The scientific infrastructures established in the past bore fruit in the form of the Israeli high-tech industry. However, budget difficulties, dwindling reserves of scientific manpower, increasing competition in the world and the emergence of new technologies - require the definition of a new national science policy - precise and goal-oriented
By: Roni Lifshitz
Science in Israel has deep roots that were manifested already in the early days of Zionism. The Zionist concept, which combines the establishment of a Jewish national home in the Land of Israel, with the vision that it would be a modern national home, led to the establishment of the Technion, the Hebrew University and the Weizmann Institute of Science even before the establishment of the state. Factories that served as a basis for the creation of an admirable scientific infrastructure. In October 2004, Israeli science received international recognition when two Israeli scientists from the Technion, Prof. Avraham Hershko and Prof. Aharon Chachanover, won the Nobel Prize in Chemistry for groundbreaking research in the field of protein breakdown in the cell.
The State of Israel has no unique natural resources and its population is small. The only support on which it can base its future is the human support - and the only industry on which Israel's economy can be built is an industry based on knowledge. Israel has proven this in recent years. The Israeli technology industry is considered one of the best of its kind in the world and is responsible for about half of the industrial exports of the State of Israel. This industry is largely based on new technologies that have grown in the creative house of Israeli science.
Israeli scientists are considered prolific and are ranked third in the world in the number of scientific articles. The quality of Israeli science is reflected in the fact that in leading scientific fields, the citation volume of Israeli articles is higher than the world average: in the field of mathematics, Israel contributes about 2.8 of all articles in the world, which are cited at a rate 16% above the world average. This figure is called relative influence. In physics the relative influence of Israel is 31%, in chemistry 29%, in space sciences 50% and in materials science 57%.
Israel's scientific weight according to citations to scientific articles: 1993-2003Citations for several articles Citations for several articles
Total
8.56 806,466 94,200
24 16 18 Israel's ranking in the world
SOURCE: ISI Essential Science Indicators
The information and communication industry illustrates the potential inherent in the proper utilization of scientific research and technological development: Israel has built an advanced scientific infrastructure in the field of computer science and communication. Israeli researchers contribute about 2.3% of all scientific articles published in the world in the field and gain a relative influence of almost 50%. In 2000, about half of the Israeli patents registered at the European Patent Office (EPO) were in the field of information technology - computers and communications. The national momentum of creating knowledge in the field of information technology resulted in the construction of the Israeli information industry, whose contribution to the growth of the economy amounted to more than 29% in the years 1990-2000 (Trachtenberg, 2002).
At the same time, the State of Israel is currently facing new challenges that require it to define a national science policy for the years 2005-2015 in order to maintain the comparative advantage built up over decades of hard work. Budget difficulties oppressing Israel's scientific research and technological development system, equipment and personnel infrastructures that are in crisis, the increase in the costs of advanced research, the emergence of new scientific-technological fields, the development of a global economy and growing awareness in the world of the importance of science and technology as generators of economic growth, threaten the scientific and technological position of Israel.
The Rehovot Science and Technology Conference, which is held at the initiative of the Ministry of Science and Technology and in collaboration with the Israeli National Academy of Sciences, aims to create a national dialogue mechanism that will result in the formulation of the necessary policy. This paper describes key challenges that Israel's national science policy will face in the coming years.
In view of science policy in the world
Scientific research and technological development are becoming more expensive every year due to their increasing complexity. In the last 20 years, the development cost of a new drug has doubled at least twice, and the development cost of components in the field of microelectronics has grown 10 times. Under these conditions, every modern economy is forced to deal with many research and development needs, which one research institution, one company, and even A single country finds it difficult to deal with them.
In the last decade there has been a profound change in the attitude of many countries towards the subject of science. The combination of water and energy shortages, climate change, and the economic wealth created in countries that have developed knowledge-intensive industries, have led many countries in the world to recognize the economic, social and national importance of scientific research. National policy for science and technology has been given the status of a central topic for discussion and decision-making in international frameworks, such as the UN, the OECD and the European Union, and in the national frameworks of most countries in the world, including OECD countries and developing countries in Asia, Europe, the Americas and the Middle East.
This recognition received budgetary expression. The total investments of the OECD countries in research and development amounted in 2001 to 638 billion dollars. Government investments in R&D grew at a rate of 5% per year in a third of the OECD countries in 1995-2003. The main investment blocs in research and development in 2001 were: 43% USA, 29% EU, 16% Japan. Total: 88%. Investments in knowledge creation (R&D, software and higher education) reached 4.8% of GDP in OECD countries.
This approach also guides small countries and even countries from the third world, including countries that decided, following the computing and ICT revolution of the 90s, to improve their economic situation by creating national expertise in specific areas of the high-tech industry. Ireland introduced in July 2004 a national plan to build a scientific infrastructure until 2010, with the aim of creating a local industry based on local scientific knowledge and the utilization of industrial knowledge brought to Ireland by foreign companies during the 90s. India has built a domestic software and communications industry worth billions of dollars, following the establishment of policies in the field in the early 90s. The Chilean government decided in 2003 to create local expertise in the field of biotechnology, in order to be able to integrate into the next technological wave. Between the years 1988-2001, Latin American countries (especially Argentina, Brazil, Chile and Mexico) increased their output of scientific and technical articles by about 200%.
At the European Union Council in March 2000 in Lisbon, it was agreed to define a new framework for research and development. Later, the representatives of the EU countries gathered at the Barcelona Conference in March 2002 and decided that by the year 2010 the research budgets of the Union will reach a rate of 3% of the GDP of the European Union: two thirds through private investments and the rest government investments. In June 2004, the European Union Commission published a special announcement in which it announces that, following the Barcelona Conference, the current goal of the European Union is to double the Union's research budget. The Commission explained its position: "Scientific research, technological development and innovation are at the foundation of the knowledge economy and have a decisive effect on economic growth, employment and competitiveness".
The European Union has defined six key areas of interest in the knowledge-rich economy that it intends to develop through cooperation between all EU member states: information and communication, biotechnology, nanotechnology, aviation and energy. In each of these areas, the European Union aims to achieve leading status through various programs that aim to achieve three objectives:
A. Creating a "critical mass" of resources in growing fields such as microelectronics, communications, biotechnology and aviation;
B. Creating centers of excellence through competition between existing research and development centers;
third. Increasing cooperation between national projects carried out in the member states.
Source: NSF 2005
In the early 90s, Israel gained a comparative advantage thanks to investment in scientific infrastructure. During the last decade, the rate of growth in Israel lags behind what is happening in competing countries. According to the CBS (survey of national expenditure for civilian R&D by operating sector and funding sector), the scope of research and development in academia grew by 13.2% in the years 1991-2003. This growth does not keep pace with the expansion of the higher education system and the pace of the rising cost of advanced research.
These trends show that Israeli scientists and knowledge-intensive industries from Israel are expected to face increasing competition in the world market. Competition resulting from an increase in research and development budgets and the expansion of the circle of countries competing in these fields.
In order to maintain its scientific and technological position, Israel needs to define priority areas and increase its investments in scientific research and technological development in these areas, at a rate similar to that of the main competing countries - that is, 5% per year.
Academic research and technological development
In recent years, a number of trends have developed that make it difficult to separate scientific research from technological development. The reliance of technological industries on a business advantage based on a technological advantage, the speed of transferring experimental products from the laboratory to industry, and the integration of university researchers in the fields of business entrepreneurship, resulted in the elimination of the traditional dividing lines between basic research and applied research. Many scientific discoveries are quickly implemented in industry, while large technology companies collaborate with scientists working in academia, and even carry out research at an academic level in their own development departments.
At the same time, scientific research maintains its position as the creator of groundbreaking technological ideas. Ideas which at their best lead to the development of new branches of economy and industry, such as biotechnology, nanotechnology, innovative energy solutions and more. A correct balance between the scientific research developed in universities and research institutes, and the technological development carried out in industry, is essential in order to develop a long-term knowledge economy.
Source: LMS
In the OECD countries, the academy performs about 17.5% of the total research and development (percentage of the total budget for research and development). A significant part of these budgets is intended for the development of physical infrastructures, laboratories and equipment, in order to guarantee researchers conditions that enable innovative research work. A table from the OECD, comparing different countries, shows that economic and technological superpowers invest less resources (relatively) in academic research and development, while small countries or countries that are building a technological infrastructure for the next generation, invest more resources in academic research.
The State of Israel should adjust the rate of investment in academic research to the rate accepted in the countries to which it wishes to be equaled, that is 20%-30%, but it should do so in the most appropriate way. One of the answers that Israel's science policy will have to provide is what is the right mix between funding basic scientific research and funding technological development. How do you fill the gap between the share of academia in research and development in Israel (15.5%) and the rate that characterizes countries such as Switzerland, Australia and Great Britain (about 25%)?
According to the CBS data, the share of R&D in academia from all R&D in Israel amounts to approximately 15.5%. In practice, this rate may be much lower. In the report of the Shmuel Na'eman Institute on the transfer of technologies from the universities to industry from January 2003, there is an assessment of the scope of the research budgets of the universities in Israel. According to the report, in 1999 the research budgets of the Weizmann Institute of Science, the Hebrew University, the Technion, Ben Gurion University and Tel Aviv University totaled approximately 270 million dollars. This is while the national expenditure for civilian research and development that year amounted to approximately NIS 17.7 billion (approximately $4.2 billion).
The appropriate solution for Israel is by investing in applied research with industrial feasibility, as has been done within the infrastructure program of the Ministry of Science and Technology since its inception in 1995. This program both provides the necessary tools for industry, and also nurtures the scientific infrastructure in Israel.
Personnel infrastructure
Refreshing the research workforce, increasing the number of young researchers and bringing in researchers from abroad are an important component of all programs to improve the science and technology output of countries and regional blocs, such as the European Union, the OECD countries and other countries. Employment of workers in the fields of scientific research and technological development grew twice as much as the total employment in 1995-2000. The number of researchers employed in OECD countries increased from 2.3 million in 1990 to 3.4 million in 2000. According to the European Union's assessment, in order to meet the goal of increasing research and development activity in the Union to the extent of 3% of GDP by the year 2010, it will be necessary to increase the number of researchers in the Union by more than half a million.
SOURCE: OECD, Main Science and Technology Indicators, 2002. See appendix table 4-45
Most Western European countries report a stagnation or decrease in the number of graduates with third degrees in the fields of exact sciences and engineering. In order to meet the development goals they set for themselves, they need to recruit researchers from foreign countries. This trend increases the pressure on Israeli researchers to move to other countries. Israel, despite its many scientific achievements, is beginning to lose its attraction to scientists - both Israeli scientists and foreign scientists, who come to it from time to time.
This problem is starting to show in the numbers. The Council for Higher Education reported that in the years 1990-2000 there was a 67% increase in the number of students studying in universities. However, the scope of the academic staff increased by only about 10%.
From the CBS data it becomes clear that even between 1999 and 2003 there was almost no change in the scope of the senior academic staff, which remained at the scope of 5,100-5,200 researchers. In 2001, 60.4% of scientists in universities and research institutes were aged 51 or older. In the medical professions, 62.5% of the scientists are 51 years old or older, and in the physical sciences, 74.1% of the scientists are 51 years old or older. In total, only 10.2% of the scientists found in universities and research institutes are 40 years old or younger. These numbers show that the main backbone of exact science in Israel is based on veteran researchers and a lack of young scientists who will ensure the future of scientific research in Israel.
Refreshing the research system and increasing the number of young researchers are essential in order to preserve the existing knowledge in the country, to enable breakthroughs into innovative scientific fields and to continue building Israel's scientific and technological capacity for years to come.
In order to rejuvenate Israel's scientific infrastructure, there is a need for special encouragement scholarships for young researchers in exact sciences and engineering, including awarding prizes and building laboratories for promising researchers. At the same time, outstanding Israeli researchers who are abroad and working in the preferred fields should be encouraged to return to Israel by creating working conditions that compete with the working conditions found in research centers in Europe and even the US.
Source: LMS
It is recommended that the state consider granting a special research visa to foreign scientists, in order to facilitate their stay in Israel for the purposes of joint research with Israeli researchers, and this in order to expand collaborations with researchers abroad and facilitate the absorption of knowledge from the world.
Israel should take many measures with the aim of rejuvenating the human research infrastructure: providing generous scholarships, providing physical infrastructure for young and promising researchers, and encouraging Israeli researchers abroad to return to Israel.
Intellectual Property
The knowledge economy is characterized, among other things, by increasing efforts to protect intellectual property. In the last decade there has been a large increase in the scope of patent registration in the main patent offices, USA (USPTO), Europe (EPO) and Japan (JPO). In 2002, more than 850 patents were registered in these offices, compared to 600 in 1992. The growth in the scope of patent registration is mainly attributed to the processes of globalization and the development of a knowledge-based economy. The fields of biotechnology, information and communication contribute to this growth in a particularly noticeable way. In surveys carried out in the 80s and 90s, many companies, especially in the fields of biotechnology, chemistry, pharmaceuticals, machinery and computers, reported that patents allow them to maintain a competitive advantage. On the other hand, the patent mechanism prevents the expansion of the use of knowledge. In certain industries, such as the electronics industry, the patent is used as a strategic tool to prevent access to new technologies by commercial competitors.
During the 90s, there was also a large increase in the scope of Israeli patent registration. Half of the Israeli patents registered in Europe in 2000 were in the field of computers and communications, a phenomenon that teaches both about the ability to create knowledge in Israel, about the development of the local high-tech industry, and about the excessive bias of creating knowledge in a limited field.
In recent years, the recognition of the importance of patent registration by universities and public research institutions has been expanding. In the 80s, the Bayh-Dole Act was passed in the USA, allowing entities that received federal research budgets to register patents and transfer them to industry. Following the US, most OECD countries changed the regulations or laws, with the aim of allowing public research bodies to submit applications, own or grant rights to use the intellectual property created with government funding. This trend has not fundamentally changed the revenue model of research universities in Israel and around the world, and their royalties from patents still amount to about 5-10% of their revenue.
Many countries in the world have defined new regulations that facilitate the commercialization of intellectual property and its transfer to industry. Denmark and Japan have increased the independence of universities in order to facilitate the transfer of knowledge to industry. Following new legislation in Norway, transferring knowledge to industry is a distinct mission of academia. Norway and Switzerland have completed legislation giving academia the rights to intellectual property created with government funding in order to facilitate its transfer to industry. Iceland and Finland are in the midst of such a legislative process.
In the State of Israel there are public knowledge creation centers such as universities, government research institutes, government hospitals and more. Today, the question of patent registration and exploitation is under discussion, but has not yet been agreed upon.
Allowing public bodies to register patents and trade knowledge created with public money, will release a lot of knowledge developed in these bodies, will allow them to create industrial hubs around them and use the knowledge for the benefit of the public, to raise private capital and create new jobs.
Financial protection
The economic crisis caused by the bursting of the high-tech bubble in 2000-2001 created a funding crisis in the research and development sectors in all OECD countries and resulted in a reduction in the rate of investments in R&D. From an annual growth of 4.6% in 1994-2001, to a growth of less than 1% in 2001-2002. This decrease is largely due to a decrease in the scope of venture capital investments and the reduction of R&D investments by technological companies, but also due to a decrease in government budgets. In response to this predicament, and recognizing the importance of innovation for economic growth, many countries in the OECD organization have taken steps designed to protect government research and development budgets from budget cuts.
In Israel, following the economic crisis of the last four years, government budgets for scientific research and development have been cut significantly. Both within the framework of the Ministry of Science and Technology, both within the budgets of the institutions for higher education and the budgets of the chief scientist at TMT and the budgets of the government research institutes.
It is necessary to establish a wall of protection against further cuts, and to decide that the 2004 budgets are a lower red line for government funding of scientific research and technological development.
Number of patents registered at the US Patent Office: by selected countries
Country 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
US origin 51,178 52,253 53,231 56,066 55,739 61,104 61,707 80,289 83,905 85,070 87,606
Japan 21,025 21,925 22,293 22,384 21,764 23,053 23,179 30,840 31,104 31,296 33,223
Germany 7,680 7,309 6,893 6,731 6,600 6,818 7,008 9,095 9,337 10,234 11,259
Taiwan 906 1,001 1,189 1,443 1,620 1,897 2,057 3,100 3,693 4,667 5,371
France 3,030 3,029 2,909 2,779 2,821
UK 2,800 2,425 2,295 2,234 2,478 2,453 2,678 3,464 3,572 3,667 3,965
Canada 2,037 1,964 1,944 2,008 2,104 2,232 2,379 2,974 3,226 3,419 3,606
South Korea 405 538 779 943 1,161 1,493 1,891 3,259 3,562 3,314 3,538
Sweden 716 626 636 706 806 854 867 1,225 1,401 1,577 1,741
Italy 1,209 1,271 1,285 1,215 1,078 1,200 1,239 1,584 1,492 1,714 1,709
Switzerland 1,335 1,197 1,127 1,169 1,056 1,112 1,090 1,279 1,279 1,322 1,420
Netherlands 992 855 800 852 799 797 808 1,226 1,247 1,241 1,332
Israel 304 335 314 350 384 484 534 754 743 783 970
Australia 463 409 378 467 459 471 478 720 707 704 875
Finland 331 361 293 312 358 444 452 595 649 618 732
Belgium 324 325 350 352 397 488 515 693 648 694 718
Austria 359 371 312 289 337 362 376 387 479 505 589
SOURCE: Science & Engineering Indicators – 2004
Public/private collaboration
As part of their efforts to strengthen their position in the field of scientific research and technological development, many countries in the world discovered that public/private cooperation, also known as P/PP (Public/Private Partnership), has a decisive weight in their ability to improve national competitiveness in the fields of scientific research and technological development. P/PP projects are a growing component of research and development budgets in OECD countries. In 2002, 78% of the funding budgets were directed to competitive research through P/PP mechanisms, compared to 37% in 1998. The Dutch government allocated 805 million euros for P/PP projects in strategic areas in 2003-2010. Austria, Australia and Sweden expanded the scope of the budget for P/PP projects and Ireland, Hungary, Switzerland and the Czech Republic initiated new P/PP projects.
Of these, many P/PP projects are carried out in the framework of state/business/academia joint research centers. At the same time, countries such as Belgium, Denmark, France, the Netherlands, New Zealand and the United Kingdom are making an effort to establish networking mechanisms between academic and industrial research centers in order to improve coordination and the quality of work. The State of Israel has gained positive experience in industry/academia cooperation within the magnet projects of the Ministry of Science and Technology and the infrastructure program of the Ministry of Science and Technology.
Increasing the number of programs designed to achieve cooperation and the utilization of governmental and private capabilities will allow the existing potential in Israel to be exhausted.
Cooperation at the national level
With the awakening of interest in the nanotechnology industry, the United States initiated a National Program for Nanotechnology (NNI) which was designed to coordinate the research and development activities carried out in academic institutions and national laboratories. Similar to the USA, the European Union tries to coordinate research and development activities within the framework of sub-programs within the 6th and 7th framework program of the European Union.
Israel has advanced knowledge in leading fields such as nanotechnology, stem cells, immunology, biotechnology, electro-optics and more. However, in order to take advantage of the combined potential, a cooperation plan must be created that unites the researchers and research facilities found in various academic institutions and in the local industry, in order to create a local critical mass capable of producing scientific and technological breakthroughs, and attractive to investors from abroad.
One of the ways to create a critical mass is the establishment of clusters, which allow research groups from different institutions to continue their independent activities, but benefit from shared physical infrastructure and services, as well as ease of access to industry. The association gives an advantage to aggregate size and cooperation. It is a virtual organization that takes advantage of the short geographical distances in Israel and the communication-oriented culture characteristic of many Israeli scientists. The association aims to maximize the utilization of existing resources, finance the purchase of essential equipment through the tender method, and strengthen the relationship between academia and industry.
To illustrate: the members of the association will enjoy access to all the equipment in the possession of all its members. The association will initiate flagship projects that will utilize the collective potential of all its members. For example, the association will hold a tender to assist in the purchase of equipment, the winner of which will give the best conditions to the other members of the association, it will grant the right of use to commercial companies in order to shorten the development time of new Israeli products, and will provide liaison services between researchers and industry.
National associations in high-priority fields, such as nanotechnology, biotechnology, nanoelectronics and others, will exploit the aggregate potential that exists in the country. The initial budget of each association should ensure the establishment of a common infrastructure at one of the highest levels in the world.
National science policy
In light of the high cost of scientific research and technological development, it is necessary to define clear priority areas. The State of Israel should define key areas that it wishes to develop in accordance with their relative contribution to its economy and in accordance with Israel's national needs. Nanotechnology and biotechnology appear to be fields with high potential for creating the next generation of the high-tech industry in Israel. This is based on the fact that these areas touch on scientific areas in which Israel has some of the most advanced scientific knowledge in the world and both are largely based on industrial knowledge in which Israel has gained great expertise, such as microelectronics, electro-optics, drug development, medical equipment, and the like.
Other areas of interest are of national importance due to their weight in the areas of national infrastructure, society, national security and Israel's geopolitical situation. Among them: public health, energy, environmental and water quality, homeland and border security, earthquakes, Earth observations, and the like. In recent years, the economic potential hidden even in areas considered to be of national interest only has been revealed. The rising level of urbanization, environmental pollution, global warming and rising oil prices show that these areas may be of increasing economic importance in the years to come. In many of the infrastructure fields, such as water, alternative energy, space, and more, Israel has unique knowledge that can be utilized for economic needs at the same time as their importance in protecting national interests.
One of the goals of the Rehovot Conference is to create a process during which all interested bodies in Israel: government ministries, universities and government research institutes, the Israeli National Academy of Sciences, the National Council for Research and Civil Development, the Forum of Chief Scientists in Government Ministries and other bodies will examine Israel's capabilities and needs, in order to bring their recommendations for the next conference, for the purpose of formulating a national policy based on investigation, negotiation and agreement.
At the same time as the process of receiving the recommendations, an organizational and financial infrastructure must be created that will allow the State of Israel to derive the most benefits from its scientific and technological capacity.
This infrastructure includes:
• A funding program that will enable the development and preservation of scientific infrastructures with applied potential
• Funding research on a competitive basis that promotes these goals
• Ensuring the knowledge found in government research institutes which will be defined as essential national knowledge
• Launching national initiatives (flagship projects) of national or industrial importance that will be carried out jointly by academia and industry
• Creation of national associations as a basis for excellence and cooperation between laboratories and research centers
• Increasing the attractiveness of Israel as the seat of leading researchers in the chosen fields.
• Support for scientific infrastructures (equipment, laboratories and personnel) essential for encouraging the chosen fields.
The Rehovot Science and Technology Conference provides an opportunity to bring together all the stakeholders in Israel's science and technology policy, in order to exchange opinions and prepare their assessments and recommendations for the 2006 Rehovot Conference. These recommendations will serve as a basis for building a national science policy for the coming decade, based on a variety of opinions and ideas and a national consensus .
Sources
Manuel Trachtenberg, "Research and development, high-tech and economic growth," Economic Quarterly, December 2002.
Council for Higher Education, "Recent Developments," http://www.che.org.il/stat/itpathuiot-f.html>, March 29, 2001.
Central Bureau of Statistics, Statistical Yearbook for Israel, No. 55, 2004,
< http://www1.cbs.gov.il/reader/shnatonhnew.htm>
Daniel Shafer and Amnon Frankel, "Analysis and Policy Formulation for the Transfer of Technologies from Universities to Industry," Haifa: Shmuel Na'eman Institute for Advanced Research in Science and Technology, Technion, January 2003.
Building Ireland's Knowledge Economy: The Irish Action Plan for Promoting Investment in R&D to 2010, Report to the Inter Committee on Science, Technology and Innovation, July 2004
< http://www.entemp.ie/publications/enterprise/2004/knowledgeeconomy.pdf>
Commission of the European Communities, Science and Technology: The Key to Europe's Future - Guidelines for Future European Union Policy to Support Research, Communication from the Commission, June 16, 2004, COM(2004) 353 final.
