BGI Consulting carried out the evaluation Case Study of Investments in Integrated Science, Studies and Business Centers (Valleys)
2021 06 30
November, 2020 – June, 2021 BGI Consulting carried out the evaluation Case Study of Investments in Integrated Science, Studies and Business Centers (hereinafter – Valleys). The evaluation was commissioned by the Ministry of Finance of the Republic of Lithuania. The evaluation case study is part of the evaluation of Scale and Impact of European Union Funds’ and other Investments in Education and Science Infrastructure.
The main aim of the case study was to evaluate the effectiveness, efficiency and long-term impact of the implementation of 5 Valleys (Sunrise Valley, Santara Valley, Santaka Valley, Nemunas Valley and Maritime Valley) Development Programmes and to assist the Ministry of Education, Science and Sports of the Republic of Lithuania (hereinafter – MESS) in implementing the recommendations submitted by the National Audit Office by reporting on the results of the implementation of the Valley Development Programmes.
In this case study, the Valley is understood to encompass three related elements: research and experimental development (hereinafter – R&D), education and knowledge-intensive businesses, together with their shared infrastructure and interconnections. The case study focused on the measures that invested in R&D and businesses, affiliated with Valleys, infrastructure and its management without analyzing investments directed exclusively at the study infrastructure and its management. During the analysis, investments, designed to foster closer cooperation between research and education institutions and private sector entities were divided into 3 groups: 1) investments in the infrastructure of the Valleys; 2) investments in the infrastructure of businesses affiliated with the Valleys; 3) investments in the management of Valleys’ infrastructure.
According to the criteria of effectiveness, efficiency, and impact, it can be stated that the process of building the Valleys falls into the period of 2007-2020 and was mainly financed by the EU Structural Funds. A total of 22 measures financed by the EU Structural Funds were allocated to the development and improvement of the Valleys, under which 379 projects were implemented. Most of the projects for the development of the Valleys’ infrastructure were implemented until the spring of 2016. The total investments in the Valleys amounted to EUR 572 million. Most of them (83 percent) were invested during the 2007–2013 funding period, while the remaining 17 percent were invested during the 2014–2020 funding period. Also, the majority (more than 80 percent) of the funds were invested in the development of infrastructure, about 12 percent were allocated to the management of the Valleys, and 8 percent were invested in the infrastructure of the businesses affiliated with the Valleys. The largest share of investments (EUR 211 million) was provided to the Sunrise Valley, slightly less was distributed to the Santara and the Santaka Valleys, about EUR 143 million and EUR 121 million, respectively. Meanwhile, the smallest share of EU Structural Funds’ investments (EUR 55 million and EUR 42 million), respectively) were given to the Nemunas and the Maritime valleys.
Considering the ratio of the values of the indicators achieved and planned, the Sunrise Valley can be considered as the most productive of all the Valleys. Meanwhile, the Santaka and Maritime valleys had the lowest performance. Assessing the efficiency of investments in the Valleys (the cost of creating one unit of result), the relatively highest investment efficiency is seen in the Nemunas Valley, and the relatively lowest – in the Sunrise and Maritime Valleys. In general, the creation of the Valleys was timely and important both for the state, scientists and (or) researchers and businesses, since it provided the framework conditions and impetus for more intensive science and business cooperation.
Finally, it is important to note that there are some differences between the Valleys in terms of scientific cooperation. For example, the Sunrise and Santara Valleys have intensified cooperation with businesses, partly due to the relatively high number of new knowledge-intensive businesses in the fields of lasers and biotechnology. Meanwhile, the Santaka and Nemunas Valleys are more responsive to the needs of traditional industries implementing R&D-based innovations, and companies cooperating with these Valleys are more reliant on the financing of EU Structural Funds. In general, the Maritime Valley functions as one institution with several divisions and not as all other Valleys, which unite a group of entities. In this Valley, co-operation takes place mainly with several long-term partners, and the establishment of new knowledge-intensive companies is extremely rare.
Various evaluation methods were used during the evaluation: document analysis, analysis of secondary sources, analysis of monitoring data and statistical data, analysis of publicly available information, surveys, semi-structured interviews, cost-benefit analysis, meta-analysis, expert evaluation.
The evaluation report is available
here.