association. - In 2000 the customs-free access of BiH products to the EU market took place. - European Commission represents the EU assistance program for the reconstruction, development and stabilisation – CARDS in December 2000. This program of technical assistance of the EU was planned for Albania, BiH, Federal Republic of Yugoslavia, Croatia and Macedonia with the aim of their further economic development. - In December 2002 the EC stated that the guidelines of the BiH Road Map towards the EU were mainly fulfilled. - EC adopted the proposed Report on the readiness of BiH to commence the negotiations on the Agreement on stabilisation and association with the EU in November 2003. - In March 2004, the EU decides for the first European partnership with BiH, and in November 2005 the first official negotiations on the Agreement on stabilisation and association took place in Sarajevo. 7 BiH Presidency. General Guidelines and priorities for the foreign policy of Bosnia and Herzegovina Available at: <http://www.predsjednistvobih.ba/vanj/?cid=3585&lang=en> - In January 2007 the Instrument for Pre-Accession assistance was established, which replaced the CARDS program, planned for all pre-accession activities, funded by the EC. In November 2007 the technical negotiations on the Agreement were completed. - Agreement on stabilisation and accession of BiH was initiated in December 2007. - Framework Agreement on the rules of cooperation for the implementation of the financial support of the EC to BiH within the Instrument for the Pre-Accession Assistance was signed in February 2008. - On 16 June 2008, the SAA was signed along with the Provisional Agreement focusing on trade and other competencies related to the Union. The Provisional Agreement entered into force on 01 July 2008. Since late 1995, BiH received assistance from the following programs: PHARE, OBNOVA and CARDS. Through IPA funds, the EU will continue to support activities in BiH in implementing reforms and development strategies in accordance with the requirements for the integration into EU. It is expected that significant funds from the IPA funds will be allocated to the area of science and research. The purpose of EU assistance to BiH is harmonized with the EU Enlargement Strategy, conclusions from the Progress Report for 2007 and European Partnership recommendations and in accordance with the BiH development strategy and EU Integration Strategy. The primary strategic goal of the pre-accession assistance to BiH is the assistance by which the state is supported during the transition from the status of a potential candidate to the candidate status, until full membership in the EU. IPA funds will provide BiH with the support in meeting the criteria for the membership preparation. It is very important for BiH to achieve its further macro-economic stability, reduce public consumption, ensure a better business environment, reform the education system, labour market and reduce the unemployment rate. State-candidate wishing to become a member, should reach political and economic criteria for full membership. The membership includes the ability of a country to assume responsibility it implies, including the adoption of the goals of political, economic and monetary union. Lisboa Strategy – 2000 focuses on economic and social issues, while political aspects are less important. Lisboa agenda aims to make the EU economy more competitive and based more on knowledge, through promoting sustainable development and social cohesion. Its goals are relevant to BiH. In June 2003, the EU Thessaloniki Summit on West Balkans reinforced the EU support to the European perspective of the West Balkans countries. EU confirmed the European perspectives for the West Balkans countries, and decided to strengthen the Stabilization and Association process by introducing new initiatives and support programs. On that occasion, inter alia, the so called „Action plan on science and technology for the countries of West Balkans“ was initiated, by which accelerated procedure assistance is provided for these countries, for the purpose of meeting necessary requirements, potentials and capacities for integration into scientific research activities of the EU, full participation in ERA, Framework and other EU Programs. RTD Action Plan, developed by the member states, after the Thessaloniki Summit, with West Balkans states-candidates, identified methods of scientific research contributing to the economic growth and strengthening integrations, and how important it is for a better integration of the West Balkans into the European Research Area. From 2002 to 2005, participation of approx. 120 members from the West Balkans was recorded (research units and institutions) in 51 projects within the FP6. Joint research centre has trained hundreds of experts from the West Balkans in the past few years, in its workshops and courses, and it started including West Balkans organisations into European research networks and projects. EU plans to continue and strengthen its activities for the welfare of the scientific research community in the West Balkans within the Seventh Framework Program (2007-2013). Current fruitful cooperation of the JRC and West Balkans countries is continued. The Commission shall also examine methods of enabling the scientific research community of this region to use this potential, and could also provide support to strengthening capacities of the so called „centres of excellence“ in the region. BiH as a country determined for Euro-Atlantic integrations and EU membership, should develop its strategic documents in accordance with the recommendations and guidelines of the Lisboa Strategy. Having in mind the different positions of each country, selecting priorities according the Lisboa Strategy and defining its own time frame for their implementation will depend from one country to another. In this regard, elaboration of the plan for reaching the 3% of the total GDP for research and development, with the appropriate measures, should be accompanied by adequate development of comparative statistics in order to collect and follow-up both quality and quantity indicators which would also correspond to the EUROSTAT indicators. Surely, in accordance with the above-mentioned, science and research as well as adopting of the Strategy for the development of science in BiH represent one the priorities in accordance with the document – European Partnership of the EU and BiH. 4.3 Funding of science research activities In legal and organizational sense, the science research activity falls under the competencies of entities and has been regulated by separate entity laws. More organized approach to the science development in Republika Srpska (RS) started with the establishment of the Ministry of Science and Technology in 2003. Budget allocations for the science research activity and technological development in RS have been gradually increasing. However, allocated 6.5 million KM (for science and technology) in 2008 does not account for even 0.5 of the total RS budget, i.e. less than 0.1% of gross domestic product (GDP) in 2008. The science research activity is even at less favourable level in the Federation of Bosnia and Herzegovina (FBiH) or cantonal level, because there are no separate ministries for science and research both on the level of FBiH and cantons. Both on Federation and cantonal level, the science research activity is within the ministries for education and science. Depending on a concentration of hereditary and somewhat preserved science research institutions and staff, their minimum essential needs are being maintained but without any clear strategy and concepts for further development. In Sarajevo Canton, the host of majority of science research potential – staff and infrastructure – one can see an effort to continuously provide at least the minimum funds for this purpose within the budget. Certain funds, proportionate to the real financial strength of the cantons, are also being allocated for science in Tuzla Canton and Zenica-Doboj Canton. In total, at all levels in the FBiH, allocated funds for the science research activity and technological development are lower than 0.1% of GDP which, according to the estimate, amounts to 15.7 billion KM in the FBiH in 2008. During the last five years. GDP of BiH has grown under high average rate of 6.0%. It is higher than regional average and almost 3-fold higher than that of EU 27 average. However, even with this high grow rates, in 2008 Bosnia and Herzegovina was only at the level of around 76% of GDP from 1999 and only 12.8% of the average GDP per capita in EU 27, with only Albania below that level. Due to real incomparability of prices in transitional countries with prices in economically stable countries, vacillations of world leading currencies, emerging of new states, introduction of new currencies (national and transnational like e.g. euro) and especially, due to deeply rooted grey economy in transitional countries, comparison of basic macroeconomic indicators on the basis of official exchange rate, most common with US dollar, became unreliable, almost unusable. Therefore, a parameter was introduced in the official statistics – GDP at purchasing power per capita in a country expressed in so called international dollars. Differences in values of GDP under two methodological criteria are huge, especially in less developed countries. Thus, for example, GDP per capita in BiH in 2008, calculated pursuant to the official exchange course of KM and USD, is only 12.8% of average GDP per capita in EU 27 or almost 6 times lower than GDP per capita in Slovenia (72.9% :12.8%). However, according to the estimate of IMF (World Economic Outlook, October 2008) for the same year, GDP per capita in Bosnia and Herzegovina at purchasing power was 24.6% of average in EU 27 (FBiH 25.0% and RS 23.8%), i.e. “only” 3.8 times lower than Slovenian (93.3% EU 27). We point out the statistical disproportions because GDP at purchasing power is being used in the comparison of fund allocation for the science research activity in EU 278. If we take this into consideration, meaning that the GDP in BiH at purchasing power is 57.1% (RS 66.3% and FBiH 51.3%) higher than the one calculated with official exchange rate, we come to the appalling data on fund allocation for the science from GDP, i.e. the fund allocation in such a case does not exceed 0.07%. Funding of the science research activity and technological development in Bosnia and Herzegovina takes place at several levels. At the state level, only Ministry for Civil Affairs allocates funds fro this purpose and their call for bids is intended for all scientists and science and research institutions of BiH. Up-to-date, the funds were modest but induced positive atmosphere in the science research academia in BiH. According to IMF estimate for 2008 (World Economic outlook, October 2008) GDP per capita in EU 27 calculated per official rate for euro vs. dollar was 5.7% of GDP at purchasing power (in Austria -7.6%, Denmark -29.4%, Ireland -22.3%), while in new member states, transitional countries, GDP at purchasing power was significantly lower that the one estimated at purchasing power (Check Republic +60.5%, Estonia 53.8%, Poland +66.2%, Slovenia 31.4% etc). 8 Around 0.07%-0.1% of GDP is being allocated for the development of science and technology in both BiH entities. Competent entity ministries supported the co-funding of following programs: Programs of ground, applied and developmental researches. Programs of training and in-service training and encouraging young talented people for the science and research activity (postgraduate and PhD studies, drafting of master and PhD papers). Programs of publishing scientific publications and journals. Programs of international scientific cooperation and attendance to scientific congresses abroad. Programs of providing equipment and conditions for the science research activity. Incentive programs for activities of scientific and professional association. Organization of scientific manifestation. Subscription to electronic scientific data bases and buy-up of scientific literature. Operations of the RS Council for science and work of expert commission. Support to higher educational and scientific institutions. Participation in scientific manifestations. Figure 4.2 depicts the percentage of allocated funds from RS budget in 2008 according to the aforementioned program activities vs. funds for the development of science and research activity totalling 4.7 million KM. Figure 4.2 Percentage of approved funds per program activity for development of science and research activity in RS in 2008. Besides the funds for science, RS also allocated 1.35 million KM for technology development in 2008 (innovators, gatherings, development projects for new technologies etc) as well as 0.41 million KM for development of information society. On the basis of the aforementioned, it is clear that during 2008 RS allocated total of 6.46 million KM for science and technological development from its budget, which amounts to app. 0.07% of GDP (estimated GDP in RS in 2008 is app. 8,45 billion KM). The estimate is that maximum around 50% additional funds are being allocated in RS compared to budget funds (as well as in the whole BiH from various other sources – economy, other ministries, education and foreign sources), thus total invested funds in science and technological development amount to around 0.1% of GDP in RS. This estimate does not include salaries of researchers employed in educational institutions, institutes, companies etc. since it is impossible to obtain such data. Table IV-7 depicts investment in research and technological development (RTD) from the RS budget for the previous 8 years. Data for GDP from 2000-2007 pertain to BDP9 per current prices according to data from RS Statistics Institute. Table IV-7. Budget allocation for RTD in RS Year 2000. 2001. 2002. 2003. 2004. 2005 2006. 2007. 2008. GDP mil.KM 3,317 3,617 4,126 4,430 5,008 5,617 6,499 7,357 8,450 RTD mil. KM 0.8 0.8 1 1 1.8 3.1 3.1 4.59 6.46 Having in mind other possible investments by other subjects, besides direct investments from the RS budget, we can tentatively say that fund allocations for RTD in RS in 2008 were around 0.1% of GDP. As opposed to RS, where funds allocated for RTD can be easily tracked, situation in FBiH is significantly different. Constitutional solution provide for cantonal level competencies in the area of science and research, mainly ministries of education; while at the Federation level, there is the competent ministry that only coordinates education and science and has no executive power. Despite the aforesaid, we note certain fund allocations of this Ministry for science research work growing per year: 3,302,000.00 KM in 2007, 5,336,800.00 KM in 2008. Funds allocated in 2008: for science research projects – 940,000.00 KM, for reconstruction and equipping for the science research work, support to high education and scientific institutions - 2,565,000.00 KM; publishing reference journals 54,000.00 KM; 9 Report “Gross domestic product”, Bulletin no 1, 2009), and data for 2008 is taken from the „Economic policy of RS for 2009“ of the RS Government. Data for the allocation percentage from GDP for the RTD development were obtained on the basis of information from the RS Ministry of Science and Technology. research of significance for the Federation of BiH - 110,730.00 KM; buy up of scientific literature – 122,200.00 KM; organization of scientific manifestation – 329,170.00 KM; participation in scientific manifestations – 48,459.80 KM. It is certain that this data is not complete when it comes to funds allocated for the science, since other ministries of the FBiH Government also allocate funds that can be put under budget item – allocations for RTD, first and foremost the Ministry of Agriculture, Ministry of Crafts, Development and Entrepreneurship, Ministry of Tourism, Ministry of Economy etc. It is estimated that these ministries allocate twice as much than a competent ministry of science and education. The Strategy already indicated that the allocations for RTD exits on cantonal level as well, and in that sense Sarajevo Canton has the leading role, while Tuzla and Zenica-Doboj Canton also allocate substantial funds often found under other budgetary items. Fund allocations of local communities are impossible to track. On the basis of the aforesaid, it can be estimated that budget allocation for RTD at the level of the FBiH and cantons are around 8-10 million KM. Due to lack of possibility to identify real fund allocations for RTD in both entities and Brčko District, especially occasional allocations from local communities (various studies and strategies in different areas) and enterprises, as well as researches funded by the foreign donors, we started from the optimistic assumption that total fund allocations, including all sources, are around 0.1% of gross domestic product per official exchange rate for KM (euro or dollar). We also started from the assumption that all research-development tasks and projects were implemented by local science research institutions or individuals, although it is a known fact that that many projects, even the ones not funded by donations, were entrusted to foreign institutions or experts; and sometimes, engaging foreign experts was the condition to receive donation. In accordance with the assumption that both entities do not allocate funds for RTD higher than 0.1 of GDP on all grounds, we come to the indicator that no more than 6 KM (3,1€) per capita was allocated in 2008. This amount is insignificant compared to average allocations for RTD in EU 27, where 427 € per capita was allocated in 2006. For example, in Finland, the allocation is 1,094 € per capita, Slovenia 242 € down to the lowest ranking Bulgaria with 16 € per capita. This low level of allocation in BiH and discrepancies in allocation with regards to new EU state members cannot be justified with low economic basis, i.e. low gross domestic product. Surely, gross domestic product per capita in BiH (at purchasing power) is somewhere at the level of 2/3 of Bulgarian GDP per capita but then gross and net salaries in Bosnia and Herzegovina are higher than in Bulgaria whereas RTD fund allocations per capita are five times lower. With estimated volume of allocation in 2008, and having in mind the work price both in total and for this type of activity, it emerges that the said funds can only cover 454 employees or around 272 researchers working full time regardless where they work. That is only 155 employees in RTD per million inhabitants versus 4,563 in EU 27 (e.g. Finland 11,063, Slovenia – 4,870, Romania – 1,423, Bulgaria – 2,212). Employees in RTD area of work in BiH account for only 0.07% of total employment and on EU 27 level it is 1.12% (e.g. Finland 2.44%, Austria 1.53%, Croatia 0.6%, Bulgaria 0.5%). 4.4 State of infrastructure and institutions in area of science Numerous studies on the state of science research work and technology in BiH, conducted by local and foreign institutions, came to identical conclusion that the research development infrastructure in BiH is not on satisfactory level. Before 1992, research and development activities were primarily carried out within large-scale industry systems and their respective research departments and somewhat at the higher education institutions (mostly in some technical faculties). During the war, large portion of industrial capacities has been destroyed including research and development infrastructure, while the untouched portion of the equipment became mostly outdated for any serious science research work. After the war, the research and development sector remained the only unreconstructed portion of social area, while e.g. health system exceeded its pre-war level in terms of scope and structure and shows development trends in some areas. The largest portion of today’s research and development infrastructure is at public universities where most all of the science research work in BiH is being done. In most cases, both public and private science research and research development institutes do not meet necessary material and technical requirements and have no staff trained to perform registered tasks. i.e. do not work on development of new products and technologies but deal with vocational and routine operations, which is understandable if it is known that import is covered with export only by 40%. Almost all science research and development institutes that significantly contributed to the BiH technological development have vanished. Most of them were destroyed during the war and remaining ones perform routine operations. The key issue for most of the remaining institutes is a problematic staff structure that does not provide for serious research and development activity. Modernization and empowering of institutes for a competent research and development activity is a complex and hard process. Research equipment is nowadays mostly purchased without common plan and general strategy that would strive for centres of excellence, so the problems of unadjusted, outdated and unstandardized equipment keep growing. New laws on public procurement made it very complicated for equipment to be purchased leading to choosing the cheapest options, while compatibility and quality as more important characteristics have been ignored for the most part. Lack of equipment in most of scientific laboratories prevents more intensified cooperation between institutes and industry. Poor funding of research and development sector does not allow for the possibility to establish support system for the companies, as it is done in developed countries through investment incentives for research and development projects for new products and technologies as well as for companies’ investments in capacities of research and development centres. In general, industrial research is at the low level. Potentially usable research and development capacities are at the universities but they do not fulfil their main role – researchdue to a lack of funding. Universities mostly lost their science research component and turned into higher education institutions (colleges) that only educate without the research work of teachers. Lately, Norwegian Park for Information Technologies in Tuzla (BIT center), Technological Park in Mostar, Center for Innovations and Entrepreneurship in Zenica and Innovation Center in Banja Luka have been established or are in the process of establishment. There are different organizational models of science research work throughout the world, mostly preconditioned by peculiarities in a country’s administration organization. But regardless of the differences, the most important subjects in the area of science research work are, without exceptions: science academy with associated institutes; universities (with institutes and faculties); institutes having status of public or private institutions or companies; research centers or institutes within companies. Valid laws governing the area of science research work in BiH mostly provide for establishment and development of all institutional forms as seen in table IV-7. Table IV-7. Institutions in science research work Scientific institutions Research development organizations Universities/faculties Science research institutes Science research centers Science research laboratories Sciencedevelopment institutes Sciencedevelopment centers Organizations for transfer of technologies Centers for transfer of technologies Innovation centers Interlinking organizations I&R units Sciencetechnological parks Sciencetechnological incubators Sciencedevelopment laboratories A level of a country’s development with regards to research and development work is in direct correlation with a number of horizontal and vertical links between certain participants in the science research and development work referred to in the above table. Participants in total process ongoing in the area of research and development work, not given in the table, are: the economy that absorbs the research results and build them in directly into a product or a service and a governmental sector which implements the adopted policies and strategies, lays down a legal framework and co-funds the science and research activities. The cross influence of science and education is carried out through science teaching staff at the universities (high education institutions) in form of research projects and teaching programs. 4.4.1 Science academy Academy of Science and Art of Bosnia and Herzegovina (ANUBIH) in Sarajevo and Academy of Science and Art of Republika Srpska in Banja Luka are the scientific institutions of the highest level in BiH. Pursuant to the provisions of the valid law and statue, ANUBiH has six departments formed on the principle of gathering similar professions. Departments are authorized to set up working bodies (boards and commissions) for scientific and expert analyses of various issues of scientific and art work. ANUBiH departments are: Social Science Department Literature and Linguistics Department Medical Science Department Natural and Mathematics Science Department Technical Science Department Art Department Academy of Science and Art of Republika Srpska (ANURS) was established in 1996 with the task to develop and encourage science and research work and improve art work in RS. The Academy has four departments: Social Science Department, Literature and Art Department Natural, Mathematics and Technical Science Department Medical Science Department. 4.4.2 Higher education institutions There are 8 public universities in BiH, out of which 6 are in the Federation of BiH: University in Sarajevo, University in Tuzla, University in Mostar, University “Džemal Bijedić” in Mostar, University in Bihać and University in Zenica, and two in RS: University in Banja Luka and University in Istočno Sarajevo (East Sarajevo). Beside these, there were 9 private universities at the end of 2008 (3 in FBiH and 6 in RS) and few independent faculties and colleges. There are currently 140 faculties, 10 academies, 16 junior colleges and colleges, 4 theological faculties and 4 international studies operating within the public and private universities. All universities in BiH are undergoing a reform process in order to align with European area of higher education. All public universities in BiH participate in projects within EU funds through Tempus, Erasmus Mundus and Framework Programs for Research and Development (FP 6 and FP7); and they are also included in NCP (National Contact Point) network for EU framework programs within National Contact Point System for Framework Programs in BiH (NCP FP BiH). According to data from 1999, only 15% of the respective generation (age 18-24) in BiH enrolled into higher education institutions after secondary school (tertiary education). As comparison, the indicator for Slovakia and Check Republic was 22%, Ireland 38%, Denmark 45%, Norway 58%, and Finland 70% (Word Economic Forum, The Global Competitiveness Report 1999, p. 290). During last few years, number of enrolled students into higher education institutions has increased rapidly. Student population had grown for 26.1% in FBiH between 2003/2004 and 2007/2008, mostly in public sector10. In RS, the number of students has increased for 77.1% between 2002/2003 and 2006/2007, including private institutions11. Study 10 Source: Statistical Institute of the FBiH Higher education school year 2008 11 Source: Statistical Institute of Republika Srpska Higher education 2008 area in RS that shows the largest and the fastest increase in number of students is the area of social science (69% out of total number in 2006/2007). Comparative figure in the FBiH was 45.27% in 2007/2008. Higher number in RS is surely a result of increased number of private educational institutions in the entity. At the moment, the expansion of such institutions in the FBiH is slower. It can be thus easily concluded that the large number of students choose to study social science. Interest for natural, technical and biotechnical sciences is extremely low and they are the ones important for science and technological development and advancement of BiH. Unfortunately, very small percentage of enrolled students completes their studies. The reason for such disappointing results can only be looked for in the quality of higher education, inaccessibility of contemporary literature, non-existence of libraries and internet network at some faculties etc., and on the other hand in the fact that many students enrol into faculties only to enjoy certain rights and benefits such as pensions, scholarships, health insurance etc. When speaking of the quality of faculties, it is illustrative just to mention that even 20 faculties in BiH have no libraries of their own. On the other hand, COBISS-BIH encompasses mutual use of bibliographic and scientific data bases for only 26 libraries, full members that are included in the Virtual Library of Bosnia and Herzegovina - VIBBIH (NUBBiH). Table IV-8. Graduated students, masters of science (MB). Specialists and PhDs at higher education institutions in BiH (data for Economic Faculty in Brčko District not included) Total graduated students 2007 Total MB and specialists Total PhD Total: 12199 436 144 Females: Males: 7168 5031 186 250 48 96 (Source: Agency for Statistics of Bosnia and Herzegovina, Sarajevo, 2008) 12.199 2003 2004 2005 2006 Figure 4.4. Number of graduated students in BiH, 2003-200712 12 Source: http://www.bhas.ba/Arhiva/2008/sao/vanredno/brojevi-hr.pdf 2007 Universities, i.e. mostly faculties as legal holders of functions, cannot offer highquality education to the enrolled students due to many reasons, including: university/faculty budget is very small, inadequate number of teachers and associates, teachers and associates are not included in researches, limited access to information etc. Usual annual university budgets are around 500-1000 euro per student which is significantly less than in other European countries. University teachers are mostly without research and development projects, thus bringing their work down only to education and teaching component at several faculties in different BiH university centers. Although they do not have enough teachers to cover their own educational and RTD portion, numerous managements of higher education institutions opened additional branch departments thus lowering the teaching and researchdevelopment quality even more. OECD norm (OECD/GD (07) 84 Frascatti Manual) defines that each university teacher should spend half of his/her working hours in education process (so called 0.5 FTE - Full Time Equivalent) and other half (0.5 FTE) as researcher. This requirement has been met with app. 3% in BiH! Pre-war norm of 1.5% GDP for RTD has not been recovered by any national level. In 2004, the state spent only 0.05% of GDP for RTD (Policy of R&D in the FBH, ANUBiH, 2002), and in 2008 it amounted to already mentioned 0.1% in average for the whole country. 4.4.2.1 Bologna Process – university reform A progress has been made in Bologna process implementation in BiH in the period 20052009; mainly due to work of public universities in BiH, international community in BiH and abroad and more active participation of Ministry of Civil Affairs of Council of Ministers in higher education coordination. Since the academic 2005/2006, all public universities in BiH started implementing the first cycle in accordance with the Bologna principles. Reform of the curricula and their adjustment to two-cycle study system has been carried out and preparations for the third cycle have started (so called, PhD study). Important documents have been adopted on the state level, necessary for issuing diploma supplements to the generation that will graduate pursuant to new study programs. European Credit Transfer System (ECTS) has been introduced for all new study programs. Framework Law on Higher Education has been adopted and two most important higher education state agencies have been established: Agency for Development of Higher Education and Quality Assurance with its seat in Banja Luka and Center for Information and Diploma Recognition in Mostar. Several international projects have been instituted with a goal to assist BiH in meeting the requirements defined by the Bologna process and subsequent ministerial conferences. As an important progress element, establishment of so called Ministerial Conference should be mentioned. The presiding of the Conference is the Minister of Civil Affairs and the Conference coordinates work of 14 ministries of education. The Law on Vocational Education and Training has been adopted. Strategic document on education reform titled “Instructions for education development in Bosnia and Herzegovina 2008-2015” has been adopted. When it comes to higher education, a set of documents relevant to application of Bologna process has been adopted. Council of Ministers adopted a decision to be a part of European Registry for Higher Education Quality Assurance. 4.4.3 Institutes Institutes are scientific facilities performing science research and research development work in different scientific fields. Institutes performing science research work can be organized as: 1. science research institute in the capacity of a legal person, 2. science research institute within a legal person (academy of science and art, university, company or other legal person), 3. research development institute (independent institution or a component of a legal person which mostly performs applied and development research for the legal person in question) and 4. virtual science research institute. Throughout the world, public institutes are established to implement programs of public service in the area of science research activity. Activity of such institutions consists of continuous research activity and contracted scientific researches, while concurrently representing the science research infrastructure of interest for the whole system of scientific operations and higher education. Their work is based on correlation among basic, applied and development researches, while the research results are of general interest and represent the public property provided that the right of intellectual property is guaranteed. We can often encounter legal person in BiH with the term “institute” in its name, but they do not meet requirements for performing scientific work pursuant to valid laws on science research activity. It is often about the wish of a founder to point out that a company or institution is of special importance for the purpose of marketing promotion, while its description of activity does not list any science research work, and as such they are registered into the court registry, but not in the registry of science research institutions with a competent ministry. There are also cases where a legal person is named as an “institute” and has some sort of research in its description of activity and it “performs” scientific work and it is entered into the court registry as such, but not into the registry of science research institutions. As a rule, such an “institute” was registered with the court before the adoption of the Law on scienctific and research activity and it has no legal grounds to participate in the science research programs funded from the public funds of certain governments. However, regardless of a kind of institute, whether registered or not with a competent ministry, due to poor state of affairs in the field of science and research in BiH, these institutes mostly perform expert tasks of various analyses for economy or commerce, drafting of various routine expertise and elaborates, and very few of them actually perform real scientific research work. General conclusion is that institutes in BiH are in critical conditions regarding the staff, equipment, programs and funds,even for mere reproduction. Twenty one institutes have been entered into the Registry of science research institution in Republic of Srpska, which is kept with the Ministry of Science and Technology. These institutes meet requirements to perform science research activity as prescribed by the Law on Science Research Activity: four public institutes established by the Government of Republic of Srpska, eleven institutes within public universities (faculties), two institutes within private universities and 4 private institutes. According to data from public universities, there are around 20 institutes in the Federation of BiH operating within faculties or universities and around 10 institutes acting as independent legal persons. An issue of registry of these institutes is far more complicated than in Republic of Srpska, since licensing and entry into a registry of science research institutions have not been carried out. 4.4.4 Internet and information and communication technologies (ICT) A trend of increased use of information technologies in the research institutions in Bosnia and Herzegovina has been noted lately, although a speed of progress is unsatisfactory. Internet connections in BiH have been established relatively late (mostly due to war) and there was no significant progress in quality neither of Internet connections nor in research and educational networks. Although almost all research and educational institutions have modern computer equipment, its exact number is unknown. Around 60% of high education institutions have computers and Internet access which is not in accordance with the use of information technologies in similar institutions in developed countries. In 2006, around 17.7% of people, i.e. less than 800,000 used internet in BiH. This percentage is similar to global average in 2006 where approximately 16.7% or 1 billion people throughout the globe used Internet. However, this does not correspond to the EU average of 51.3% or around 253 million Internet users in 2007. Having in mind the fact that information and communication technologies (ICT) are becoming a key factor of competitiveness and generator of change of economy nature in third millennium, the World Economic Forum (WEF) has been publishing Global IT report for 8 years, i.e. ranking countries per so called Networking Readiness Index – NRI. Table IV-9. Networking Readiness Index for BiH for 4 years period compared to other countries According to WEF indicators, individual segments of technological readiness of BiH for ICT introduction are at different levels. Availability of the latest technology, raediness of companies to accept it as well as laws regulating this area are at very low level. On the other hand, there is a huge number of Internet users, computer owners, broadband Internet users etc. which could be explained by individual readiness for change and new technologies and institutions not being ready to follow new trends. Table IV-10. Network Readiness Sub- index for BiH 2008-2009 rank out of 134 2007-2008 rank out of 131 Rank level 3 123 133 (121) (127) ••• ••• 9.03 9.04 9.05 9.06 9.07 9.08 Availability of latest technologies Level of a company in accepting technology Laws regarding ICT FDI and technology transfer Mobile phone subscribers Internet users Personal computers Broadband Internet users 118 133 85 54 78 70 (116) (127) (75) (52) (71) (73) •• ••• ° ° ° ° 10.1 10.2 Size of local market Size of foreign market 86 103 (77) (88) ° • INDICATOR-WEF 2008-2009 2007-2008 th 9 pillar: technological readiness 9.01 9.02 10th pillar: market size (°) Revival of academic and science research computer network in Bosnia and Herzegovina is an issue of public interest. It is a prerequisite to include BiH academic community in the European scientific flows. Currently, there is no operational organization for the whole state that coordinates Internet and other communication structures or services for local science and education sectors. BiHARNET, academic and research network of Bosnia and Herzegovina was established in 1998, but it had to suspend its operations in December 2000 due to inadequate financial support. All European countries, apart from Bosnia and Herzegovina and Albania, have functional academic and research network on their entire territory. In October 2006, the Government of Republic of Srpska founded a public institution “Academic and research network of Republika Srpska" (JU „SARNET“). SARNET is in charge of building, developing, maintaining and using of information-communication infrastructure (computer network) for higher education and science research institutions in Republic of Srpska, as well as for connecting with related institutions and computer networks in neighbouring countries and Europe, i.e. global network. SARNET is funded from the budget of Republic of Srpska. SARNET uses available passive infrastructure of „Telekom Srpske“ as its infrastructure basis for work and development in accordance with Agreement between Government of Republic of Srpska and „Telekom Srpske“. In accordance with its 2007 Computer Network Development Plan, SARNET plans to develop its own distribution network, which includes all institutions of higher and secondary education, science and culture in Republic of Srpska (276 terminal connections and interconnections planned with three academic networks of neighboring countries and future academic network in the Federation of BiH). Government strategies and documents have been adopted during the last few years, as follows: ICT infrastructure, ICT industry, e-business operation, e-education, e-health care, egovernment, e-laws, e-environment, Strategy and Action Plan for Development of BiH Information Society (based on Program for development of information society in countries of Southeast Europe from 2002). Regulations pertaining to development of uniformed broadband network and international interlink with global networks have been adopted in 2005 and in 2006 the law/by-lay pertaining to electronic signatures has been adopted as well. Law/by-law pertaining to electronic transfer and eProgram+ (countries of ESS region) have been adopted in 2007. In 2008, at the state level, a Policy for telecommunication sector for period 20082012 and Strategy for development of telecommunication sector for period 2008-2012 were adopted. 4.4.5 Librarian activity From its first days to nowadays, universities were nucleuses of ideas, knowledge and changes, and university libraries a nursery of these values. Along with development of universities, the libraries of higher education institutions went through changes and walked the millennium path from warehouse of rolls and books that could be only used by privileged and rich to multimedia collections and focal points of the most various knowledge, with aid of different devices and forms, both traditional and electronic for all people. The growing search for knowledge, science expansion and its penetration into daily life caused a rapid growth of scientists and university students and thus the need for more complex curricula and very demanding library services. A key element of a country’s development is a transformation of produced information into technology and services which implies acess to source of knowledge as efficient and as fast as possible, to choose needed information from the sources, to organize the chosen information and ensure its availability. Bibliographic and quote data bases enable insight into quantity productivity indicators of science-research workers. Bibliographic data bases mostly encompass articles that are considered a final product of scientific work. Quote data bases, beside bibliographic data on index articles, enable insight into quotes of the authors of scientific articles. Relevant bibliographic and quote data bases represent information sources that enable evaluation of science-research workers performance. Relevant bibliographic and quote data bases are also mentioned in the laws on science research activity. National and University Library of Bosnia and Herzegovina (NUBBiH) in Sarajevo, has offered strong support to science research staff since its establishment. Establishment of Referral Center for Scientific Information in 1976 enabled the application of new technologies, broader approach to scientific information though computerized data bases and significantly more efficient and faster information dissemination. The Center was a seat in which a fundament of science research work was soon created as well as the gathering point of science research staff, results and achievements – PhDs, scientific studies, and projects. An online access to foreign information services was also provided: DIALOG, Data Star, ESAIRS and ECHO that enabled a search of more than a thousand data bases from the sphere of science, art and business. Today, Referral Center for Scientific Information of NUBBiH enables access to numerous global multidisciplinary, relevant data bases and information service. Also, librarian data base COBIS (the Co-operative Online Bibliographic System and Services) and REGISTER of scientific institutions, scientific staff, scientific research projects and infrastructural investment was implemented in NUBBiH. REGISTER is online application that encompasses information on researchers and research organizations in the Federation of BiH. National and University Library of Republic of Srpska ''Petar Kočić'' in Banja Luka was founded in 1935 under the name National Library of Kralja Petra I Velikog Oslobodioca (King Peter I the Great Liberator). It was renamed into National and University Library of Republic of Srpska (NUBRS) by the decision of the Government of Republic of Srpska in 1999. Beside core tasks, NUBRS function includes publishing bibliographies of the books issued on the territory of Republic of Srpska as well as publishing activities. As university library and a full member of the University of Banja Luka, NUBRS is a publisher of many technical books and university text books in the area of medicine, law, history, IT science and literature. Since 2000, NUBRS has been a representative of ISBN Agency of Republic of Srpska in the international ISBN system with its seat in Berlin. In 2008-2009, the Ministry of Science and Technology of Republika Srpska co-funded the subscription to digital scientific publication bases implemented by the National and University Library of Republic of Srpska (NUBRS) in Banja Luka for the needs of Scienceinformation Center of Referral Department of University unit NUB RS, since the Center is a service for all higher education institutions in Republic of Srpska performing science research work. The number of Bosnian-Herzegovinian journals indexed in the relevant data bases is constantly increasing. Currently, 30 Bosnian-Herzegovinian journals are indexed in the most popular data bases (ISI-Web of Science, MEDLINE, EBSCO Academic data base, CAB International, Scopus, Zentralblatt, MATH, Index Copernicus, MLA International Bibliography). Apart from the aforementioned, 22 journals from Bosnia and Herzegovina have been referred in CEEOL- Central and Eastern European Online Library. Certain journals are now under process of being included in relevant scientific data bases. This number of indexed journals is a few times lower than in e.g. Croatia or Serbia and it reveals poor possibilities of local authors to appear in the indexed journals, even local. As seen in review of indexed journals in BiH, the largest number is from bio-medical science. Thus, one should not be surprised with the fact that majority of articles from BiH comes from this very field of work (around 40% and more out of total number of articles/papers). However, we should emphasize that there is no high-quality article without high-quality projects, which is what scientists in B&H mostly lack in this moment. 4.5 Human resources in research and development sector in BiH Every national economy and its long-term development almost exclusively depend on the quality of its human resources. Using of this resources and investing in its quality are primary factors of a society’s development. Regular schooling and lifelong education system is the basic prerequisite for growth and development as is transport or energy system, efficient network of institutions and solid legislation. High-quality human resources and knowledge are basis of self-sustainability and baseline for planning a better future. People, especially educated and skilled, are potential of immeasurable values; therefore, knowledge, education and proficiency should be a cornerstone of development in any country, including Bosnia and Herzegovina. Creativity as a term got a new meaning in economic science in the 90-ties of the last century when a portion of economy based on knowledge, culture, creativity and intellectual ownership was especially emphasized. One of the basic prerequisites of creative economy. i.e. economy based on knowledge, is a high level of human capital, i.e. knowledge and skills of the working force because creative (mostly highly educated) population generates higher income in any business. In 2000, the Council of Europe adopted a set of goals for European Union according to which it should become “the most competitive, dynamic, knowledge based, world economy capable for sustainable economic growth with more and better possibilities for work and better social cohesion” by 2010. As a country which opted for EU road, it is very important for BiH to implement its adopted documents, including „A European Framework for Key Competences for Lifelong Learning“. This document, adopted by the Council of Europe and European Parliament in 2006, identifies key competencies needed to a citizen for personal growth, social inclusion, active citizenship and employability in the knowledge based economy. War, economic crises, severe budget restrictions, industry reconstruction and other subsequent market reforms created very unfavorable conditions for science and research work in the last two decades and had a negative impact on human resource in the field of science research work in BiH. Scientist as a profession became fully unattractive, not only in BiH but in all countries of West Balkan. Only few young researchers decide to work in RTD sector. Inequality and social differentiation also affected traditional values so that, as opposed to the situation before 90-ties, a level of university education is no longer a guarantee for finding a job. During war and postwar period, two processes took place that had direct impact on research-development sector: mass and continuous brain-drain – resulting in top researchers emigrating and working abroad and so-called brain-waste where scientists and researchers left their professions and started working in better paid professions in private and/or public administrative sector, foreign companies with lower positions but better pay. Both of the phenomena have profound implications for human resources in Bosnia and Herzegovina. It is estimated that more than 60% of qualified scientists, researchers and university staff left the country in the last 15-20 years. Due to the fact that the number of public higher education institutions has doubled in BiH in the last ten years, a number that has not been followed by an adequate growth of teaching staff, the teaching staff became very mobile internally and engaged at other public and private higher education institutions in BiH. There were 2,271 teachers working full time in public universities in the FBiH and 201 working part time in academic year 2007/2008. According to data for academic year 2006/07, there were 1,434 persons in total participating in higher education process with full working time and 1,173 with part time in Republic of Srpska. This shows that a full time employee-student ratio is 1:35-40 in B&H which is a way below the standard for developed universities in EU (1:12-20 ratio). However, a far bigger problem than this is the fact that majority of teaching staff has no interest to do a serious science research work due to overwhelming teaching norm and daily guest lectures at different universities as well as for a serious communication with students that are deprived of professors’ attention and participation in researches. A number of scientists and researchers in independent institutes and other research organizations in BiH compared to academic society is nowadays insignificant if compared to favorable situation in prewar period. It is estimated that only 10% of scientists and researchers is employed in these organizations if compared to academic network of BiH. According to data from Agency for Statistics of Bosnia and Herzegovina for 2006/2007, highly educated people account for around 6 -7% in BiH, which is three times lower than European average which exceeds 20%. Lack of students in BiH, especially in natural-math science and technical-technological faculties creates a very small foundation for development of future scientific-innovative staff. Among others, this data points to the fact that the implementation of set policies in education and science, and thus in creating competent human resources in BiH, is not ongoing at satisfactory speed and not yielding expected results and that the main problem of our education system is a slow implementation of the reform processes. Very few companies provide internal training for their employees and there is no organized or quality training for them. Under these conditions, the term lifelong learning, which is given a great significance throughout the world, is only a fantasy in BiH. It is also an aftermath of not acknowledging value of training and the fact that majority of companies in BiH are micro, small or medium businesses which mostly do not have enough funds to train their employees. As a result of such negative economic and social trends, BiH has extremely low number of scientists compared to number of inhabitants. Data found in various articles and reports on the number of scientists per million inhabitants, used as statistical indicator, is unreliable and thus cannot be used for comparison with other countries. With regards to human resources in BiH, critical points of science research system are lack of a complete data base of scientist and researchers and lack of records on actual number of “active” scientists. It is of outmost importance for Bosnia and Herzegovina, as well as for other countries undergoing the transition, to increase social awareness that changes for better are only possible if, and only if, the highest quality human resources are selected and given the opportunity to implement changes, provide funds, support and additional knowledge required. Human resources have always been the most important factor of survival, prosperity and future of a society and therefore only the communities that recognized those values and managed to preserve its intellectual capacities may count on its statehood, sovereignty and stable economic development. Global business policy, proven on many examples so far, indicates the fact that a capital in function of high added value production goes into countries with adequate resources, being first and foremost a qualified work force. Modern technologies and intellectual work are areas where turnover and increase of capital is the fastest and where the human capital is the most important success factor in the market. Society that fails to use its knowledge, its best researchers, scientists and innovators who are the key of survival and development, stand no chance to be prosperous, objectively speaking, and to preserve its identity, especially when talking about the “little” nations with limited resources. 4.5.1 Productivity of scientists and researchers in BiH The result of scientific and research work is a scientific piece of work, i.e. scientific paper, project, new sort, patent, original scientific article, study, monography, statements from science congress published in a journal available to both national and international public. Scientific piece of work is a one emerged as a result of scientific research by application of scientific methods whose characteristics are novelty and originality and which reveals previously unknown facts and relations and explains regularities of events/phenomenon. If the expected research results do not imply new methods and procedures, new facts confirming or confuting a scientific hypothesis or opening a new area of research, then it cannot be considered as a science research work, since it is a specialized work. 4.5.1.1 Published scientific papers The best indicator of science and technology state of affairs in BIH is measured in number of published papers in the reference journals per 100,000 inhabitants, number of patents and citations of authors of scientific papers. According to data from 2001, BiH had 3.2 times worse results in 2000 compared to its figures in 1990, 5.6 times worse than Montenegro, 8.6 than Macedonia, 18.5 than Serbia, 42.6 than Croatia and 125.9 than Slovenia (Fourth International Congress on Peer Review in Biomedical Publication, Barcelona, September 2001). As already said, majority of published papers in international journals are the ones published in medical journals (40%), engineering (20%) and natural science (18%). Table IV-11. Science and technology state of affairs in BiH in 1990 and 2000 measured in number of published articles compared to countries of former Yugoslavia Republics of ex. Yugoslavia Montenegro Bosnia and Herzegovina Macedonia Serbia Croatia Slovenia 1990 1.79 1.95 2.36 11.92 18.40 29.63 2000 3.41 0.61 5.24 11.34 26.00 76.84 The situation has not improved in the last couple of years. Table IV-12. Number of published papers of authors from Slovenia, Croatia, Serbia, Macedonia and Montenegro published in journals indexed in data bases of the Institute for Scientific Information – ISI. Country Slovenia Croatia Serbia Montenegro Macedonia Bosnia and Herzegovina 2005 2,443 2,270 2,008 63 215 142 2006 2,554 2,460 2,351 103 280 163 2007 3,038 2,976 2,960 110 305 362 2008 3,371 3275 3438 157 325 396 No of publications per inhabitants 106 2007 2008 1546.81 1669.30 670.65 738.03 314.04 365.82 177.42 252.41 150.80 160.69 94.20 103.05 Used data bases: Science Citation Index, Social Sciences Citation Index, Arts & Humanities Citation Index, Current Contents BiH is at the last place in the area of science and technology development in the group of Southeast countries. Data on citation of BiH researchers in the relevant literature could not have been analyzed since there is no valid registry of scientists and researchers in Bosnia and Herzegovina on the basis of which the search could be performed. 4.5.1.2 Patents Innovative results in science and technology can be measured, inter alia, through database of patents. Patent data belong to the European Patent Office (EPO) and represent data on discoveries (innovations) registered (protected) through the name of a patent, abstract and technological classification. European innovators choose between two alternatives when applying for patent protection. Those are EPO and national patent office. EPO managed to get patent protection through independent procedure, defining the patent approval in some or all contracted countries of the European Patent Convention (EPC). Price of the application and 10-year patent maintenance in EPO is around 32,000 euros, which is expensive for our innovators. Applications for national patent office are much cheaper. At the end of 2003, BiH signed the cooperation agreement with EPO. It enabled expansion of European patent applications and patents in Bosnia and Herzegovina. Extended European patent applications and patents are thus protected in BiH as patents belonging to EPO and its 30 member states. Within then project “Technical Assistance for Transposition and Implementation of Technical Regulations in BIH” (CARDS ITR-project)», the Institute for Standardization of BiH came into possession of the necessary knowledge related to establishment of information and notification points for the needs of WTO/TBT and EC. The Institute for Standards, Metrology and Intellectual Property of Bosnia and Herzegovina was established in 2000 pursuant to the Law on Establishment of the Institute for Standards, Metrology and Intellectual Property of Bosnia and Herzegovina. The Institute was a legal successor of the Institute for Standardization, Metrology and Patents of Bosnia and Herzegovina, which was competent for specialized and other tasks related to: standards, technical and quality standards; unification and typologies of products, goods and services; attest system implementation, homologation and quality mark; measurement unit system and control of precious metals; protection of patents, technical developments, seals, marks of product origin, samples and models; collecting, sorting and making available patent documentation to interested parties and providing information about protection and sale of innovations in the country and abroad. The Institute for Standards, Metrology and Intellectual Property of Bosnia and Herzegovina ceased to exist at the end of 2006. As of 2007 and pursuant to the law from 2004, three independent institutes were established: Institute for standardization of Bosnia and Herzegovina acting as independent state administrative organization in charge of tasks related to standardization Institute for Metrology of Bosnia and Herzegovina acting as independent state administrative organization in charge of tasks related to metrology. Institute for Intellectual Property of Bosnia and Herzegovina acting as independent state administrative organization in charge of tasks related to intellectual property. Out of total number of requested protections, 815 applications were published in the Gazette and protection approved only to 330 patents. BiH citizens filed 618 applications. Extension of patent protection to BiH territory was approved for 1,280 patents protected in the European Union countries. Owners of these patents have paid appropriate fees for protection of their rights in BiH. It is disturbing to know that the number of patent applications has been rapidly decreasing lately, and the number of approved patents is relatively low (table IV-13). Table IV-13. Number of applications and approved patents in 3 year period N&T total data 2005 Number of patent applications 372 Number of accepted national patents 55 Number of awarded patents by EPO *** European patents designed in BiH 2006 217 76 2007 92 70 160 The largest number or applied patents is from pharmaceutical and cosmetic industry, followed by chemical industry, biotechnology and medical engineering. These related industries account for more than three quarters of all patent applications. Another important technological fields are construction, architecture and mining, as well as service and equipment users. Ministry of Civil Affairs has been supporting innovators since 2007 through grants from program “Support to innovations and technical culture in BiH”. Funds are allocated through public announcement. Similar activities have been implemented in certain entity and cantonal ministries in order to stimulate the innovators. 4.6 Link between science and economy A long time ago, theoretical analyses pointed out to the fact that economic development is extensively influenced by the following: science and research, education, innovations, technology transfer, institutional framework, investments into funds for science and technological development, standardization, creative use of economic policy measures etc. Systems of education, science, research and production of developing countries, and even West Balkan countries, including BiH, are in crises and depression. In economic, social and political terms, West Balkan is a very diverse region. However, serious structural development problems are common for the whole region: visible legacy of a half-century socialistic development (differs from country to country) followed by a lost decade to a war, sanctions and population exodus throughout the region. Two most obvious problems are the size of deindustrialization and continuing problem of huge underdevelopment of rural areas. Ongoing process of deindustrialization led to enormous fall of employment rate in many areas, still not shown in official statistics. Former successor republics of Yugoslavia share inheritance of industrial companies founded during industrial boom in 70-ties, when a foreign capital was freely available. Creating jobs in socially owned companies was the leading social politics of socialist regime. In Bosnia and Herzegovina, for example, new industrial employability was at incredible level – 2, 500 working places a month during 70ties. Rather social then economic reasons dictated geographical expansion of industry and many investments proved economically and technically insufficient. As a result, industrial companies were rarely capable of generating profit and were noticeably decapitalized during 80-ties. These old industries rapidly deteriorate throughout region. Many large companies are in debt, have excess number of employees and outdated technology and are not likely to be privatized by credible investors. Many have already closed their doors, other maintain production only by accumulating more losses to end up as a burden for public budget. Deindustrialization creates massive structural problems for the economy, from unused industrial capacities to too expensive infrastructure to be maintained by the post-war community, working force that lacks capabilities required by a new private sector to whole cities whose economic foundation just vanished. Nowadays, in BiH, Macedonia, Serbia, Montenegro, Albania, and even Croatia, a collapse of industrial employment led to return to self-sustainable agriculture among those forced to step out from the official economy. Small farmers work on small land plots with very few machines. With agricultural techniques that have slightly changed in the last 50 years, they do not produce enough for the market and thus are not capable to make investments to improve productivity. Capacity of the agricultural sector to uplift these rural areas from their poverty is limited. Due to shortage of rural development, the best option available to rural people is a mass economic migration. Word economic crisis, whose end is yet to be seen, additionally complicates the economic and social situation in the countries of West Balkan. Economic recovery in BiH is under influence of yearlong negative economic and political events and it is very slow. Unstable business operation conditions, problems and difficulties common for countries undergoing transition, such as production decrease, high rate of unemployment and foreign-trade deficit, small number of products with high added value etc. represent one of the main obstacles toward faster economic recovery and development of BiH. Beside deficit in exchange of goods to the detriment of BiH, structure of exchange of goods is unfavorable since mostly raw materials and semi -finished products are exported while sophisticated and high tariff products are imported. The reason for this is, inter alia, that international regulations and standards pertaining to foreign trade have not been fully met, so BiH can only export a small number of products. Inexistence of adequate regulations and quality verification systems for products imported to BiH enables import of practically everything, not only low quality products but even potentially harmful ones. In pre-war BiH, science research, technological-developmental and control activity was mostly ongoing in industrial laboratories and institutes and mostly for their own production needs. There were no large state institutes like, e.g. in Slovenia (Jožef Štefan), Croatia (Ruđer Bošković) or Serbia (Vinča, Mihajlo Pupin). During and after the war, research and development infrastructure in BiH has been mostly destroyed as well as the proprietary companies. Today’s science research activity and development of new technologies in BiH is characterized by obvious lack of systematic planning as an important component of economic recovery, which significantly reduces recovery efforts of economy and export capabilities of a country. Since human potential is assessed as a key driving factor and prerequisite of any economic improvement in a modern society, it has to be noted that the weak social position of science and research staff and lack of adequate conditions for work and research, including material and technical infrastructure, are some of the features of actual situation in the science-technological sector in BiH. Lack of science and development programs and projects has a negative effect on internal fluctuation of qualified staff from production branch into public institutions (administration) and international organizations. This qualified staff mostly performs routine tasks, very often ones that have nothing to do with their qualifications. Beside, ignoring the role of R&D in economic recovery and reconstruction results in decreased interest for technical-technological studies. This effect, in combination with young people leaving the country, will cause long-term deficit in all professions, which can in return cause permanent detrimental consequences to the development of BiH. An important question arises: is the remaining number of BiH experts and scientists sufficient as a preserved core of human resources, i.e. do we have a minimum critical mass of trained and creative human potential? The answer might be conditionally affirmative: if they were organized. Only if they are organized, they can be a center where new scientists can gather, get educated and trained and thus meet the set goals themselves. It is very clear that they cannot get organized alone. This is an opportunity to set this issue as an uniformed task in the country, not allowing for uncoordinated and unrelated approaches and activities. Our society needs urgent and radical change of social status of science and technology sector as crucial economy factor in order to come closer to the development level of other countries. Having in mind that the main precondition for development of modern economy and its competitiveness is innovative ability and innovative capacities and products with higher added value, and since small and medium enterprises are not able to establish their own research-development centers to conduct researches and development of new products and services and improve technologies; it is necessary to start establishing innovation business organization in BIH such as science-technological parks, centers of excellence, incubation centers, technology transfer centers etc. Creation of clusters must be encouraged and connection among small and medium enterprises, private and public successful business systems should be created. The purpose of techno-entrepreneurship encouragement is to significantly increase application of science research results, develop techno-entrepreneurship, i.e. encourage transfer and application of technologies in our companies through establishment of these new organizations. Development of science technological programs and projects should be in accordance with the requirements of strategic tasks of economic development of the country and in accordance with demands of regional and world market. Policy should concretely promote efforts for science and research work to be founded first and foremost on application of available and newly created national knowledge, as well as on faster transfer and application of world scientific achievements. It is understood that this should be followed by a maximum use of national human resources with efforts to make them a key factor of BiH development. Our classic technologies, even traditional ones (crafts) do not, by any means, represent a setback in the development. Crafts need to be innovated and improved with respect to lesser use of materials, energy and working hours. In the next period of reconstruction and development of BiH industry, ground and applied researches, technology development and all other supporting activities should be focused on following areas: production and distribution of electrical power, by promoting, first and foremost, increased production from renewable resources (wind, sun, water, geothermal energy etc.), information and communication industry, especially in service sector, agricultural and food industry with emphasis on organic production, healthy food and branding of certain sorts and regions, timber-processing industry with emphasis on larger finalization and small series production, mining with a completely new way of investing into safety of exploration, metallurgy, metal processing and machine industry, pharmacy, chemical and petrochemical industry. Priority tasks that need to follow the aforementioned are: defining of sciencetechnological policy and strategy at all levels in BiH, reconstructing and building of sciencetechnological and research-development infrastructure (techno-parks, centers of excellence, laboratories, equipment and materials), cooperation in the country, region and with international partners, networking of science-technological institutions, investing in education and empowering of human resources. When drafting development plans and strategies, one should definitely pay maximum attention to compliance with project making principles, building and work of systems based on ecologic sustainability thereof, since BiH must show through its concrete action that it desires economic and ecologically sustainable development. It is a rule that economic movements and policy of a country reflect in the development of science and technology, i.e. economic underdevelopment is followed by science underdevelopment. A postulation is that national wealth is reached through modern technologies and not vice versa. It confirms at the same time that social problems of a society, especially ours, cannot be addressed successfully by social but rather by development policy. By taking into account this broad socio-economic and general civilization framework and poor situation in science research and technological sector in BiH, it is necessary for the modern policy of science-technological development and society development as a whole to be founded on a commitment that science research work should have a lot more influence on our economy13. Directorate for Economic Planning (DEP) of the Council of Ministers of BiH published the "Plan of mid-term BiH development strategy” (2004-2007) whose portion is dedicated to industrial development of the country. Unfortunately, science and technological research was not emhasized, which tells us that this area is not recognized as a part of 13 Fuad Turalić, Vinko Bogdan „Nauka i tehnologija u privredi BiH/Science and technology in BiH economy“, International business forum "Perspectives", Tuzla , 2005 country’s development. The same took place in the most of privatization processes where no one took care to preserve technical capital of industrial companies. Objectively speaking, in many privatization cases of huge systems, it could have not been done. It is planned to carry out an analysis of science and research importance, technology development and innovation increase as a condition for reaching the competitiveness of medium developed countries in the BiH Development Strategy for period 2010 – 2015 (CDS), currently under drafting procedure. 4.6.1 Innovation systems Contemporary theoreticians point that the greatest difference between modern capitalistic economy and other economic systems is in the pressures of free market forcing companies to constantly innovate, which becomes a matter of life and death to many of them14. Practically, innovative activity in modern economies represents mandatory activity which becomes a condition for their survival at the market. Exactly there rests a key incentive for global market system to economic growth. From a historic point of view, a process of huge economic growth started at the time of industrial revolution in the 18th century and almost all economic growth as of then can be attributed to innovations. Innovation is a term used to describe how someone creates a new value through development and application of knowledge in new ways. Innovativeness is creating opportunities for profitable application of new solutions and search for such opportunities all the way to their acceptance in practice. Under conditions of free market system, innovative activity represents a cumulative process with a feedback between one innovation and another one that follows it. Global market forces companies not only to innovate, but to quickly expand new technologies throughout the economy. Companies have strong reasons to expand their technologies and to establish informal common networks and partnerships for development and use of new technologies. Many countries develop so called national innovation systems (NIS) for the purpose of stimulating networking in the field of innovations. Occurrence of NIS concept was enabled by a new technological-economic paradigm, economy of knowledge, based on technological change management as a driver of economic development whose main resources are knowledge, development and education resulting in new technologies (products, processes and services) and innovations. In the context of modern economic movements, a knowledge emerges as the main economic category, whether as market products itself, commitment in innovations and human resources or investment in nonmaterial goods, first and foremost in development, research and education as drivers of technological changes. Thus it becomes a specific characteristic of modern societies15. 14 15 William J. Baumol „THE FREE-MARKET INOVATION MACHINE – ANALYZING THE GROWTH MIRACLE OF CAPITALIZM“, Princton University Press, Princton and Oxford, 2002 Jadranka Švarc „Što je nacionalni inovacijski sustav i je li on potreban i moguć u Hrvatskoj/What is national innovation system and is it needed and possible in Croatia“, Economic review, 52 (9-10, 1053-1077, 2001) Emergence of national innovation systems was caused by a fact that some countries, despite relatively modest science research achievements (e.g. Japan, South Korea, Norway, Finland, Singapore, Taiwan, Malaysia, etc.) have been much more successful lately in using knowledge and new technologies in their economic development than other countries (e.g. England or Russia) which, despite their large-scale investments into science, research and development, are not capable to fully use their science research potential for creating market usable technologies in proportion with invested funds in RTD (Research, Technology and Development), thus loosing their pace at international markets. According to OECD, a structure of innovation system of a country (NIS)16 consists of four main parts: 1. Public science research and research-development sector consisting of universities (higher education) and national science research institutes funded mostly from the state budget, and may include also nonprofit scientific organizations. 2. Research-development components in the companies encompassing formal researches and development resources, i.e. organized, self-funded researches in industrial laboratories and informal resources, such as acquired knowledge of engineer and technical staff. 3. Education institutions which “produce” researchers and engineers, but also train workers and technicians. 4. Governmental institutions which create innovation policy that includes all types of public programs, legislation and administrative measures whose goal is to offer support to technical development and innovativeness and especially the cooperation between science and economy. The essence of innovation policy is that it brings together the science research and technological policy with other parts of the system for the purpose of successful economic development. Science research policy exclusively deals with science researches, i.e. ground, applied and developmental researches by definition, and the purpose of technological policy is to stimulate companies to develop, commercialize or adopt new technologies. In classic systems, those two policies are mostly mutually isolated and independent but in modern socio-economic systems the innovation policy integrates science research and technology policy with assistance of two basic processes that cause technological change: process of stimulating new inventive forms, discoveries and innovations and process of their expansion, i.e. diffusion of technologies, knowledge and skills for their use. Consequences of SFRY dissolution, war at the end of 90-ties of the last century, economic transition and lack of social awareness about the importance of science, research, technology and innovativeness led to a disastrous situation in BiH economy. All previous analysis imply that a development of national research and development system is going in the opposite direction, with regards to almost all important characteristics, in comparison to development direction of global modern innovation systems, and what is especially dangerous, in comparison to the recommended EU innovation guidelines. 16 Ibid 4.6.1.1 Innovation centers and science-technological parks Precise definition of strategic goals and policy of science-technological development in BiH, as well as the instruments for their implementation, represents the key prerequisite for reintegration of BiH research space and putting science into function of overall economic and social growth of the country. Active role of the state in creating of attractive business surrounding and impetus to knowledge and technology transfer finds it full justification in the fact that the application of innovations, i.e. improvement of existing ones and expansion of new knowledge and technologies create positive effects in all segments of socio-economic life. «Science park/technological park is an organization managed by specialized professionals whose main task is to increase the well-being of a community by promoting innovation culture and competitiveness of entrepreneurs and research institutions. To achieve these goals, science-technological park (STP) stimulates and manages a flow of knowledge and technologies between universities, research and development institutions, small and medium business and market. It facilitates creation and growth of innovation based companies through incubation and spin-off processes and provides services in order to increase added value along with services of high quality environment and equipment in TP.» (Definition for STP given by IASP – International Association of Science Parks) Although there are no strategic measures and polices for targeted investments into development of innovation and technological sector, certain efforts are being made that should result in positive changes in this area. At the end of 2008, the Government of the Federation of BiH adopted the Information on Development and Limitations in Establishment and Work of Technological Parks in the Federation of BiH. It was noted that Technological park Mostar and Technological park Tuzla operate at the territory of the FBiH in the capacity of companies with limited liabilities while establishment of Technological park Zenica is in its last phase. The Government emphasized the importance of the technological parks as instruments for integration of different socio-economic and political factors and gave its support to reconstruction and development of BiH economy. It also adopted a conclusion obligating the Federation Ministry of Development, Entrepreneurship and Crafts and the Federation Ministry of Education and Science to continue with their support to establishment and empowering of technological parks within their competencies. Law on science research activity of Republika Srpska prescribes the possibility and procedure for establishment of science technological parks and it defines the goals of their work. RS actively works on establishment of ICBL – Innovation Center, University Entrepreneurship Center and Technological Park which will be founded on positive European and global experience in this field. Development of technological or science-technological parks (TP/STP) in BiH requires strategic defining of the place of their development, assistance of the state in their establishment and profiling, equipping, registration etc., as per example of technological parks throughout the world. What needs to be avoided is the excess number of TP/STPs and business zones, since current trends point to “potentially hundreds of business zones in BiH” and dozens of TPs or STPs, for which, objectively, there is no need, human resources and capital or other important elements. In order to have a more powerful, synergetic effect in the BiH Development Strategy for the period 2010-2015, it was proposed to establish TPs in Sarajevo (with preference to information technologies, electronics, mechatronics, biomedicine etc.), Tuzla (chemical technology, IT, energetics, etc.), Mostar (processing of colored metals technology, agro-industry, energy efficiency/renewable energy, etc.); Banja Luka (electronic technologies, agro industry etc.) and Zenica (new materials, metal processing of higher levels, new technologies in timber-processing etc.). All other forms in BiH should strive to reach regional centers excellence in e.g. field of agriculture-food technologies (potential centers Bihać, Prijedor, Čapljina, Bijeljina, Trebinje, Visoko and others). Other centers can also emerge as centers of excellence in certain industrial branches (e.g. center for tools in Gračanica as a part of TP Tuzla). Support to TP development can be provided through institutions of regional and national development and international programs FP 7, IPA etc. Potential location of technological parks and other development forms need to be clearly defined keeping in mind, first and foremost, the human resources, existing infrastructure in the area of research and development, scientific references and competencies, natural characteristics of a region for a certain development and proven centers of excellence etc. Only approach this serious can result in benefits for the community from the establishment of STPs and TPs as for example in Spain, the one of the EU leaders in establishment of STPs and TPs and a country whose GDP was at the same level as of ex-SFRY in the 70-ties of the last century. Examples of neighboring countries and other EU member states enable us to see that they have strongly committed to establishment and development of STPs. 5. LEGAL FRAMEWORK FOR DEVELOPMENT OF SCIENCE IN BiH 5.1 Competences in the field of science and decision makers Constitutional and legal structure of BiH is completely reflected in BiH field of science, and it determines science development to a great extent. In Bosnia and Herzegovina, in accordance with the current Constitutional setting, decision making competences in the field of science are divided among a number of subjects i.e. levels of authority on the basis of the territorial division. In most of the cases, the existing constitutions are not explicitly treating the issue of science and research but, very generally, competencies for legal normatisation of science and research are transferred from 'higher' to 'lower' authority levels. Article III of the Constitution of BiH regulates competences and relations between BiH institutions and entity level institutions. In terms of legal regulation of the field of science and research, the state competence is not explicitly stated. Consequently, the assumed competence of the entities was established. The overall situation is even more complicated by the fact that there is an identical provision in the Constitution of FBiH which implies that the normative regulation of the field of science in the FBiH belongs to the cantons. Additional difficulty is that the competent bodies in most of the cantons in FBiH treat 'competence' only as a right excluding the fact that it also implies an obligation for intervention. Furthermore, until today, regulations in the field of science have been passed only in Sarajevo and Tuzla Cantons. In the cantons where no regulations on science were passed, the Law on science and research is in force („Official Gazette SR BiH“, No. 38/90). In Republic of Srpska (RS), the field of science and research and its functioning is regulated by a revised Law on science and research („Official Gazette of Republika Srpska“, No. 112/07), as a field of the general interest for RS. It is evident that the abovementioned legal regulations, besides certain generally acknowledged solutions and definitions, differently regulate certain issues in the field of science and research. This especially applies to names, minimal conditions, bodies and procedures for awarding of research and scientific degrees and titles. Situation is similar in terms of meeting the minimal conditions for establishment and start of operation of science and research legal entities. Law on science and research of Republic of Srpska precisely states and generally defines the types and manner of operation of organisations in the field of science and research and in the field of technological development (different types of institutes, scientific and technological park, etc.). At the state level, the Framework Law on principals governing the field of science and research and coordination of internal and international cooperation in the field of science and research in BiH defines special interest in the field of science and technology in BiH, basic principles of science and research activities, establishment of international cooperation in the field of science and research and cooperation in the field of science and research within BiH, manner of coordination of institutions competent for the field of science and research, establishment of the Council for Science of BiH, as well as coordination of the information system for the field of science and research in BiH. In accordance with the proposed Law, it is foreseen that the field of science and research in BiH is based on the following principals: a) freedom and autonomy of creativity; b) competitiveness of the scientific programmes and projects; c) application of international standards and international quality norms/benchmarks in the field of science; d) decentralised setting and polycentric organisation within the field of science; e) transparency of the work and its results that are subject to scientific and expert criticism; f) ethicality of scientists and researchers; g) cooperation with local and international institutions in the field of science and research; h) link to higher education system; i) protection of intellectual property, human rights, personal and general safety; j) care for a sustainable development and protection of the environment; k) needs of the economic and social development; l) encouragement and recognition of specificities of national content. Taking into account BiH’s inclination to actively participate in implementation of the EU policies in the field of science and thus enter the European Research Area, as well as build the structure that will meet all the European standards, passing of the aforementioned Law is of a great significance. Furthermore, certain articles of certain special laws in a fragmented manner regulate the field of science and research on different levels (e.g. Law on Higher Education, Law on Archiving, Law on Museums, etc.). 5.2 Relevant documents related to the Science Development Strategy Development of science, technology and research is one of the key preconditions for speeding up the process of BiH joining the general trends of globalisation processes in the contemporary world, i.e. its gradual integration in the circle consisting of the regional and the EU developed countries. Strategic activities in this field should instigate process directed at creation of the positive environment for reactivation, growth and development of economy and entrepreneurship, as well as increase of their competitiveness in the market, increase of their export endeavours and promotion on the regional and international level. Moreover, development of science and technology is of special importance for reintegration and further development of BiH society as a whole. Science Development Strategy in BiH is directly related to several key and a number of less important national and international documents that represent a basis for strategic planning and implementation of the objectives needed for sustainable economic, social, educational, cultural, scientific and technological development of BiH. It is important to emphasise, in the first place, BiH Midterm Development Strategy 2004 2007, i.e. its revised version from May 2006 whose adoption at the state and Entity levels set the "basic socioeconomic development goals for BiH, as well as actions needed for their implementation". Apart from 6 general, the Development Strategy also defines 12 sectoral development priorities. This document treats science within the field of education, whereas information-communication technologies are singled out as a special sectoral priority. A number of various reports, prepared by Directorate for Economic Planning of the Council of Ministers of BiH, show that actions foreseen by the Midterm Development Strategy have been implemented by about 60%. In the field of science and technology certain actions have been implemented only partly or have not been implemented at all. This fact must be taken into account in the process of drafting of the new development documents that urgently have to include actions that were not implemented by the end of 2007. BiH Development Strategy for period 2010 - 2015 is in the process of development concurrently with the development of this Strategy, thus the aforementioned elements have to be taken into account in order to reach compatible solutions. Stabilisation and Association Agreement as well as some other documents preceding its signing are of great importance for development of the field of science and research in BiH and its adaptation to the European trends in the field. The Agreement was signed between the European Commission and BiH on 16 June 2008. As a key instrument in the Stabilisation and Association Process, SAA inaugurated radical reforms in almost all aspects of social and economic life in BiH. Chapter VIII of the Agreement defines, in total, 25 cooperation policies between BiH and the EU, out of which most are, directly or indirectly, related to the field of science, technology and research (Research and technological development, Information society, Education and training, Information and communication, etc.) There is an open opportunity for obtaining financial and technical support for achievement of strategic goals in the mentioned areas, as well as achievement of the set priorities. Multiannual Indicative Planning Document (MIPD) 2008 – 2010 – long term planning for the main priority areas, states that the expected result in the field of Research is: ”Improved cooperation in the field of research across beneficiary countries, as well as cooperation with the EU partners; Strengthening of research potential in the region; Increased awareness on significance of research aimed at supporting sustainable economic development; Better integration of the beneficiary countries in the European Research Area; Better expert support with the aim of supporting drafting of the regional research strategy; Supporting centres of excellence”. Document European Partnership with Bosnia and Herzegovina emphasises “Start with creation of integrated research policies” as a priority. Other documents related to the BiH Science Development Strategy are various international analyses, reports and studies (e.g. Report of the UNESCO-Roste expert mission), as well as strategies, programmes and plans for development of certain sectors (agriculture, energy, industry, ecology, tourism, etc.), that define the goals and directions of the sustainable development within those areas. All the mentioned documents contain appropriate recommendations that are incorporated in the BiH Science Development Strategy in parts related to science and research activities. 5.3 Monitoring of statistical indicators in the field of science Continuous quantitative monitoring of the process of implementation of the activities within the BiH Science Development, i.e. state-of-affairs and development of the whole field of science and research, requires introduction of the standardised methodology of collection, processing and dissemination of statistical data based on international standards, recommendations and positive experiences in this field. Mostly all EU member states apply OECD statistical research methodology for the development of the field of science and research that enables planning and monitoring of the growth and progress of each of the states individually, but also implementation of the comparative indicators. Recommendations and objectives stated in the Lisbon Strategy are the basis for planning of this process. Field of statistics in BiH is regulated on the state and the Entity levels. In BiH there are three statistical institutions with divided competences: Agency of Statistics of BiH, Institute of Statistics of FBiH and Institute of Statistics of RS, whose functioning is regulated by special provisions. None of the statistical institutions conducts a continuous and systematic collection of data that are important for determination of the stateof-affairs and monitoring of the development process of the scientific and technological field. In 2005 Federal Institute of Statistics developed a new data collection system for the field of science, research and experimental activities for the territory of the Federation of BiH, within which a methodological instruction and forms were developed in line with the OECD’s "General Guidelines for Statistical Research on Research and Experimental Development". In the past two years, experiment research was conducted but, due to the poor cooperation of the scientific institutions and other subjects in the field of science, research and technology, the results were not satisfactory. Establishment of the relevant indicators and other statistical research instruments for research of development of science and technology in BiH is of crucial importance for estimation of the state-of-affairs and actual progress in this field on the national and international level. With the aim of systematic monitoring, registration and improvement of the conditions in science and technology, there is a need for establishment of a science and research information system in BiH (NIIS BiH). NIIS BiH should include science and research databases, registers and statistical indicators in accordance with the world and, especially, European standards. Science and research information systems of RS, FBiH, cantons and Brcko District of BiH, together with the BiH science and research information system should form a single system. 6. INTERNATIONAL COOPERATION 6.1 Basic principles of international cooperation in the field of science In BiH the basic principles of international cooperation in the field of science, research and technology are implemented through activities of the Ministry of Civil Affairs of BiH (MoCA BiH) as an umbrella institution that coordinates operation of the competent Entity ministries, as well as directly through European Commission via its certain programmes (e.g. Tempus, FP7, etc.). Constitutional provisions provide considerable powers to the Entities, Republic of Srpska (RS) and Federation of Bosnia and Herzegovina (FBiH), as well as to cantons in FBiH. Consequently, they can implement various bilateral projects in the field of science, research and technological development with the regions in Europe and the world, which represents common European practice of the regional cooperation as defined by the Maastricht Agreement (1992). In the field of science, the MoCA BiH is competent for determination of the basic principles of activity coordination, harmonisation of the Entity authority plans and definition of the strategy at the international level. The MoCA is also involved in preparations of international agreements/contracts in the field of science, and it monitors application of the local agreements and strategic documents in the field of science and proposes relevant activities. Furthermore, it actively monitors EU integration process and initiates its implementation, and it also monitors application of European Conventions and Declarations in the field of science. The MoCA prepares reports, as well as participation of BiH representatives in European and world conferences in the field of science. It leads and coordinates cooperation activities with EU and UN organisations and bodies, as well as with relevant world associations, and undertakes actions with the aim of strengthening and promoting of science as an important field for overall social and economic progress of BiH and its status in Europe. In 2008 within the MoCA, for the first time, funds were granted for the field of science. Total available funds from the grant „Programmes for preparation of projects and potential candidates for EU-FP7 funds“ for 2008 were 500.000,00 KM. The aim of the grant was instigation of involvement of the local research institutions in international projects within FP7, COST i EUREKA programmes through financial support of international project. State contribution to funding of science is also reflected through providing of funds for covering the expenses of the membership fee in FP7 EU, as well as through its readiness for covering the membership fees in the COST and EUREKA programmes once the country becomes their member. It is necessary to continuously foresee the funds for co-financing of international cooperation activities in the field of science and research in BiH institution budget. Plan of co-financing international cooperation activities in the field of science and research should include funds that are necessary for the following: a) Entrance fee in international scientific and research programmes; b) Settling of honoraria of BiH representatives participating in international scientific and research conferences and in international scientific and research bodies and organisations; c) co-financing of participation in international scientific and research projects. The MoCA should introduce a practice of announcing a public call for applications for allocation of funds for co-financing of international scientific and research projects and cooperation that is of significance for BiH. It should be done on the basis of criteria and norms for implementation and funding of international scientific and research programmes. 6.2 EU programmes and other initiatives of international cooperation EU Framework Programmes (FP) for research and development are the main instrument for funding of research and development in the member states and countries associated to these Programmes, as well as for strengthening the European Research Area (ERA). Framework programmes were officially established in 1984. At the moment, Seventh Framework Programme is ongoing. It started in January 2007 and it will end by the end of 2013. Within the European Commission, institution competent for Framework programme is Directorate General (DG) for Research. The whole process started under the Greek EU presidency, at the summit in Solun in 2003, when the EU confirmed European perspectives for the Western Balkan countries and decided to strengthen the Stabilisation and Association Process (SAP) by introducing a number of new support initiatives and programmes. On that occasion, also the so-called „Action Plan in the Field of Science and Technology for the Western Balkan Countries“ was initiated. According to the Action Plan these countries will be assisted , in a speeded-up procedure, in the process of creating necessary conditions, potentials and capacities for their integration into the EU scientific and research activities, as well as their full membership in ERA, Framework and other EU programmes. This initiative was additionally strengthened under the Austrian EU presidency in Vienna in June 2006 when the so-called „Steering Platform on Research in Western Balkan Countries“ was established, which was followed by establishment of the Platform secretariat and the web portal www.see-science.eu. BiH experience in participation in the Fifth and Sixth Framework Programmes shows that, despite very strict criteria and many competitions of the institutions from other countries, there is a so-called „critical mass“ of researchers in BiH that are capable and willing to implement very demanding and complex projects. In the course of implementation of the Sixth Framework Programme (FP 6), BiH had over 40 approved projects with the total funding of over 2,5 million EUR, and without having to cover any expenses for the membership fee. On the basis of data available to the office of the BiH National Contact-Point for EU Framework Programmes, after closing of the FP 6 and opening of the first call for application of projects for the FP7 (Seventh Framework Programme) 20 BiH institutions applied for 29 projects. Following the expressed interest by the Council of Ministers of BiH and the BiH Presidency decision, a Memorandum of Understanding (MoU) between the EU and BiH on BiH's joining the EU Seventh Framework Programme for research and technological development was signed. According to that MoU, BiH became an associated member of the FP 7 on 01 January 2009; and in accordance with it, BiH has the full rights and obligations in this field as well as the EU member states. By signing the MoU, BiH reaffirmed its interest to proactively engage in EU policy implementation in this field, and consequently join the European Research Area and build a structure that meets all the European standards. Moreover, this opens a bigger opportunity for: obtaining the EU funds for financing of science and research both in research institutions, SME and large companies (private or public ones); instigation of mobility of our researchers in the EU countries; signing of agreements on scientific and technical cooperation with the EU and bilateral agreements with the EU member states intensifying international cooperation; full participation in all horizontal and vertical activities within the FP 7, also including JRC (Joint Research Centre) and People (Research Mobility Programme). In order to attain the aforementioned goals, it is necessary to continuously improve FP7 NCP Structure. In May 2009, BiH became a member of COST Pogramme, obtaining NIP Status within EUREKA Programme. Therefore, it is necessary to promote these Programmes within the country as well as to develop structures required for active participation within the said Programmes. COST (European CO-operation in the field of Scientific and Technical Research) programme is an intergovernmental framework for European cooperation in the field of scientific and technical research. Research topics that in a later stage enter the EU Framework Programmes are being examined within COST programme. Participation in COST programme would present an opportunity for the local science and research institutions to become a part of and gain an insight in the main course of research activities in Europe. Additionally, participation in certain COST actions creates a more favourable position for participation in other EU programmes. Following the membership in COST, Bosnia and Herzegovina is expected to present its Science and Research Development Strategy as well as its Strategy on Cooperation within COST Programme before a High Officials Committee. Until now, BiH participated in COST projects as a non-member country, which represents one of very important conditions for membership. EUREKA is Europe-wide network for funding of market-oriented projects in various technical fields. It was launched in 1985 by 17 member states from the Western Europe. Today it has 38 full member countries. EUREKA facilitates partnership building through joint multilateral projects with the aim of strengthening European competitiveness. Results of those projects are new products or services that promote advanced technologies and have their position in the market. Over the years, EUREKA supported cooperation of research institutions in more than 2000 projects. A considerable number of institutions that were involved in the project cooperation significantly increased their annual profit due to the achieved results. The Programme is designed for research institutions and companies that are ready to jointly develop new technological solutions and products through joint investments in certain programme areas. At least two project partners from two different countries have to participate in a project. SEE-ERA.Net project was launched in 2004 aimed at integrating Southeast European countries in the European Research Area. In the past years, developed European countries built and established databases containing detailed descriptions of their research and scientific potentials. At the beginning of 2006, First Joint Call for Research Projects was launched within this Project. The Project's objective was identification of administrative procedures and legal aspects of the Call. 14 countries are participating in the Project – eight European and six Western Balkan countries. All countries participate with their national financial contributions. The idea behind the First Joint Call is based on exploration of priorities and needs of the Western Balkan countries in relation to their better integrating in the European Research Area. The funds are available for partnership development, know-how and experience exchange, increase of research capacities in the Western Balkan countries, as well as for any other type of research within this Project. This is an extraordinary opportunity to strengthen scientific and technical potentials in cooperation with partners from the EU member states and especially with regions that are uniting. Special emphasis is given to the joint evaluation system of research project proposals, where all the evaluation procedures are characterized by transparency and dedication to high scientific quality. Approximately 70 research projects from BiH applied within the Project in the fields of agriculture, environment and IT. A special agency, that evaluated the Project, selected eight projects from BiH, which is proportional to BiH contribution for the Project. MoCA BiH is one of the partners of the WBC-INCO.NET project that is aimed at supporting the bi-regional dialogue between the European Commission, Seventh Framework Programme associated countries and the Western Balkan countries with the aim of promoting participation of researchers from this region in FP 7 projects. TEMPUS programme provided a significant support to modernisation and reform of higher education system in BiH. Since 1997, TEMPUS financed almost 90 projects aimed at instigation of cooperation with the EU higher education institutions in the fields of curricula development, university management and structural reforms. This programme proved to be extremely efficient both for university human resource development and for strengthening capacities in public administration, civil society and economy bodies. In the last TEMPUS IV Call for Applications (first Call in 2008), BiH had more than 60 applications, out of which 9 passed the ranking procedure. It is also important to emphasise that, in the beginning of 2009, the EU proclaimed one of BiH Tempus projects (led by the University of Banja Luka with local project partners University of Zenica, University of Mostar and University „Džemal Bijedić“ Mostar, and with EU partners from Belgium and Poland) as one of the best 30 projects in the EU in the competition of several hundred ranked projects out of which only 2 Tempus projects made it to the „Top 30“ list. International cooperation in this field is also possible through using the opportunity given by the second component of pre-accession assistance - IPA, which deals with cross border cooperation. It is possible to obtain funds for the field of science and research from this component through quality projects in cooperation with neighbouring country partners. IPA funds also need to be used for strengthening of capacities in the field of science through project applications within the first component. In order to achieve this, it is necessary that science and research are treated as priority areas within the Multiannual Indicative Planning Document (MIPD). The field of science is also included in the IPAP - Individual Partner Action Plan that represents one of the Partnership for Peace mechanisms. It is a bilateral mechanism that provides support in defining of the needed reforms in the partner countries, designed on twoyear basis and aimed at uniting different cooperation mechanisms through which partner country cooperates with NATO. IPAP improves coordination of bilateral assistance received by BiH in the process of Euro-Atlantic integrations. Until now, cooperation with UNESCO was mostly reflected in activities related to the field of culture and education. Having in mind UNESCO's competences in the field of science, in the forthcoming period the focus should be put on cooperation with UNESCO in the field of science, and using of all opportunities offered by UNESCO's participatory programmes for project applications in the field of science and research. Unfortunately, academic and scientific community in BiH is very poorly familiarised with UNESCO's activities in BiH, unlike with the previously mentioned programmes; therefore, more efforts should be made in the future period in order to bring this organisation and its programmes closer to the scientific community in BiH. 6.3 Cooperation agreements in the field of science With regard to bilateral cooperation in the field of science, according to data from the Ministry of Foreign Affairs, BiH concluded agreements on cooperation in the field of science with Albania, Bulgaria, Egypt, France, Greece, Croatia, Iran, Italy, Kuwait, Germany, Turkey, Montenegro and Slovenia. Within the signed agreements, signatory countries expressed their willingness to intensify their cooperation in the field of science. The most tangible results can be seen in implementation of the Cooperation Agreement with Slovenia, on the basis of which calls for co-financing of joint research projects within scientific and technological cooperation between BiH and Slovenia are published. Project cofinancing criteria are: importance of research results for economic and social development of BiH, scientific value and/or research applicability, potential opportunities for participation in EU research projects, usability of the research results in practice i.e. in the country's economy, research group references, inclusion of young researchers and project implementability. On average, 20-30 projects apply to these Calls every year and then a Joint Committee for Scientific and Technological Cooperation between BiH and Slovenia evaluates the projects and proposes the best ones for financing. It is necessary to undertake an initiative in future with the aim of intensifying bilateral cooperation with other countries - where there is an interest of the local researchers. Cooperation already established with Slovenia can be used as an example in those activities. BiH diplomatic and consular network should also contribute through its activities to the further development of international scientific cooperation. Annual work plan of BiH diplomatic and consular bodies should define planned activities in the feld of scientific cooperation. In the countries where an interest for better cooperation in the field of science and research exists an attaché for science should be appointed. BiH Mission in Brussels should be especially strengthened by appointment of at least one employee as an attaché for science as well as establishment of a team for scientific and expert presentation of projects (so-called lobbying for scientific projects). This became especially important after BiH joined Seventh Framework Programme. Having in mind intensification of cooperation with the European Commission in this field in the future period, as well as the need to be constantly and timely present at the source of information, establishment of such a team is an imperative for successful obtaining of the funds from FP 7. Once BiH is accepted in COST and EUREKA programmes, the need for the science attaché in Brussels and the „lobbying team“ will increase. Significance given to the international cooperation in the field of science by the European Commission can be seen through its willingness to support drafting of the regional science development strategy for the Western Balkans. Similarly, importance should be given to establishment of „regional lobbying for ensuring projects“ concept. Apart from the abovementioned, BiH academic community signed numerous bilateral agreements on international cooperation with foreign institutions (mutual agreements between faculties/colleges, universities, institutes etc.) that also cover the field of science and research, as well as joint projects. Unfortunately, non-integration of majority of universities, the partial approach to applications, etc. disagreeably affects proactiveness of the majority. Consequently, this type of activity mostly comes down to individual participation in research in larger EU projects where BiH researchers usually obtain their scientific titles and master and doctor degrees in science. The biggest involvement in this segment is visible in biomedical and technical sciences. Efforts invested in development of scientific thought by foreign foundations in BiH should be mentioned as well. Those are: DAAD, Robert Bosch, Konrad Adenauer, WUS, ADA etc., as well as numerous embassies in BiH, that participate in equipping of libraries, purchase of certain magazines, sending researchers and students to foreign universities, assisting in organisation of conferences, etc. A lesser number of regional and local communities grasped the European concept of regional development and perceived its chance to use this opportunity to be a part of certain research projects. Consequently, this led to development of certain research projects that resulted in participation of BiH individuals and institutions, as well as in obtaining of the modern research equipment. 7. FINANCING OF SCIENCE AND RESEARCH ACTIVITIES 7.1 Sources and models of financing of science and research activities Following the solutions that were long ago accepted in the USA, Japan, the EU and other countries whose legislation was subject to analysis, the transition to financing of the field of science and research through funds, in accordance with the previously defined national plan for development of the field of science, imposes itself as something inevitable. There is a tendency to limit direct budget financing as much as possible. Exception to this general tendency is budget financing of public institutions (or enterprises), primarily those that are of special national and economic interest. It is necessary to establish funds, centres or programmes for financing of scientific research; such as those established in Hungary, Slovakia, Slovenia, Czech Republic and Croatia. In some of those countries, use of the funds is entrusted to special public institutions (e.g. in Slovenia and Czech Republic). Important aspect for these purposes is application of the concept of the regional research centres, in line with defined scientific and expert criteria, that will be able to meet development criteria for reaching of the standards set by the European centres of excellence. As a small country, BiH cannot allow for financial or any other luxury of having several „centres of excellence“ in the same fields, and especially not in the conditions that are completely unnatural for the given development. Planners and strategists of the development policy in BiH must be aware of those facts and must aspire to creating a balanced development of the whole country, having in mind science and research, transfer of technologies and available resources. Despite all visible differences, intention of the legislator, based on the EU framework programmes aimed at science development (FP 6: 2002 - 2006 and FP 7: 2007 - 2013) is to regulate the field of science and research so that it is functionally harmonised with higher education. This intention especially became evident in legislations of many transitional countries (Croatia, Bulgaria, Hungary, Czech Republic and Serbia). All the similarities identified while analysing the aforementioned legislations are primarily result of the countries' aspirations to harmonise national legislations with requirements of joining the EU, as well as the policy guidelines given by EU bodies in the field of education, science and research. In accordance with the aforementioned, legal regulations stipulating the field of science and research must fulfil the following basic assumptions: To enable establishment of an integrated area for science and research under equal conditions within the EU; To ensure functioning of the common market; To establish legal frameworks for undisturbed development of cooperation and organisational linking of the science and research organisations in the EU. Taking into account these requirements as well as research results, positive experiences of the EU and other transitional countries, especially of the already mentioned ones, should be followed in the process of passing a strategy covering the issue of development of the field of science and research. Furthermore, their legal concepts should be used since their legislations represent a combination of positive traditional experiences and requirements set by the EU for the future. Sources of financing of the field of science and research can be as follows: a) State funds (budget and other sources) b) Funds of the regional and local communities; c) Funds of enterprises, associations and institutions; d) Own funds of the science and research organisations; e) Funds of the local foundations, legal and physical entities and donations; f) Funds of the foreign foundations, legal and physical entities and donations. When financing science and research activities from the state funds, it is possible to apply a number of financing formats, such as: a) Institutional financing. A certain science and research organisation receives the budget funds as an institution of special interest for development of science with the aim of implementation of the multiannual strategic scientific research programme. Institutional financing from the budget is ensured only for scientific institutions of national importance. b) Project financing. Funds are allocated for implementation of accepted projects through public calls or through direct contracting, and cover all the costs that are directly related to implementation of the planned project activities. Research programme, passed by the competent ministry, defines the financing manners, as well as organisations that can be granted with the project implementation funds. c) Financing of achieved results. Science and research organisations that achieved extraordinary results due to the endeavours of their resources and that gave significant contribution to the development can be especially financially rewarded and motivated. That primarily implies affirmation of science and publishing of papers in prominent world scientific journals, selling of patents, profit from selling of the intellectual property, etc. d) Financing of science and research infrastructure. Programmes for development of science and research infrastructure, that include the premises, information network, laboratory equipment, library, and other internal infrastructure work conditions. e) Financing of staff pool development. These programmes enable development of young researchers and improvement of quality of researchers (student scholarships, writing of master and doctor papers, participation in international conferences and study visits abroad, solving of housing issues etc.). f) Co-financing of projects. Budget funds can be used for co-financing in projects where the funds from foreign financiers or regional and local community were ensured. Institutional financing Basic research Applied research National development programmes Project financing Technological development Scheme 7.1 Link between the type of financing and the type of research Institutional financing may be applied only with financing of fundamental (basic) research and the applied research, where no recognisable demand in the market of research services exists yet, and the research is in line with the science research and development priorities defined in a national strategy on science and development research. Project financing can be applied in all types of research. Funds allocated from the state budget are irreclaimable, in line with the project selection and fund allocation conditions. With the aim of creating conditions for development of science and research, and development of organisations that are holders of innovation and technology development, the state should define certain tax relieves, i.e. tax and customs exemption when it comes to technical equipping of the science and research organisation, as well as including the already paid tax into the project fund. 7.2. Financing of science and research activities until 2015 BiH and its Entities do not have a global development strategy for a longer period and that prevents a clear overview of the future status of any of the fields. However, the field of science and research is the last field that should be waiting for the national strategy since it has to look for its benchmarks very widely, territory- and time-wise, in successful experiences and practices of others. In addition, it is a precondition, and must be an instigator of the overall development of BiH. On the basis of the achieved results in the last five years and unused capacities and resources, and starting from the great need for decreasing the developmental differences in comparison to the EU and the countries in the region, it is realistic to foresee that in the period until 2015 BiH has to and can achieve growth dynamics of the Gross Domestic Product (GDP) for at least 5%. Such growth dynamics will not be possible without bigger involvement of science and knowledge in all the fields, especially in the real sector that has to be considerably more competitive than nowadays. By achieving such growth dynamics, BiH would reach the development level that certain member states had on their entering the EU 2007. Certainly that by that time, most of the EU member states, if not all of them, will be allocating 3% of the GDP for science, therefore it would be really devastating for BiH if at that period it does not reach at least 1% of the GDP expenditure for the field of science and research. That level of 1% GDP expenditure is the level already reached by our neighbouring countries, Croatia and Serbia. Table VII-1. shows the GDP amount in the last three years and its estimated growth until 2015, i.e. until the point in time when BiH should supposedly become an EU member state. Table VII-1. Gross Domestic Product (current prices) RS FBiH BD BiH RS FBiH BD BiH Year 2005 2006 2007 2008estimate. GDP, current prices, in million KM 5.617 10.831 489 16.937 6.499 12.146 476 19.121 7.357 13.735 546 21.638 8.500 15.700 625 24.825 33,2 34,0 34,0 34,2 Structure - %63,9 2,9 63,5 2,5 63,5 2,5 63,3 2,5 100 100 100 100 GDP projections 2009-2015 (growth rate: 5%) 2009 2010 2011 2012 8.994 9.516 10.069 10.654 16.433 17.174 17.949 18.759 654 687 721 757 26.081 27.377 28.740 30.171 34,5 34,8 35,0 35,3 63,0 62,7 62,5 62,2 2,5 2,5 2,5 2,5 100 100 100 100 11.273 19.606 795 31.674 35,6 61,9 2,5 2013 11.928 20.490 835 33.254 35,9 61,6 2,5 2014 12.621 21.415 877 34.913 36,1 61,3 2,5 2015 Note: GDP - Gross Domestic Product; RS – Republic of Srpska; FBiH – Federation Bosnia and Herzegovina; BD – Brcko District; BiH –Bosnia and Herzegovina 100 100 100 of For this purpose two scenarios were given (starting with the estimated total expenditure for the field of science and research in 2008 when it was 0,1%GDP); the first the minimalist one – that at the end of the period, expenditure for the field of science and research will be only 0,5% GDP, and the second – the imperative one and „realistically probable“ – reaching of the 1,0% expenditure for the field of science and research in 2015. According to the first scenario expenditure for the field of science would increase for seven times, and according to the second one the increase would be fifteen times bigger in comparison to the current situation (Table VII-2). According to the second scenario, which would ensure the funds, which are inconceivable with the current prices, in amount of 350 million KM (178 million €) for the field of science and research, approximately 4.500 employees with about three thousands researchers could be financed (in 2006: Croatia – 8.543/5.778; Slovenia - 9.789/5.857; Latvia – 6.500/4.024; Bulgaria – 16.321/10.336 etc.). However, even with 1.178 researchers per 1 million inhabitants in 2015, Bosnia and Herzegovina would not be able to reach the lower threshold which is now position held by Bulgaria with 1.344. researchers per 1 million inhabitants. Provided that funds are ensured for engagement of four and a half thousand employees in the field of science and research, their participation in the overall employment rates will increase from the current marginal 0,07% to 0,59%, which is somewhat below the level/position occupied by Croatia (Tables VII-3 and VII-4). Table VII-2. BiH: Projected expenditure for science and research funds in period 2008 – 2015 Year % GDP RS FBiH BD BiH 2008 2009 2010 2011 2012 2013 2014 2015 Expenditure for the field of science and research (000 KM) – scenario 1. 8.500 15.723 623 24.846 0,10 11.319 20.680 823 32.822 0,13 15.072 27.201 1.088 43.361 0,16 20.070 35.777 1.438 57.285 0,20 26.726 47.057 1.900 75.683 0,25 35.589 61.894 2.511 99.993 0,32 47.390 81.408 3.318 132.117 0,40 63.105 107.076 4.385 174.566 0,50 2008 2009 2010 2011 2012 Expenditure for the field of science and research (000 KM) – scenario 2. 8.500 15.723 623 24.846 0,10 12.497 22.833 909 36.239 0,14 18.373 33.158 1.326 52.857 0,19 27.012 48.152 1.935 77.099 0,27 39.714 69.926 2.823 112.463 0,37 2013 2014 2015 58.388 85.844 126.210 0,52 0,72 1,00 000 KM 101.547 147.466 214.150 4.120 6.011 8.770 164.054 239.321 349.130 BiH: Izdvajanje za NI fondove 2008 - 2015. 400,000 FBiH RS DBr 350,000 300,000 Scenario 1. Scenario 2. 250,000 200,000 150,000 100,000 2015 2014 2013 2012 2011 2010 2009 2008 2015 2014 2013 2012 2011 2010 2009 0 2008 50,000 Image 7.2. Projected expenditure for science and research funds in period 2009-2015 Source: For 2005-2008 data of the Republic Institute of Statistics RS and Federal Institute of Statistics FBiH, and for period 2009 – 2015 author's estimations Note: GDP – Gross Domestic Product; RS – Republika Srpska; FBiH – Federation of Bosnia and Herzegovina; BD – Brcko District Table VII-3. BiH : Project allocated funds for scientific research and employment in the S&R sector Scenario 1 Year Allocated for S&R sector % GD P 000 КМ Scenario 2 Number of employees Total Allocated for S&R sector Researchers % GD P 000 КМ Number of employees Total Researchers 2008 0,10 24.846 454 272 0,10 24.846 454 272 2009 0,13 32.822 571 347 0,14 36.239 631 384 2010 0,16 43.361 719 443 0,19 52.857 876 540 2011 0,20 57.285 904 565 0,27 77.099 1.217 761 2012 0,25 75.683 1.138 721 0,37 112.463 1.691 1.071 2013 0,32 99.993 1.432 920 0,52 164.054 2.349 1.509 2014 0,40 132.117 1.802 1.173 0,72 239.321 3.264 2.125 2015 0,50 174.566 2.267 1.496 1,00 349.130 4.534 2.993 Year 2008 2009 2010 2011 2012 2013 2014 2015 Employed in S&R per 1 million habitan ts 118 148 187 235 296 372 468 589 Scenario 1 Allocated for S&R sector (KM) Per capita Per employee 6 9 11 15 20 26 34 45 54.727 57.482 60.307 63.368 66.505 69.828 73.317 77.003 Employed in S&R per 1 million habitan ts 118 164 228 316 439 610 848 1.178 Scenario 2 Allocated for S&R sector (KM) Per capita Per employee 6 9 14 20 29 43 62 91 54.727 57.482 60.307 63.368 66.505 69.828 73.317 77.003 Table VII-4. Overview for 2006 (funds allocated for the S&R sector in €) Employed Employed in S&R in S&R per 1 per 1 Country Per capita Per employee Per capita Per employee million million habitan habitan ts ts EU27 4.563 432 179.655 FIN 11.063 1.094 142.429 SLO 4.870 242 82.692 RUM 952 21 18.346 BUG 1.344 16 11.703 HRV 1.924 67 34.777 Scenario 1 for BiH 2008 2010 2015 118 187 589 3,1 5,6 23,0 Scenario 2 for BiH 27.982 30.851 39.371 118 228 1.178 Number of habitants in BiH for the entire period 3.850.000; 3,1 7,2 46,5 27.982 30.851 39.371 1€=1,955830 KM Experiences of European countries, specifically the experience of countries in transition and new EU member states, show that the level of development is the condition for the structure of the sources for the S&R sector. By rule, the participation of state funds is more present in lower levels of development, firstly budget funds, and with the increase of the level of development grows the significance of the business sector (companies) in funding. One should have in mind the fact that some large and economically powerful countries provide enormous funds for scientific research (space, military, genetic research, etc.) and the inclusion of large state funds is inevitable. In the EU more than half of the S&R funds are provided by the business sector (2006: 55.4%). Approx. 1/3 is provided by the states (2006: 34.2%) and the remaining approx. 10% is provided by external sources. The ratios within the EU are high, and the business sector as the main contributor is most present in Germany (68.15%). Finland (66.1%) and Sweden (65.7%), and the state sector in Slovakia (55.6%). Poland (57.5%). Bulgaria (61.9%) and Romania (64.1%). The examples of France and Great Britain show that the S&R sector structure dictates a more active participation of the state (space and atomic research). Croatia also established a favourable ratio in funding the S&R sector where the business sector provides 42%, the state 52% and others 6%. Concerning the users of scientific research funds, the ratios have not changed significantly. Scientific research organisations in the business sector receive almost 2/3 of the total funds in the EU 27, institutions in the state sector – only 13.5% and the researchers in higher education system - 22.8%. The differences in EU member states are large in this case as well, because the business sector is dominant in almost all member states, specifically in Sweden (74.9%), Germany (69.6%), Belgium (67.9%) and Austrija (67.7%), and the state sector only in Bulgaria (64.5%). In five countries, including Croatia as a candidate, the largest part is used by research organisations in higher education (40-50%). In BiH, the majority of funds for the scientific research sector is provided from the entity and local community budgets. There is no realiable data on the allocations of funds by companies to this purpose, but these are only marginal. This specifically refers to the industry in which companies are privatised and the new owners still show no interest for investing into this sector. In areas where the owners are not from BiH, it is visible that they have no intentions to strengthen the scientific research sector in BiH companies, that is, they maintain it in their original locations. Table VII-5. BiH : Structure of the sources of funding the S&R sector 2008 - 2015 Year 2008 2009 2010 2011 2012 2013 2014 2015 2008 Funding sources for S&R Structure of the funding source (000 КМ) (%) Foreign Foreign Business State Business State funds and funds and sector sector sector sector donors donors Scenario 1 3.727 18.635 2.485 15,0 75,0 10,0 5.842 23.697 3.282 17,8 72,2 10,0 8.976 30.049 4.336 20,7 69,3 10,0 13.691 37.865 5.729 23,9 66,1 10,0 20.889 47.226 7.568 27,6 62,4 10,0 31.598 58.396 9.999 31,6 58,4 10,0 47.166 71.740 13.212 35,7 54,3 10,0 69.826 87.283 17.457 40,0 50,0 10,0 Scenario 2 3.727 18.635 2.485 15,0 75,0 10,0 6.088 10.360 17.424 28.003 46.427 72.993 119.402 2009 2010 2011 2012 2013 2014 2015 26.418 36.947 51.348 71.976 98.432 136.413 185.039 000 KM 3.733 5.550 8.327 12.483 19.194 29.915 44.689 16,8 19,6 22,6 24,9 72,9 69,9 66,6 64,0 10,3 10,5 10,8 11,1 28,3 30,5 60,0 57,0 11,7 12,5 34,2 53,0 12,8 BiH: Izvori finansiranja NID 2008 - 2015. 400,000 Državni sektor Poslovni sektor Inostrani finansijeri i donatori 350,000 300,000 250,000 Scenario 1. Scenario 2. 200,000 150,000 100,000 2015 2014 2013 2012 2011 2010 2009 2008 2015 2014 2013 2012 2011 2010 2009 0 2008 50,000 Chart 7.3. BiH: Project sources of funding the S&R sector 2009-2015 After a detailed insight into the current situation, it is clear that without a more active participation of supportive funds by the state, it is not possible to increase the level of scientific research capacities, personnel and infrastructure. Reaching the structure of S&R funds identical to those in the EU, even those less developed, will not be easy even until 2015. One would consider achieving a great success if the proportion of the scientific research funds from table VII-6 would be reached, i.e. 2/3 would have to be provided by the state (budget), 1/3 – business sector and a little over 10% should be provided by external sources, firstly the EU funds within the SAP Agreement. Table VII-6. BiH: Changes in the structure of users of S&R sector funds 2009 – 2015 Users of S&R sector funds (%) Scientific research institutions in the business sector 15,0 19,9 24,6 29,0 33,1 36,9 40,6 44,0 Year 2008 2009 2010 2011 2012 2013 2014 2015 SR institutions of the higher education State SR institutions 20,0 19,2 18,4 17,7 17,0 16,3 15,6 15,0 Non-profit and other organisations 60,0 56,2 52,7 49,3 46,2 43,3 40,6 38,0 5,0 4,6 4,3 4,0 3,7 3,5 3,2 3,0 BiH: Korisnici NI fondova 2008 -2015. 100% 4.6 5.0 4.3 4.0 3.0 3.2 3.5 3.7 90% 80% 70% 60.0 56.2 52.7 49.3 46.2 43.3 40.6 38.0 60% 50% 40% 18.4 30% 17.7 17.0 16.3 15.6 19.2 20.0 20% 10% 15.0 15.0 19.9 2008 2009 24.6 29.0 33.1 2010 2011 2012 36.9 40.6 44.0 2013 2014 2015 0% NI institucije u poslovnom sektoru NI institucije visokog obrazovanja Državne NI institucije Neprofitne i druge organizacije Chart 7.4. Project users of SR funds for the period 2009-2015 Essential changes must be made in the distribution of available S&R funds,. We must be free of prejudice towards research organisations in the business (private) sector and give them an equal opportunity and funds for support. For all allocated funds, the state must ensure a much stronger control and monitoring of expenditure as well as the scientific research follow-up and external evaluation of projects based on defined European methodologies and principles. Despite the very limited funds provided for the S&R sector in BiH, we are witnesses of easily spent allocated funds, even in very small amounts, as well as the practice that evaluating of project funds and results is done only pro forma. 8. SWOT ANALYSIS Since BiH has no high quality and comprehensive analysis of its scientific research system, i.e. the series of standardized quantitative indicators, and based on the presentations from the previous chapters, as well as discussions and analysis at round tables organised to examine the current situation in this sector in BiH, the following SWOT analysis was produced (advantages, weaknesses, posibilities, risks) concerning the S&R sector in BiH. The advantage of such an analysis is that it enables us to see not only the existing, but also the potential advantages and weaknesses. This type of approach enables the development of goals and measures, which will also encourage positive and change the negative elements of the system. ADVANTAGES/ STRENGTHS 1. certain number of prominent scientists and researchers; 2. large number of higher education institutions; 3. preserved scientific research potential at higher education institutions; 4. existence of a number of successful higher education programs, including modern teaching methods, which encourage active participation of students and provide broad theoretical knowledge necessary for the modern trend of interdisciplinarity; 5. large diaspora ready to engage in the S&R sector; 6. existing scientific research and developmentalresearch institutes; 7. geographical position of BiH; 8. developed and modern telecommunication net; 9. ecology, natural resources, clean water, bio-diversity, etc. WEAKNESSES: 1. years of marginalization of science and research (low level of public awareness in terms of the importance of RTD); 2. poor regional and international RTD cooperation, insufficient attendance at international events; as well as poor international competitiveness of our RTD sector; 3. non-existence of a high quality system of evaluating research work and modest applicability of the RTD results in the economy; 4. divided RTD sector and insufficient care for high quality reproduction of scientific personnel; 5. non-existence of a strategic plan for the scientific development and appropriate priorities; 6. non-existence of a true selective and motivational system of scientific evaluation and measuring the effects of science to the increase of the GDP; 7. greatly ineffective, insupportive and outdated higher education system, and insufficient care for high quality reproduction of scientific personnel; 8. demotivating egalitarism in rewarding scientific achievemetns which encourages mediocrity and creates an incompetitive environment; 9. opportunism in evaluating the results of scientifis research work; 10. little knowledge of the conditions of global competitiveness; 11. insufficient level of scientific research leadership and management. Unsatisfactory level of scientific entrepreneurship shown in the marginal participation of extrabudgetary sources of funding; 12. education not focused on the increase of the competitiveness of products and RTD as a whole; 13. modest financial investments into the RTD sector (far below the European average) as well as low level of participation of the business sector in funding S&R; 14. poor economical-social status of the bearers of RTD activities; 15. non-exiestence of statistical indicators for RTD. 16. non-existence of adequate registries of scientific research infrastructure (institutes, personnel....); 17. poor support to publications of scientific work; 18. poor usage of existing RTD infrastructure and insufficient investments into the RTD infrastructure 19. inadequate academic and scientific research network in BiH; 20. «brain-drain» POSIBILITIES / CHANCES 1. use of EU funds to improve the RTD sector; 2. establish the EU modela of education and research; 3. potential of young scientific research experts; 4. level of development of science in direct vicinity, enabling a better connection; 5. possibilities given by the globalization in all life spheres; 6. low price of scientific research personnel in BiH compared to developed countries; 7. possibilities provided by the transfer of technologies aiming at an accelerated adoption of knowledge; 8. higher level of engagement of our experts from abroad; 9. competitive price of scientific research work in BH compared to abroad; RISKS / THREATS 1. lack of understanding of the decisionmakers for the importance of the RTD for the country's development; 2. poor business awareness of capital owners; 3. continuation of the marginalization of the RTD at all levels; 4. no tendencies to make changes and fear of failure, based on tradition and in which changes are always connected to risks, and not benefits; 5. no tendencies to take individual responsibility which is part of the cultural heritage, but also a rational reply to a nonmotivational system of rewarding; 6. non-existence of the lifelong learning culture; 7. lack of understanding of social consequences due to scientific research immigration (brain drain). 10. increased demand for scientists, researchers and experts worldwide provides a possibility for pro-active scientific communities; 11. globalisation which intensifies competition and enables a bigger chance for products based on knowledge and scientific innovations; 12. need of local economic subjects for the development of the RTD sector; 13. unused space of high technologies in which it is possible to jump in by the fast transfer and application of innovations. 14. introduction of mechanisms for the popularization of scientific achievements 15. bigger effects of the scientific research work to the economy 8. avoiding international competitiveness and closing inside the national framework; 9. inadequate evaluation of work results by the expert and scientific community; 10. expecting the state to resolve all problems. 11. «brain-waste» 9. DEVELOPMENT PRINCIPLES, VISIONS AND PRIORITIES FOR THE DEVELOPMENT OF SCIENCE IN BIH 9.1 Development principles (1) (2) (3) (4) (5) Science as a common good and society's moving force: Science represents a multidimensional moving and development force of the society. It is the common good representing the grounds for material and spiritual progress and transformation. New knowledge based on science is both a resource and a product and the product has its market value which becomes higher with quality. Therefore, science in BiH should in the future be the primary production force and represent the pillar of the economic and common social development. Excellence: In order to be the backbone of the economic and overall prosperous social progress, the development of science must be focused on reaching excellence. Only internationally acknowledged, competitive scientific work can be the backbone of the development. Contribution to innovativness and creativity: Innovativness emphasizes discovering something new, developing new ideas and learning, its application and commercialization. Improving competitiveness and mobility of human resources: Only a competitive reserach personnel, in the broadest meaning of this term, and mobile human resources ready to give scientific and research sacrifice to achieve scientific ideals, represent concrete human resources in the modern definition of the European research area today. Scientific research work verified at the market: A market comprehended in the widest possible sense (market of goods and service, work and capital, knowledge and information) is one of very significant criteria of success. The results of some research in the field of social sciences and humanities are exempt from the market criteria of successfulness, as well as the results of fundamental research which cannot be directly transformed into a product or services. (6) Protection of civilisation heritage and national identity: The development of the European research area includes the full meaning of the word protecting all positive traditions of the civilisation heritage and national identity as a necessary pre-requisite of scientific curiosity and differences and the synergy of ideas. (7) Motivation and interest of different subjects to invest into science: this ensures the necessary, various types of research (fundamental, applied and developmental). (8) Public influence: Public influence includes the identification and scientific analysis of developmental problems, their interpretation to the public and those who make social decisions, and proposing useful measures for its resolving. 9.2 Visions Visions of the development of science in BiH begin with the picture of the society we wish to have, and this represents the transformation of the BH society into a society of knowledge, i.e. the development of globally competitive economy based on knowledge as well as a society of high civilisation values. This means: Acknowledging science as a national strategic value with the achieved social and political concensus and therefore the investing into its development, Increase of the role of knowledge and positioning BiH to the highest possible place on the world's innovativness scale; Enviable level of international cooperation and engagement in the EU network of scientific research activities, Regional connecting and cooperation with the scientific resarch sector, Education system creating highly trained, creative and motivated individuals capable of affecting the accelerated and harmonious development of the overall BiH society, Planned development and human resources management, High level of institutional and personnel potential for scientific research, Responsibility of scientists and scientific institutions for the overall social development, Competitive and sustainable growth, i.e. the increase of competition capacity of BiH economy at the global market, Use of knowledge for the purpose of increasing additional value of the production in BiH, Economic and social development of the country, Multicultural tolerance and equal engagement in European and worldwide civilisation flows. 9.3 Priorities In accordance with the objectives and tasks of the Strategy and the current situation in the field of science in B&H (state of institutions, infrastructure, financial and human resources), priorities for development of science in B&H until 2015 have been identified. In determining priorities, all the recommendations that were given by foreign expert teams working on analysis of state of art in science and technology in B&H in recent years, were taken into account, as well as positive experiences from the neighbouring countries. Many areas of the society have already developed their strategies. Indeed, the priorities that had been set in Strategies, were respected when defining development principles, visions and priorities for the science in B&H. Given the level of generalization, identified priorities are divided into general priorities and priorities in certain areas of science and technology. 9.3.1 General priorities Realization of the identified general priorities will create the necessary prerequisites for the improvement of general capacities of B&H science and reduce the discrepancy between modern understanding of the importance and role of science in developed countries and in our country. At the same time, it will enable B&H to keep the pace and maintain contact with European science. In addition to the priorities, the recommendations for their implementation are given. (1) Establishment of the legal regulation of scientific research and technological activities and coordination of internal and international scientific research and technological cooperation of Bosnia and Herzegovina Recommendations Primary and secondary legislation relating to the scientific research activities (and education) must be fully elaborated and in accordance with the constitutional structure of B&H, mutually complementary, harmonized at the state-, entity- and cantonal level, and in compliance with international legal practice. Continuously work on creating the preconditions i.e. reaching agreement that science and scientific research work is regulated at the state level, in line with the European principles. Strengthen the capacities of the Ministry of Civil Affairs in the field of science and research. In case that it is not possible to accomplish the above mentioned in the foreseeable future, the basis for conducting and development of scientific research activities shall be regulated at the state level thus allowing this area to be equally regulated at other levels of government to the largest extent possible. Establish funds to support the development of science and scientific research work at all levels of government in Bosnia and Herzegovina. Establish an adequate system of financing scientific research activities, evaluation and awarding of scientific results, and effective protection of intellectual property. With targeted measures (removing administrative obstacles, tax reliefs, subsidies, partnerships between governmental and non-governmental sectors, etc.) encourage business investments in scientific and technological development, research and innovations. Create legal and other conditions for a smooth transfer of knowledge and technology, as well as the participation of B&H scientific research community in European scientific research community; and foreign scientists and B&H scientific diaspora in the national scientific research projects. (2) Strengthening human resources potentials and attaining a critical mass of high quality researchers for scientific research activities through training a new generation of scholars at our universities or abroad, and upgrading of existing scientific workers for new techniques and challenges. Recommendations Increase the total number of students as well as the net mobility of young people from secondary school level to higher education. Increase the number of students in the faculties of natural and technical sciences by enrollment policy and stimulation measures. Finance education based on the forecast of the needs identified by the strategies for development of B&H, entities and cantons. Increase the proportion of students of postgraduate studies in relation to graduate studies so that the ratio in the coming planning period would be approximately 70% graduate and approximately 70% postgraduate studies, thereby increasing the number of people entering the scientific research sphere. Increase the quality of mentor’s work on graduation, master and PhD papers. Mentors must be competent teachers and scientists/scholars. In accordance with the Bologna Declaration, increase quality, efficiency, flexibility, multidisciplinarity and interdisciplinarity of education. Develop the Programme of development of young scientific research staff. The programme would determine the necessary staffing resources per orientation and scope, and financial support for post-graduate studies, master’s and doctoral thesis, participations in scientific projects, participations at scientific conferences, specializations abroad, solving social problems of young researchers, etc. Develop the Programme of development of targeted specialized experts in the economic sector. Develop the Programme of employment of young scientific research personnel. Open 5-7% new working positions per year for young and promising researchers. Finding legal frameworks for relieving scientific institutions from nonperspective and inefficient scientific staff. Finding legal frameworks for engaging and stimulating the work of distinguished scholars/scientific workers after their retirement. Enable scientific institutions to award the status of associate scientific advisor to our scholars/scientists who are employed abroad. Establish awards for scientific research results. Accelerate the reforms and ensure the continuation of the initiated processes. Provide mechanisms for monitoring and realization of demands for new types of knowledge and skills. Provide the legal, institutional and educational support to overcome the situation where quite low percentage of the working force has a stable connection with the formal labor market. Take into account the individual element and allow a person access to education and training that will ensure retaining of the job or obtaining employment in the formal sector. It is necessary to provide financial resources for raising general education level, as well as for education and training in area of key competencies. Raise awareness about the need for lifelong learning as a prerequisite for employment and retaining of the job. Create preconditions in the education system and legislation relating to employment that will enable young people to easily enter into an employment relationship. Accelerate the reform of higher education that will provide the graduates with appropriate competencies for a dynamic labor market. (3) Development of a system for evaluation and monitoring of the quality of work in the field of scientific research activities Recommendations Implement continous measuring of relevant parameters of scientific work by world standards. Train personnel for continuous monitoring and evaluation of scientific research work (to measure quality, creativity, usability, competitiveness, efficacy, etc.). Create prerequisites (organizational and financial) so that the research projects of strategic importance are evaluated by local and foreign scientists of international reputation. Create a register of competent reviewers/editors. Establish a service for measuring the scientific work per international standards within departments of statistics. Provide a subscription to the database Current Contents (CC) and Science Citation Index (SCI). Without access to the CC database, the achieved quality and volume of the scientific production can not be measured; and without access to SCI database, the effects (impact) of the scientific achievements cannot be measured. Continuosly conduct the examination of education quality and interests of the young population of primary and secondary school age as part of national strategy for development of scientific research activities through running PISA, TIMSS and ROSE (Relevance of Science Education) tests. (4) Development, implementation and standardization of criteria for selection in scientific research and science teaching professions (appointment to academic titles) Recommendations Harmonization of scientific research and science teaching profession and the criteria for election to positions with international standards (the so-called strict habilitation procedure). Harmonize the criteria for selection of scientific and scientific-teaching titles in all institutions in this field in B&H. Establishment of minimum standards in so-called transition period for election in science teaching and scientific positions. (4) Establishment of scientific-technological data base – statistical parameters (indicators): human resources in science and technology; research institutions; capital research equipment; literature and publishing; projects with relevant indicators; data on patents; statistical indicators in line with European and global standards i.e. OECD/UNESCO standards). Recommendations: - Implement a radical reform of statistical systems in the field of science, research and technology in accordance with internationally recognized standards and recommendations on the whole territory of Bosnia and Herzegovina. Prescribe a uniform basis for the development of classification of scientific fields, fields and industries based on the recommendations stated in the Frascati manual (OECD methodology), i.e. CERIF classification. Create an integrated scientific information management system in Bosnia and Herzegovina, which would include existing databases and enable their appropriate and transparent browsing, i.e. comparability of scientific results from the scientific community of Bosnia and Herzegovina with the achievements the scientific communities of other countries that use the same or similar standards. - - (5) Strengthening research infrastructure (experimental equipment, IT equipment, libraries, publishing) Recommendations Increase investments in research equipment, especially in priority scientific areas, as well as in the renewal of research infrastructure. Enable unlimited access to electronic scientific journals (Science Direct, EBSCO, etc.). Work on internationalization and raising the level of domestic scientific journals with the ultimate goal to become internationally referential - co-financing activities for the acquisition of the level of the referential scientific journal. Strengthen support for the issuance of scientific literature (acoording to the criteria of high scientific value which assumes the relevant reviews). (6) Building and maintaining academic and research and information-communication infrastructure and network Recommendations Build a national network respecting the existing constitutional solutions for financing R & D and provide stable maintenance of the network; financing connection for the Academic Netowrk of Europe, permanent connection for I&R and education institutions in B&H. Constantly innovate technical solutions for network binding by modern technical achievements and practice that brings new and cheaper solutions for the same purpose with each new generation. Accelerate the process of liberalization of telecommunications services and infrastructure bound by optical networks. Inclusion of national e-network in BiH in the development of network infrastructure at higher levels. Relevant ministries and E-network of BiH should follow the EU directives for telecommunications and legal provisions that provide more favorable conditions for the functioning of the national networks. Continue to use good connections with Internet service providers in order to increase the capacity of the network (using a wireless radio connection to establish a WiMax service if the same proves as the system of the adequate bandwidth). Give emphasis on services and applications that make use of advanced network and usage of potentials for better cooperation in the education sector and the science research activities. As a unique and distinctive entity, academic community should focus on these services. Use opportunities provided by the EU Framework Programs (FP 7) for the future increase in synergetic cooperation for joint RTD projects in BiH. Activate the cooperation on the construction of E-Network of BiH, which will develop the network applications and services for support to the advanced research and education institutions in B&H. (7) Stimulation and raising the level of integration of science in universities, institutes and research centers in the economy Recommendations Establishment of the institute within the university, as an important way of integration of science and education and the promotion of scientific research work. Ensure compliance with the legal provision for the participation of scientific workers employed in public and economic institutions, businesses and institutions of public administration in the process of higher education at all levels (projected share to 25%). Ensure that one of the criteria of evaluation / accreditation of higher education institutions is the participation of scientists employed in public and economic entities (institutes, research centers, etc.) as well. Co-financing of multidisciplinary and interdisciplinary projects, especially those in whose realization the researchers (scientists) employed at universities, public and economic institutions are participating. Networking knowledge in the field of education, research and innovation in order to accelerate economic growth in the country. (8) Rational usage of scientific potentials Recommendations Enable mobility of people, knowledge and ideas between independent institutes and universities. Stimulate projects in which a number of institutions are participating. Stimulate projects that contribute to balanced regional development as imperative determinant for European integration. Perform the strategic definition of national priorities for the development of scientific and technological parks, centers of excellence and other innovation forms, in accordance with the new situation in terms of development and trends that are followed by the institutions of B&H and region. Make organizational changes in the universities that will strengthen scientific research work as necessary component for adequate and quality teaching (as the first element, make the final integration of the B&H universities). (10) Intensification of the involvement in the European trends of science and technology through participation in scientific research projects and intensification of the participation of BiH science in the system of international exchange of knowledge international cooperation Recommendations Development of strong departments for international cooperation in the universities, independent institutes and centers of excellence. Encourage the formation of centers of excellence and scientific and research parks in a proportion adequate for B&H and their international networking. Align thematic frames and priorities in science with the priorities of the framework programmes of the European Union. Provide financial resources to support participation in COST and EUREKA programmes and renewal of participation for FP. Co-finance joint international research projects that are of interest for B&H and even regional development. (11) Inclusion in the trends of world science Recommendations Align thematic frames for research with the trends in the world. Specially stimulate the work of prominent scholars who achieve excellent results in areas that are in the trends of world science. Prefer international cooperation through organized regional approach to SEE countries and cross-border cooperation, which will be the trend in the future because of the large number of small countries applicants. (12) Creation of a technological base of society (innovation, technology transfer, intellectual property protection, commercialization and application of scientific discoveries). Recommendations At the level of B&H, regulate a basis for performance and development of innovative activities and thus allow this area to be regulated equally at all other levels of government to the greatest extent possible. Provide stimulating measures to the activities taken in order to create new products, technologies, processes and services, or substantial improvements of existing ones, and in accordance with market needs. Establish cooperation of ministries responsible for science and technology with other ministries in order to promote the overall innovation capacity, horizontally at all levels: state, entity, cantonal. Establish cooperation of the ministry responsible for science and technology at the level of B&H (MoCA) with entity and cantonal ministries and local governmental units with the aim of promoting innovation activities. Establish commissions in the ministries responsible for science and technology, to monitor and encourage innovative activities in specific areas and industries, for the pupose of coordinating the work and achieving the common interests, and for the purpose of evaluation of innovation creativity. Establish a Register of innovation activities in the ministries responsible for science and technology, especially with data on high-tech economic companies (those that invest more than seven percent of its expenditures on annual basis to research and development) and medium-technology economic companies (those that invest between three and seven percent of its expenditures on annual basis to research and development). Only subjects that are registered in the Registry can be beneficiaries of the state, entity and cantonal incentive measures and budgetary resources for the development of innovative activities. Improve the protection of intellectual property rights by adoption of appropriate legal regulations and providing of funds for these purposes. Encourage increase of the number of recognized patents in research institutions and enterprises, their licensing and commercialization, as a means of economic development. Three to five percent of funds for research-scientific activities should be directed to commercialization of scientific ideas. With targeted and synchronized measures of government at all levels enable the strengthening of human resources and infrastructure as a basis for developing a system of research, technology and innovation. Create preconditions and provide continuous support to the establishment of modern innovation centers and scientific-technological parks, and establishment of functional networks throughout Bosnia and Herzegovina with a clearly defined minimal set of involvement of key factors (universities, local and regional communities, state, professional associations, private sector and others). Promote a partnership of public and private sector in establishing innovation forms and organization (technological parks, centers of excellence, etc.). Create a stable system of financing and ensure the progressive increase of investments in the field of science, technology and innovation both in the state and private industry / business sector, with the ultimate goal of establishing the ratio recommended by the Lisbon strategy. Encourage economic (industrial) research and development, cooperation between industry and science, and commercialization of research results and innovations. Encourage cooperation, partnership and active participation of local institutions in European scientific research and research and development programs, as well as in the international exchange of knowledge. Create a positive climate in public about the usefulness and necessity of investment in science, innovation and technology, and emphasize their importance in the overall social and economic progress of the country. Organize programmes for development of leadership and managerial knowledge and skills in science. (13) Strengthening cooperation between science and industry with the goal of transformation of education and intellectual capital into the strategic development resource Recommendations Encourage connection of scientific institutions and business sectors through research projects and flexible programmes of lifelong learning. Encourage strategic partnership of universities, public and private institutes and business sector through the establishment of scientific and technological parks. Encourage the establishment of innovation organization (production and development centers, research and development centers, innovation centers). Encourage the establishment of agencies for the commercialization of scientific research in order to connect scientific and economic subjects, and obtaining financial and legal support for greater involvement of science in market of products and services. Encourage profiling of universities in accordance with the requirements of balanced regional development of the country. Enable, through legislation, that scholars can establish private knowledge-based companies that are not in contradiction with their engagement in universities (the so-called spin-off and spin-out companies that professors usually establish with their graduates / postgraduates as a result of joint cooperation). (14) Improvement of material base (resources) of science, sources of funding and allocation of funds Recommendations Gradually increase allocations for research with the aim to reach the level of spending on research-scientific activity to 1% of gross domestic product by 2015. This is the level that our neighbors, Croatia and Serbia came close to. It is certain that the majority of EU member states, perhaps all, will set aside about 3% for science in 2015. Realistic assessment is that B&H can achieve growth of gross domestic product of at least 5% in the period until 2015, thus allocating 1% of GDP which would provide almost 178 million €. According to current prices, this could finance over 4.500 employees with about 3.000 researchers. Encourage the appropriate authorities at the level of regions, cities and municipalities to co-finance, from its budgets, the projects and other programs that are financed from the state or entity budget funds, or to finance their own projects, programs and studies. Create the preconditions for a gradual increase of business sector investment in the research scientific activity through legislative and organizational reforms with the aim that in 2015 the business sector invests approximately 33% instead of the current 10-15%. Stimulate donations by tax benefits and transform the financing of universities from treasury system of work, which to a large extent represents the obstruction for the development of science and research, to financing through the fund for higher education and science, as it is the practice in most EU countries. In addition to teaching and science activities, universities also have a research and development function in society and cannot be treated as primary and secondary education. Introduce means for specific purposes in all relevant ministries for priority economic sectors, that will be used as support for the development, research and innovation as well as support for the establishment of research and development centers (for example, a possible model is a model of incentive funds for agricultural development in Republic of Srpska for strengthenining of the capacities of scientific and academic institutions in the field of Agricultural Sciences, and funds for co-financing of the science research activities from the general funds of useful functions of forests). In the allocation of funds, available in the public sector for science research activity, gradually increase investment in science research institutions in the business sector with the aim that the ratio of investment in research in the business sector versus investing in research in the public sector is about 40:60% by 2015 instead the current ratio of 15:85%. . Strengthen mechanisms for the evaluation of projects especially those with longer implementation time and greater financial funds (base research, etc.). Find solutions for tax and customs exemptions and state guarantee for the loans of science research institutions when providing research equipment. Establish financial and tax regulations that will better encourage public and private partnership in science research activities. (15) Promotion of scientific research activities and raising public awareness and confidence in science and technology Recommendations Continuous presentation of achievements to the public. Establish cooperation with the media in order to popularize science and increase awareness of the public in relation to the role of science in the overall economic and social development of the country. Carry out popularization of science among young people. Develop a program to popularize science in elementary and secondary schools. Work on providing scholarships for the best secondary school students who are enrolling the production-oriented faculties. Support for publishing activities, conferences, scientific and professional societies and associations (to create preconditions for their establishment in case they do not exist). Apart from assisting development of local scientific and technical publishing, and creating a network of professional cooperation, this also promotes the science and proffesion. Make the promotion of successful scientists and inventors. Establish cooperation between relevant ministries (responsible for science and technology, education, culture, family, youth, ecology, economy, finance, etc.) in order to strengthen public awareness and confidence in science and technology as a powerful factor for the overall prosperity of society. Realization of this goal will bring change of the general attitude towards investment in science and technology. 9.3.2 Priorities in different fields of science and technology The official international classification of scientific and technological areas (FOS classification) per Frascati system for the natural sciences, engineering and technology, medical and health science, agricultural science, social science and humanistic science was used in the preparation of this Strategy. As recommended in Revised Field of Science and Technology Classification in the Frascati Manual DSTI/EAS/STP/NEST(2006(19/FINAL, OECD, 26-Feb-2007), the issue of science research activities in the field of Arts in Bosnia and Herzegovina should be included in the area of humanities; i.e. Art (all forms of arts), history of arts, Architectural design, Performing arts studies (Musicology, Theater science, Dramaturgy), Folklore studies, Studies on Film, Radio and Television belong to the scientific field “Arts” under the Humanities. Selected priorities are arising from the defined relations between natural resources, development of key economic sectors, own knowledge, transfer of global knowledge and technology, human resources and economic (financial) power of the country. Defined priorities are of strategic scientific and technological importance for the overall development of the country as well as for spiritual and cultural identity of citizens of B&H. (1) Priorities in the field of natural sciences In the field of natural science, according to their complexity and share in a very broad spectrum of scientific progress/development, education and technological development, it is priority to encourage research: that ensure continuity and quality of basic research, contribute to the general fund of knowledge and the fastest involvement in the world's integration processes in science; that are essential to understanding and discovering laws/patterns, phenomena and mechanisms of nature; that promote modern education, because the natural sciences, including mathematics, are associated with many other sciences and influence the training of highly qualified professionals for creative endevours; that represent the basis for applied research and development; that are the basis of new technologies; that contribute to the improvement of standards; that contribute to the protection, preservation and improvement of the environment; that contribute to the preservation and improvement of biodiversity. (2) Priorities in the field of engineering and technology Selection of priorities in the engineering (technical) sciences and technologies was based on natural and financial resources, human resources, comparative advantages, the state and level of development of domestic industries and sectors of production and technological base of the economy as a whole. In the field of engeneering and technologies, it is priority to encourage research: that contribute to raising of the general level of knowledge in engineering sciences, to linking with the applied and development research; ensure scientific foundation for modern education of personnel in the field of engineering science; that form the scientific basis for modern methods of designing new products, constructions and systems; ensure inclusion in the global/world trends in the development of engineering sciences; that form the scientific basis for modern education of personnel in the field of engineering science; that form the scientific basis for for modern methods of designing new products, constructions and systems; that ensure inclusion in the global/world trends in the development of engineering sciences that contribute to the development and application of standards for the system of quality and system of protection of environment; that contribute to the harmonization with global/world standards in technologies and high ecological standards; that contribute to the revitalization of existing technologies; that contribute to the development of information and communication technologies; that contribute to the development and promotion of multidisciplinary approaches in the medical engineering in the view of health protection and care (prevention, diagnosis and therapy); that contribute to the development and promotion of rational use of naturally available and bio-renewable resources as a source of raw materials for the chemical, pharmaceutical, cosmetic, textile and food industries; that contribute to a better utilization of renewable energy sources (hydropetentials, wind potentials, geothermal energy, solar energy); that contribute to increasing energy efficiency through reduction of energy consumption per unit of production and the rationalization of its consumption in the production, transport, service industries and households; that adopt new methods of designing products and technologies; that contribute to the development of their own software products. (3) Priorities in the field of medical and health sciences In the field of medical and health sciences, a priority will be given to encouraging those researches that will improve the health of the population through prevention, diagnosis and treatment. In line with this and considering the existing and in the future newly educated and trained staff as well as existing and planned equipment, it is priority to encourage: Research of mass diseases such as cardiovascular diseases, rheumatic, endocrine diseases and metabolic diseases, including diabetes and hormones, then malignant diseases and epidemiologically significant diseases; Development of a system for prediction of outbreaks and control of epidemics of emergent and re-emergent contagious diseases; Research and synthesis of new pharmaceutical active substances and the research of natural bioactive and medicinal products; Multidisciplinary approach that includes fundamental research in the natural sciences, oriented integrated research in medical biotechnology and technical sciences that contribute to the development and introduction of new diagnostic, therapeutic and information technology, such as diagnosis and treatment based on genes, manipulation of cells, tissues and organs, bio-sensors, etc; Research related to the promotion of natality; Research related to the preservation and promotion of mental health; Research of the epidemiological images of illness caused by nutrition and the influence of different allergens and chemical contaminents; Research related to socio-biomedical aspects, including family planning, sexual health, psycho-oncology, etc. (4) Priorities in the field of agricultural sciences Bearing in mind the strategic orientations for development and improvement of agriculture, where knowledge and science are the resource without which there is no substantial progress, the priorities in the field of agricultural sciences are as follows: Bio-rational usage, improvement of land fertility, remediation and protection of land; Incerase of productivity of agricultural production and processing, constantly providing high quality and safety of food during the entire system “from field to table”; Creation of new high-breed and high quality sorts and hybrids of bred plants, which will serve for the production of both healthy mass food and nutritious and special food; Development of new technologies in agricultural production as well as new technologies and products in food production industry and technologies based on traditional products; Researches that support rural development; as well as innovativeness in agiculture and creation of extra gains at farms and rural communities (usage of agricultural wasterenewable energy, new aquaseals, compost, etc.) Improving and maintaining the level of forestation and increase of production capacity of forests (higher level of production) and forest land; Improvement of knowledge in the area of sustainable development, management policies, evaluation of achieved development and competitiveness, development of institutions (registry, counseling services, new applicable legislation,etc.) (5) Priorities in the field of social sciences Life practice in the developed countries and studies have shown that social sciences (including humanities) contribute to the socio-economic, cultural and spiritual development and regeneration of society and nation and provide a basis for understanding of the incurred and tracing of the future changes in society. In line with this, the priority is to encourage research that: contribute to the economic, legal, cultural and spiritual development and regeneration of society and people; determine the scientific basis for understanding of the incurred and guidance of the future changes in society; contribute to guiding the society toward innovation, creation of cultural surroundings and creative education; define guidelines for the optimal model of economic development and further development of market economy system; define the terms and man's ability to adapt to the work and the constant changes that modern technology offers. (6) Priorities in the field of humanities In the field of humanities, the priority will be to encourage research that: illuminate the basic features of historical development and cultural identity of the people of Bosnia and Herzegovina in relation to the environment and in the context of European and world civilization; investigate and process cultural and civilization heritage of people in B&H; examine artistic and literary works as distinctive/peculiar values that represent the contribution to the European and world cultural heritage; affirm multicultural content of B&H identity. * * * In the process of European integration and the acceptance of European standards, it is necessary to consider the place and the role of science and scientific-research work as a key element of economic competitiveness in the XXI century, and in line with the Lisbon strategy. With allocation that is below 0.1% of gross domestic product, scientific potential of B&H is simply incomparable with the science research potential in other European countries. Result of the lack of monitoring of statistical indicators in this area is that there are practically no data on B&H in the European statistics. The set objective of this strategy is to increase the level of allocation in the next five years up to 1% of gross domestic product and it is not easily attainable; yet, this will only ensure the intensity of scientific research activities in which our immediate neighbors are nowadays. Nevertheless, by achieving this goal B&H would not lose the pace and contact with European science and it would keep young staff, eager to learn in B&H. Priorities and goals of scientific-technological development of B&H and instruments for implementing policy in this area must be in the function of sustainable development of B&H economy and society and reflect its commitment to become an equal participant in the European research area. In the circumstances of globalization, scientific and technological development of B&H should be based on the continuous acquisition, renewing and increasing knowledge, its effective implementation and exchange and transfer of experiences and technologies. It is necessary to profiliate scientific research work in a way that the implementation of its results becomes one of the key factors in creating a competitive economy and society based on knowledge. It is necessary to ensure greater investments in the sector of science at all levels of government, or from other sources (private and foreign capital), and thereby (qualitatively and quantitatively) promote scientific research activities, while creating an efficient system of protection of intellectual property at the same time. Promotion and support of the accelerated development and reintegration of B&H research area based on international standards is of extreme importance, as well as introduction of measures that would encourage commercialization of academic research. It is necessary to take the following measures in the short term: Strengthening the Sector for Science in the Ministry of Civil Affairs, Stronger cooperation with the European Commission with the aim of using IPA funds for strengthening the scientific and research activities; Participation in the activities of the Seventh Research Framework Programme of EU as well as in other international programmes; Establishing a database and a unified system of monitoring and collecting statistical data; Planning funds in the budget of the MoCA for co-funding of international projects; Establishment of the Council for Science; More intensive cooperation between ministries responsible for education and mutual exchange of information; Tax reliefs for companies that invest in research activities; Possibility of access to scientific information (scientific journals, data banks, etc.) via the Internet and various electronic systems. An integral part of the Strategy for development of science in B&H is also the Action Plan where given recommendations and activities that need to be undertaken for the purpose of their implementation are included, as well as stakeholders responsible for the realization of these activities and time frames for their implementation as well as expected results. Programme of the implementation of the Strategy for development of science in B&H and of the Action Plan should be achieved through the implementation of these documents by all levels of government in B&H and all institutions and entities that have contact with science and scientific research work when performing their activities. The main annual priorities should be defined by the Council for Science of B&H, which should also recommend them as the key development guidelines for science-research and research-developmet activities to the competent institutions. Implementation of the document will be done through continuous monitoring of the realization of the given recommendations and set goals, defining strategic priorities, introducing new methodologies and objectives, and through an active relation towards the global trends and new tendencies in the European Union. It is possible that new knowledge and guidelines will emerge in the implementation of this document and the document shall remain open in five-year period for improvements, particularly through the proposed Action Plan for implementation of the Strategy for development of science in B&H. Literature: 1. The Lisbon European Council – An Agenda of Economic and Social Renewal for Europe, Doc/00/7 Brussels, 2000 ( http//ec.europa.eu/growthandjobs/pdf/lisbon_en.pdf) 2. OECD/GD (94) 84 Frascatti Manual 3. Revised Field of Science and Technology (FOS) Classification in The Frascati Manual, DSTI/EAS/STP/NESTI(2006)19/FINAL, OECD, 26-Feb-2007 4. Agency for Statistics of Bosnia and Herzegovina, Bosnia and Herzegovina shown in figures, 2008 5. Agency for Statistics of Bosnia and Herzegovina, Production Approach- First results, Sarajevo, July 2008. 6. The Lisbon Review 2008, 2008 World Economic Forum (http://www.weforum.org/en/initiatives/gcp/Lisbon Review/index.htm) 7. World Economic outlook, october 2008 8. Institute for Statistics FBiH „Higher Education, Academic year 2007-8“ 9. Republic Institute for Statistics of Republic of Srpsk „ Higher Education 2008“ 10. Fuad Turalić, Vinko Bogdan „Science and Technology in Economy of BiH“, International Business Forum "Perspektive", Tuzla , 2005 11. William J. Baumol „The Free-Market Inovation Machine – Analyzing the Growth Miracle of Capitalizm“, Princton University Press, Princton and Oxford, 2002 12. Jadranka Švarc „ What is national innovation system and is it needed and possible in Croatia“, Economic review “,52 (9-10, 1053-1077, 2001 13. Progress Report for BiH for 2008., European Commission 14. Agreement on Stabilization and Association with BiH 15. European Partnership with BiH 16. Report of UNESCO Roste for BiH 17. Country wise Report on Science and Technology, Information Office of the Steering Platform on Research for the Western Balkan countries 18. Presidency of Bosnia and Herzegovina, B&H Foreign Policy General guidelines and priorities LIST OF ACRONIMS ACRONIMS ANUBiH ANURS GI GDP BiH BiHARNET CARDS MEANING OF ACRONIMS Academy of Sciences and Arts of Bosnia and Herzegovina (ANUBiH Akademija nauka i umjetnosti Bosne i Hercegovine) Academy of Sciences and Arts of Republika (ANURS = Srpska Akademija nauka i umjetnosti Republike Srpske) Gross income Gross domestic product (GDP) Bosnia and Herzegovina Academic and Research Network of Bosnia and Herzegovina Community Assistance for Reconstruction, Development and Stabilisation COBISS ”Current Contents” is the database of the Institute of Scientific Information, which provides easy online access to complete tables of contents, bibliographic information, abstracts, journals and so on. (CC = Current Contents ) Formal model of managing research information that allows interoperability of various research information systems. (CERIF = Common European Research Information Format) COBISS = The Co-operative Online Bibliographic System and Services CoE COST Council of Europe European Co-operation in the field of Science and Technical Research. CC CERIF COST is an inter-governmental frame for scientific cooperation and research in Europe, established in 1971 and nowadays comprises 35 European countries which cooperate in the joint projects, funded nationally. CRIS (COST = European CO-operation in the field of Scientific and Technical Research) CRIS is a database or information system storing data on research organisations and researchers. (CRIS = A Current Research Information System) DBr DEP Brčko District Directorate for Economic Planning of BiH EC ECTS EHEA European Commission European Credit Transfer and Accumulation System – a standard for grading the educational attainment and performance of higher education students in European Union and other European countries (ECTS = European Credit Transfer and Accumulation System) European Higher Education Area ENIC European Network of National Information Centres on Academic Recognition EPC EPO ERA EU EC FBiH F MoES FOS European Patent Conventions European Patent Office European Research Area European Union European Community Federation of Bosnia and Herzegovina Federal Ministry of Education and Science Classification by ”The Frascati Manual” is a document stipulating methodology of collecting and using statistical data on research and development in OECD countries. (FOS = Field of Science classification in the Frascati Manual) Research Framework Programme in EU FP FP7 FTE GCI DG HP IASP ICT IPA IPAP SEE JRC CMoESs MoCA BiH MoFTER BiH MoEMI FBiH MoIEM RS MIPD MoF MoDEC FBiH IMF MoST RS (FP = Framework Programme) Seventh Framework Programme (FP7 = The Seventh Framework Programme) Standardised time spent on work in certain period. FTE 1.0 means that the person spends equivalent to a full-time worker's involvement in some work or project, and a FTE 0.5 – signals that the worker is only half time. (FTE = Full Time Equivalent) Index that ranks the level of competitiveness of a country in comparison with the other world's countries. GCI is published by the World Economic Forum. (GCI = Global Competitiveness Index) EU Directorate General Hewlett Packard is a corporation in the USA, manufacturer of electronic devices, equipment and software. (HP = Hewlett Packard) International Association of Science Parks Information and Communication Technologies Financial instrument for Pre-accession Assistance of EU for the period 2007-2013 for EU candidate and potential candidate countries - Western Balkan countries and Turkey. (IPA = The Instrument for Pre-accession Assistance) Action plan for individual partnership with the NATO / the North Atlantic Treaty Organization (IPAP = Individual Partnership Action Plan) South-East Europe Joint Research Centre is the European Commission service used as a reference centre for research and technology in EU. Seven research institutions of JRC are located in five European towns – Geel (Belgium), Ispra (Italy), Karlsruhe (Germany), Petten (Netherlands) and Seville (Spain). (JRC = Joint Research Centre) Cantonal ministries responsible for education and science Ministry of Civil Affairs of BiH Ministry of foreign trade and economic relations of BiH Ministry of energy, mining and industry of FBiH Ministry of industry, energy and mining of RS Multi-Annual Indicative Planning Document is a key document for strategic planning of assistance to Bosnia and Herzegovina within the Instrument for Pre-Accession Assistance - IPA. (MIPD = Multi-Annual Indicative Planning Document) Ministry of Finance Ministry of development, entrepreneurship and crafts of FBiH International Monetary Fund Ministry of science and technology of RS SMEs MoFA NARIC NCP FP BiH SRA SRO NIS SIS NRI STP NULBIH NULRS OECD R&D RS FBiH RTD USA SAP SARNET WB SCI Small and medium enterprises Ministry of Foreign Affairs Network of national information centres which allows comparison of academic qualifications as a part of Bologna process in Higher Education in Europe. (NARIC = National Academic Recognition Information Centre) System of National Contact Points for EU Framework Programmes in BiH (NCP = National Contact Point) Scientific Research Activity Scientific Research Organisations National innovation system Scientific Information System Networking Readiness Index Scientific technology park National and University Library of Bosnia and Herzegovina National and University Library of Republika Srpska Organisation for economic co-operation and development. It consists of 30 most developed countries which accept principles of representative democracy and free-market economy. (OECD = Organisation for Economic Co-operation and Development) Research and Development Republic of Srpska Federation of Bosnia and Herzegovina Research and Technological Development The United States of America Stabilisation and Association Process Academic and Research Network of Republic of Srpska The World Bank Science Citation Index SEE-ERA.NET The EU member states networking project with the South East Europe into the European Research Area with the aim of implementing joint research activities within existing national, bilateral and regional RTD programmes. (SEE-ERA.NET = The Southeast European Era-Net) SFRJ Socialist Federal Republic of Yugoslavia CoM BiH SSA WTO SWOT Council of Ministers of Bosnia and Herzegovina Stabilization and Association Agreement The World Trade Organisation An analysing method used to evaluate the Strengths, Weaknesses, Opportunities and Threats of some situation in order to properly select the right strategy. SWOT method indicates external and internal factors in order to determine how to achieve the desired goal. (SWOT = Strengths, Weaknesses, Opportunities, Threats) Science and Technology The Tempus programme is the European Union programme designed to support the reform of higher education in the EU Partner Countries. It supports joint projects of the EU Member States and Partner countries with an aim of S&T TEMPUS modernising universities, learning about the regions and people, as well as understanding different cultures. (TEMPUS = The Trans-European Mobility Programme for University Studies) TP UNESCO VIBBIH WBCINCO.NET WEF IPL Technology park The United Nations Educational, Scientific and Cultural Organisation Virtual Library of Bosnia and Herzegovina WBC-INCO.NET is a joint project between the Western Balkan Countries and EU which started in January 2008 and will last until December 2011, at least. It is 7th Framework Programme (FP7) for Research and Technology Development under the Capacities Programmes in the Western Balkan Countries on the development of the research capacities in the Western Balkan countries. (WBC-INCO.NET = The Western Balkan Country International Cooperation Network) The World Economic Forum Intellectual Property Law