Research and Development (R&D)

Other support programs of enterprise R&D were promoted through the AdI such as consortium-led R&D projects involving enterprises and scientific and higher education institutions, and the recruitment of PhDs by companies.

It is also to be noted the the Adl collaboration with the Ministry of Internal Affairs (MAI) in monitoring the technology part of the PEP – Portuguese Electronic Passport, of which one of the tangible outcomes is an innovative piece of equipment for collecting biometric data which was developed and put into production by a Portuguese SME, and also the equipment for checking electronic passports at border points. The first demonstration equipments were put into operation at Faro Airport from April 2007 on, and they were then installed at Lisbon Airport and at the new Terminal 2 since its opening at the beginning of August 2007. Also in cooperation with the MAI, Adl has helped to specify and launch calls for tender for development projects for a drone aircraft to detect fires.

Several ICT enterprises continue to have important R&D activities, including some whose R&D expenses are among the highest in all sectors. Information on some of them can be found in New Technology Enterprises.

The Government launched the Commitment to Science for Portugal’s Future initiative on 29th March 2006 via an intervention by the Prime Minister in the Portuguese Parliament (text in Portuguese). This initiative sets ambitious targets, even for 2009, and has adopted the following five major guidelines:

• Investing in scientific knowledge and scientific and technical competence measurable at the highest international level.
• Investing in Human Resources and Scientific and Technological Culture.
• Investing in public and private R&D institutions, consolidating them, their responsibilities, organisation and online infrastructures.
• Investing in Internationalisation, Rigor and Evaluation.
• Investing in Enhancing the Economic Value of Research.

Implementing this initiative involves strengthening the public S&T budget for 2007, increasing the public budget for competitive R&D funding, channeled through the Science and Technology Foundation (FCT), the Office of International Relations of Science and Higher Education (GRICES) and UMIC, with 254 million Euros more than in 2006 (62% increase in the competitive funding of the S&T system by FCT, GRICES and UMIC from 2006 to 2007).

Some of the initial implementations of the Commitment to Science for Portugal’s Future initiative measures are worth highlighting:

• Launching of the first calls for tender for program-contracts with public or private scientific institutions in April 2006, with the objective of funding individual research work contracts through open competition and international merit review. The program-contracts aim to hire at least 1,000 PhDs up to 2009 (text in Portuguese) and will be geared up towards increasing critical mass or creating new teams, as well as researcher mobility.
• 60% increase in the number of new PhD and post-doctoral fellowships and five months antecipation of the beginning of fellowships awarded though the call launched in 2006.
• Creation of the International Iberian Nanotechnology Laboratory, in Braga, as an international organisation of excellence promoted by Portugal and Spainand open to other countries, with 200 researchers to be recruited internationally.
• Creation of 4 new Associate Laboratories in the fields of nanotechnology, energy and transport.
• Creation of international S&T partnerships (text in Portuguese) of large dimension, involving higher education, research institutions and enterprises working together with international scientific organisations, foreign universities and other scientific and technology bodies of world excellence. The first of these partnerships was the MIT – Portugal Program, which was followed by partnership agreements with Carnegie Mellon University and the University of Texas at Austin.
• State Laboratories Reform (text in Portuguese), based on the recommendations of an International Working Group: 5 State Laboratories were terminated or incorporated in other institutions; 2 were created (National Energy and Geology Laboratory, National Biological Resources Laboratory); the State Laboratory status was awarded to the Legal Medicine Institute; the implementation of an innovative R&D Consortium model , as a private, non-profit body was decided, linking State Laboratories, Associate Laboratories, companies and other national and foreign bodies, starting with the creation of 4 consortia (BIOPOLIS for Biology and Biotechnology, Física-N for Nuclear and High Energy Physics and Distributed Computing, RISCOS for natural and environmental risk prevention and mitigation, OCEANO for Oceanography); the International Volcanology Centre was created in Azores; a State Laboratories Mobilizing Programme was set up at the FCT, based on support for developing R&D centres and networks, their involvement in national and international partnerships and the competitive promotion of the most relevant R&D capabilities of each institution; an International Scientific and Technical Committee was set up to monitor the reforms.
• The National GRID Initiative was launched on 28th April 2006 and included a call for tender for R&D projects and to demonstrate GRID computing, which was launched by the FCT in November 2006. This will be followed by a call for tenders to improve infrastructures. Also of note was the launch of the Portugal-Spain GRID computing cooperation scheme, which was spearheaded at the Portugal-Spain Summit in November 2005 and which received a renewed boost at the 2006 Portugal-Spain Summit, in particular through the creation of the IBERGRID network. The body responsible for implementingthe National GRID Initiative is the Science and Technology Foundation (FCT). The Knowledge Society Agency (UMIC) prepared the initiative’s programme framework, namely the document setting out its definition, objectives and instruments, and plays an observation and monitoring role of the initiative’s development.
• Calls for tender for Ciência Viva Schools projects were promoted again, with roughly 900 projects approved in 2006. Approximately 700 student internships were done in research laboratories over the summer months in 2006. Thousands of Portuguese people were involved in Ciência Viva in the Summer on August and September, namely in Astronomy, Biology, Geology, visits to lighthouses and Engineering activities. The Ciência Viva Centres Network was updated and expanded to 13 Centres in various locations around the country. 5 more are planned to open by the end of 2008. These activities are coordinated by Ciência Viva – National Agency for Scientific and Technology Culture (site in Portuguese).

The main factor for strengthening scientific and technology capacity is advanced training of human resources, especially at doctorate and post-doctorate level. The number of doctorates obtained at or recognised by Portuguese universities increased from 1995 to 2009 at an average of 7% a year, contributing to a 10% annual increase in the total number of doctorate holders in the same period. One important contribution to this growth has been the awarding by FCT of doctorate and post-doctorate fellowships, with co-funding from the Community Support Frameworks, namely Praxis XXI (1994-1999), POCTI/POCI (2000-2009) and POSI/POSC (2000-2009) programs. The number of students directly receiving doctorate and post-doctorate grants from the FCT more than doubled (respectively, 111% and 104% increases) between April 2005 and April 2010, when the number of students receiving FCT doctorate and post-doctorate fellowships reached 8,630 and 2,040 respectively.

The main indicator internationally-adopted for scientific production is the number of scientific publications that are referenced internationally, namely in the Science Citation Index Expanded, Reuters/Thomson Scientific/Institute of Scientific Information (Reuters/Thomson/ISI), Philadelphia. The number of scientific articles authored or co-authored by researchers working in Portuguese institutions referenced by Reuters/Thomson/ISI increased from 1995 to 2009 at an annual average of 12%. The number of publications referenced by Reuters/Thomson/ISI grew 23% from 2005 to 2006.

To sum up, from 1995 to 2009 the number of doctorates and scientific publications referenced internationally increased at an annual average of 10% and 13%, respectively. In simple terms, from 1995 to 2009, the number or doctorates quadrupled and the scientific production quintupled. These are very high figures for an 14 year period and show significant improvements not only in the labour force for research, but also in its productivity.

The SIFIDE – Tax Incentives System for Entrepreneurial R&D (text in Portuguese), which was discontinued in 2003, was readopted and strengthened in 2005 based on specific justifications (text in Portuguese), placing Portugal back among the OECD countries with the highest tax incentives for company R&D activities, as had been the case from 1997 to 2003.

The SIFIDE, together with other S&T policy instruments like the consortium R&D projects involving enterprises and scientific institutions program, the employment of doctorate and masters holders in enterprises program, and the internationalisation of enterprise R&D actions in the scope of the EUREKA initiative, of the European Union Framework Program of RTD and the opportunities opened to enterprises in international scientific organisations (in particular, CERN – European Organization for Nuclear Research, ESA – European Space Agency and ESO – European Southern Observatory), has contributed decisively to the major increase in enterprise R&D spending witnessed over the 1995-2001 period, after having stabilised at between 0.1% and 0.14% of GDP from 1998 and 1997, and after having even decreased between 1990 and 1995, this figure rose to 0.28% of GDP in 2001 (the largest growth seen over this period in all EU countries). From 1995 to 2001, the number of enterprises identified by the Science and Technology Observatory as having R&D activities increased tenfold, from roughly two hundred to approximately two thousand.

On the 10th of March 2009, within other measures of response to the economic and financial crisis, the SIFIDE was changed: Portugal Adopted the Highest Level of Fiscal Incentives in Europe for R&D Companies. According to the Law No. 10/2009 (text in Portuguese), of March 10, the fiscal deduction applicable to the total R&D expense increases to 32.5%, to which adds a deduction of 50% of the increase of the R&D expense relatively to the two preceding years (up to 1.5 million euros). So, the total deduction to the IRC can reach 82.5% of the investment in R&D. These new measures increase the fiscal deduction for enterprise R&D in 12.5 percentage points relative to what was being applied since the SIFIDE was reintroduced in August of 2005, and doubling the possible fiscal deduction on the basis of the increase in R&D expenses relatively to the two preceding years. With this measure, Portugal assumes the highest fiscal incentives to R&D private investments in Europe, even greater than the very high incentives recently adopted by France within measures of response to the economic and financial crisis.

The increase in the public budget for R&D from 2004 to 2010 (9% average annual growth at constant prices) has provided a decisive stimulus to increased funding for R&D activities.

After a drop in 2002-2003, the amounts in the public budget for R&D rose again, but only in 2005 did they surpassed the amount registered three years before at constant prices, and they had a major growth from 2004 to 2009 (9% average annual growth at constant prices).

From 2004 onwards, the budget for competitive public R&D funding at the FCT, GRICES and UMIC increased substantially, although it was only with the corrective budget of 2005 that it exceeded the amount of 2002, three years before. In the scope of the Commitment to Science for Portugal’s Future initiative, the budget for competitive public R&D funding at the FCT, GRICES and UMIC saw particularly high growth from 2006 to 2007 (62% at current price levels), with the total sum reaching 664 million Euros.

In conclusion (see summary in pictures):

Between two periods of stagnation (1986-95 and 2001-05), particularly successful policies in the 1995-2001 led to marked growth in R&D spending in enterprises relative to GDP (17% average annual growth), while total R&D spending grew at an average of 7% per year relative to GDP. This growth was linked to a steep rise in competitive public R&D funding as part of the FCT and ICCTI budgets (22% average annual growth in 1995-2001).After contracting in 2002-2003, competitive public R&D funding through the FCT, GRICES and UMIC saw its highest growth levels ever from 2005 to 2007 (28% per year), though they decreased somewhat from 2007 to 2010 (at 7% per year).

As a consequence of the mentioned changes, there was in 1995-2005 a structural reform of the share in the R&D expenses by implementation sectors (universities, enterprises, State, nonprofit institutions). In fact, the enterprises share of the total R&D spending grew more than 70%, primarily at the cost of the State share, which halved, while the percentage of spending by universities and nonprofit institutions remained roughly constant. In summary, from 1995 to 2005 there was a major transfer of the share in R&D expense from the State to enterprises.

The structural reform of the distribution of  R&D expense by sector of performance that occurred in 1995-2005 was reassumed in the period 2005-2007, with an increase in total intensity in R&D (percentage of expenditure on R&D in the GDP) at an annual average rate of 15.3% and the intensity of R&D in enterprises at an annual average rate of 40%, both the largest increases seen in this period in the EU, which means that the expenditure on R&D in enterprises was in 2007, for first time ever, larger than the sum of expenditure on R&D in all other sectors (State, universities, private nonprofit institutions).

Regarding R&D, the Knowledge Society Agency (UMIC), in addition to promoting the New Technology Enterprises – NEOTEC Initiative, the Technology and Knowledge Transfer Workshops (OTIC) and the Networks of Competence and funding the Adl – Innovation Agency to carry out these and other projects such as the 3rd Innovation Days, has been involved in the administration of the Knowledge Networks launched within the Partnerships for the Future action and in the implementation of some of their specific subprojects in the scope of the Carnegie Mellon – Portugal Program, the UTexas Austin – Portugal Program, the Fraunhofer – Portugal Program and the Harvard Medical School – Portugal Program, in the administration of the project installation of the INL – International Iberian Nanotechnology Laboratory and in the coordination between Portugal and Spain in this project, in the monitoring of the INGRID - National GRID Initiative and the IBERGRID initiative in cooperation with Spain, and has led the representation of the Portuguese Presidency of the EU in the second half of 2007 at CREST – Scientific and Technical Research Committee (CREST meeting of 6th July 2007, CREST meeting of 11th -12th October 2007, CREST meeting of 6th -7th December 2007).

Also during the Portuguese Presidency of the EU in the second half of 2007, the Knowledge Society Agency (UMIC) was involved in organising conferences looking at key aspects for R&D, namely the e-Government Ministerial Conference, the "On RFID – The next step to THE INTERNET OF THINGS" Conference and Exhibition , the High Level Conference on Nanotechnology, and the following meetings: European Union National ICT Research Directors Forum, Bureau of the ARTEMIS (Embedded Systems) European Technology Platform, Nanomedicine European Technology Platform, Steering Group of the EPoSS (Smart Systems) European Technology Platform, Programming Committee for Theme 4 "Nanoscience, Nanotechnology, Materials and New Production Technologies (NMP)" of the “Cooperation" Programme under the 7th Research Framework Programme, Open Workshop for the HEALTHY AIMS project on Health Applications to Demonstrate Micro-Nano-Bio Convergence, Workshop on Computer Systems under the HIPEAC – European Network of Excellence on High-Performance Embedded Architecture and Compilation, Workshop of European Microfluid Experts of the Association, ICT Committee of the EU’s 7th Research Framework Programme.

At the session on 12th May 2008 Science 2008: More Scientists for Portugal (text in Portuguese), which was chaired by the Prime Minister, José Sócrates, the Minister for Science, Technology and Higher Education, José Mariano Gago, presented a series of new measures (text in Portuguese) for Science in Portugal. These included the support of the Science and Technology Foundation (FCT) to the integration of 5,000 higher education students in research, the creation of Invited Chairs at universities with public and enterprises support, and the launching of open calls for new research grants and for the hiring of 500 more PhD level researchers.

In this session, the first two Invited Chairs were announced, both at University of Aveiro: An Invited Chair in Renewable Energies sponsored by Martifer Inovação e Gestão S.A., and a Invited Chair in Telecommunications sponsored by Nokia-Siemens Networks. This programme would later involve, with the support of FCT, the following Invited Chairs: Invited Chair Delta Cafés in Biodiversity, at University of Évora; Invited Chair BES-Biodiversity, at University of Porto; Invited Chair EDP in Biodiversity, at University of Porto; Invited Chair in String Theory, at Instituto Superior Técnico; Invited Chair Odebrecht Capistrano de Abreu in Brazil and PortugalHistory, at University of Algarve; Invited Chair REFER in Biodiversity, at University of Porto; Invited Chair Santander Totta in Nanotechnologies, at University of Madeira.

It was also obtained the support of enterprises for the following Invited Chairs: Invited Chair Zon in Innovation and Operations Management; Invited Chair Atsutoshi Nishida” in digital content production and technology use in education, as an integral part of the Toshiba Portugal Research and Learning Network; Invited Chair Alcatel-Lucent in Information and Communication Technologies. The last three were assured with the involvement of the Knowledge Society Agency (UMIC) in negotiations with the respective companies.

In June 2010, the Minister of Science, Technology and Higher Education conferred to the Knowledge Society Agency (UMIC) the attribution of supporting Invited Chairs in the areas of its action. In October 2010, Knowledge Society Agency (UMIC) signed with ZON Multimedia and the Faculty of Economics and Enterprise Sciences of the Portuguese Catholic University the contract-program to support the Invited Chair ZON in Innovation and Entrepreneurship.

It is also worth noting the annual meetings "Encounters with Science in Portugal”, since 2007, jointly organized by the CLA – Council of Associated Laboratories, the Science and Technology Foundation (FCT) and the Knowledge Society Agency (UMIC) (see Science 2007 – Encounter with Science in Portugal, Science 2008 – Encounter with Science in Portugal, Science 2009 – Encounter with Science in Portugal: Topics of Future Internet Highlighted).