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Luxembourg 2015 OECD Reviews of Innovation Policy LUXEMBOURG 2015 OECD Reviews of Innovation Policy LUXEMBOURG 2015 OECD Reviews of Innovation Policy LUX E MB O U R G 2015 G PreliMINARY VerSION 922015011Cov_PV.indd 1 17-Apr-2015 11:17:23 AM OECD Reviews of Innovation Policy LUXEMBOURG 2015 PRELIMINARY VERSION OECD Reviews of Innovation Policy: Luxembourg 2015 2 OECD Reviews of Innovation Policy: Luxembourg 2015 Foreword The OECD Review of Luxembourg’s Innovation Policy 2015 is part of a series of OECD country reviews of innovation policy.* It is the second of its kind, following the review published in 2007. It was requested by the Luxembourg authorities, represented by the Ministry of Higher Education and Research and was carried out by the OECD Directorate for Science, Technology and Innovation (DSTI) under the auspices of the Committee for Scientific and Technological Policy (CSTP). The purpose of this review is to obtain a comprehensive understanding of the key elements, relationships and dynamics that drive the Luxembourg innovation system and the opportunities to enhance it through government policy. More specifically, the review: provides an independent and comparative assessment of the overall performance of the Luxembourg innovation system recommends where improvements can be made within the system formulates recommendations on how government policies can contribute to such improvements, drawing on the experience of other OECD countries and evidence on innovation processes, systems and policies. The review is intended to be relevant to a wide range of stakeholders in Luxembourg, including government officials, researchers and entrepreneurs, as well as the general public. It also aims to use the OECD as a communication platform to provide an accessible and comprehensive presentation of the Luxembourg innovation system and policy to a global audience. A draft version of the Overall Assessment and Recommendations was presented for a peer review to the Working Party for Innovation and Technology Policy (TIP) of the CSTP in December 2014. Emerging results of the review were presented to the Assise de la Recherche, held at the Cité des Sciences, Esch-Belval, Luxembourg, during the same month. This report was drafted by Michael Keenan, Dimitrios Pontikakis (until December 2014), Giulia Ajmone Marsan (all Science and Technology Policy Division [STP], DSTI, OECD) with contributions from Morgan Meyer (consultant to the OECD; Agro ParisTech and INRA, France) and Michael Stampfer (consultant to the OECD; Vienna Science and Technology Fund, Austria) under the supervision of and with contributions from Gernot Hutschenreiter (STP, DSTI, OECD). Hermann Garden and Kathleen D’Hondt (both at STP, DSTI, OECD) provided valuable input. Ulf Sandström (consultant to the OECD; Sweden) contributed to the fact-finding missions to Luxembourg. The review draws on the results of a series of interviews with major stakeholders of the Luxembourg innovation system, and a background report commissioned by the Luxembourg authorities. This background report was prepared by Interface (Switzerland) and authored by Stefan Rieder, Milena Iselin and Olivier Dolder. * www.oecd.org/sti/innovation/reviews 3 OECD Reviews of Innovation Policy: Luxembourg 2015 The review owes much to the support and co-operation of Luxembourg government officials, in particular Robert Kerger, Léon Diederich and Josiane Entringer (all Ministry of Higher Education and Research) as well as Mario Grotz, Gregory Saeul, Marco Walentiny (all Ministry of the Economy), who provided information and comments, arranged and hosted the interviews during the fact-finding missions in Luxembourg and provided invaluable support throughout the review process. The report has benefited from comments and additional information received from stakeholders in Luxembourg and the TIP peer review – in particular Ian Hughes (Forfás and Delegate to the TIP, Ireland) and Wolfgang Polt (Joanneum Research, Austria) who acted as peer reviewer – and distinguished experts in the field. * www.oecd.org/sti/innovation/reviews 4 OECD Reviews of Innovation Policy: Luxembourg 2015 TABLE OF CONTENTS CHAPTER 1. OVERALL ASSESSMENT AND RECOMMENDATIONS ............................... 9 1.1 Achievements and challenges – diversifying the economy and the role of innovation ..... 11 1.2 The evolution of the innovation system: Following up on the OECD Review of Innovation Policy: Luxembourg 2007 ......................................................... 12 1.3 Main strengths and weaknesses of Luxembourg’s innovation system today .................... 16 1.4 Strategic tasks .................................................................................................................... 17 1.5 Key issues and recommendations ...................................................................................... 17 CHAPTER 2. ECONOMIC AND INNOVATION PERFORMANCE IN LUXEMBOURG .... 37 2.1. Macroeconomic developments ......................................................................................... 39 2.2. Framework conditions for innovation and entrepreneurship ............................................ 44 2.3. The role of innovation in future development .................................................................. 52 2.4. Innovation performance .................................................................................................... 54 REFERENCES ............................................................................................................................ 65 CHAPTER 3. INNOVATION ACTORS IN LUXEMBOURG ................................................. 69 3.1 Business sector ................................................................................................................... 71 3.2 University of Luxembourg................................................................................................. 79 3.3 Public research centres ...................................................................................................... 88 3.4 Other public research performing organisations .............................................................. 104 REFERENCES .......................................................................................................................... 107 CHAPTER 4. THE ROLE OF GOVERNMENT ..................................................................... 109 4.1. The evolution of science, technology and innovation policy in Luxembourg ................ 111 4.2 Main policy actors ........................................................................................................... 114 4.3 Governance: steering, coordination and evaluation ......................................................... 118 4.4 Supporting business R&D and innovation ....................................................................... 123 4.5 Investing in public sector research ................................................................................... 135 4.6 Strengthening R&D skills ................................................................................................ 144 4.7 Supporting international knowledge linkages .................................................................. 148 REFERENCES .......................................................................................................................... 154 Tables Table 1.1 Recommendations of the OECD Review 2007 and their implementation .............. 13 Table 1.2. SWOT analysis of the Luxembourg innovation system ......................................... 16 Table 2.1. EUR million (percentages of performance in brackets) ......................................... 55 Table 2.2. GERD by sector of funding .................................................................................... 56 Table 2.3. Mean PISA scores, 2012......................................................................................... 60 Table 2.4. Female researchers by country and sector .............................................................. 61 5 OECD Reviews of Innovation Policy: Luxembourg 2015 Table 2.5. Patenting intensity .................................................................................................. 64 Table 3.1. Main employers, 2012 ............................................................................................ 72 Table 3.2 Firm demographics, 2013 ........................................................................................ 73 Table 3.3. Collaboration between companies and higher education institutions (HEIs) and companies and PRIs by firm size, 2010-12 ....................................................................... 78 Table 3.4. Publications of the University of Luxembourg (2010-13) ...................................... 85 Table 3.5. Patents and licences from the University of Luxembourg (2010-13) ..................... 88 Table 3.6. Publications of the CRPs and CEPS/INSTEAD (2011-13) .................................... 99 Table 3.7. Numbers of patents, licences, spin-offs and prototypes in the CRPs (2011-13) .. 100 Table 3.8. Number of doctorates in the CRPs and CEPS/INSTEAD (2011-13) ................... 100 Table 4.1. An overview of the 2009 RDI law – funding instruments and eligible share of state aid (%) ................................................................................................ 125 Table 4.2. Budgets (MEUR) and number of projects for selected instruments of the 2009 RDI law, 2009-13 ..............................................................................................
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