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The purpose of this project-resolution is to create a legal framework which establishes the National Agency of Research and Technology (AKKT), as a public institution with the status of juridical subject, depending on the Council of Ministers. The creation of AKKT is framed within the research and technological development reforms undertaken by the government. This reform is one of governments priorities and its main aim is to build a modern system of science, to strengthen the research and technological development and their cooperation with higher education. In the following section, will be laid some arguments upon the necessity of establishing AKKT, as well as the experiences of other countries in the field of policy, promotion and management of research and development (R&D) and some explanations on the mission, duties and organization of AKKT. 1. The necessity of Creating the Agency The need to create the institution is linked with the following arguments: a) Albania is rapidly increased investment in science and technology and this requires a faster, more efficient and more professional management of funds. Until 2005, Albania was the European country with largest backwardness in the field of investment for the future, when it comes to investing for innovation, research and technology development. In the latter, new technologies, especially IT, biotechnology, renewable energy, bio-energy, nanotechnology, etc, are part of daily agenda (EU VII Framework Program for Research and Development). In our case the investment on real Albanian sciences is a priority. Experience has shown that countries with priority investment on research and innovation have the highest rates of economic and social development. Any delay in promotion and investment in this field becomes threatening and prohibitive for the overall development, economic and social development of the country. b) Albania can benefit more EU funding programs, particularly by FP7, bi-and multilateral cooperation. Research and technology development require large and fast investments, which considering their volume, can not be covered by the government budget only. A very important founding source for some priority areas, are EU programs and 1

projects. The lack of functional structures and efficient sectors has become so important that we have insufficient access to many EU programs that offer varies opportunities and financial and institutional support. c) Research, development, technology and innovation belongs not only to MASH, but also to many other ministries as Min. Economy, Min. Agriculture, Min. Public Works, Min. Environment, Min. Health and Min. Tourism. So we are dealing with an inter-ministerial challenging, which requires the coordination of an inter-structure under the direct supervision of Prime Minister. In this research survey, technology and innovation should be issues for which the Prime Minister is always well informed. d) MES can not afford research and development management, because on the one hand, it has no institutional coordination access for the other ministries and on the other hand, it will have to face a great rating in managing daily work. MASH is up to science-related policy. The 10 years experience has proved the MASHs inability to cope with the management of research. The significant growth of sciences fund in the past 3 years was associated with empathic non execution of projects, which confirms the inability of the MASH structures to efficiently administrate this fund. For the year 2009 the Fund for Science reaches about 6 million USD, nearly 2 times higher compared to the one of this year. This unfulfilled fund has a high cost for the countrys development of research and innovation. e) It should be increasing the private sectors participation in financial support of research and development, which is inexistent until now. This is not only due to the fact that the Albanian business has been in the first steps of its development, but also because until now, it did not exist any institutional structure where the business can participate in the decision and feel the obligation of contribution to research, development and technology. We should find effective ways to increase private sector contribution to research and technology. f) It should be increased the science communitys participation in the decisionmaking of R&D funds; The practice of all countries shows that in research, development and technology promotion, the major part of decision-making advice, assessment and monitoring comes directly from the representative of scientist community. This practice has been quite unusual so far for Albania and many decisions are often taken by administrators. Only the structure of the Agency, positively the participation on 2

the majority of the Agency leading Council, enables a real participation of the academic community. g) A real space must support the funding / financing of Albanian scientists who have ideas. A current problem is that the heads of faculties and universities or research centers do not create any real space for scientist to present scientific ideas and concepts, but in many cases they are an obstacle for them. The Agency, having as main principle the support of any scientific project evaluated by independent experts for its scientific values, makes it possible for every Albanian who presents an idea with scientific value, to realize its legitimate right to try / investigate her/his idea with full freedom to academic research that is protected by the Constitution and the legal framework.

2. Models of policymaking structures for research, development and technology In many countries, the research, development and technology policymaking is concentrated in one ministry or a similar structure similarly to a state committee. Such a practice is implemented in our country for the first mandate 1992 / 96 as the Science Committee and then only for a year 1996/1997, as Minister of Higher Education and Scientific Research. This is found not only in big sized countries but also in relatively small countries and a greater priority is given to research, development and technology as a true locomotive of developing a country. But there are some other countries with the policy distributed in several ministries while their coordination is carried out directly under the Prime Minister direction. This is the model we are currently following. The research, development and technology policies are drawn by several ministries, such as MASH, METE, MBUK, MPWTT, MMPAU, MH, MTKRS and finalized by the Council of Ministers in the form of decisions and laws. Currently there is a lack of a coordinating structure for the Prime Minister or the Council of Ministers. Consequently the effects are still segmented. Usually, the role of the coordinating structure is executed by policies committees, directed by the Prime Minister, where some ministers and experts from the academic community, are part of it. The establishment of the Higher Education and Council of Science was a right step in the right direction and it may support in the proper way the policy-making in the field of higher education and science. But with its final shape as an advisory body for higher education and science, it can not play an inter-ministerial coordinating role and can not take decisions in research, development and technology.

3. Models of management structures and management research, development and technology.

Foundations are the management and administrative structure of research, development and technology almost in all countries and in very few cases the National Agencies execute this role. Foundations are generally models of independent agencies which depend on the executive. They implement the policies of developing science and technology and therefore, manage the budget (as grant) destined for research, technological development. In addition to this grant, foundations absorb funds from other sources, such as international programs (in this case FP7 has a special importance) and the private sector. In the project there is proposed the Agency mode, as an autonomous public agency, depending on the Council of Ministers. The agency manages the state budget funds, international programs and the private sector funds that are destined for research, development and technology.

Mission of the Agency The mission of the Agency is the promotion of scientific research and technological development (hereinafter: research and development -R&D) in the country, the implementation of government policies and R&D strategy, as well as the nationwide activities coordination.

Duties of the Agency In order to realize the mission defined in Article 2, the Agency performs the following main tasks: a) Promotes the development of R&D; b) Coordinates and monitors the R&D activities in the country; c) Offers technical support for all institutions in the investment field and R&D; d) Promotes the establishment of R&D structures in all levels e) Promotes cooperation with the private sector in field of R&D; f) Promotes, supports technically, coordinates and monitors the bi-and multilateral cooperation with the EU, specific countries and foreign organizations in the field of R&D; g) Cooperates with ministries and other institutions to prepare the strategy of R&D; h) To cooperate with executive and legislative institutions as well as other institutions to improve and complete the necessary legal framework and legislation for the R&D; i) Maintains the R&D in the main areas of the Albanian economy and society; j) Implement the governmental policy to support with priority the more qualified scientists and research groups on successful teaching in R&ZH; k) Implements the governmental policy on encouraging the participation of students and young scientists in the R&D; l) Implements policies for the brain gain and the increase of Albanian intellectual Diaspora engagement, in education, R&D and comprehensive development of the country; m) Develop and constantly enriches the database, analysis and documentation system of R&D; 4

The participation of financial bodies in decision-making is realized through their representatives on the Steering Board of the Agency, which is the decision-making Agency. The board consists of: - 4 representatives of the academic scientific community; - 4 representatives of the executive; - The Chairman of the Chamber of Commerce and Industry; The main functions of the Board are as follows: a) Defines the overall objectives of the activities of the Agency; b) Proposes the budget to the nomenclative body and ratifies the revenues of the Agency; c) Approves the allocation of funds for various fields of science, programs and cooperation agreements for R&D; d) Assesses the activities of the Agency; e) Approves the report of the activities of the Agency that should be send to the Council of Ministers; f) Proposes to the Prime Minister the appointment and dismissal of the Director of the Agency; g) Selects the directors of departments of the Agency; h) Adopts the committees of the fields of science in accordance to the proposals provided in paragraph 8, 9, 10 and 11 of this decision. The everyday leading of the Agency, will be realized by Executive Director, who is proposed by the Agency Board and appointed by the Prime Minister. The Director is supported by the Administration of the Agency, that consisting of 15 well-qualified officers who at least hold an MA degree as well as excellent knowledge of English and another Western language. The director prepares an annual report, which after being approved by the Board of the Agency, is sent to the Council of Ministers. The Agency has separate budget. All the legal acts or legislation, are proposed to the Prime Minister or Deputy Prime Minister. The Agency may be established its structure within a year and start its full operation in early 2009. This will be a very important political signal that the government gives for the realization of political objectives in research, development and technology.