REPORT

OF UA CSP

Implementation of the European Integration Reforms in Science and Technology

(as of 5 November 2017)

CONTENTS

LIST OF ACRONYMS

SUMMARY

METHODOLOGY

1. Contribution to the shaping of the EU strategy for scientific and technological development and bringing it in line with the respective national strategy

1.1. Shaping the national science and technology strategy

1.2. Applying cross-border coordination mechanisms and participation in the development of the ERA common science policy

1.3. Coordinating activities of the Main Budget Spending Agencies for the implementation of the strategy and ensuring its logistic support

2. Implementing the European principles of independent assessment of scientific activity and procedures to ensure its quality

3. Identifying priority directions for the development of innovative sectors of the Ukrainian economy in the ERA within the framework of the Smart Specialization Strategy

5. Access to the EU modern research and electronic infrastructure and creation of national hubs

6. Joining the single labour market for researchers

7. Access to open scientific data and knowledge in the European Digital Single Market

8. Ensuring transition from commercialization of research results to their joint introduction and using in joint innovation ecosystems

CONCLUSIONS

RECOMMENDATIONS

LIST OF ACRONYMS

AA — EU-Ukraine Association Agreement

ASTC — Agreement for scientific and technological cooperation between the European Community and Ukraine

CMU — Cabinet of Ministers of Ukraine

EC — European Commission

e-IRG — e-Infrastructure Reflection Group

EIT — European Institute of Innovation and Technology

EOSC — European Open Science Cloud

ERA — European Research Area

ERAC — European Research Area Committee

ERIC — European Research Infrastructure Consortium

ESFRI — European Strategy Forum on Research Infrastructures

EU — European Union

Euratom Agreement — Agreement for scientific and technological cooperation between the European Atomic Energy Community and the Government of Ukraine associating Ukraine to the Euratom Research and Training Programme (2014–2018)

HEI — Higher education institution

Horizon 2020 — Horizon 2020, EU Framework Programme for Research and Innovation (2014–2020)

Horizon 2020 Agreement — EU-Ukraine Agreement for the Association of Ukraine to Horizon 2020

JC — EU-Ukraine Joint Committee on Science and Technology Cooperation

JRC — Joint Research Centre

MEDT — Ministry of Economic Development and Trade of Ukraine

MES — Ministry of Education and Science of Ukraine

NCST — National Council of Ukraine on Science and Technology Development

NRF — National Research Foundation of Ukraine

PSF — Horizon 2020 Policy Support Facility

PSF Report — Final PSF Report “Peer Review of the Ukrainian Research and Innovation System”

S&T — Science and Technology

S&T Law — Law of Ukraine on Scientific and Technological Activities

SFFR — State Fund for Fundamental Research

UA CSP — Ukrainian Side of the EU-Ukraine Civil Society Platform
CEA — Central executive authority

VRU — Verkhovna Rada of Ukraine (Parliament)

WG6 – Working Group 6 “Science and technologies, information society, education, training and youth, culture, and sport”, UA CSP

SUMMARY

The ageing of scientific infrastructure, reduction in scientific human resources, and collapse of the GDP science intensity evidence ruining of Ukraine's scientific potential,and thishas already become a threat to its national security. As a result of the signing of the AA and the Horizon 2020 Agreement, the scientific community developed expectations of a new level of international cooperation within the framework of the ERA and the Innovation Union. The country has got hope that the issue caused by the gap between the science, which solves problems of the 5th and 6th technological waves, and the Ukrainian economy, which exists within the 3rd and 4th waves, would be resolved. However, the strategy for science and technology development is not in place yet, and the funding in this area has reached its historical minimum during the past three years. An important part of such strategy should be an agreed policy for integration into the ERA as provided for in Article 375, paragraph 2 of the AA as well as gradual an increase in science funding from the State Budget up to 1.7 percent of GDP in 2020, as prescribed by the S&T Law. However, nothing happens.

Monitoring of the AA implementation in the field of science and technology is complicated by the lack of well-defined activities in the Government’s Action Plan for the AA Implementation to be used as indicators of its progress. In addition, there is no action plan for realization of Article 66, point 4 of the S&T Law to ensure integration into the ERA through the implementation of its priorities. The Government acknowledges that Ukrainelacks a comprehensive approach to the ERA integration and to benefiting from the opportunities it offers. The EU has developed the ERA Roadmap for 2015–2020 as well as a number of guidelines and indicators to be used by the EC for the purpose of monitoring progress in the EU-28 and 13 associate members, including Ukraine. These documents, as well as decisions of the Competitiveness Council of the Council of the European Union, were used by the authors of this study as a basis for identifying opportunities associated with the participation in the ERA and instruments required to avail of them. The government’s activities from November 2014 till July 2017 were analysed to understand how much effectively Ukraine uses the opportunities associated with the gradual European integration and to provide recommendations to authorities on practical application of those instruments. The Report was prepared on a phased basis with the involvement of WG6 members, in close cooperation with the experts of the Civic Synergy Project and taking account of the feedback provided by external experts from leading scientific institutions.

Despite the lack of any strategy, one of the objectives set by the Medium-term Government Priority Action Plan for the Period till 2020 is science and technology development, which corresponds to the purpose of cooperation with the EU in terms of strengthening scientific potential for resolving social problems and increasing competitiveness. The authorities responsible for the development of the ERA integration strategy and policy include the VRU, the CMU, the MES, the MEDT and the NCST (its composition was approved on 9 August 2017). The MES participation in the EC structures ensuring Ukraine’s integration into the ERA is limited to its work in joint committees for the support of the ASTC, Horizon 2020 Agreement, and the Euratom Agreement as well as in relevant Cluster 4 of the Sub-Committee of the Association Committee, and in the ERAC. The ministryhas not participated in the other 7 groups responsible for the ERA policy development on each of its prioritiesfor two years, showing its inability to ensure the integration into the ERA. However, some issues can be resolved only at the CMU level, but there is no efficient coordination of CEA activities. Such coordination of the European integration reform implementation is entrusted to the Government Office for European and Euro-Atlantic Integration, with the new Regulation thereon approved in October 2017, and to Horizon 2020 Coordination Centre. The selection of representatives and experts to 14 configurations of the Horizon 2020 Programme Committee and of experts to the ERAC is almost completed. In late 2016, the Final PSF Report “Peer Review of the Ukrainian Research and Innovation System” was published. It contains a number of recommendations on S&T reform relating to the integration into the ERA. Despite the fact that the GovernmentPriority Action Plan provided for approval of anOperational Action Plan for Science Reform, taking account of these recommendations,in Q2 2017, the latter has not yet been approved.

Some progress is observed in reforming the system of state appraisal of scientific institutionswhich, until now, has been far from the best European practices. The CMU approved the Regulation on the Procedure of Appraisal of Scientific Institutions (19 July 2017). At present, a methodology is being developed for assessment of scientific, technical and innovation performance of scientific institutions in the course of state appraisal. The only example of application of the European principles in the assessment is the Methodology of assessment of scientific activity of institutions of the NationalAcademy of Sciences of Ukraine which is currently being implemented and is used as a basis for the development of a state appraisal methodology. In accordance with the 2017 Government Priority Action Plan, the Regulation on HEI appraisal in terms of carrying out S&T activities is to be developed in Q4 2017.

In September 2016, a research framework arrangement was signed between the NationalAcademy of Sciences of Ukraine (NASU) and the JRC.Cooperation has been established with the JRC in terms of identifying Ukraine’s priority specializations in the European market within the framework of the Smart Specialization Strategy (the pilot project has been launched in 2017). Broader application of the methods of developing smart specialization strategies in Ukraine, including that at the regional level, is impaired by insufficient transparency of cooperation with the JRC.

Despite abundance of bilateral agreements, Ukraine is not a party to multilateral international agreements, including the Joint Programming Initiatives (JPI). Ukraine fails to use the opportunities provided by the PSF Mutual Learning Exercise (MLE) on Alignment and Interoperability of Research Programmes aimed at addressing global challenges. It is important that the MLE PSF provides methodologies of joint funding and support of such programmes by the EU.The country does not use the possibility to create international scientific networks in relevant areas of research with 36 COST Member States.

Over the past two years, Ukraine has got access to the modern material and technical resources of two international research institutions — CERN (from September 2016) and EuroFusion (form January 2017). In addition, since 2017, Ukrainehas participated in three ESFRI research infrastructures, which are currently under construction.Due to the lack of alaw on recognising the operation of the European Research Infrastructure Consortium (ERIC) in Ukraine, itcannot take part in the majority of the ESFRI research infrastructuresthat are in the operating phase. There is some progress in the development of national research and education e-infrastructures: operation of URAN and UarNET education networks as well as of the distributed computing and data processing network — the Ukrainian National Grid. However, the lack of funding prevents Ukraine from becoming a full-fledged member of the European Grid Infrastructure andgiving Ukrainian scientists access to modern data processing platforms using grid and cloud technologies. There is no national roadmap for development of research and e-infrastructures, nor is it being developed. In addition, there is no plan for logistic support of the existing infrastructures.

Despite the fact that directors of institutions and departments are selected on a competitive basis, Ukraine does not apply the EU package of procedures for open, transparent and merit-based recruitment with publishing of relevant requirements on public websites, e.g. EURAXESS. There are no strategies for human development and ensuring attractiveness of research careers.Gender problems are not taken into account, though it is anissue both in hiring and regarding balanced participation of women and men in decision-making, e.g. on specialized councils, contest committees and management bodies.

The Digital Agenda of Ukraine,provided for in the Government Priority Action Plan for the period until 2020, has not been approved yet. It was supposed to identify steps aimed at establishing the National Cloud Initiative and joining the European Open Science Cloud. The MES and the MEDT have not considered the European Open Science Agenda and the EOSC Declaration. The statepolicy in theseareas has not been aligned with the correspondingEU policy through participation in three ERA-related groups, where the management bodies of the EOSC coalition are formed.

Despite the lack of an efficient research commercialization mechanism, there is some progress in drafting of the Innovation Development Strategy. In particular, the Strategy for the Development of High-Tech Industries, approved by the Government committee, provides a programme onthe Digital Agenda and aprogramme for the development of an export-oriented innovation ecosystem. Out of these four programmes, only the draft Digital Agenda has been developed. In addition, Hi-Tech Office Ukraine, acivic union,was established with the MEDT support. However, the existing "gap" in innovation development activities implemented by different Ukrainian institutions requires the development of an interdepartmental research and innovation strategy.The Government takes no steps aiming to develop open innovations within the framework of cooperation of the business, scientific institutions and the civil society. The Government should ensure operability of and support to such innovation ecosystem through the introduction of such instruments as Living Labs and Digital Innovation Hubs. Ukraine still lacks a legal framework for the support of the EU open innovation ecosystems. The Government overlooks the annual Open Innovation 2.0 forums where the European innovation policy is developed.

Based on the findings of our analysis we prepared recommendations for public authorities. They aim at the following:

●implement priority operational measures in 2017, including:

○earmark funds in the draft State Budget 2018 for the establishment and operation of the NRF,

○promptly effect theorganizational, logistic, information and other support for the NCST operation,

○develop a unified system for evaluating scientific activities of science institutions and HEIs based on the best European practices,

●develop anS&T strategy and align it with other CMU strategic documents, as well as create organizational and financial mechanisms for the strategy implementation, including:

○align the national scientific policy with the European one through participation of Ukrainian delegates in the groups and committees on the ERA scientific policy, create asystem of their expert support in Ukraine;

○ensure coordination of activities of Main Budget Spending Agenciesaimed at fulfilment of the Action Plan for the implementation of the ERA Roadmap;

○create aSpecial Fund for International Technical Assistance to Ukraine, provide research and innovation infrastructures and support exchange of scientists,

●use the international cooperation and technical assistance instruments, including:

○ensure Ukraine’s participation in the priority ESFRI-2016 structures, pass aLaw on adopting the ERIC form,

○create conditions for engagement of foreign researchers and academic mobility of Ukrainian scientists, introduce the procedure foropen, transparent and merit-based recruitment of researchers.

○develop an Open Science and Open Innovation Agenda, ensure Ukraine’s participation in the European Open Science Cloud.

INTRODUCTION

The current situation in the field of science and technology of Ukraine may be called critical. Since the AA was signed, the situation has deteriorated and needs immediate action for its stabilization. The sharp decrease in science intensity to its historical minimum (0.48% of GDP in 2016[1]) and thesignificantinnovation and technological gap with other countries result in ruining of the country’s scientific potential. Thisreduces the contribution of science tosocial and economic development of the country, and poses a threat to national security. Issues pertaining to the current situation in the field of science and technology of Ukrainewere outlined in the Medium-term Government Priority Action Plan for 2017–2020[2] as well as in analytical reports forthe President’s Annual Address to the VRU in 2016 and 2017[3]. In particular, they include:

●chronic underfunding;

●lack of coordination among CEAs, academia, business and civil society inresolving strategic issues relating to scientific development;

●lack of modern procedures forassessing the efficiency of activity of scientific institutions and of scientific activity of HEIs in the context of budget funding;

●outdated research infrastructure and material and technical resources, of which modernization needs considerable funding and a development strategy;

●brain drain, particularly among young scientists;

●lack of efficient mechanisms of research commercialization, data and knowledge sharing among the science, the economy (business) and the society (solvingsocial issues);

●inconsistency of activities aimed at Ukraine’s integration into the ERA.

A new S&T reform agenda resulted from the signing of the AA that determined Ukraine’s vector towards the European integration. Systemic implementation of this courseprovides Ukrainewith the following opportunities in science and technology[4]:

  1. Participating in the development of the EU science and technology strategy and aligning the relevant national strategy therewith.
  2. Introducing the European principles of independent assessment of scientific activity and procedures to ensure its quality.
  3. Defining priority directions for the development of innovative sectors of the Ukrainian economy in the ERA within the framework of the Smart Specialization Strategy.
  4. Aligning state targeted S&T programmes with programmes in other EU Member States as well as creating international scientific networks.
  5. Access to the EU modern research and electronic infrastructure and creation of national hubs.
  6. Joining the single labour market for researchers.
  7. Access to open scientific data and knowledge in the European Digital Single Market.
  8. Ensuring transition from commercialization of research results to their joint introduction and using in joint innovation ecosystems.

The EU-Ukraine Agreement for the Association of Ukraine to Horizon 2020 —EU Framework Programme for Research and Innovation (2014–2020)[5] — was signed in 2015 pursuant to Article 375(b) of the AA. The Programme aims at creating the single European scientific area and the innovation union. This Agreement provides for the right of Ukraine to participate:

●in official structures, including the Programme Committees and the ERA-related groups,

●in the EIT education and innovation partnerships,

●in the activity of the Joint Research Centre (on the same terms as applied to legal entities of the EU Member States),

●in the Horizon 2020 Specific Programme[6] (defining specific elements of Horizon 2020, objectives and rules for the development of work programmes).

The status of the associated country obtained by Ukraine allows it to participate in the system of European coordination of S&T policies as well as use experience exchange tools in this area. Within the framework of one of the Horizon 2020 facilities — Policy Support Facility (PSF) — in 2016, the EC conducted the Peer Review of the Ukrainian Research and Innovation System. It was conducted by well-known European experts with the involvement of Ukrainian stakeholders in the field of science, so their Report[7] is one of the most well-grounded and relevant documents on the current situation and the optimal actionsto be taken in the sector. The recommendationsprovided in the Report for the CMU, the NCST and stakeholders in the field of science with regard to