Ministry of innovation and entrepreneurship, millions of questions

The new government, led by Prime Minister Ramush Haradinaj, came to power with major claims, especially saying they would stabilise the country economically. But signs of the country's economic revival remain dim.

In one of his first visits realised in the country's prime minister's quality, he had pledged a support for Trepca company, demanding that first be rushed to form the board, but months have passed by this visit, and there is nothing new about its formation.

For the former economic giant, a law in the Kosovo Assembly has recently been adopted, but it has no weight without forming the board. To worse, production has dropped by 30%, according to the latest data.

But at least “on paper”, the heavy industry has been the only government priority, has been made attempts to build new capacities to expand the spectrum of economic development. As known, a new minister, she's Intervention and Innovation, is founded to exploit knowledge, capabilities, skills and resources, as the head of this ministry Besim Beqaj stated: “aimed at maximized entrepreneurial activity”. But the ministry in question, still, there are no websites.

For this Halil Matosh, chief of the Kosovo Government Information Office, for Journal Observer assured that “The Ministry of Innovation is functional but in the construction of its capacities as well as the official website. ”

While the website is just a surface problem, some of the connoisseurs in this area, the biggest problem lies with targets, respectively, its competencies. Its foundation is simply a cosmetic some of them say.

It is founded to create a perception in public opinion that the new government is innovative, is European, understands from these areas and so on. But the point is that it doesn't even have an institutional governing programme. In fact, what for Minister Beqaj constitutes the main objective of the ministry -- sʹting only as an excuse attempt, in the face of public pressure in the establishment of an additional ministry...” has said, among other things, the connoisseur of this field Ahmet Jetullah.

It has been stressed that the Ministry of Innovation and Undertaking, the main objectives will have these:

1. Promoting innovation and information technology in the service of growth and economic development;
2. Development entrepreneurship through training/consultancy programmes;
3. Consolidating the IPT fund for support of economic development sectors;
4. Establishing funds for institutional support of women and youth in entrepreneurship;
5. Establishing institutional co-ordination mechanisms between science, the private sector and policymaking, etc.

But the Ministry of Trade and Industry has been founded for roughly the same objectives, added another objective, as is the goal of creating and developing economic areas, technological parks, and so on. Then the Ministry of Education, Science and Technology, respectively, the Department of Science and Technology, which has an innovation Strategy (Unfortunately, August), drafted the 2013 innovation strategy, which, even after 4 years, has never been approved and implemented, if supported by the OECD. Then the Ministry of Economic Development, the Department for European Integration, Co-ordination of Policy and Sector Development, including that of Telekomunication (TIK), then the sectors from the Ministry of Social Management, the Ministry of Culture, Youth and Sports, as well as the Kosovo Employment Agency that has rough objectives, such as support for start-up and youth employment, can create a mix of competencies, respectively, inculcating them.

Contacted by Us, Investment Agency Director and Support Enterprises in Kosovo (KIESA) Besian Mustafa, has not answered if the powers will be confused with the ministry in question.

For the newspaper Oobserver, he has simply said that: “This is a question of the government's political level”, in other words, it is not up to him to answer.

Save current patch for indentation Vjollca Chavollin, Kosovo Executive Director at the STIKK (Kosovo Information Technology and Communication Association), the establishment of the ministry, has been a long-standing need.

The foundation of this ministry has been a great need. At first glance it may look like a mix of competencies with existing ministries or agencies, but with good co-operation, more innovation and entrepreneurship in Kosovo can be strengthened. The National Council for Innovation and Intervention, part of which are the ministries of the line, as well as economic offices and universities. With good coordination, I believe we will have tangible results in the future” She expressed herself.

But unlike Colak, jetouth considers that the path the government has followed does not ensure sector development.

According to him: “Kosovo would have to exchange experiences, especially with the states that have built the relate. With better cooperation, much could be learned and greatly benefited. For example, Slovenia caught up in various kinds of agencies, including public agencies for innovations and technology, for entrepreneurship and investment, regional agencies, incubators and technological parks, economic oda with responsible membership, etc., which have not been effective in performance and have not made any contributions to development. As a result, many of these have been dissolved, while the required criteria of membership of businesses in the economic age have caused the weakening and depletion of odas. Finally (from 2013), the agency called SPIRIT Slovvenia has been founded, which is a public agency for entrepreneurship, internationalisation, foreign investment in technology, and which in reality is a single government platform. It does the orientation of Slovenia's development programmes, with the aim of achieving a technological innovation, export orientation for foreign investors to attractive destinations” ends it.

What strategy will this government pursue for reorganizing this sector? That still remains unclear. Of the total budget envisioned for next year, of 10m euros, 9.5m will be used to support innovations and private companies on three main pillars: education through co-operation with educational institutions, physical and legal infrastructure, as well as direct subsidies. So at least he promoted Minister Beqaj at a meeting with World Bank representatives.

According to him, for 2018 this ministry will have about 10m euros in budgets. But, meanwhile, in the draft budget law, on the capital spending line, a total of 7,1550,000 euros has been placed, as well as the amount for capital expenditures of 2,0000 euros. The front lines seem to give such a feature to the ministry, as a mechanism for managing a 9m-euro grant value.

Professor and legalist at the University of Winchester Seb Bytyqi suggests several ways, which if followed, would affect the country's economic stabilisation.

According to him: “The best way is to implement industrial policies and investment in industry/sectors that require more labour support. Various assistance for production and export sectors to increase employment, that is, they need labour. This should be co-ordinated with the preparation and skills of the labour wing to meet the needs of the labour market. So there are some key aspects that focus on promoting industrial policies with the focus on producing and exporting”.

The IPT has marked a positive rise, even utility export signs show that this sector (communication, intelligence and telecommunication services), from April 2016 to March 2017, contributed 48.6m euros. This is listed as one of the most profitable topsectors. TI (Since 2013), by the government, has been officially declared a top priority sector for the country's economy.

Currently, according to the Kosovo Statistics Agency (ASK), Kosovo's Workers Power Survey, respectively, for the second quarter of 2017, the unemployment rate remains above 30%.

“According to results released from this publication, two-thirds of the population in Kosovo are a working age population. Work age populations include 15-64 years of age.

Within the working age population, the rate of participation in the workforce is 43.0%. The employment rate at the Workers Power Survey (AFP), for the second quarter (TM2) 2017 is 29.9%. The highest employment rate is in men (46.8%), while the employment rate in women is 12.7%” is said among other things in the survey report based on poll results. But disturbing is the inactive power, which according to the survey remains extremely high 57.0%.

So, the current government, as well as the preliminary ones, would be able to use this human resource in a way that is better if they developed some of the sectors, like TI. In recent years, the Kosovo market for companies dealing with customer support through advanced technology, innovation, leadership and strategic partnerships seems to be becoming increasingly attractive. Such companies, have millions of circulation within a calendar year, while the current government is far behind in identifying these priorities/markets, still remains a question.