R&D Policy and the Role of Research Institutions in Fostering Green Innovation in Poland Diego Ambasz Javier Sanchez-Reaza Pluvia Zuniga R&D Policy and the Role of Research Institutions in Fostering Green Innovation in Poland Diego Ambasz Javier Sanchez-Reaza Pluvia Zuniga FOSTERING GREEN INNOVATION IN POLAND © 2023 International Bank for Reconstruction and Development/The World Bank. 1818 H Street NW, Washington, DC 20433, USA. Telephone: 202–473–1000; Internet: www.worldbank.org. Some rights reserved This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Cover image: stock.adobe.com. iv Contents Contents Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Introduction...........................................................................................................................1 1. Green Innovation and the Role of R&D Policies................................................................4 1.1. Green Innovation and Green Technologies: What They Are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1.2. R&D Policy for Green Innovation: The Rationale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1.3. Regulatory Frameworks: Environmental and Energy Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2. Research Policy for Green Innovation: Governance and Approach...................................9 3. Research and Green Innovation Potential: A Diagnostic.................................................11 3.1. General Trends in R&D Investment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.2. Human Resources in R&D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.3. Scientific Performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Scientific Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Quality of Research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 3.4. Patenting in Green Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 3.5. Knowledge Transfer and Industry-Science Collaboration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3.6. The Business Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 3.7. General Innovation and Eco-Innovation Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 3.8. Startups and Cleantech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 4. The R&D and Innovation Policy Mix ...............................................................................36 4.1. Targeted Programs for Green Innovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 4.2. New Instruments for Promoting Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 4.3. European Funding for R&D and Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Horizon 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Operational Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 5. Universities and Public Research Organizations .............................................................44 5.1. Universities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5.2. Public R&D Organizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 6. What R&D Policies and Actors Can Do to Support Green Innovation.............................48 6.1. General Policy Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 6.2. What R&D Policies Can Do. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Demand-Side Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Researchers and Advanced Human Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Research Excellence and International Collaboration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 6.3. What Research Universities Can Do . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 6.4. What Public Research Institutions Can Do . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 7. Conclusions .....................................................................................................................56 References...........................................................................................................................58 Endnotes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 v  FOSTERING GREEN INNOVATION IN POLAND Box 2 The Polish Research Evaluation Framework for University Research. . . . . . . . . . . . . . . . . . . . . . . . 47 Figures 1 R&D expenditures in Poland compared to EU and OECD averages. . . . . . . . . . . . . . . . . . . . . . . . 12 2 R&D intensity in EU member states by sector of performance, 2020. . . . . . . . . . . . . . . . . . . . . . . 13 3 Government budget for environmental R&D, 2012 and 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 4 Evolution in government budget for environmental and energy R&D . . . . . . . . . . . . . . . . . . . . . . 14 5 Number of R&D personnel in natural sciences and engineering fields in Poland by function (FTE). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 6 Share of graduates from science, technology, engineering, and mathematics (STEM) programs in tertiary education in 2019, both sexes (percent). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 7 Evolution in the number of scientific publications (documents) in environmental science and energy research published by Polish researchers, 1996–2021. . . . . . . . . . . . . . . . . . . . . . . . . 18 8 Specialization index, environmental science and energy-related research, 2021. . . . . . . . . . . . . . 18 9 Scientific performance in environmental research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 10 Quality of environment-related research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 11 Quality of energy research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 12 Quality of research in renewable energy, sustainability, and the environment (sub-category of energy research). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 13 Research collaboration by universities: share of publications involving international collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 14 Number of PCT patent filings in environment-related technologies, selected EU countries, 2005–19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 15 Specialization in environmental technologies, PCT patent filings . . . . . . . . . . . . . . . . . . . . . . . . . 25 16 Evolution in the number of PCT patent filings in environmental technologies, by type of technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 17 International collaboration in environmental technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 18 Industry-university collaboration in research and proportion of open science, 2016–19. . . . . . . . . . . . 27 19 Industry funding of R&D in higher education institutions and government institutions, 2019 . . . . 28 20 Shifting to environmental management practices: the use of ISO-14000 standards, 2020. . . . . . . 30 21 Enterprises whose innovation activities have been affected by environmental legislation or regulations, 2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 22 Performance of Eco-Innovation Index in 2021, 2020, and 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . 32 23 Eco-Innovation Index 2021 performance breakdown by theme. . . . . . . . . . . . . . . . . . . . . . . . . . . 32 24 Growth in the normalized Eco-Innovation Index between 2012 and 2021. . . . . . . . . . . . . . . . . . . 33 25 Enterprise birth rates, business economy, 2019 and 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 26 Business climate (selected indicators), 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 27 Government procurement as share of GDP, and share of total procurement spent on environment (%). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 vi Acknowledgments Acknowledgments T his report is part of the ASA “Advancing It builds upon background notes authored by Marek the Human Development Agenda within Kwiek, Domagoj Račić, and Anna Koziel. Our the EU’s Green Deal.” It is also a comple­ special thanks go to Anna Koziel for her technical ment to the larger Regional Report entitled inputs and to Professor Marek Kwiek (director of the “Making the European Green Deal Work for People: Institute for Advanced Studies, University of The Role of Human Development in the Green Poznan) for his input on Polish and European Transition.” This report was coordinated by Anna personnel and productivity, citation, and publi­ Koziel, Diego Ambasz, and Javier Sanchez-Reaza, cation patterns in green R&D. Other team members under the supervision of Rita Almeida, Tanya that produced inputs for this report include: Jeremie Dmytraczenko, Cem Mete, and Harry Patrinos. The Amoroso, Aleksandra Marta Kononiuk, Anna Gizela, team is grateful for guidance throughout the process Anna Król-Jankowska, and Anshuman Kamal Gupta. to Gallina Andronova Vincelette, Fadia Saadah, The team is also grateful for suggestions made Marcus Bernhard Heinz, Rafael de Hoyos, and by Lukasz Marek Marc, and Profes­ sor Przemyslaw Jamele Rigolini. This report was written by Diego Korytkowski (West Pomeranian University of Ambasz, Javier Sanchez-Reaza, and Pluvia Zuniga. Technology). Michael Alwan provided design and typesetting services. vii  FOSTERING GREEN INNOVATION IN POLAND Abbreviations ARE Energy Regulatory Agency IRENA International Renewable Energy CCS Carbon capture and sequestration Agency CWTS Centre for Science and Technology ISO International Standard Organization Studies KT Knowledge Transfer DEID Directions of Energy Innovation NCBR National Center for Research and Development Development EC European Commission NCN National Science Centre EGD European Green Deal NECP National Energy and Climate Plan ENCP Energy and Climate Plan NRP National Research Program ETV Environmental Technology Verification NRRP National Recovery and Resilience Plan EU European Union OECD Organisation for Economic Co- FENG European Funds for Modern Economy operation and Development FNP Foundation for Polish OP Operational Program FTE Full-time equivalent PAIH Technological Bridges or Localization FWCI Field-weighted citation impact Consulting GDP Gross domestic product PARP Polish Prize GHG Greenhouse gases PCP Pre-Commercial Procurement GPP Green Public Procurement PCT Patent Cooperation Treaty GUF Government university funds PISA Programme for International Student GUS Polish Statistics Office Assessment HERD Higher Education R&D PSF Policy Support Facility HRSTC Human resources in science and PV Photovoltaic technology R&D Research and development ICT Information and communication RTA Revealed Technological Advantages technologies S&T Science and technology IDUB Excellence Initiative–Research SDG Sustainable Development Goals University SME Small and medium enterprises IEA International Energy Agency STEM Science, engineering, and mathematics ILO International Labour Office TFP Total factor productivity IP Intellectual property US United States IPCEI Important Projects of Common VC Venture capital European Interest viii Executive Summary Executive Summary P oland’s research and innovation capacity programs for green innovation and transformation are key to fostering green innovation com- to cope with the difficulties related to limited skills petences and new competitive advantages and needs for new research competences. On the in the economy. Such capacity is also criti- other hand, research engagement by Polish scien- cal to address the European Green Deal’s (EGD) tar- tists has been significantly expanding, but can im- gets, and the United Nations’ Sustainable Develop- prove. Publication activity in environmental science ment Goals (SDG) policy expectations for and energy-related research, as well as in engineer- decarbonization and sustainable development. ing fields, has increased. However, quality of publi- Research and development (R&D) and innova- cations (as shown in citation indicators) needs im- tion policies play a major role in addressing provement, as does international collaborative green-economy challenges and providing a path- research engagement. Key to the green transition is way toward sustainable development. First, jointly the crucial role of industry-science partnerships in with environmental and carbon-tax policies, Po- both research and education (new skills and joint land’s research and innovation policies are the main programs). In Poland, collaboration remains weak instruments to foster green innovation and achieve compared to other EU countries; this is reflected in SDG goals in the mitigation process. Second, through bibliometric indicators, university rankings, and in- knowledge and technology (particularly green tech- dustry funding of university R&D and R&D per- nologies and their diffusion), R&D and innovation formed at public research organizations. New policy policies can help the country navigate and accelerate efforts should give special attention to international the necessary transitions. Third, new EU funding, partnerships, and to ensuring ‘inter-disciplinarity’ along with Poland’s interest in rethinking policy and in project teams. support systems for the green transition, provide a Progress is also needed in enhancing private sec- unique opportunity. To that end, this report dis- tor ’s R&D and innovation capacity, particularly cusses what R&D policies and research institutions SMEs’ participation and their capacity to engage in can do to address the demand for green technologies the green transition. Despite significant growth in and innovation. private sector R&D, Polish firms’ technological per- Overall, performance in green technologies and formance lags behind firms in Western Europe, in- innovation (as measured by eco-performance indi- cluding in the adoption of environmental manage- cators) is still insufficient to meet the green transi- ment practices and other eco-performance indicators tion and sustainability challenges. Despite signifi- (for example, resource productivity and car- cant increases in public R&D budgets, Poland still bon-emission efficiency). spends relatively little to support R&D in key areas Addressing major challenges such as the green to the energy transition such as environment-related transformation requires more ambitious funding ef- research and (renewable) energy. Poland’s patenting forts, but this also demands improving directional- in green technologies also remains underdevel- ity in resources (that is, orienting the different efforts oped—except for few niche areas with potential for toward common goals) and improved coordination. specialization (such as wastewater processing and On the one hand, new funding (combining resources geothermal power). from national and EU programs, among others) New researchers’ formation, and their engage- could be consolidated into a Green Innovation Fund. ment in green innovation, can also improve. On the This fund can support both basic research and give one hand, in terms of human resources, there is a special attention to applied research projects that ad- potential for addressing green demands—as re- dress complex innovation demands related to en- flected in growing numbers of researchers and S&T ergy transition and sustainability in regions or clus- specialists—but there is room to do better. Poland ters/industries. Such a fund can provide support could further strengthen the supply of graduates in along the innovation cycle and combine a variety of science, technology, engineering, and mathematics instruments, including grants (and matching grants) (STEM). A competence and training (PhD and MSc) for R&D with loans and loan guarantees at later strategy should accompany new R&D policy stages (commercialization). On the other hand, ix  FOSTERING GREEN INNOVATION IN POLAND support for green innovation and R&D projects—al- absorption of technologies and practices, and train- though they have been gaining importance in recent ing of specialists. years—remains limited and suffers from a lack of PROs and universities can play a substantial role coordination across public entities. To date, there is in supporting green innovation development and no overarching strategy for green or environment-re- diffusion. Three mechanisms can be particularly lated R&D or green innovation, and no single entity useful: (i) education (new skills); (ii) new knowledge responsible for it. (from research), and by engaging in R&D and inno- Effective green R&D and innovation policies not vation partnerships; and (iii) through supporting only need more funding but also require a strategy testing and validation of new technologies, by serv- to engage with the private sector. New approaches ing as ‘living laboratories’ or test beds, notably in in R&D policy are required to address green innova- cleantech, energy, and transport. tion demands, notably through improved mecha- The diagnostic and analysis presented in this re- nisms for public-private dialogue and collaboration, port unveils a complex and challenging picture of Pol- further mobilizing demand-side policies (such as ish R&D capacity and its technological preparedness public procurement of green technologies and inno- to engage and deliver green-innovation solutions for vation), and industry-science collaboration. Public regions and industries. The report pinpoints oppor- research organizations (PROs) and the private sector tunity areas to catch up, as well as the competences can collaborate on providing worker training and that Poland can leverage to address capacity and assisting firms in the adoption of new high-perfor- preparedness challenges. Policy goals should, there- mance work practices (including sustainability) and fore, ensure that actions by the state, research cen- new green technologies, including energy systems. ters, universities, private sector, and all agents in the This collaboration can take the form of technology innovation eco-system help meet environmental extension services supporting both adoption and and sustainable development commitments. x INTRODUCTION FOSTERING GREEN INNOVATION IN POLAND I n 2020, the European Commission (EC) ap- Poland’s energy and manufacturing sectors emit proved the European Green Deal (EGD)—a set more than double the amount of GHG per unit of of policy initiatives with an overarching aim of output relative to the EU average, accounting for making the European Union (EU) climate neu- two thirds of national emissions (World Bank 2022). tral by 2050 (EC 2020b). To make this objective le- The continued dominance of coal in electricity gally binding, the EC proposed the European Cli- generation is at the center of the low emission effi- mate Law, which set a target to reduce net greenhouse ciency of Poland’s energy sector. Coal accounts for gas (GHG) emissions by at least 55 percent by 2030— 78 percent of electricity generation, probably the compared to 1990 levels—and reach full climate highest share in EU countries. In addition, about 75 neutrality by 2050. To achieve these decarbonization percent of coal-fired generation capacity is over 25 objectives, emissions must be reduced in all sectors, years old, which means that many power plants from industry and energy, to transport and farming.1 have low levels of efficiency and remain among Eu- These commitments require a profound transforma- rope’s largest contributors to CO2 emissions and in- tion of Europe’s energy and productive systems and dustrial air pollution (EC 2019). Improving emission national policy frameworks. efficiency and accelerating the decarbonization of For Poland, these exigencies require accelerating energy production and the economy are imperative efforts for the decarbonization of the energy mix and for Poland’s green transformation. At the same time, the economy while addressing the needs for eco- improving productivity performance, reducing re- nomic transformation across regions. The recently gional disparities and accelerating their economic approved National Recovery and Resilience Plan transformation, and ensuring future jobs remain (NRRP)—which is part of the support package pro- high priorities in the national agenda. vided by the EU to member countries to accelerate Green transformation and growth require inno- economic recovery in Europe—further strengthens vation, new technologies and skills, and the effective the government’s engagement to accelerate the use of (cross-disciplinary) knowledge and technol- green transformation in Poland.2 ogy—in addition to regulatory frameworks that pro- The challenges to deliver these commitments are mote change (including environmental and energy enormous. Poland has taken important steps in reduc- policies). For firms and countries, innovation is at ing energy and CO2 emissions over the past two de- the heart of sustainable competitive advantages, in- cades, but progress has stalled in recent years (OECD creased productivity, and economic progress. In- 2020). Despite reporting one the highest economic vestment in research and development (R&D) ex- growth rates among the EU countries, Poland ranks plains up to 75 percent of the differences in total below other EU countries in efficient use and man- factor productivity growth rates, once externalities agement of energy, carbon, and resources (EIO, 2019). are considered (Griliches 1979). R&D is therefore key Greenhouse gas (GHG) emissions have not de- to technological change and to addressing societal creased in recent years and remain high. As the sixth challenges related to green transformation. largest economy in the EU, Poland ranks second in However, Poland’s performance in green innova- terms of total direct Scope 1 GHG from economic tion and technologies, and in research investment, is activities. This is a result of both the size of the Polish lower than most western EU economies. The catch- economy and significantly inferior emission effi- ing-up process has so far not been based on the de- ciency compared to more advanced EU economies. velopment of new technologies (Szczygielski 2019) Making Poland climate neutral by 2050 requires accelerating efforts for decarbonization while addressing economic transformation across regions 2 Introduction This policy report analyzes Poland’s experience with R&D policies for innovation, with a special focus on the use of R&D policies for green innovation and technologies and innovation, despite improved capabilities in re- foster markets (for example, with government as a search and human capital (EC 2017). More generally, lead user). Public policies also help accelerate tech- Poland still lags other EU and other developed nology diffusion through infrastructure support for countries in key indicators of innovation such as the deployment and setting performance standards for intensity of R&D investment (for example, reaching green technologies. Furthermore, by aligning with 1.39 percent of GDP in 2020 compared to the OECD climate and environmental policies, R&D policy can average of 2.7 percent), although this ratio almost help direct and organize efforts and actors in re- doubled over the last decade. search and innovation to achieve medium- and Poland is among the persistently low-ranking long-term goals. countries on the European Eco-Innovation Score- For Poland’s energy sector and economy, the board since 2010 (European Commission and EGD provides an opportunity to modernize and in- Eco-Innovation Observatory 2020). According to in- novate, leapfrog technology backwardness, and de- ternational data, Poland’s patenting in sustainable velop new market opportunities, including for pri- technologies remains underdeveloped—except for vate investment. This policy report analyzes few areas with potential for specialization such as Poland’s experience with R&D policies for innova- wastewater processing and geothermal power tion, with a special focus on the use of R&D policies (World Bank 2022). for green innovation and technologies. The purpose Stronger R&D and green technology develop- is to identify areas of action and strategies for R&D ment are critical for Poland to address the needs for policy and new approaches to support green inno- decarbonization and green transformation and com- vation from the perspective of research systems. ply with the EGD targets. In addition, Poland needs to The report is structured as follows. Section 1 pres- improve governance and policy coordination for green ents an overview of the policy framework. Section 2 targets. A central policy goal should be improved col- discusses policy governance and approach. Section 3 laboration between industry, government actors (re- presents a diagnostic of R&D and innovation com- gions/municipalities), and public R&D institutions. petences. Section 4 reviews the policy mix for R&D R&D policies are key to the promotion and regu- and green innovation. Section 5 discusses what aca- lation of green development. For example, such pol- demia and public research organizations (PROs) can icies help address incentives and market failures; do to contribute to green innovation. Section 6 dis- resolve bottlenecks related to green technologies, cusses what R&D policies and actors can do to sup- notably accelerating the testing of technologies; and port green innovation. Section 7 concludes. 3  1 GREEN INNOVATION AND THE ROLE OF R&D POLICIES 1.  Green Innovation and the Role of R&D Policies sequestration (CCS) require technological advance- 1.1. Green Innovation and ment from other groups of sustainable technologies Green Technologies: to be successfully deployed. R What They Are Transforming the power generation system to‑ ward carbon neutrality is a key challenge for Po‑ educing GHG emissions while making land given the predominance of coal as the main economies sustainable and competitive fuel source and the relatively old production sys- cannot be accomplished without two in‑ tems in place. Several international assessments tertwined concepts: green (also called have stressed the prospects for renewable energy “clean”) technologies and green innovation. Green sources for Poland’s energy transition. The most technologies refer to all production (and distribu- likely and relevant for Poland (IRENA 2015) are tion) techniques, especially new forms to produce wind, hydropower, different types of biomasses, and deliver energy that economize on exhaustible geothermal energy, and solar. The right mix of these resources and emit fewer GHGs (Rodrick 2014). The options could replace a large share of Poland’s fossil availability of such technologies both lowers social fuel demand. Increasing renewables will require in- costs in the transition to a green growth path and creased investment in infrastructure and deploy- helps achieve a satisfactory rate of economic prog- ment of existing technologies, but also fostering tar- ress under that path. geted R&D solutions and innovation for local Green technologies often involve a mix of knowl‑ industries and regions. edge and technical competences. The mix can include environmental science, chemistry, environmental monitoring, and electronic devices. These combined 1.2. R&D Policy for Green competencies produce new methods for production, distribution, or energy provision while conserving Innovation: The Rationale the natural environment and earth’s resources. Fundamentally, “green” R&D policies aim at en‑ A broader concept is green innovation, or “eco-in‑ suring a flow of knowledge that addresses the need novation.” Green innovations commonly minimize for green innovation (and sustainable growth) and environmental damage and ensure that natural re- ensures the creation and development of new green sources are used in the most effective way possible technologies and innovation projects.4 The tradi- (OECD 2008).3 According to the EC, an eco-innova- tional rationale for public support for R&D (suc tion is “any innovation that makes progress toward the h as through R&D subsidies) is that market failures goal of sustainable development by reducing impacts on exist in the funding for research and innovation proj- the environment, increasing resilience to environmental ects, and these are associated with the nature of new pressures or using natural resources more efficiently and knowledge. Results from R&D are often uncertain responsibly” (European Parliament and the Council and investments too risky to be deployed by private of the European Union 2006). The two concepts— firms and may take a long time to produce results. In eco-innovation and green technologies—are closely addition, resulting ideas and knowledge can be ap- related as green innovation often makes use of green propriated by third parties, which lowers the eco- technologies to produce, develop, or distribute new nomic returns to innovation investment. products or services in more sustainable ways. As a result, private firms invest too little in in‑ Green technologies fall into two categories: novation compared to what is best for society (Ar- “mitigation” and “adaptation.” Mitigation technol- row 1962). The more uncertain the nature of the re- ogies aim to reduce emissions of greenhouse gases search (as in blue-sky science), and the longer the or to capture and sequester CO2 to prevent its release time horizons, the stronger the case for public sup- into the atmosphere; adaptive technologies allow port (Edler and Fagerberg 2017) for R&D. By allevi- users to adjust to negative effects of climate change ating market failures in the funding of R&D innova- or exploit positive ones. Mitigation includes technol- tion projects (through, for instance, R&D subsidies) ogies that replace high-carbon fossil fuels such as and sharing risks in investment, governments can coal and oil with lower-carbon or zero-carbon alter- help lower the costs of R&D and promote private natives such as natural gas, nuclear, and renewable R&D investment. Governments can also help speed energy (such as biomass, wind, and solar). Note that up the testing of technologies, and their introduction low-carbon energy sources and carbon capture and into markets. 5  FOSTERING GREEN INNOVATION IN POLAND Green technologies have several of the features Thus, governments have a particularly central above mentioned, plus other ones, which make role not only in addressing the lack of R&D incen‑ them highly relevant for policy support. First, un- tives but also in supporting validation and major certainty is high as market demand does not exist demonstration projects, as well the fast scale-up of yet or is not articulated. This, combined with un- green technologies. The development of wind energy known production costs, and the disadvantage in Denmark is an example of the importance of early green (clean) technologies have relative to installed adoption and the role of government in encouraging capacity for the use of existing (dirty) technologies, investments through financial support, regulation further restrains investments for green technologies (including feed-in tariffs and other policies), and fa- and innovation (for example, green hydrogen). cilitating community-level innovation (such as small Second, green innovation suffers from an addi‑ turbine development). In Germany, government in- tional market failure manifested in the inability of vestment in electrical vehicle infrastructure (charging markets to reflect total costs in prices—that is, to stations) is a key component of the policy package internalize social and environmental costs of goods for the development of electrical mobility. and services. This preserves unsustainable forms of Other discouraging factors to green technology production and goods, thereby contributing to pol- development and green innovation relate to fric‑ lution and resource depletion. tions in accessing knowledge from science and Third, from the view of firms, green innovation technology (S&T) organizations or collaborating or using a green technology suffers from a double with other firms. R&D policy can help address lack externality—which furthers discourages R&D in‑ of connectivity among actors through the promotion vestment. A firm’s green innovation has both posi- of innovation partnerships. Finally, other constrains tive externalities for other firms through technology may exist such as those in framework conditions. spillovers (for example, followers benefit from Examples include the lack of advanced human capi- learning for first takers) and benefits for all through tal and skills; insufficient venture capital; or weak- reduced pollution emissions (Aghion et al. 2012; Al- nesses in regulatory frameworks (such as intellectual dieri et al. 2019). This makes firms (and markets) property legislation, and public procurement laws). value dirty innovation more than clean “innova- A key component of R&D policies is their con‑ tion”—in the short term.5 As a result, few incentives nection with national policy goals regarding envi‑ exist for firms to change technologies in the absence ronmental and sustainability targets. According to of policy. experts, R&D policies for green innovation and sus- For green technologies that have passed the pro‑ tainability should be conceived in a way to reflect totype stage, there are still significant barriers be‑ country environmental policy goals. In other words, fore moving to mass adoption. Customers may R&D and innovation policies can be seen as artifacts want to wait to adopt the new (green) technologies for directing technical change toward achieving na- until they are at a later stage, when their costs are tional targets (for example, on the environment) and lower, and returns demonstrated. In the absence of working to accomplish long-term policy objectives early lead-users, learning effects cannot materialize, (Mazzucato 2018). preventing green technologies from reaching the R&D policies are only a part of the policy mix most cost-efficient configuration (Aghion et al. 2012). and actions to foster green innovation and Governments have a central role in supporting R&D incentives, validation and major demonstration projects, and fast scale-up of green technologies 6 1.  Green Innovation and the Role of R&D Policies accelerate the development and diffusion of sus‑ increase incentives for renewable energy investment tainable (and low carbon) technologies. Countries and decarbonize energy and the economy. have been using a portfolio of policies, notably envi- Poland’s energy policy basically focuses on ex‑ ronmental policies—including feed-in tariffs, carbon panding renewable energy, introducing nuclear markets, and taxes—to ensure short-run compliance energy, powering transportation through electric‑ with GHG emission targets. In addition, govern- ity, and increasing energy efficiency across the ment helps foster development by defining quality economy. However, Poland has encountered diffi- and efficiency standards for the functioning and per- culties in achieving some of the targets defined in formance of green technologies. national strategies, and in aligning with EU targets. Pricing negative externalities (for example, Poland achieved most of its 2020 energy and climate through carbon taxes) is key to fostering the green targets highlighted in past policy plans; some areas, transformation as taxes create incentives for both however, are still underperforming, such as the tar- emission reduction and innovation in green tech‑ gets related to renewable energy production. nologies.6 As discussed in Acemoglu et al. (2012) Under national laws and EU directives, Poland and Aghion et al. (2012), addressing environmental has a wide range of energy and climate targets for and knowledge externalities requires a sizeable (and 2030 and 2040. Poland has two key development early) combination of carbon pricing and R&D sub- strategies that also have linkages to climate change: sidies. Both carbon tax policies and R&D subsidies the Energy Policy of Poland until 2040 (EPP 2040), are necessary for the development of green technol- adopted in February 2021, which amends the previ- ogies and innovation. Without price corrections, the ous Energy Policy of Poland until 2030; and the Na- impact of innovation policies would rather be lim- tional Environmental Policy (NEP 2030).7 The latter ited (Aghion et al. 2012). By affecting the costs of is expected to be the basis for investing European dirty technologies, price regulation can help acceler- funds from the financial perspective over the period ate the shift of economic systems toward green 2021–27. Achievement of goals described in both technologies. strategies relies heavily on EU funding. Evidence has confirmed that environmental A central aspect of Poland’s energy policy is re‑ regulation (such as carbon taxes), either directly or ducing reliance on coal, especially for electricity through their impact on energy prices, promotes generation and building heating. The EPP 2040 green innovation and the diffusion of environ‑ mandates a progressive phase-out of hard coal and mentally friendly technologies (Aghion et al. 2012; lignite, along with investments in nuclear and re- Calel and Dechezleprêtre 2016; Popp 2002, 2006). newable energy sources. According to the EPP 2040, More generally, mandatory compliance measures by 2030, Poland’s reliance on coal to produce energy such as carbon pricing and standards are effective is expected to fall to at least 56 percent. According to instruments in fostering innovation in environmen- the Energy Regulatory Agency (ARE), the share of tal technologies, as reflected in patenting (Hascic et renewable energy sources is to increase to no less al. 2010), and favoring the adoption of green tech- than 23 percent by that year, compared to 15 percent nologies (and markets) and reducing emissions registered in 2021. Energy transformation in Poland, (Ambec et al. 2013; Popp et al. 2010). however, confronts serious socioeconomic implica- tions, as the coal industry remains an important source of output and employment. 1.3. Regulatory Frameworks: Poland also has the National Energy and Cli‑ Environmental and Energy mate Plan (ENCP), which is required for all EU member states and was adopted in 2019. The ENCP Policy Plan 2021–2031 defines 2030 targets for non-ETS8 In the area of climate and environmental policies, GHG emissions, renewable energy and energy effi- Poland faces the challenge of decarbonization of ciency that aim to help achieve EU-wide targets for the Polish economy, including developing sustain‑ 2030. The share of energy from renewable sources in able transport and buildings. Strategic documents the national mix is expected to increase from 17.6 adopted by Polish national and regional authorities percent in 2025 to 21 percent in 2030. indicate a growing commitment to green transition. Steps have already been taken to expand re‑ New regulations have been introduced over time to newal energy provision. From 2010 to 2020, the 7  FOSTERING GREEN INNOVATION IN POLAND amount of electricity generated from renewables al- Despite the progress made, Poland remains most tripled, with its share of the power mix increas- heavily reliant on fossil fuels. A major acceleration ing from 7 percent to 18 percent over that period in its clean energy transition is needed to tackle the (IEA 2022). Poland has one of the fastest-growing emissions resulting from coal’s dominant role in the markets for distributed solar photovoltaic (PV) en- power sector (IEA 2022). According to different as- ergy in Europe. In addition, the country currently sessments (IEA 2022; OECD 2020; Al-Ajlani et al. has a strong program to drive offshore wind deploy- 2021), more comprehensive efforts and clear and ment and is planning to build its first nuclear reactor more stable policy frameworks (to reduce uncer- by 2033. In the EPP 2040 plan, offshore wind power tainty for investments) are required to achieve the is highlighted as a key technology that can trans- targets for GHG emissions and energy diversifica- form Poland into a low-emission economy. The Off- tion (EC 2020a). According to IEA (2022), Poland will shore Wind Act sets out the country’s ambitions for have to redouble efforts to keep pace with new EU offshore wind power.9 goals for 2030. 8 2 RESEARCH POLICY FOR GREEN INNOVATION: GOVERNANCE AND APPROACH FOSTERING GREEN INNOVATION IN POLAND I n Poland, there is no overarching strategy for role managing Poland’s EU funding (including for green or environment-related R&D or green R&D) and coordinating with the various agencies im- innovation, and no single entity with responsi‑ plementing Poland’s R&D support programs. bility for it. R&D policy and funding programs In general terms, the National Research Pro‑ for green technologies and innovation have ex- gram (NRP) is the main plan for R&D policy. It for- panded over the years and are spread across differ- mulates strategic objectives for R&D in Poland, as ent ministries and agencies. Essentially, the approach well as policy goals and assumptions in the areas of to environment-related R&D and green innovation science, technology, and innovation. The NRP is is defined through different policy documents, in- supported by individual funding projects and spe- cluding the National Research Program, the Direc- cific strategic research programs—some of which tions of Energy Innovation Development (DEID), target green and environment technologies. Ele- the Research Agenda of the Ministry of Climate and ments of the NRP provide a foundation for the for- Environment, the EPP 2040, the NECP, and the Hy- mation of strategic research and development pro- drogen Strategy. grams—which are high-budget initiatives serving Responsibility for designing and implementing the social and economic development of Poland. research and technology policy (including for en‑ According to the National Center for Research ergy) is mainly given to the Ministry of Science and and Development (or NCBR), the objectives of Po‑ Higher Education. Responsibility for designing and land’s innovation policy for the coming years in‑ implementing policy for demonstration, technology clude the promotion of the green economy, includ- development, and diffusion is spread across sectoral ing building the Green Innovation Hub, support for ministries (IEA 2022). Sectoral ministries also fund activities aiming at achieving a zero-emission econ- small-scale research programs and projects. omy, and environmental clauses in trade agree- The Ministry of Climate and Environment over‑ ments and public procurement.10 Poland has also sees public policies policy for the energy sector been implementing smart specialization strategies and for most programs funding energy-related and supportive programs, as a policy approach that demonstration and development projects. The complements horizontal innovation policies with ministry is also responsible for rational forest man- vertical and cluster policies to support competitive agement and effective use of natural resources. The advantages in regions (Piatkowski et al. 2014; Szczy- Ministry of Economic Development and Technology gielski 2019). is responsible for setting Poland’s overall innovation The budget for R&D consists of national, re‑ policy and managing interventions aiming to en- gional, and EU funding. Research, development, and hance business R&D. innovation activities are funded within different op- The Ministry of Science and Higher Education is erational programs. Grants are offered through open responsible for financing basic and applied re‑ calls by agencies subordinate to the Minister of Sci- search projects, experimental development, ad‑ ence and by other nongovernmental institutions and vanced human capital, training (PhDs), and research the private sector. R&D units are also largely sup- infrastructure. It also deals with international co-op- ported by the European Structural Funds and eration and technology transfer. The Ministry of De- Framework Programs such as Horizon 2020 (2014– velopment Funds and Regional Policy plays a key 2020) or Horizon Europe (2021–2027). In Poland, there is no overarching strategy for green or environment- related R&D or green innovation, and no single entity with responsibility for it 10 3 RESEARCH AND GREEN INNOVATION POTENTIAL: A DIAGNOSTIC FOSTERING GREEN INNOVATION IN POLAND GDP) were performed by private sector enterprises 3.1. General Trends in R&D and 35 percent were related to the higher education T Investment sector (Higher Education R&D or HERD was 0.48 he country’s investment on R&D has percent of GDP), with the rest primarily being un- been expanding over the years, and in dertaken in the public sector. 2020 it amounted to 1.39 percent of GDP In terms of funding, the business and govern‑ (figures 1 and 2). Despite the significant ment sectors accounted for 50.6 percent and 39 per‑ rise in R&D intensity experienced in the last two de- cent of gross domestic expenditure on R&D in cades, this figure remains below EU and OECD av- 2020, respectively. Slightly more than half of the en- erages. Gross domestic expenditures on R&D in Po- tities involved in R&D projects financed their expen- land rose from 0.64 percent of GDP in 2000 to 1.39 diture from internal funds, 94.5 percent of which be- percent in 2020, mostly driven by business R&D ex- longed to entities from the business enterprise sector. penditures (figure 2). This is far from Poland’s NECP The structure of domestic expenditures on R&D target for overall R&D spending to reach 2.5 percent projects is mostly dominated by experimental devel- of GDP by 2030. Currently, Poland holds the 18th po- opment (51 percent of gross expenditures), 92 per- sition in terms of R&D intensity of investment—out cent of which was performed by the business sector. of 27 EU countries. Basic research accounted for 33 percent of gross R&D Although Poland lags the EU average in terms expenditures, and applied research for 16 percent, of R&D intensity, its composition somewhat re‑ with a leading role of the higher education sector.11 sembles EU leaders: the business sector has the larg- Despite significant recent increases in public est share in terms of performing R&D investment—as R&D budgets, Poland still spends relatively little opposed to government and non-profit sectors. Out to support R&D for renewable energy and low-car‑ of the total expenditures incurred in 2020 (PLN 32.4 bon technologies (IEA 2022). In 2020, it spent 0.015 billion), 63 percent (amounting to 0.88 percent of percent of its GDP on energy-related R&D, the Despite significant increases in public R&D budgets, Poland still spends relatively little to support R&D for renewable energy and low-carbon technologies Figure 1:  R&D expenditures in Poland compared to EU and OECD averages Gross domestic spending on R&D as % of GDP` 3.0 2.7 2.4 2.1 1.8 % of GDP 1.5 1.2 0.9 0.6 0.3 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 EU27_2020 OECD POL Source: OECD (2021). 12 3.  Research and Green Innovation Potential: A Diagnostic Figure 2:  R&D intensity in EU member states by sector of performance, 2020 Gross domestic spending on R&D as % of GDP 4.0 3.5 3.0 2.5 % of GDP 2.0 1.5 1.0 0.5 0 ia ta Bu via C ia s m p. Li urg Ire ia Cr d Po ia nd n G ly H ce Po ary E al ec nia Sl ep. N ia Fr y e s ro ) Ic a Fi d D and G ark Au y Be ria Sw m en Eu 020 ov ru om d a an e ai nc n an Ita an ar n t g en al iu xe e w e (fr rlan Ar oa st ed la la t Sl yp ua Sp Cz sto g m rtu Lu ak R R bo m La re a M lg lg el nl or m ov 2 un en h th er Ro 27 he EU et N Business Government Higher education Private Non-profit Source: OECD (2021). Although Poland lags the EU average in terms of R&D intensity, its composition somewhat resembles EU leaders seventh-lowest share of GDP for energy-related issues according to the Polish Statistics Office (GUS), R&D among member countries of the International and this is bolstered by EU Cohesion funds (IEA Energy Agency (IEA 2022) and notably lower than 2022). the IEA average of 0.04 percent of GDP. Further- Figure 4 reports the evolution over time in gov‑ more, R&D for technologies related to fossil fuels ernment budget amounts (constant US$ PPP 2015) represented the largest share (within energy R&D): allocated to environmental and energy R&D. almost half (47 percent) of the public budget on en- Funding in these two areas drastically contracted in ergy R&D went to fossil fuels (mostly for coal), fol- 2019—before the pandemic appeared—and have lowed by energy efficiency (17 percent), cross-cutting slightly improved over the last two years. Until technologies (12 percent), renewables (10 percent), 2018, Poland used to invest relatively more in envi- other power and storage technologies (9 percent). ronment R&D (as a share of total government bud- The importance of environmental research has get allocated to R&D) than the OECD average. How- been recognized by the Polish Government since ever, since 2019 this investment has declined the early 2010s, but financial support eventually significantly and in 2021 represented only 1 percent contracted over time (figures 3 and 4). The share of of total government budget for R&D (the OECD av- the government budget for R&D dedicated to envi- erage was twice as large). On average, OECD coun- ronmental topics (as a socioeconomic objective) fell tries have invested much more intensively in energy from about 6 percent in 2012 to less than 2 percent in R&D than Poland (as a share of total government 2021. Overall, Poland spends 2.9 percent of its GDP— budget and in relative terms). Furthermore, in 2021, approximately US$17 billion—on environmental energy R&D drastically contracted in Poland by 13  FOSTERING GREEN INNOVATION IN POLAND Figure 3:  Government budget for environmental R&D, 2012 and 2021 As % of total government budget 0.08 Share of total government budget (%) 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 a es Be nd he m s Au l D tria Po k Es d a ng n m ce Cz em nd Re rg ic N n ay Fi ly d in Re ea G blic G y H ce Po ry ov l ia ia ae ga nd ar an ni ni de pa n an bl Ita en tv a ga iu do u at w an e ak Kor la la a ua Isr to Sp m rtu s ec bo m pu pu La rla re lg Lu Irel Ja nl ite Swe or St er un Fr en th er itz Sl d Ki Li ite et Sw x h d N Un ov Un Sl 2012 2021 Source: OECD MSTI Statistics, OECD.Stat. (https://stats.oecd.org/#). Data extracted on June 15, 2022. The importance of environmental research has been recognized by the Polish Government since the early 2010s, but financial support eventually contracted over time Figure 4:  Evolution in government budget for environmental and energy R&D Total amounts (USD PPP 2015) and shares in total government allocation (R&D) 0.15 400 % R&D aimed at Environment (in total government budget Shares of total government budget for R&D (%) allocation for R&D) % Energy R&D (in total budget Total amounts (USD PPP 2015) 300 allocation for R&D) 0.10 Average % allocated to R&D for Environment in OECD 200 Average % allocated to R&D for Energy in OECD (approximate) 0.05 100 Government Budget allocation for R&D for the Environment (2015 USD PPP) Government Budget allocation 0.00 0 for R&D addressing Energy 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (2015 USD PPP) Source: OECD.Stat (https://stats.oecd.org/#). Data extracted on September 29, 2022. Note: Government budget allocations in expenditure level are reported in constant USD PPP 2015 on the right axis; shares (%) in total government budget for R&D are shown on the left axis. Government total includes government university funds (GUF). 14 3.  Research and Green Innovation Potential: A Diagnostic around 0.05 percent, which positions it largely be- ranked 18th out of 29 countries analyzed in Horizon hind the average trend in developed countries. Dashboard (2022). In Poland, R&D personnel in all There is no clear explanation for the reduction sectors account for about 1 percent of the total labor of funding for R&D aimed at addressing environ‑ force, whereas the EU average is 1.4 percent. mental needs. Since there have been no policy Poland employs more full-time equivalent (FTE) changes, such trends may be due to the lack of suc- researchers in higher education than the EU aver‑ cess of project applications focusing on the environ- age. According to Eurostat, in 2020, most of Poland’s ment (which were grouped with other thematic ar- FTE researchers (50.8 percent) worked in higher ed- eas), but it may also reflect the lack of specific ucation institutions, whereas about 2.6 percent of requests and/or the capacities of potential appli- FTEs were employed in the government sector. By cants and research performers to develop and imple- contrast, in EU countries, on average, more than half ment relevant projects. However, the revision of (55.4 percent) of researchers (FTE) were employed in R&D grants administrative data suggests that fund- business enterprises, 32.6 percent in higher educa- ing for R&D in environment and climate change has tion, 11.1 percent in government entities, and the rest been much larger than what budget indicators sug- in the private non-profit sector. gest (NCBR 2020). Since 2011, funding for green However, the share of Poland’s employees work‑ R&D projects in higher education related to climate ing in science and technology (human resources in change accounted for PLN 84 million,12 or roughly 3 science and technology—HRSTC) is slightly higher percent of annual R&D expenditures in Poland.13 than the EU average, indicating a strong basis for To date, there have been 219 projects focused on R&D and engineering activities. In Poland the share climate change research across the main funding of HRSTC in the labor force is around 24 percent, sources in Poland. Less than half of these projects whereas in the EU it reached 22.6 percent in 2020.15 (102) were funded by the main funding bodies (the Another positive point is that the gender gap in Po- National Science Centre (NCN) and the National land is somewhat less pronounced than in the EU; fe- Center for Research and Development (or NCBR))— male researchers account for 38 percent of the total, which are in large part funded by the EU funds.14 compared to 33 percent (in 2019) on average in the EU. Roughly, one-quarter of projects (58) were funded The number of R&D personnel in natural sci‑ by various ministerial subsidies for maintaining re- ences and engineering in Poland increased steadily search potential or contracted research schemes between 2010 and 2018 (figure 5). Nevertheless, the funded by the Ministry of Education and Science. number of Polish researchers involved in climate re- Upon further examination, ministerial climate search at any level of intensity is below 500.16 Polish change research has more Polish sponsors than the scientists are dispersed across the country and in traditional NCN, although the participation in EU- different institutions; only the Polish Academy of funded projects in the area remains limited. Sciences and a handful of universities have a signif- icant number of scientists active in climate action research. 3.2. Human Resources in R&D The limited number of researchers in part re‑ flects the low share of graduates in science, engi‑ The number of researchers in Poland has been neering, and mathematics (STEM) fields (figure 6). steadily increasing since 2010, but they still mostly In Poland, 21 percent of total tertiary education work in the higher education sector. Poland has graduates in 2019 were in STEM fields, compared to 3,017 researchers per million of population and is close to or higher than 30 percent in leading The number of researchers in Poland has been steadily increasing since 2010, but they still mostly work in the higher education sector 15  FOSTERING GREEN INNOVATION IN POLAND Figure 5:  Number of R&D personnel in natural sciences and engineering fields in Poland by function (FTE) As % of total government budget 120,000 100,000 Full time equivalent 80,000 60,000 40,000 20,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Researchers Remaining total internal personnel Source: OECD (2021). The limited number of researchers in part reflects the low share of graduates in science, engineering, and mathematics (STEM) fields Figure 6:  Share of graduates from science, technology, engineering, and mathematics (STEM) programs in tertiary education in 2019, both sexes (percent) 40 35 30 Share of graduates (%) 25 20 15 10 5 0 ly ta ia en n te d nd d Cz e Sl ay Sl ce Ro d er a he m ia ia ia Li hia ry G n Fi a Sw ia ia k y nd s Bu g o xe nd ar an ri i i c e gr n Sw elan an ur Ita tv ar ak rg en n an a ga al iu w an e st ed M cela la la Sp ec ua m bo ne La m re M lg Lu rla lg eo nl or ov m Au ov Po un er Fr th Ir Be N m G itz I H D G on et N Source: UIS Statistics, UNESCO. 16 3.  Research and Green Innovation Potential: A Diagnostic innovation countries such as Germany, Austria, or Finland. Therefore, the deployment and use of new EU 3.3. Scientific Performance funds for green innovation and climate change under A simple approach is used in this report to analyze the RRP will inevitably face constraints in terms of the Poland’s performance in scientific research related pool of scientists (S&T) and engineers in Poland. to sustainability and the environment. We use two According to Vona et al. (2015), “green skills” will general categories (subject areas) provided by the be in huge demand in the coming years, notably be‑ SCImago Journal & Country Rank19 (SCImago 2022) cause of tighter environmental regulations.17 Accord- based on bibliometric data from Scopus: environ‑ ingly, demand for scientists and engineering profes- mental science and energy-related research. The sions is expected to significantly increase with more former covers sub-areas such as ecology, ecological stringent carbon-emission policies: a target of a 50 modeling, environmental chemistry, environmental percent emission reduction entails a 9.5 percent in- engineering, pollution, waste management and dis- crease in demand for scientists and a 4.5 percent in posal, management, monitoring, and policy/law, demand of engineering professions. Thus, accom- among other fields. The latter contains sub-catego- plishing the targets related to carbon emissions will re- ries concerning renewable energy, nuclear research, quire rapidly expanding the supply of S&T specialists. and fuel research, among others. For some indicators, The prospects for increasing the number of stu‑ we provide the total average for all fields (for exam- dents in STEM university careers are positive (World ple, international collaboration and citation impact). Bank 2022). Recent reforms in the Polish education According to data from SCImago (2022), publica‑ system resulted in a growing pool of talented stu- tion activity by Polish researchers in environmental dents entering higher education (Klincewicz et al. science and energy-related research dramatically 2017; PSF 2017). By 2015, the percentage of Polish increased over the last two decades. In line with in- students ranked third among EU countries for ternational trends, the importance of research dedi- achieving the two top proficiency levels in science cated to environment and energy (within total pub- on the OECD’s Programme for International Stu- lications) has increased persistently over time in dent Assessment (PISA) (World Bank 2022). These Poland (figure 7): in 2021, these two disciplines rep- top students are likely to go into STEM professions resented about 9 percent and 6 percent of all publi- and hopefully support the green transformation. cations, respectively. Between 2000 and 2021 the Other skills are also required for implementing number of documents published in environmental the green transformation. The green revolution is science multiplied by seven whereas in energy re- leveraging new sectors, and with them new job de- search publication activity multiplied 17 times. A mands and opportunities.18 To address demands for noteworthy expansion has prevailed, despite the green skills, in addition to S&T competences, uni- contraction in government budgets allocated to en- versities and colleges are preparing people skilled in vironmental R&D discussed previously. new disciplines such as conservation, environmen- Poland does not show a high level of energy re‑ tal and sustainability management (waste, water search, in terms of specialization or how much a and wastewater, natural resources), and others. De- country (or region) favors a given field over the mand for digital expertise in fields such as computer rest.20 The country is starting to display, however, science, information technologies, and artificial in- certain specialization in environmental science telligence is also multiplying, and these skills are (index equal to 1.15) according to publication data expected to be key catalyzers of green transitions for the year 2021 (figure 8). In this field, countries and innovation. such as Lithuania and Estonia display an index of Publication activity by Polish researchers in environmental science and energy- related research dramatically increased over the last two decades 17  FOSTERING GREEN INNOVATION IN POLAND Figure 7:  Evolution in the number of scientific publications (documents) in environmental science and energy research published by Polish researchers, 1996–2021 6,000 0.12 5,000 0.1 Number of scientific publications Number of scientific publications 4,000 0.08 3,000 0.06 2,000 0.04 1,000 0.02 0 0 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Publications in Environmental Science Publications in Energy Research % of Energy Research in Total Publications % of Environmental Science Publications in Total Publications (by Polish researchers) (by Polish researchers) Source: SCImago (https://www.scimagojr.com/countryrank.php?area=2300). Poland does not show a high level of energy research, in terms of specialization or how much a country (or region) favors a given field over the rest Figure 8:  Specialization index, environmental science and energy-related research, 2021 2.5 2.0 Specialization index 1.5 1.0 0.5 0 ia de ria th n Es a D nia Ro rk N ia Po ay Po l Cr d Sl ia Fi a d Sw n Sl en G a e ly Cz Ge ry y ng c Be m m a s ce d nd ga nd an i ni i i et stri tio ai ec n an Sw elan Ita bl tv an t ak en a ga do iu w an a oa ed la la ua to Sp m rtu ec rm La ite epu re rla lg lg nl ra or ov m Au ov er un Fr en Bu Ir he itz H Ki Li Un h R Fe d N n ssia Ru Energy Research Specialization index Environmental Science Specialization index Source: SCImago (https://www.scimagojr.com/countryrank.php?area=2300). 18 3.  Research and Green Innovation Potential: A Diagnostic specialization close to 1.5; while Finland, Spain, Por- Scientific productivity by Polish scientists in tugal, and the Slovak Republic report an index environmental research is relatively high. A rough around 1.25. measure of scientific productivity of researchers in Poland ranked 11th of 38 (reporting) OECD coun‑ environmental research is the number of publica- tries in terms of number of documents published tions per government R&D allocated to environ- in environmental science for the years 2021–22 ment (see figure 9). Accordingly, scientific produc- (Scimago 2022). In energy related research, Poland tivity by Polish scientists in this discipline is appeared at the 14th position over the same period. high—within the group of countries for whom data In this discipline, noteworthy sub-categories include were available. Poland ranked just between Estonia “renewable energy, sustainability, and the environ- and Switzerland at the top of European countries in ment”, where Poland ranked 9th for the year 2021 in 2021. However, note that the bulk of Poland’s publi- terms of publication output—a significant increase cations appear in Polish journals, in Polish, which from 2018 when it scored at the 25th position. Over- limits their international impact. all, in clean energy research, Poland ranks 21st glob- ally in terms of scholarly output. These trends suggest Scientific Fields a potential for using such research outputs for green technology development and innovation However, Within energy-related research (subject area), as we will see next, the associated impact is weak. about a third of publications by Polish researchers In Central and Eastern Europe, Poland ranks in fall in the discipline of energy engineering and the top three performers (publication counts) in power technology, and a third belong to renewable several fields of environment-related research. energy and sustainability—according to publication From 2011 and 2020, Poland was the second largest activity registered in SCOPUS for the years 2020–21 producer of climate action research in Central and (citable documents only are considered). We observe Eastern Europe, behind Russia. that Polish researchers are strongly active in research Scientific productivity by Polish scientists in environmental research is relatively high. Figure 9:  Scientific performance in environmental research Number of scientific publications per government R&D expenditure allocated to environmental issues, 2021 300 Number of scientific publications 250 200 150 100 50 0 y e ce n ly ry ay ia p. ic d m en l m k d s ria nd nd a ga nd an ar ni ec ai an an Ita bl en ga do iu Re w an st ed la la Sp to m rtu m pu re rla lg nl l or Au ov Ire er Po un ng Fr en Es Sw k er G Fi Be Po N he Re a itz Sl H Ki D G ov et Sw h d Sl N ec ite Cz Un Source: SCImago (https://www.scimagojr.com/countryrank.php?area=2300). Note: Data on government budget for Environment Research corresponds to year 2019 since we need to consider a time lag for publication creation. Metrics based on Scopus data as of April 2022. 19  FOSTERING GREEN INNOVATION IN POLAND associated with fuel technologies (20 percent of pub- Overall (for all science fields combined), Po‑ lications in energy research fall in this category). land ranks in the group with lower scores in terms In the area of environment-related research, Pol‑ of shares of publications in the top 10 percent ish scientists publish most intensively in the sub-dis‑ most-cited publications (EC 2022). In 2018 (with a cipline of pollution-related research (16 percent of citation window of 2018–20), about 5 percent of Pol- total environment publications). This is followed by ish-authored scientific publications were highly the “miscellaneous” sub-discipline, at 15 percent of cited, that is, falling in the category of top 10 percent total environmental research. most cited. Although this ratio is low compared to the average EU (9.9 percent), this is a dramatic in- crease from the figure reported for 2008 when Po- Quality of Research land had only 2.8 percent. Despite increased publication activity, the quality The quality of Polish publications in environ‑ of Polish science as reflected in citation impact in‑ mental research also ranks low within the EU, in dicators remains low—which limits opportunities terms of the H-index21 and the number of citations for technology development and innovation (see fig- received per publication (figure 10). Publications ures 10–12). The total number of articles published with a field-weighted citation impact (FWCI) index by Polish researchers in high-impact journals in- of higher than 1.5 come only from one research orga- creased sharply over the past decade, but this has nization—the Soltan Institute for Nuclear Studies not yet affected the quality of environmental re- (FWCI = 1.52). A similar pattern is noted in energy search, research related to climate change, or re- research (figure 11). Overall, Polish institutions search on new sources of energy (see citation indica- struggle to compete with the top 100 institutions tors in renewable energy research in figure 12). worldwide and in Europe. Despite increased publication activity, the quality of Polish science as reflected in citation impact indicators remains low Figure 10:  Quality of environment-related research H-index and citations per publication, 1996–2021 40 900 35 800 700 Citations per document 30 600 25 H index 500 20 400 15 300 10 200 5 100 0 0 Po nia ec Slo nd pu a Ja ic n So Tu ile h ey un a ov y Lu or nia bo l Es urg a er ly G ny Ire e Sp d Ic in d Fr el Ca nce N A da Un Ze tria d nd st s Fi lia N nd ite Be ay ng m Sw om e n N en nd rla k s m ga Au ate nd Sl gar he ar Re ki H ore ni pa ec itz de n an bl G Ita a a Ki iu ra w Ch ut rk a na la la ite ala a D rla h va a e to Isr et m xe tu s d m re a d lg el nl or Sw e u St ew u K th P Li Cz Un Citations per document H index Source: SCImago (https://www.scimagojr.com/countryrank.php?area=2300). Note: The indicators reported correspond to the publication years 1996–2021 based on Scopus data as of April 2022. 20 3.  Research and Green Innovation Potential: A Diagnostic Figure 11:  Quality of energy research H-index and citations per publication, 1996–2021 30 600 25 500 Citations per document 20 400 H index 15 300 10 200 5 100 0 0 ec Slo via pu a Po lic Es nd th ia Ic nia H land Ja ry Sl pan N nia Au ay ria Lu erm ly So mb ny h rg Un Po rea St l Fr es Fi ce N e nd ite Ze um ng d Ca om Tu a Sp y n N us el rla a G ds Sw we e er n en d Ire rk nd d ga e Re ki d he li ai S c itz de Ki an D lan G Ita Li on A ra ga a ut ou b at w et tra xe a an rk n e st na la a la t h va ua e m ite rtu Ko Un w lgi d La re Is nl d al or ov t e un B e Cz Citations per document H index Source: SCImago (https://www.scimagojr.com/countryrank.php?area=2300). Note: The indicators reported correspond to the publication years 1996–2021 based on Scopus data as of April 2022. Overall (for all science fields combined), Poland ranks in the group with lower scores in terms of shares of publications in the top 10 percent most-cited publications Figure 12:  Quality of research in renewable energy, sustainability, and the environment (sub-category of energy research) H-index and citations per publication, 1996–2021 40 500 450 35 400 30 Citations per document 350 25 300 H index 20 250 200 15 150 10 100 5 50 0 0 Sl tvia ec Po ia Re nd Ic lic Li nd Es ia H nia Po ary N Slo al Ze nia N nd ay m ly Fi rg Au d ria Ja n er n Fr y Be ce ite Ir m ng d G m Un Aus ce d lia Ca tes N we a he en en s itz ark nd D nd an S d ai G pa an Ki n xe Ita ak n g iu do u b w ite tra an e st et d na la a a d ela la ua to ew ve Sp a g Sw m rtu bo m La pu re rla lg el al nl or ov St er un th h Lu Cz Un Citations per document H index Source: SCImago (https://www.scimagojr.com/countryrank.php?area=2300). Note: The indicators reported correspond to the publication years 1996–2021 based on Scopus data as of April 2022. 21  FOSTERING GREEN INNOVATION IN POLAND The Polish Ministry of Education and Science relevant in research fields related to national speci- has taken steps to address the low citation impact ficities such as language studies and history or ad- of Polish publications and the widespread pub‑ dressing local topics of research). Nevertheless, in- lishing in low-impact journals.22 For instance, in its creased emphasis in international peer-reviewed national excellence initiative IDUB (“Excellence Ini- publications and international collaboration (co-au- tiative–Research University”), new research indica- thorship with foreign researchers) are key to im- tors are required to monitor progress at universities proving the quality of Polish research in such areas. participating in the funding program.23 To date, re- Evidence has shown that international collabo‑ searchers continue publishing mostly in Polish, ration is associated with increased quality of re‑ probably due to insufficient institutional incentives, search. International co-publications gain, on aver- including parameters in the research evaluation per- age, more citations than domestic co-publications formance frameworks. In certain fields of research, (Kohus et al. 2022; Puuska et al. 2014).24 Evidence the evaluation currently favors publication in do- also exists about the “bonus” in citation impact from mestic journals (higher points). international mobility (Abramo et al. 2011) and insti- The lists of academic journals indexed in both tutional collaborations (Adams et al. 2005). At the Web of Science and Scopus databases are widely university level, being engaged in international re- accessible across Polish institutions. The location search collaboration improves research perfor- of publications in both databases determines (to- mance, deepens academic networks, and help dis- gether with other funding-related and third mis- seminate solutions to the world (Zhang et al. 2022).25 sion-related indicators) the categories to be reviewed In Europe (and worldwide), not surprisingly, sci‑ in the national research evaluation in 2022. This will entific publications are increasingly taking the determine selected institutional rights (for example, shape of international co-authorships. In Europe the the right to run doctoral schools and the right to growth in publications in major European systems is award doctoral degrees) and the level of institu- almost entirely attributable to internationally co-au- tional (block) funding for research. thored papers (Kwiek 2021). Polish researchers, how- Globally relevant research areas need to pay ever, are weakly involved in international research. more attention to publishing in international Figure 13 below displays how Polish university peer-reviewed journals—which define the global researchers rank compared to other EU countries in forefront in research. The importance (or higher im- terms of intensity of long-distance co-publica‑ portance) of domestic journals in research evalua- tion—in all science fields based on data from the tion needs to be acknowledged—and is particularly Centre for Science and Technology Studies (CWTS) Figure 13:  Research collaboration by universities: share of publications involving international collaboration Long-distance co-authors for all science fields, 2016–19 40 35 CWTS Leiden Ranking 2021 30 25 20 15 10 5 0 Poland Slovenia Slovakia Romania Czech Republic Hungary Spain Austria Belgium PP_long_dist_collab PP_short_dist_collab Source: CWTS Leiden Ranking 2021 based on Web of Science. Note: The ranking includes 1,176 universities worldwide. These universities have been selected based on their number of Web of Science indexed publica- tions in the period 2015–18. 22 3.  Research and Green Innovation Potential: A Diagnostic Engagement in interdisciplinary research is critical to addressing complex innovation demands related to green innovation and climate change Leiden Ranking 2021 (Center for Social and Technol- domestically). In some cases, defining projects re- ogy Studies 2021).26 Countries such as Slovenia, the quires preliminary data (and research), which re- Slovak Republic, the Czech Republic, and Hungary quires an initial funding for preparatory work (in report much higher rates of international research the U.S. and U.K. universities, this is provided by collaboration. A report by the EC (2016) also showed internal research funds). that, unlike countries such as Austria, Belgium, Swe- A Poland country profile (Horizon Dashboard den, and Denmark, which actively participate in in- 2022) shows that few universities currently have a ternational scientific networks, Poland, Romania, unit or department to help researchers search for Croatia, and Latvia still produce their scientific out- funding (EU and other sources, abroad and domes‑ puts mainly at the national level. tic) or to assist with project preparation to compete Setting the right incentives for international col‑ in EU research funding programs. In parallel, fur- laboration in science is key for both quality and ad‑ ther attention should be given to participation in vancement of research. Researchers collaborate inter- research projects related to green innovation and nationally when it enhances their academic prestige, climate change goals. These thematic challenges scientific recognition, and access to research fund- may also be considered in evaluation performance ing, as indicated by the credibility cycle, prestige max- systems—as part of general goals for the Sustainable imization, and global science models (Kwiek 2021). Development Goals (SDGs). Engagement in interdisciplinary research is critical to addressing complex innovation demands related to green innovation and climate change. 3.4. Patenting in Green Evidence has shown that the research behind envi- Technologies ronmental technologies tends to be interdisciplinary. It often relies on a large set of engineering and sci- Patenting activity related to the environment and ence competences, including expertise from social energy efficiency is rather low in Poland and has sciences. For instance, harnessing of renewable en- declined in recent years. According to Horizon ergy sources to replace fossil fuels requires the syn- Dashboard (2022), Poland has 0.8 environmental thesis of knowledge from engineering, technology, patent applications for every billion euros of GDP and natural and social sciences. (in current purchasing power standards), whereas Both interdisciplinary research and interna‑ the EU average is 3.3 applications. tional collaboration are fundamental aspects in Patenting performance is also weak in environ‑ new research policies to target green innovation mental technologies.27 On average, Poland files and sustainability. For universities, there is a need about 40 patents yearly in the field of environ- to adjust undergraduate and post-graduate educa- ment-related technologies; this figure is derived tion (including PhD training) to develop effective from patent applications processed through the Pat- collaborative thinking in science and engineering to ent Cooperation Treaty (PCT) based on data from address complex challenges. the OECD Patent Statistics (OECD 2022). This is However, participation in international projects higher than the average for Eastern and Central Eu- is challenging for researchers. Polish researchers rope, but far below levels in Western European require further support in project preparation (espe- countries (about the for example, only 10 percent of cially for EU funding programs) especially regard- the number of patents filed by Denmark or Italy— ing connecting with suitable partners (abroad and figure 14). From the early 2000s until 2015, Polish 23  FOSTERING GREEN INNOVATION IN POLAND Figure 14:  Number of PCT patent filings in environment-related technologies, selected EU countries, 2005–19 450 400 Number of patents under PCT 350 300 250 200 150 100 50 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Austria Czech Republic Denmark Italy Poland Portugal Source: OECD (2022), accessed June 2022. Note: The indicator is based on the count of PCT patent applications filed by priority year and inventor country. Patenting activity related to the environment and energy efficiency is rather low in Poland and has declined in recent years inventors demonstrated an increasing capability and energy substitution and efficiency, Poland does not interest in filing patent applications internationally, as have a revealed technological advantage in these reflected in patent filings registered through the PCT. areas yet. However, this trend was followed by a decline. In terms of PCT filings, the technology area According to the indicator of Revealed Techno‑ where patenting activity by Polish inventors is logical Advantages (RTA) based on patent data most intensive (figure 16) is environmental man‑ (PCT applications), Poland is not specialized in agement, followed closely by patenting in climate environmental technologies (figure 15). More than change and mitigation technologies related to en- half of EU countries have increased their level of en- ergy generation (which includes solar and geother- gagement in these technologies and in 2019 reported mal), transmission, or distribution. The third most RTA indexes superior to one, meaning increased patented area concerns mitigation technologies in specialization in such fields. Poland showed tech- the production or processing of foods. Also notice- nology specialization (RTA index above one) in these able is PCT patenting in technologies related to fields two decades ago; however, this number wastewater or waste management. should be interpreted with care given the low num- Finally, patenting in environmental technolo‑ bers of patents. gies by Polish inventors shows little international Within environmental technologies, Poland R&D collaboration (figure 17). Collaboration is specializes in patents related to wastewater pro‑ even lower than in other small EU countries. Foster- cessing, recycling, and solar and geothermal power ing collaboration in R&D with foreign institutions (World Bank 2022). Even if half of the green patents and corporations is key to technological catching up granted to Polish applicants in 2000–19 is related to and accelerating green technology development. 24 3.  Research and Green Innovation Potential: A Diagnostic Figure 15:  Specialization in environmental technologies, PCT patent filings RTA index in environmental technologies 3.0 RTA index in environmental technologies 2.5 2.0 1.5 1.0 0.5 0 a nd l nd l nd ly n om ld s n ry a um da ic Sw a Fi n d er e y Re ia N ic Es y D nia k ae ga nd an a ar ni ni re pa ai e c an Ita bl bl r ga or w an st ed na la la la ua Isr Sp ve to m rtu Ko gi gd m pu pu rla Ja nl or W ov Au er Ire Po un Fr en Ca l lo th Be Po n he Re itz H Es Ki Li G et Sw h ak d N ec ite Cz Un Sl RTA 1999 RTA 2019 Source: OECD (2022), accessed June 2022. Note: The indicator is based on the count of PCT patent applications filed by priority year and inventor country. Poland specializes in patents related to wastewater processing, recycling, and solar and geothermal power Figure 16:  Evolution in the number of PCT patent filings in environmental technologies, by type of technology 35 RTA index in environmental technologies 30 25 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Climate change mitigation technologies related to buildings Climate change mitigation technologies related to transportation Climate change mitigation technologies related to energy Climate change mitigation technologies in the production generation, transmission or distribution or processing of goods Capture, storage, sequestration or disposal of Climate change mitigation technologies related to wastewater greenhouse gases treatment or waste management Environmental management Source: OECD (2022), accessed June 2022. Note: The indicator is based on the count of PCT patent applications filed by priority year and inventor country. 25  FOSTERING GREEN INNOVATION IN POLAND Figure 17:  International collaboration in environmental technologies Percent of PCT patents invented with other countries 100 90 80 Percent of PCT patents 70 60 50 40 30 20 10 0 ng y he el ov n a Po ia n d ce G and Be ria d Sw ia N d itz ce th y Re da Fi n Es al ry a G m un a Un Fr y Re ark nd Au s g es ic ic D om Ki Ital a re nd an i pa i i e xe lan an ur tv n et sra a g en n ga bl bl iu w ite an Sw ee at st ed a la Sp to ua ak m Ko rtu La bo m d ec an Ja lg rla l nl pu pu or Po Lu re St er I r ov en er C m I Sl H Li h d N ite Cz Un Sl 2009 2019 Source: OECD (2022), accessed June 2022. Note: The indicator is based on the count of PCT patent applications filed by priority year and inventor country. Polish universities have gradually increased their focus on “third mission” engagement, notably in terms of knowledge transfer and academic entrepreneurship Collaboration on R&D and technology devel‑ technology transfer centers whose mission is sup- opment is pertinent to both addressing global cli‑ porting research staff and students in exploitation of mate change and regional concerns such as pollu‑ their research results, including collaboration with tion. Importantly, international collaboration in industry and entrepreneurial activities. Academic research and technology can help local businesses incubators supporting entrepreneurial activities take advantage of existing technologies (for exam- have multiplied across the country. ple, to help build local absorptive capacity). This in However, science-industry collaboration for turn helps increase the uptake of clean technologies green innovation29 and climate research is rare and globally (OECD 2017). is also underdeveloped in other fields. In 2020, only 2.2 percent of articles in the field of climate re- search were published as academic-industry collab- 3.5. Knowledge Transfer and oration, compared with 6.4 percent in Germany, 5.7 Industry-Science Collaboration percent in the United Kingdom, 4.5 percent in the United States, and 4.0 percent for the EU-27 (SciVal Polish universities have gradually increased their 2022). From the industry side, there have been only focus on “third mission”28 engagement (Trencher 18 corporate publications in this field of research be- et al. 2014) notably in terms of knowledge transfer tween 2011 and 2020. and academic entrepreneurship. Many Polish uni- University research collaboration with industry versities have established special units called (over all science fields) is low. According to data 26 3.  Research and Green Innovation Potential: A Diagnostic from the CWTS Leiden Ranking (CWTS 2021), on aggregate level (all types of R&D area and sectors). average, only 5 percent of scientific publications by Data for the year 2020 (Eurostat 2022) shows that, the five leading Polish universities involve partners within innovative enterprises (who carried R&D or from companies, the lowest ratio for European coun- other innovation activities), the percentage of Polish tries reporting data (figure 18). In contrast, in Nordic enterprises who engaged in cooperation activities countries such as Sweden or Denmark, about 8.5 with other enterprises or organizations was below percent of publications are university-industry col- the EU average. Only 22 percent of Polish innovative laborations. Research in affordable and clean energy firms engaged through collaborative R&D or inno- is also produced in the corporate sector, but the num- vation projects; and this share was lower (20 per- ber of publications remains quite low (although con- cent) in small and medium enterprises (SMEs). siderably higher than for climate action research). A relatively low share of industry R&D funding The lack of industry-science collaboration in re‑ goes to higher education institutions and PROs, search is surprising in the European comparative reflecting the weak connections between industry context and may constrain the future relevance and and science in the conduct of R&D activities (figure impact of environment-related and climate action 19). This is in part due to the lack of alignment in research.30 Statistics from national innovation sur- research interests between the two sectors, but also veys also indicate a lack of cooperative activity at the to difficulties in communicating and contracting The lack of industry-science collaboration in the European comparative context may constrain the future relevance and impact of environment-related and climate action research Figure 18:  Industry-university collaboration in research and proportion of open science, 2016–19 Percent of publications involving industry partners 10 90 % of scientific publications with industry partners 9 80 % Open Science Publications 8 70 7 60 6 50 5 40 4 30 3 2 20 1 10 0 0 nd ia lic n a s m e ay y nd ic s m d k n en ry ria of te nd an ar ni ai nc pa n l an ga do iu ub ub w st ed la la la . Sp e a m ep m a rla lg Ja or m St Au ov Po er n un ng Fr p p en Sw er Fi Be ,R N Ro he Re Re itz Sl d H Ki D G ite a et Sw h ak re d N ec Un te ov Ko Cz i Un Sl % of Scientific Publications with Industry Partners % Open Science Publications Source: CWTS (2021) Leiden Ranking 2021 based on Web of Science. Note: The ranking includes 1,176 universities worldwide. These universities have been selected based on their number of Web of Science indexed publica- tions in the period 2015–18. 27  FOSTERING GREEN INNOVATION IN POLAND Figure 19:  Industry funding of R&D in higher education institutions and government institutions, 2019 Percent of total R&D performed by institutions Percent of total R&D performed by institutions 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 0 th y en e Ca ael ng a n a Ire n un D Ic ey ec Sw d nd O ia a N lov e Re xico Po and ay Ja d Re en G da ry he ia G ium N al Es ia Ko y Fi rk Be nd itz nds Tu g Po lic m lic Au m Li Ital an Ki vi re ni D hil ai pa S ec an an ur EC r et en g n ga a do w b xe ub rk st h ed na la la d Lat Sp Isr to ua m rtu bo m C re pu Sw rla lg l el nl or e er Lu p M er H ak ite ov Cz Un Sl % Higher Education R&D funded by Industry % Government R&D funded by Industry Source: OECD MSTI Indicators, 2022 (https://www.oecd.org/sti/msti.htm). Open science also remains underdeveloped in Polish research compared to peers in other European countries technology services in academia and government institutions. Data are not available for disaggregated 3.6. The Business Sector R&D activity or discipline; only figures for total Achieving carbon-related and sustainability tar‑ funding (all areas combined) are available. gets depends on the willingness and capacity of Open science, which makes research (results, in‑ the business sector to innovate and integrate new puts, and tools) more accessible to society,31 also re‑ green technologies. mains underdeveloped in Polish research as com‑ The Polish business sector has increased its par‑ pared to peers in other European countries (figure ticipation in national R&D investment and today 18). This underperformance is in large contrast with performs 63 percent of R&D investment in Poland. several initiatives to foster open science. However, However, overall innovation capacity still lags the in recent years awareness of open access issues has EU average in different parameters, including per- been rising steadily. In 2016, the Open Science Platform formance in eco-innovation (see Al-Ajlani et al. was launched to promote open research data and open 2021). In this configuration, innovation capabilities science. In March 2018, the Ministry of Science and of SMEs and traditional sectors are key concerns for Higher Education published a report on the imple- productivity and competitiveness (OECD 2020). mentation of an open access policy.32 Improving Overall technological performance of Polish open science in Poland is important for both research firms lags firms from Western European countries. excellence and innovation. Open science makes re- According to a recent study by the World Bank search and innovation systems more efficient and (2022), an average industrial firm in Poland needs creative and can help reinforce scientific excellence three times more staff than its German counterpart and society´s trust in science (Al-Ajlani et al. 2021). to produce the same product. In addition, total 28 3.  Research and Green Innovation Potential: A Diagnostic factor productivity (TFP) growth in the manufactur- innovate. Furthermore, the share of non-innovators ing sector in Poland has stagnated since 2012. This without disposition to innovate is almost twice the EU performance is in large part reflects difficulties in average, indicating that a large share of enterprises innovating and integrating new technologies. The may have difficulty competing in the future. low emission efficiency reflects in part the continued According to a recent assessment by World Bank dependency on high-carbon energy and weak (2022), the adoption and creation of sustainable eco-innovation performance. technologies is not a priority for most Polish firms. Given the size of the economy and its structural Polish manufacturing SMEs spend less than 5 per- features, Poland registers low aggregate emission cent of their annual revenue on green technology, efficiency—which explains the high levels of GHG with 17 percent of firms allocating even less than 1 emissions. Energy and manufacturing sectors emit percent of their annual revenue. Four percent of more than double the amount of GHGs per unit of SMEs invested more than 10 percent of their annual output relative to the EU average, accounting for revenue on implementation of green managerial two-thirds of national emissions. practices and green technologies, but the environ- In Poland and Bulgaria, manufacturing output mental impacts of those activities are unclear and grew faster than improvements in emission effi‑ may vary by company. Design and production of ciency (World Bank 2022). In addition, the manufac- environmentally friendly products (new eco-prod- turing sector has grown significantly over the last ucts) and solutions (eco-design) are the most popular decade—which has further expanded the demand innovations introduced by manufacturing SMEs.33 for energy. Currently, manufacturing represents The weak uptake of environmental concerns in about 90 percent of the value of exports (World Bank the Polish business sector is also reflected in the 2022). However, unlike the energy sector, manufac- low adoption rate of international standards for turing is not covered by structural policies to cut green- environmental management practices (figure 20). house gas emissions. No policies at the EU or national According to data from the International ISO Survey level set emission reduction targets for manufactur- (ISO 2020), the number of ISO-14000 certifications ing enterprises in Poland (Kechichian et al. 2016). issued in 2020 relative to the total number of compa- The relatively high importance of resource-based nies (business population) in Poland is much lower industries, agriculture, and medium-R&D-intensive than in Slovenia, the Slovak Republic, Czech Repub- sectors such as vehicle industries (together about 11 lic, Lithuania, or Hungary. However, the number is a percent of total industrial output) calls for enhanced significant increase from the level reported for 2010. support for R&D demands in these industries. In this According to the Eco-Innovation Observatory ( scenario, cooperation with research and technology Al-Ajlani et al. 2021), the most significant barriers to institutions, as well as with (cleantech) startups, is key. eco­-innovation in Polish businesses are mainly of an According to the European Innovation Score‑ economic nature. These barriers include high cost of board (EIS) 2021, the innovation profile of Polish en‑ implementation, difficult access to capital, uncertain terprises is improving but it is still unfavorable for return on investment, and the weak system of eco- green transition (European Commission and Eco-In- nomic and fiscal incentives encouraging eco-innova- novation Observatory 2021). Poland lags EU aver- tion. Another problem is insufficient knowledge on ages in all analyzed indicators related to product the potential economic benefits from the implemen- and process innovation, innovators that do not de- tation of an eco-innovation. Many companies still do velop innovations themselves, innovation-active not consider eco-innovations as a source of compet- non-innovators, and non-innovators with potential to itive advantage or economic benefit (figure 21). According to a recent assessment by World Bank (2022), the adoption and creation of sustainable technologies is not a priority for most Polish firms 29  FOSTERING GREEN INNOVATION IN POLAND Figure 20:  Shifting to environmental management practices: the use of ISO-14000 standards, 2020 Approximate adoption rate of business certificates in total population (percent) 0.008 Approximate adoption rate (percent) 0.007 0.006 0.005 0.004 0.003 0.002 0.001 0 l d um ce s nd ria a y ia ic a en ry ic n k om ly d ay a nd ga nd an ar ni ni vi ai an an bl bl Ita en ga w an st ed la la t ua Sp to m rtu gi gd m La pu pu rla el nl or Au ov Po er un Fr en Es l Sw th er Ic Fi Be Po N n he Re Re itz Sl H Ki Li D G et Sw ak h d N ec ite ov Cz Un Sl 2010 2020 Sources: Business Enterprise Statistics, Eurostat (total number of formal enterprises); ISO-Survey Database (European countries only reported), several years. According to the Eco-Innovation Observatory, the most significant barriers to eco-innovation in Polish businesses are mainly of an economic nature Figure 21:  Enterprises whose innovation activities have been affected by environmental legislation or regulations, 2018 Percent of total innovative firms 25. 20. % total innovative firms 15. 10. 05. 0. d a a ta ia a ry tia g d m l y e ly a ce a ga an vi i ni i ni nc ur an an Ita an ar en ga al iu e oa t to ua rtu bo m La a re M lg lg l nl m ov Po un Fr Cr Es th er Bu G Fi Be Po Ro m Sl H Li G xe Lu Product safety, consumer protection Environmental Regulation Source: Eurostat, Community Innovation Survey Statistics 2018. 30 3.  Research and Green Innovation Potential: A Diagnostic Along with financial support for technology in‑ education, broadband penetration, and non-pat‑ vestment, it is important to raise awareness of the ent-related intellectual property registration value and utility of new green technologies, and (trademarks and designs). The relative weaknesses the opportunities they can provide for emission effi‑ include lower levels of doctorate graduates, environ- ciency and productivity. Demonstrations of such im- ment-related technologies, enterprise innovation in- pacts are useful, as is coaching in the preparation of vestment per employee, and patenting activity. green transformation roadmaps or plans. Finally, In the area of environmental sustainability (a improvements in managerial competences and digi- category within the EIS)—according to the EIS talization (for example, smart data) are key to the 2022—Poland lags in resource productivity, air green transformation.34 Digital skills such as use of emissions by fine particulate matter, and environ‑ artificial intelligence and the capacity to read and inter- mental technologies. Within climate-change indica- pret data can be considered as green digital skills. tors, Poland shows a low level of performance in Opportunities for fostering green innovation in circular material use rate (slightly lower than the EU collaboration with international partners may ex‑ average) but significantly lags in environmental in- pand with the increased attractiveness of the pol‑ novation, with an Eco-Innovation Index score of 55.5 icy framework. The scheme of R&D tax incentives out of 100. and the expansion of the innovation ecosystem has More detailed perspectives are provided by the increased the attractiveness of Poland as a location Eco-Innovation Scoreboard (European Commis‑ of multinational activity and international R&D cen- sion, Directorate-General for Research and Inno‑ ters. This scheme could also be mobilized for the vation et al. 2022). In 2021, Poland was ranked sec‑ creation of innovation centers for green innovation ond-to-last among the 27 EU member states on the and sustainability in partnerships with international Scoreboard, ahead of Bulgaria (figure 22). Accord‑ actors. The main investors have come from the ing to this methodology, Poland consistently un‑ United States, Poland, Great Britain, Germany, derperforms in all five dimensions of eco-innova‑ France, Finland, Denmark, and China.35 In the years tion performance (figure 23), with slightly better 2014–20, 420 new R&D centers co-financed by the rankings achieved in eco-innovation activities (due to EU (Smart Growth OP) were created. the share of enterprises that introduced innovations with environmental benefits but low in number of firms adopting international standards such as ISO- 3.7. General Innovation and 14000) and resource efficiency outcomes (due to solid Eco-Innovation Performance water productivity, but with weak energy produc- tivity and high GHG emissions intensity). One di- The European Innovation Scoreboard (EIS) 2022 mension for which Poland is in the middle of EU includes Poland in the lagging group of emerging rankings is “turnover in eco-industries” (within the innovators (25th in the EU), with performance at indicator category “socioeconomic outcomes), 60.5 percent of the EU-average (European Commis- which indicates a potential for growing green indus- sion, Directorate-General for Research and Innova- tries. Yet the size of eco-industries is still low al- tion, et al. 2022). The EIS 2022 shows, however, that though rising over time. Employment in these sec- Polish innovation performance is increasing (11.3 tors and circular economy represented 1.02 percent percentage points higher in 2021 compared to 2015; of total employment in 2017, while less than 1 per- and 4.3 percentage points compared to 2021) and at cent of total exports involved eco-industry exports a rate higher than that of the EU (9.9 percentage that year (0.60 percent) (European Commission and points). Improvements over the period 2015–22 in- Eco-Innovation Observatory 2020). clude the fields of process innovation (percent of A closer look at trends between 2012 and 2021 firms reporting such innovation), (expansion of) demonstrates that Poland has consistently under‑ government support for business R&D, and the per- performed in comparison to its peers (figure 24). cent of firms providing training in information and Poland has been slowly improving its performance, communication technologies (ICT). but without any changes in its ranking. Even the In terms of innovation capabilities, the relative lowest ranked performer (Bulgaria) has since 2017 strengths of Poland include (job-to-job) mobility of significantly reduced its gap in relation to Poland. If human resources in S&T, population with tertiary the requirements and opportunities related to green 31  FOSTERING GREEN INNOVATION IN POLAND Figure 22:  Performance of Eco-Innovation Index in 2021, 2020, and 2012 180 160 140 120 Eco-Innovation Index 100 80 60 40 20 0 BG PL MT HU RO CY SK HR LT LV EE EL BE IE CZ SI PT EU IT NL ES FR DE SE DK AT FI LU Eco-I Catching-up Average Eco-I performers Eco-I leaders 2012 2020 Source: Al-Ajlani et al. (2021). Note: Colored columns show countries’ performance in 2021, using the most recent data for 16 indicators, relative to that of the EU in 2012. The horizontal hyphens show performance in 2020, using for all years, the same methodology has been used. The dashed lines show the threshold values between the performance groups, where the threshold values of top 33.3% percentile and 66.7% percentile have been adjusted upward to reflect the performance increase of the EU between 2012 and 2021 In 2021, Poland was ranked second-to-last among the 27 EU member states on the Eco- Innovation Scoreboard, ahead of Bulgaria Figure 23:  Eco-Innovation Index 2021 performance breakdown by theme 0.8 0.7 Eco-index normalized score 0.6 0.5 0.4 0.3 0.2 0.1 0 BG PL MT HU RO CY SK HR LT LV EE EL BE IE CZ SI PT EU IT NL ES FR DE SE DK AT FI LU Inputs Outputs Socioeconomic outcomes Activities Resource efficiency outcomes Source: Al-Ajlani et al. (2021). Note: countries are presented in descending order of the normalized Eco-Innovation Index. 32 3.  Research and Green Innovation Potential: A Diagnostic A closer look at trends between 2012 and 2021 demonstrates that Poland has consistently underperformed in comparison to its peers transition are to be utilized, a stronger response by indicated by doing business climate indicators) and Polish policy makers, researchers, innovators, and en- early finance. trepreneurs and other stakeholders will be needed. The Polish venture capital (VC) market is quite young and continues expanding but faces several constraints. As in other middle-size European coun- 3.8. Startups and Cleantech tries, VC finance is limited, especially for projects at an early stage, and participation by domestic inves- The green transition requires a strong impulse to tors is low. In contrast, growth-stage finance by in- entrepreneurship and the creation and growth of ternational investors has been expanding. In recent cleantech startups. New innovative firms involved years, polish VCs are starting to raise bigger amounts in sustainability and the green economy are key to of private capital and can co-invest at higher rounds. the green transition. Startups are promoters of tech- However, beyond €1 million, startups need to look nological change and help diffuse new technologies abroad. in the economy. Furthermore, startups can be a criti- In terms of startup numbers, Poland’s high-tech cal channel in the transfer of knowledge from sci- startup sector is growing. During 2021, about 120 ence to the economy. technology startups were created, including hy- Poland has been expanding the rate of business per-growth scale-ups and small creative startups. creation, but framework conditions for entrepre‑ The ecosystem has experienced major changes since neurship need to improve (figures 25 and 26), par- 2018. For example, the state programs for coopera- ticularly the regulations governing firms (as tion between start-ups and state-owned and private Figure 24:  Growth in the normalized Eco-Innovation Index between 2012 and 2021 0.4 BG HR Growth in Eco-index for ECO-I catching up 0.35 CY 0.3 LT 0.25 HU MT 0.2 PL 0.15 RO SK 0.1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Al-Ajlani et al. (2021). 33  FOSTERING GREEN INNOVATION IN POLAND Figure 25:  Enterprise birth rates, Figure 26:  Business climate (selected business economy, 2019 and 2020 indicators), 2019 Lithuania Norway Portugal Belgium Malta Denmark Poland Iceland Netherlands Croatia France Hungary Switzerland Slovak Republic Luxembourg France Austria Latvia Malta Romania Italy Bulgaria Sweden Iceland Finland Estonia Spain Denmark Ireland Netherlands Greece Slovenia United Kingdom Spain Germany Portugal Luxembourg Latvia Germany Estonia Cyprus Slovenia Czech Republic Cyprus Finland Slovak Republic Norway Croatia Italy Czech Republic Switzerland Poland Belgium Lithuania Sweden Hungary Austria Romania Greece Bulgaria 0 5 10 15 20 25 0 10 20 30 40 2020 2019 Business Climate Rank Cost of Doing Business Rank Source: Eurostat, Business Demographics Database. Online data Source: World Bank Indicators 2022. code: bd_9bd_sz_cl_r2. Note: The horizontal axis displays the ranking of countries in a to- Note: The chart reports the number of newly created enterprises tal of 190 countries surveyed. as a proportion of the total number of active enterprises. Poland has been expanding the rate of business creation, but framework conditions for entrepreneurship need to improve 34 3.  Research and Green Innovation Potential: A Diagnostic companies have become very popular. According to (approximately €1 billion) to support young compa- recent data, there are about 3,000 startups and 130 nies. The Polish entrepreneurship system still needs VC companies (Startup-Universal 2022), which are to become more attractive for foreign entrepreneurs supported by a network of 100 accelerators and in- and foreign talents. To date, Polish startups are cubators. This development is also supported by the mostly composed of domestic residents. Further ef- expansion of alternative sources of finance such as forts are required to attract foreign talents and business angels, fintech, and crowdfunding. startup projects. As in other European countries, cleantech entre‑ The growing interest of VC funds in energy and preneurship lacks clear demand signals and clean tech worldwide are a sign of expanding scale-up capital. Currently the government is ex- global markets and an opportunity to seize. In ploring new tax incentives for early investment and 2021, total VC investment in clean tech and energy business angels. The “Start in Poland” program— reached US$66 billion worldwide—a 50 percent in- which is the largest support program for startups— crease from the previous year (Dawe 2022). Within also is considering improvement of the domestic VC this investment, the resources and environment sec- market (PFR Ventures), including regulatory re- tor also had a record year; VC investment amounted forms for startup creation. The Polish Development to US$5.9 billion, with Europe and Israel making up Fund, which acts as a fund of funds, estimates that 40 percent of deal volume and North America 49 in the coming years it will have about PLN 4 billion percent (Dawe 2022). 35  4 THE R&D AND INNOVATION POLICY MIX 4.  The R&D and Innovation Policy Mix A s discussed earlier (section 2), Poland business sector innovation and entrepreneurship underinvests in R&D activities, partic‑ through different programs and funding lines. ularly in green technologies and green The use of competitive funding for individual innovation (Ministry of Climate and (and consortia) projects has expanded significantly Environment 2019). Overall levels of funding for over the years. Polish scientists can use both block R&D innovation have been expanding steadily over funding allocated to their institutions and external the years. Despite this steady increase, resources are research grants—national and international—for reported to be diverse and scattered (World Bank fundamental or applied research (with or without 2022). The problems of fragmentation of resources national or international partners). However, most for research and directionality, including in the for- of the available research funding is sourced interna- mation of advanced human capital, have been noted tionally and mostly takes the form of competitive as major areas for reform in the Polish Research Sys- funding for individual research projects. tem (Klincewicz et al. 2017). For companies, the policy mix for the promotion In terms of the policy mix for R&D and innova‑ of R&D investment includes investment grants; tion, the set of instruments and programs is rather tax relief and deductions, including reduced in‑ rich. They cover the different stages of the innova- come tax and the so-called Innovation Box; and tion cycle and have been expanding over the years. preferential loans. The R&D policy mix consists of However, many of these support programs, espe- both general and sector/thematic-focused policy in- cially those targeting green R&D and innovation, struments. Since 2011, when the National Research have been small in scale and some have been Program defined strategic orientations in R&D, a discontinued. new generation of targeted funding programs has This section briefly reviews the main funding been introduced. programs running for R&D and innovation. The In addition to funding (direct support), the gov‑ analysis is not exhaustive, but rather provides a gen- ernment introduced in 2016 tax incentives for busi‑ eral idea of the main policy instruments in place. ness R&D. The set of tax incentives has further ex- Furthermore, initiatives and programs that are ex- panded recently. A major tax reform referred to as plicitly targeted to green innovation are identified. the “Polish Order” was passed in January 2022. This Research grants are available from the two ma‑ includes a broad tax incentives package to boost jor Polish funding bodies, the NCN and the NCBR; R&D and innovation, attract new investors, and both are mostly supported by EU funds.36 The for- support the economy in the post-COVID-19 envi- mer is responsible for basic research while the latter ronment. Additional tax relief is provided for robot- is mostly focused on applied research. While the ization, and prototype development including green NCN allocates research funding to academic and certification, testing of product life cycle costs, and government sectors, the NCBR allocates research environmental technology verification systems.37 funding mostly to the corporate sector. The NCBR Despite an increase in total government fund‑ also allocates funding to academic institutions to ing support (and indirect support) for business foster collaboration with the corporate sector. While R&D, Poland is below the OECD average. Accord- the aims of the two major funding bodies differ sub- ing to consolidated data for the year 2019, total gov- stantially, both have been heavily involved in fund- ernment support as a share of Poland’s GDP is about ing green research. Other funding sources for aca- 0.13 percent, while the OECD average is 0.20 percent demic research can also be used such as the (OECD 2022). Foundation for Polish Science (FNP). The Polish The R&D policy mix in Poland can be basically Agency for Enterprise Development supports summarized as follows: The use of competitive funding for individual (and consortia) projects has expanded significantly over the years 37  FOSTERING GREEN INNOVATION IN POLAND (i) Basic Research Programs and Advanced (iii) Development Stage (Proof of Concept and Human Capital Programs Pilot Testing) and Pre-Seed Funding The NRC is the main agency funding such programs Under the “Start in Poland” program, several fund- in all fields of science and humanities, including ing programs aim to support the development stage, projects for young researchers, experienced scien- for instance, through the Scale-Up acceleration pro- tists, doctoral scholarships, and post-doctoral re- gram or the Polish Prize (PARP). search projects. The funding mostly takes the form Later stages of development (beyond R&D pol- of competitive calls for research projects. Instru- icy) such as innovation and firm growth are mostly ments for foreign researchers are also available. taken care by the Polish Development Fund and sec- tor-targeted programs. (ii) Applied Research This includes individual projects and collaborative (iv) Seed Funding and VC Support Programs: R&D. Startups a. Direct incentives : Grants and co-financing The program “Start in Poland” provides public (matching grants). There are mostly two lines funding (through the Fund of Funds) for the im- of funding. The first has a technology/sector provement of the domestic VC market (PFR Ven- focus. The second is for large “Strategic Research tures). Instruments include the “Scale-up” program Programs” aiming at developing solutions for and the Polish Prize (PARP), and for international strategic socioeconomic challenges including expansion the Technological Bridges or Localization clean energy, health challenges, and others. Consulting (PAIH). b. Indirect incentives for R&D investment and intel- lectual property. The generosity of R&D tax in- There are other instruments for supporting centives has increased over time, placing the startup creation by scientists. The Poland’s Innova- marginal tax subsidy rates largely above the tion Incubator 4.0 program, established in 2020, pro- OECD median.38 In 2021, the marginal tax sub- vides financial support to innovation incubators set sidy rate for profit-making (loss-making) up by public R&D entities. The program supports SMEs was estimated at 0.22 (0.18), larger than the commercialization of R&D results and co-opera- (equal to) the OECD median of 0.20 (0.18).39 tion between science and the private sector. The IP Box, in addition, provides tax deduc- tions for income resulting from IP activity, and aims at attracting foreign R&D activity by 4.1. Targeted Programs for multinationals. Green Innovation There are also thematic programs in R&D that There have been several programs to support green may include basic or applied R&D or both, such as R&D and innovation since the mid-2000s in Po‑ the strategic research programs. These are high-bud- land from which lessons can be learned. Examples get initiatives resulting from the state’s scientific and include programs at the National Fund for Environ- innovation policy to address major socioeconomic mental Protection and Water Management and sev- challenges.40 They aim at developing projects that eral initiatives at the NCBR. solve specific technical, scientific, or social problems Resources for green R&D and innovation are by integrating science with industry to tackle issues spread across different ministries and agencies. of key importance for Poland’s development. Although diversification in funding sources is Despite an increase in total government funding support (and indirect support) for business R&D, Poland is below the OECD average 38 4.  The R&D and Innovation Policy Mix Resources for green R&D and innovation are spread across different ministries and agencies important to accommodate different interests and New Energy Program has a budget of approximately objectives of policy makers, a minimum of coordina- €550 million for 2021–26 to support innovative green tion and directionality should exist. These have been energy projects in several areas, including energy lacking in the policy efforts for green innovation. clusters, smart cities, hydrogen technologies, and The limited coordination and lack of unified ap- energy storage systems. proach is reflected in the use of different metrics, Noteworthy funding programs from the Minis‑ concepts and targets established in funding pro- try of Climate and Environment are the ETV pro- grams for green innovation and technologies. gram—Environmental Technology Verification Pro- In addition, many of these programs have gram —which provides support for verification lacked sufficient scale to make a meaningful im‑ procedures to help environmental technologies pact. A large-scale fund for green innovation or reach the market; and the GreenEvo—Green Technol- green technologies has not been established yet. In ogy Accelerator—whose competitive calls operated terms of the policy mix, gaps exist in funding sup- thru 2009-2018. It aimed at supporting the develop- port for R&D projects with low technology readi- ment of green technologies by Polish entrepreneurs. ness, as many of the existing programs have mostly Another targeted program for green innovation focused on later stages of technology maturity (TR 7 and R&D was the Green Industry Innovation pro‑ and beyond) (IEA 2022). gram. Launched in 2020 with sponsorship of the The “Strategic Research Programs” initiative Norwegian government, it consisted of grants for managed by the NCBR currently provides funding supporting investment in innovation, consultancy lines for green R&D and innovation. In March services, and product development related to green 2022, a strategic research program on green energy innovation and greening of existing industries.42 technologies, with a budget of €83 million, was ad- From these experiences, lessons could be lever‑ opted. The program aims to drive Poland toward aged for the creation of a new Green Innovation climate neutrality, facilitate uptake of renewables (to Fund, with a more ambitious scope addressing tech- 50 percent of the energy mix), and improve the coun- nology and innovation needs in industry and regions. try’s energy security.41 This year, 2022, the NCBR is implementing two strategic programs: (i) Advanced Technologies for Energy Generation, which is closely 4.2. New Instruments for related to renewable energy; and (ii) Interdisciplinary Promoting Innovation System for Interactive Scientific and Scientific Technical Information. In the policy mix for green R&D and innovation, Some funding is also provided by the priority Poland has a small number of market-pull (or de‑ programs of the National Fund for Environmental mand-side) programs. To date, the use of public pro- Protection and Water Management. For example, a curement of innovation and standards to encourage In the policy mix for green R&D and innovation, Poland has a small number of market-pull (or demand-side) programs 39  FOSTERING GREEN INNOVATION IN POLAND Public procurement of innovation can play a significant role in the promotion of “lead markets” for green and sustainable technologies innovation has been rather underdeveloped. Recent Public Procurement Office has developed guidelines regulatory amendments and policy strategies aim at on innovation procurement and on pre-commercial increasing these practices, especially procurement procurement and provides regular trainings.45 for innovation and green procurement. The State Purchasing Policy also aims to de‑ Public procurement of innovation can play a velop a team for Green Public Procurement (GPP) significant role in the promotion of “lead markets” to produce a catalogue of products and services for green and sustainable technologies. It can help where environmental criteria will be compulsory. address the needs in government (state, regions, and This ready-to-use set of GPP criteria will be updated municipalities) regarding solutions for energy tran- every two years. sition, sustainable transport, water management, To date, the use of green/environmental criteria and promotion of the circular economy. The impact in public procurement has mostly been voluntary. of mobilizing procurement for green transition can The only policies that mandate minimum use of en- be tremendous. According to a recent study by the vironmental criteria in procurements follow EU di- World Economic Forum and Boston Consulting rectives (2009/33/EC, 2012/27/EU), which address (2022), green public procurement could unlock sub- government vehicle purchasing and energy effi- stantial economic value—around the world.43 ciency in buildings. Standardization, as another demand-side mea‑ Experience on public procurement of green inno‑ sure, complements public procurement of innova‑ vation has recently started with Poland’s Innova‑ tion by shaping requirements with standards. tion Sapper Procurement Strategy, which supports Standards can be used strategically in calls for ten- innovative projects that address key energy security ders to drive market demand for environmental and energy transition challenges through market goods and services and thereby stimulate green in- pull. Several projects have been launched in the fields novation (Blind et al. 2020). of renewable heating and cooling. Innovation Sapper Published in June 2022, Poland’s “State Pur‑ projects are funded with a budget of €46 million from chasing Policy 2022–25” advises all Polish public the EU Smart Growth Operational Program. buyers to allocate 3 percent of their budget to the The NCBR is also supporting implementation procurement of R&D and 20 percent to public pro‑ of the Pre-Commercial Procurement (PCP) Project curement of innovative solutions (Ministry of Eco‑ within the EU for promotion of new policy ap‑ nomic Development and Technology 2022).44 This is proaches. The PCP consists of ordering R&D that part of a broader set of measures to stimulate the use demonstrates an innovative product or technology of public procurement as an instrument to increase that is not available on the market.46 However, sev- innovation in the economy and link procurement eral challenges in the deployment of public procure- with the nation’s priority policies. In addition, the ment for innovation have been emphasized, Experience on public procurement of green innovation has recently started with Poland’s Innovation Sapper Procurement Strategy 40 4.  The R&D and Innovation Policy Mix including difficulties regarding the professionaliza- purchasing represented about 12 percent of GDP in tion of staff, institutional capacity of public entities, 2020—which is about €30 billion per year. In 2019, of and in program implementation (EU 2019; OECD the total of government procurement, 3 percent was 2017).47 The scale of implementation by contracting dedicated to needs related to the environment—a entities is still very low (Starzyńska 2019), resulting share like the average in OECD countries. in weak demand. Strengthening the capacity of pub- lic entities in the procurement of R&D and innova- tion is therefore critical. 4.3. European Funding for R&D The NCBR has started the implementation of the and Innovation first Polish projects for innovation partnerships and public procurement of large R&D projects. In addition, GovTech Polska currently supports author- Horizon 2020 ities in the procurement of non-standard purchases.48 Polish R&D performers participate in projects sup‑ Some aggregate data indicates that there is a ported by research and innovation funding pro‑ large potential for using public procurement for the grams of the EU, such as Horizon 2020 and its suc‑ contracting of innovation and R&D services. There cessor, Horizon Europe. With Horizon 2020, the is no specific data on how much public procurement Polish research community was mobilized to be- is allocated to purchasing innovation solutions or come involved in international consortia and per- R&D services for European countries. However, ac- form research focused on significant societal cording to data for 2020 (figure 27), government challenges. Some aggregate data indicates that there is a large potential for using public procurement for the contracting of innovation and R&D services Figure 27:  Government procurement as share of GDP, and share of total procurement spent on environment (%) 25 8 Procurement ad share of GDP 2020 (%) 7 spent on environment 2019 (%) 20 Share of total procurement 6 5 15 4 10 3 2 5 1 0 0 Un itze and d nd rt s th al G nia e lo in a Po ly Lu Slo nd m nia La g O ia Ko nm D h . st . Es lia Ca nia da ak D l pu U lg c Ic um ite F and ng e H om Ja ry Au an Sw ria N en er y N Fin ny he nd s Cz a, R k ov EC ae ec ep Au Rep nd Po ate Be bli G wa re ar bi ec Ki nc ur Re -E Ita D EC Li ug tv Co Spa ga ra a p st ed na ite rla la et la ua xe ve to Sl O Isr m i d bo m d ra rla re Sw l el or St Ire un e Un Government procurement in 2020 (% GDP) Government procurement related to environment in 2019 (%) Source: OECD (2021)—Government at a Glance, based on data from OECD National Accounts Statistics (database) and Eurostat government finance statis- tics (database). 41  FOSTERING GREEN INNOVATION IN POLAND Poland is ranked 27th in the EU in its Horizon 2020 contribution per inhabitant Poland is ranked 27th in the EU in its Horizon €40.6 million. Only these two categories represent 24 2020 contribution per inhabitant. Poland partici- percent of total projects awarded being involved in pated in 44 public partnerships in research and inno- clean innovation projects. Climate action, environ- vation (P2Ps) in Horizon 2020. This equals the EU15 ment, resource efficiency, and raw materials ac- average and is way above the EU13 average (22 net- counted for 165 participations from Poland with a works), although participation in few networks may net EU contribution of €40.08 million. There have reflect a country’s selective approach rather than been 212 participations from Poland (€36.81 million) limited interest and engagement. Poland’s participa- in the areas of food security, sustainable agriculture, tion and budget share are ranked 15th out of 29 coun- and forestry; marine, maritime, and inland water re- tries. Poland is a relatively large country, so in abso- search; and the bioeconomy.49 lute terms Poland usually performs better than its peers in Central and Eastern Europe. Operational Programs A total of 2,834 Polish organizations have so far participated in 1947 Horizon 2020 projects, receiv‑ Green technologies, eco-innovation, and circular ing net contributions of €745.7 million (1.21 per‑ economy policy measures have been to a great ex‑ cent of the total). The structure of Horizon 2020 par- tent financed through European Structural and Co‑ ticipants from Poland is well-balanced. The success hesion Funds. Poland is planned to be the largest rate of proposals stands at 12.69 percent and is above beneficiary of EU funds for 2021–27. A total of €160 the EU average (11.97 percent). Polish participants billion is expected in grants and loans, including a are research organizations (29.8 percent), education new Operational Program (OP). The new OP, called institutions (27.8 percent), and private (business) or- the European Funds for Modern Economy (FENG), ganizations, mostly SMEs (25.3 percent), with some will operate for the period 2021–27 with a total bud- participation of public bodies (6.7 percent) and oth- get of PLN 36 billion (€8 billion) for R&D, technol- ers (10.3 percent). ogy transfer, automation, robotization, and green When it comes to green research and innova‑ projects. The instruments include grants, equity and tion, some data are available from the distribution guarantee financial instruments, and instruments of funds on thematic priorities. The thematic prior- combining repayable and grant financing. ity of secure, clean, and efficient energy accounted The recently approved OP considers four lines of for 260 participations from Poland, with a net EU action: entrepreneurship, building an innovation­ contribution of €47.56 million. In the area of smart, friendly environment, greening enterprises, and green, and integrated transport there have been 212 technical assistance. The component “greening of participations, and the net EU contribution was enterprises” will provide support for projects Green technologies, eco-innovation, and circular economy policy measures have been to a great extent financed through European Structural and Cohesion Funds 42 4.  The R&D and Innovation Policy Mix Poland was already the largest beneficiary of the EU’s financial support provided within the cohesion policy directly contributing to the achievement of the ob- implemented over the period 2014–20. In addition, jectives of the European Green Deal, including cli- Poland also used the EU funds for regional imple- mate neutrality, green transformation of the econ- mentation of the Smart Specialization Strategy, omy, and sustainable development. The offer for which articulates targeted innovation policy inter- companies will include a green guarantee fund, an ventions. Allocations from the European Structural ecological loan, and Important Projects of Common and Investment Funds to Poland for green innova- European Interest (IPCEI). It will be complemented tion and sustainable transformation over the pro- by innovative public procurement for R&D works gram period 2014–20 totaled €14.6 billion through on technologies and products that do not yet exist on 2018. The bulk of these resources (€11.64 billion) was the market, desirable for social and environmental allocated for large projects related to network infra- reasons. structure in the transportation and energy sectors; Poland was already the largest beneficiary of €2.12 billion was allocated for advancing the devel- the EU’s financial support provided within the co‑ opment of the low-carbon economy; and €437 mil- hesion policy, with the largest amount allocated to lion for environmental protection and effective re- the Smart Growth Program 2014–2020. Poland also source management (Ministry of Climate and had the OP Infrastructure and Environment 50 Environment 2021a). 43  5 UNIVERSITIES AND PUBLIC RESEARCH ORGANIZATIONS 5.  Universities and Public Research Organizations U Reforms related to governance included, among 5.1. Universities others, the introduction of University Boards and niversities play a key role in the conduit the legal opportunity for universities to form a fed‑ of research activities and the transfer of eration. Reforms also provided increased authority knowledge and new technologies to in‑ for rectors and decreased powers for university sen- dustry and public actors. As such, they ates. Moreover, new regulations were established for can contribute in meaningful ways to addressing rectors’ elections; and a new position (professor) needs for green innovation and transformation. was established for which the habilitation degree is The Polish system of public research organiza‑ no longer a requirement. In addition, the Constitu- tions (PROs) has undergone important changes tion also provided universities with the right to de- over the last two decades (PSF 2017; Klincewicz et fine their research priorities (and agendas), and to al. 2017). These reforms aimed to improve the qual- decide how to allocate funds for research internally. ity and impact of the system and increase participa- A new classification of fields and disciplines, closer tion of Polish research institutions in EU funding to the OECD classification, was introduced. New na- and the international arena. Jointly with growing tional bodies formed: the Science Evaluation Com- funding for R&D activities, an improved institu- mittee (Komisja Ewaluacji Nauki—KEN), responsi- tional framework and governance place Polish uni- ble for carrying out periodic national research versities in a good position to address the needs for evaluations, and the Council for Research Excellence green innovation. There is, however, room for im- (Rada Doskonałości Naukowej—RDN), responsible provement such as strengthening academic and in- for overseeing habilitation and professorial proce- stitutional incentives for research excellence and in- dures at a national level. ternationalization, and for more targeted actions to In 2020, a new program was created to consoli‑ support the green transformation. date Polish research universities and improve their Like most countries in the world, Poland’s position in the international arena: the Research higher education institutions need to increase their University (IDUB) program. With a budget of impact on the economy and development and de‑ PLN 3.5 billion operating for the period 2020–26, this ploy more effectively their “third mission” en‑ competitive program aims at strengthening leading gagement: human capital, research (knowledge), research universities, by providing additional fund- and knowledge transfer. Polish universities have ing for research in a multi-year program.52 The pro- taken steps in these three aeras and have started ef- gram also supports another 10 universities with ad- forts to address education and knowledge demands ditional 2 percent of their budgets, in total 20 for the green transformation. universities. In 2018, the Law on Higher Education and Sci‑ Although implementation has been slow for ence (“The Constitution for Science”) introduced certain reforms, most have been introduced to several reforms, notably regarding university gov‑ date. However, some key policy areas such as the ernance (such as increased autonomy) and the or‑ research evaluation framework were further ganization of university research. The ultimate amended in recent years. In 2019 the evaluation goals were to strengthen the quality of Polish uni- methodology was further revised. This included versities,51 and research, and the participation of uni- changes in the valuation of books (a list of well-rec- versity research in the international arena. ognized publishers was introduced, level I and level II) In 2020, the Research University (IDUB) program was created to consolidate Polish research universities and improve their position in the international arena 45  FOSTERING GREEN INNOVATION IN POLAND Although implementation has been slow for certain reforms, most have been introduced to date and in the list of journals considered for evaluation Polish universities have already started engag‑ and scores. Further, the unit of evaluation shifted ing in the green transformation and shaping sus‑ from institutions to disciplines (research groups tainable development-oriented competencies. within universities). New educational programs are being launched Some of these changes, however, have raised (Sady et al. 2019), including post-graduates in sus- concerns. In the current methodology for evaluating tainable development, although such new programs research performance, the internationalization of re- mainly involve few universities. In addition, several search (that is, publication in international peer-re- universities have started implementing sustainable viewed journals) is valued less than expected and management practices. originally proposed with the reforms (including the In terms of knowledge transfer, Polish universi‑ Constitution of Science reforms). Publication in do- ties have gradually increased their focus on the mestic journals is, for certain areas, more valuable or “third mission” and academic entrepreneurship. has same value as publications in international sci- Many Polish universities deployed special units entific journals. Many national (and Polish lan- called technology transfer centers whose mission is guage) journals were added to the official list of jour- supporting research staff and students in exploita- nals. Furthermore, international publication has tion of their research results and other entrepreneur- now less importance in promotion procedures for ial and innovation activities. All leading universi- habilitation and professorial procedures. Although ties, technical, or business schools have set up appreciation of domestic journals is intrinsic to cer- dedicated organizations including academic incuba- tain areas (such as linguistics), decreased impor- tors and technology transfer offices (TTOs) to sup- tance of international journals is detrimental to im- port spinoff creation and collaboration with indus- proving the quality of science.53 try. Spinoff companies often become independent Another area for reform, originally considered establishments and the universities remain con- by the Constitution of Science, was salaries of uni‑ nected to them only in limited roles, for instance as versity researchers, which were about a third of the shareholders. By early 2018, academic incubators EU average in 2019. Although a promise was made operated in 24 Polish cities. to gradually increase wages of university scientists, the minimum salary was increased only once—in 2019 by 10 percent. 5.2. Public R&D Organizations Low salaries for university researchers are a ma‑ jor handicap to science and to attracting young Structural and funding reforms have strengthened graduates in scientific careers—and therefore a the innovation capacity of PROs and universities major barrier to fostering competences for green over the years. Polish PROs were reorganized under innovation. This also has detrimental consequences a single umbrella in 2019 to reduce fragmentation, on the level of EU funding that research groups re- spur specialization, and improve industry competi- ceive: since EU funding matches to national salaries, tiveness. Inspired by international best practices (for the level of EU funding received is not sufficiently example, the VTT in Finland and the Fraunhofer In- attractive for Polish researchers. As a result, Polish stitutes in Germany), the Łukasiewicz Research Net- researchers that participate in EU funding programs work was designed to address demands for applied work much more with little additional support. Par- research by industries and improve the transfer of ticipation is therefore mostly motivated by prestige, knowledge and new technologies to the economy. but in practice this motivation is not very useful. The network provides a large array of services and This is a call for EU funding programs. collaboration in key areas: sustainable economy and 46 5.  Universities and Public Research Organizations Box 1: The Polish Research Evaluation Framework for University Research Poland has a long tradition in the use of performance-based funding for funding research at the institutional level (block funding). The research performance evaluation of institutions proceeds every five years, and the results, combined with other indicators, determine the levels of block funding (institutional) for research that universities will receive. Although the methodology has changed over time, Poland had for long time used indicators of publication output and impact in the evaluation of research performance. In 2019, the evaluation methodology was simplified and reduced to three items instead of four, with a third category concerning qualitative measures. The current methodology considers three types of activities: (i) research outputs (publications); (ii) project income (this includes funding obtained through domestic and EU programs, plus revenues from services such as R&D, licensing, and so forth); and (iii) societal impact (cases studies/examples of impact). To participate, the evaluation methodology considers up to three publications maximum per researcher. The unit of evaluation shifted from institution-level to disciplines—research groups within universities. The evaluation that started in 2022 is the first assessment using this approach. Before 2018, four main criteria were considered: (i) counts of publications considering impact factors of specific academic journals, (ii) revenues from industry co-operation and external R&D funding (normalized by numbers of R&D), (iii) patents, and (iv) scientific awards of researchers, and financial outcomes of commercial- ization of research results (Zacharewicz et al. 2019). energy, digital transformation, clean and smart mo- Horizon 2020 Program of nearly €35.1 million. bility, and health (Science|Business 2019). Over the same period, a total of 294 patent applica- The network consists of 37 research institutes tions were registered and 308 patents were granted (the majority currently operate under the Ministry domestically. The network has a uniform system re- of Entrepreneurship and Technology) involving garding the rules for commercialization of research about 400 laboratories throughout the country and results and IPRs—including financial recognition 8,000 employees, mainly researchers. Full R&D ad- for inventors.55 The Łukasiewicz Research Network visory services are also offered by the modality of expects to expand global collaboration by Polish academic technology transfer centers. 54 The SMEs and other leading research actors in key areas Łukasiewicz institutes already implement projects for the green transition. that are in line with the goals of the sustainable de- Important challenges must be met to ensure the velopment strategy, including the idea of a circular impact of the new institutes. As noted in a recent com- economy. The activities are focused, for example, on parative study (Popp et al. 2021), the institutes need to cleaning technologies and the use of secondary ma- better identify market demands and approach in- terials; thermal insulation in construction; low-emis- dustry needs. This needs to be accompanied by im- sion aviation and railway engines; and biodegradable proved (and less bureaucratic burden) procedures materials, including spinning products, packaging, for commercialization and technology transfer through and other everyday products. spinoffs, and different instruments to support firm in- During 2014–20, Łukasiewicz institutes ran 82 novation needs and startups (Popp et al. 2021). projects, for which they received co-funding by the 47  6 WHAT R&D POLICIES AND ACTORS CAN DO TO SUPPORT GREEN INNOVATION 6.  What R&D Policies and Actors Can Do to Support Green Innovation F rom the diagnostic previously presented and set common objectives. It will certainly help (section 2), several policy implications provide more certainty to policy frameworks and emerge. Harnessing the potential of R&D organize policy programming in cascade. An over- for green innovation and green transforma- arching strategy should make clear that a green tion of the economy in Poland will require a more transformation involves all sectors of the economy comprehensive approach, along with increased (including manufacturing and services) and all re- commitments for R&D investment and more tar- gions. As such, much of the transformation will hap- geted policy efforts. pen locally, in cities and regions, by fostering green In deploying these efforts, however, institu‑ development partnerships with innovation actors. tional strengthening is needed. Such reforms in- Cross-sectoral (ministerial) coordination is required clude improving coordination across government for both policy strategy setting and in implementing and directionality in resources as well as enhanced new support programs. coherence across regulatory frameworks and differ- ent national policy strategies. Several areas for im- provement exist for further boosting research excel- 6.2. What R&D Policies Can Do lence and R&D for the green transition—particularly National public investment in R&D for low carbon regarding involvement of S&T institutions in ad- and green technologies (renewable energy, conser‑ dressing green innovation challenges in regions, vation, biomass, wind, and hydrogen) should be ex‑ government, and the economy. panded significantly, along with funding (financial) and technical support for industry and regions and 6.1. General Policy Framework municipalities to deploy green innovation projects. Commitments to fund R&D should have a long- Poland will have to invest more in R&D to deliver term component, just like carbon emission caps. targets related to the European Green Deal and In fostering and accelerating green innovation successfully transform into a sustainable and com‑ and technological solutions for sustainability and petitive economy. However, to encourage accelerat- carbon neutrality, Poland would benefit for more ing investments across the economy, a more coher- “directionality” in R&D policies. Green technology ent policy framework and increased complementarity development, green innovation, and sustainability across policy incentives is required. At the same and energy transition should be high policy priori- time, Poland will have to improve coherence among ties. As in the countries mostly advanced in environ- the different regulatory frameworks (for example, mental research and innovation (such as Denmark, between environmental and energy policy) and na- the United Kingdom, and Japan), R&D policies tional plans, and work at delivering an unambigu- should reflect national goals in environmental and ous policy framework that sets mid-term and long- energy policies, which must align with goals of the term targets. European Green Deal. A common framework of targets and an overar‑ Poland also needs to avoid fragmentation of re‑ ching strategy for green innovation or green trans‑ search and funding and articulate more targeted formation can help organize policy efforts and (focused) support and larger funding programs for tasks across stakeholders, harmonize concepts, green R&D and green innovation. The research Poland will have to invest more in R&D to deliver targets related to the European Green Deal and successfully transform into a sustainable and competitive economy 49  FOSTERING GREEN INNOVATION IN POLAND Poland also needs to avoid fragmentation of research and funding and articulate more targeted (focused) support and larger funding programs for green R&D and green innovation system and funding of green innovation projects adopt new approaches such as challenge-based (com- have benefited from different initiatives in the past. petitive) funding calls, to improve support for inno- However, as discussed previously, efforts have been vation and sustainability challenges in industrial fragmented (dispersed across different entities) and sectors, services, and agriculture. An interdisciplin- many programs have been small in scale. ary perspective for collaboration and involving dif- Current green technology programs mostly ad‑ ferent actors should be a central part of these fund- dress validation and development stages (see rec- ing programs for green innovation. The new OP (for ommendations by IEA (2022)), while funding for the period 2021–27) mentions a Green Innovation earlier R&D and large-scale projects is limited (ex- Fund but only considers guarantees; this could be cept for strategic research programs). It is true that linked to a larger support program. new initiatives are planned to be launched with the For R&D stages, the Green Innovation Fund National Recover Plan (NRP) for Poland and new could use “research and innovation partnerships” EU Operational Program—which will significantly to address specific “green” missions. Examples of expand funding resources for the green transition such partnerships include R&D consortia that bring and innovation. together academia, industry, PROs, startups, and so- More targeted and larger-scale efforts are re‑ cietal actors; an international example is the In- quired to support R&D for the green transforma‑ no-missions in Denmark. Partnerships could be tion. New funding (combining resources from na- funded for 3–5 years and subject to monitoring and tional and EU programs, among others) could be evaluation. They should also have multi-disci- consolidated into a Green Innovation Fund for green plinary teams, promote cross-sectoral collaboration, technologies and innovation projects. This fund and can include foreign participation.56 should both support basic research and give special In deploying new R&D and innovation funds attention to applied research projects that address for green solutions, it is important to emphasize complex innovation challenges (and demands) re- “inter-disciplinarity” as an operating principle for lated to energy transition and sustainability in re- projects, as previously discussed. Equally relevant gions or clusters/industries. is the need for more cross-industry collaboration (that A Green Innovation Fund can provide support is, cooperative R&D involving different sectors/in- throughout the innovation cycle, combining grants dustries). Collaboration helps address similar tech- (and matching grants) for research and development nology needs or bottlenecks, such as carbon emis- activities with loans and loan guarantees at later stages sions, energy conservation, or water disposal (commercialization). In addition, this fund should treatment in manufacturing industries. In deploying new R&D and innovation funds for green solutions, it is important to emphasize “inter-disciplinarity” 50 6.  What R&D Policies and Actors Can Do to Support Green Innovation Special attention should be given to international partnerships, involving foreign S&T institutions, and companies Special attention should be given to interna‑ function; to leverage innovation and address gov- tional partnerships, involving foreign S&T institu‑ ernment challenges. tions, and companies. This is key for addressing The Polish government already recognizes the common European green challenges in energy effi- importance and potential impact of public pro‑ ciency and transition. In particular, international col- curement for innovation and green transition. The laboration will stimulate integration of Polish actors OP 2022–27 foresees the creation of a public procure- in the international arena. Care should be taken in ment mechanism for green innovation (green pro- the planning and implementation of programs in curement). Moreover, recent laws passed (including view of a potential large increase in funding for the Poland’s “State Purchasing Policy 2022–25) aim green R&D and innovation. The number of research- to mobilize government procurement for innova- ers is fixed in the short run and expanding research tion, sustainability, and green transition. in these areas will require training of new scientists, Two mechanisms could help speed up imple‑ increased international collaboration, and probably mentation and learning by public entities. First, a attracting foreign S&T talent. Therefore, a compe- central unit (public procurement hub) can help artic- tence and training (PhD and MSc) strategy should ulate demands and (technological/innovation) chal- accompany new R&D policy programs for green in- lenges related to green transition at different public novation and transformation. entities and agencies. Second, an experimental ap- proach could be considered by running different pi- lot programs for public procurement (with different Demand-Side Policies public entities and modalities), in both innovation The green transformation will also require Poland (including ICT solutions) and pre-commercial pro- to strengthen the demand-side approach in R&D curement (including for new technological solu- and innovation policy. There is a need to consoli- tions, which require R&D services). date and implement recent policy actions regarding New pilot programs could be deployed in the public procurement of innovation (and pre-commer- field of energy transition and carbon neutral innova‑ cial procurement) and the use of standards. In line tion solutions in different sectors (ministries), and at with system transition policies (Fagerberg 2018; the level of cities/municipalities.57 From the experi- Mazzucato 2018), government can play a catalyzing ence of these pilots, guidelines and toolkits can be role by accelerating demand for green technologies developed to help in promoting and implementing and stimulating markets (as an early user) through public procurement. In tandem, open innovation ap- public purchasing. Increasingly, countries are seeing proaches can be considered for the definition of de- public procurement as a strategic government mands and requirements (for call tenders), as well as New pilot programs could be deployed in the field of energy transition and carbon neutral innovation solutions 51  FOSTERING GREEN INNOVATION IN POLAND New funding programs for R&D and green innovation will probably face bottlenecks in terms of project proposals in running competitions for solutions (for example, Complementary to these efforts is the provision see U.S. Open Innovation Challenges and Singapore). of incentives for attracting, retaining, and encour‑ With EU support, capacity building and competence aging the return and the mobility of researchers. development at public entities should continue. This can take the form of increased opportunities for post-doctorate and doctoral studies for foreign young researchers, as well as tax incentives for the Researchers and Advanced employment of S&T specialists (both from abroad Human Capital and domestic) in industry. Another area for action is university salaries. Sala- ries of scientists at Polish universities are about one- Research Excellence and International third of the EU average (section 5.1); and this is a Collaboration major handicap to advancing of S&T and attracting young talent to these careers. As suggested in the To improve Polish capacity for green technology Constitution of Science, salaries need to increase development and innovation, it is fundamental to both in absolute terms and through policy incen- continue strengthening research capacity and tives. For instance, complementary salary bonuses quality in academia and PROs. Strengthening in- for scientific performance could be considered; this centives for institutions and scientists through poli- can be implemented at the level of institutions or cies, partnerships, and resources are necessary steps through a research funding authority. to this process (World Bank 2022). Concomitant to As noted previously, new funding programs for this process is the need to reinforce international col- R&D and green innovation (OP and NRRP) will laboration and internationalization of Polish science probably face bottlenecks in terms of project pro‑ and innovation activities (section 3.5). posals. Such bottlenecks are due notably to a fixed The need to strengthen research capacity and number of researchers and missing human capital quality should be recognized in research perfor‑ competences in key areas for environmental and re- mance evaluation frameworks and considered for newable energy-related research (see sections 3.2 career development. Thus, following the goals of and 3.3). A competence and training (PhD and MSc) research excellence, increased importance should be strategy should accompany new R&D policy pro- given to publications in internationally peer-re- grams for green innovation and transformation. In viewed journals, and to participation in interna- particular, these types of human capital components tional research projects. Likewise, knowledge would benefit large-scale R&D and multi-period transfer engagement should be more clearly ac- programs. knowledged (for both researchers and institutions). It is fundamental to continue strengthening research capacity and quality in academia and PROs 52 6.  What R&D Policies and Actors Can Do to Support Green Innovation Universities can contribute to green innovation through education (new skills); by creating new knowledge (from research); and by engaging in R&D and innovation partnerships with public, private, and civil society actors Such engagements can include collaborative agree- to sustainability thinking like life-cycle analyses, ments with industry partners, exchanges, employ- systems thinking, and scenario-planning (World ment (sabbaticals) in industry, spinoff participation, Economic Forum 2022). and others. To encourage participation in research for Finally, it is important to develop a more stable low-carbon technologies and sustainability, uni‑ framework for research evaluation and funding versities can adopt several strategies. Universities policies. Such a framework will provide more cer- can outline how institution-wide research (and im- tainty in the conduct and long-term planning of re- pact) goals can best align with sustainability and search activities. green targets; or, even more, define sustainability and environment explicitly as part of their research priorities and agenda. National research priorities 6.3. What Research Universities for green innovation can be also expressed via the Can Do missions of research institutions and through more flexible structures such as centers of excellence Universities can contribute to green innovation (OECD 2014).58 Such strategies can help ensure a through education (new skills); by creating new continuous pipeline of vital, advanced human capi- knowledge (from research); and by engaging in tal for the green transformation. R&D and innovation partnerships with public, Universities may also encourage faculty and private, and civil society actors. University research student research engagement through evaluation can also support the design and evaluation of green frameworks and funding programs that target sus‑ innovation and public policies. Such research sup- tainability and green innovation projects. Promo- ports helps track progress in meeting environmental tion evaluation and prizes can also be instrumental targets and evaluating the impact of pollution, and to increase engagement with sustainability research provides data for other assessment studies. (Whitmer et al. 2010). Higher education plays an important role in the In promoting and funding green R&D and in‑ development of complex, new green skills and re‑ novation, special attention needs to be given to search. In terms of skills, the share of population projects that are (i) interdisciplinary and (ii) ad‑ with tertiary education is one of Poland’s strengths, dress regional needs59 (including regional innova‑ but the full potential of education for the green tion demands). For such projects, especially the lat- transformation still needs to be realized. The educa- ter, place-based “co-creation” between knowledge tion system should quickly address gaps in the sup- creators and innovation/technology users is key to ply of university graduates, particularly in S&T advancing the sustainable transformation of a specific fields, and consider enhancing curricula for the town, city, region, or industry (Trencher et al. 2014). green transformation, including new professions Some universities60 have created special funds such as sustainability and environmental manage- for green research and technology development, ment, and environmental monitoring (Vona et al. including proof of concept and prototype develop‑ 2015). Addressing the needs for green innovation ment. Resources are gathered from both public and will also require cross-disciplinary competences key private sources. Overall, universities are required to 53  FOSTERING GREEN INNOVATION IN POLAND Universities can also help accelerate the testing and demonstration of new green technologies and solutions engage with regional actors more strongly in terms Fostering academic entrepreneurship and the of R&D and innovation partnerships to address acceleration of spinoffs (from science and research challenges related to sustainability, energy, and envi- institutions) is also a vital area for the green transi‑ ronment. These partnerships involve government tion. Fostering this work requires improving oppor- actors, industry, and SMEs, and also citizens as in tunities for researchers to engage as entrepreneurs, social innovation projects. for example through academic leave and by sup- Universities can also help accelerate the testing porting R&D and early-stage funding. Another ave- and demonstration of new green technologies and nue of support is opening possibilities for surrogate solutions, by serving as “living laboratories” or test entrepreneurs to run startups based on results from beds for new technology applications, notably in en- academic research. ergy, communications, and transport.61 Living labs Finally, universities can explicitly articulate aim at accelerating the shift from the research lab to policies and commitments in research and educa‑ the market by facilitating testing in real (or close to tion for the green transformation by embracing real) context conditions, as well as assessment of the sustainability goals as integral part of strategic de‑ scalability of these ideas from campus to cities and velopment plans.62 This starts with the recognition beyond. Numerous universities engaged in sustain- that the principles embedded in sustainability think- ability research and environmental projects are en- ing—long-term values, a culture of conservation, the gaging in this type of open innovation practice. circular economy, and appreciation of regional spec- Polish universities should also place interna‑ ificities—will shape university policy. Fundamen- tional partnerships in research and education high tally, a strong engagement by universities with re- in their institutional strategies, notably in key ar‑ gional and local stakeholders is key to addressing eas for the green transformation. For instance, re- sustainability and green goals, both at the institu- cent initiatives in education and research partner- tional and national level.63 ships with Denmark in the field of wind turbines is Local engagement by universities also implies in‑ a promising strategy to accelerate the creation of a volvement of local stakeholders in university boards pool of relevant experts. Collaboration with German and research councils, as well as consultation mech‑ institutions for solar energy and photovoltaics is an- anisms for the identification of demands and joint other promising venue for action. projects. As discussed by McCowan et al. (2021), Universities can explicitly articulate policies and commitments in research and education for the green transformation by embracing sustainability goals as integral part of strategic development plans 54 6.  What R&D Policies and Actors Can Do to Support Green Innovation universities that successfully promote sustainable (such as supercomputing centers), is another way development have purposeful leadership and gov- that PROs can support green innovation in SMEs ernance systems in place. These systems stimulate and startups. engagement and offer a fertile ground for the design, Second, R&D policies and PROs can engage in testing, and experimentation of innovative practices, multi-sector consortia for green innovation. These aspects highly relevant for the green transformation. consortia, or Green Innovation Centers, composed of industries, academia and PROs, startups, and SME associations, can link basic with applied re- 6.4. What Public Research search to accelerate innovations and solutions for Institutions Can Do the green transition (where the Łukasiewicz Re- search Network can play a major role). Examples of There are at least three ways the public research such consortia are Catapult Centers of the United network can improve its impact and participation Kingdom, notably the Offshore Renewable Energy in the search for R&D solutions for energy effi‑ Catapult and the Energy Catapult.64 The Energy Cat- ciency and industry transformation, in collabora- apult accelerates the creation and growth of startups tion with other innovation actors such as academia. in offshore renewable energy. First, research institutions can support green Third, research institutions and the private sec‑ R&D projects in industry, particularly the testing of tor can collaborate on providing worker training new technologies (proof of concepts and prototype and high-performance work practices (including development) and testing and development (and ac- sustainability), which will support green innova- complishment) of quality standards. Examples of tion and energy transition in industry. This collabo- standardization and inclusion of SMEs and PROs ration can take the form of technology extension exist from the German experience and the Fraun- services (which can be provided by universities)— hofer institutions. Providing access to infrastructure, for instance, supporting the adoption of new tech- including digital infrastructure and data warehouses nologies and green standards (upgrading). 55  7 CONCLUSIONS 7. Conclusions P oland’s research and innovation capacity procurement programs (precommercial procure- are key to fostering green innovation com‑ ment or PCP). These schemes open opportunities for petences and new competitive advantages collaboration while helping to direct efforts around in the economy. Such capacity is also key a specific agenda or strategic plan. to addressing the EU and United Nations (SDG) pol- Science and research institutions should work icy exigencies for decarbonization of the economy toward improvements in their governance and pol‑ and sustainability. The EGD targets and the commit- icy frameworks for science and research institu‑ ments defined in national policy plans, including in tions. Thus, institutions should strengthen their en- the recent Recovery and Resilience Plan of Poland, gagement in research projects targeting green prioritize green innovation and transition to efficient innovation and sustainability challenges. Academic sources of energy production. For Poland, this re- and institutional incentives need to be strengthened quires transforming its traditional growth model to increase the quality of Polish research in general based on cost-competitiveness into one based more and collaborative research with industry. Improving substantially on innovation and technology. Green the framework for technology transfer between sci- innovation and sustainable practices are at the heart ence and the industry as well as the development of of future business competitiveness. research capacities should help widen opportunities Strategic R&D and innovation policies will for partnerships and enhance commercialization help drive competitive green growth, as will more and spinoff creation at research institutions. efficient use of public resources and policy instru‑ In parallel, the green innovation and energy ments. New approaches are required that more ef- transition requires improvements in skills training fectively integrate the research side (public institu- for technology adoption, as well as ensuring ad‑ tions) with the private sector in the generation of vanced human capital in future R&D projects and innovation solutions. demands. In addressing these challenges, delivering Poland still needs to define viable models for the pool of STEM graduates is central. Likewise, a ensuring that these investments generate social re‑ strategy for advanced human capital (MSc and turns and positive socioeconomic and environ‑ PhDs) is key in the deployment and implementation mental impacts. Poland has significantly increased of large new R&D projects. Finally, enhancing inter- its investments in R&D and innovation. However, national cooperation in both education and research performance in green research, and innovation in will be central to fulfilling Poland’s new national general is still insufficient to meet the challenges of and European policy commitments. competitiveness, green transition, and sustainabil- And finally, improved policy coherence is re‑ ity. In addition, progress is needed in enhancing the quired to deliver green innovation and reach tar‑ R&D and innovation capacity of the private sectors, gets of carbon neutrality. Thus, more exigent envi- particularly the participation of SMEs in innovation ronmental policies, notably in terms of carbon taxes, activities, including for the green transition. are needed to spurring innovation and technology New approaches are required to address green shifts. Innovation (and R&D) policies alone will not innovation challenges. Promising venues for action be sufficient to induce technology development and include mission-driven approaches, innovation adoption without the corresponding incentives from partnerships in funding programs, and public pricing policies (Aghion et al. 2012). Poland’s research and innovation capacity are key to fostering green innovation competences and new competitive advantages in the economy 57  REFERENCES References Abramo, G., C. D’Angelo, and M. 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The NRRP is part of the Next Generation EU (NGEU) with a tertiary degree working in science and technolo- program, namely the €750 billion package—of which gy occupations. about half is in the form of grants—that the EU negoti- 16. Publication productivity of top Polish scientists in cli- ated in response to the pandemic crisis. The main com- mate action research is presented in Annex 2. ponent of the NRRP is the €672.5 billion Recovery and 17. Based on an empirical study on occupations, these au- Resilience Facility (RRF), which has a duration of six thors identification “green skills” and classified them years (2021–26). into four groups: (i) engineering and technical skills; (ii) 3. According to the OECD (2008) eco-innovation is defined scientific skills; (iii) operation management skills; and as “the creation or implementation of new, or signifi- (iv) monitoring skills. Accordingly, green skills are cantly improved, products (goods and services), pro- high-level analytical and technical know-how related to cesses, marketing methods, organizational structures, the design, production, management, and monitoring of and institutional arrangements which—with or without technology. intent—lead to environmental improvements compared 18. According to the International Labor Organization to relevant alternatives” (OECD 2008: 19). (ILO) (2018) the transition to a green economy will bring 4. More generally, “green innovation policies” are under- with it new jobs; only in energy, achieving sustainability, stood as public policies and programs aiming at stimu- will create 18 million jobs by 2030. For instance, new jobs lating and supporting the development, application, are expected in construction, electrical machinery man- and diffusion of green innovations (Arentsen et al. ufacturing, copper mining, renewable energy produc- 1999). tion, and biomass crop cultivation. 5. Markets favor too much dirty innovation relative to 19. This data is publicly available at https://www.scimago- clean innovation. For example, markets discount future jr.com/. For Scopus, see https://www.scopus.com/. benefits of innovation more heavily than a social plan- Please notice that this analysis does not pretend to be a de- ner. Most of the social value of dirty technologies occurs tailed bibliometric assessment of scientific performance today, while for clean technologies most of the value of countries and scientists; but rather present a general occurs in the future, once transition is done. portray of the situation in key areas of relevance for 6. Acemoglu et al. (2012) argue that the optimal govern- green technologies and environmental R&D. More re- ment policy requires both a Pigouvian tax to internalize fined indicators of citations (looking at sub-disciplines the environmental externality and a subsidy to encour- and location) would require more disaggregated biblio- age innovation in green technologies. metric data, currently not available to the team. 7. National Energy and Climate (ENCP) Plans are mandat- 20. The specialization index is computed as an index of re- ed by the EU to each of its member states in order for the vealed comparative advantages (RCA): it is the share of EU to meet its overall GHG emissions targets. The plans publications in a field or area in total publications pub- outline intended changes to the energy sector in view of lished by a country and relative to the share of the field 2030. (in total world publications). An index value higher than 8. ETS = emissions trading scheme. one indicates scientific specialization in that domain: 9. Currently, Poland has no offshore wind power capacity, that is, the country publishes relatively more in that field but is undertaking to install 3.8 GW by 2030 and up to 11 compared to the world average level of intensity. GW by 2040. This would make Poland the largest mar- 21. The H-index gives an estimate of the importance, signif- ket for offshore wind power in the Baltic Sea region. icance, and broad impact of a scientist’s cumulative re- 10. The other targets are: (i) digitization and transformation search contributions. It accounts for both productivity towards industry 4.0 (for example, implementation of and impact of a scientist. It avoids most of the disadvan- the Artificial Intelligence Policy and creation of AI tages of the other single-number metrics commonly School), (ii) supporting the competences of citizens (for used to evaluate scientific output of a researcher. The example, training for entrepreneurs, acquiring skills in value of the H-index is discipline- and time-dependent: specific technologies); and (iii) innovations, start-ups, therefore, absent corresponding standardization, the and new technologies (for example, industrial property H-index should be used to compare the relative impor- law, promoting the start-up market, and so forth). tance of scientists only if they are of similar (scientific) 11. See Annex 3 for the details about past R&D financing in age and work in similar disciplines. Shortcomings of the Poland. H-index are its inability to differentiate between active 12. A search in the Polish data system on research grants and inactive scientists, and difficulty in comparing showed research projects from four sources: NCN, across different disciplines. NCBR, EU, and ministries. 22. Not a single Polish research institution appears in global 13. Assuming that green R&D expenditure was evenly dis- or European rankings of the top 500 institutions, and tributed over the years, and the overall domestic expen- only two Polish researchers appear in global and Euro- diture on R&D equals the 2020 value (1.39 percent of pean lists of the top 500 authors by scholarly output. GDP). 23. Publication-related indicators in the IDUB include such institutional-level and discipline-level indicators as the 62 Endnotes numbers and percentages of highly cited publications by information and communication technology (ICT) (top 10 percent in the Scopus database) and of publica- tools and incentives. tions in high-impact journals (top 10 percent of journals, 32. The first recommendations were issued in October 2015, or the 90th percentile in the Scopus database). when the Ministry of Science and Higher Education is- 24. Kohus et al. (2022) analyzed research articles published sued a document entitled “Kierunki rozwoju otwartego in Q1 2017 and 2021 in medical and health sciences jour- dostępu do treści naukowych w Polsce [Poland: Initial nals for a group of countries (Czech Republic, Hungary, open access policy],” which sets specific open access rec- Poland, and the Slovak Republic). They found that Q1 ommendations for all major stakeholders in Poland. research papers in international collaboration have a 33. The least common initiatives relate to the application of higher scientific impact than papers published in na- Integrated Pollution and Prevention Control (IPPC) and tional partnerships. Best Available Techniques (BAT) guidelines, and the 25. The benefits are multiple. Research collaboration en- adoption of sustainable or eco-friendly raw materials, ables researchers to access additional, often specific, ex- products, and packaging, although this is more common pertise, gain new perspectives on research and build among larger enterprises. relationships with others in the field, which for early- 34. The European Green Deal calls for measures to maxi- stage researchers can be key to career development. mize the impact of policies to deal with climate change 26. The CWTS Leiden Ranking is published by the Center through artificial intelligence, 5G, cloud and edge com- for Social and Technology Studies from the University of puting, and the Internet of Things. Leiden. The rankings are based on bibliographic data 35. In 2015–20, 51 R&D projects worth €233 million were from the Web of Science database of Clarivate Analytics, implemented in Poland. In 2020 alone, the value of in- Philadelphia, PA, USA. vestments in the R&D sector reached €97.8 million. Cur- 27. Indicators of environmental technologies are construct- rently, 6 R&D projects with a total value of €32.7 million ed by measuring inventive activity using patent data are active. across a wide range of environment-related technologi- 36. EU funds cover most of the R&D spending of the NCBR. cal domains, including environmental management, EU funds covered 75 percent of NCBR spending in 2019, water-related adaptation, and climate change mitigation 79 percent in 2020, and 78 percent in 2021. Poland’s technologies. The data here reported use the categories NECP sets a 2030 target for overall R&D spending to defined by the European Patent Office (EPO) for climate reach 2.5 percent of GDP. change mitigation and adaptation technologies, which 37. For instance, a company that runs a trial production of use the “Y02 tagging scheme” of the Cooperative Patent new products and markets a new product will have the Classification to identify relevant inventions in global possibility to deduct 30 percent of eligible costs from its patent databases such as the EPO PATSTAT global data- tax base (the deduction cannot exceed 10 percent of its base (Angelucci, Hurtado-Albir, and Volpe 2018). This income). The incentive includes, among others, expens- classification system was developed by patent examin- es for the purchase, production, or improvement of cer- ers at the EPO specialized in each technology, with the tain fixed assets necessary to launch trial production help of external experts. The scheme has been continual- runs. ly expanded in recent years and is now considered com- 38. Until 2016, Poland offered an accelerated depreciation plete for climate change mitigation technologies of machinery and equipment and buildings used in (CCMTs), covering seven main categories, namely ener- R&D. A marked increased in implied R&D tax subsidy gy, greenhouse gases (GHG) capture, buildings, indus- rates was noticeable in 2016 when an enhanced, vol- try (including agriculture), transport, and waste and ume-based R&D tax allowance was introduced. wastewater management. 39. The tax subsidy rate for large enterprises equals 0.22 28. The “Third mission” refers to universities’ commitment (0.18) in the profit (loss)-making scenario, well above the to impact socio-economic development through the OECD median of 0.17 (0.15). transfer of knowledge and new technologies resulting 40. The basis for the preparation of strategic programs is the from research and development capacity to innovation National Research Program, established by the resolu- actors and society including through academic entrepre- tion of the Council of Ministers of August 16, 2011, neurship (see Laredo 2007; Compagnuccia and Spigarel- which defines the strategic directions of scientific re- li 2020). search and development activities. 29. Note that there is not yet a harmonized approach to de- 41. The program has three focal thematic areas: solar energy fining environmental technologies and green innova- (innovative use of photovoltaic cells and devices in agri- tion, and to formulating measurable parameters to be culture, construction, and transport), energy generation met by R&D projects (Ministry of Climate 2019). form waste and heat from process gases, and innovation 30. Prestige is measured and ranked in Scopus as a cite related to geothermal heat. score between 0 and the 99th percentile The 99th journal 42. The total budget for the green industry innovation grant percentile denotes journals with the highest academic scheme is €50,000,000 and the program targets micro, impact, or with on average the most highly cited publi- small, or medium-sized enterprises. cations. Most prestigious journals are on average associ- 43. According to some estimates, private investment and ated with high global visibility as measured by high ci- new jobs triggered by greener public procurement could tation rates; non-prestigious journals, in turn, are boost global GDP by around US$6 trillion by 2050 associated with low visibility because of, on average, (World Economic Forum and Boston Consulting 2022). low citation rates. 44. This instrument was acknowledged as part of the key 31. According to the OECD (2015) open science encompass- lines of actions expected to be mobilized for the deploy- es unhindered access to scientific articles, access to data ment of the “Strategy for Responsible Development from public research, and collaborative research enabled 2020” (with the perspective 2030). 63  FOSTERING GREEN INNOVATION IN POLAND 45. The public procurement law (the Act of 11 September 54. In 2020, a new accelerator program was launched to 2019, which came into force in January 2021), updated in support commercialization of findings by researchers of 2019, introduced the obligation for government to pre- the network. pare the State Procurement Policy—a medium-term 55. Researchers receive a full 70 percent of the total value of strategy—to be implemented once every four years. the bonus, forming the basis for sharing the benefits of 46. PCP allows, above all, selecting and financing projects in commercialization. a way that matches solutions to the expectations of the 56. A first stage of the program consists of the articulation of contracting authority as much as possible. “innovation roadmaps” for such innovation missions. 47. The approach and management practices tend to follow Roadmaps contain actions required in terms of techni- the price-basis for contracting—as in standard public cal, implementation/regulatory, and financial pathways procurement rules. Participation of small innovators required to deliver outcomes. They cover the entire val- needs to be strengthened. Improvements are required in ue chain and integrate all driving forces, including re- the use of “technical dialogue” for the design of tenders, searchers, investors, existing and new industries, tech- as well as in interactions and collaboration among par- nology providers, education and talents, legislators, ticipants (OECD 2017). customers, and others. 48. GovTech Polska (https://www.gov.pl/web/govtech) 57. These developments can be coordinated with the strate- leads the contracting authorities in solving their chal- gies supporting sustainable “smart cities” in regions. lenges by organizing design contests run in conjunction 58. There are limits and risks associated with a top-down with the agile methodology, which allows for the rapid approach to steering and managing university research. development of modern solutions in cooperation with However, given the urgency and magnitude of commit- start-ups. ments for transformation, clear prioritization of “chal- 49. Other thematic priorities, such as health, demographic lenges” and high-priority themes may be necessary. change and wellbeing, advanced manufacturing and 59. For example, see the regional innovation projects and processing, and innovation in SMEs may have also in- living labs at Berkeley and San Diego campuses of the cluded some green research and innovation. University of California, which aim to accelerate a re- 50. Although it is not directly focused on research and inno- gional transition to a high-tech green economy and vation, this program provides investments that facilitate speed the uptake of smart grid technologies, electric ve- green transition, create framework conditions, and stim- hicles (EVs), and renewable energy (Trencher et al. ulate future demand for green and innovative solutions 2014). in areas such as sustainable transport and energy net- 60. International examples include the United States, Unit- works, environmental protection, and climate adapta- ed Kingdom, Belgium, and Denmark. tion and mitigation techniques. 61. See for instance, the Sustainable and Smart Campus (liv- 51. There are 400 higher education institutions: 100 public ing lab) at the Hong Kong University of Science and (state-funded) and 300 private institutions. The majority Technology (HKUST). This initiative has resulted in the of the universities are supervised by the Ministry of Sci- launch of 30 or so university-funded projects, including ence and Higher Education but some of them are gov- the installation of indoor air-quality, the development of erned by other relevant ministries such as the Ministry AI-driven tracking systems (ecology), and photovoltaic of Health and the Ministry of Culture. panel efficiency, among others. 52. This group includes: the University of Warsaw, Gdansk 62. At the Swiss Federal Institutes of Technology, the objec- University of Technology, Adam Mickiewicz University, tive of driving a sustainable transformation in a particu- AGH University of Science and Technology, Jagiellonian lar region or city has become an institutional priority. University, Warsaw University of Technology, Medical 63. Another way through which universities and PROs can University of Gdansk, Silesian University of Technolo- support the green transition is by helping communities gy, and Nicolaus Copernicus University. (and industries) in the process of technology assimila- 53. However, in the IDUB program, either Scopus or Web of tion by facilitating learning-by-using and learn- Science journal lists are obligatorily used as success in- ing-by-doing, and thereby absorption and diffusion. dicators so that the internationalization of research has 64. Germany’s “Digital Hubs” are an example of technolo- strong support through this excellence program. gy transfer services. These hubs provide an integral set of services for SMEs in their process of digital transfor- mation, including funding support. 64