Funding an innovative economy
Katarzyna Zachariasz: Between 2007 and 2013 Poland will receive more than EUR 67 (zł.258) billion in EU cohesion policy funds. How much of this money can entrepreneurs count on?
Tomasz Nowakowski: It could be said that entrepreneurs will benefit from every single euro, because sooner or later all this money will appear somewhere in the economy. However, direct support for business is provided by a few special programs. For entrepreneurs, the most important program is Innovative Economy, from which we will get about EUR 8.5 (zł.32.7) billion. The Human Capital program, worth more than EUR 10 (zł.38.5) billion, is also very important, though it is less oriented towards investments than towards projects connected with the labor market. In the 16 Regional Operational Programs funds of at least EUR 3 (zł.11.5) billion are provided for SMEs. And in the Infrastructure and Environment program we also have about EUR 200 (zł.770.4) million for firms developing environmentally-friendly projects or investing in renewable energy sources.
Innovative Economy is a program designed primarily for business. What kinds of companies can apply for EU subsidies?
Within the framework of the Innovative Economy program we decided to support mainly those companies which are highly - or at least moderately - innovative, whose success will be significant for the development of the whole economy. We will also back the formation of enterprises involved in the newest, most innovative activities, which is often highly risky. A third form of support is designed for companies that could export their products but, for various reasons, do not.
What criteria will decide if a company is innovative enough?
The main criterion is whether this technology is known in Poland and for how long. The technologies that will be promoted are those that have been known for less than a year and are really the newest and the best. The second criterion is connected with our understanding of the term "innovation," which is very broad and is not confined to product or process innovation, but also includes service innovation. The third criterion is the possibility of extending these innovations to other companies.
Does this not mean that support will be given mostly to huge companies that can afford to buy expensive, cutting-edge technologies?
Not at all. In the Innovative Economy program, projects for various kinds of companies have been prepared. Some are projects targeting investments of huge significance for the Polish economy, worth at least EUR 40 (zł.154.1) million. Consequently, big companies are most likely to gain from this. However, in the other projects the minimum total investment value is fixed at EUR 2 (zł.7.7) million, which means that medium-sized and small enterprises can also benefit.
Are there any limits on the amount of funds which will be granted?
Firstly, projects worth more than EUR 50 (zł.192.5) million require individual supervision by the European Commission. Secondly, it must be remembered that some restrictions on public aid for private enterprises exist, so a grant's maximum value is determined by the firm's size and the GDP of the region in which the company is situated.
New technologies require sophisticated research ...
Yes, and that is why the decision was made to support research as well as centers devoted to research. However, our primary goal is to increase cooperation between business and science. We plan that most research will be commissioned by entrepreneurs. A scientific group that wants to conduct research will have to find a company potentially interested in its results in order to receive funds from the government.
Why does the Ministry pay so much attention to innovation?
It is Poland's only chance for progress. Currently Poland is wonderfully attractive for foreign investors, but it must be remembered that investments based on low labor costs and market access will diminish and we should be considering how to become more competitive.
It is crucial to make a civilizational leap so that, in a few years' time, the economy is not based on production but on high technology and the most modern services. This is our future.
