The European Investment Bank used our research as background for its presentation on PPPs in Research Development and Innovation for the Southern Mediterranean region citing our work as the rationale for improved skill creation; increased technology transfer through FDI; employment creation; and enhanced regulatory framework for business.

1. 1
Participatory
Modernization
PPP in Research Development and Innovation
for the Southern Mediterranean

2. Background
Changes in South and East MED 2
Baseline
Royalty and licence fees Share of knowledge based industries in gross value added
Source: W. Schwalje, (2011); World Bank, Enterprise Survey
Challenges Opportunities
Sustainable and  Improved skill creation
inclusive growth and  Technology transfer through FDI
economic  Employment creation
development  Enhanced regulatory framework for
business
Consolidation of
democratic reforms  More efficient, transparent and
and institutional accountable public administration
building

3. Background
Limited impact of traditional RDI 3
policies in the EU
Inefficiencies
 Concentration of resources on large scale
programmes (targeted predominantly at
technical achievements
 Involvement of a small number of
participants,
 Centralized administrative management
Shortcomings
 Lack of focus on outcomes delivering
broadly diffused benefit
 Lack of critical mass
 Lack of frameworks for a market-driven and
bottom-up definition of objectives

4. 4
PPPs: a tool for growth
Case Studies
PPP as factor multiplier
Leverage Knowledge  Facilitate joint vision development and
strategic agenda setting, including at a
cross-national and regional level
 Build critical mass through flexible
structure providing size and cross-
fertilization
Leverage resources  Strengthen competitiveness by making the
RDI cycle more efficient and shortening
the time from research to market
 Help to overcome fragmentation and
redundancies
Leverage public  Address major societal challenges
policies
EC Communication
COM(2011) 572  Partnering in Research and Innovation

5. 5
PPP types in RDI
Case Studies
Clusters/Networks
 Medicines for Malaria Venture, USA
 Biotechnet, Switzerland
Research Centre-based
Clusters/Networks
 Mobile Life Vinnova Excellence Centre, Sweden
 Digital Enterprise Research Institute, Ireland
Joint Ventures
 JTI Artemis, EU
 Fraunhofer Center for Nanoelectronic Technologies, Germany
 National Physical Laboratory, United Kingdom
+ venture capital  DTU Symbion, Denmark
Asset-based RDI PPP
 Biosciences Research Centre Project, Australia
 Proton Therapy Centre - Essen University Hospital, Germany
+ venture capital  ISIS Innovation, United Kingdom

6. 6
Leveraging Resources
Achieving scale & scope economies
Fraunhofer CNT,  Public funds used to pay for the research installation used by the private
sector partners who financed the operational costs
Evidence
JTI Artemis  Private and Public funds blended with EU grants
ISIS Innovation  Private funds used to pay for the research laboratory in exchange for
50% licencing and 50% of Chemistry Dep.’s spin off shares
Valuable contributions
Mobile Life Centre,  Matching funds from the private partners/risk sharing
Biotechnet  Valuable contributions in kind (hardware, licences) from the private
sector partners blended with Government financial support
New aggregations of capability
Medicines for Malaria  New constellation of R&D stakeholders including international
organizations (WHO), international drug companies, research institutes,
government development organisations (e.g. DFID, UK) as well private
foundations (e.g. Bill & Melinda Gates Foundation).
Improving efficiency
National Physical  Enhanced management/raised operational efficiency (and third party
Laboratory, revenues with NPL)
Biotechnet  Reduce redundancies

7. 7
Leveraging Knowledge
Creating new Institutional Forms
MMV, Biotechnet,  Knowledge broker with branch insight and knowledge of partners’
strengths
Evidence
DTU Symbion, ISIS  Access to venture capital knowledge/Provide financial support in pre-
Innovation seeds market
Improving Technology Transfer
DERI, Mobile Life  Bring together key elements of the research process, facilitate a more
Centre, Biotechnet effective technology transfer
 Provide R&D infrastructure access
 Personal exchange/ in-house internships /training of PhD students
 Increase recruitment opportunities
Facilitating the Creation of Clusters
Fraunhofer CNT ,  Unique set of stakeholders including government’s innovation agency,
Mobile Life, scientific institutes, municipal partners, SMEs and global players from
DERI, Biotechnet ICT industry
Bolstering Innovation
Mobile Life Centre,  Coherent strategic objectives/consistent with broader strategic
Fraunhofer CNT government’s policy
 Industry led/ Market driven competence centre
Biotechnet  Evaluation of marked submitted proposals
 Retroactive expenses’ repayment

8. 8
Leveraging Public Policies
Creating Social Capital
DPI, CNT, MMV , JTI  Co-ordinated efforts by a wide range of specialists on complex research
Artemis topics multi-disciplinary in scope
Evidence
High Level Skills Transfer
Mobile Life Centre,  Reduce the strong cultural divide between private industry and
CNT, DPI academia
Solving Market Failure
MMV  Align interests of public and private partners by facilitating delivery of
new effective and affordable products to the market
Governance for Public R&D
MMV  Independent board entrusted with major financial, ethical and research
selection issues
 Output based/Termination of less promising projects
Boosting Competitiveness
Fraunhofer CNT  Build a local industry cluster
 Improve research infrastructure/laboratory facilities
JTI Artemis  Align research strategy

9. 9
Lessons learned
Creating Social Capital
 PPP can build social capital by creating environments where different
knowledge creators can effectively and successfully co-operate
Evidence
 PPPs offer a valuable means to ensure that state/IFIs sponsored RDI
funding is more effectively employed where universities (as in the
South and East Mediterranean) use traditional channels of knowledge
delivery
Governance for Public R&D
 PPPs offer a better solution to cut red tape in supporting RDI
 PPPs provide incentives, embedded control at entry and post
research evaluation systems through KPIs
Boosting Competitiveness
 South and East Mediterranean Countries have the opportunities to
create clusters/centres of excellence in key area of relevant RDI, (e.g.
solar energy, irrigation)
 PPPs are a very effective way to both create and sustain clusters

10. European PPP 10
Expertise Centre (EPEC)
Capacity Building,  EPEC is a joint initiative of the European
Institutional Commission, EIB, EU Candidate and Member States
strengthening and  EPEC assists the public sector to improve the
programme support conditions for delivering more successful PPP
Instruments
projects via:
(i) Network activities including working groups
and workshops supported by the EPEC
Executive (an analytical team with both critical
mass and experience in PPP transaction
advisory)
(ii) Bilateral support on PPP programme
implementation
 EPEC provides link to the private sector PPP
community through Private Sector Forums
 The EPEC network links over 27 countries : Austria,
Belgium, Bulgaria, Croatia, Cyprus, Czech Republic,
Denmark, Finland, France, Germany, Greece,
Hungary, Ireland, Israel, Italy, Latvia, Lithuania, Malta,
Montenegro, Netherlands, Poland, Portugal,
Rumania, Scotland, Slovak Republic, Slovenia,
Spain, Turkey, and United Kingdom

11. Claudio Cortese Thomas C. Barrett
Operations outside the EU Technical and Financial Advice
Deputy Director General Director
cortese@eib.org barrett@eib.org
Javier Gutierrez-Degeneve Nick Jennett
Head of the Near East Division European PPP Expertise Centre
gutierre@eib.org Head of Division
jennett@eib.org
Ioannis Kaltsas
Policy and Trust Funds Francesco Totaro
Contacts
Head of Division European PPP Expertise Centre
kaltsas@eib.org Advisor
totaro@eib.org
Alain Nadeau
Head of the Maghreb Division
nadeau@eib.org