An Introduction i Foreword In just three decades, the internet has evolved from an experimental tool for researchers to a pervasive, omnipresent backbone for society and the economy.
CAPS Stakeholders and End users 24 Synergies between Projects 28 Collective Awareness Platforms 31 4. Starting Out 46 Societal Challenges 47 Framing the Challenges
but is created co by different stakeholders who share the knowledge, risk and benefits of the innovation.
For example, forms of collaborative consumption that promote sustainable economics and socially responsible companies, can be of use for people
or of the economy are oriented towards the creation of and the engagement with effective experiments of social innovation, promoting their scalability
and transferability. 17 Such social innovation experiments should try to be increasingly multi-stakeholder, with a community-wide participation at the local and European level,
Studied extensively in economics, the network effect has also been used to analyse company behaviour, showing how being embedded in a network can provide benefits
and by almost any discipline dealing with human social organisations (e g. law, economics, anthropology, sociology, history).
building from existing collective innovation frameworks and pushing them further, developing methods and tools that can be used by all interested stakeholders.
Contribute to a low-carbon economy, for instance by lending, exchanging and reusing goods at scale, across geographic boundaries (collaborative consumption).
The first step in making a set of goals concrete is to define the targeted stakeholders and end users.
Stakeholders are persons and organisations interested in the project activities and outcomes. At the bottom line we find end users
The chapter following'CAPS Stakeholders and End users'describes the typologies of stakeholders and end users addressed by CAPS projects to date.
'have the power to amplify the impacts of a platform in the process from idea to action. 24 CAPS Stakeholders
and End users Stakeholders Stakeholders are organisations, categories of people or individuals who have an interest in the CAPS projects and their outputs.
This section treats stakeholders and end users separately. Even though end users are also project stakeholders, the distinction is that end users use the project outputs directly,
while stakeholders benefit from project outputs in an indirect way. Stakeholders will be informed of the project's progress
and can, to a certain extent, influence the development of the projects. Stakeholders will tend to belong to one of the following four groups:
research, business, civic society, and policy and government. On the right-hand page is a figure visualising the main stakeholders of the CAPS projects.
End users CAPS projects raise awareness among their users and mobilise different categories of users. Below is a list of possible users;
the same person can of course belong to more than one category. The list illustrates the diversity of topics
25 Figure 2 CAPS Stakeholders 26 Citizens and initiatives active in commons-based peer production and sharing economy (e g.
USEMP aims at empowering social network users with regards to the sharing of their personal data and its potential economic value.
therefore a more in depth, precise analysis of the solutions they offer to their stakeholders will only be possible later on in the projects'development lifecycle.
reused and made available to stakeholders through various exploitation strategies. The term'innovation'is used here with reference to both totally new outputs, such as products and services,
balancing the traditional focus on‘executive information dashboards'serving the needs of only a few senior stakeholders.
or the connection between personal data, economic value, and currencies (USEMP). Moreover, assessment of the CAPS projects themselves is key to these projects,
New Economic Models The transformation of societies and economies following the diffusion of digital technologies, with increases in productivity, the redistribution of international divisions of labour,
and the emergence of new professions, has questioned the way the world economy has been organised, the way business can be done,
and economy by linking it to the Internet of things (Iot), sensor network and cloude services in order to support open online social media and distributed knowledge cocreation thus maximising the network effect,
39 CAPS2020 liaises with all CAPS stakeholders, including organisations developing similar projects in other regions of the world.
resilient societies and economies, deploying ad hoc networks of citizen experts around client's needs. 16.
to analyse the perceptions of various stakeholders, and to identify and track emerging trends. 30.
the players and stakeholders involved, and the objectives to be pursued through the solution. The problem may involve a single sector of the society or different types of stakeholders,
and may be located in different social, political and economic contexts. The root causes of the problem may be recognised by many,
Tackling a problem involves negotiating a way through the requirements and preferences of the stakeholders involved.
Other Stakeholders Proposing solutions for specific groups'issues is not only a technical matter in the CAPS context.
Other stakeholders influence and can also be influenced by any change triggered by a technological development.
The role of these stakeholders such as policy makers or regulators, must be taken into account through a participatory research approach (see chapter'CAPS Stakeholders and End-users'.
'But What is Engagement? Both in the dictionary and in the context of CAPS, the term'engagement'has several meanings.
When involving stakeholders in a CAPS initiative, this element mixed with others (practical arrangements, power situations, etc.)
could make it difficult for stakeholders themselves to articulate their feelings and preferences consistently, or completely and accurately.
It is vital that the dialogue with stakeholders is given the highest priority, as it is this dialogue that sets the CAPS projects apart by creating a collective awareness. 59 Dealing with the Sociocultural Diversity Each community of interest involved in the CAPS projects has different sociocultural contexts.
in order to support the participative engagement of the stakeholders, as in the SCICAFE2. 0 project. The first goal is to support shared meaning and deeper understanding of the values, motives, needs,
and trade-off tipping points of each stakeholder group in each relevant context of their exposure to the problem situation.
which takes account of the dynamic relationship that can develop between the stakeholders and the solution as illustrated in Figure 7 below.
Rejection and (Misappropriation Cycles by Stakeholders 64 For example as per UI-REF-based requirements of co-design and evaluation criteria which need to be applied on a wide scale should incorporate:
and stakeholders to exert an influence on the other layers. The real-time visualisations of digital content provided by DECARBONET (Figure 9) exemplifies how user-generated information in different social media channels can be used by NGOS
and concomitant access by multiple stakeholders..It promotes evidence-based decision making and continuity in the relationship between provider and client,
In order to reap the full benefit of ICT deployment in complex environments it is necessary to have a clear definition of goals and effective collaboration among stakeholders.
In order to reap the full benefit of ICT deployment in complex environments it is necessary to have a clear definition of goals and effective collaboration among stakeholders.
The lack of involvement of public sector stakeholders in the use of ICT gives cause for concern.
while also contributing to a growing economy-has become even more pertinent as Europe endures a financial crisis that impacts the entire functioning of its social system.
social value, collection value, educational value and economic value, are becoming increasingly important as museums strive to balance new technological developments, economic challenges and a changing public.
but they also provide a framework for developing a comprehensive strategy for cultural heritage in the EU, an asset that offers enormous potential for Europe's economy, society and identity,
In which direction does proceed the EU with its 2020 Strategy for a smart, sustainable and inclusive economy in regard to the cultural sector?
or are expected they only to supply to a creative economy? Two presentations focused specifically on the EU's cultural policy and the crucial role of museums in taking Europe out of its crisis. Beginning with a short discussion on the legacy of the Lisbon Treaty,
If successful, the museum will play a key role in the global market of the'knowledge economy'as WIPO (World Intellectual Property Organization) defines it.
reusing cultural heritage and contributing both to the creative economy and to social innovation. Mr. Verwayen also emphasises the crucial importance of providing people with access to culture-culture that has been collected for centuries in museums, libraries and archives.
where the focus will be placed even more on its contribution to the creative economy and to social innovation.
In December 2012, the museum's main stakeholders were approached in order to gather ideas and gain consensus and support.
i e. to transform Europe into'the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion'.
2. Sustainable development-the'green'economy; low carbon emissions; efficiency of resources; and competitiveness; 3. Inclusive growth-enlarged labour market and specialisation;
a high employment economy delivering social and territorial cohesion. Tracking the progress of growth within each priority area will be evaluated against five measurable headline EU-level targets,
However, if all revolves around the economy 49 and job creation, and the word'culture'is mentioned hardly in the EU 2020 Strategy,
as embodiments of citizens'sovereignty and as vehicles for mitigating the effects of capitalistic economies on inequality by redistributing global wealth through welfare.
in order to recover from that crisis they must restore the conditions for economic growth on which a basis of fair redistribution of wealth can be achieved.
After testing new cooperation methods and partnerships by stakeholders-the EU 55 Commission, the EU Parliament,
and stakeholders think about culture and its role in society. Culture enables evolution and human development and should be understood as one of the key components towards citizenship and a new social contract.
Consultation on Next EU Strategic Work Programme 2016-2017 iii Executive Summary Small and medium enterprises (SMES) are vital to the European economy and a key focus
Phase 2 funding under the SME Instrument raises important, as yet unresolved, issues for both SME applicants (who may face major liquidity constraints),
Rec 4. 1) b. Incentivise private funding sources to provide financing facilities to overcome the liquidity gap constraints likely to be experienced by applicants receiving Phase 2 funding.
Consultation on Next EU Strategic Work Programme 2016-2017 1 1. Introduction Small and medium enterprises (SMES) are vital to the European economy and a key focus
and indeed this diversity constitutes one of their key strengths for the European economy. Our focus in this report is driven on innovation and growth-oriented SMES in all sectors:
For instance, General electric forecasts that embedding Internet technologies into machines could add $10-$15 trillion in economic growth worldwide over the next 20 years. 3 The quest for resource efficiency will become an increasingly important driver,
Solutions that aim at the gradual uncoupling of economic growth from resource consumption are essential for the sustainability of entire economies.
Climate change will drive innovation across the economy and society. With climate change becoming more and more a reality for Europe and the world,
Despite the economic crisis, healthcare budgets around the world continue to increase, driven by escalating demand, new clinical practices,
Technological and economic growth must be inclusive and accessible to those who need it. This concept is recognised strongly in the H2020 subtheme on Inclusive
Emerging economies, such as India and China, are moving up the value chain and becoming major innovation players in their own right.
On the one hand, the migration of many production and manufacturing activities to lower-cost economies shifts the emphasis towards developing intangible assets
while raising specific issues associated with the knowledge economy (e g. it is easier to transfer intangible assets,
creating problems for SMES who often have limited liquidity. This lack of flexibility may encourage‘project hopping'firms jumping from one project to another simply to collect the grant;
Economists call this‘path dependence'or hysteresis. The classical example is the DVORAK keyboard, which is considered superior to Horizon 2020 Expert Advisory Group Innovation in SMES:
firstly, at a conceptual level (the role of risk finance in bridging the liquidity gap;
EU Funding as a Means of Reducing Risk and Addressing the Liquidity Gap For SMES, one of the main benefits of EU (and national) grants is as a risk reduction measure rather than the direct funding
but it does not solve the short-term liquidity problem for an SME. Despite prepayments, grant conditions often put liquidity pressure on SMES.
Substantial costs have to be paid upfront and it can be many months before these are reimbursed.
liquidity is limited of concern. For an SME, cost reduction is nice but the liquidity challenge remains a stumbling block.
However, potential investors and loan providers for such grant-supported innovation projects will see their risk exposure reduced, partly by the reduction in funding requirement,
and (ii) the liquidity gap caused by the payment schedule connected to most EU grants.
Bridging the Liquidity Gap In our example the capital requirement for the new project is €2. 000 K,
and similar refined instruments introduced in the shareholders'agreement, in order to make a fairer distribution of the exit value.
Phase 2 funding under the SME Instrument raises major liquidity issues which demand urgent attention.
and ii) funding the liquidity gap caused by EU payment principles (small prepayment, majority of payment based on cost statements of cost incurred).
For a €1 million project with 70%Phase 2 funding the total liquidity requirement can easily be around €500k 600k.
€200k-300k is needed to cover the liquidity gap until final EU payment is received. This could be a fatal draw which, in principle, needs special attention;
Incentivise private funding sources (business angels/venture capital funds) to provide financing facilities to overcome the liquidity gap constraints likely to be experienced by applicants receiving Phase 2 funding.
Consultation on Next EU Strategic Work Programme 2016-2017 17 needs of applicants, the media, the Member States and other stakeholders.
as proposed by economists such as Eric Reiss9, Steve Blake and Bob Dorf10. We recognize, however, that such reforms have to be considered as a long term objective.
On the other hand, the increasing importance of intangibles, IPR protection and enforcement in the success of economies and individual businesses mean such issues cannot be ignored.
contributes to economic growth and job creation and to the achievement of the digital single market through the increasing offer of new and innovative online products and services.
as well as the efforts to provide funding for digitisation in a time of economic crisis; -the valuable work done by Europeana,
further steps are necessary to turn this heritage into a lasting asset for Europe's citizens and economy in the digital age;
and to promote the creation of content and new online services as part of the information society and the knowledge-based economy;
6 On 20 september 2011 a Memorandum of Understanding on the Key Principles on the Digitisation and Making Available of Out-of-Commerce Works was signed in Brussels by stakeholders'representatives,
following a stakeholders'dialogue sponsored by the Commission. 8832/12 MM/ag/mj 5 ANNEX DGE-1c E4.
in full respect of intellectual property rights Promoting voluntary stakeholders'agreements and other mechanisms facilitating digitisation and online accessibility of out-of-commerce works 11 These conclusions do not prejudge the negotiations on the next Multiannual Financial Framework. 8832/12 MM/ag/mj 9 ANNEX TO ANNEX DGE-1c
called the Hungarian Economy Development Centre (MAG Zrt). Based on the government decree 1085/2014 (II. 28.
this intermediary body has been integrated into the Ministry for National Economy by 15th april 2014. As of 1st january 2014, all managing authorities that used to be controlled by the National Development Agency (NFÜ) work under five ministries that are responsible for the implementation of various Operational Programmes co-financed by the European union in 2014-2020.
This issue can be taken as a specific feature of a broader challenge, that is, the dual economy syndrome:
the Hungarian economy is composed of highly productive and technologically advanced foreign-owned large firms, on the one hand,
The macroeconomic situation, the structure of the economy the overall entrepreneurship culture together with the intensity and type of competition seem to influence firms'behaviour with such a power that STI policy schemes cannot offer strong enough incentives to overrule these unfavourable effects. 5
In addition, a wide involvement of stakeholders and devoting significant time to public consultations during the policy design phase would increase the efficiency and effectives of policy measures.
Hungary is the fifth largest national economy in Central and Eastern europe. The Hungarian GDP per capita at market prices has been €16, 000 in 2008 and €16, 700 in 2012.
The RTIF schemes and various operational programmes financed from European union resources used to be administered by the intermediary body, the Hungarian Economy Development Centre (MAG Zrt.
and the reorganised MAG Zrt. will work under the Ministry for National Economy. Figure 1 Policy governance sub-system of the Hungarian National Innovation System Hungary is a unitary state with a centralised decision-making system with regard to major policy domains,
and about €2 billion for the development of the knowledge economy (i e. support of company R&d and research programmes) out of the total Structural Funds available in the period 2014-2020.9 2 RECENT
DEVELOPMENTS OF THE RESEARCH AND INNOVATION POLICY AND SYSTEM 2. 1 National economic and political context The contraction in economic activity persisted until the 4th quarter of 2012,
With rapidly decelerating headline inflation, partly on account of a 10%cut in administered energy prices in January 2013 and further 11.1%cut in November 2013,
The most important objective of the Hungarian economic policy is supporting the economic growth and increasing of the employment.
The economic crisis had severe impact on the Hungarian economy. According to the forecasts of 1 KSH (2013:
According to the estimates of the Ministry for National Economy, R&d tax credits could amount about 0. 08-0. 1%of the GDP in 2013.
This incentive cost the government about €3. 5 m according to estimates of the Ministry for National Economy
the Hungarian National Reform Programme 2013 foresees special measures to support the change for the low carbon emission economy as well as to support the development of telecommunication technologies
and the IT economy. 2. 2. 4. Innovation Funding Hungarian authorities publish budgetary figures and allocation plans of the EU operational programmes in such a way that budget allocations for innovation are separated not from research,
Development of the knowledge economy) explicitly focus on supporting business innovation. In addition to these priorities, Priority 3 through supporting of ICT developments, Priority 4 through energy rationalisation and Priority 6 through supporting of RDI investments could be mentioned in this context.
and as a result, to mobilise the Hungarian economy and to strengthen its competitiveness. The strategy set the target to raise the amount of R&d expenditures to 1. 8%of GDP
resources of the Structural Fund should be used for the reinforcement of the growth potential of the Hungarian economy,
i) Economic Development and Innovation OP (including the development of the creativity and the knowledge economy, support of innovation, R&d and ICT), ii) Human resources Development OP (development of the education and culture infrastructure,
and iii) Competitive Central-Hungary OP (programmes supporting the development of the knowledge economy, social integration and employment).
public consultation started with stakeholders about the content of the OPS in October 2013 organised by the National Economic Planning Office (under the Ministry for National Economy).
The main stakeholder, the Hungarian Rectors'Conference supports the new strategy and expects that the austerity measures will be stopped
a research-development and innovation (RDI) sectoral strategic white book (KFI ÁSFK) was prepared in the National Innovation Office (NIH) on the request of the Ministry for National Economy in October 2013.
Based on series of interactive workshops (charette) and further consultation with stakeholders, implementations plans are prepared in the Ministry for National Economy.
The representatives of the national government and regional stakeholders have presented their current work on Research and Innovation Strategy for Smart Specialisation (S3) during the peer review workshop. 9 Full name of the EVALINNO project is Fostering Evaluation Competencies in Research,
Smart Specialisation Directions of Hungary that was published for public consultation by the Ministry for National Economy in November 2013.
This draft White book was released after a series of workshop (roadshow) that were organised in all the seven Hungarian regions with stakeholders.
and the implementation structure of the S3 strategy is defined in the Ministry for National Economy.
Furthermore, regional planning working groups involving a wide range of stakeholders will be established to ensure the interest of the sub-national level territorial units
Among other tools, the analysis involves a SWOT analysis. In the RIS3 peer review workshop on 24-25 june 2013 stakeholders proposed that the national RIS3 strategy should be even more better based on a sound assessment of the competitive assets of Hungary,
A partnership is established between the Regional Innovation Agencies and the Ministry for National Economy for the RIS3 process.
Relevant actors and stakeholders of the RIS3 strategy at the regional level are identified and approached by the RIAS.
however, their level of involvement is far from that of the more developed economies. Links and co-ordination mechanisms between the national and regional level.
This ambition is served decisively by resources for RDI, SMES and competitiveness, employment and low carbon economy thematic objectives.
took a broad view of the Hungarian economy in line with the scope of the surveillance under the Macroeconomic Imbalance Procedure (MIP).
These countries are rather diverse, e g. in terms of their size, structural composition of the economy, level of socioeconomic development,
and Cyprus. EC 2013c) In addition to the new EU composite indicator, the Ministry for National Economy announced
Hungary is placed as the 26th most innovative economy worldwide. Regarding manufacturing industry performance Hungary is ranked as the 16th as a result of the high share of value added as percentage of GDP in this sector (high proportion in the economy) as well as the significant share of high-tech products within manufacturing exports.
In addition, as far as R&d expenditures in the percentage of GDP concerned, among the regional peers Hungary is ahead of Poland and Slovakia.
and generally low interest of stakeholders to be involved actively in the design of STI policy and related measures;
and improving the competitiveness of the economy and not really oriented towards addressing major societal challenges,
This issue can be taken as a specific feature of a broader challenge, that is, the dual economy syndrome:
the Hungarian economy is composed of highly productive and technologically advanced foreign-owned large firms, on the one hand,
therefore, would need attention both by STI and economic policy-makers. Recognised this challenge, the RDI strategy 2013-2020 set as a main objective to increase the dynamism of collaborations
but could be seen as role model for researchers working abroad. 4) Unfavourable framework conditions for innovation The macroeconomic situation, the structure of the economy, the overall entrepreneurship culture,
and economic policies pursued since June 2010 have increased fiscal tensions-No public contribution is paid to the KTIA,
Different stages of public and administrative consultation included stakeholder involvement at different territorial levels and across different sectors.
and consulted with stakeholders within limited time, it requires special attention and strong coordination on behalf of responsible planning organisations and professionals to include all relevant comments and recommendations.
Certainly, the time pressure and limited consultation possibilities does not allow the integration of all stakeholders reflections into these strategies and other planning documents under development.
The Ministry for National Economy supported by the National Planning Office and the Ministry of National Development are responsible for the preparation of the main development concepts and programmes.
With regards to RIS3, the National Innovation Office and the regional innovation agencies are involved in planning process under coordination of the Ministry for National Economy.
It introduced a new type of stakeholder dialog that essentially builds on participatory techniques which is not yet frequent in Hungary.
In absence of publicly available statistics or report on competitive versus institutional research funding in Hungary, according to senior government officers of Ministry for National Economy the ratio of competitive versus institutional funding could be estimated for about 40
Initiated by the National Innovation Office in 2013, discussions started with key stakeholders in order to formulate a national policy to promote knowledge transfer.
although Hungary is a small economy that's has limited possibilities to achieve significant impact on them.(+
and responsibilities(-)Stakeholders and NGOS are consulted with regards to STI related strategies and programmes, although their scale
and municipality level longer term strategies are prepared(+)Draft S3 White book is available(+)Stakeholder involvement, and public consultation through roadshows(-)Limited stakeholder involvement because of generally low interest of companies in public consultations 25 Post 2013 Structural Fund Programmes(+)New operative programmes are defined with indicative budget allocation
and priorities(+)Final Draft Partnership Agreement signed(+)Priorities of the new OPS favour RDI and the government would spend 60%of the funding on economic development(-)Harmonisation of
Ministry of National Economy and National Economic Planning Office, Budapest. NRDIS (2013: Befektetés a jövobe.
June 2013, Ministry for National Economy, National Innovation Office, Budapest. NRP (2011: National Reform Programme 2011 of Hungary.
Ministry for National Economy, November 2013.57 LIST OF ABBREVIATIONS BERD Business Expenditures for Research and development BME Budapest University of Technology and Economics CERN European Organisation for Nuclear
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