4.25. Chapter 25: Science and research

Good progress can be reported in the area of research and innovation policy. Political commitment and administrative capacity were strengthened by the creation in December 2010 of a new Ministry of Science, responsible for policymaking and funding of research activities. In addition, the government established in February 2011 a new Council for Scientific and Research Activity comprising 11 members representing the public and private sectors, research institutes and academics. With respect to research cooperation under the Seventh EU Framework Programme (FP7), Montenegro organised several information days, participated regularly in FP7 management meetings and built a good functioning network of national contact points. It has also taken action to stimulate participation by Montenegrin research entities in FP7 by granting financial support to successful applicants. However, in terms of successful projects, progress is moderate. Montenegro is actively pursuing research opportunities with other international partners and has concluded several bilateral science and technology agreements with neighbouring countries and international partners such as COST, EUREKA and NATO.
Some progress was made towards integration into the European Research Area (ERA). Montenegro has taken several further measures to implement the National Strategy for Science and Research Activities (2008-2016). A new Law governing scientific research activity was adopted in December 2010. It sets out conditions for State funding for both public and private institutions in 14 research programmes and priority areas in line with FP7. Montenegro has also taken several decisions to increase use of information technology for research purposes. The government has set up an electronic information system on scientific and research activities which aims at processing automatically all information of interest to scientific activities in Montenegro and abroad. It has also adopted an information and communications technology (ICT) development plan to assess use of ICT for scientific research activities, review the legislation adopted in the ICT field and analyse the networking between ICT companies and scientific research institutes. In January 2011, a strategy for development of SMEs was adopted, covering the period 2011-2015. It focuses on creating better business conditions and entrepreneurship for SMEs and includes several measures to stimulate and monitor research activities of SMEs which, in turn, will contribute to the Innovation Union. In March 2011, an Action Plan on Mobility of Scientists was adopted containing measures aiming at strengthening inward, outward and inter-sectoral mobility over the period 2011-2012 and, in doing so, preparing for adoption of the European Charter and Code of Conduct for the recruitment of researchers. EURAXESS, the mobility portal organised by the University of Montenegro which is the bridgehead organisation, has been fully operational since November 2010. Montenegro launched a feasibility study on establishing science parks and centres of excellence.

In the absence of valid statistics, it has not been possible to monitor progress on investment in research, but the level is still very low (estimated at 0,13% of GDP in 2008). The Ministry of Science and the Statistical Office are currently carrying out a statistical survey in line with EU standards.

Conclusion Good progress can be reported in the areas of science and research. The institutional and legislative framework for scientific research activities has been strengthened and several measures have been taken to improve the mobility of researchers. However, investment in research remains weak and further efforts are needed in order to establish stronger links between the scientific community and the private sector and stimulate public and private investment in scientific research activities. Further efforts are also required to increase participation in the Seventh EU Framework Programme for research activities. Preparations for the Innovation Union need to be duly considered. Overall, the action taken is in line with and contributes to the objectives set at EU level for research and innovation. Preparations in this area are well on track.

4.20. Chapter 20: Enterprise and industrial policy Progress can be reported in the area of enterprise and industrial policy principles. A new development strategy for 2011-2015 for small and medium-sized enterprises (SMEs), prepared in close cooperation with business representatives, was adopted by the government in January 2011. The action plan for its implementation for the year 2011 was prepared in March and is monitored by the coordination team established for this purpose. In June, the Government adopted a similar strategy which is focused on promotion of competitiveness at the micro level in the period 2011-2015, previously adopted by the Council for Promotion of Competitiveness. The latter was established in November 2010 aiming at coordinating all relevant activities. Further action, pratcularly improved coordination of various institutions and better data on the SME sector, is needed to secure the effectiveness of these strategies. In designing and implementing the SME policy, Montenegro is applying the principles of the Small Business Act and participates in the process of monitoring led by the European Commission and the OECD. In the area of business registration, further progress has been achieved by implementing the 'Unified registration of enterprises' in tax administration. However, additional efforts are needed in this area. Montenegro is continuing its efforts on promoting entrepreneurial education and strengthening the technological capacity of SMEs, but further work remains to be done.
There has been some progress in the area of enterprise and industrial instruments. Montenegro is continuing to participate in the Entrepreneurship and Innovation Programme. The Investment and Development Fund (IDF) started its funding operations, both directly and via intermediaries, and has started assessing possible cooperation with international financial institutions. However, it is too early to assess the effectiveness of its instruments.
Coordination of institutional support to SMEs between the Ministry of Economy, the Directorate for Development of SMEs (SMEDD) and its the regional and local centres, the Chamber of Commerce and financial institutions (IDF, micro-credit providers and commercial banks) is developing but needs to be further strengthened No progress was made with preparation of an industrial strategy. The assessment of the existing sectoral policies, necessary for formulating future industrial policy, is also lacking.
Conclusion
There has been some progress in enterprise and industrial policy. Montenegro is continuing to develop an enterprise policy in line with EU principles, particularly in the area of support for SMEs. However, industrial policy remains to be developed and efforts to formulate a policy in strategically important manufacturing sectors need to be intensified.

Sources:

http://ec.europa.eu/enlargement/pdf/key_documents/2011/package/mn_conclusions_en.pdf

http://ec.europa.eu/enlargement/pdf/key_documents/2011/package/mn_rapport_2011_en.pdf

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