Expert evaluation network delivering policy analysis on the performance of cohesion policy 2007-2013 : task 1 : policy paper on innovation : Malta

Abstract

This report reviews ERDF contribution to the innovation policy in Malta over the 2007-2013 programming period and its implementation to date. The Maltese innovation policy is centralised due to the limited size of the country and to the lack of sub-national authorities, except municipalities which do not have competences in the field, The role of ERDF is central both strategically and financially. ERDF programmes do not only represent the principal source of funding for innovative activities in Malta but also contribute to creating a coherent policy and implementation structure in this area. The Operational Programme I “Investing in Competitiveness for a Better Quality of Life”, is cofinanced by ERDF and the Cohesion Fund. This programme primarily supports business investments, infrastructure, RTDI, tourism, transport, environment, energy, education and social infrastructure, urban regeneration, health and e-society etc. The first axis of the OP is fully dedicated to innovation, moreover, priority axis 6 (urban regeneration and improving the quality of life) also finances relevant initiatives. According to our definition of innovation, approximately €89 million of ERDF have been allocated to measures geared towards: creating an innovation friendly environment (47%); knowledge transfer and poles (33%); boosting applied research (20%). In terms of instruments used, the biggest emphasis has been placed on activities to enhance innovation infrastructure and encourage networking between business and knowledge based institutes. ERDF is used to encourage collaborative research and development and provide grants for SMEs. Funding also assists the commercialisation of academic research and provides innovation advice and guidance in the broadest sense. There is no evidence on performance of innovation policy in terms of relevant evaluations and studies. The Mid Term Evaluation of OP I 2007-2013 is now underway and will be concluded by the end of 2010. In relation to the past, the “Analysis of the Impact and Effectiveness of Projects Structural Funds Programme for Malta 2004-2006” is the only evaluation available but it is not relevant since it is focused on the environment. As regards implementation progress, the AIR 2009 reports some delays so far in the start of projects and in disbursement. These are due to changes in technical specifications of tenders; long vetting times; lack of experience in managing structural fund projects by some of the beneficiaries; lower capacity, due to the crisis, of beneficiaries of business aid schemes to provide co-funding etc. Despite these delays, currently the programme is proceeding well. At the end of 2009, there were 16 projects (mainly infrastructures and facilities) and 6 Aid Schemes being carried out. The main challenges facing EU Cohesion Policy co-finance measures, as they attempt to increase the Maltese innovation potential, mainly include: Overcoming the lack of innovation and entrepreneurial culture; Enhancing the capability of Malta to generate new science and new technologies through investment in physical infrastructures and support to technology-intensive firms ; Increasing active participation in international networks