R&D&I MARKET IN POLAND - SUPPOR T FOR RESEAR CH AND DEVELOPMENT AND INNOVATION ACTIVITY OF ENTERPRISES - POLISH INVESTMENT AND TRADE AGENCY

 
R&D&I MARKET IN POLAND - SUPPOR T FOR RESEAR CH AND DEVELOPMENT AND INNOVATION ACTIVITY OF ENTERPRISES - POLISH INVESTMENT AND TRADE AGENCY
YEARS

R&D&I
Market
in Poland
Support for research
and development
and innovation activity
of enterprises

warsaw , n ovember   2015
R&D&I MARKET IN POLAND - SUPPOR T FOR RESEAR CH AND DEVELOPMENT AND INNOVATION ACTIVITY OF ENTERPRISES - POLISH INVESTMENT AND TRADE AGENCY
We are effective

                                                                                           Over200        completed projects,
                                                                                           for which we have obtained over
   Our consultants have helped large companies

                      obtain over      2
                                    PLN billion                                            PLN 3.8 billion       state aid

 Our clients have received over

            204 million
                                                                                                             We have obtained some of the
      PLN                                                                                                    biggest subsidies in Polish history
                                                                                                             for enterprises of over
            for pro-ecological
                  investments                                10 years                                        PLN 150 million

                                                               3.8 bn
                                                                                                             PLN 130 million
                                                                                                             and PLN 116 million
Our clients have received over

    PLN   700 million
            of tax exemptions
                                                      pln
               within the SEZ                               for companies

                                                             1
                                                                                                We have obtained over    PLN    270 million
                                                                                                for our clients for realisation of shared service

                                                 No.
                                                                                                centres and R&D centres

                                                                                                We have provided advisory services to large,
                                                  advisor                                       medium, and small companies operating
                                               in obtaining                                     in areas such as
                                                grants for                                      automotive industry                 IT
                                                companies
     Forbes magazine                                                                            power engineering                   pharmaceuticals
   has twice awarded us
    the title of the best
  advisor in obtaining                                                                          environment protection              food processing industry
 grants for companies
   in the 2007-2013 EU
   programming period

                                                                                                 The 2015 European Fund ranking
                                                                                                 recognised us 5 times as the most effective

                                                                 40
                                                                                                 advisory firm (leader of R&D&I in Poland)
Crido Taxand European Consulting Team is composed of almost               experienced
specialists, who provide support to large, medium, and small enterprises seeking funding

             dotacjenainnowacje.taxand.pl – Learn more!                                                                                       YEARS
R&D&I MARKET IN POLAND - SUPPOR T FOR RESEAR CH AND DEVELOPMENT AND INNOVATION ACTIVITY OF ENTERPRISES - POLISH INVESTMENT AND TRADE AGENCY
R&D&I
Market
in Poland
Support for research
and development
and innovation activity
of enterprises

wa r saw , n ov e mb e r   2015
Table of Contents                      2

R&D&I
sector 6
potential

Patent
and tax  26
environment

Support
for R&D&I – available 38
programmes

Effective
preparation 64
of the project

Appendix

� Basic Definitions 72

� Technology Readiness Levels (TRL)   80

� National Smart Specialisations      81

Project Partners                      84

The Authors                           86
4

    Preface
5

           Financing the area of R&D&I is always a huge challenge. To some extent, the market of-
           fers attractive commercial support here, this being the element of all business activity
which is considered the riskiest and most challenging. On the other hand, it is through R&D&I ac-
tivities that companies build their market value and competitiveness. It is difficult to talk of a healthy
economy if it is not generating an adequate quality and quantity of research projects that allow the
development of competitive advantages at the level of knowledge and innovation. Poland has
been given a tremendous opportunity to support the whole R&D&I sector with public funding, and
above all from European subsidies. But there is still the art of effective transition from the research
and science sector to business; while European funds do not have the formula for this, they can
co-finance the process. And since public funds are also available to finance this process, all that
remains is to try, to take that risk. Along with the co-authors of this Report, I would like to encoura-
ge entrepreneurs to take this step, and to show that it is worthwhile.

Michał Gwizda
Partner, Crido Taxand

         The index of expenses on research and development is growing, slowly but steadily, driven
         by the excellent Polish human resources. So is the number of enterprises engaged in rese-
arch, development, and innovation. These trends are reflected in the portfolio of investment pro-
jects based on known-how business supported by PAIiIZ.

Sławomir Majman
President of the Management Board, Polish Information and Foreign Investment

Agency

         Today, companies need new technologies and product innovations as much as they need
         the Internet or telephone contact. Investors and entrepreneurs are searching for not just
individual solutions and tools but rather for complete ecosystems allowing every cell of the compa-
ny to professionally select, finance, and develop new solutions, which will forever change their re-
spective fields.
The access to research infrastructure and an extensive range of innovation-funding instruments
give Polish companies a unique opportunity for dynamic development to strengthen Poland’s
position on the economic map of Europe. The present report serves as both an encouragement
and reference presenting the opportunities open before us, entrepreneurs, and the areas where we
should turn professional.

Magdalena Jackowska-Rejman
President of the Management Board, techBrainers
R&D&I
sector
potential
8                                                                                                                                        R&D&I Market in Poland

    Innovation of Polish
    economy

                                                                   E
         According                                                          ach year, the European                  percentage of people aged between 20
         to the European                                                    Commission prepares the                 and 24 with at least a high school educa-
                                                                            Innovation Union Score-                 tion. The number of people employed in
    Commission report
                                                                            board (IUS)1 report, which              the R&D&I sector is also rising. Over the
    – innovation Union                                        includes evaluation of the innovation                 last decade, this number rose on average
    Scoreboard 2015                                           of member states and selected non-EU                  by almost 14% and the greatest dynamics
                                                              countries based on the value of SII (Sum-             were recorded in the sector of enterpris-
    – Poland falls under
                                                              mary Innovation Index). According to                  es (over 126%).
    the category of the                                       the 2015 report, Poland falls under the                    The improving conditions for
    so-called moderate                                        category of the so-called moderate inno-              R&D&I operations in Poland are con-
                                                              vators, just like the year before.                    firmed by the results of the ranking
    innovators.
                                                                  SII is based on partial parameters                based on the Global Competitiveness
                                                              corresponding to factors called ena-                  Index. One of the three groups of indi-
                                                              blers, firm activities, and outputs. Po-              ces recognised in attempts to establish
                                                              land’s strong points include mainly the               the value of this index is innovation and
                                                              factors falling under the enablers cat-               development, which reflects the quali-
                                                              egory, which covers human resources,                  ty of the business environment and the
                                                              research systems, and R&D funding. Po-                innovation level of the economy. For
                                                              land’s top strong point is human resourc-             2014–2015, Poland was ranked 43rd out
                                                              es – a high number of young scientists,               of 144 countries, ahead of such Euro-
                                                              high percentage of people aged between                pean states as Slovakia, Croatia, Italy,
                                                              30 and 34 with higher education, and                  Slovenia, or Hungary.2

                               Przemysław Hałub                                           serve as the main axis of market competition. There are more and
                               Senior Business Contacts Specialist,                       more inquiries and suggestions submitted to the Wrocław EIT+ Re-
                               Wrocław research Centre EIT +
                                                                                          search Centre, which concern not just analytical services, but rather
                                                                                          the work on e.g. new materials or their new application. It is clear that
                                                                                          as entrepreneurs feel the breath of domestic and often international
    There is plenty of discussion concerning the growth of position                       competition on their back, they know that they can stay and deve-
    on the market through R&D&I activity, but it should be noted that                     lop on the market only if they offer new types of services or a new
    this is a very difficult task, which requires great involvement in not                product portfolio.
    just the technological aspect, but at the management level as well.                          The most satisfying aspect is the growing cooperation in this
    When it comes to Poland’s research and development expenditu-                         scope with Polish companies. However, it should be noted that this
    res, statistics show that the situation is improving, but there is also               is a long process and its important elements are not limited to a go-
    a lot of work ahead.                                                                  od research team and available infrastructure, but also include excel-
           Our day to day relations with industrial partners and clients                  lent protection of new solutions, sales structures, and the culture
    show that more and more of them are seeing competitive advan-                         of the entire organisation. Therefore, only a few (the top few) are
    tage in new solutions. New products and their development often                       able to succeed on the market based on know-how and innovation.

    1
        http://ec.europa.eu/enterprise/policies/innovation/policy/innovation-scoreboard/index_en.htm.
    2
        The Global Competitiveness Report 2014–2015. World Economic Forum.
1. R&D&I sector potential                                                                                                                                         9

                                                                                                      2020

Gross domestic
expenditure on
R&D in % of GDP
(GERD)
                                                         2014
                                                                                        1.70
                                                 0.94
                                                                                                  Target value

                                                                                             2013

                             2012
                                                                                       0.87
                      0.89
                                                                                                                 FIG. 1 Poland’s strategic targets until
                                                                                                                 2020 – expenditure on R&D activities.

     Cooperation between science and                     expenditure by 12.5%. It should be not-                 to bring Poland closer to the expected
economy, national/regional smart spe-                    ed that, in the long-term, the support                  target value, which will be determined
cializations as well as the development                  for R&D&I is aimed to allow for accom-                  by considerable support for such oper-
and implementation of innovations will                   plishment of the objectives specified                   ations from EU funds. s
form the foundations of the research &                   in the strategic documents, including
development & innovation (R&D&I)                         improvement of Poland’s indices as-
sector in Poland until the year 2020.                    sociated with R&D activity. 2014 saw
According to the data published by the                   growth of the index in scope of R&D
Central Statistical Office (CSO3), R&D                   expenditures in relation to GDP value
spending in 2014 reached PLN 16.168                      to 0.94% from 0.87% in 2013. In the
billion, which exceeded the year 2013’s                  near future, further growth is expected

3
     ttp://stat.gov.pl/obszary-tematyczne/nauka-i-technika-spoleczenstwo-informacyjne/nauka-i-technika/dzialalnosc-badawcza-i-rozwojowa-w-polsce-w-2014-r-,8,4.
    h
    html (accessed on 19.10.2015).
10                                                                                                   R&D&I Market in Poland

     R&D&I activity
     of entrepreneurs

                                    I
          Poland is                     t should be noted that in scope of       rise. Orientation of public aid is even
          experiencing                  the new EU financial perspective for     more important because its amount and
                                        the years 2014–2020, business en-        availability is among the most significant
     rising R&D&I funding
                                        tities will be the main beneficiaries    factors stimulating enterprises to launch
     by entrepreneurs.              of the support programmes and their          R&D&I activity.
                                    role in the growth of Polish knowl-
                                    edge-based economy will continue to

                                                                                   2020

     Entrepreneurs’
                                        2014

                                     no data
                                                                  0.6-0.8       Target value
     Expenditures
     on R&D (BERD)
     in % of GDP                                                   2013

                             2012
                                                               0.38
                            0.33
                                                                                 FIG. 2 Poland’s strategic targets until
                                                                                 2020 – entrepreneurs’ expenditure
                                                                                 on R&D activity.
1. R&D&I sector potential                                                                                                                                              11

            45

           40
                                                                                                                                              46%
            35                                                                                    44%
            30

            25
                                                       37%
            20

            15

            10

              5

             0

                                                  2012                                       2013                                        2014

FIG. 3 Businesses’ contribution to the                       Poland is experiencing rising                             In 2013 Poland was ranked as the
financing of R&D&I in the years                           R&D&I funding by entrepreneurs. In                        10th EU state in respect of the value of
2007–2014.                                               2014, 47% of all expenditures made in                     innovation-related contributions made
                                                         Poland for R&D activity by the public                     by the private sector.5 When we com-
                                                         (government, higher education) and                        pare the average amount of R&D&I
                                                         private (enterprises, private non-com-                    spending (according to Eurostat) with
                                                         mercial institutions) sector were costs                   the number of innovative companies,
                                                         covered by entrepreneurs. In the previ-                   it shows that the number of proactive
                                                         ous years, they were at 44% (2013) and                    R&D&I entities is relatively limited, yet
                                                         37% (2012) (Image 1).4                                    they are sufficiently funded.6

                         Ryszard Dyrga                                                       To us, one of the biggest research and development centres
                         President of the Management Board                            in Poland, the operations of PIaFIA and NCRD are very important
                         Intel technology Poland Sp. z o.o.
                                                                                      and they also contribute plenty to the general change of approach
                                                                                      to R&D in our country. We are very glad to see what we have se-
                                                                                      en over the past few years – work to adapt legal regulations to the
We are very satisfied to see that the expansion of the research and                   transforming market and macroeconomic conditions, stimulation of
development (R&D) sector in Poland is so well perceived and has                       cooperation among research and development entities, business
taken its due spot. This is not just due to the understanding of the                  sector, academies, and business environment, active support for
business sector that research and development effectively lead to                     commercialisation and transfer of the results into the economy, as
the commercialisation of scientific research, production, and imple-                  well as work on the development of young scientists. We also appre-
mentation of new, often unique products and services, and, conse-                     ciate the growing potential for research and development funding.
quently, to competitive advantage, but also thanks to the leading                            I am convinced that all of the aforementioned activities will
roles of the institutions operating in the business environment and                   entail considerable growth of expenditures for research and deve-
government agencies, including Polish Information and Foreign In-                     lopment, which will raise knowledge, skill, and entail employment of
vestment Agency (PIaFIA), National Centre for Research and De-                        many new people at highly demanding jobs and inflow of investors
velopment (NCRD), Pomerania Development Agency, or Invest                             to let Poland take a high place among the most innovative countries
in Pomerania.                                                                         in Europe and the world.

4
   ttp://stat.gov.pl/obszary-tematyczne/nauka-i-technika-spoleczenstwo-informacyjne/nauka-i-technika/dzialalnosc-badawcza-i-rozwojowa-w-polsce-w-2014-r-,8,4.html
  h
  (accessed 19.10.2015).
5
   Eurostat Statistics Database.
6
    Nieć M., Działalność innowacyjna przedsiębiorstw w Polsce na tle krajów Europy (Innovative Operations of Polish Businesses in Comparison to European Countries).
     From: Świt innowacyjnego społeczeństwa. Trendy na najbliższe lata (The Dawn of an Innovative Society. Trends for the Upcoming Years). PAED, 2013.
12                                                                                                                                                 R&D&I Market in Poland

     More and more enterprises are creat-                            outsourcing centres (BPO), IT out-                      At this time, there are 532 centres with
     ing their own R&D departments and                               sourcing centres (ITO) and research                     foreign capital, 62 of which were estab-
     innovative service centres with diverse                         and development centres (RDC). In                       lished last year.7 There are also several
     operating profiles. They include shared                         less than three years, the innovative                   dozen centres established by Polish
     service centres (SSC), business process                         business sector in Poland grew by 50%.                  investors.

                       Sector                                                                          Selected R&D centres

                                                                                 Bielsko-Biała (Avio), Rzeszów (Pratt & Whitney, Hamilton Sundstrand),
                  Aerospace
                                                                                                    Warsaw (General Electric EDC)

                                                         Częstochowa (TRW Automotive), Gliwice (Tenneco), Grójec (Faurecia), Cracow (Delphi), Poznań (Volkswagen),
                 Automotive
                                                                Rzeszów (BorgWarner), Skawina (Valeo), Tczew (Eaton), Wrocław (WABCO, Remy Automotive)

                                                                             Białystok (QBurst), Gdańsk (Intel), Katowice (Bombardier, Rockwell Autom.),
                                                                           Cracow (Google, ABB, Delphi, IBM, Motorola), Łódź (Bosch - Siemens, Ericpol),
             Business services                                              Poznań (GlaxoSmithKline, McKinsey&Co, Microsoft, Roche), Szczecin (Tieto),
                                                                           Warsaw (Google, Oracle, Samsung, JDA, Symantec), Wrocław (Siemens, Alstom,
                                                                                                 Volvo, Qiagen, McKinsey&Co, Irevna)

              Other sectors,                              Białystok (Platige Image), Gdańsk (Humax), Katowice (Mentor Graphics), Cracow (ABB,CH2m Hill, Air Liquide
         including: electronics, machine                     Global E&C Solutions Poland S.A., Pliva), Łódź (Mabion), Pabianice (Adamed), Poznań (GlaxoSmithKline,
            industry, nanotechnology,                    Unilever), Radzymin (Cederroth) Starogard Gdański (Polpharma), Warsaw (General Electric, Top GaN, Adamed),
         pharmaceuticals, biotechnology                                                                   Wrocław (3M)

                                                          Białystok (Transition Technologies), Gdańsk ( Compuware), Gdynia (Thomson Reuters), Katowice (Ontrack),
                                                         Cracow (Luxoft, Apriso, Sabre, Ericpol), Łódź (TomTom, Samsung, AMG.net, Ericpol, Microsoft), Opole (Future
                IT and
                                                                                            Processing), Poznań (Microsoft, Telcordia)
          telecommunications
                                                          Warsaw (SAS Institute, Opera Software), Wrocław (Dolby, Tieto, Capgemini, Opera Software), Zielona Góra
                                                                                                   (Advanced Digital Broadcast)
     Source: http://www.paiz.gov.pl/sektory/ (accessed 19.10.2015)

     Table 1 Selected R&D centres                                        In addition to the relatively high                  and other institutions is close to the av-
     established by companies operating                              availability of capital, another strength               erage European level; the cooperation is
     in specific sectors in Poland.                                  of the Polish R&D&I sector is the co-                   most-frequently effected with suppliers
                                                                     operation between the various types of                  (of equipment, materials, components)
                                                                     entities in supporting innovation. The                  – 23%, or clients and consumers – 14%.8
                                                                     cooperation between Polish companies

                                   Arkadiusz Lupierz                                              move such key competences as development of innovative projects
                                   Manager of the Pneumatic System
                                   Development Department
                                                                                                  to their Polish departments.
                                   Faurecia Grójec R&D Center S.A.                                     Such corporate policy is an excellent opportunity for Polish engi-
                                                                                                  neers, who not only contribute to the creation of innovation, but also
                                                                                                  develop their competences and become key and valued specialists
     In scope of functionality, material consumption, and miniaturisation,                        in their professions.
     innovation is becoming the main criterion of choice of an automoti-                               It is important that this trend and opportunity be recognised by
     ve provider, especially in the premium class. Various financial instru-                      the institutions providing the support, as said institutions can streng-
     ments available in Poland and qualified engineering staff are intere-                        then or weaken this process with their catalogue of criteria evaluating
     sting enough to big international corporations, so that they decide to                       individual tools.

     7
         Association of Business Service Leaders (ABSL), Sector of innovative business in Poland, 2015.
     8
         The Down of Innovative Society. Trends for the coming years. PAED, 2013.
1. R&D&I sector potential                                                                                                                      13

                       Konrad Dróżka                                      In an age of changes under the collective banner of Industry 4.0,
                       Director for Polish Market Affairs
                       Transition Technologies S.A.
                                                                     we believe that we can transform Polish economy together and col-
                                                                     lectively succeed not only locally, but also on the international arena.
                                                                     This is why the current R&D activity of Transition Technologies fo-
                                                                     cused on intelligent products in new, transformed, intelligent facto-
For many years, Transition Technologies S.A. has been focusing on    ries. We believe that this will be the source of the greatest and most
R&D cooperation with science environments and industrial partners.   interesting technology-based changes, specifically in scope of the
The company also holds the status of a Research and Development      realisation of the Internet of Things concept.
Centre granted by the Ministry of Economy in 1997.

Fig. 4 Selected R&D centres.

                               Starogard                             Gdynia                    gdańsk
                                  gdański
                                                                     Thomson                   Intel
                                    Polpharma                        Reuters

                                                                                               tczew                     Białystok
                                                                                               Eaton                     Avio
                                                                                                                         QBurst
       szczecin                                                                                                          Transition
                                                                                                                         Technologies
               Tieto

                                                                                                                         warszawa
         poznań
                                                                                                                         General Electric
         McKinsey
                                                                                                                         (EDC)
       Volkswagen
                                                                                                                         Oracle
   GlaxoSmithKline
                                                                                                                         Samsung
          Unilever
                                                                                                                         Google
         Microsoft
                                                                                                                         Symantec
            Roche

                                                                                                                         grójec
 zielona góra
                                                                                                                         Faurecia Capgemini
  Advanced Digital
        Broadcast

                                                                                                                         rzeszów
                                                                                                                         Pratt & Whitney
      wrocław                                                                                                            BorgWarner
                                      opole
        WABCO                                                                                                            Hamilton
         Siemens                        Future                                                                           Sundstrand
          Alstom                    Processing
            Volvo
 Remy Automotive
                                                                                                                         łódź
       McKinsey
                           częstochowa                                                                                   Bosch-Siemens
            Tieto
                                        TRW                                                                              Ericpol
                                   Automotive                                                  kraków                    Microsoft
                                                                                               Delphi
                                                                                               ABB
                                                                                               IBM
                                    gliwice                                                    Motorola
                                      Tenneco                                                  Capgemini
                                                                     katowice
                                                                     Bombardier
                                                                     Rockwell                  skawina
                                                                     Automotive
                                                                     Mentor Graphics           Valeo

Source: Prepared on the basis of: http://www.paiz.gov.pl/sektory/
badawczo_rozwojowy (accessed 19.10.2015).
14                                                                                                                                                  R&D&I Market in Poland

     Influence of public support
     on R&D&I activity of entrepreneurs

                                                                  T
          Significant                                                       he Innovative Economy Oper-                     products resulting from supported pro-
          influence of                                                      ational Programme (IE OP) for                   jects in the total number of implement-
                                                                            the years 2007–2013 has had                     ed innovative products was between 55%
     projects implemented
                                                                            considerable influence on the                   (in the first year after receiving funding)
     under IE OP is                                               growth of innovative operations of busi-                  and 71% (in the second year after receiv-
     recognized also in the                                       ness entities in Poland. As shown in the                  ing funding). There is also a clear influ-
                                                                  surveys performed by the Polish Agency                    ence of projects realised in scope of the
     R&D activity od
                                                                  for Enterprise Development9, most com-                    IE OP in the R&D activity of enterprises.
     enterprises.                                                 panies invest in process innovations and                  Compared to the pre-funding period, the
                                                                  the number of implemented product in-                     number of beneficiaries performing in-
                                                                  novations has risen. In scope of innova-                  ternal R&D activity rose by 21 pp.10
                                                                  tive products, the share of implemented

                                     Ireneusz Łuczak                                             by the Ministry of Economy in 2009 as it granted our company
                                     President of the Management Board
                                     EC Engineering Sp. z o.o.
                                                                                                 the status of a Research and Development Centre. We see sup-
                                                                                                 port from EU funds as important, especially due to the process
                                                                                                 of introducing our engineering work into serial production. The
                                                                                                 upcoming new Union perspective will definitely provide a signi-
     Since the start of its operations, EC Engineering has been invo-                            ficant development factor for our company and the entire public
     lved in research and development projects, which was recognised                             transport sector.

                                                                                         IE OP                                               Measure 4.5.

     Table 2 Summary of support provided
     in scope of measure 4.5 IE OP
     as of late June 2015.
                                                                         Number of concluded agreements                             147      (including 137 projects directly
                                                                                                                                             associated with R&D activity)

                                                                      Investment expenditures (in PLN billion)                      14.8

                                                                       Including eligible costs (in PLN billion)                    11.2

                                                                                Declared employment                                 18 193

     Source: Ministry of Economy, June 2015.
                                                                     Amount of offered support (in PLN billion)                     3.4

      9
           adura-Lichota P., Innowacyjna przedsiębiorczość w Polsce, odkryty i ukryty potencjał polskiej innowacyjności (Innovative business in Poland, discovered and hidden
          Z
          potential of Polish innovation), PAED, 2015.
     10
          As above.
1. R&D&I sector potential                                                                                                                           15

                                                                                                      Eligible costs       Amount of support
        Company                               Project name                        Location           (in PLN million)        (in PLN million)

                                                                                                                                   6.7
                                     Creation of a Dolby sound system
  Dolby Poland Sp. z o.o.                                                          Wrocław                 16.9
                                     research and development centre

                                     Research and development centre
                                                                                                                                   9.9
General Electric Company
                                   for new technologies reducing exhaust           Warsaw                  33.1
    Polska Sp. z o.o.
                                     emission and exhaust optimisation

                                                                                                                                    6.1
   Faurecia Grójec R&D                Creation of a car seat component
                                                                                   Grójec                  15.3
       Center S.A.                    research and development centre

                                                                                                                                   6.4
                                  Creation of a Research and Development
     Grupa Kęty S.A.                                                                Kęty                   12.9
                                         Centre at Grupa Kęty S.A.

                                                                                                                                    1.3
                                  Creation of a Research and Development
    INGLOT Sp. z o.o.                                                             Przemyśl                 2.6
                                        Centre at INGLOT Sp. z o.o.

Source: Ministry of Economy, June 2015.

                                                                                                      B e s t     P r a c t i s e
Table 3 Examples of companies which
received support for R&D activity                                          Łukasz Bratek
under IE OP 4.5.                                                           Member of the Management Board,
                                                                           Director of Broadcast Technology
                                                                           Dolby Poland Sp. z o.o.

                                                     Dolby, the company I represent, decid-           ment, we can say that it is a great success,
                                                     ed to open a Research and Development            which has exceeded the initial plans and ex-
                                                     Centre in Wrocław in 2012. Like usually          pectations. The company is currently em-
                                                     in the case concerning such investments,         ploying 80 people and has plans for further
                                                     the key determinants of the location were        development. The engineers play key roles
    An important instrument of support               availability of qualified personnel (in this     in both product development and research
realised by the Ministry of Economy in               case programmers and testers) and costs          activity. We hold several patents, which
scope of the IE OP was measure 4.5.                  of research and development operations.          would not have been possible without the
“Support for investment of considerable              Several cities in central and eastern Eu-        contributions of our engineers.
importance to the economy”, which was                rope were taken under consideration and                  Cooperation with the world of sci-
aimed to improve the competitive posi-               the differences among them were mini-            ence turned out to be a challenge. First of
tion of the economy by increasing the                mal. In such situations, the advantage of-       all, it was very hard to find reasonable as-
number of investments with high inno-                ten falls to a given state or city because of    sociates with scientific degrees on the job
vation potential in the following sectors:           financial support.                               market for various reasons. Second, coop-
    – p roduction – with high added                       Looking from the perspective of            eration with academies involves consider-
       value or generating a considerable            three years from the centre’s establish-         able administrative charge.
       number of new jobs,
    – innovative services – with special
       consideration of investments as-
      sociated with launch of R&D ac-                associated with R&D&I (innovative                The Union funds allowed for devel-
      tivity in the company.                         technologies, establishment of enter-            opment of projects carrying a higher
    The programme was very popular                   prises by academies, existing R&D cen-           risk, which would not have been pos-
among the investors. In scope of the                 tres and enterprises, etc.).                     sible without the support because they
entire measure 4.5 of the IE OP, grant                   It should be noted that the benefi-          would have been too risky, especially for
agreements were signed with 142 com-                 ciaries of the support in scope of this          micro and small enterprises. In scope
panies, which declared total invest-                 measure include both foreign compa-              of the new financial perspective 2014-
ment expenditures of PLN 14.2 billion                nies and enterprises with Polish capital.        2020, there is even more funds oriented
and eventual establishment of over 18                    There is no doubt that the support           towards R&D&I activity, which is the
thousand new jobs. 96% of all appli-                 in scope of IE OP stimulated develop-            source of the greater competitiveness of
cations concerned projects associated                ment and encouraged entrepreneurs                the enterprises domestically, but most
with investment in companies directly                to prepare and implement innovations.            of all internationally.
16                                                                                                                     R&D&I Market in Poland

         Investments in scope of R&D activ-              projects with total declared expendi-       create almost 700 new jobs, which
     ity are also attracted by public support            tures of PLN 161.4 million and 1909         constitutes over 30% of the new jobs
     in scope of Special Economic Zones                  new jobs, almost all for people with        declared in scope of the 19 supported
     (SEZ). Over the past nine years, SEZ                higher education. These projects re-        research and development projects.
     hosted 13 projects investing in research            ceived support of PLN 34.4 million.         The second biggest group is composed
     and development activity with total in-                 Considering the numbers of project      of Polish companies, which are planning
     vestment expenditures surpassing PLN                locations, Wrocław turned out to be         to realise 5 projects and create over 235
     167 million and 450 declared new jobs.              the most attractive one for companies       new jobs.
     The most interest in such support was               considering R&D projects. The capital           When it comes to the sector profiles
     demonstrated by companies with Polish               of Lower Silesia hosted 6 projects ap-      of the parent companies realising R&D
     capital (8 out of the 13 investments).              plying for government grants for R&D        potential expansion in Poland, the big-
         Up to this point, the Wałbrzych SEZ             projects with 460 target new jobs and       gest group is composed by companies
     obtained the most projects – 4 invest-              expenditures exceeding PLN 66.8 mil-        of the IT sector with 12 (including kCu-
     ments with investment expenditures of               lion. Cracow was second, followed by        ra, F5, SolarWinds) businesses which
     PLN 111 million and planned eventual                Łódź and Warsaw.                            will create 1050 new jobs for people
     205 new jobs. The Łódź, Pomeranian,                     American companies are the most         with higher education. The next big-
     and Cracow zones obtained 2 R&D                     eager ones to take advantage of support     gest group of applicants was composed
     projects each.                                      in scope of the programme, as 8 of the      of companies operating in production:
         Over the years 2011–2015, and                   19 companies or almost 42% of all ap-       chemical (e.g. Ciech), electronics (Sam-
     in scope of the government support                  plicants in scope of R&D activity were      sung Electronics), automotive (e.g.
     programme, financial grant proposals                American. The American entrepreneurs        TRW), or food (Mondelez).
     were offered to 19 R&D activity growth              declared that they would collectively

     FIG. 5 Examples of investors operating
     in scope of selected SEZ.

                                                                               sopot                                        olsztyn
                                           Słupsk                              Pomorska SEZ                                 Warmińsko-
                                                                               – Biomag                                     -Mazurska SEZ
                                        Słupska SEZ

           Kostrzyn
           Kostrzyńsko-
           Słubicka SEZ
              – Gryfilab
         – Nafta Polska                                                                                                  Łódź
                                                                                                                         Łódzka SEZ
                                                                                                                         – Mabion
             Legnica
          Legnicka SEZ

           Kamienna
               góra                                                                                                      starachowice
        Kamiennogórska                                                                                                   SEZ Starachowice
        SEZ for Medium
                Business
                                                                                                                         tarnobrzeg
                                                                                                                         Tarnobrzeska SEZ
                                                                                                                         EURO-PARK
         wałbrzych                                                                                                       WISŁOSAN
        Wałbrzyska SEZ
           „Invest Park”
              – Webco                                     Katowice                                                       Mielec
                 – OGI
          – Advatnech                                    Katowicka SEZ                                                   Mielecka SEZ
                                                                                                                         EURO PARK
                                                                                          Kraków
                                                                                                                         MIELEC
                                                                                          Krakow
     Source: PIAFIA calculations based on data of the Ministry of
                                                                                          Technology Park
     Economy, 2015.                                                                       – Selvita
1. R&D&I sector potential                                                                                                                                17

                                                                                       B   e   s   t      P   r   a   c   t    i   s   e

     The first company to obtain support
     for realisation of a R&D project in scope                                    – modernisation of the software for the base station based on
     of the government support programme                                             the FlexiBTS platform,
                                                                                  – solutions for the new generation operating support system
                                                                                     required for full control of mobile networks.
                                                                                  In association with the project, the centre’s employ-
The first company to obtain support in scope of the government               ment, which covered 1975 jobs in the year of application
programme for the R&D project based on the expansion of the                  (2011), was planned to grow by 200 more jobs. At present time, the
existing Centre of Technology in Wrocław was Nokia Siemens Ne-               company is employing 3000 people in Wrocław alone.
tworks (currently Nokia). The project assumed expansion of opera-
tions through development of innovative solutions in scope of the
following:

                       Bartosz Ciepluch
                       Member of the Management Board
                       Director of the Nokia Networks European
                       Programming and Engineering Centre in Wrocław
                       Nokia Solutions and Networks Sp. z o.o.

Nokia Solutions and Networks Sp. z o.o. is the leader of the market          reporting. Support from the Polish Information and Foreign Invest-
of providers of services, equipment and software used to create and          ment Agency (PIaFIA) is also important as it assists entrepreneurs at
maintain telecommunications networks by mobile operators. Every              every investment stage.
other mobile connection in the world is made with our technical so-                The list of positive conditions includes extensive cooperation
lutions. For the past 15 years, the company has been performing re-          with Polish academies, which work with the company to provide edu-
search and development (R&D) in Poland at its own R&D centres                cation and obtain information. Nokia’s employees host technical lectu-
(Wrocław and Cracow). It holds the status of a research and deve-            res and organise periodical training courses. Academies respond with
lopment centre and its IT laboratories in Wrocław are the biggest and        well-prepared graduates who can start work right after graduation.
most modern such facilities in Europe. The Wrocław-Cracow centre,
which currently employs approximately 3300 people, is the biggest            Negative external conditions
IT R&D centre in Poland and hosts work on the newest technologies            We believe that the tax relief associated with deductions to the inno-
(5G, LTE, SRAN). The revenue from R&D activity reached PLN                   vation fund for enterprises holding status of a Research and Deve-
500 million in 2014.                                                         lopment Centre is negative. Current interpretation of the regulations
                                                                             fails to recognise the expenses of this fund as tax-deductible. Only
Positive external conditions                                                 contributions to this fund can be recognised as such. Therefore, the
Enterprises operating in R&D can receive great support from EU               tax preference is low, because it only allows for earlier cost settlement.
structural funds in scope of the Intelligent Development Operatio-           Simultaneously, the entrepreneur is subject to annually file reports to
nal Programme. There are programmes for establishment or expan-              the Ministry of Economy and keep separate records covering the in-
sion of R&D centres and for realisation and implementation of R&D.           novation fund.
There are also programmes for R&D in scope of demonstration and                     In conclusion, the tools of support should constitute additio-
pilot installations and establishment of scientific and industrial consor-   nal advantage for the entities performing research and develop-
tia (for R&D operations).                                                    ment to reduce the actual costs of said R&D. EU structural funds
       The Polish government is offering support for foreign inve-           and government grants are excellent forms of public assistance
stments in R&D in form of grants at 35 new jobs and investment               for R&D operations. Meanwhile, the fiscal support instruments
expenditures over PLN 1 million. Even though the level of support            must be redefined. Entrepreneurs performing R&D should rece-
does not exceed 10% of the investment, advantages include simpli-            ive support as they drive the innovation producing economic and
fied administration procedures of both grant applications and result         social benefits.
18                                                                                                                                 R&D&I Market in Poland

     Survey of the activity
     of Polish R&D departments

                                                                     T
                                                                              he path to innovative suc-       and implementation of new products.
           The main R&D opera-                                                cess requires a company          The obtained results were compared
           tions performed in                                                 to continuously seek new         with the data concerning the situation
                                                                              solutions with various           in Europe obtained from analyses of
     Polish companies in-
                                                                 tools. A survey of Polish R&D depart-         available reports and interviews with
     clude development and                                       ments was performed in August of 2015         experts.
     commercial release of                                       to learn the needs of and challenges              The survey was used to prepare
                                                                 faced by the B&R departments of small,        a report covering the organisation of
     new products (indicat-
                                                                 medium, and big companies.11                  research and development operations
     ed by of the surveyed                                           The survey covered over 60 in-            in Polish companies, its comparison
     entities), patent protec-                                   dividual inter views with top-level           to other European countries, and the
                                                                 managers of innovative companies              mechanisms and tools which the man-
     tion for inventions, and
                                                                 operating in Poland with structures           agers of the R&D departments would
     development of employ-                                      responsible for research, development,        like to see in their companies.
     ee initiatives.

     FIG. 6 Scope of undertaken R&D activities.

                                                                                                                                                  80%
                                                                                                                      70%

                                                                                      50%

                    30%                                  30%

         Incubator /                           Scientific research            Intrapreneurship             Patent protection for       Development and
     accelerator – project                       – technology                – development of                   inventions             commercial release
       recruitment and                        development within            employee initiatives                                        of new products
           selection                             the company

     11
          Own research: Techbrainers, 2015.
1. R&D&I sector potential                                                                                                                  19

    The main R&D operations per-            concerning technology scouting is                  The report also notes the lack of
formed in Polish companies include          noteworthy.                                    effect control: the only effectiveness
development and commercial release              Most respondents have a negative           measure used by the respondents con-
of new products (indicated by 80% of        opinion concerning the effects of              cerning the performed operations is the
the surveyed entities), patent protection   their structures. In their opinion, the        use of the granted budget; 55% failed
for inventions (70%), and development       most difficult challenges and problems         to indicate any KPI (key performance
of employee initiatives (50%). 30% indi-    include project selection, external pro-       indicators). However, 30% noted that
cated scientific research and technol-      ject recruitment, creation of interdis-        there are plans to introduce measures
ogy development within the company          ciplinary teams, and establishment of          such as share in revenue from released
and project acceleration and incuba-        relations between R&D and business             products and average time for commer-
tion. A complete lack of indications        planning.                                      cial release from concept creation.

FIG. 7 Evaluation of current operations.

     External project                                                                                                     Poland
         recruitment

    Project selection
                                                                                                                          Europe
Project planning and
       management

     Idea generation

R&D process quality
      maintenance

       Motivation of
         specialists

          Creation of
     interdisciplinary
                teams
   Coordination of
 R&D and marketing

          Transfer of
     technology into
         production

       Cooperation
  between R&D and
           finances

Association between
  R&D and business
            planning

                             No action       Initial effort    Competences             Application      Distribution of        Continuous
                                                                                                        responsibility        improvement
20                                                                                                               R&D&I Market in Poland

          At present time, R&D business en-        to generate new income and conquer          institutions. A clear majority believes
     tities have no specific role in the reali-    new markets. Therefore, R&D opera-          that the key partners are startups (70%),
     sation of the company’s strategy – this       tions are perceived as the business mo-     companies operating in complementa-
     problem was noted by 70% of the re-           tor required for further development.       ry sectors (65%), and Polish academies
     spondents. Nevertheless, 90% noted            Furthermore, the managers are aware         (60%). s
     that the management of their com-             that innovation-based development
     panies sees R&D as an opportunity             requires cooperation with external

     FIG. 8 Importance of the ecosystem
     in r&d operations.

                                                                                             70%
                                             65%
                                            believe that cooperation
                                            with companies operating
                                                                                         believe that cooperation with external
                                                                                               startups is beneficial

                                       in complementary sectors

                                                                                        60%
                                                   is beneficial

                30%
              believe that
           international                                                                  believe that cooperation

                                                       30%
            cooperation                                                                with Polish academies
              is beneficial
                                                                                                is beneficial

                                                  believe that cooperation
                                                      with foreign
                                                       academies
                                                        is beneficial
                  no one
                   listed
                cooperation
                 with NGOs
1. R&D&I sector potential                                                                                                                                                  21

Innovation ecosystem

                                                                 T
     Clusters and                                                         he scientific potential of                   clusters generate solutions for numer-
     networks of                                                          the Polish R&D&I sector is                   ous social and economic problems and
                                                                          composed of 963 scientif-                    challenges.
cooperation have the                                                      ic entities (as of 2014).12 In                   As the catalyser of cluster organisa-
potential to become                                         scope of the parametrical evaluation per-                  tions, the public sector receives a very
innovative instruments                                      formed in 2014, 42 of them were graded                     effective tool for implementation of eco-
                                                            A+13, which means that they held the                       nomic programmes and a partner for
in the growth of R&D in                                     top potential for scientific and creative                  the realisation of development policies.
Poland.                                                     accomplishments. In scope of research                      Knowledge comes from universities,
clusters generate                                           infrastructures, the direction of changes                  academic environments, and research
                                                            is determined by the Polish Roadmap of                     institutions, which provide innovation
solutions for                                               Research Infrastructure (PRRI) prepared                    and, in return, receive a perspective of
numerous social and                                         by the Ministry of Science and Higher                      the technological needs of business.
economic problems                                           Education14, which received 53 projects                    Money comes from business, which
                                                            in 2014, 20 more than in 2011 (before                      is always the foundation and motor of
and challenges.                                             the update). More projects means higher                    cluster organisations. This is obviously
                                                            potential of scientific entities to perform                an oversimplification, but the operating
                                                            research, including that in cooperation                    mechanism of clusters is indeed locked
                                                            with enterprises.                                          in this triangle of mutual relations.
                                                                There is a big group connecting sci-                       The essence of clusters is also de-
                                                            ence and research entities with enter-                     picted well by the term “coopetition”, a
                                                            prises composed of business-related                        combination of cooperation and com-
                                                            institutions (BRI). BRI support oper-                      petition. This word describes a rather
                                                            ations undertaken by entrepreneurs in                      unique condition, which sees the nat-
                                                            scope of research and development and                      ural competition of business entities
                                                            implementation of innovative solutions.                    combined with their cooperation, which
                                                            Business-related institutions include                      is obviously limited to selected areas.
                                                            technological parks, technological in-                     The companies associated within the
                                                            cubators, business incubators, technol-                    cluster continue to compete with each
                                                            ogy transfer centres, business angle net-                  other, but they can all simultaneously
                                                            works, local and regional credit funds.                    seek space for benefits from trust and
                                                            In 2012, the network of such centres                       cooperation. Examples include collec-
                                                            covered over 800 entities.15                               tive purchasing, development of logistic
                                                                Clusters and networks of coop-                         infrastructure, and building staff by de-
                                                            eration have the potential to become                       veloping vocational education adapted
                                                            innovative instruments in the growth                       for the needs of the companies associ-
                                                            of R&D in Poland. By concentrating a                       ated in the clusters.
                                                            group of competing and cooperating                             Advantages for companies result-
                                                            companies operating in similar indus-                      ing from effective cluster operations
                                                            tries, academic centres, BRI, and public                   include the following:
                                                            administration entities in small space,

12
      ttps://www.nauka.gov.pl/g2/oryginal/2014_07/475a73e93ea6148d2d71ab18d24c4a1e.pdf (accessed on 19.10.2015).
     h
13
     Announcement of the minister of science and higher education dated 4th July 2014 on scientific categories assigned to scientific entities.
14
     https://www.nauka.gov.pl/g2/oryginal/2014_08/caf36c2da9fef183c32ce8772ec5b426.pdf (accessed on 18.10.2014).
15
     A . Bąkowski, M. Mażewska (ed.), Ośrodki innowacji i przedsiębiorczości w Polsce. Raport 2012 r. (Centres of Innovation and Business in Poland. 2012 Report), PAED,
      Warsaw 2012.
22                                                                                                               R&D&I Market in Poland

     FIG. 9 Clustering.

                VOCATIONAL EDUCATION                                              MUTUAL UNION PROJECTS
                 ADJUSTED TO BUSINESS
                        NEEDS

                          INTEGRATION                                                          CREATION
                                                                                            OF ADDED VALUE

         – c ost reduction by establishment   sector, and life science, but only a few       preceding the establishment of a clus-
           of purchase groups,                 of them have the potential for further         ter are often omitted in the Polish social
         – i mplementation of solutions for   development. There is a similar situa-         and economic reality, which may result
           the profession,                     tion in many other European regions,           from the high standards specified in the
         – g eneration of additional income   where the financial support system (in         cluster excellence, i.e. the standards for
           from creation of mutual regional    the case of Masovia, grant support from        the methodology of cluster establish-
           brands,                             EU structural funds) has artificially gen-     ment and management. According to
         –m  ore effective application for    erated activeness of environments with         the cluster excellence methodology, the
           Union funds through estab-          no actual potential to build strong clus-      preparations alone can take up to eight
           lishment of healthy and stable      ter organisations.                             months and the number of potential
           partnerships,                           According to effective method-             members should be at least 100.
         –p referential access to research    ology, the first of many steps preced-             The only effective path leading
           infrastructure.                     ing the decision to establish a cluster        to quick improvement of operating
         And how do cluster organisa-          should be the so-called mapping, i.e.          standards of cluster organisations is to
     tions work in Poland? The Masovian        establishment of the number of en-             introduce the strongest entities into
     Voivodeship is currently home to sev-     tities potentially interested in enter-        the system of development policy im-
     eral dozen cluster initiatives, which     ing the cluster, operating in scope of         plementation. Thankfully, such assign-
     operate mainly in IT, the automotive      a common chain of values. Analyses             ments have already started in Poland,
1. R&D&I sector potential                                                                                                        23

            INTERNATIONALISATION                                                MUTUAL SOLUTION OF
                                                                                 MUTUAL PROBLEMS

        DEVELOPMENT OF PRODUCT,                                                  MUTUAL PROMOTION
         PROCESS, AND MARKETING
              INNOVATION

examples of which include the appear-        1. Aviation Valley Cluster, represented    6. Eastern Construction Cluster, rep-
ing elements of the key cluster system          by the “Dolina Lotnicza” Association       resented by the Polish Consulting
on a national level, but also on a region-      of Aviation Entrepreneurs,                 Association,
al one.                                      2. Interizon Cluster, represented by the   7. West Pomeranian Chemical Cluster
     The National Key Cluster (NKC)             Interizon Foundation,                      “Zielona Chemia”, represented by the
status is granted to clusters with special   3. Metal Processing Cluster, represent-       West Pomeranian Chemical Cluster
importance to the economy and with              ed by the Innovation and Develop-          “Zielona Chemia” Association. s
high international competitiveness.             ment Promotion Centre,
NKC clusters are entitled to preferen-       4. Masovian ICT Cluster, represented
tial treatment when pursuing grants for         by the “Wiedza” Association of So-
ventures from EU funds, specifically in         cial and Economic Development,
scope of R&D&I, as well as support for       5. Polish Aluminium Cluster, repre-
international operations (internation-          sented by City Consulting Insti-
alisation). The following National Key          tute Sp. z.o.o.,
Clusters have been established thus far:
24                                                                                                                                                  R&D&I Market in Poland

     Key directions of changes
     in the period 2014–2020

                                                                      T
          Due to the                                                           he Polish document deter-                    areas were established domestically (see
          establishment of                                                     mining the priority oper-                    attachment no. 1). The intelligent spe-
                                                                               ations in scope of R&D&I                     cialisations of individual voivodeships
     the NSS and RIS                                                           is the Strategy for Inno-                    are specified in scope of the Regional
     catalogue, a few                                            vation and Efficiency of the Economy                       Innovation Strategies (RIS) (see at-
     selected industries are                                     “Dynamic Poland 2020” (SIEE).16 The                        tachment no. 4).
                                                                 operating directions assumed in the                            Due to the establishment of the NSS
     projected to                                                strategy include mainly stimulation of                     and RIS catalogue, a few selected in-
     experience intensive                                        the private sector to invest in R&D&I,                     dustries are projected to experience in-
     development, which                                          support for transfer of knowledge be-                      tensive development, which will receive
                                                                 tween R&D&I and the economy (promo-                        the biggest stream of funds, especially
     will receive the biggest                                    tion of cooperation), and networking of                    when it comes to R&D&I operations. As
     stream of funds,                                            domestic scientific entities with entities                 a rule, only innovative projects fitting
     especially when it                                          abroad. The executive programme to the                     within the scope of domestic or region-
                                                                 Strategy for Innovation and Efficiency of                  al smart specialisations receive support
     comes to R&D&I                                              the Economy is the Programme for De-                       or are treated preferentially concerning
     operations.                                                 velopment of Enterprises until 202017,                     funding access (e.g. additional evalua-
                                                                 which also indicates that certain steps                    tion points).
                                                                 should be taken to improve the flow of                         The trend to focus the support on
                                                                 information between the sectors of sci-                    selected fields is also reflected in the
                                                                 ence and industry, raise interest in mu-                   creation of sector programmes. They
                                                                 tual cooperation, and create an appro-                     include financing programmes for
                                                                 priate system of encouragements from                       R&D&I activities in selected industries.
                                                                 the state to stimulate the development                     They are not, however, established by a
                                                                 of said cooperation.                                       sole decision of a financing institution,
                                                                     The National Smart Specialisa-                         but rather emerge as a result of grass-
                                                                 tion (NSS) is an attachment to the Pro-                    root initiatives taken by representatives
                                                                 gramme for Development of Enterpris-                       of a given sector (who do not participate
                                                                 es. The concept of NSS was established                     in programme financing). Until now,
                                                                 by the EU and results from the strategic                   the National Centre for Research &
                                                                 approach to economic development                           Development (NCRD) operated sector
                                                                 through oriented support for R&D&I.                        programmes for the medical industry
                                                                 The areas of smart specialisations of                      (Innomed) and the aerospace sector (In-
                                                                 countries and regions are subjects                         nolot). The catalogue can be extended
                                                                 with the top development potential in                      in the foreseeable future.
                                                                 the given country/region, which can                            The importance of cooperation be-
                                                                 potentially constitute its biggest com-                    tween enterprises and scientific enti-
                                                                 petitive advantage. Originally, their de-                  ties is growing. The collective ventures
                                                                 velopment should produce the greatest                      of the representatives of both of these
                                                                 added value and actual economic ef-                        environments receive preferential treat-
                                                                 fects. 19 intelligent NSS in five subject                  ment in scope of support from public

     16
          
          Document    passed with the resolution of the Council of Ministers dated 15th January 2013. http://www.mg.gov.pl/files/upload/17492/Strategia.pdf.
     17
          Document passed with the resolution of the Council of Ministers dated 8th April 2014. http://www.mg.gov.pl/Wspieranie+przedsiebiorczosci/
           Polityki+przedsiebiorczosci+i+innowacyjnosci/Program+Rozwoju+Przedsiebiorstw.
1. R&D&I sector potential                                                                                                                 25

                                                                                           B e s t      P r a c t i s e
funds. The scope of the 2014–2020 op-
erational programmes saw the raise of
                                                                  PhD   Pierre Orlewski
potential for grants of scientific centres                        OPEN INNOVATION MANAGER EMEA REGION
in scope of consortia and partnerships                            GOODYEAR INNOVATION CENTRE IN
                                                                  LUXEMBOURG
with companies. The programme doc-
uments also pay close attention to the
development of clusters, which are one
of the forms of cooperation between          Who are the people able to effectively        re examples mentioned frequently in the
science and business, especially the de-     acquire technologies from the outside and     context of open innovation include Pepsi-
velopment of Key National Clusters.          locate them in their companies? Dr Pierre     Co and Lipton (currently Unilever) brands,
    There is also extensive support          Orlewski, manager of open innovations for     which contributed business and technolo-
available for entrepreneurs planning to      the EMEA region at the Goodyear Innova-       gical knowledge concerning appropriately
implement R&D results into their ac-         tion Centre in Luxembourg, an unquestio-      bottled beverages and tea and its proper-
tivities. This support is mainly for the     ned authority in the field of open innova-    ties. The fruit of this cooperation is a pro-
sector of small and medium enterpris-        tion, multiplies examples of companies        duct we all know from store shelves – Lip-
es, which, on the date of the application,   which successfully apply the open innova-     ton Ice Tea. A new product was created,
hold the R&D results necessary for the       tion philosophy. One of them is Procter &     as well as a new competence and profits
investment phase.                            Gamble. 40% of its new products were de-      for both players.
    The growth of the Polish R&D&I           veloped in scope of external alliances. Mo-
sector also means greater presence of
Polish Companies on foreign mar-
kets. Innovative products and services
often serve as the core for establish-       knowledge and experience which can-           or financial) are not enough to stay on
ment of international cooperation net-       not be developed within the company           the wave of new technologies.
works of innovative entities. Some of        or it is unprofitable to do so. Accord-            Open innovation is the ability to ad-
the forms of support for companies in        ing to the open innovation philoso-           equately enrich an organisation’s poten-
scope of operational programmes in-          phy, new products and solutions are           tial with innovative external solutions
clude preparation to enter internation-      created with conscious abandonment            and appropriate management of inter-
al markets, development of plans and         of unlimited authority over the rights        nal solutions. The professionalization
strategies, and promotional campaigns.       to the whole solution and preserva-           of this area in Poland and in Europe is
    Considering the ever-increasing          tion of only the necessary intellectual       becoming more and more valued – not
emphasis on the international compet-        copyrights in scope of business ac-           only by enterprises, but also by their
itiveness of Polish enterprises, we may      tivity. Creation performed “together”         managers, employees, and clients. It
also expect a growth of the importance       makes sense, because the rapid glob-          allows for development of a competi-
of industrial property rights, especially    al progress of science and technology         tive advantage and new business mod-
under the EPO and PCT, which allow           makes simultaneous development of             els and identification of new consumer
applicants to obtain patent protection       internal knowledge in numerous are-           groups. s
outside the territory of Poland.             as too expensive and time-consuming.
    A significant trend of this finan-       When the pressure of competition
cial perspective is the open innovation      rises and impatience of consumers
philosophy, which assumes building a         forces the commercial release of new
competitive advantage based on the           products, own resources (intellectual
Patent
and tax
environment
28                                                                                            R&D&I Market in Poland

                                  T
                                            here are two areas of law      of R&D results. The other is tax law with
                                            of particular importance to    its various mechanisms of preferential
                                            research and development       treatment of R&D activity that may pro-
                                            activities. The first one is   vide particularly attractive incentives for
                               a system of intellectual property rights,   entities engaged in such pursuit.
                               which provides appropriate protection

     Patent statistics

                                  L
          Patent statistics,                egal protection of research    European Patent Office (EPO) with its
                                            and development results is     seat in Munich carries out a full patent
          as one of the most                provided through the cata-     procedure, including decisions to grant
     important measures of                  logue of intellectual prop-    the so-called European patents. Howev-
     innovativeness, indica-   erty rights, which include in particular    er, in order for the European patent to
                               patent protection for technical solutions   become effective in a given EPC mem-
     te that Poland has        satisfying the conditions of patentable     ber state, an additional validation pro-
     improved its position     inventions. The various patent indices      cedure should be performed before the
     in the recent years.      are among the basic measures of the giv-    national patent office (including transla-
                               en economy innovativeness.                  tion of the patent documents). Follow-
                                   Concerning patent indices relative      ing the validation, the European patent
                               to Poland, it should be noted that over     granted by the EPO becomes a part of
                               11 years ago, on 1st March 2004, Poland     the domestic legal regime.
                               entered the European Patent Organi-              Basic patent indices include total
                               sation and became bound with the Eu-        number of patent applications filed to
                               ropean Patent Convention (EPC). EPC         the national patent office.
                               currently includes 38 countries: all EU          Chart 1 presents this number for
                               Member States and countries such as         the Polish Patent Office (PPO) between
                               Switzerland, Norway, Iceland, as well       2002 and 2014, divided by domestic and
                               as Turkey. Pursuant to the EPC, the         foreign entities.
2. Patent and tax environment                                                                                                                                                     29

         Patent
    applications
    to the PPO

          9 000

          8 000
                                                 7740

          7 000
                                                           6593

          6 000
                             6608      6209
          5 000
                                                                                                                                 4657
                                                                                                                        4123                4411
         4 000
                                                                                                             3430
                                                                                                                                                      3941
                                                                                                                                                                       3786
                                                                                                   3140                                                                domestic
          3 000                                                      2812                                                                                               entities
                                                                               2753      2778
          2 000

          1 000
                                                                                                                                                                        155
                                                                                                                                                                        foreign
                0                                                                                                                                                       entities
                             2002      2003      2004      2005      2006      2007      2008      2009      2010       2011      2012      2013      2014

FIG. 1 Total number of patent                                     The drop of domestic patent appli-                      the number of patent applications filed
applications filed to the Polish                              cations in the years 2005–2006 was the                      by domestic entities has pretty much
Patent Office.                                                direct result of Poland’s 2004 entry into                   doubled over the 10-year period.
                                                              the EPC. The option of obtaining pat-                           Under the current legal order 1 ,
                                                              ent protection in Poland through vali-                      patents are subject to national legal
                                                              dation of the European patent granted                       regimes and provide monopoly for use
                                                              by the EPO systematically reduced the                       of the inventions in the given country
                                                              number of applications filed to the PPO                     (since European patents still require
                                                              by foreign entities. Before the entry to                    national validation). Domestic patent
                                                              the EPC, such applications composed                         protection in a single country (e.g. Po-
                                                              approximately 60–70% of all domestic                        land) is effective for inventions of only
                                                              applications whereas there were only                        local importance. Those with high eco-
                                                              155 such applications (less than 4%) in                     nomic importance require much great-
                                                              2014. Simultaneously, the number of                         er territorial protection, which may be
                                                              applications filed to the PPO by domes-                     obtained through an application for the
                                                              tic entities started to rise since 2005,                    European patent filed to the EPO or
                                                              and there were 3,786 inventions filed to                    international PCT2 application, which
                                                              the PPO in 2014. This trend may have                        ultimately can provide for protection
                                                              been adjusted over the past two years,                      in 148 countries worldwide (includ-
                                                              but this does not change the fact that                      ing USA, Japan, China, etc.). For this

1
    I n the near future it is expected that the so-called European patent with unitary will enter into effect, the protection of which will unitarily cover all countries which
     enter the appropriate regulation.
2
     Patent Cooperation Treaty (PCT). The PCT procedure is divided into two phases: international and subsequent national phase. The entity interested in the potential pa-
      tent protection in PCT member states may file an international PCT application (as a single application). Within the international phase of the procedure the applicant
      receives the International Search Report which helps to determine the level of probability whether the invention satisfies the patentabililty conditions. After due time,
      the applicant must decide whether to enter into the national phase in individual countries, where the patent procedure continues in all designated countries in accor-
      dance with local requirements. The patent grant decision falls is at the sole discretion of a national patent office and from the beginning of the national phase the PCT
      application is basically treated as a domestic application. It is worth noting that the national PCT phase may lead to grant of the European patent; where this procedure
      is usually referred to as the “Euro-PCT” route.
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