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INDUSTRIAL AND INNOVATION POLICY IN PORTUGAL Ana Isabel Serralha Rita Costa PORTUGAL Area: 92072 km² 10 million inhabitants Capital: Lisboa Member of EU since 1986 Currency: Euro PORTUGUESE ECONOMY 2003 Expected GDP growth: - ¾% Reduction of consumption and investment Budget deficit International incertenty with Iraq conflict Summer fires – total impact still to determine INDUSTRY AND INNOVATION GENERAL PERSPECTIVE POLICY MEASURES PORTUGUESE INDUSTRY No industrial revolution Industrial development started in the 1950’s EFTA Focus in products of low added value: sardines, wine, cork, textiles, shoes and automobiles components Main Industrial Products Cars Shoes Diesel Animal Food Cables Wine Automobile Components Paper Radios Integrated Circuits Cement Gasoline Cork Hardened Medicins INDUSTRY’S PROBLEMS Low productivity Low level of education and know-how Low level of technological and organizational innovation Lacking spirit of entrepreneurship Burocracy Regional disparities INNOVATION POLICY MEASURES PPCE: Programme for Productivity and Economic Growth Improvement of legal and regulatory environments Competition Investment Taxation Protection of intelectual and industrial property Stimulation of R&D PROINOV: Integrated Programme for Innovation MAIN OBJECTIVE: attracting foreign direct investment (FDI) to help creating new jobs in technology-intensive activities Example of PROINOV’s actions: Promotion of clustering and co-operation for innovation POSI: Operational Programme on Information Society AND POCTI: Operational Programme for Science, Technology and Innovation MAIN OBJECTIVE: supporting the development of university-industry research consortia including firms and Science and Technology organisations Important role in : the strengthening of research carried out by companies IDEIA: Applied Research and Development in Companies MAIN OBJECTIVE: developing university-industry research consortia Important role in : the strengthening of research carried out by companies the intensified co-operation between research, universities and companies the strengthening of companies’ ability, particularly SME’s, to absorb technologies and know-how (creation of R&D teams in companies) The participants of the programme IDEIA can benefit from financial and fiscal incentives. NEST: New Technology-Based Firms MAIN OBJECTIVE: supporting new technology-based firms (NTBF’s) through venture capital investment Important role in : the strengthening of research carried out by companies the start-up of technology-based companies the increase of the larger public’s awareness to the relevancy of an active Innovation Policy The support given to NEST companies includes: • financial support • recruitment of doctors and masters • venture capital investments up to 90% of a NEST companies’ capital QUADROS PROGRAMME MAIN OBJECTIVE: improving the level of technical skills in SME’s through financial support for the wages of young engineering, economics, management and scientific graduates recruited by SME’s. Important role in : the mobility of students, research workers and teachers the fostering of innovative organisational and management practises in enterprises the strengthening of research carried out by companies the strengthening of companies’ ability, particularly SME’s, to absorb technologies and know-how MTTQS: Measure for Supporting the Dynamisation of Technology, Training and Quality Systems MAIN OBJECTIVE: promoting pre-competitive research projects developed between technology, training and quality infrastructures organisations and companies. Important role in: the encouraging of R&D activities the strengthening of research carried out by companies the intensified co-operation between research, universities and companies EDUCATION RELATED MEASURES The Portuguese Government has tried to improve the Educational Policy by: • giving scholarships to the best students in different fields • creating a new Ministry for Science and Higher Education • creating a Comission on the Teaching of Mathematics and Science • promoting life-long learning • supporting the recruitment of graduates by companies THE END