Over the past decade, we have experienced boom and bust that has left us wondering what is next to come. We have grown accustomed to crisis and the last one was by far the most severe since the world depression of the 1930s.

The unprecedented fall, like dominoes, of major banks and property lending institutions, highlighted the perils of globalisation. We have experienced the fall of Fannie Mae and Freddie Mac, Northern Rock, and the Lehman Brothers, the bankruptcy of Iceland, the bailouts of Greece, Portugal, Ireland, (Spain) and Cyprus.

The list seemed exhaustive with economists speculating about the next institution or country to fail. The world economy lived its darkest days with a recession that has destroyed the lives of millions of people.

Countries that embraced innovation and ingrained it into their economic spectrum were spared the ruinous effects of the financial crisis. The last report published by the World Economic Forum made it plain that countries need to identify new value-added products or services to drive forward economic growth.

In other words, we cannot rest on our laurels and rely on existing economic sectors only. Emerging countries are catching up fast and innovation is vital for achieving sustainable economic growth and competitiveness.

Innovation has also been made a top priority by the EU through its Horizon 2020 strategy. This programme is not only aimed at overcoming the financial crisis but also at delivering growth, new employment and inclusive development. Europe should not focus only on the economic sectors that contributed to its global emergence after World War II. It has to be innovative and base its growth on smarter sectors.

Malta is embarking on a quest to unleash the innovation spirit that lies in each and every one of us. To succeed in this quest we are setting and strengthening the structures to assist in the creation and commercialisation of innovative ideas.

Each country has areas with the potential to be turned into innovation clusters. Malta has identified four clusters with a higher degree of innovation potential over other sectors. They are ICT, value-added manufacture, health and biotechnology, and environment and energy resources.

Investment will be targeted at these sectors to boost Malta’s innovation standing and improve economic competitiveness.

The R&I target of 0.67 per cent of GDP, set by the previous Administration, placed Malta 26th out of 27 EU countries and was being interpreted as a lack of political commitment to research and innovation. We have revised upwards our target for investment in research from 0.67 per cent to two per cent of GDP by 2020. This revision demonstrates the Government’s commitment to prioritising research and innovation because we firmly believe that our future lies in our capability to identify and develop new ideas.

This process started recently with the introduction of a new scheme aimed at addressing the gap in research and innovation where there is lack of funding to turn ideas into businesses. The commercialisation voucher programme, which will be managed by the Malta Council for Science and Technology (MCST), is aimed at researchers, micro-enterprises and SMEs. The programme provides a framework to support innovative research and ideas with a commercial potential.

The scheme has a two-pronged approach. On the one hand, the support voucher is aimed at encouraging the transfer of knowledge between academia and business enterprises and, on the other, it assists researchers in developing their ideas and turning them into marketable products and services.

Interested parties will be assisted through various processes such as patent checks, market research, initial patent application, drawing up a business plan and holding investor meetings.

The commercialisation voucher programme is just one scheme to tap the potential to innovate. The Government will go further to create the right environment for research and innovation.

As the World Economic Forum report states, the distinction between developed and developing countries will become less relevant because the onus will be placed on whether a country is innovation rich or innovation poor.

Innovation has to become ingrained in society. It has to become our forma mentis. The standard of living we enjoy today cannot be guaranteed unless we innovate and chart our future in smart and sustainable economic sectors.

Stefan Buontempo is Parliamentary Secretary for Research, Innovation, Youth and Sport

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