Regional Innovation Strategy for the South Moravian Region 2014-2020

May, 2014

Contents List of Abbreviations ...... 3 List of Tables ...... 5 Introduction ...... 6 Analytical Part ...... 7 1. Position of the Region ...... 7 2. Research and Development in the Region, Innovative Business ...... 9 3. Public Administration and its Role in the Innovation System of the Region...... 10 4. Main stakeholders of the innovation system - results of the stakeholder analysis ...... 14 Knowledge intensive companies relevant for SMR innovation system...... 14 Public universities and research organisation that are directly relevant for the innovation system...... 15 Support infrastructure for research and innovation ...... 17 Public administration and its research and innovation support activities ...... 19 5. SWOT Analysis ...... 21 6. Methodology for creating RIS SMR ...... 24 7. Specialisation of the Region - Key Economic Domains ...... 25 Proposal Part of the Regional RIS ...... 32 Vision and mission ...... 32 Kea areas of changes A: Pro-innovation administration and governance ...... 33 Key areas of changes B: Excellence in Research ...... 35 Key areas of changes C: Competitive Innovative Companies ...... 39 Key areas of changes D: Top European Education ...... 43 Key areas of changes E: Attractive region (communication) ...... 50 Implementation Structure RIS SMR ...... 52 Annexe 1: Action Plan no. 2014/01 ...... 55 Annexe 2: Data for the analytical part of RIS JMK ...... 103 Annexe 3: Project types in RIS in terms of financing regional interventions from structural funds ...... 107

List of Abbreviations AS Academy of Sciences of the Czech Republic CERIT Centre for Education, Research, and Innovations for ICT CTT Centre for Transfer of Technologies CTO Chief Technology Officer CR Czech Republic CSO Czech Statistical Office EC European Commission ERA European Research Area ESF European Social Fund ESIF European Structural and Investment Funds for 2014–2020 EPO European Patent Office EU European Union FTE Full Time Equivalent GDP Gross Domestic Product GVA Gross Value Added HW Hardware ICT Information and Communications Technology KETs Key Enabling Technologies MIT Ministry of Industry and Trade SMEs Small and Medium-sized Enterprises MEYS Ministry of Education, Youth and Sports NACE Industrial classification OECD Organisation for Economic Co-operation and Development OP EI Operational Programme Enterprise and Innovations OP R&DfI Operational Programme Research and Development for Innovation OP EC OP Education for Competitiveness OP RDE Operational Programme Research, Development and Education PCT Patent Cooperation Treaty (International patent system – WIPO) p.p. percentage point PISA Programme for International Student Assessment FDI Foreign Direct Investment

RIV Information Register on R&D results (information data system for research, experimental development and innovation, IS R&D) RIS SMR Regional Innovation Strategy of the South Moravian Region SF Structural Funds EU SITC Standard International Trade Classification SS Secondary Schools SW Software TA CR Technology Agency CR USPTO US Patent and Trademark Office v.v.i. public research institution R&D Research and Development R&D I Research, Development and Innovation RO Research Organisation STP Science and Technology Park U Universities KIB Knowledge Intensive Business KIS Knowledge Intensive Start Up PS Primary Schools

List of Tables Table 1: Distribution of companies with own R&D capacities in SMR, in 2011 ...... 10 Table 2: The overview of the implemented/ongoing SELECTED interventions focused on supporting research, development, and innovations in the South Moravian Region (OP R&DI centres/PO1,PO2/and OP EC are not stated on the list)...... 12 Table 3: Categorisation of the economic specialisation domain Advanced Production and Machinery Technology ...... 26 Table 4: Categorisation of the economic specialisation domain Precision instruments ...... 27 Table 5: Categorisation of the economic specialisation domain SW and HW development ...... 28 Table 6: Matrix of innovation and research needs (knowledge domains and research capacities of R&DfI centres vs application fields in SMR) ...... 30 Table 7: Matrix of innovation needs and social challenges (social challenges and research capacities of R&DfI centres vs application fields in SMR) ...... 31 Table 8: Key entities of the implementation structure of RIS SMR and its members (listed institutions in the working groups involved in the definition of RIS SMR), as of 12 May, 2014...... 53

Introduction The Regional Innovation Strategy for the South Moravian Region 2014-2020 (hereinafter, RIS SMR) is a fundamental strategic document for the South Moravian Region and the Statutory City of Brno for the implementation of their policies in order to support competitiveness, in particular, on the basis of innovations, and to maximise economic benefits of public investment into research and education. The purpose of RIS SMR is to create conditions for competitive knowledge-intensive businesses, in particular, through investment into improving the quality of education, research and the image of SMR, as well as through direct support of business activities where the market fails (e.g. supporting startup companies and supporting knowledge intensive activities in mature companies). The presented strategy is the fourth generation of RIS. The first generation was discussed in 2002, the second in 2005 and the third one in 2009. The third generation of RIS SMR was also approved as a strategic document for the Statutory City of Brno and SMR. RIS SMR is known as a sectoral strategy for the South Moravian Region which is governed by the Development Strategy with regards to the development policy of the Statutory City of Brno by the Strategy for Brno. However, these superior documents only define the basic directions for supporting economic competitiveness. RIS SMR develops these directions into specific priorities, objectives, activities and projects/programmes. The fourth generation of RIS SMR is also known as the smart specialisation strategy 1for the South Moravian Region which is the ex-ante condition of the European Commission for investments from European Structural and Investment Funds and community programmes to support research, development and innovations (Horizon 2020, COSME etc.) for the programming period 2014-2020. The RIS SMR was defined thanks to the broad-based involvement of relevant partners from the educational, research and innovative ecosystems of South Moravia. Working groups have discussed key issues, proposals how to resolve these issues, and objectives; measures and projects were defined. When defining the RIS SMR, the methodology of the European Commission2 and instructions of the MEYS, that is the guarantor of compliance with the ex-ante conditionality of the EC, were complied with. The document is divided into two parts - an analytical part and proposals. The analytical part includes basic characteristics of SMR in terms of the economic position of the region and analysis of key stakeholders in the system. A special emphasis is put on the current outputs and the RIS implementation results, and the analysis of activities of support institutions. The SWOT analysis summarises the main points made by the working groups and it represents the main input for the proposal part. The proposal part includes the mission statement, vision, and strategic and specific objectives. The strategy proposal part includes an identification of key economic domains, and strategic and specific objectives that are binding for the entire period of strategy implementation. Strategy objectives will be fulfilled through the Action Plan (a portfolio of project plans) that will be regularly updated. In order to successfully manage the RIS SMR a Steering Committee was set up, comprising representatives from Universities, the Academy of Sciences CR, key economic domains and the local government. The

1 For RIS, the English term "smart specialisation strategy" is also often used in Czech, abbreviated as S3 strategy or RIS3 strategy. 2 Guide on Research and Innovation Strategies for Smart Specialisation (RIS3 Guide).

Steering Committee of the RIS SMR will regularly discuss proposals for new projects made during the working groups meetings, and it will monitor the progress made during the implementation of the strategy.

Analytical Part

1. Position of the Region

The South Moravian Region (hereinafter "SMR") is one of the biggest regions in the CR. Its 1,168,650 inhabitants3 rank it the fourth most populated region in the CR. It represents 11.1% of the population of the CR, and its share of GDP is 10.5%. Despite this disproportion4, in the monitored period, the region had the highest GDP per inhabitant, despite the fact that the differences between the regions outside Prague are not prominent5. The efficiency and position of SMR is based, in particular, on the economic power of Brno and its broader surroundings. Brno is the second most important control and economic centre of the CR with a high concentration of activities with an added value (ICT, specialised services, research organisations, etc.). There are no other areas in the region, apart from the metropolitan area6, that would be significantly driving the national economic growth. Some fairly large parts of the region (in particular, microregions around Znojmo, Břeclav, Hodonín, and the northern parts of Blansko) can be characterised as areas that are economically lagging behind. In terms of the Czech Republic, the region can be characterised as developed, however, there are big internal differences in terms of economic efficiency and the local labour market. As a result of the control function of Brno, the South Moravian Region has the second largest share of service sector after Prague (pursuant to data for 2012, 61.2% for employment; 60.2% for gross added value (hereinafter "GAV") in the economic structure. The share of the secondary sector is slightly lower than in the whole of the CR (35.8% for employment and 37.2% for GAV). The primary sector (3.1% for employment, 2.4% for GAV) is also slightly below the CR average (3.3% or 2.4%). In terms of individual industries (NACE), the economy of the South Moravian Region is mostly driven by the processing industry and services with a high added value7. In terms of the whole CR, the share of processing employment has slightly decreased in the CR in the last ten years by 2.3 p.p, however, in SMR it only dropped by 1.0 % p.p. and, in the pre-crisis period of 2002-2007, the share of processing employment in the region increased whilst, in terms of the CR economy, it showed a drop. The processing industry is the main driving force of the regional economy, which generates major revenues outside of the region. The next main source of income outside the region is, thanks to Brno, the public sector (universities, hospitals, research institutes of national importance, etc.). The Czech economy as a whole is driven by foreign companies. In this respect, the position of SMR is quite specific. In comparison with other regions (Table 1 of the Annexe), it is evident that in 2005, SMR was one of the least successful regions in the CR in terms of cumulative influx of direct foreign investment (hereinafter "DFI"). As of 31. 12., 2005, the DFI amounted to CZK 50.6 thousand per inhabitant, which was the fourth lowest value amongst the regions and only 36.5% of the national average. The main wave of the DFI influx in

3 as of 31.12. 2012, in accordance with the Czech Statistical Office data 4 Prague dominates the GDP of the CR to such an extent that the GDP per person in all other regions is below the value of the whole CR. 5 The difference in GDP per person amongst regions, excluding Prague, is still relatively small compared to most of the OECD countries, however, they gradually increase (see Graph 1 in the Annexe). 6 The economic dynamics of Brno is strongly reflected in the whole region between Blansko, Vyškov, Slavkov, and Pohořelice. 7 The biggest increase in the share of GAV in 2002-2012 was recorded by sector J - Information and Communication activities and K - Finance and Insurance.

the Czech Republic started in 1997-20058. In the period after 2005, SMR, together with Prague, represented the main target region for the DFI in the CR (see Table 1 in the Annexe). This change explains the above stated finding that every year since 2007, the interim development of GDP in the region has been better than the development of GDP in the whole CR 9. In terms of RIS, i.e. in terms of the development of knowledge economy, the structure of the DFI has gradually changed for the benefit of activities with a higher added value, including company R&D activities, which is important. Thanks to Brno, SMR will keep on taking advantage of this trend as DFI into activities, with a higher added value, concentrates into larger economic centres, in particular, into centres where there is a wide pool of highly qualified people. In terms of international competitiveness and with regards to the local economy generating income from abroad, the main specialisations of SMR are, according to NACE classification: i. engineering industry - NACE 29, ii. electro technical - NACE 27 and eletronic - NACE 26 - industry. Nearly half of the export of SMR is from these sectors (key product groups are presented in Table 2 in the Annexe). These branches and the related metalworking industry (NACE 25) represent 20% of the private sphere of the regional economy10. It is evident that specialised companies, concentrating their skills into specific fields, are able to compete in foreign markets and generate income for the local economy. It is important that these industrial sectors are strongly interlinked (e.g. industrial automatisation, delivery of investment units, etc.). In SMR region, i.e. in Brno, we can see a dynamic development of IT; a majority of IT companies specialise in SW solutions for industry. The dynamic development of IT and its link to the traditional specialisation in engineering and electrotechnics create a beneficial environment for the development of modern technologies and knowledge intensive companies. In addition to this performance-dominant specialisation, there are other specific specialisations that have a major impact on the non- metropolitan regions. In particular, in the southern and eastern parts of the region, agriculture and food industries play an important role. The competitiveness of these industries must be evaluated within the context of the national market and the market of the surrounding countries. The region has an agricultural tradition and suitable conditions for agricultural activities, and, also, well- established companies involved in processing and producing foodstuffs. It is easy to access the nearby markets of big cities which, in accordance with the long-term trends, show a growing demand for high quality food, supported by strong purchase power (Brno, Bratislava, Vienna). South Moravian wine making is known for its first-quality products and it is of national importance; in the areas of Znojmo and Břeclav wine making is a major driving force supporting, among others, a specific type of tourism. In terms of the development of knowledge economy, university education and healthcare represent fundamental specialisations. There are over 80 thousand university students studying in Brno which creates the human resources necessary for the development of enterprise and innovation, and the development of research. Thanks to the accessibility of talent, some Czech companies from other regions consider relocating, or placing their R&D activities in Brno. Brno University of Technology represents the main partner for R&D for many companies from Moravia. There are two big university hospitals providing top quality healthcare, and the very special Masaryk Oncology Institute, together with the first quality Medical Faculty,

8 Berman Group (2010): Analysis of the material priorities and needs of the individual areas within the competence of the Ministry of Industry and Trade at which support from the EU’s structural funds should be targeted during the next programme period 2014+ 9 A higher growth during the growth of GDP, a lower drop during the decrease of GDP for the whole of the CR - see Graph 3 in the Annexe. 10 Measured by weight share of NACE classification in employment and the wages paid.

have a major capacity for creating and using new medical and related technologies. They represent a considerable source of human resources. For these reasons, and in relation to the global trends of demographic aging and a bigger emphasis on health and quality of life, these institutions represent a major development potential for the development of knowledge economy in SMR.

2. Research and Development in the Region, Innovative Business

Based on the scope of R&D capacities, SMR has the second best suitable conditions for the development of knowledge economy after Prague. Its share of total R&D expenditure (GERD), in 2012, amounted to 20.3% of the total expenditure in the CR. Its share of GDP is 10.5%. Based on the number of employees in R&D, the share is 18.8%. The regional innovation system can be, if simplified, divided into the creators of new knowledge (most often research organisations) and their users (in particular, companies but also other parties of the application sphere - e.g. hospitals). In terms of research organisations, SMR is the second most important region in the CR, following Prague. This is thanks to the concentration of university capacities in Brno. Within the CR, SMR share of R&D capacities in the "University" sector reached 27.4%, in 2012, by employees and 33.8% by R&D expenditure. The big difference in the share of expenditure and employment in R&D in the university sector is connected to the extraordinary investment of research centres supported from the OP R&DI 2007-2013. In addition to universities, there are also 8 institutes of the Academy of Sciences of the CR. SMR share of R&D capacities in the "government sector" is 12.3% by employees and 12.9% by R&D expenditure. The ranking of the region by R&D capacities is not only due to the concentration of universities and public research organisations. SMR share of R&D capacities in companies in the CR is 15.1% by R&D employees and 16.0% by R&D expenditure. In terms of RIS, the dynamic growth of the number of companies implementing their own R&D is important. Judging by this parameter, SMR is the most successful region in the CR (see Table 3 in the Annexe). The number of companies with own R&D increased in the CR by 527 companies in 2006-2011. Out of which 104 companies (19.7%) were from SMR. In total, there were 367 companies in SMR with their own R&D in 2011. It is not only the number of companies who implement the R&D but also the number of companies who implement R&D systematically and invest a critical volume of resources into the area. This documents a certain level of technological aspiration. In 2011, 99 out of 367 companies invested, into their own R&D, more than five million CZK11. Key economic sectors in SMR represented by the companies: engineering (NACE 25, 28) – 12 companies; electrical engineering (NACE 26, 27, 33) – 19 companies, ICT (NACE 61, 62, 63) – 17 companies and life sciences (NACE 01, 10, 21, 86) – 7 companies12. Another 47 companies fall into NACE 72 (research activities) and other services. A considerable part of the entities implement R&D activities whose results are used in the user areas of the key sectors stated above. In 24 out of the 99 companies, the R&D expenditure exceeds 30 million CZK, out of which in 13 companies the R&D expenditure exceeds 50 million CZK. In order to target regional innovation strategies, the sectoral structure of business R&D expenditure is important (see Graph 4 in the Annexe). Out of the total 6.2 billion CZK of business R&D expenditure, two thirds fall onto key sectors - electrical engineering, electronics, engineering and IT industry. Both domestic companies (e.g. Alta, Zetor, Tescan, etc.) and foreign companies (for example, Honeywell, FEI, ABB, etc.)

11 Non-investment expenditure. Therefore, these numbers are not burdened by single investment (which is often supported from the SF). 12 Source: Internal materials of the CSO.

have large R&D capacities in SMR. R&D activities are implemented by 10 leading international companies in Brno, and more are joining in. The industrial tradition, quality of engineers and the capacity of universities representing a source of highly qualified people, in combination with the already existing concentration of business R&D, create suitable conditions for the development of production in technologically demanding industrial fields. They also create suitable conditions for services related to technologically (knowledge) demanding industrial production. These conditions concern Brno, in particular, as demonstrated in Table 4 below. The companies implementing their own R&D were distributed within individual SMR areas (districts) as follows, in 2011: Blansko – 28 companies, Brno-City – 235 companies, Brno-surroundings – 41 companies, Břeclav – 12 companies, Hodonín – 15 companies, Vyškov – 22 companies, Znojmo – 14 companies. Despite the concentration of companies implementing their R&D in Brno (64%), the data in Table 4 shows that by supporting the creation of suitable conditions for the development of knowledge-intensive companies, this can have and has a major impact on the non-metropolitan areas of the region. It is exactly these companies, focusing on technology innovations of higher order which represent the examples of continuing complex restructuring of the economic base in the non-metropolitan regions. These companies serve as an example to others that a competitive advantage based on innovations does not have to be only built in metropolitan centres with a high concentration of talent and specialised services. In the non-metropolitan regions, these companies represent a source of inspiration for their immediate surroundings and a major source of spreading knowledge and modern management practices. They also stimulate innovation of local suppliers by their high demand.

Table 1: Distribution of companies with own R&D capacities in SMR, in 2011

Number of employees in Non-investment R&D expenditure in thousand District Number of companies R&D CZK total researchers Blansko 28 263,554 306 139 Brno - City 235 3,254,367 3,556 2,161 Brno - 41 159,679 244 78 surroundings Břeclav 12 78,076 96 54 Hodonín 15 65,413 116 40 Vyškov 22 166,274 137 67 Znojmo 14 111,308 62 19 Source: Internal database of the CSO

3. Public Administration and its Role in the Innovation System of the Region.

The policy of economic competitiveness of SMR has been implemented through the Regional Innovation Strategies of SMR. In 2002, the first generation of RIS SMR was negotiated, the second generation was negotiated in 2005, and, in 2009, the third generation of RIS was negotiated and remained valid until 2013. The third generation of RIS SMR was also approved as a strategic document for the Statutory City of Brno and SMR.

RIS SMR is known as a branch strategy for the South Moravian Region and it is governed by the Development Strategy for the South Moravian Region, and, in terms of the development policy of the statutory city of Brno, by the Strategy for Brno. However, these superior documents only state the basic directions of economic competitiveness support, in particular, within the context of other local government policies (social policy, infrastructure, healthcare, etc.). RIS SMR develops these directions into specific priorities, objectives, activities and projects/programmes. RIS SMR is in compliance with other strategic documents, such as the Regional Development Programme, the Strategy of Human Resources Development SMR, and the Concept of the Economic Development of the City of Brno (KERM). RIS SMR is not reflected in the strategic plans of major towns in SMR, although initial discussions were held in the town of Znojmo.

RIS SMR (2009–2013) was defined in 2008, on the basis of data collected as part of the extensive "Field Research of Companies in the South Moravian Region", when 185 personal interviews were conducted with companies in the key sectors in SMR and 30 interviews were conducted with researchers; 65 members of five working groups were involved. In order to direct the interventions of RIS SMR more precisely, in 2010, a "Field Research of Public Scientific and Research Offices in the South Moravian Region" was conducted and, in 2011, a "Field Research of Life Science in the South Moravian Region and adjacent regions in the CR" was conducted. A set of profile sheets, "Brno Business Navigator" and "Brno Research Navigator", were compiled for a more detailed analysis of the key stakeholders in RIS SMR and intervention clients.

On the basis of the analytical inputs stated above, RIS SMR (2009–2013) determined four horizontal priorities:  transfer of technologies,  company services,  human resources,  and internationalisation.

Four economic sectors were identified from the RIS SMR analysis (2009–2013): engineering, electrical engineering, information technology, and life science. Each horizontal priority was developed into strategic and specific objectives of the activities. In order to ensure efficient implementation, an Action Plan for 2009–2010 was defined, introducing 27 project proposals; the second Action Plan for 2011-2013 is being implemented.

Table 2 states an overview of the existing supporting schemes/tools arising out of the RIS SMR Action Plan, 2009-2013. In some cases, these are interventions that are implemented on the basis of the first or second generation of RIS (e.g. incubation programme).

Table 2: The overview of the implemented/ongoing SELECTED interventions focused on supporting research, development, and innovations in the South Moravian Region (OP R&DI centres/PO1,PO2/and OP EC are not stated on the list).

SCHEMA, support, Implementation Financial Approximate Brief evaluation (outputs, results) project name guarantor resource/guarantor allocation in the last 2 years JCMM | Support of JCMM SMR 3 million/year Scholarship for gifted secondary gifted secondary school students and bachelor school students students 30 thousand/year (8th year running) JCMM | Brno PhD JCMM Statutory City of Brno 4 million/year Scholarship for talented PhD students Talent (10 thousand per month]. 60 students supported annually. SoMoPro I. II- (South JCMM/SMR SMR 60%/FP7 40% 95 million Attracting foreign scientists and Moravian Programme 2009–2013 reintegration of scientists (SoMoPro I. for Distinguished – 27 scientists, SoMoPro II. – 25 105 million Researchers) scientists). 2012–2015 JIC | StartUp Program JIC SMR/Brno - 5 million/year Supporting the foundation of (StarCube, StartUp City/income JIC/OP EC knowledge intensive companies. 9603 Club, MIC|Minutes, persons were trained in total, there etc.) were 339 events, 668 enrolled into the StarCube programme, 153 attended StarCube, 25 new companies were founded, more than 20 million CZK was invested from BA or VC, and there were 50 active external mentors (from 2008 to 2013). Incubation programme JIC SMR/Brno City/revenue approx. 15 Supporting the development of (JIC | Innovation Park) of JIC/OP EI million/year knowledge-intensive companies. Over 160 startup companies were supported and more than 40 million was invested through BA or VC (from 2004 to 2013). Microloans (JIC/Fond) JIC SMR/Brno CIty 2 x 5 million a Supporting financing of debts of single deposit startup companies into the fund JIC | Innovation JIC Statutory City of Brno 4 million/year Supporting the initiation of vouchers collaboration between companies and research organisations - so far, 250 collaborations have been supported. For results of a detailed evaluation of the programme, see www.risSMR.cz. Department of University of University of approx 4 Provision of TT services to Transfer of Technology Technology million/year researchers and companies (for more Technologies Brno information see Chapter 4) University of Technology

Centre of technology MU OP EI/MU OP R&DfI Approx. 15 Provision of TT services to transfer MU million/year researchers and companies (for more information, see Chapter 4) Centre for technology MENDELU OP R&DfI 10 million/year Provision of TT services to transfer MENDELU researchers and companies (for more information, see Chapter 4) REGON – grant office JIC SMR 0.1 million/year Regular monthly meetings of grant network office staff in order to exchange

strategic information concerning international grants. JIC | JIC SMR 3 million/year Supporting inclusion of companies Internationalisation. and research organisations into foreign research projects. Brno Expat Centre Brnopolis SMB 0.5 million/year Provision of expat services in order to strengthen their integration in SMR. HUB Brno Because OP EI Preparatory phase

Construction of IT VUT University of Phare/Park Ministry of 50 million 1200 m2 office space incubator Technology Industry and Trade/VUT

Construction of TI II SMR OP EI/SMR 100 million 3000 m2 office space incubator

Construction of INBIT SMR OP EI/SMR 160 million 3000 m2 office space and laboratories incubator

Construction of INMEC SMR OP EI/SMR 400 million 6000 m2 office space and laboratories incubator – in construction Established VIDA! SMR/Moravian OP R&DI (SMR not 596 million In construction, expected opening Science Centrum Science Centre ineligible costs) December, 2014 Brno, p.o. Competence Centre Engineering OP EI/SMR 72 million Provision of research and measuring Kuřim - machine companies/JIC/SMR (initial services to engineering companies tools/Intemac investment) with regards to machine tools. Launch Solutions, s.r.o. November, 2013, a pilot operation is Operating taking place at the moment budget 2014 – 5.3 M International International School N.A. The school is accredited to award Secondary School of Brno IGCSE qualifications and A-levels at (certified curriculum) secondary level. Creative centre JIC SMB 4 million Completed feasibility study (incubator for creative industry) Business incubator - City of Znojmo 0.5 million/year Pilot operation Znojmo

Source: own analysis

4. Main stakeholders of the innovation system - results of the stakeholder analysis

Knowledge intensive companies relevant for SMR innovation system. The SMR regional innovation strategies, 2009–2013, and the existing analysis made in order to state RIS, 2014 – 2020, defined the following priority economic sectors for SMR: engineering (NACE 25, 28); electrical engineering (NACE 26, 27, 33), ICT (NACE 61, 62, 63), and life sciences (NACE 01, 10, 21, 86). In view of the difficulty using NACE classification to formulate RIS, product groups with typical representatives of the corporate sector showing high knowledge intensity are listed below13. The summary of the companies stated below is for illustration purposes only.

The most significant product groups within engineering (NACE 25,28) in SMR are as follows:

i. investment units (Královopolská RIA, Unis, Ekol, Alta, ABB); ii. specialised machines for production and transport etc. (Zetor, Minerva, OTIS, BMT, LAC, RoMill, T- Machinery); iii. forming and machine tools (TOS Kuřim, Šmeral, Walter, ČKD Blansko, MetalPres, Gemax, Aroja); iv. metal constructions (Jihomoravská armaturka, ZKL, Královopolská, Fritzmeier, Signum, AG Watteew); v. castings and forgings (Kovolit, Metaldyne Oslavany, Železárny Veselí, Šroubárna Kyjov, Ferex, Feramo, DSB-Euro, Slévárna Kuřim).

The most significant product groups within electrical engineering (NACE 26, 27, 33) in SMR are as follows:

i. precision, measuring and scientific instruments (FEI, Tescan, VF, Metra, Delong Instruments, PSI, Mesing); ii. electric switches and distributors (ABB, JM monzáže, ESB rozvaděče); iii. electromechanical units large/small (Siemens, Daikin, Alstom, Startech, DI Industrial); iv. electric engines rotory/stationary (Siemens, Kollmorgen, ABB, EMP, Franklin electric, EM Brno, VUES, JULI Motorenwerk); v. cables, harnesses, connectors, sources (Tyco, Egston, Griller Kabeltechnik, Maehler, RME – spoj).

Information and communication technology (NACE 61, 62, 63) can be classified in SMR in terms of the following product groups:

i. software for special purposes/security software (AVG, Safetica, InveaTech, TNS/Moravia IT, Zoner, Lingea); ii. software for business applications /ERP (Y Soft, Cígler Software, Kentico, Vema, NetSuite, AIS Software); iii. IT tools (Anect, Aura, SolarWinds, ANeT, IBA CZ, Navisys, Allium); iv. outsourced IT services (IBM, Lufthansa, Natek, RWE IT, DSG International, SkyNet).

13 For the purpose of RIS SMR, a knowledge-intensive company is defined as follows: i) a company owning its own technology/expert knowledge which significantly contributes to the turnover of the company (binary criterion); ii) a company with its own R&D expenditure of at least 10 million CZK (for companies with up to 49 employees, 5 million CZK is sufficient); iii) a company with at least 10 employees; iv) a company which is more than 3 years old.

The sector of life sciences (NACE 01, 10, 21, 86) is the most heterogonous sector and for the purposes of RIS SMR we distinguish two product groups:

i. diagnostic kits (Biovendor, Testline, Erba-Lachema, Elisabeth Pharmacon, GeneProof, Ybux); ii. medical care (Brno Faculty Hospital, St Anne Faculty Hospital, Masaryk Oncological Institute).

The above stated sectors and their product groups are considered driving fields, in terms of RIS, that have a potential to fulfil the RIS SMR mission for 2014-2020 (see below).

Public universities and research organisation that are directly relevant for the innovation system. There are five public universities in the South Moravian Region (Masaryk University, Brno University of Technology, Mendel University in Brno, Veterinary and Pharmaceutical University in Brno, Janáček Academy of Performing Arts) and one state university (University of Defence). In terms of relevance for RIS, their specialisation is reflected by the activities of the OP R&DfI centres, as mentioned above. Public research organisations are primarily represented by the institutes of the Academy of Sciences of the Czech Republic; nine institutes have their registered seats in SMR and fifteen more institutes are branches of, mostly, Prague institutes of the Academy of Sciences of the Czech Republic. The most important institutes of the Academy of Sciences of the Czech Republic are the Institute of Biophysics, Institute of Scientific Instruments, Institute of Physics of Materials, Institute of Analytical Chemistry, Institute of Vertebrate Biology and the Centre of Global Changes Research (CzechGlobe). These institutes mostly focus on basic research and, at the same time, one can find many cases when research results lead to direct application in the application sphere (e.g. results of the Institute of Scientific Technology in the field of electron microscopy) Apart from the institutes of the Academy of Sciences of the CR, other public research organisations set up by ministries reside in SMR. Veterinary Research Institute (Ministry of Agriculture) and the Centre of Transport Research (Ministry of Transport) are some of the most important ones. These institues usually implement both basic and applied research, both for the public and private sector needs. Research centres, financed from the Operational Programme Research and Development for Innovation, represent a specific group of research "entities". Considering the volume of the investment (approximately 16 billion CZK) and the robust selection mechanism, the "OP R&DfI centres" can be regarded as an imaginary backbone of the South Moravian research that will play a primary, but not the only, role in the development of the research (and innovation) system of SMR. There are four Centres of Excellence in the South Moravian region, namely: i. CEITEC (advanced nanotechnology and microtechnology, advanced materials, structural genomics and proteomics of plant systems, molecular medicine, brain and human mind research, molecular veterinary medicine); ii. CzechGlobe (climatic analysis and modelling, ecosystem analysis, experimental studies of the impacts of global climate changes on the physiology and metabolism of plants, innovation for mitigating impacts of global climate changes); iii. FNUSA-ICRC (development of new strategies for timely diagnostics and advanced treatment of cardiovascular diseases/CARDIO programme/, development of new methods for timely detection and advanced treatment of neurological diseases/NEURO diseases/NEURO programme/, shared multidisciplinary platform for experimental medicine and biotechnologiy/research platform/);

Brno branch of IT4Innovations (detection and presentation of information from multimedia data, safe and reliable architecture, networks and protocols). In addition to the Centres of Excellence, there are eleven Regional Research Centres focused on application, namely i. AdMaS (development of advanced building materials, development of advanced constructions and technologies); ii. AdmireVet (veterinary epidemiology and diagnostics, vaccines and prevention); iii. ALISI (applied diagnostics methods, advanced technology); iv. CMV Brno University of Technology (inorganic materials, transport systems and sensors); v. CEPLANT (plasma sources and in-line plasma treatment); vi. CVVOZE (optimalisation and management of electromechanical energy conversion, chemical and photovoltaic sources of energy, optimizing the conversion and use of energy in systems with ecological energy sources); vii. CETOCOEN (tools for monitoring the distribution of chemical substances in the environment, processes influencing the fate of chemical substances in the environment, development of biosensors and biocatalysators, toxic effects of chemical substances and natural toxins on living organisms, environmental risks, models and information systems); viii. Transport R&D centre (deep analysis of transport accidents, human synergy in transport, road safety, transport infrastructure, transport and the environment); ix. NETME Centre (energetics, processes and ecology, air and automobile technology, mechatronics, virtual design and testing, progressive materials); x. RECAMO (oncology research); xi. SIX Research Centre (microwave technology, wireless technology, converged systems, multimedia systems, sensoric systems). Centres of Competence financed through the Technology Agency of the Czech Republic represent the second key group of research projects that have a systematic nature. There are three centres with a recipient (coordinator) that has a registered seat in the South Moravian Region, and twenty more partners who participate in the Centres of Competence with beneficiaries from other regions. For the sake of brevity, only the centres with beneficiaries from SMR that guarantee a leading position in the respective area in the CR, are mentioned below. The centres are as follows: i. Electron microscopy (FEI Czech Republic s.r.o.14, CRYTUR, spol. s r. o., DELONG INSTRUMENTS a.s., Výzkumný a zkušební ústav Plzeň s.r.o. - Research and Testing Institute Pilsen, Biologické centrum AV ČR, v. v. i. - Biology Centre of the Academy of Sciences CR, Ústav makromolekulární chemie AV ČR, v. v. i. - Institute of Macromolecular Chemistry ASCR, Ústav přístrojové techniky AV ČR, v. v. i. - Institute of Scientific Instruments , Ústav molekulární genetiky AV ČR, v. v. i. - Institute of Molecular Genetics of the Academy of Sciences); ii. Platform for advanced microscopic and spectroscopic technology for nano and microtechnology (Brno University of Technology/Faculty of Mechanical Engineering, TESCAN Brno, s.r.o., ON

14 Underlined company names and company names in bold letters designate beneficiaries (consortium coordinators), other company names in bold (collaborating companies/research organisations) designate registered seats of the respective company in SMR.

SEMICONDUCTOR CZECH REPUBLIC, s.r.o., OPTAGLIO s.r.o., Ústav přístrojové techniky AV ČR, v. v. i. . Institute of Scientific Instruments, TESCAN, a.s.); iii. Centre of Competence processing visual information (Brno University of Technology/Faculty of Information Technologies, UNIS, a.s., Eyedea Recognition s.r.o., Universal Production Partners, a.s., CAMEA, spol. s r.o., Czech Technical University in Prague/Faculty of Electrical Engineering). In terms of the regional distribution of research organisations, most of them are located in the City of Brno. Taking advantage of the regional concentration of knowledge also for the application sphere outside the centre of the region represents a major challenge for RIS 2014–2020. The so-far attempts to support the process are only at their beginning. To name but a few attempts: Innovation Voucher programme (from 2009- 2013, 27 vouchers were awarded in SMR outside Brno-City), implementation of a pilot JIC/Platinn project in four companies outside Brno-City (analysis of opportunities/growth barriers and providing a coach to deal with problematic issues in a company) and establishing an Enterprise Incubator in Znojmo.

Support infrastructure for research and innovation The support infrastructure for research and innovation in the South Moravian Region can be classified in several categories. One of the categories is the form of ownership (public vs private) and a focus on the target group (businessmen, researchers, students or wider public). Considering the relatively long-term and continuous political support of research and innovation policies in SMR, the public support infrastructure is relatively developed. The research and innovation support in SMR is implemented through the following public institutions15: - CzechInvest – regional office provides information and services for the Operational Programme for Enterprise and Innovation and other national programmes supporting businesses. Furthermore, CzechInvest assists new foreign investors coming into the region.

- Hvězdárna Brno, p.o. (Brno Observatory and Planetarium) of the Statutory City of Brno, operates the planetarium with the aim to popularize scientific results and motivate children and teenagers to study natural sciences and technical subjects.

- Intemac Solutions, spol. s r.o., is a shared, research and development platform focusing on dealing with company problems in the field of machine tools. The company provides services in the field of testing and measuring, machining technology, machine construction (identification of weak points of the existing machines, proposing optimal solutions, new concepts). Intemac Solutions, spol. s r.o. is a subsidiary company of JIC, an interest association of legal entities.

- JIC, interest association of legal entities, focusing on the support of knowledge-intensive companies (StartUp Programme), on supporting the development of new knowledge-intensive companies (Innovation Park programme) and on supporting the development of mature companies with growth potential (technology support programme and JIC/Platinn programme). Since 2009 JIC has been entrusted with the coordination of preparation and implementation of the Regional Innovation Strategy SMR. JIC is managed by SMR, Statutory City of Brno, Masaryk University, Brno University of Technology, Mendel University in Brno and the Veterinary and Pharmaceutical University in Brno.

15 Institutions are listed alphabetically, not in terms of the significance of their impact on creating an innovation system.

- Jihomoravské centrum pro mezinárodní mobilitu, z.s.p.o., (JCMM - South Moravian Centre for International Mobility) focuses on supporting gifted students and human resources for research. JCMM implements the following activities: supporting an influx of experienced scientists into the region (SoMoPro programmes I., II., EURAXESS project); supporting new scientists (Brno PhD Talent programme); supporting an influx of foreign students and young scientists into the region (Internationalisation programme); supporting gifted students at secondary schools and Universities in SMR (Secondary Specialised Activities Support, Gifted Students Support and other activities to popularize science). JCMM is managed by SMR, Statutory City of Brno, Masaryk University, Brno University of Technology, Mendel University in Brno and the Veterinary and Pharmaceutical University in Brno.

- Moravian Science Centre Brno, p.o. of the South Moravian Region will be operating the local science centre with the aim to popularize, promote and publicize scientific results in order to motivate children and teenagers to study natural and technical subjects. The annual budget of the center is approximately 50 million CZK. - Regionální rozvojová agentura jižní Moravy, z.s.p.o., (RRA JM- Regional Development Agency South Moravia ) is mainly dealing with the preparation of projects for EU Structural Funds, supporting investment in the region and selected information services for the municipal sphere, with the administration of Small Project Funds in South Moravia/Lower Austria as part of European Territorial Cooperation, and development of environment for innovation and support of brownfield regeneration. The role of the RRA JM is key for the implementation of RIS, in particular because it extends beyond the municipal and regional government. RRA JM is established by SMR, the Regional Chamber of Commerce for South Moravia, and the Association of Municipalities in South Moravia.

- Centres for Transfer of Technologies (CTT) operating at public universities in SMR represent a specific "innovation infrastructure". CTT are established by Masaryk University ( established in 2005), Brno University of Technology (established in 1997) and Mendel University in Brno (established in 2012). All three centres implement similar activities, namely: administration of intellectual property of the university; identification of intellectual property of the university; protection and commercial use of intellectual ownership through licences and foundation of companies; provision of material samples; mediating contractual research for the application sphere, mediating the use of laboratory capacities for the application sphere, mediating professional consultation for the application sphere, etc. The quality and scope of the services provided differs among the CTTs, depending on the term and scope of funding of the centres. In addition to the public institutions in SMR mentioned above, there are also the following institutions: - Regional Chamber of Commerce of South Moravia (RCHC SM) is an interest association of Chambers of Commerce from individual districts in the South Moravian Region and it is the main entity of the business autonomy in the region. The RCHC SM provides comprehensive advisory services (customs, export, legal, subsidies etc.), and cultivates and develops human resources in order to increase innovativeness and competitiveness. Foreign enterprise missions are organised to support internationalisation of companies. Last, but not least, many contact events are organised for entrepreneurs to improve their networking, to share experience and serve as examples of good practice. The RCHC SM founded two subsidiary companies in order to build and operate scientific and technology parks, VTP Brno, a.s., and BioPark Brno, a.s.. It is expected that space will be

provided for scientific and development activities of innovative companies, in addition to the provision of the service required and consultancy to support and develop innovations.

- Brnopolis, o.s., implements the Brno Expat Centre Project in order to enable integration of highly qualified foreigners in Brno. Private law institutions implement support activities that are partly subsidised by the local government or through grants from national/European funds. Risk capital and business angels funds represent key innovation "infrastructures". There are several risk capital funds in SMR, such as Brno Y Soft Venture Fund, Prague Credo Ventures, business angels association 42Angels and others that cannot be stated publicly. More than 50 million crowns was invested into startup companies in SMR.16 All support infrastructure institutes are located in Brno, apart from Intemac Solution, spol. s r.o., (Kuřim). Public agencies such as JIC, JCMM, RCHC SM, MSCB operate within the entire region. The regional focus of their activities is also significantly influenced by the geographical location of their clients.

Public administration and its research and innovation support activities Over a long period of time, the following two autonomous institutions have been most active in the South Moravian Region: South Moravian Region and the Statutory City of Brno. In 2013, Znojmo started working towards supporting (innovative) enterprise. The South Moravian Region has been supporting research and innovation since 2003 when the first generation of RIS has been discussed. SMR have been continuously supporting the activities of organisations established by the region (or in cooperation with the region), such as JIC (30 million CZK/year), the South Moravia Centre for International Mobility (10 million CZK/year), the Regional Development Agency of South Moravia (12 million CZK/year)17 and the Moravian Science Centre Brno (14 million CZK/year). SMR is the bearer of SoMoPro (I., II.) programme which aims to finance an influx of foreign scientists and a return of Czech scientists into SMR. The volume of the programme is 95 million CZK I. (2009–2013), and 105 million CZK for SoMoPro II. (2012–2015). Since 2005, SMR has invested five million into the Microloan Fund through JIC (JIC|Fund) which was used to finance new innovative companies. SMR has invested into the support of innovation infrastructure: construction of Technology Incubator II (120 million CZK); construction of INBIT biotechnology incubator and acquisition of research equipment (160 million CZK); construction of a scientific and technology park INMEC (394 million CZK); construction of the Competence Centre for Machine Tools Kuřim and acquisition of research equipment (72 million CZK); construction of the Moravian Science Centre Brno and acquisition of an exhibition (596 million CZK). The Statutory City of Brno has been supporting research and innovation since 2003 when it co-founded JIC. The Statutory City of Brno (SCB) has been supporting activities of JIC since 2003 in the amount of two or three million CZK/year. Since 2005, the SCB has invested five million into the Microloan Fund through JIC (JIC|Fund) which was used to finance new innovation companies. The SCB made the support of investment

16 Data for investment from VC and BA was provided by JIC, z.s.p.o., the data was collated from its clients. 17 SMR grants towards the activities of the RCHC SM cover a wide spectrum of activities, not only research and development.

and innovations more intensive after negotiating the third generation of RIS SMR in 2009. The SCB finances the Innovation Voucher Programme, having provided 8 million (until 2011), i.e. four million CZK/year, and Brno PhD Talent, having provided 8 million (until 2011), i.e. four million CZK/year. The SCB supports the activities of Brno Expat Centre by 1.5 million CZK/year and from 2015 it will be contributing up to 14 million CZK/year towards the activities of the Moravian Science Centre Brno. Furthermore, SCB prepared a feasibility study for a Creative Centre project through JIC (incubator for creative industries) within the premises of a former Penitentiary Centre, investing four million crowns. Last, but not least, it should be mentioned that SCB makes significant investments into "hard" infrastructure" in the surroundings of the constructed research OP R&DI centres, investing hundreds of millions of CZK. In 2013, the town of Znojmo set up a business incubator in order to support new business projects of Znojmo citizens. More demanding consulting services will be provided in cooperation with JIC.

5. SWOT Analysis

Strengths and weaknesses Strengths Weaknesses Position of the region There is a consensus among the institutions There is a strong internal polarity between the about the mission and vision of the region; the dynamic city (including wider surroundings) and entrepreneurial culture and management of the the peripheral parts of the region. region is highly developed.

Brno is attractive for direct foreign investments focusing on activities with a higher added value. Innovative enterprise The South Moravian Region (in particular, the Low ambition and response of owners of small city of Brno) is quite unique within the CR thanks and medium size enterprises that have their to the new knowledge-intensive companies that growth potential based on innovations. Weak are being funded in the city. (New knowledge- advance strategic management. intensive companies represent a major potential for the growth of local mature companies through acquisitions. For starting companies the presence of top technology companies represents an opportunity for fast growth, taking advantage of the functional processes set up by the mature companies.)

There is a critical number of companies that As a result of a low proportion of job positions in have been achieving first class quality in the management and strategic functions of large selected industrial sectors (precision companies (there are no company instruments, power engineering, industrial headquarters), business competences are not engineering - investment units) for a long period developed among the economically active of time. There is a critical number of highly population. qualified people with a technical background. Companies can choose when staffing key positions in R&D, construction, etc. "Labour market pooling" - distribution and development of knowledge through mobility of experts between companies, fields and sectors).

The ability to achieve first class quality (technology level) in the newly established non- industrial fields (IT security - AVG, InveaTeach).

There are manufacturing plants of foreign companies (including technology leaders - Honeywell, ABB, Siemens) present and they represent a potential for the development of activities with a higher added value (including research and development).

Research and development There is a good knowledge base of technical The growing administrative burden and

(functional) competencies essential for research insufficiently operating support processes and development at universities/research restrict the efficiency of research staff at organisations and companies. universities and research organisations.

Thanks to the massive investment from The ambition and management of development structural funds, Brno will have had world-class strategies of Brno universities and research research infrastructure by 2015 (instruments, organisations do not really correspond to the laboratories and related equipment). challenges and trends of the 21st century. (weak There are several research teams able to interdisciplinarity, regional character, the third generate unique, world-class results (e.g. role is not reflected into priorities and identifying speech, molecular processes in cells, management, inefficient management/project stem cell research etc.). management, responsiveness....) The stated topics are formally included in the strategies but their real improvement is slow.

Concentration of a wide spectrum of research Frequent absence of management and strategic fields = unused potential for the development of competencies and non-efficient management multidisciplinary research (e.g. research agenda structure. for solutions requiring cooperation across the Research teams often set themselves research established sectors). tasks that are not ambitious enough, restricted relevance of research topics, absence of research strategies The existence of international "alumni" in the Insufficient readiness of universities and research area can be used as a potential to research organisations to cooperate with the strengthen internationalisation. application sphere, continuing mutual distrust. (Low readiness in terms of processes and human resources). Human resources for innovation and R&D Good quality secondary schools (Řečkovice The functional competencies (professional Grammar School, Cpt Jaroš Grammar School and knowledge and skills) and "soft" competencies others); the students of these schools are (soft skills) of graduates are not in compliance repeatedly winning nationwide students with the requirements of the employers, and competitions. this non-compliance restricts young people in their ability to compete on the (international) job market. The existing content and quality of education in many fields leads to wasting of talent and public funds.

Scope of university capacities in Brno. Thanks to Education must not only respond to the existing the fact that Brno is an inter-regional centre of situation but proactively prepare students for university education, there is a concentration of future demand. There is no strategic and talent and university qualified people in the prognostic information about the labour market. region (however, the concentration is in Brno There is no system where companies could and surroundings, only). Brno, as a university define their future needs. (There is no clear city, produces tens of thousands of graduates definition of demand and its quantification). The who represent an interesting employment entire problem is complicated by the potential. unambiguously used concepts (for example, does it mean when we speak about "fulfilling the needs of the labour market", "how to measure it", etc.)

The subject structure of university education Underinvestment in the infrastructure of enables to create unique interdisciplinary primary and secondary schools. No modern IT subjects. infrastructure (e.g. each teacher has his/her own computer), there is often a shortage of modern teaching aids - be it books or the equipment of school laboratories, obsolete school buildings mean higher operating costs (e.g. energy).

Some of the fields of study on offer in Brno are Insufficient infrastructure for employees of so good that many students from the whole of international companies. the CR/SR apply to study in Brno and choose Brno universities as their first choice university (informatics, law, some of the VUT FSI fields, FEKT, some fields of medicine, sociology...).

Opportunities and threats Opportunities Threats Political/legislative influences Opportunities for a more daring, more targeted Business legislation. Constant changes and and continuous policy in the area of education, instability resulting out of the unpredictability of research and innovation, lowering dependency the environment. With the expected political of leading officials on politicians. If the Public changes at the national level (2014) we can Service Act is passed, the high influence of expect further adjustments in tax and other politicians on appointing managers in public legislation. administration will be restricted, and it can be expected that the quality of teams and the performance of public administration will gradually increase. The existing regulation framework for research and innovation is getting worse and it is unsatisfactory - fragmented access/departmentalism, fragmentation of resources instead of concentrating on long-term support. Economic/financial impacts Using freely available global know how for the Growing pressure to increase taxes as a result of growth of SMR companies Intellectual the inefficient (non-effective) public ownership (protection and handling). A major administration. Current perception of public part of the global know-how is freely available administration being an unreliable/incompetent and unused. Growing demand to protect own partner. know-how and use available know-how. Organising a value chain (sector specific). A growing risk of restricting free trade (in Growing importance of customisation, just-in- particular non-tariff conditions). time logistics and the vicinity of development It can be expected that, in combination with a and production. It is likely that more growing shortage of political leaders at the EU development (parts of) will be reallocated near level, political and consequently economic large production units. nationalism will grow. A new SF programming period 2014-2020 A shortage of public funds for essential represents a major opportunity for research, investment to ensure high quality education will development and education - providing that the be even more prominent. Concurrently, the

corresponding project selection criteria will tension between quality and an equal access to improve/will be introduced, the efficiency education will intensify which will lead to the (eliminating excessive administration) will necessity to find new solutions to ensure access increase and relevant checks of allocated funds to high quality education for low income people. will be made. Social/demographic impact Rise of new business opportunities (product and Less talent (decreasing the number of university service area) as a result of aging population and students, current minimum secondary a dynamic growth of the number of pensioners. education, temporary growth of primary education) as a result of the dynamics of the population curve. The number of people with ambitions to start The tension between quality and an equal access their own business is growing thanks to the to education will intensify, which will lead to the media, examples of successful entrepreneurs, necessity to find new solutions to ensure access better standard of living, and the conditions to high quality education for low income people. created. As a result of migration, SMR will become more cosmopolitan if necessary conditions are created. The aging population represents an opportunity to use the potential of "active pensioners" who are able to become involve and help foreigners coming to SMR, in particular, young researchers and their families with no social links ("adoptive grandparents").

6. Methodology for creating RIS SMR

RIS SMR started to be defined in November, 2012 when thirty key stakeholders of the South Moravian innovation ecosystem met (representatives of strong technology companies, representatives of research centres, representatives of local government and intermediary organisations). The output of this meeting was a strategic framework for RIS SMR, i.e. its mission, vision, key areas of changes and governing principles. This meeting was followed by a meeting of working groups18. Working groups were created for each area of change (apart from the "Pro-Innovation Administrative"), the working groups met three times in total when formulating the RIS. A SWOT analysis was defined at the first meeting of the working group, objectives including metrics were proposed at the second meeting and project plans were defined at the third meeting. For all working groups, background documents were prepared reflecting the analytical outputs stated in the analytical part of this document. Document drafts were presented at various seminars and forums (Peer Review of RIS SMR by the European Commission, the Council for Economic and Social Cohesion of SMR, the Committee for Regional Development of SMR, the Regional Innovation Forum of the CR, Industrial Technologies 2014 conference, etc.). Comments made by the parties attending the meetings were incorporated into the document.

18 Composition of working groups is stated in the chapter entitled RIS SMR Implementation Structure.

During the process of formulating the RIS SMR the methodology of the European Commission (see S3 Guide)19was followed together with the instructions of MEYS that guarantees compliance with the ex-ante conditionality to the European Commission. RIS SMR was prepared by a team of authors led by the manager of RIS SMR/S3. The manager of RIS/S3 was appointed on the basis of a tender organised by MEYS in collaboration with the Regional Office of SMR in April, 2013. The costs connected to the preparation of RIS SMR was partly paid by the MEYS and partly by JIC, z.s.p.o.; the South Moravian Region and the Statutory City of Brno paid the cost.

7. Specialisation of the Region - Key Economic Domains

A knowledge domain for targeting sector specific tools with regards to the strategy of smart specialisation is: an area of interlinked expertise which, based on the knowledge of opportunities on a specific market, help to create new solutions (innovations) with added values for customers on the market. Based on the analysis of the business and research sectors in SMR, the following knowledge domains were identified which can demonstrate that they are globally competitive, and which show a strong potential for company and employment growth. A: Advanced manufacturing and engineering technologies - engineering and electrical engineering industries represent dominant sectors in the SM region in terms of employment. Internally, both sectors are strongly diversified. They are also linked through strong supplier-customer links. The below stated specialisation domains were identified through the analysis of export performance, growth dynamics of the companies and company research and development capacities. Their joint characteristic is their focus on manufacturing technology and investment units, or their fundamental parts, highly demanding in terms of precision and use of advanced engineering and related technology. A1: Power engineering and equipment for the distribution of electricity - SMR has a strong industrial tradition in the field of industrial furnaces, turbines, electric motors, distributors, fuses and other products used in power engineering. Global technology leaders Siemens and ABB have major production capacities in the region and they develop capacities for research and development. VUT has a long tradition of research and the university prepares many engineers for this field. A2: Engineering production technology - the Czech Republic is the 13th largest manufacturer of machine tools in the world. There is a concentration of successful exporters and suppliers in the South Moravian Region. Importantly, there is a strong entrepreneurial ambition to develop this sector in SMR that has been substantiated by this sector’s succeesses at international markets. It is a field in which the region has internationally acclaimed finalists in a value chain for which a global growth is predicted. The finalists´ success in this sector will generate a strong demand for local suppliers across the key sectors (see above) which will support innovation within the sectors and their interphases. A3: Investment units - in accordance with the focus of the A domain, these are engineering production units (such as engineering production lines, refineries, cement plants, etc.) for various industrial fields. The finalists of the value chain, showing high knowledge intensity and a strong multiplication effect on the local economy, are successful in this sector in the region. The companies

19 S3 Guide is available at http://s3platform.jrc.ec.europa.eu

can rely on the reputation the CR still enjoys on the markets in Eastern Europe and Asia that show a high growth potential and also the need to renew obsolete and old units, often supplied by former Czechoslovakia. A4: Special manufacturing machines - in SMR there are many companies of various sizes dealing with the development and production of special manufacturing machines (such as T Machinery, Minerva Boskovice, BrnoPack, etc.), or machines used for the preparation of manufacturing devices, materials or processing waste from production processes (e.g. Zetor, manufacturers of waste water treatment equipment, etc.). Similarly to the above, the economic success of the finalists has a significant driving effect on many local suppliers and stimulates qualitative development of the entire supplier base for precision machinery and related fields.

Table 3: Categorisation of the economic specialisation domain Advanced Production and Machinery Technology

Number of Number of companies Domain companies with R&D Companies with significant R&D capacities economic specialisation with turnover expenditure 5+ 100+ mil CZK mil CZK A: Advanced 76 53 manufacturing and machinery technology A1: Power engineering 18 12 ABB; Siemens Industrial Turbomachinery; Siemens and equipment for Electric Machines; Alstom; Thermona; ČKD distribution of electricity Blansko Engineering; EMP; Boss Engineering; VUES Brno; Kollmorgen; Juli Motorenwerk; Atoma – thermal engineering A2: Manufacturing 10 6 TOS Kuřim – OS; Šmeral Brno; Bosch Rexroth; engineering technology Fermat; Mood International; Bomar; Elektro Sochor A3: Investment units 16 11 Alta; CB&I; Královopolská RIA; Unis; Tenza; Ekol; První brněnská strojírna; BCS Engineering; SVS FEM; Energostav; Sobriety; Oprox; Uchytil; Institute of Applied Mechanics A4: Special production 17 22 Zetor Tractors; T Machinery; Minerva Boskovice; machinery Asio; Best Business; Eurom; Envites; MSR Engines; HVM – plasma; IN – EKO Team; GF Machinery; Blata; Hydraulic machinery and equipment; BrnoPack; Anita B; Morsa; Kornfeil; Aveko; ČAS – service Source: Internal database of the CSO

B: Precision instruments – the concentration of expertise in the field of machinery and electric engineering, in combination with a dynamic development of IT expertise, represents a suitable environment for the development of companies in the area of instrumentation technology. The global importance of Brno as a manufacturing centre of electron microscopes can serve as a proof. The potential of SMR in this area is used by leading technology companies, Honeywell develops one of its global development centres here. The growth potential of the specialisation domain is based on the number of small companies, their growth dynamics and technical innovation. The development of technical innovations is supported by the presence

of fairly extensive research and educational capacities in the related areas led by Institute of Scientific Instruments AS CR. B1: Scientific instruments - by the volume of export, Brno represents a world centre of electron microscopy. The production of local companies covers 20% of the world market with these sophisticated tools and the variety of the technology involved, from IT to specialist materials (FEI, Tescan, Delong Instruments). SMR has a suitable research background for this area which can generate new knowledge but which can also be used as an ideal "laboratory" for demanding customers thanks to the developed research in the area of biological sciences. B2: Precision measuring instruments and sensors - besides engineering, this is a sector with the biggest concentration of SMEs with own R&D capacities. Global technology leader Honeywell chose Brno as a location of its global development centre focused on, apart from others, instrumentation for aircrafts and industrial sensors. The development of engineering and its combination with instruments and measurement technology contributes to the development of the entire sector. The specialisations listed above under letter A create a very beneficial environment for technical innovations driven by demand.

Table 4: Categorisation of the economic specialisation domain Precision instruments

Number of Number of companies Domain companies with R&D Companies with significant R&D capacities economic specialisation with turnover expenditure 5+ 100+ mil CZK mil CZK B: Precision instruments 24 32 B1: Scientific instruments 5 5 FEI; Tescan; PSI; BMT Medical Technology; Delong Instruments B2: Precision 9 15 Honeywell; Tyco Fire & Integrated Solutions; measurement tools and Bosch Rexroth; Flextronics; Beta Control; ESL; sensors Amtek; VF; Mesing; Meatest; Prototypa-ZM; MEgA; Elis Plzeň; BVT Technologies; ZL - service Source: Internal database of the CSO

C: Software and hardware development - 70% of companies dealing with SW development in the CR reside in Prague and Brno. This is thanks to the fact that they are near their key customers (companies headquarters with the need for customized business SW) and proximity of research and educational capacities. In addition to companies focusing on the development of business SW, that are concentrated in all big cities in Central Europe, Brno is also a centre of companies and know-how in the area of IT security. Computer games represent another unique specialisation. Last, but not least, the quality of the environment for the development of SW is demonstrated by the dynamic development of the Red Hat development centre (operating system Linux and SW based on this system).

C1: IT security and cognitronics20 - AVG, ESET and AVAST serving 40 % of the global antivirus market with strong links to the research environment in Brno. AVG has a main R&D function in Brno. In the last decade, many technology companies were established in this field, some of them deal with the development of technology which can lead to innovations and which are new for the entire market (e.g. InveaTech, Safetica in SMR). There are world-class scientific centres in Brno, working for highly demanding global customers who require the latest knowledge (e.g. NATO). C2: SW development, in particular, for businesses - dozens of companies dealing with the development of business SW reside in Brno. These are IT integrators developing tailor made SW solutions for companies, and also firms developing packaged SW. International environment and the presence of development centres of global technology leaders such as Red Hat and NetSuite strongly contribute to the development of the entire sector.

Table 5: Categorisation of the economic specialisation domain SW and HW development

Number of Number of companies Domain companies with R&D Companies with significant R&D capacities economic specialisation with turnover expenditure 5+ 100+ mil CZK mil CZK C: SW and HW 21 43 development C1: IT safety and AVG; Honeywell; Camea; Zoner Software; Trust- 5 9 cognitronics Port; AEC; Safetica Technologies; GiTy; Phonexia Red Hat; NetSuite; Y-Soft; Home Credit C2: SW development (in International; IBA CZ; USU Software; Cígler particular company 16 19 Software; AutoCont CZ; Vema; Navertica; software and games) Cleverlance Enterprise Solution; TurboConsult; DC Concept Source: Internal database of the CSO

D: Pharmaceutics, medical care and diagnostics - compared to the previous domains, this is not such a strong business sector in SMR. This domain has been included for the following reasons:

 Medical technology and medical care are in the centre of the expected global technology revolution comparable to industrial revolutions in the past.  The concentration of high quality research in biology and medical sciences and the presence of quality hospitals (University Faculty Hospital and Masaryk Oncology Institute) represent potential for the region to become actively involved in the expected global changes in this area.  The expected changes in the area of medical technology and medical care influences many other sectors. Instruments and SW (see above) are fields which significantly contribute to the transformation of medical care around the world.

20 The term cognitronics is gradually more and more used for technology focusing on speech processing, detection and analysis of images.

 In summary, it is very likely that the development of the domain will significantly stimulate the innovation and development of the above stated specialisations, in particular specialisations B and C over a long period of time (10 and more years).  Nowadays, it is clearly evident that the cluster of medical diagnostics with companies intensively investing into R&D is growing. These companies search for ways how to resolve customer problems by combining existing technology with instrumentation and through automation meet the customer needs more effectively and cheaply. This direction is only one of the many opportunities brought along by the global revolution in medical technologies and healthcare. E: Aircraft technology - there are not many companies in SMR in this domain However, there are the following reasons to develop this domain:

 Honeywell, a global technology leader in several sectors, located its global development centre in Brno; much of it comprises industrial research and development of technology for aircrafts and aviation (e.g. navigation, safe operation etc.). The company is working on technology platforms that will be used in practice in 5 - 10 years. Such an extensive industrial research of future technologies is unique in the CR.  The multisector specification of Honeywell (the above stated domains overlap, in particular precision instruments and IT), in addition to its position of a technology leader, supports a versatile development of the technology of the local businesses and contributes to the growing link between SMR and global technology centres. The entire local economy will benefit from these links.  In the neigbouring Czech regions, there are many large and small technology companies involved in the value chain of aircraft manufacturing and related technology (Mesit; Evektor; 5M; Honeywell Aerospace Olomouc; První brněnská strojírna Velká Bíteš; Jihlavan etc.). Together with local companies Unis, Frentech, Saab Czech and DCom, these companies are strongly linked to VUT which represents a source of know-how and highly qualified workforce.  In summary: SMR has the potential to become an important technology centre of aircraft technology with positive side effects on the entire local economy.

Companies from the above stated specialisations will be the main stakeholders, 21and the strategy tools for smart specialisation in SMR will be drafted to suit their needs. In addition to the above stated specialisations where SMR has a demonstrably important international position, there are many other individual specialisations in the region that will be reflected when designing the implementation tools for the smart specialisation strategy. Table 6 below represents a matrix of relationships between, on one hand, key application fields, and on the other hand, knowledge domains that provide basic findings usable in different application fields. Research capacities that have been significantly strengthened in SMR through OP R&DfI funds for the programming period 2007 - 2013 are stated in italics. The following table 7 shows a detailed relationship between the application fields and social challenges. Social challenges arise out of the document National Priorities for Oriented Research, Experimental Development and Innovations which determine sectors which will be supported from the state budget for research and development. Priorities represent a brief or enquiry of the

21 However, they will not be the only ones. The development of economic specialisation can only be predicted with a certain degree of likelihood which drops in time. In addition to the ones stated above, there are other important individual sectors and companies whose needs can be decisive.

public sector for specific and practically usable research results and also opportunities for the private sphere with regards to new application needs and directions where market opportunities can be envisaged in the future.

Table 6: Matrix of innovation and research needs (knowledge domains and research capacities of R&DfI centres vs application fields in SMR)

Key industries for the application of knowledge Advanced Precision SW and HW Pharmaceuticals, Technologies for manufacturing instruments development medical care and aviation industry and diagnostics manufacturing technology Material research (Ceitec, Alisi, CMV FCh VUT, NETME, Ceplant, Admas)

Information and communication technology (IT4Innovations,SC Cerit, SIX) Electronics and photonics (Ceitec, Alisi, SIX, CVVOZE) Advanced production technology (NETME, Ceitec, Alisi) Bio-technology and biomedicine (Ceitec, FNUSA-ICRC, Recamo,

Generic knowledge domains (KETs/GPTs) domains knowledge Generic CETOCOEN/RECETOX, CzechGlobe) Design and creative industries

Table 7: Matrix of innovation needs and social challenges (social challenges and research capacities of R&DfI centres vs application fields in SMR)

Key industries for the application of knowledge Advanced Precision SW and HW Pharmaceuticals, Technology for production and instruments development medical care and aviation manufacturing diagnostics industry technology Competitive knowledge-based economy (Ceitec, NETME, SIX, IT4Innovations, Alisi, SC Cerit, CDV+) Sustainability of energy and material resources (CVVOZE, CzechGlobe, NETME, CMV, Admas, CEPLANT, Ceitec, CDV+) Environment for good quality of life (CETOCOEN/RECETOX, CzechGlobe, CMV, NETME)

Social challenges Social Social and cultural challenges (CETOCOEN/RECETOX) Healthy population (Ceitec, Recamo, FNUSA-ICRC, CETOCOEN/RECETOX) Safe society (IT4Innovations, SC Cerit, CDV+, SIX)

The stated matrices for innovation needs, knowledge and social challenges represent a basis for the identification of suitable direction of further research, innovation and educational activities. It is expected that during the implementation of RIS in SMR, an innovation platform will be created, comprising representatives from the business sphere and academic partners, where new project plans will be identified in order to fulfil the vertical priorities of SMR.

Proposal Part of the Regional RIS

Vision and mission

Mission: By increasing international competitiveness to ensure a long-term development and prosperity of the South Moravian Region (indicators of fulfilment: rate of employment, salary amounts) Vision: To develop innovation potential of the South Moravian Region to reach the same standard as the most innovative regions in Europe (performance indicators: intensity of private investment into R&D, number of European Research Council grants, share of foreign university students)

Kea areas of changes A: Pro-innovation administration and governance

Key area of changes A: Pro-innovation administration and governance Strategic targets in the key area of Indicators of strategic objectives changes A: A.1. 1) Evaluation score (or score change) of the administrative burden of researchers in SMR (on the basis of a regular sample Objective A.1. To improve the legal survey) framework and improve 2) The average time necessary to complete tenders for research equipment (from the time a researcher makes an administrative processes in public enquiry/specifies needs until signing a supplier contract) administration in R&D 3) Change (in time) of the average size of a purpose grant from national resources acquired by research organisations from SMR 4) Average number of funding sources earmarked for R&D results of research organisations from SMR reported in RIV A 2. 1) Number of identified legislative barriers for (innovative) businesses Objective A.2. To improve the legal 2) Share of enforced legislative changes in the overall number of identified barriers framework for (innovative) business

A 3. 1) Share of properly implemented Action Plan projects in the overall number of planned projects. Objective A.3. To improve good 2) Volume of private sources contributing to RIS activities quality management of RIS 3) Number of donors contributing to RIS activities implementation

Strategic Objective A.1.: To improve the legal framework and improve administrative processes in public administration in R&D Specific objectives Indicators of specific objectives Type of activity/project/operation A.1.1. Decreasing administrative 1) Number of initiated changes and Lobbying for simpler and rational rules at the national level with the providers of targeted burden and rationalization of rules for simplifications at the national level support of R&D in general, and, in particular, with regards to the newly set up SF 2014+ financing research introduced into practice and initiated by (regular consultations of rules with beneficiaries are essential) research organisations in SMR Initiating a permanent working group at the national level to decrease administrative 2) Evaluation of administrative burden of burden in R&D, including removal of legislative barriers (e.g. employing researchers, using researchers (regular evaluation essential subsidised results for commercialisation, etc.) + collating proposals to simplify

procedures) Lobbying for fair rules to be set up (emphasis on quality) in the system of institutionalised 3) Change in satisfaction with the results financing/RIV for the benefit of long-term and stable financing of good quality research of the evaluation of targeted support (including elimination of rules stimulating irrational behaviour - purposeful patenting, etc.) projects of the best research teams in SMR (essential to introduce a survey) Lobbying to improve the quality and transparency of evaluation when allocating funds of 4) Average time between closing a call targeted R&D support for grant proposals and signing a grant contract (and the change in time) 5) Share of salary resources expended on research vs non-research employees in research organisations (and the change in time)

Strategic Objective A.2.: To improve the legal framework for (innovative) business Type of activity/project/operation A2. 1) Number of identified A system for collating barriers for (innovative) businesses and enforcing remedies at the legislative barriers for (innovative) national level. businesses

2) Share of enforced legislative changes in the overall number of identified barriers Strategic Objective A.3.: To improve good quality management of RIS implementation Type of activity/project/operation 1) Share of properly implemented Action A functional and good quality multi-level RIS management Plan projects in the overall number of planned projects. Preparing and acquiring good quality analytical documents to make decisions concerning 2) Volume of private sources RIS management contributing to RIS activities 3) Number of donors contributing to RIS Existence of an RIS endowment fund RIS for financing RIS measures activities Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at three working group meetings (Objective A1). The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy, Long-Term University Plans Conditions and barriers for the implementation of interventions in the key areas of changes:

Key areas of change B: Excellence in Research

Key areas of change B: Excellence in research Strategic objectives in the key Indicators of strategic objectives area of changes B: B1. 1) Share of scientific publications of authors and co-authors from SMR/Brno, publications in the top 10% of the world most Objective B.1. To improve the quality cited publications (author from Brno/SMR as a corresponding author) 22 and problematic orientation of public 2) Share of scientific publications of authors from research organisations from SMR with a co-author from a business sector research in SMR 3) Number of Horizon 2020 grants - participation of research organisations from SMR and companies 4) Number of ERC grant holders and holders of foreign prestigious grants (Wellcome Trust, HFSP, EMBO etc.) employed in research organisations in SMR 5) International ranking of universities and research organisations in SMR (their change) - SciMago23 Objective B.2. To maximise B.2. 1) Number of licences for research results sold by research organisations from SMR to companies (from anywhere) economic benefits of public 2) Number of companies from SMR cooperating with research organisations from SMR through a subsidised grant project investment in R&D in the region (national programmes TA CR + H2020 + innovation vouchers) 3) Financial volume of funds for R&D acquired from research organisations from SMR from corporate resources (contract R&D + gifts from donors) Strategic Objective B.1. - To improve the quality and problem orientation of public research in SMR Specific objectives Indicators of specific objectives Type of activity/project/operation B.1.1. To have sufficient talents 1) Selecting university students in SMR Activities to popularize and acquire talented youth for research, in particular natural and for research in SMR (number of accepted students/number of technical sciences (secondary school students’ research projects, scholarships for applicants who attend admission talented students...) procedures) Activities to strengthen the pride and belonging to local research institutions (alumni 2) Choice/preference indicator of activities, etc.) universities in SMR (number of enrolled/number of accepted students) 3) Share (or change in share) of enrolled students with a permanent residence outside SMR B. 1.2. To improve material 1) Financial volume and number of OP RDE to support excellent teams and Future and Emerging Technologies (including conditions for good quality international grant projects (incl. Horizon, funds for Long-Term International Research Partnerships with leading research institutions abroad, own research and technology upgrade of research infrastructures)

22 Defined in accordance with the WoS Insights methodology, standardised by sectors (tbc). 23 See for example http://www.scimagoir.com/pdf/sir_2012_world_report.pdf

research teams in SMR and to 2020) Supporting international networking and sharing of experience with the operation of large improve their attractiveness 2) Number of infrastructures in SMR research infrastructures and strengthening an open access to large research involved in the project of pan-European infrastructures infrastructures ESFRI and included into Supporting arrival and short-term and long-term mobility of foreign researchers using the national roadmap of large diaspora/alumni, attracting talented students from abroad infrastructures Strengthening support services and soft infrastructures for foreign researchers (Euraxess), 4) Number (headcount) and share of using the potential of "active pensioners" foreign researchers employed in Activities to improve grant support, in particular, with regard to international grants research organisations in SMR 24 5) Number of post-doc positions staffed Projects to facilitate research careers for women (minimising lost talent) by researchers, PhD staff from other Junior Start Up grants projects institutions Strengthening research cooperation with strong and complementary partners from the near surroundings (Olomouc, Zlín, Bratislava, Vienna), taking advantage of the programme of cross-border cooperation and inclusion in the Danube Strategy with regards to R&DfI. B.1.3. To improve the standard of 1) Change in the share of publications Activities to improve strategic research management and strengthen "challenge culture" strategic research management published in the first quartile by impact (identification of top researchers and their awards) factor produced by research Internal grant scheme projects inside large universities (MU and VUT) organisations in SMR in a given field 2) Number of research organisations in Training projects for science management (measures to manage human resources and SMR that have introduced internal career development, managing cooperation with the corporate sphere...) incentives to support strategic research Activities to make internal processes within research organisations more efficient and to activities decrease administrative burden (process audits, etc.), including sharing good practice between research organisations and universities Rationalisation/making the conditions for employing researchers more efficient Introducing multilingual skills as a standard in research organisations/universities in the region

Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at three working group meetings. The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy, Long-Term University Plans Strategic Objective B.2.: To maximise economic benefits of public investment in R&D in the region Specific objectives Indicators of specific objectives Type of activity/project/operation

24 Relevant, in particular, for senior positions (if possible to distinguish)

B.2.1. To strengthen cooperation 1) Number of jointly submitted R&D Supporting preparation and implementation of joint projects of academic and application between research organisations grants (i.e. co-financed by companies) partners, in particular in key sectors in SMR with regards to R&D and education (emphasis and application sphere by research organisations from SMR and on interdisciplinary approach and definition of agendas in collaboration with companies (source: providers of grants) industry/application sphere): 2) Number of obtained R&D grants o FET projects (OP Research, Development and Education) and Centres of research projects by research Competence (i.e. long-term joint R&D programmes connected to PhD education), organisations from SMR and strategic projects from H2020 (Teaming and Twinning, etc.) companies(i.e. co-financed by o projects involved in KIC EIT, in particular, in areas relevant for smart specialisation companies) (source: CEP) Summer schools in cooperation with industry/ application sphere 3) Financial volume of funds for R&D Student mobility (Knowledge Transfer Partnership) acquired from research organisations Industrial professorships (professorships for experienced practitoners) from SMR from corporate resources (contract R&D) Activities to support contacts and building trust between research organisations and

business sphere (networking events, etc.)

B.2.2. To increase the commercial 1) Number of licences for research Activities to strengthen entrepreneurship of students (competitions for students, teaching use of R&D results and knowledge results sold by research organisations them fundamentals of business) of research organisations from SMR to companies (CSO) Supporting the foundation of academic companies (financing technology verification phases, financing startups based on research results) 2) Income generated by research Training of students and researchers in intellectual property issues organisations from SMR from licences for the research results Making processes of commercialisation of intellectual property more efficient and professional (licencing, contract research) 3) Average income per one licence sold Regional proof of concept fund by research organisations from SMR

4) Number of start up companies using intellectual property from research organisations

Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at three working group meetings. The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy, Long-Term University Plans Conditions and barriers for the implementation of interventions in the key areas of changes: Adequate transport accessibility of major air hubs from Brno Adequate quality of services for foreigners, including free time activities.

Key areas of changes C: Competitive Innovative Companies

Key areas of changes C: Competitive innovative companies Strategic objectives in the key area of changes B: Indicators of strategic objectives/key areas of changes: Objective B.1. To create suitable conditions for innovation driven by the growth of C.1. 1) Volume of non-investment R&D expenditure of companies from SMR "mature" knowledge-intensive companies 25in SMR (non-investment BERD) 2) Number of PCT patents (submitted applications)

Objective C.2. To increase the number of new companies with aspirations and the potential to have a dominant position on the market C.2. Number of knowledge-intensive startup companies/year with own R&D

Objective C.3. To increase the number of people starting their own business for the first time C.3. Share of students in their 4th year of the secondary school and in their 5th year of university stating starting a business as their preferred career choice Strategic Objective C.1. To create suitable conditions for innovations driven by the growth of "mature" knowledge-intensive companies in SMR Specific objectives Indicators of specific objectives Type of activity/project/operation C.1.1. To increase the number of companies and to 1) Change in the number of companies To support the preparation and implementation of joint projects of support the growth of companies able to push from SMR pushing technological academic and application partners, in particular, in key sectors in technological boundaries in their fields26 boundaries SMR with regards to R&D and education (emphasis on interdisciplinary approach and definition of activity focus in 2) Change in the number of R&D staff in collaboration with the application sphere) such as: companies - projects like Centres of Competence (i.e. long/term joint R&D programmes related to PhD education); 3) Number of successful - summer schools in cooperation with the application companies/businessmen in prestigious sphere; - international graduate schools;

25 For the purpose of RIS SMR, a knowledge-intensive company is defined as follows: i) a company owning its own technology/expert knowledge which significantly contributes to the turnover of the company (binary criterion); ii) a company with own R&D expenditure of at least 10 million CZK (for companies up to 49 employees, 5 mil CZK is sufficient, iii) a company with at least 10 employees, iv) a company which is more than 3 years old. 26 For the purpose of RIS JMK, a company pushing technological boundaries is defined as follows: i) a company owning its own technology/expert knowledge which significantly contributes to the turnover of the company (binary criterion); ii) a company with own R&D expenditure of at least 10 million CZK (for companies up to 49 employees, 5 million CZK is sufficient, iii) a company with at least 10 employees; iv) a company older than 3 years; v) a company present on world markets (three main continents - Europe, Asia, America); vi) a company owning a unique patented intellectual property (technology, procedures) - PCT, EPO, USPTO.

competitions 27 - international R&D programmes (Horizon, 2020) To introduce tools to support active involvement of corporate practice and education, e.g. industrial professorship (professorships for experienced specialists from the field) To strengthen contacts and building of trust between research organisations and business sphere (e.g. networking events, innovation vouchers, etc.) To support mobility of students/graduates/academics in the academic and corporate environment (e.g. programmes like Knowledge Transfer Partnership, SoMoPro Enterprise, etc.). C.1.2. To strengthen the competitive position of small 1) Change in the number of knowledge- To strengthen contacts and building of trust between research and medium size enterprises from SMR intensive companies in SMR organisations and business sphere (e.g. networking events, innovation vouchers, etc.) To support mobility of students/graduates/academics in the academic 2) Change in the number of "gazelles"28 and corporate environment (e.g. programmes like Knowledge Transfer Partnership, SoMoPro Enterprise, Innovation Assistant, etc.). To support the ability of strategic planning, innovation and productivity management in companies (in particular, small and medium sized enterprise/SME/, provision of good quality consultancy (coaching programmes) To popularize innovation as a way of company growth To implement activities for the development of a supplier chain of large companies ("supplier upgrade") including the use of the open innovation concept C.1.3. To attract to SMR talents 29 and investors 1) Number of foreign companies To update the process of attracting investors and enabling them "soft landing" in SMR

27 For the purpose of RIS SMR, prestigous competitions refer to the following: EY Entrepreneur of the Year, Delloite Fast 50, Vodafone Company of the Year, GE Money Bank Innovator of the Year, Pikes of Czech Business

28 For the purpose of RIS JMK a gazelle is defined as follows: i) turnover growth of at least 20 % per annum for the period of 4 years minimum (different every year); ii) turnover of at least 15 million CZK (at the time of measuring); iii) a company owning its own technology/expert knowledge which significantly contributes to the turnover of the company (binary criterion); iv) a company with research and development expenditure (binary criterion); v) a company that is not a branch of a transnational/international corporation (binary criterion)

29 Talents refer to potential company employees.

(domestic and international) implementing R&D activities in SMR To cooperate with the existing investors to ensure sufficient support for enforcing further investment as part of internal company structures To implement events targeted at increasing attractiveness of SMR for talents (e.g. from countries that have been hit by economic recession) Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at three working group meetings. The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy. Strategic Objective C.2. To increase the number of new companies with aspirations and the potential to have a dominant position on the market Specific objectives Indicators of specific objectives Type of activity/project/operation C.2.1. To increase the quality and relevance of services 1) Number of knowledge-intensive startup To suitably set up processes (in particular internally in R&D (and background facilities) for incubation programmes companies entering incubation institutions) - to strive for a mutually beneficial strategy during spin- in SMR programmes/year 30 off in R&D environment 2) Number of spin-off companies/year To prepare financial and advisory tools essential for a successful 3) Volume of BA investment/ventures development of knowledge-intensive startup companies (supporting entering into incubation programmes/year the phase of verification of the commercial potential of research 4) Number of invested companies results, seed funds, cooperation with BA/venture funds/e.g. corporate (BA/venture) entering into incubation funds/) programmes/year To adjust the set up of acceleration and incubation services in 5) Number of companies that employ at SMR with regards to the priority to support knowledge-intensive least 10 people (measured 5 years after startup companies the foundation) and that have been through incubation programmes

C.2.2. To support the growth of knowledge-intensive 1) Number of investment by mature To actively facilitate partnership of mature and startup companies startup companies through collaboration with companies/businessmen into the startup (networking events, mentors, etc.) developed companies/experienced businessmen companies in SMR from incubation To mediate briefs exploring technology topics from mature programmes companies to startups (e.g. events like open innovation session) 2) Number of startup companies classed To support experienced businessmen to share their know-how with as ZIF suppliers in SMR from incubation startups (e.g. experience from expansions abroad) programmes

30 For the purpose of RIS SMR, a knowledge-intensive start-up is defined as follows: i) a company with own technology/expert knowledge which significantly contributes to the turnover of the company (binary criterion); ii) a company that has been set up in the last three years; iii) a company with paying customers (not a company still developing a product).

Strategic Objective C.3. To increase the number of people starting their own business for the first time Specific objectives Indicators of specific objectives Type of activity/project/operation C.3.1. To increase students´ interest in business - Share of secondary school students To introduce tools to master the fundamentals of business already primary school and secondary school students in interested in starting their own business as at primary schools (e.g. events such as sell your own products) SMR the first career choice To popularize entrepreneurship among secondary school students (business courses, competitions, "trial" businesses, summer schools)

C.3.2. To increase the number of secondary school and 1) Number of university students in SMR To activate a startup community in SMR (meeting, clubs, lectures, university graduates who start their own business who show interest in business popularisation of positive examples, conference) To popularize business among university students (business courses, competitions, "trial" business, management games, summer schools) To support business in non-metropolitan locations

3 +/3 °C To increase the number of starting Number of businessmen recruited from To implement company accelerators businessmen recruited from mature companies mature companies enrolled in incubation programmes in SMR To set up incubation programmes in SMR in a suitable way

Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at three working group meetings. The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy. Conditions and barriers for the implementation of interventions in the key areas of changes: Adequate transport accessibility of major air hubs from Brno Adequate quality of services for foreigners, including free time activities.

Key areas of changes D: Top European Education

Key areas of changes D: Top European education Strategic objectives in the key area of changes D: Indicators of strategic objectives/key areas of changes: Objective D.1. To improve organizational and material conditions to increase the D.1. The volume of resources (especially (i) private and (ii) foreign31) focusing on the quality of primary and secondary education in SMR development of education in SMR

Objective D.2. To improve the quality and relevance of education, reflecting the D.2. Students´ results at different levels of primary and secondary schooling - needs of companies working in key industries in SMR (industries by the smart mathematics and natural sciences - results of the median student (the aim is to specialisation domain) improve the average quality) in PISA survey

Objective D.3. To define a new educational policy for the Region to ensure a long- D.3. 1) Strategy for the development of education to ensure a long-term term prosperity of the region prosperity of SMR implementation process 2) A system for collating data and evaluating information on education and the job market in SMR Objective D.4. To improve the quality and relevance of university education in the D.4. 1) Selecting university students in SMR (number of accepted region students/number of applicants who attend admission procedures) 2) Choice/preference indicator of universities in SMR (number of enrolled/number of accepted students) 3) Share (or change in share) of enrolled students with a permanent address Objective D.5. To improve the quality and attractiveness of teacher training in the outside SMR region D.5. 1) Share (or change in share) of students enrolled for teaching training programmes with a permanent address outside SMR Objective D.6. To increase internationalisation, openness and permeability of universities in the region D.6.. 1) Share of foreign university students 2) Number of accredited study programmes in foreign language by faculties 3) Number of study programmes implemented jointly by two or more universities Strategic Objective D.1. To improve organisational and material conditions in order to increase the quality of primary and secondary education in SMR Specific objectives Indicators of specific objectives Type of activity/project/operation D.1.1. To introduce a system of performance 1) An introduced system of performance Defining and pilot testing efficient methods of performance management of

31 In particular ESIF resources.

management in secondary schools in SMR management of secondary schools in secondary schools by the Region (involving active mayors from towns in SMR who Performance management refers to: SMR want to introduce performance management of primary schools in their towns) 32  Defined measurable performance targets of secondary schools 2) Volume of funds secured by To create and introduce a regional system for quality measurement (link to C3 - a vision of how a secondary school system should headmasters to develop their schools, in education as a necessary part of performance management system function in SMR and a strategy to fulfil the vision) in secondary schools  Remuneration for schools management on the basis of apart from funds from the founder and meeting performance targets MEYS Management education for school headmasters, teachers and other stakeholders who influence the shape and performance of education in the region (e.g. school inspections). The Region collaborates with municipalities in SMR when introducing performance management at secondary and primary schools in the region D.1.2. To improve the infrastructure and material 1) An implemented, regularly evaluated An investment programme focused on decreasing operating costs of conditions for primary and secondary education in SMR system of investment into the secondary schools (in particular, energy costs) that can be used for development of infrastructure and investment educational aids at secondary schools in Introducing incentives for decreasing operating costs in the SMR performance management system and the remuneration system for 2) Total cost of operating secondary school headmasters (part of the performance management system at schools (energy - consumption in units, secondary schools) financial cost) Investment into school equipment enabling electronization of 3) Unit cost of running secondary schools education, and developing teachers´ skills to use the equipment and tools necessary Strategic and regional documents used to set up strategic and specific objectives: The objectives and activities were proposed in two meetings of the working group on the basis of related communication with the Department of Education at the Regional Office of SMR. The objectives are in compliance with superior strategies. Strategic Objective D.2. To improve the quality and relevance of education, reflecting the needs of companies working in key industries of SMR Specific objectives Indicators of specific objectives Type of activity/project/operation D.2.1. To improve the level and relevance of technical 1) Existence of centres of excellent Centers of excellent technical secondary education knowledge and skills of secondary school graduates secondary technical education in priority Supporting introduction of dual education features at technical (impossible without good quality primary school graduates) sectors colleges and secondary vocational schools

2) Number of secondary schools with Practical training for teachers of technical subjects, focusing on modern teaching aids for mathematics, mastering and using new production and related technologies physics, chemistry and specialised Supporting involvement of people working in industrial fields to teach technical subjects with some classes at technical colleges/secondary vocational schools taking place directly in companies Introducing features of polytechnic education at nurseries and primary

32 Despite the attempts made so far, there is no reliable system for measuring quality. The lack of performance management at schools and the contradictory targets set out by the different groups of the stakeholders involved prevent to introduce a quality measurement system in education.

3) Number of teaching hours in companies schools per one secondary school student Science and technology summer schools (children) and schools (students ) Activities with Kids and Science programme (NDL) Supporting the creation and introduction of new teaching methods and increasing the attractiveness of technical and natural science subjects Supporting introduction and sharing of a special educational infrastructure and aids (e.g. in connection to MSCB) D.2.2. To improve key generic abilities of secondary 1) Number of secondary schools with Introducing financial literacy, business features and company school students with an emphasis on increasing own modern teaching equipment and aids management into lessons initiative and enterprise reaching soft skills level 2 in accordance Awareness raising and motivational activities for secondary school with NSK students interested in business (e.g. summer business school, 2) Employers´ satisfaction with graduates competition between companies set up by students, etc.) (survey - using the existing employer Programme for the acceleration of business ideas of secondary survey) school students Development of career and personal advisory services at secondary schools with an emphasis on bringing to students information on employment in SMR, employers´ requirements, wages and salaries associated with various professions. Special section Science Learning Centre (how to turn research results into a successful business) D.2.3. To improve international experience, contacts 1) Percentage of secondary school To strengthen students´ exchanges, mandatory for graduation and overview of secondary school and university students who spend at least one week Introducing scholarships for prestigious universities for selected graduates studying at a secondary school abroad students (foundations, e.g. for winners of prestigious international 2) Percentage of secondary school competitions, etc.) students who spent at least half a term or To support mobility of students and graduates more terms studying abroad To support inclusion into international students´ competitions Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at three working group meetings. The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy.

Strategic Objective D.3. Definition of a new educational policy for SMR to ensure a long-term prosperity of the region Specific objectives Indicators of specific objectives Type of activity/project/operation

D.3.1. To provide relevant data and strategic A shared information system on the To ensure adequate professional capacities to monitor and analyse information for an efficient educational policy of the development of economy, job market and the development of the labour market and the educational system in Region and decision making of managers at schools in educational system in place in SMR SMR (an observatory of the labour market and employment) SMR To review available data on the labour market and education, and identification of necessary data and information which is not part of the existing statistical surveys of relevant institutions To prepare a reliable methodology and ensure a regular collation and analysis of the data necessary D.3.2. To develop a partnership for education and the To set up an employment pact in SMR To map out the existing coordination activities in the area of education labour market, and to involve the market into the RIS and the labour market, and to verify the results of their activities (incl. SMR platform further viability) To ensure a political support for the "leadership" platform for the development of education and labour market Facilitating the inclusion of key stakeholders, in particular employers - employment pact D.3.3. To define the role of education in the 21st Existence of a strategy for the Deep problem analysis of the educational system including the views century and to state a strategy for its development in development of education with synergies of students, parents, employers, teachers, including reflection of accordance with objectives of RIS SMR with RIS JMK and its implementation global social, economic and technological trends In relation to the results and in compliance with the principles of partnership, formulating a strategy for the development of education, 2030, in SMR Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at three working group meetings. The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy. Conditions and barriers for the implementation of interventions in the key areas of changes:

Strategic Objective D.4. To improve the quality and relevance of university education in the region Specific objectives Indicators of specific objectives Type of activity/project/operation D.4.1. To strengthen the quality and a) Level of employer satisfaction Using the implementation of the national qualification framework for universities and relevance of general university education with general competencies of preparation for ECTS Label for a systematic description and development of generally university graduates in SMR transferrable competencies used in teaching

Strengthening an emphasis on advisory services and voluntary activities, including cooperation of universities with voluntary student organisations D.4.2. To strengthen the quality and a) Level of employer satisfaction Searching out possibilities of collaboration between universities, companies and other relevance of university fields of study with the knowledge and organisations at the regional level competencies of university Incorporating the emphasis on other than frontal forms of education and their 46

graduates in SMR in their fields indicators, including institutional development plans, in the long-term plans of universities b) Number of subjects partly taught Programme for financial support of economically demanding, project oriented learning by professionals from the Collaboration between companies and other organisations to create study application sphere in accredited programmes study programmes by faculties Priority involvement of organisations set up by the Region to arrange work experience and internships for students b) Study subjects with mandatory work experience of at least 1 month D.4.3. To improve conditions for talented a) Number of secondary schools Collaboration programme (institutional) between universities and secondary schools students involved in the collaboration Permeability of secondary school and university studies for talented students network with universities (possibility of acquiring eligible credits) b) Number of universities enabling studying parts of the university study programmes and acknowledging credits D.4.4. Improving strategic management at a) Number of universities applying Sharing experience between universities universities and evaluation of the quality of the principles of European Standardised description of all study programmes, fields and subjects in Czech and university education standards and guidelines when English in the structure required by ECTS methodology evaluating quality in order to ensure Educational courses for academic management (members of university quality university education management/faculty management, heads of institutions/departments and other key b) Number of universities – holders members of staff) of ECTS Label Moral support for good quality university education (awards for the best university teacher....) Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at two working group meetings. The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy, Long-Term University Plans Strategic Objective D.5. To improve the quality and attractiveness of teacher training in the region Specific objectives Indicators of specific objectives Type of activity/project/operation D.5.1. To increase practical skills of Share (or change in share) of To increase the proportion of practical lessons for students of teacher training subjects graduates of teacher training programmes students enrolled for teaching using methods analogous to item 1.2. (supporting contracts with schools, financial training programmes with a programme) permanent address outside SMR Coordination with the national project for increasing the quality of teacher training programmes in Slovakia (Matej Bela University and others, project proposals for 2014) selection procedures for teaching positions at schools in SMR with the participation of universities providing teacher training programmes, using applicants´ portfolios, their experience and evaluation of their teaching practice

Analysis of qualification and competence requirements for teaching positions Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at three working group meetings. The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy, Long-Term University Plans Strategic Objective D.6. To increase internationalisation, openness and permeability of universities in the region Specific objectives Indicators of specific objectives Type of activity/project/operation D.6.1. To increase international attractiveness a) Share of foreign university A joint marketing of universities in SMR of universities in SMR students Integrated regional scholarship programme for talented foreign students b) Number of foreign students coming to universities as part of the mobility programme

c) Number of accepted foreign Coordination of services for foreign students and academic members of staff academic members of staff at (accommodation, support care for families, orientation...) universities as part of the mobility programme

d) Number of accredited study programmes in foreign language by faculties

e) Number of joint/double degrees provided in collaboration with universities abroad D.6.2. To increase internal attractiveness of a) Share of university students in Joint marketing of universities in SMR (in accordance with 3.1.) universities in SMR SMR with a permanent address outside SMR b) "Selectivity" indicator (%) c) "Choice" indicator (%)) D.6.3. Ensuring permeability of study a) Number of study programmes Supporting agreements made by and between universities in accordance with Section programmes offered by universities implemented jointly by two or more 81 of the University Act concerning joint implementation of study programmes universities Creating legislative, economic and operational methodology to ensure permeability of study subjects across universities in SMR and acknowledgment of the awarded credits b) Number of university subjects

accessible at individual universities Pilot projects for making some of the study subjects at universities in SMR accessible

c) Number of universities – holders of ECTS Label

Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at three working group meetings. The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy, Long-Term University Plans Conditions and barriers for the implementation of interventions in the key areas of changes: Adequate transport accessibility of major air hubs from Brno Adequate quality of services for foreigners, including free time activities.

Key areas of changes E: Attractive region (communication)

Key areas of changes E: Attractive region (communication) Strategic objectives in the key area of changes E: Indicators of strategic objectives/key areas of changes: Objective E.1. Creating a new image E.1. 1) Existence of Regional Marketing, a regional brand and a marketing plan

Objective E.2. Creating a new image E.2. 1) Equity brand of the Region - a system of parameters measuring efficiency of the brand (regularly measured every 2 years) for target groups (image, knowledge, ...)

Strategic Objective E.1. – Creating a new image of SMR/Brno as an area for advanced knowledge economy with talented, creative and active people, top scientific teams, global competitive knowledge companies with a support of modern public administration which creates unique beneficial conditions. Specific objectives Indicators of specific objectives Type of activity/project/operation E.1.1. Creating Governance = conditions for planning Existence of an executive team managing Enforcing a regional team in the regional structure and implementation of communication activities in the brand until June 2015 Creating a team: persons, positions, job descriptions (Marketing SMR/Brno in the context of VVIP and creating a Manager, PR Manager, Event Manger, CMI, Brand Manager) regional brand Competence, responsibilities of regional marketing Ensuring financing of regional marketing activities of VVIP = Team Budget and Communication Budget E.1.2. To create a regional brand Regional brand is defined until the end of Starting a Brand Management process (brand management) 2014 To create an overview of the competition, i.e. relevant benchmarks Determining primary and secondary target groups and their "Consumer Insights" Creating a strategic concept of the brand (Essence Brand Model) of SMR/Brno region VVIP focused on determined target groups Creating a communication concept SMR/Brno VVIP Creating a logo, symbol and design (brand design manual) for SMR/Brno VVIP brand To create rules, rights and obligations connected with the use and presentation of the regional brand E.1.3. Creating a network of external ambassadors Number of external ambassadors To create a platform for Programme for Ambassadors (internal (from regions) and external (outside the region) SMR/Brno VVIP brand E.1.4. To link up important stakeholders of the 1) Number of represented stakeholders in To create a platform for a marketing and implementation/coordination a working group team of RIS communication pillars from the representatives of 50

innovation ecosystem for brand building as part of VVIP 2) Number of partners using the brand marketing experts in the innovation ecosystem (role, status, title, and using advantages arising out of the co-ownership of composition, time schedule of activities....) a strong brand To create an electronic library as an online shared area for storing topical important information, documents, and an integrated calendar of relevant communication activities RIS/communication for the whole platform

Media coverage of the platform in the region Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at three working group meetings. The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy. Strategic Objective E.2. Creating a new image of SMR/Brno region (implementation, management and monitoring of results) as an area of advanced knowledge economy: i) a centre of innovative business; ii) a research and development centre, iii) a good quality education centre. Respecting DNA of the region: Quality of life/Attractive for life Specific objectives Indicators of specific objectives Type of activity/project/operation E.2.1. To increase the awareness and attractiveness of Increase in the determined parameters of To create an updated annual communication plan of "own" activities the region in the target group: Brand Equity and to implement relevant activities in the prospective year - TALENT (CR and abroad)  Target group  talented university applicants  Determined objectives  scientists for scientific centres  Activities  specialists for technology oriented companies  Media plan  Annual timetable INVESTOR (CR and abroad)  Annual budget  StartUp – starting businessmen who were  Monitoring of results previously employed To create an updated annual media plan for using the regional brand  ZIF – companies implementing R&D (Chief by partners in their own communication (CoBranding) Technology Officer)  type of activity and media type  number and deadline of publishing RESIDENT  Parents of children age 10 - 13  Teachers at secondary schools (technical subjects, fields) Strategic and regional documents used to set up strategic and specific objectives: Objectives and activities were proposed at three working group meetings. The objectives are in compliance with superior strategies, i.e. Development Strategy for South Moravian Region 2020, Brno Strategy. Conditions and barriers for the implementation of interventions in the key areas of changes:

Implementation Structure RIS SMR

The implementation system of RIS SMR is based on three basic pillars: implementation management, monitoring, and evaluation of impacts. For the purpose of implementation management RIS SMR, the following structures were set up: i) Steering Committee; ii) Coordination Committee; iii) working groups for individual areas of changes; iv) RIS/S3 manager. Institutional composition of individual structures is listed in Table 8. i) The Steering Committee discusses the mission, vision, objectives, activities of RIS JMK. The Steering Committee discusses project plan proposals (Action Plan) and issues statements to the local coverment of South Moravian Region and the Statutory City of Brno. The composition of the Steering Committee is in accordance with recommendations of the S3 Guide of the European Commission . The Steering Committee acts in accordance with its own rules of procedure. The Rules of Procedure are approved by the Steering Committee. ii) The Coordination Committee discusses proposals made in working group meetings, in particular, in terms of the feasibility of interventions. The proposals are subsequently presented to the Steering Committee. The Coordination Committee comprises, in particular, representatives from institutions implementing interventions of RIS SMR. Members of the Coordination Committee are appointed by the Steering Committee of RIS SMR. ii) Working groups for individual areas of changes during the implementation, identification of proposals for new projects complying with the objectives of RIS JMK. Working groups meet twice a year. Proposals for new projects are processed by the leaders of working groups (appointed by RIS manager) and presented to the Steering Committee. The composition of working groups can be changed. iii) RIS SMR Manager (S3 Manager) ensures the running of the implementation structure, i.e. identification and discussion of new project plans, supervision of the Action Plan implementation, and is responsible for preparing monitoring reports and evaluation reports. The manager of RIS SMR (S3 Manager) was appointed on the basis of a tender organised by MEYS in collaboration with the Regional Office of SMR through tender procedure in April, 2013. RIS Action Plan refers to a portfolio of project plans that comply with individual RIS objectives. The Action Plan is regularly updated in working group meetings, and on the basis of project plans gathered in the region, and it is presented for discussion to the Steering Committee of RIS. The Action Plan is subsequently discussed in the bodies of the local government.

Implementation will be monitored at two levels: i) project; ii) strategic. i) project level - monitoring implementation of projects, arising out of the RIS Action Plan, with regards to output indicators. This monitoring will be done once a year and it will be presented to the Steering Committee. ii) strategic level – monitoring compliance with the mission, vision, strategic and specific objectives. This monitoring will be done once every two years and it will be presented to the Steering Committee.

The evaluation of impacts of the strategy will be done in two phases, in the middle of the strategy implementation (interim evaluation by independent experts in 2017) so that it is possible to review the tools/strategy direction. The interim evaluation will also be used as an ex-post evaluation for RIS SMR 2009-13 (a phase delay is used to capture the actual impacts of the intervention in the area). After RIS SMR 2014-2020 is implemented, an ex-post evaluation will be done by independent experts in 2022.

Table 8: Key entities of the implementation structure of RIS SMR and its members (listed institutions in the working groups involved in the definition of RIS SMR), as of 12 May, 2014.

Steering Committee of RIS SMR (Regional Council for Innovation): Members of the Steering Representatives of South Moravian region and the Statutory City Committee of RIS SMR: of Brno. Representatives of public universities residing in SMR. Representatives of the Academy of Sciences CR. Representatives of companies in key economic sectors (one representative of a company showing the highest R&D investment per sector]. JIC representative JCMM representative RRA SM representative Coordination Committee RIS SMR Members of the Coordination Members will be appointed by the Steering Commitee RIS. They Committee RIS SMR. will mostly be representatives of institutions that implement RIS SMR measures. For example: Regional Office of South Moravian Region, Brno Municipal Office, JIC, JCMM, CTT and OV VŠ, RRA JM, CzechInvest, KHK JM, Planetarium, MSCB and others. Working group for: Excellence in research Members of the working group Masaryk University (CETOCOEN, ICRC), Institute of Scientific of Excellence in Research: Instruments ASCR (ALISI), Brno University of Technology (NETME, ADMAS, SIX, CEITEC, IT4I), CEITEC CŘS, St Anne Teaching Hospital

(ICRC), Honeywell, Flextronics, FEI, BioVendor, SCB, JIC and others. Working group for: Competitive Innovative Companies Members of the working group ABB, Alta, Asio, Autoklastr, BioVendor, Flexibuild, Kentico, Competitive Innovative Honeywell, Safetica, Brno University of Technology (SIX), ZKL Companies: Research and Development, SCB, JIC and others Working group for: Top European Education Members of the working group Working group for universities: Top European Education Masaryk University, Brno University of Technology, Veterinary and Pharmaceutical University in Brno,Mendel University in Brno, Janáčkova Academy of Performing Arts in Brno, SCB, JIC and others ------Working group for primary and secondary schools: JCMM, Regional Office of South Moravian Regio, Masaryk

University, Vzdělávání všem (Education for All), Kentico Software, Audica, RPIC VIP, Cpt. Jaroš Grammar School, Řečkovice Grammar School, SCB, JIC and others. Working group for: Attractive region (communication) Members of the working group Tomáš Avrat (JIC) Attractive Region CEITEC – CŘS, Brno Municipality Office, Regional Office of South (Communication) Moravian Region, FNUSA – ICRC, Vzdělávání všem (Education for All), Masaryk University, Brno University of Technology, Mendel University Brno, Tescan, Unis, BookHouse, CTP, JIC, Brno Planetarium, VIDA! Science Centre, Mendel Museum MU, Honeywell, Y Soft, Kuřim, Tourism Headquarters SMR, RRA SM, JCMM, Technical Museum, Brnopolis, o.s., Brno Airport, CzechInvest, UPT AVČR, CzechGlobe, BVV, BioVeta, BioVendor, Zetor, FEI and others. Sectoral innovation platforms will be determined during the implementation of RIS. Executive unit for the coordination of regional RIS: JIC, zájmové sdružení právnických osob (corporate interest group) Executive units for the implementation of regional RIS: JIC, interest association of legal entities, Jihomoravské centrum pro mezinárodní mobilitu, z.s.p.o - South Moravian Centre for International Mobility Notes: In accordance with the rules of MEYS "executive" units can only be institutions that are founded to support research, development and innovation and to whom public contracts can be awarded by the regional local government in the form of in-house contracts. The above stated responsibilities for the implementation of RIS measures does not exclude other organisations from participating in the implementation of RIS measures. Regional RIS/S3 manager Petr Chládek, JIC, interest association of legal entities (selected on the basis of MEYS and SMR tender)

Annexe 1: Action Plan no. 2014/01 Action Plan no. 2014/01 represents a portfolio of project plans which comply with the above stated objectives of RIS SMR. Project plans (fiche) are in a preparatory phase and the parameters can slightly change during the preparation of projects. The table summarises individual project plans. The fiche stated below develops the project plans further.

Project cost in Specific Project plan Project funding Notes Name of the project plan Outputs of the project plan (presumption) total objective holder sources (estimate) Regional Lobbying system to improve Chamber of 0.5 million A.2. XX number of enforced legislation changes/year OP EIC business environment Commerce CZK/year (RCC) SM DRAFT Brno Sun tower, basement hall with exhibitions, stone Observatory B 1.1. Natural sciences stellarium garden, intelligent climbing frames 70 million CZK OP RDE and Exhibition: 3; Educational modules: 6 Planetarium - lectures for public - workshops, science cafe Brno - networking - existing scientific and Observatory 1.5 million B 1.1. GO_Science @ BRNO OP RDE popularisation projects and CZK/year - meetings between major scientists and Planetarium representatives of the public life in Brno 4 million continuation of the existing B 1.1. Brno PhD Talent 12 PhD students per year JCMM SCB CZK/year programme/project 5 million continuation of the existing B 1.1. Support of gifted students (PPNS) 250 students per year JCMM SMR CZK/year programme/project support provided to 100 scientists/year through B 1.2. EurAxess JCMM 4 million CZK EUPRO/MEYS continuation of the existing individual consulting and support programme/project Arrival of 20 top scientists and implementation SMR holder B 1.2. SoMoPro III. of their 1-3 year long scientific projects in the JCMM - 80 million CZK SMR/H2020 continuation of the existing South Moravian Region. administrator programme/project e-IROI (e-Infrastructure Research 550 million B 1.2. See fiche MU OP RDE and Operation Institute) CZK Masaryk University Comprehensive 1 200 million B 1.2 See fiche Simulation Centre (SIMU) MU CZK OP RDE

University (joint B 2.1. Regional proof of concept fund project) 10 million CZK SMR, OP RDE

300 supported clients/year, 450 resolved 1. 666 million C1.3. Brno Expat Centre Brnopolis, o.s. SCB requirements CZK/year continuation of the existing programme/project Reconstructed former Penitentiary to house the 400 million Centre; Launch of the Centre CZK (10 mil SCB, OP EIC, C 1.2. Brno Creative Centre SCB Number of users of the Creative Centre and its CZK SF services; preparation) a. To create and test the process of KTPi in SMR b. To create an efficient implementation team Knowledge Transfer Partnership for good quality services SCB, SMR, OP C 1.1 JIC 20 million CZK intenational (KTPi) c. To ensure sufficient demand for the EIC programme, to implement the planned number of transfers (5-10 projects/year) d. To evaluate the impact of the programme Number of applicants (200/year) 4.5 million C 1.2. Innovation vouchers JIC SCB continuation of the existing Number of supported projects (40/year) CZK/year programme/project Number of applicants (100/year) 4.5 million C 1.2. Design and creative credits JIC SCB Number of supported projects (40/year) CZK/year Launch of competence centres (CC) in key sectors in SMR a. To define sector focus and map out demand for CC TBD b. To ensure active participation of key (depending on C 1 Competence centres SMR, JIC SMR, OP EIC companies sector c. To invest into infrastructure (not necessarily specialisation) into a construction of new buildings, but into equipment and related operating cost) continuation of the existing d. To set up a suitable operating model programme/project C 1 Knowledge Transfer Partnership 15–20 supported projects/year JIC 20 million CZK OP EIC C 1 Summer school 2-3 summer schools/year JIC 0.6 million CZK OP EIC

Mobility schemes set up/launched a. Set up scheme/legal provisions, marketing, financial provision etc./ 25 million C 1 Mobility JIC OP EIC b. Pilot verification –/2–3 supported projects/ CZK/year c. Full operation of the scheme – up to 15 supported projects

SMR, SCB, OP C 1 Platinn 30-40 companies/year JIC 5.5 million/year EIC C 2 Seed Fund XX supported companies JIC 50 million CZK SMR, investors Innovated and further developed incubation and acceleration programmes - incubation programme JIC adopted to the needs of knowledge intensive companies (KIS) Incubation and acceleration - number of incubated projects with KIS 15 million SMR, SCB, OP C 2 programme JIC (StarCube, JIC characteristics CZK/year EIC Innovation Park) - acceleration programme JIC adopted to KIS needs - number of supported companies with KIS continuation of the existing characteristics programme/project a. To create a suitable concept FabLab in Brno/SMR b. To get funding 5 million C 3. Fabrication Laboratory (FabLab) JIC SMR, OP EIC c. To ensure sufficient demand (min. 500 CZK/year "subscribers") d. To launch operation Number of secondary school and university To popularize entrepreneurship at students from SMR who showed interest in Regional 8 million C 3. primary schools, secondary schools business and innovation Chamber of OP EIC CZK/year and universities Number of secondary school and university Commerce students starting their own business Consultancy for starting Number of users of business centres and their Regional 5 million C 3. entrepreneurs in non-metropolitan services Chamber of OP EIC CZK/year areas Number of graduates starting their business Commerce Internationalisation of Brno 3-4 lecturers abroad, 150 supported foreign 5 million continuation of the existing D JCMM SMR universities students CZK/year programme/project Creating a name/slogan, i.e. putting Slogan for graphical representation of the 0.15 million E.1. the new regional brand into words SMR SMR regional brand logo. CZK using key ideas.

Creating a logo, i.e. graphical E.1. representation of the regional brand Regional brand logo. SMR 1.4 million CZK SMR using key ideas. Electronic data portal, i.e. electronic Electronic library used by companies who form E.2. library of the Regional Innovation SMR 0.4 million CZK SMR part of the regional innovation ecosystem Ecosystem of South Moravia Advertising campaign - Advertising agreement with a selected E.2. SMR communication agency communication agency. 0.5 million CZK SMR

Area of changes: B. Excellence in research Strategic objective: B.1. To improve the quality and problem oriented public research in SMR Specific objective B 1.1. To have sufficient talents for research in SMR Project name: Natural Sciences Stellarium Justification and project The project "Natural Sciences Stellarium" will enrich the educational, cultural and description touristic activities offered by Brno Observatory and Planetarium. It is linked to projects such as "Natural Sciences Exploratorium" and "Natural Sciences Digitarium". This installation will be completely unique in Brno. The content of the project is educational, aesthetical and artistic. The project will be used as part of educational programmes for primary and secondary schools, animation projects for the public, the inhabitants of the city of Brno and tourists visiting the city. It will undoubtedly liven up the area of Kraví hory and the wider centre of the city of Brno. It is expected that the annual operating cost will be covered by the admission fees; it is envisaged that more than ten thousand persons per year will visit. The basis of the project "Natural Sciences Stellarium" is the Sun Tower/Observatory built near the existing building, a thematic exhibition and an observatory terrace. A freely accessible, exterior exhibition of large-format geological samples, and a set of mechanical, physically ingenious climbing frames will be attached to the building.

If necessary, the project will be implemented in three stage - first the Sun Tower with a basement hall, then the stone garden and the intelligent climbing frames as the last. The garden and the climbing frames do not require a building permit. Project objectives: To support, develop and complete the existing projects Natural Sciences Exploratorium, Natural Sciences Digitarium, and to increase the attractiveness of this urban part for teenagers and adults, the locals and tourists Project outputs (proof of Constructions: Sun tower, basement hall with exhibitions, stone garden, meeting the objective) intelligent climbing frames Exhibition: 3 Educational modules: 6 Outcome (how will the project contribute to fulfilling specific objectives?) Responsible for Brno Observatory and Planetarium implementation Responsible for funding Statutory City of Brno

Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%) project 4,000,000 OP RDE preparation project 65,000,000 OP RDE implementati

on operation 1,000,000 SCB 100 % per annum** Partners PřF MU, VIDA science center, Mendel Museum MU, VUT, MENDELU

Activity plan Implement ation Activity Description Responsibility (organisation) deadline (from - to) Brno Observatory and 1 Project preparation I/2015 Planetarium Brno Observatory and 2 Zoning decision, building permit (parts of project) Planetarium, Statutory City of 2015-2016 Brno Brno Observatory and 3 Construction of intelligent climbing frames 2015 Planetarium Brno Observatory and 4 Making the stone garden 2015 Planetarium Construction of the basement hall and the Sun 5 Statutory City of Brno 2016-2017 Tower Brno Observatory and 6 Teaching modules, exhibition (ongoing) 2015-2017 Planetarium

Area of changes: B. Excellence in research Strategic objective: B.1. To improve the quality and problem oriented public research in SMR Specific objective B 1.1. To have sufficient talents for research in SMR Project name: GO_Science @ BRNO Justification and project Many small and large research projects are implemented in the City of Brno and description in the South Moravian region which support - either remotely or directly at the place of implementation - many Czech and foreign specialists. Many of them are top specialists and promoters of science, who help to promote scientific projects and interconnect specialist and promotional projects, and who link the synergies of the academic environment of universities and the public sector. Project objectives: To maximise the benefit of Czech and foreign specialists visiting Brno and the South Moravian Region, to support media coverage of science, and to promote the existing scientific projects and their results and successes. Project outputs (proof of - a series of lectures for the public meeting the objective) - workshops, science cafe - networking the existing scientific and promotional projects - meetings of major scientists with the representatives of public life in the City of Brno Outcome (how will the project contribute to fulfilling specific objectives?)

Responsible for Brno Observatory and Planetarium implementation Responsible for funding Brno Observatory and Planetarium

Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%) project 500,000 preparation project 1,000,000 implementati on operation 1,500,000 per annum** Partners Masaryk University, VIDA! Science Centre, Mendel Museum at Masaryk University, Brno University of Technology, Mendel University in Brno, CEITEC, RECETOX, CzechGlobe Activity plan Implement ation Activity Description Responsibility (organisation) deadline (from - to) Brno Observatory and 1 Project preparation I/2015 Planetarium Brno Observatory and 2 Lectures and workshops Planetarium, Statutory City of since 2015 Brno

Area of changes: B: Excellence in research Strategic objective: B.1. - To improve the quality and problem oriented public research in SMR Specific objective B.1.1. To have sufficient talents for research in SMR Programme name: Brno PhD Talent Justification and project The constantly increasing global interconnectedness leads to a global description competition for the most talented students. To a major extent, the economic development of towns and regions is dependent on the presence of talent. It is fundamentally important to make science attractive for talented young people in order to ensure good quality development of science and research, and to increase competitiveness. Project objective: The project aims to motivate and support talented students to take up scientific careers by offering them a stable financial support. The project responds to the unsuitable financial conditions of PhD studies in the CR and gives prestige to supported students, enabling them to fully devote themselves to their studies and scientific work. The project will also favour applicants whose PhD work focuses on scientific directions which will strengthen intelligent specialisation of the region. Project outputs (proof of At least 60 PhD students will have been supported by 2020, i.e. at least 12

meeting the objective) students supported in every call. Out of which, at least 50% in sectors relevant for the development of intelligent specialization fields. Outcome (how will the A long term scholarship scheme for talented PhD students to motivate students project contribute to to do a PhD in technical and natural sciences (with an emphasis on intelligent fulfilling specific specialisation) at Brno universities. To increase the competitive advantage of objectives?) Brno, compared to other Czech towns (in particular Prague and Ostrava) by attracting young talented people from the whole of CR and abroad, and to strengthen the links of supported students to Brno. Responsible for JCMM implementation Responsible for funding Statutory City of Brno

Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%) project 0 % preparation project 18 million CZK 0 % implementati on operation 4.3 million CZK 0 % per annum** Partners Brno universities.

Activity plan Implementa tion Activity Description Responsibility (organisation) deadline (from - to) 1 Call 2014 JCMM 2014 2 Call 2015 JCMM 2015 3 Call 2016 JCMM 2016 4 Call 2017 JCMM 2017 5 Call 2018 JCMM 2018

Area of changes: B: Excellence in research Strategic objective: B.1. - To improve the quality and problem oriented public research in SMR Specific objective B.1.1. To have sufficient talents for research in SMR Project/Programme name*: Supporting gifted students in the South Moravian Region Justification and project The project focuses on supporting individual human potential, and the mission is description to create long-term conditions for the readiness of human resources in the South Moravian region and to motivate talented pupils and students to study science. The project implements activities connected to further education of pupils/students included into the Support Programme for Gifted Students in the South Moravian Region (hereinafter SPGS); it provides direct support to these students; material support enabling to develop specialised secondary school

research (hereinafter SSR); it supports talented students when solving interdisciplinary tasks in N-trophy competition; supports T-excursions; organisation of "Robotiáda" competition Project objectives: The project aims to provide gifted pupils/students with means to extend their knowledge and skills as necessary, to make the students more desirable for scientific institutions and innovative companies, and to strengthen their links to the South Moravian Region. Project outputs (proof of Number of supported students: XX meeting the objective) Outcome (how will the project Gifted students supported by SPGS who will continue in their studies at one of contribute to fulfilling specific the universities in SMR The target value of the project is XX % of supported objectives?) students who will subsequently study in SMR. Responsible for JCMM implementation Responsible for funding SMR, OP RDE

Budget Volume (CZK) Expected national funding Level of co-financing (estimate) sources (%) project preparation project implementation operation per 5 million CZK OP RDE 0 % annum** Partners Research organisations in SMR, secondary schools

Area of changes: B - Excellence in research Strategic objective: B.1. - To improve the quality and problematic orientation of public research in SMR Specific objective B.1.2. - To improve material conditions for good quality research teams in SMR and to improve their attractiveness Project/Programme name*: e-IROI (e-Infrastructure Research and Operation Institute) Justification and project The project continues the more than 25 year old tradition of the Institute of description Computer Science MU (hereinafter ICT) which is a university institute combining research and development in the area of information technology and infrastructure, their operation and use (applications). The implementation of the project will significantly strengthen (but not only) research activities in the areas where ICT has been profiling itself in the past years, i.e. e-infrastructure, in-silico experimental environment 9 experimental facility, cyber security, systems for supporting collaboration, e-learning and related technology and application.

The implementation of the project will significantly strengthen the research potential and research teams in the following areas in particular: - Cyber security - related to the existing cooperation and national and international projects. Extraordinary social importance, protection of key infrastructure (not only Internet but gradual overlap with Smart Grids,

information systems etc.); - E-infrastructure as experimental facility - The basis is CERIT-SC centre which is part of the national e-infrastructure, a base for interdisciplinary cooperation with the wide spectrum of scientific areas. Providing in silico experimental facilities, research and development to the limits of the existing e-infrastructures, pushing the boundaries. Explicit cooperation with big research infrastructures (national and international, in particular in the travelling maps ESFRI or large OP R&DfI projects). Continuation and qualitative shift of the existing cooperation and interdisciplinary activities, significantly supporting involvement in national, and, in particular, international projects (Horizon, 2020), using and developing the experience and potential of the existing human resources (composition of the research team); - Collaborative environment and related technology - research in the area of net infrastructure, image processing technology, visualisation, mobile interface etc. - Information systems, proposal, analysis and modelling.

The project reflects the objectives updated by the National Research Development and Innovation Policy for 2009-2015, and related National Priorities for oriented research, experimental development and innovation, in particular in the following priority areas Competitive Knowledge Based Economy and Safe Society.

The project is directly linked to projects implemented in 2007 - 2013:  CERIT- SC – OP R&DfI – 3rd axis  Development of infrastructure for education and research at FI MU - OP R&DfI - 4th axis  CERIT SCIENCE PARK – OP EI  SITMU – OP EC  Czech Cybercrime Centre of Excellence C4E – ISEC (DG HOME)  Educating academic members of staff in the area of eInfrastructures - OP EC  IDSnaFI – OP EC Project objective: The objective/aim of the project is to significantly strengthen the position of the Institute of Computer Science MU and its transformation into an excellent research institution of international significance in the area of research, development and use of extensive e-infrastructures by creating relevant facilities, improving technical equipment and supporting the quantitative, and, in particular, qualitative growth of research teams in the institute. Project outputs (proof of - Strengthening and stabilisation of research teams in strategic meeting the objective) research directions (not only IT); involving foreign scientists (post doctorate programmes, visiting positions, ....), supporting involvement of PhD students; supporting interdisciplinarity (facilities, visiting positions for students and scientists from non-IT areas). - Strengthening and stabilisation of research teams in the areas of cyber security and cyber criminality, including a focus on safety of critical infrastructures, automatic detection of attacks and responses to attacks. - Strengthening interdisciplinary collaboration at the national and international level, involvement in ESFRI projects as partners for e- infrastructure (specifically e.g. ICOS, BBMRI, ELIXIR, or ELI and others); direct involvement in international e-infrastructure activities

(safety, data, clouds/HPC). - Creating first class facilities (construction, procurement and reconstruction). - Significantly strengthening the quality of technical equipment (computing and storage capacities) of the national e-infrastructure with a special emphasis on satisfying the needs of large national and ESFRI projects and ensuring sufficient capacities for long tail science (small scientific teams and individual scientists); strengthening simulation testbeds (ČEZ, KYPO, …). - Strengthening technical facilities in the area of visualisation, collaborative facilities, and systems of human and computer interaction. Strengthening simulation testbeds by adding human interaction aspects. Outcome (how will the - Strengthening the quality and excellence of research teams with a project contribute to special focus on interdisciplinary research. fulfilling specific - Finishing the infrastructure and concentration of resources for research objectives?) and its efficient management. - Strengthening international cooperation and internationalisation of research teams. Responsible for Organisation Person implementation Masaryk University, Institute of Prof. RNDr. Luděk Matyska, CSc. Computer Science Responsible for funding Organisation Person Masaryk University In accordance with internal standards of Masaryk University Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%) project 5 million TBC - preparation project 585 million OP RDE TBC implementati on operation 40 million OP RDE TBC per annum** Partneři CESNET, CzechGlobe, CEITEC, ELIXIR, NBU

Activity plan Implementation Responsibility Activity Description deadline (organisation) (from-to) 1 Creating facilities ICS MU 2015-2017 Improving technical equipment of the national e- 2 ICS MU 2015-2018 infrastructure Strengthening technical facilities in the area of 3 ICS MU 2015-2018 visualisation and collaborative environment Strengthening and stabilisation of research teams 4 ICS MU 2015-2018 in strategic research directions 5 Specific activities in the area of cyber security ICS MU 2015-2018 Strengthening interdisciplinary cooperation at 6 ICS MU 2015-2018 national and international levels

Area of changes: D – Top European education B - Excellence in research Strategic objective: D.4. To improve the quality and relevance of university education in the region B.1. To improve the quality and problem oriented public research in SMR Specific objective: D.4.2. To strengthen the quality and relevance of university fields of study B.1.1. To have sufficient talents for research in SMR Project/Programme name*: Masaryk University Comprehensive Simulation Centre (SIMU) Justification and project The project Masaryk University Comprehensive Simulation Centre (SIMU) aims description to create a simulation complex that will enable involvement of advanced features of simulation teaching and secure a competitive advantage to MU on the education market. MU graduates will also have an advantage on the job market thanks to the practical simulation lessons they attend during their programme curriculum. The simulation centre will target both postgraduate and undergraduate students, and it will also reflect the research of modern trends and simulations in learning. The process of continuous improvement will be guaranteed by the implementation of ISO 9001 into the management of simulation oriented education.

The simulation centre aims to work in close liaison with leading academic simulation centres in the world, commercial subjects developing aids for simulation education and with specialist companies.

When cooperating with specialist companies, emphasis will be put on negotiating that simulation lessons will be anchored in the pre-specialisation curriculum. Project objective: The project Masaryk University Comprehensive Simulation Centre aims to centralise education, development and research using simulation teaching aids at Masaryk University. Project outputs (proof of - Creating MU Comprehensive Simulation Centre meeting the objective) - Creation, implementation and evaluation in the curriculum: virtual scenarios, simulators, simulated scenarios - Anchoring SIMU lessons into individual subjects - Publication scientific outputs - Patents, utility models Outcome (how will the Creation of MU Comprehensive Simulation Centre dedicated for undergraduate project contribute to and postgraduate studies at MU. fulfilling specific Cooperation with non-academic subjects in the field of research and objectives?) development. Research and development in the field of applied simulation education. International academic cooperation in the field of simulation education. Implementation of innovations in undergraduate and postgraduate studies and preparation. Responsible for Organisation Person implementation Masaryk University MUDr. Petr Štourač, Ph.D. Responsible for funding Organisation Person Masaryk University In accordance with internal standards of Masaryk University Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%) project 50,00,000 CZK TBC TBC preparation project 1,200,000,000 CZK OP RDE TBC implementati on

operation 100,000,000 CZK OP RDE TBC per annum** Partneři Masaryk University project.

Consultants: - Nationwide – specialist clinical, paraclinical and preclinical medical fields; university departments (1. LF UK) - International – Khalaf Ahmad Al Habtoor Medical Simulation Center, Dubai, SAE; MedSimLinz, Linz, Austria; University of Chicago, Chicago, IL, USA; Schweizerisches Zentrum für medizinische Simulation, Simulation Basel "SimBa", Basel, Switzerland; InPASS, Tübingen, Federal Republic of Germany; St George’s University, London, UK; Simbionix Company, Tel Aviv, Israel; other companies involved in simulation education Activity plan Implementa tion Activity Description Responsibility (organisation) deadline (from-to) 01/2015- 1 Creating a basic organisational structure SIMU Masaryk University 12/2015 01/2015- 2 Preparing general methodology for simulation Masaryk University 12/2015 01/2015- 3 Identification of learning objectives Masaryk University 12/2015 01/2016- 4 SIMU construction and equipment Masaryk University 12/2017 01/2016- 5 Creation of simulation scenarios Masaryk University 12/2018 Incorporation of teaching scenarios into the 01/2018- 6 Masaryk University curriculum 12/2018 Analysis of the incorporation of simulation 01/2019- 7 Masaryk University scenarios into the curriculum 12/2019

Area of changes: B: Excellence in research Strategic objective: B.1. - To improve the quality and problem oriented public research in SMR Specific objective B. 1.2. To improve material conditions for good quality research teams in SMR and to improve their attractiveness Project/Programme name*: EURAXESS Czech Republic 2012 - 2015 Justification and project Supporting international cooperation with regards to the mobility of international description scientists and researchers is one of the preconditions of good quality research. Good quality support services, facilitating the arrival of researchers and scientists and their integration (support when dealing with formalities, social and cultural activities), are expected in most of the developed countries as a standard. If the services for incoming scientists are not of the quality required, top scientists will be less interested in pursuing their research career in Brno and the attractiveness of Brno will drop due to international competition. The project focuses on foreign scientists and researchers who come to work in SMR for various types of research organisations.

Project objective: To create a suitable environment for the mobility of scientists and researchers which will improve their comfort and increase the attractiveness of SMR for foreign researchers. Project outputs (proof of support provided to 100 scientists/year through individual consulting and support meeting the objective) Outcome (how will the Satisfied clients/users of Euraxess service in SMR (foreign researchers) Target project contribute to value: at least 75% of satisfied clients (level 1 or 2 on a 5 point scale) fulfilling specific objectives?) Responsible for JCMM implementation Responsible for funding MEYS

Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%) project preparation project implementati on operation 800 thousand MEYS (EUPRO 2) 0 % per annum** Partners Research organisations in SMR.

Area of changes: B: Excellence in research Strategic objective: B.1. - To improve the quality and problem oriented public research in SMR Specific objective B. 1.2. To improve material conditions for good quality research teams in SMR and to improve their attractiveness Project/Programme name*: SoMoPro III (South Moravian Programme for Distinguished Researchers III) Justification and project One of the long term objectives of the South Moravian Region is to become a description centre of scientific excellence. One of the cornerstones is a long-term presence of excellent scientists. SoMoPro III is a tool which, thanks to the prestigious grants of Marie Skłodowska-Curie Actions, creates attractive conditions for scientists to come and work in SMR. Project objective: The aim of the project is to bring top international scientists to the research institutions in the South Moravian Region, and as a result to support the development of science, research and competitiveness with relevance for key sectors in RIS SMR. Project outputs (proof of Arrival of 20 top scientists and implementation of their 1-3 year long scientific meeting the objective) projects in the South Moravian Region. Outcome (how will the SoMoPro Programme enables to gain top scientists from abroad who would not project contribute to be otherwise accessible without this financial support. In addition to the actual fulfilling specific implementation of scientific projects (increasing the prestige of scientific

objectives?) departments in the CR and abroad by, among others, good quality publications, patents, etc.), the quality of the departments improves (introducing new or innovative research methods, multidisciplinary approach, creating new professional links with offices abroad - English as the first language) and as a result, the competitiveness of SMR increases. Responsible for JCMM implementation Responsible for funding SMR

Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%) project preparation project 82 million CZK H2020 50 % implementati on operation per annum** Partners

Activity plan Implementati Activity Description Responsibility (organisation) on deadline (from - to) 1 Preparation of calls JCMM 2015 2 Call 1 JCMM 2015 3 Call 2 JCMM 2016 4 Project implementation JCMM 2016–2019

Area of changes: B - Excellence in research

Strategic objective: B.2. To maximise the economic benefit of public investment into R&D for the region Specific objective B.2.1. To strengthen cooperation between research organisations and the application sphere Project/Programme name*: Strengthening research cooperation with strong and complementary partners from the near surroundings (Olomouc, Zlín, Bratislava, Vienna), taking advantage of the programme of cross-border cooperation and inclusion in the Podunajská Strategy with regards to R&DfI. Justification and project description The project will result in strengthening international involvement of research organisations and companies from SMR and also increasing the focus of research organisations in SMR on problematic issues.

The project consists of organising annual networking events

(brokerage) in an attempt to link up partners from research organisations and companies, including partners from abroad (in particular the regions in the vicinity of our borders - Austria, Slovakia and others). By selecting suitable topics, focusing on problematic issues for individual events (brokerage, workshops) and linking them to relevant grant resources (calls in Horizon, 2020, Eureka, etc), the project can focus research in the research organisations on socially and economically relevant topics (including the liaison between companies and research organisations), and to increase the international links of companies and research organisations in SMR. Project objective: To increase involvement in international cooperation and to increase problem oriented research Project outputs (proof of meeting the Workshops/brokerage (1x a year); min. 50 participants, out of objective) which at least 15 from SMR and at least 50 % company participants. Evaluation of participant satisfaction (at least 75 % participants should evaluate as above average) Outcome (how will the project contribute Number of partnership links made at individual events to fulfilling specific objectives?) (questionnaires/surveys after the events). Responsible for implementation JIC

Responsible for funding SMR and EC (EEN network)

Volume Expected national Level of co- (CZK) funding sources financing (%) Budget project preparation ------(estimate)

project Average n/a -- implementation 60,000 CZK/year (CZK 40,000 if in Vienna, CZK 80,000 if in Brno) operation per No annum/or operating management costs are costs for the envisaged scheme Partners Universities and research institutions in SMR (or their grant staff), or in other Czech regions (Olomouc, or others - Ostrava, Zlín, Prague, České Budějovice); foreign partners (WWTF Vienna, FFG Vienna, Adssen

Bratislava, BIC Bratislava, CATT Linz)

Activity plan

Implementatio Cost Responsibility Activity Description n deadline (organisation) (from-to) 1 Workshop and brokerage Brno JIC 10/2014 2 Workshop and brokerage Vienna WWTF 2015 3 Workshop and brokerage Brno JIC 2016 4 Workshop and brokerage Vienna WWTF 2017

Area of changes: B - Excellence in research

Strategic objective: B .2.: To maximise the economic benefit of public investment into R&D for the region Specific objective B.2.2. To increase the commercial use of R&D results and the knowledge of research organisations Project/Programme name*: Regional proof of concept fund Justification and project description Nowadays, there are only limited resources (financial, and in particular consultancy) for selecting and "completing" research results which can have a real chance to be commercialised (i.e. the results are at a stage when a partner can be approached/found who would buy the respective technology, licence or set up a new company). In addition to funds, a specialised selection mechanism must be provided that will select promising technology and ensure ongoing consultancy (coaching) for selected projects. By setting up a mechanism that will respond to the issue stated above, we will increase the benefits of public funds invested into R&D in SMR and CR. The existing patterns are time limited and they are linked to individual research organisations. Should these activities become more professional and should a critical mass of suitable plans be reached, it is essential to interlink research organisations in the region as much as possible (or from adjacent regions, should they be interested). Project objective: To increase the number of commercially successful transfers of technology from research organisations in SMR Project outputs (proof of meeting the Programme manual including sample contracts objective) Signed contracts with the providers of funds Internet presentation, promotional materials, PR outputs Supported projects, licence agreements, spin-off companies Outcome (how will the project contribute Creating financial - consultancy scheme, enabling support of to fulfilling specific objectives?) promising technology/research results (with high commercial potential) with the aim to transfer technology (licence, spin-off). The scheme will finance the work of a research team, essential

consultancy and external services necessary for successful commercialisation of technology for 1 year maximum. The emphasis will be put on fast and independent decision- making mechanisms, staging of projects, and funding on the basis of compliance with the technology and commercial milestones determined. Responsible for implementation Universities in SMR (joint project), and other research organisations in the region. Possible partnership in JIC. Responsible for funding SMR (smart accelerator), or OP RDE (preparatory phase), OP RDE and university budgets. Volume Expected Level of co- (CZK) national financing (%) funding sources Budget project preparation Preparation of OP RDE (estimate) mechanism (6 (smart ČM) 300 accelerator) thousand CZK Legal studies 150 thousand CZK Promotional materials 100 thousand CZK In total 450 thousand CZK project Pilot project – OP RDE implementation 10 projects x 1 M = 10 million CZK Implementatio n - remuneratio n for evaluators (external evaluators 3 x 30 thousand CZK) = 90 thousand CZK - implementati

on (12 ČM = 600 thousand CZK) - coaching (external specialists 50 x 30 thousand CZK = 1.5 million CZK) - marketing (100 thousand CZK) In total 11,690 thousand CZK operation per 10 million Individual annum/or CZK/year universities/res management earch costs for the organisations, scheme or Gama national programme (TA CR) Partners Universities and research institutes in SMR, or Activity plan

Implementatio Cost Responsibility Activity Description n deadline (organisation) (from-to) 1 Preparation of the financial scheme Universities 12/2015 Setting up selection mechanisms 2 and other related decision-making Universities 12/2015 procedures Marketing activities - PR activities, promotional materials, informative 3 meetings with the representatives of Universities 2016 research organisations, etc.

Implementation of individual grant 4 Reg. POC fund 2016 projects

Area of changes: Competitive innovative companies Strategic objective: 1 To support growth of knowledge-intensive companies in SMR Specific objective 1.2 To strengthen the competitive position of small and medium sized enterprises from SMR Project/Programme name*: Brno creative centre - support centre for the creative industries Justification and project A reasonable quality of the creative industries represents an important part of description ecosystems of the developed, knowledge-based economies. Industries such as design and art create a beneficial and attractive environment and also provide important support services for key economic sectors. A developed "creative" environment helps to keep talented people in the region and contributes to the competitiveness of companies. Investments into cultural and creative industries (CCI) have a major impact on intelligent and permanently sustainable regional development.

For these reasons, a creative centre project was prepared in RIS SMR in order to ensure a systematic support/development of the creative industries and to strengthen their link to key industrial sectors in SMR. A feasibility study of the Creative Centre has been currently completed which describes in detail the possibilities of operating the Creative Centre in the former penitentiary, Brno Cejl.

The analysis of the creative industries (part of the feasibility study of the Creative Centre) in the South Moravia Region and Brno showed, among others, that there is promising potential for creative industries (10 thousand students 16,500 entities, 20 thousand employees) and that it is feasible to build a creative centre in the building of the former penitentiary. 33

Brno Creative Centre will provide comprehensive facilities for the development of creative fields in the region, among others, by ensuring the following functions - an incubator for starting entrepreneurs in creative industries, studios for rent, test rooms, workshops, residence premises, fablap, regional film office, cineport and other suitable functions.

The project will also cover investment into the conversion of the Penitentiary for the needs of the Creative Centre, and the operation set-up. Based on the outputs of the feasibility study it can be expected that the centre will open in 2019. Since this date is still far away, it is envisaged that some of the services for the creative industries will be offered before launching the full operation of the centre (e.g. creative credits). Project objective: The implementation of the project will provide support to new entrepreneurs in the creative industries, attract new investors connected to creative industries and it might help to prevent outflow of talented people out of Brno. The project will help to liven up a neglected part of the city and make it more attractive.

33 The feasibility study of the Creative Centre is financed from the SCB budget and it will be used for decision making of SCB bodies with regards to further project procedures.

Project outputs (proof of Implemented conversion of the Penitentiary for the purposes of the centre meeting the objective) Launch of the Centre Number of users of the Creative Centre and its services Measurable gentrification changes in the location Outcome (how will the The Creative Centre will help to strengthen the competitive position of the project contribute to companies, it will help to build up specific know-how and educate specialists in fulfilling specific the respective field. objectives?) The creative centre will suitably support the image of the town/region.

Responsible for SCB implementation Responsible for funding OP EIC, SCB and other SF

Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%) project 10 million SCB preparation project 400 million OP EIC, Prosperity, PPP implementati (private investor), contents on and functions of KC – Horizon 2020, Crossborder cooperation CZ-AT, Creative Europe34 operation 15 – 20 million Own resources generated per annum** through the operation of the centre/contributions for services in the public interest Partners SMR, universities, contributory organisations, companies, NNO

Activity plan Implementa tion Activity Description Responsibility (organisation) deadline (from - to) until 1 Feasibility study JIC 06/2014 2 Securing financing, project documentation 2015-2016 3 Architectural design, zoning plan, building permit 2015-2016 4 Reconstruction 2017-2019 5 Operation from 2019

34 Elaborated in detail as part of the feasibility study grant scan.

Area of changes: C: Competitive innovative companies Strategic objective: C.1. To create suitable conditions for innovation driven by the growth of "mature" knowledge-intensive companies 35in SMR Specific objective C.1.3. To attract to SMR talents36 and investors (domestic and international) Project/Programme name*: Brno Expat Centre Justification and project The presence of highly qualified foreigners helps to increase the description competitiveness and attractiveness of the City of Brno for international companies. Their number has significantly increased in Brno in the last years, and, therefore, it is also necessary to take care of the foreigners working in the city and their families as it is customary, abroad. The project pays special attention to knowledge intensive companies and companies with high representation of foreigners. Project objective: BEC aims to support expats, i.e. highly qualified foreigners who work, or intend to work in Brno. Project outputs (proof of 300 supported clients/year through individual consulting and support meeting the objective) 450 resolved requests/year through individual consulting and support Outcome (how will the Client/service user satisfaction of more than 75% project contribute to Satisfaction of companies/employers (investors with R&D activities) supported fulfilling specific by an official letter. objectives?) Responsible for Brnopolis o.s. implementation Responsible for funding Statutory City of Brno

Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%) project preparation project implementati on operation 1 666,- CZK 0 % per annum** Partners Red Hat, Honeywell, CTP, GTS Lufthansa, Tektronix, Infosys, Centre for foreigners Brno

35 For the purpose of RIS SMR, a knowledge-intensive company is defined as follows: i) a company owning its own technology/expert knowledge which significantly contributes to the turnover of the company (binary criterion); ii) a company with own R&D expenditure of at least 10 million CZK (for companies with up to 49 employees, 5 million CZK is sufficient, iii) a company with at least 10 employees, iv) a company which is more than 3 years old. 36 Talents refer to potential company employees.

enterprises from SMR Project/Programme name*: Design and creative credits Justification and project The competitiveness of mature or startup companies cannot do without the description services and products of creative industries (product, industry, graphic design, architecture, video, gamification and others - arts and crafts etc.). And yet companies in the CR do not use the potential of professionals from the creative industries sufficiently, and they often underestimate their potential.

A proven form of cooperation between the creative industries and the industrial sector abroad is cooperation based on creative credits.37 These creative credits support small and medium-sized companies enabling them contact and procurement of services from partners from the creative industries with the aim to increase the competitiveness of company services and products.

When implementing Creative Credits it is possible to take advantage of the tried and tested processes for Innovation Vouchers. Similarly to innovation vouchers, there would be a voucher applicant (company), product/service/change supplier (creative profession), intermediary (JIC) and donor (SCB) and the service would require co-financing from a company partner.

Project objective: To increase the innovation potential and competitiveness of small and medium sized companies from SMR

Project outputs (proof of Creative credits meeting the objective) a. Number of applicants (100/year) b. Number of supported projects (40/year)

Outcome (how will the Strengthening the competitive position of companies (evaluation of impacts). project contribute to fulfilling specific objectives?) Responsible for JIC implementation Responsible for funding SCB

Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%) project 500,000 SCB preparation project 4,000,000 SCB implementati on operation per annum**

37 Creative Credits is a tried and tested model known for example in Great Britain, Ireland, the Netherlands, and Scandinavia. This concept is not known in Central Europe and this could become a unique project in this area.

Partners Creative Brno, Institute of Arts CR, NESTA, CzechDesign, CzechInvest, CzechTrade

Area of changes: Competitive innovative companies

Strategic objective: 1 To support growth of knowledge-intensive companies in SMR

Specific objective 1.1 To increase the number of companies and to support the growth of companies able to push technological boundaries in their fields Project/Programme name*: Knowledge Transfer Partnership international (KTPi) Project objective: The main aim is transfer specific know-how from top academic workplaces and to strengthen the competitive position of best companies (innovation leaders) in SMR.

Justification and project description The companies, pushing technological boundaries in their fields, compete globally for, among others, the latest findings and top talent. World-class R&D departments, which have the latest know/how and specialists in the respective areas, represent suitable partners for increasing the competitive position of these companies. Knowledge Transfer Partnership international (KTPi) is a tool which will enable transfer of know-how from R&D departments into companies in SMR.

KTPi is an international mobility scheme financing long-term (1–1.5 year) internships of specially promising PhD students from abroad in SMR companies who are actively supported by tutors from parent research organisations. The aim is to transfer specific know-how from research organisations into companies, to verify the know-how in practice and to master it within the company. For top companies in SMR38 the programme will enable an opportunity to acquire specific know-how and to create an active liaison with a selected academic department which handles the know-how and develops it further. Companies can acquire excellent specialists for their teams. KTPi programme supports projects with clear links to the competitive position of the companies and a well thought out project. UP to 10 KTPi projects will be supported every year.

Project outputs (proof of meeting the To introduce and fully develop KTPi programme objective) a. To create and test KTPi process in SMR conditions b. To create an executive implementation team to ensure good quality services c. To ensure a sufficient demand for the programme, to

38There are up to 50 companies in SMR who comply with the characteristics of the developed companies, they are mostly leading companies in their industries.

implement the planned number of transfers (5-10 projects/year) d. To evaluate the impact of the programme

Outcome (how will the project KTP programme will enable introduction of advanced procedures and contribute to fulfilling specific knowledge into companies in SMR and it will support their long-term objectives?) market position. Responsible for implementation JIC

Responsible for funding SMR/SCB/SF 2014 – 2020 (OP EIC, Prosperity programme)

Expected national Level of co- Volume (CZK) funding sources financing (%) Budget project 0.5 FTE/6 months OP EIC 25% (estimate) preparation project 1 FTE internal JIC OP EIC 25% implementation 20,000,000 (supporting 10 transfers with a budget of 2 mil CZK/transfer) including service marketing operation per N/A N/A N/A annum/or management costs for the scheme Partners:

Area of changes: Competitive innovative companies

Strategic objective: 3. To increase the number of people starting their own business for the first time Specific objective 3.2 To increase the number of secondary school and university graduates who start their own business Project/Programme name*: Fabrication Laboratory (FabLab) Project objective: To support interest in starting business in the technical sector by enabling an easy access to modern prototype technology.

Justification and project description It is a highly risky thing to start one´s own business, in particular in the technical sector. And yet, the development of enterprise in these "difficult" sectors, defined by S3 priorities, is the core of the regional innovation strategy. It is proven that technology companies have more

intensive links with local resources (universities, technology facilities, local know-how) than, for example, service companies and show a lower tendency to leave the region and cause redundancies.

High entry costs (technology equipment, preparation of prototypes, material, etc.) and the related high risk of thwarted investment represent some of the barriers preventing from entering the market in these sectors. Fabrication Laboratory (abbreviated FabLab) is a tried and tested tool decreasing the above mentioned risks, motivating interest in the technology sector and enterprise.

FabLab is an equipped digital prototype workshop, accessible to the wider public, students and companies. The preparation and implementation of FabLab requires suitable premises; vicinity to universities is welcome such as a good access for the wider public (municipal transport connections). Some of the typical equipment includes basic machining technology, 3D printers, equipment for electrical workshops, necessary software and other similar equipment. The area necessary to build a FabLab is 150m2 minimum. Personnel must be recruited to ensure a successful start - 1,5 - 2 full time staff are recommended for the following positions: manager, technical expert (FabLab Guru), technical support. Project outputs (proof of meeting the To launch FabLab in Brno objective) a. To create a suitable concept for FabLab in Brno/SMR b. To get funding c. To ensure sufficient demand (min. 500 "subscribers") d. To launch operation

Outcome (how will the project FabLab supports interest and enables access to technologically contribute to fulfilling specific demanding fields of enterprise. objectives?) Responsible for implementation JIC

Responsible for funding SMR/SCB/SF 2014 – 2020 (Central Europe Programme, Prosperity Programme) Expected national Level of co- Volume (CZK) funding sources financing (%) Budget project 0.5 FTE OP RDE, Central (estimate) preparation Europe Programme, OP AT-CZ project Investment into OP RDE, Central implementation equipment up to Europe Programme, 5,000,000 OP AT-CZ operation per Up to 5,000,000 SMR, SCB annum/or all operating costs management including personnel costs for the scheme

Partners: U, SS

Area of changes: Competitive innovative companies

Strategic objective: 1 To support growth of knowledge-intensive companies in SMR

Specific objective 1.2 To strengthen the competitive position of small and medium- sized enterprises from SMR Project/Programme name*: Innovation vouchers Project objective: To enable companies from SMR to access know-how and create contacts with the research sphere. Justification and project description The access to the latest know-how is an important feature of company competitiveness. Research organisations with sufficient equipment and human resources represent one of the resources of knowledge. In the last programming period, research organisations were significantly strengthened, having acquired new equipment, and they are now being developed even further. However, despite the extensive investment, the ability of companies to cooperate with research organisations, is still insufficient.

In the last years, innovation vouchers proved to be an efficient tool, decreasing the barrier between the cooperation of companies and research organisations. Vouchers enabled to verify the potential of cooperation in smaller projects based on specific company needs and to subsequently continue cooperation on more demanding topics.

During the implementation of vouchers (since 2009) 1134 voucher applications were made, out of which 269 projects were supported and further 100 projects, which did not get funding, were implemented (the projects were fully financed by the companies). The evaluation from 2013 showed the efficiency of this intervention when one crown invested from the public funds will bring in up to five crowns in the follow up investment over a long-time horizon. Also, for these reasons, it is advisable to keep supporting cooperation of companies and research organisations through innovation vouchers.

Project outputs (proof of meeting the Innovation vouchers (RIS) objective) a. Number of applicants (200/year) b. Number of supported projects (40/year)

Outcome (how will the project Strengthening the competitive position of companies (evaluation of contribute to fulfilling specific impacts of the liaison made with research organisations). objectives?) Responsible for implementation JIC

Responsible for funding SCB

Expected national Level of co- Volume (CZK) funding sources financing (%) Budget project N/A N/A N/A (estimate) preparation project 4,000,000/year SCB implementation 0.5 FTE JIC

operation per N/A N/A N/A annum/or management costs for the scheme Partners:

Area of changes: Competitive innovative companies

Strategic objective: 1 To support growth of knowledge-intensive companies in SMR

Specific objective 1.1 To increase the number of companies and to support the growth of companies able to push technological boundaries in their fields

Project/Programme name*: Competence Centres in key sectors in SMR Project objective: To strengthen the R&D base in key sectors in SMR through setting up suitable competence (R&D) centres and an intensive participation of the corporate sphere.

Justification and project description An access to the latest know-how and good quality people is extremely important for company competitiveness. In the past years investment from OP R&DfI programme enabled to intensify R&D facilities in the Czech Republic (in particular, at universities). 17 billion CZK was invested into strengthening equipment and personnel capacities. Despite this investment, it is still difficult for the corporate sphere to start functional cooperation with research centres. The main reasons stated by the companies are as follows: - Unsuitably set up processes of cooperation/unclear partners, their skills, result guarantees/ - Too many priorities for academic staff (teaching, publications, cooperation with companies is not a priority) - Different perception of time needs

The above stated shortcomings can be resolved by setting up specialised competency centres established in order to provide R&D

services to companies. These flexible organisations can eliminate the above stated shortcomings of research organisations under good management, and they can also become suitable partners for university research centres.

A pilot competence centre for manufacturing engineering technology was opened in Kuřim in 2013. The centre, named INTEMAC, aims to support competitiveness in the field of engineering technology by providing expert know-how and educating specialists. On the basis of the current experience with the operation of the centre, the corporate partners agree that the centre is set up correctly which eliminates many problems with direct cooperation with universities.

The model of the INTEMAC centre can be replicated into other sectors in SMR providing that: - There is demonstrable demand from key companies in the respective sector - Companies are willing to participate in the preparation of the competence centre and to cover parts of the cost (in-kind contribution) - University R&D centres will be actively involved in the preparation

If the above stated preconditions are complied with, it is possible to support creation of other competence centres in the priority sectors in SMR (e.g. cyber security) - the specific number will depend on demand and financial possibilities of the investors. Competence centres that are in compliance with the priorities of S3 regional strategy.

Project outputs (proof of meeting the Launch of operation of the competence centres in key sectors in SMR objective) a. To define the focus of the sector and to map out demand for CC b. To ensure active participation of key companies, c. To invest into the infrastructure (the investment does not have to be a construction of a new building but also equipment, instruments and related operating cost) d. To set up a suitable operating model

Outcome (how will the project Competence centres will help to strengthen the competitive position of contribute to fulfilling specific the companies, it will help to build up specific know-how and educate objectives?) specialists in the respective field. Responsible for implementation JIC/SMR/companies

Responsible for funding SMR/SCB/SF 2014 – 2020 (OP EIC, Prosperity programme)

Expected national Level of co- Volume (CZK) funding sources financing (%) Budget project 1 FFTE OP EIC 25% (estimate) preparation (JIC/companies/SMR/ (cost/CC) for approximately 2 let

project 20 – 100 million CZK OP EIC 25% implementation (related to the focus of individual sectors) operation per Year 1 – 5 FTE SMR/companies/OP annum/or Year 2 – 10 FTE EIC management Year 3 – 15 FTE costs for the (overall, it will depend scheme on the selected sector and targets of the centre; personnel cost will amount to approximately 60% of the operating costs of the centre) Partners:

Area of changes: Competitive innovative companies

Strategic objective: 1 To support growth of knowledge-intensive companies in SMR

Specific objective 1.2 To strengthen the competitive position of small and medium- sized enterprises from SMR Project/Programme name*: Knowledge Transfer Partnership Project objective: The main objective is to use transfer of know-how from the academic environment and to strengthen the competitiveness of small and medium-sized knowledge-intensive companies in SMR.

Justification and project description One of the barriers of development of SME in SMR might be the absence of specific know-how essential for the innovation of products, processes and other key corporate areas. Relevant know- how might be available in academia, in particular, at universities.

Program Knowledge Transfer Partnership (KTP) enables the transfer of knowledge from the academic arena to the corporate sector through long-term internships (1-1.5 years) of advanced students (Ing. or PhD.) that will be professionally supervised by an experienced academic member of staff. The role of the student (transfer assistant) is to transfer and test the know-how in the

company, and to train a necessary number of internal members of staff so that the company can use the knowledge independently in the future. The program is beneficial for companies (new knowledge), for students (implementation of own projects in a company environment) and universities (they acquire a corporate partner and apply their know-how in practice). The entire system is coordinated by a project manager who supervises implementation of the approved project (financial aspects, project procedure, etc.).

The KTP programme has been successfully running in Great Britain for 30 years and it has spread into other countries as well.

Project outputs (proof of meeting the To introduce and fully develop KTP programme in SMR objective) a. To create and test KTP process in SMR conditions b. To create an executive implementation team to ensure good quality services c. To ensure a sufficient demand for the programme, to implement the planned number of transfers (15-20 supported projects/year) d. To evaluate the impact of the programme

Outcome (how will the project KTP programme will enable to introduce new procedures and contribute to fulfilling specific knowledge into SME practice in the region which will help to improve objectives?) their competitive position. As a side effect, the companies will acquire good quality members of staff (if students prove themselves and a job agreement is made) and form closer liaison with universities. Responsible for implementation JIC

Responsible for funding SMR/SCB/SF 2014 – 2020 (OP EIC)

Expected national Level of co- Volume (CZK) funding sources financing (%) Budget project 0.1 million CZK JIC/SMR (estimate) preparation 0.2 FTE project N/A implementation operation per 2 FTE internal JIC OP EIC, Prosperity 25 % annum/or 20 million CZK management (supporting 15-20 costs for the transfers/year with a scheme budget of 1–1.5 million CZK/project) including service marketing Partners:

Area of changes: Competitive innovative companies

Strategic objective: 1 To support growth of knowledge-intensive companies in SMR

Specific objective 1.2 To strengthen the competitive position of small and medium- sized enterprises from SMR Project/Programme name*: Summer schools Project objective: To address talented students, to equip them with fundamental knowledge of specific specialisations and to practically verify the possibility to implement projects in companies. For company partners, this is an efficient tool for selecting talented and motivated employees. Justification and project description A shortage of well prepared graduates (not only of technical subjects) is a commonly cited barrier to the growth of the companies in SRM (a major barrier, in particular, for companies outside Brno). Quite understandably, good quality graduates are attracted by large companies (Honeywell, ČEZ, Škoda Auto etc.), often outside the South Moravian Region. Furthermore, the demand of these companies increases the standard of starting conditions for graduates, which many smaller companies cannot compete with. The availability of suitably educated graduates is becoming a serious problem which, with regards to the development of the population curve, will increase even further.

One of the ways of how to bring talented students to small and medium-sized businesses in SMR is to organise summer schools. The summer schools offer specialised lessons for students, focusing on some of the important skills essential for their prospective employment (e.g. marketing, processes, logistics, etc.). The students, under the tutelage of experienced specialists, acquire theoretical basis of their specialisation that can be put into practice when implementing their projects in cooperating companies. The students acquire practical knowledge, the companies can test potential employees and, if interested, offer them a job. It is expected that summer schools would last 3 weeks (one week of theory, 2 weeks of practical projects), there would be 10 - 15 students involved and approximately 5 - 10 companies.

Project outputs (proof of meeting the To set up and implement a system of summer schools objective) a. To verify interest of corporate partners and students; b. To prepare and pilot test the summer school concept; c. To launch summer schools in other specialisations (implementing 2-3 summer schools/year)/20-30 students involved

Outcome (how will the project Summer schools will enable a better access to graduates for

contribute to fulfilling specific companies in SMR and they will keep talented students in the region. objectives?) Responsible for implementation JIC/universities

Responsible for funding SMR/SCB/SF 2014 – 2020 (OP EIC)

Expected national Level of co- Volume (CZK) funding sources financing (%) Budget project 0.3 FTE/year JIC (estimate) preparation project 0.3 FTE OP RDE/ OP EIC 0 – 25 % implementation 200,000/summer schools/cost of premises/travel expenses and remuneration for lecturers/ operation per N/A annum/or management costs for the scheme Partners: U, SS

Area of changes: Competitive innovative companies

Strategic objective: 1 To support growth of knowledge-intensive companies in SMR

Specific objective 1.1 To increase the number of companies and to support the growth of companies able to push technological boundaries in their fields Project/Programme name*: Mobility Project objective: The objective is to create internal R&D capacity for the best companies in SMR (companies pushing technology boundaries).

Justification and project description The best companies in SMR face fierce global competition. One of the ways how to support their growth, and for companies with foreign owners also their position within the corporate structure, might be the creation of teams (in this regard R&D teams) with unique expertise which is key for the company. To build similar competencies is a complex, long-term process requiring significant investment, and in particular finding suitable employees.

This process might be supported by regional innovation strategies if a suitable mobility scheme is set up which will support the arrival of

excellent academic staff into companies in SMR for a sufficient period of time in order to create a team which would develop respective topics in the companies on a long-term basis.

The proposed scheme will enable a long-term (2-3 years) stay of academics in companies and setting up a group of employees who will be able to develop the respective theme further. The salaries and essential related technical/material facilities for "transferred" academics will be subsidised. When selecting projects, emphasis will be put on excellence of the respective academics and on the significance of the built competencies for the future competitive position of the companies. Up to 5 projects/year will be supported. Project outputs (proof of meeting the Set up/launched mobility scheme objective) a. Set up scheme/legal provisions, marketing, financial provisions etc./ b. Pilot run - /2-3 supported projects/ c. Full operation of the scheme - up to 15 supported projects Outcome (how will the project Creating relevant competencies in the companies, company growth. contribute to fulfilling specific objectives?) Responsible for implementation JIC

Responsible for funding SMR/SF

Expected national Level of co- Volume (CZK) funding sources financing (%) Budget project 500,000. (estimate) preparation 0.5 FTE/year project 0.5 FTE implementation 25 million CZK/year (5 supported projects, 5 million/project)

operation per N/A annum/or management costs for the scheme Partners: companies

Area of changes: Competitive innovative companies

Strategic objective 1 To support growth of knowledge-intensive companies in SMR

Specific objective 1.2 To strengthen the competitive position of small and medium sized enterprises from SMR Project/Programme name*: JIC|Platinn Project objective: The main objective is to use expert coaching services and to increase innovativeness and competitiveness of small and medium sized knowledge-intensive companies in SMR.

Justification and project description For small and medium-sized companies it is increasingly difficult to find their way in the interconnected and technology demanding environment. SME often do not have adequate internal capacities to evaluate external environment (markets, technology etc.) which increases the probability of bad business decisions. The complexity of the environment also decreases the ability to evaluate risks and the willingness of the SME management to undergo significant risks. Special expertise, which SME cannot maintain internally, does exist on the market, however, the market shows many failures: - The providers of special expertise prefer large companies (which know what they want and the value of the service - they can pay) - SME managers often do not know what the market can offer and what exactly they should want - Due to this ignorance they are not able to evaluate the price of the special expertise service and they view it as unreasonably high. - SME managers are actively approached by consultancy companies whose quality is not good enough to succeed with large companies. Their experience with the poor quality services increases the impact of the two previously made points. Platinn service addresses the market failures stated above. SME owners and top managers with a registered office, or branch in SMR, will be offered professional expert support targeting key opportunities of growth in their companies. As part of the Platinn service the company will get (i) an initial analysis identifying opportunities for growth, (ii) free 40 hours of a coach working on development projects based on the identified opportunities for growth and (iii) 50% towards another 80 hours of a coach working on other, detailed preparation of growth projects. Selecting and addressing suitable SMEs, creating and developing coach networks, service marketing, ensuring funds, monitoring and evaluation of results will form essential parts of the programme.

Project outputs (proof of meeting the To introduce and fully develop Platinn service objective) a. To create a portfolio of senior experts for coach positions b. To build a suitable process for provision of services c. To prepare and implement a communication strategy d. To ensure sufficient demand for services (30 - 40

SMEs/year) e. To create an executive implementation team to ensure good quality services Outcome (how will the project In the short term the Platinn Programme should show results in the contribute to fulfilling specific implementation of specific projects/measures in the companies objectives?) involved, and, in the long term horizon, in the competitiveness of companies (growth in revenue or decreasing cost). Responsible for implementation JIC

Responsible for funding SMR/SCB/SF 2014 – 2020 (OP EIC, Prosperity programme)

Expected national Level of co- Volume (CZK) funding sources financing (%) Budget project N/A N/A N/A (estimate) preparation project N/A N/A N/A implementation operation per 2 FTE internal JIC OP EIC, Prosperity 25% annum/or 2-3 million CZK - management coach salaries costs for the 0.3 - 0.5 million CZK - scheme overheads including service marketing Partners:

Area of changes: Competitive innovative companies

Strategic objective: 2. To increase the number of new companies with aspirations and the potential to have a dominant position on the market Specific objective 2.1 To increase the quality and relevance of services (and background facilities) for incubation programmes in SMR Project/Programme name*: Seed Fund Project objective: The objective is to support intensive growth of SMEs (in particular, startup companies) in SMR. Companies will be supported through investments from the seed fund and related expert advisory services.

Justification and project description The existence of a hard-to-overcome financial vacuum, which the innovative SMEs are faced with, is evident across the EU and also outside the EU borders. The vacuum creates the current set up of the market where private funding from business angels or venture capital (BA, VC) is available to companies who have developed their business to a certain extent. On the other hand, in the CR, the only drastically scarce sources for starting and developing innovative SMEs early is own finance or FF funds (friends, family and fools)

This situation can be resolved through interventions using public resources - financing registered capital of the company within an extent which will enable the company to develop and seriously apply for resources which are sufficiently represented even on the current market - private investors (BA, VC).

In connection with current legislation, a joint stock company will be set up to implement projects with variable capital (SICAV) that will combine public and private sources and that will invest into promising companies from SMR; in connection with the investments, companies will be provided with expert advisory services, making optimum use of the investments for company growth.

Project outputs (proof of meeting the Set up/launched mobility scheme objective) a. To create rules for the Fund supporting innovative businesses, the rules would enable using public sources and consequently combine the public and private sources b. To replenish the fund with finance c. To create an investment board for the fund including experienced investors and businessmen d. To provide investment to companies on a regular basis Outcome (how will the project To contribute to a more intensive growth of companies. contribute to fulfilling specific objectives?) Responsible for implementation JIC

Responsible for funding SMR/private sources

Expected national Level of co- Volume (CZK) funding sources financing (%) Budget project 0.5 FTE/year (estimate) preparation 500,000 project 50-100 million CZK SMR 50% implementation 2-3 FTE

operation per N/A annum/or management costs for the scheme Partners: private investors

Area of changes: Competitive innovative companies

Strategic objective: C 3 To increase the number of people starting their own business for the first time Specific objective C 3.3 To increase the number of secondary school and university graduates who start their own business Project name: Support and development of business enterprise in non-metropolitan regions in SMR Justification and project To create a network of business centres in peripheral regions in SMR. description The role of the project is to support entrepreneurship, focusing mainly on the development and sustainment of craft professions and services.

The project aims to establish and secure business centres in cooperation with the local government. The support will be implemented through advisory services provided to companies, small entrepreneurs and sole traders (business/marketing plan, law, accountancy, financial management, development of companies using suitable subsidy titles, product and service innovation).

Special education and coaching in the areas of innovative thinking, business acumen, financial management, marketing, law etc. will be supported. Business centres will cooperate with regional educational institutions in order to involve students in working experience.

Business centres will develop other support activities, such as co- working activities, experience sharing, networking and contact meetings (such as business meetings, workshops, PR activities etc.). Project objectives: The main objective of the project is to support businesses in non- metropolitan locations in SMR. Project outputs (proof  Number of users of the business centres and their services of meeting the  Development of businesses and entrepreneurship objective)  Number of students with working experience entering the job market  Number of graduates starting their business Outcome (how will the  Increasing employment in the endangered SMR regions, project contribute to fulfilling specific objectives?) Responsible for Organisation Regional Chamber of Commerce implementation (RCC) SM

Responsible for funding Organisation OP EIC

Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%)

project 1 million CZK SMR/RCC SM preparatio n project 20 – 30 million CZK OP EIC implement ation operation 8 million CZK OP EIC, towns by providing per premises annum** Partners SMR, selected towns, District Chambers of Commerce, other entities

Area of changes: Competitive innovative companies Strategic objective: C 3. To increase the number of people starting their own business for the first time Specific objective C 3.2. To increase the number of secondary school and university graduates who start their own business Project name: Popularisation of entrepreneurship and information on innovation for secondary school and university students Justification and project Popularisation of entrepreneurship and development of innovative description thinking of students of secondary schools and universities Motivating students to become interested, already when at school, in the possibility of starting their own business with an emphasis on innovative and new creative procedures.

Special education in the areas of innovative and creative thinking, and mastering knowledge associated with innovation (creating innovation, innovation management, financing innovation, marketing and market application of innovations, etc.).

Promotion and awareness raising will have several forms. For example, specialised workshops (presentations of local innovative companies and their success stories), networking and contact meetings (exchange of experience) or through various entertainment competitions and games. The purpose is to promote services of entities supporting innovative infrastructure in SMR.

The project will also involve communication with the target group using modern communication channels and other PR activities (attractive website, emphasis on using social networks, entertainment, etc.). Project objectives: Popularisation of entrepreneurship and development of innovative thinking of students of secondary schools and universities Project outputs (proof  Number of secondary school and university students in SMR

of meeting the who show interest in business objective)  Number of secondary school and university students starting their own business Outcome (how will the The project will make business more popular with the secondary school project contribute to and university school students and it will show them an alternative for fulfilling specific their future career. The number of graduates who will start their own objectives?) businesses will increase. Responsible for Organisation Regional Chamber of Commerce implementation (RCC) SM

Responsible for funding Organisation SF/SMR

Budget Volume (CZK) Expected national funding Level of co- (estimate) sources financing (%) project 0.5 million CZK RCC SM preparatio n project 15 million CZK SF EU implement ation operation per annum Partners SMR, SCB, PS, SS, U, other entities

Area of changes: Competitive innovative companies

Strategic objective 2. To increase the number of new companies with aspirations and the potential to have a dominant position on the market 3. To increase the number of people starting their own business for the first time

Specific objective 2.1 To increase the quality and relevance of services (and background facilities) for incubation and acceleration programmes in SMR 3.2 To increase the number of secondary school and university graduates who start their own business A 3.3 To increase the number of starting entrepreneurs recruited from mature companies Project/Programme name*: Incubation and acceleration programme JIC (StarCube, Innovation Park) Project objective: To increase the number of viable companies set up in SMR. Justification and project description The number of companies who try to compete thanks to advanced

technology does not reach the potential of SMR. Capable people are put off by their lack of business competencies and a difficult access to qualified mentors, seed and startup capital. As a result there is a strong tendency to be employed although an individual might have an idea for an interesting technology startup.

The incubation and acceleration programmes introduced by JIC respond to the following issues: i) An incubation programme focuses on the verification of business ideas and primary education of first-time businessmen. The clients are mostly technology oriented projects with an ambition to start a company and to succeed on international markets in the long run. ii) An acceleration programme focuses on the development of verified ideas and company growth. It follows the incubation programme. The clients will mostly be KIS (knowledge intensive startup companies) with the potential of fast growth (ideally complying the characteristics of fast growing companies, known as gazelles).

Nowadays, both programmes are fully developed and they include systematic awareness raising in the area of entrepreneurship, working with the startup community, and they are respected as leading programmes for the development of startup companies in the CR. In view of the RIS priorities, they will be adapted to the needs of knowledge intensive startups (KIS) (in particular, projects led by company technology experts, or projects based on R&D). The programmes will specialise, in particular, on technology sectors S3 regional specialisation.

The specific contents will be as follows: 1. Awareness raising among secondary school and university students and people interested in business provided by company employees and scientists. 2. Educating clients, such as company employees and scientists, in the field of business competencies to reach advanced levels. 3. Networking - networking among entrepreneurs, linking them up with experienced businessmen and experts, including partners from the industry. 4. Creating and strengthening the business ecosystem focusing on knowledge intensive companies in the priority sectors. 5. Individual consultation for clients when building their company and specific products provided by experienced experts (internal JIC employees and Enterpreneur in Residence (EiR)). 6. Involvement of industrial partners in the definition of technology specialisation and the development of supported

projects. 7. Access to the knowledge of R&D centres in SMR. 8. Ensuring necessary publicity for the implemented projects.

Project outputs (proof of meeting the Innovative and further developed incubation and acceleration objective) programmes - Incubation programme JIC adopted to KIS needs - number of incubated projects with KIS characteristics - acceleration programme JIC adopted to KIS needs - number of supported companies with KIS characteristics Outcome (how will the project The programme will increase the number of KIS in SMR, in particular contribute to fulfilling specific in priority sectors, and it will strengthen the entire business ecosystem objectives?) in the sectors. The transfer of research and development knowledge into practice will also increase.

Responsible for implementation JIC

Responsible for funding JIC, SMR, SF EU (OP EIC), Horizon, 2020

Expected national Level of co- Volume (CZK) funding sources financing (%) Budget project N/A N/A N/A (estimate) preparation project N/A N/A N/A implementation operation per 6–8 FTE internal JIC Structure funds EU, annum/or 0.5–1 million CZK for OP EIC management external experts Horizon, 2020 costs for the 2–3 million for scheme "technology vouchers" 0.75 million marketing and other expenses

Partners: universities, existing companies

E: Attractiveness of the region (image) Area of changes: E. Attractiveness of the region

Strategic objective: 1. To create a new image for the region, reflecting the existence of knowledge economy

Specific objective: 1.1. To create a brand of the region

Project/Programme name*: Creating a name/slogan, i.e. putting the brand of the region into words using key ideas. Justification and project description A logo or graphical representation is one of the first and essential steps to start any advertising communication of the new product, service or destination. A logo is a graphical representation of the identity of the brand and it is sometimes the "most visible" communication feature. The destination brand symbolises a desirable identity of a certain area, region (town, country, state). A modern access to the creation of destination brands, in particular, if the actual name of the region is not sufficiently known by the target group ("Where is it?", i.e. it is based on a marketing movement, expressing the identity of the region through an idea which is on the rise in the region and which best expresses the key advantage of the region. Since this is an important feature of the entire regional communication which can positively and negatively influence the image of the region, it is advisable to announce a competition and let professionals create the text. The aim of the competition is to come up with a sufficiently attractive, differentiating, relevant, easy to remember and graphically visible slogan fulfilling the brief. Project objective: Slogan for graphical representation that will become the logo of the new regional brand. Project outputs (proof of meeting the Tender for the name/slogan. objective) Outcome (how will the project contribute to The existence of the name/slogan is an integral part of the new fulfilling specific objectives?) brand of the region. Responsible for implementation SMR

Responsible for funding SMR

Volume Expected Level of co- (CZK) national funding financing (%) sources Budget project preparation (estimate)

project implementation - Tender 145,00 process for 0 CZK the name operation per annum Partners: members of the working group Attractiveness of the Region (image)

Activity plan

Implementation Cost Responsibility Activity Description deadline (organisation) (from-to) 1 Brief for the tender process SMR 2014 145,000 2 Tender SMR 2014 CZK

Area of changes: Attractiveness of the region

Strategic objective: 2. To create a new image for the region, reflecting the existence of knowledge economy Specific objective 2.1. To create a brand of the region

Project/Programme name*: Creating a logo, i.e. graphical representation of the regional brand using key ideas. Justification and project description A logo or graphical representation is one of the first and essential steps to start any advertising communication of the new product, service or destination. A logo is a graphical representation of the identity of the brand and it is sometimes the "most visible" communication feature. The destination brand symbolises a desirable identity of a certain area, region (town, country, state). A modern access to the creation of destination brands, in particular, if the actual name of the region is not sufficiently known by the target group ("Where is it?", i.e. it is based on a marketing movement, expressing the identity of the region through an idea which is on the rise in the region and which best expresses the key advantage of the region. Since this is an important feature of the entire regional communication which can positively and negatively influence the image of the region, it is advisable to announce a competition and let professionals create the text. The aim of the competition is to come up with a sufficiently attractive, differentiating, relevant, easy to remember and graphically visible slogan fulfilling the brief. Project objective: Brand logo of the region.

Project outputs (proof of meeting the Tender process for the logo - graphical representation. objective) Graphical representation and a design manual, including the visual style of the new brand. Outcome (how will the project contribute to Graphical representation, i.e. logo including the rules for use fulfilling specific objectives?) (design manual) enabling the region (and all RIS 4 partners) to communicate the logo. Responsible for implementation SMR

Responsible for funding SMR

Volume Expected Level of co- (CZK) national funding financing (%) sources Budget project preparation (estimate) project implementation 1,400,0 - Tender for the 00 CZK logo operation per annum Partners: members of the working group Attractiveness of the Region (image)

Activity plan

Implementatio Cost Responsibility Activity Description n deadline (organisation) (from-to) 1 Brief for the tender process JIC 2014 1,40 0,00 2 Tender JIC 2014 0 CZK Creating brand design manual 3 JIC 2014

Area of changes: Attractiveness of the region

Strategic objective: 1. To create a new image for the region, reflecting the existence of knowledge-based economy 2. To create a new image of the region as an area of advanced knowledge-based economy: Specific objective 1.1. To link up important stakeholders of the innovation ecosystem to create a regional brand within the VVIP context, and to use advantages arising out of the co- ownership of a strong brand 2.1. To continuously prepare information about what is happening in the innovation ecosystem, and distribute the information through printed and digital media home and abroad Project/Programme name*: Electronic data portal, i.e. electronic library of the Regional Innovation Ecosystem of South Moravia Justification and project description The project aims to create one joint electronic place to share defined information by all members of the regional innovation ecosystem. It will also be used as a non-public source of information for the public portal. Nowadays, the information necessary is available from the

information "owners" which means that if some information is required, several entities must be asked separately and a response must be awaited. The online library will make the administration of information more efficient. The following parts form contents of the library: - Activity calendar - Storage of updated documents - Company register (profiles) - People register (profiles) - Design manual for the brand of the region - Keyword searching for documents Project objective: 1. To increase mutual awareness of all RIS partners about key events and information in the region with regards to R&DfI. 2. To make the method of acquiring relevant information from several dozen entities for subsequent media coverage of the region more efficient. Project outputs (proof of meeting the Electronic library used by companies who form part of the objective) regional innovation ecosystem Outcome (how will the project contribute to 1. Thanks to better connections between RIS partners in the fulfilling specific objectives?) region, the relevance of using a regional brand will be higher. 2. A more efficient method of securing necessary information for subsequent media coverage of the region inside and outside the region. Responsible for implementation SMR

Responsible for funding SMR

Volume Expected Level of co- (CZK) national funding financing (%) sources Budget Project preparation 25,000 (estimate) consultancy services CZK including technical design project implementation Technical design 300,00 0 CZK

operation per annum 80,000 Technical support for CZK/ye contractors ar Increasing awareness of target groups Partneři Members of the regional marketing group, i.e. companies in priority SMR sectors or outside the region

100

Activity plan

Implementation Cost Responsibility Activity Description deadline (organisation) (from-to) Identification of needs by the members of the 0.25 1 SMR 2014 regional innovation ecosystem FTE Tender for a contractor of a technical design, 300,000 2 SMR 2014 subsequently making the design CZK 0.25 3 Fulfilment of the content by partners Partners 2014 FTE Official launch of the electronic library and its 10,000 4 SMR 2014 medialisation CZK

Area of changes: Attractiveness of the region

Strategic objective: 3. To create a new image for the region, reflecting the existence of a knowledge-based economy. Specific objective: 3.1. To increase the attractiveness of the region, within the region and abroad, for primary target groups Project/Programme name*: Advertising campaign - communication agency Justification and project description To increase the knowledge and attractiveness of the region for the target group through communication activities (advertising campaigns, events, basic communication materials for the needs of RIS4 partners etc.). The communication activities are based on the overall marketing plan for regional marketing. The communication activities, using regional marketing, must be created and implemented in cooperation with a professional marketing agency. Creating an attractive communication style (idea and visual style) and its application into all communication materials will be best secured through cooperation with a communication agency. An agency will be selected through tender. Important criteria for the tender will be as follows: the idea of the agency, the visual style of the communication, the agency price for the communication, rates per hour of specialised work provided during the cooperation. Project objective: To select a suitable, professional, and creative communication agency to implement the communication activities of regional marketing in 2015, 2016. Project outputs (proof of meeting the Advertising agreement with a selected communication agency. objective) Outcome (how will the project contribute to Starting cooperation with a selected communication agency. fulfilling specific objectives?) Responsible for implementation SMR

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Responsible for funding SMR

Volume Expected Level of co- (CZK) national sources financing (%) of financing Budget project preparation (estimate)

project implementation - Tender 500,00 process for 0 CZK the name operation per annum Partners: members of the working group Attractiveness of the Region (image)

Activity plan

Implementation Cost Responsibility Activity Description deadline (organisation) (from-to) 1 Brief for the tender process SMR 2014 500,000 2 Tender SMR 2014 CZK

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Annexe 2: Data for the analytical part of RIS JMK

Graph 1: GDP development per inhabitant in SMR - comparison across the Czech Republic Jihomoravský kraj ČR Praha + Středočeský kraj ČR bez Prahy a Středočeského kraje Kraj s nejnižší úrovní HDP/ob. 600 550 500 450 400 350 300 250 200 150

HDP na obyvatele v tis. běžné ceny Kč tis. HDP na v obyvatele 100 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Regional accounts, CSO 2013

Graph 2: Comparison of regions by cumulated growth of real GDP 1995–2012 (year 1995 = 100)

225 209,0 200 175,0 175 165,7 158,3 154,0 151,3 147,7 147,2 146,6 146,0 150 142,6 136,1 131,0 123,1 125 97,5 100

50 STC PHA ZLK VYS ČR JHM LBK HKK PLK PAK OLK JHC MSK ULK KVK

Source: Regional accounts, CSO 2013

Graph 3: Growth of real GDP in SMR and CR 7,0 6,0 5,0 4,0 3,0 2,0 1,0 JHM 0,0 ČR -1,0 -2,0 -3,0

Roční změna HDP HDP ve % cenách stálých změna Roční -4,0 -5,0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: Regional accounts, CSO 2013

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Table 1: Development of direct foreign investment per inhabitant in CR regions Increase in DFI per DFI per inhabitant as DFI per inhabitant as inhabitant 2005-2011 of 31. 12. 2005 (thousand of 31. 12. 2011 (thousand (thousand CZK) CZK) CZK)

Prague 647.1 1015.2 368.1 Central Bohemia Region 125.4 200.1 74.6 South Bohemia Region 89.6 139.8 50.3 Pilsen Region 84.9 130.2 45.3 Karlovy Vary Region 52.8 64.9 12.0 Ústí nad Labem Region 74.7 105.1 30.4 Liberec Region 105.3 133.8 28.5 Hradec Králové Region 44.2 85.9 41.7 Pardubice Region 69.8 102.6 32.8 Vysočina Region 68.9 97.3 28.4 South Moravia Region 50.6 137.0 86.4 Olomouc Region 44.0 48.6 4.6 Zlín Region 50.1 84.6 34.5 Moravia Silesia 72.1 140.4 68.3 Czech Republic 142.1 229.0 86.9 Source: database of CNB payment balance

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Table 2: The most important export product groups SMR 2010

Rank SITC for three positions Share in %

1. 772 electrical equipment for switching and disconnecting circuits 6.3

2. 894 prams, toys, games and sports equipment 5.0

3. 716 rotating electrical machines and their parts 4.8

4. 699 base metal products 3.9

5. 764 telecommunication equipment, accessories for recording and reproduction of sound, image 3.5

6. 752 equipment for automatic data processing including peripheral units 3.1

7. 898 musical instruments and their parts and accessories; records, tapes, etc. 3.0

8. 773 means for distributing electricity 2.7

9. 657 special yarns, special textile materials and related products 2.7

10. 893 plastic products 2.3

11. 747 cocks, valves and similar fittings for pipes, furnaces, tanks, reservoirs, etc. 2.1

784 parts and accessories of motor vehicles 12. 2.1

13. 871 optical appliances and instruments 1.8

14. 851 shoes 1.7

15. 741 equipment for heating and cooling systems and their parts 1.6

16. 761 monitors and projectors; television sets, combined sets 1.6

759 parts and accessories of office machines and automatic data processing 17. 1.5

18. 722 tractors 1.5

19. 724 textile and leather machinery, and parts thereof 1.4

20. 541 medicinal and pharmaceutical products (no antibiotics, hormones, etc.). 1.3

1.–20. stated in SITC in total 53.8 Source: Foreign trade of the regions, SCO 2011. Notes: CSO has not been monitoring regional division of export since 2011.

Table 3: Development of the number of companies with own R&D by CR regions in 2006–2011 number of companies with R&D Share of CR change in the number of companies with R&D 2,006 2,011 2,006 2,011 2006–11 Prague 412 482 23.8 21.3 70 Central Bohemia 159 224 9.2 9.9 65 Region South Bohemia 67 80 3.9 3.5 13 Region Pilsen Region 65 97 3.7 4.3 32

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Karlovy Vary Region 16 20 0.9 0.9 4 Ústí nad Labem 63 81 3.6 3.6 18 Region Liberec Region 62 76 3.6 3.4 14 Hradec Králové 88 124 5.1 5.5 36 Region Pardubice Region 105 127 6.1 5.6 22 Vysočina Region 72 83 4.2 3.7 11 South Moravia 263 367 15.2 16.2 104 Region Olomouc Region 84 109 4.8 4.8 25 Zlín Region 122 161 7.0 7.1 39 Moravia Silesia 156 230 9.0 10.2 74 Czech Republic 1,734 2,261 100.0 100.0 527 Source: Research and development in CR, CSO.

Graph 4: NACE 3 category by the volume of R&D expenditure in the South Moravian Region 2005 2011 21,3% 900 800 700 600

500 10,7%

400 15,8% 7,3% 6,8%

v mil. CZK mil. v 300 11,7% 6,1% 6,0% 9,0% 200 6,4% 5,9% 3,2% 3,2% 6,6% 3,0% 4,1% 2,4% 100 3,7% 3,4% 0,0% 0 332 620 271 721 631 265 331 281 212 712

Source: Internal database of the CSO - 332: Installation of industrial machinery and equipment, 620: Information technology activities, 271: Manufacturing of electric motors, generators, transformers and electricity distribution and control apparatus, 721: Research and development in the field of natural and technical sciences, 631: Activities connected to processing data and hosting; activities related to web portals, 265: Manufacture of measuring, testing and navigation instruments; manufacture of timekeeping instruments, 331: Repair of fabricated metal products, machinery and equipment, 281: Manufacture of machinery and equipment for general purposes, 212: Production of pharmaceuticals, 712: Technical tests and analysis

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Annexe 3: Project types in RIS in terms of financing regional interventions from structural funds39

Type of Individual projects for national RIS - national level intervention/project Intervention holder - prepared and presented by a company or research organisation or another entity preparation and for national RIS presentation Compliance with the - must be in compliance with key areas of changes (horizontal priority) and national RIS and the objectives and tools of national RIS regional annexe - or must be in compliance with the national or regional vertical priority (specialisation domain), their objectives and tools - does not have to be in compliance with key areas of changes (regional horizontal priorities) and their tools in the regional annexe RIS 3 Financing - co-financing usually financed by the submitter of the project and co-financed from the operational programme, including the possibility of financing from the state budget Type/conditions or - national calls focusing both on the horizontal areas of changes and nature of the call vertical, national and regional priorities - national calls will be specifically focused on specific tools or interventions - projects will compete at national levels and they will be selected in accordance with the procedure, rules and criteria stipulated by the managing authority or a mediating entity (if it is, for example TACR, this has not been decided yet) Types of projects various - see the typology of projects - projects in the Horizontal/National category Project management projects will be managed by the submitter, managing authority or ZS

Type of Joint/system projects for national RIS 3 - national level intervention/project Intervention holder - prepared by MA or authorised ZS preparation and presentation Compliance with the must be in compliance with the area of changes, or national vertical priority, and national RIS and targets and tools of national RIS regional annexe Financing - co-financing financed from the operational programme, including national co-financing Type/conditions or national calls focusing either on the horizontal areas of changes or on vertical, nature of the call national and regional priorities Types of projects - various, e.g. introduction of the system of career advisory services or changing the method of evaluation and financing of universities (including relevant changes in legislation) or managing the national fund of risk capital etc. - this will probably be the smallest group of projects, however, these projects can be very important, if not fundamental

39 The author of the Annexe is a RIS facilitator (supplier of MEYS services) and currently (May, 2014) it cannot be fully guaranteed that the managing authorities of relevant operational programmes will fully follow the proposed implementation method.

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Project management projects will be managed by the submitter, i.e. managing authority or ZS

Type of Joint/system projects of regional government/in regions intervention/project Intervention holder - - prepared by the regional government or authorised entity (intermediary preparation and institution), usually on the basis of a proposal made by the Regional presentation Council for Innovation, - application for OP is always presented by the region Compliance with the - must be in compliance with the regional RIS annexe, namely, with its national RIS and key areas of changes and objectives, it must be described in the action regional annexe plan and there must be a project fiche - this amendment will enable extending the time allowance for the identification and preparation of projects and their inclusion for later implementation; we can state that the regional annexe (and, also, the national one) only includes indicative tools/projects which can be completed, if necessary - however, they must be in accordance with the objectives and key areas of changes which will be very difficult to change - the system project is in accordance with the horizontal areas of changes of the national RIS, only indirectly, since the horizontal areas of changes in the regional annexe must be in accordance with the national horizontal areas of changes - if a system project/programme registers for calls for vertical priorities (specialisation domains), it must be in compliance either with the national vertical priorities, specifying the priorities for the region, or it must focus on a region specific vertical priority which differs from the national ones (therefore, this concerns only the tools for which it is somehow counted on the fact that they will reflect vertical priorities) Financing - co-financing - co-financed by the regional government and final beneficiaries (service users) and from OP; - another option can be co-financing by entities other than the regional government, however, this presumes that the region (or a region authorised by the entity) will mediate and negotiate the co-financing; Type/conditions or - an application for a system/joint project for the relevant national call nature of the call may also include more various "subprojects"or "schemes", including the cost and activities for the project preparation of several subprojects and including the cost of managing the entire comprehensive project; however, the subprojects are registered for the national call as one project and the MA views them as one project - it is preliminarily expected that the national call will focus on "regional projects" and it will be open to a whole group of tools or interventions that can be different for different regions, or partially different, and which can be combined in the regions; this concept will have to be further confirmed - regional projects will not compete against one another; this will be an ongoing call for which the regions will prepare and register projects. If the projects are not of a good quality and do not get support, they can be completed, reworked and they can apply for support again - one "comprehensive" project (see further below) consisting of more subprojects must be prepared for each priority OP axis separately, it cannot include joint activities of more priority axis or more OPs Types of projects joint/system projects can have the nature of:

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- one project - scheme - project whose aim is to financially support the final beneficiary of interventions (innovation vouchers can serve as an example of such a system project) - comprehensive40 project is a combination of more individual "subprojects" - e.g. it can include networking activities/subprojects, activities/subprojects to support cooperation between companies and research organisations (financial), advisory services to protect IP, innovation vouchers, etc. - comprehensive projects may also include the cost of preparation of selected projects included in the regional annexe Types of final beneficiaries shall be stated in regional projects, generally they must fall under the type of beneficiaries listed in OP. Project management - managed by the region or an organisation entrusted by the regional government to manage the project (intermediary institution) - financial liability remains with the regional government - if an organisation, other than the region, is authorised to manage a project/group of subprojects, this organisation must comply with the following criteria, at the very minimum: o public administration must have a majority, regardless of the legal form of the organisation o regional government must enforce a managerial control - i.e. have the possibility to interfere in the management of the organisation through its representatives o specific conditions are being prepared and discussed with the Office for the Protection of Competition - the Regional Council for Innovation should evaluate project results and make recommendations to the regional government and the organisation administering the project (intermediary institution)

Type of Regional projects selected at the national level - one project per region intervention/project Intervention holder - - projects may but do not have to be prepared with the help of the preparation and regional government (using the possibility to prepare funds from the presentation Smart Accelerator to prepare the project) - it is generally assumed that the Regional Council For Innovation, i.e. regional government, will be the middleman or intermediary of agreements made by different players so that they could agree on one joint project which would cover the whole region or parts of the region which the Regional Council for Innovation and the regional government view as desirable (e.g. incubation services, advisory services for businessmen, etc.) - if the Regional Council for Innovation, or the government, do not act as the middleman, i.e. as intermediary of the agreement, different entities

40 The word "comprehensive" does not represent a new term, it is an attempt to reflect the fact that a "project" can include different activities of the region which are interlinked and each of them could have a nature of an independent small project, but in the cases stated here, these will be viewed as separate activities of one joint/system project - e.g. a comprehensive project may include innovation vouchers and the call for innovation vouchers announced by the region can be preceded by a number of networking activities with the aim to search for potential partners and find out more about the mutual possibilities and potential benefits.

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can agree with one another, prepare and submit a joint project - the key requirement is that only one project, maximum, will be selected for the region, even if more applications are made in the region; however, no project has to be selected - regional intermediary institutions can help with project preparation, but not necessarily; the project is submitted by one organisation, which in some cases can also be the region (however, this is not very likely), and other organisations will be the project partners Compliance with the - projects should be in compliance with the regional annexe as they should national RIS and address problems in the regions regional annexe - it must be possible to fill in the intervention type into the action plan of the regional annexe - into tools - and to complete relevant fiche during the implementation of RIS as it is clear that, currently, not all projects can be specifically defined which can be completed through regional priorities (horizontal and vertical) - tools and type projects should be filled into the regional annexe and the action plan when proposed by the innovation platforms and the Regional Councils for Innovation Financing - co-financing - projects will be financed/co-financed by the submitter and the OP, including funding from the state budget - projects should be co-financed by final beneficiaries (service users) always when the nature of the projects allows to do so - it is not projected that projects will be co-financed by the regional government, apart from OP, although it is not excluded; potential public funding from the regional level can vary, and in view of the local conditions, it is not determined which entity is obliged to provide the funding - it can be a town, university, etc.; - funding by the region is not essential, apart from projects from Smart Accelerator which are co-financed by the region - if a project strives to fund the preparatory work, it must be in compliance with the regional RIS annexe Type/conditions or - specific national calls focused on a specific tool which must be stated in nature of the call the regional annexe RIS or in the action plan and which must be in compliance with national RIS - projects compete with one another at the national level with regards to national calls under the condition that only one project maximum will be selected from the region, regardless of the number of the projects registered Types of projects project typology, e.g. popularisation of science, incubation programmes certified EBN, centres of transfer of technology, etc. Project management - projects will be managed by the submitter, for partner projects - one project submitted by more entities - e.g. in the case of CTT, more universities or more advisory entities - basic business consulting, etc, projects will be managed by the main partner; - in terms of the financing institutions, projects will be managed by the MA or ZS

To prepare projects described above under 1) 3) and 4), the region or the entities in the region can gain support from the operational programme (e.g. Smart Accelerator), including the cost of a project manager or a small team who will prepare the project/joint project. Unless the regional projects are stated in the regional RIS and/or action plan, they cannot receive support from the Smart Accelerator.

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