Concept For Establishment of Center of Excellence On Information Society

Kosovo Economic Development through Quality and Networking
project implemented by
in partnership with and
Concept for establishment of Center of

Excellence on Information Society
October 2012, Sofia
An EU funded project managed by the

European Union Office in Kosovo
EU supporting Regional Economic Development in Kosovo
Table of Contents
Executive Summary .............................................................................................................. 3
Needs .................................................................................................................................... 5
Stakeholders ......................................................................................................................... 8
Objectives ............................................................................................................................. 8
Activities .............................................................................................................................. 9
Phase I Initiation and establishment .................................................................................. 9
Phase II Create capacity and start operations ................................................................... 10
Phase III Center of Excellence Development ................................................................... 13
Important factors for the center sustainability ..................................................................... 15
Annex I Overall environment for creation of Centers of Excellence in Information Society in
the EU................................................................................................................................. 17
Annex II Policies ................................................................................................................ 21
Annex III Local context and environment for setting up a CoE ........................................... 24
Annex IV Examples of good practices and cases of CoEs in IT ........................................... 26
The EIT ICT Labs ........................................................................................................... 28
The CIST ........................................................................................................................ 29
An entire country as a CoE - Malta.................................................................................. 30
Annex V EU programs and projects supporting the establishment of CoEs in IS ................. 34

Executive Summary
Disclaimer:
The content of this document does not reflect the official opinion of the European Union.
Responsibility for the information and views expressed in therein lies entirely with the
authors and implementing organizations.
This document was prepared within the framework of the “Kosovo Economic Development
through Quality and Networking” Project and is aimed at outlining a concept for
establishment of Center of Excellence on Information Society in Region Center, Kosovo. The
Project is being co-funded by the European Union Office in Kosovo (EU Support for
Regional Economic Development).
The concept presents strategic objectives and roadmap to establishment of an Excellence
Center that will support Information Society services delivery on local level.
One can consider the current document as a final and more practical document that suggest
implementation mechanism of the needs and recommendations defined in the two
fundamental documents produced by the project and coordinated with the relevant
stakeholders from Kosovo government, municipalities and private sector:
 “Analysis of ICT Sector in Economic Region Center, Kosovo”, January 20, 2012
 “Strategy Concept for Information Society Development in Economic Region Center,
Kosovo”, July 2012
The current concept is based on the information analyzed and conclusions in the previous
analysis in order to suggest key elements of a strategic plan for establishment of excellence
center for Information Society development. In this regard the Excellence Center, when
established, could be the main tool for initiation, development, implementation and
monitoring of Strategies for Information Society Development on municipal level.
In addition to the above mentioned strategy and analysis the project team conducted
comprehensive research of the EU experience and best practices in this field that was taken
into account while elaborating the current document. The conclusions of the research are
summarized and presented in a separate document.
The Concept for establishment of Center of Excellence on Information Society is structured
in the following sections.

 Needs
 Objectives
 Stakeholders
 Activities (initiation, establishment and operation)
 Success factors
The objectives of the Excellence Center are balanced within four perspectives including:
 Electronic services;
 Information society implementation processes;
 Knowledge dissemination and fund rising.
These perspectives, when implemented, could ensure the sustainable development of the
center and effective achievement of the objectives.
The main purpose of the concept is to provide initial information and a roadmap for
establishment of such an excellence center in three phases:
 Phase I Initiation and Establishment
 Phase II Create Capacity and Start Operations
 Phase III Center of Excellence Development
The document was developed on conceptual level as a framework that on, one hand side, will
guide the stakeholders through the process establishment and, on another hand side, will
provide enough flexibility for definition and aligning specific objective for the for the
founders.

Needs
The “IT Sector Analysis” and the related interviews and public discussions performed in the
framework of the “Kosovo Economic Development through Quality and Networking” have
identified the following needs for information society development in Kosovo:
 Establishment of an effective ICT coordination/governance mechanism on strategic
level that will serve as focal point for the ICT sector development in Kosovo
Currently different aspects of the ICT in Kosovo such as ICT industry, e-services, e-
government, e-health and others are managed by different bodies. There is no effective
coordination mechanism that could ensure balanced development and focal points for
communication with businesses and international organizations.
 Prioritization of objectives in all ICT related strategies
A number of good strategies and relevantly consistent normative framework for the ICT
sector development in Kosovo have been adopted on central level. The strategic
documents establish a large number of objectives and priorities for ICT development in
Kosovo that are technically very difficult to be implemented simultaneously. Not all high
level strategies are supported by implementation plans, ensured budgets and strong
implementation mechanisms or bodies. All these factors lead to lack of focus and
difficulties in the implementation of the strategies.
 Using of international benchmarking indicators to compare the ICT sector
development of Kosovo and measure the progress of the national priorities
Currently Kosovo ICT is not visible in the international surveys and studies. The
measures for success of the ICT strategies implementation, where available, are very
technical and are rarely aligned with EU and international benchmarking models.
Introducing internationally aligned measures and indicators could decrease the
uncertainty, increase investments in the ICT and facilitate the international standing of
the country.
 Introducing international ICT standards in the Kosovo ICT sector governance
rather than develop national standards and procedures.
Kosovo’s government has an opportunity to introduce the international standards and
models for ICT governance such as ISO27000-series (Information Security Management
System Family of Standards), Capability Maturity Model Integration (CMMI), Resilience
Management Model (RMM), Information Technology Infrastructure Library (ITIL) and

others. Adoption of the international standards could result not only in mature IT
processes in the public organizations, but also it could push Kosovo companies to align
their operations with the internationally recognized good practices and improve their
competitiveness.
The international experience has shown that such programs are more effective when the
government and the donor community provide parallel support for standard
implementation both in private and public sectors.
 Using the already existing ICT infrastructure to improve traditional public services
and deliver e-services to citizens and businesses
In recent years Kosovo has done significant investments in IT infrastructure but the
effects on traditional public services and e-services are still not adequately visible for
businesses and citizens. The focus on e-services could produce three major types of
benefits, as follows:
- E-services delivered through various channels have strong potential to improve the
administrative environment; increase the overall competitiveness of the country and
the satisfaction of citizens with public administration.
- Тhe focus on e-Services will increase the demand for complex ICT solutions in
Kosovo. Local ICT business is aware of local environment and is able to develop
custom solutions and will most probably be highly competitive for the
implementation of such projects and receive significant business benefits.
- Тhe already developed e-Services could facilitate significant increase of the overall
ICT demand of Kosovo from the business and individual clients that will align their
processes with e-Service environment.
 Strengthening Information Society implementation capacity on municipal level.
The Strategy Concept for Information Society Development in Region Center concluded
that central government plays a major role in the ICT development, while the role of the
municipalities had not been clearly defined. There was a lack of financial resources and
knowledge base, which are major constrains for the information society development on
municipal level.
Regions and municipalities depend almost completely on the government in the critical
fields of their ICT development such as management expertise, budgets, infrastructure
and others. On the one hand, all of the municipalities in Region Centre reported a lack of
financial resources and insufficient knowledge as two major barriers for the development
and the implementation of information society services. On the other hand, only a few

have started development or have already developed plans related to the ICT
implementation. Even when the ICT plans were in process of development they were
more technology oriented rather that service oriented.
 Promoting the use the available eGovernment services by citizens and businesses
Despite the positive development of the eGovenment services in the last year the people
and businesses on local level are rarely using them. Currently, the low level of usage of
the available eGovernmet services can be considered as the main barrier for Information
society development. There is a need for promotion and educating the local societies
what are the benefits of the e-services and how they can be used.
 Providing expert support to the municipalities for implementation of Information
Society services
During the public discussion about the Strategy Concept for Information Society
Development in Region Center the major stakeholders agreed that the municipalities
would need expert and methodological support in order to be able to initiate, plan,
implement, monitor and control Information Society strategies.
A center of excellence in Information society development on municipal level could provide
the needed support and could effectively cover the needs defined above on municipal level.
The center activities are designed in order to address the following specific needs:
 Development, support and sustain Information Society implementation capacity
on municipal level – both managerial and technical
 Building awareness among citizens and businesses about the Information society
services benefits.
 Prioritization of services of information society on municipal level in order to
contribute to the development of local societies.
 Use international benchmarking indicators to evaluate the Information Society
development

Stakeholders
The optimal mixture of stakeholders in such a center includes representatives of:

1. Government institutions related to the Information society management and
implementation – representing the policy makers and service providers on national level
2. Municipality administration - representing the policy makers and service providers on
municipal level
3. Business associations – representing the interest of the business community
4. Regional NGOs – representing the interests of the citizens
5. ICT business associations – representing the local ICT providers.
On one hand-side the direct participation of these organizations on strategy level – e. g. members
of the Excellence Center Steering Committee is very important for the alignment of the strategy
to the objectives and needs of the stakeholders.
On another hand-side on operational level the stakeholders could appoint high level professionals
who will be able to translate the strategy into operational objectives.
Objectives
The overall goal of the Center of Excellence is to support the information society in Kosovo
especially on municipal level in order to achieve balanced and sustainable economic and social
development.
One can distinguish several levels of objectives including:
1. Strategic objectives related to the Information Society services supply to Citizens and
Businesses
a. Increase the quality of life of citizens through promotion of development
and use of eHealth, eLearning, eCulture and eAdministration services for
all citizens in Kosovo.
b. Improve the business environment in Kosovo municipalities
through promotion of effective eGovernment services and eCommerce.
2. Strategic objectives related to Information Society implementation processes

a) Support Information society Strategy definition on local level

b) Support higher effectiveness and efficiency of the municipal
administrations through optimization of administrative processes and
implementation of information and communication technologies.
3. Strategic objectives related to Information Society knowledge dissemination
a) Increase awareness about Information Society benefits
b) Train decision-makers and experts about Information Society
implementation strategies and plans
c) Initiate discussions and know-how transfer
4. Strategic objectives related to providing resources for Information Society
development.
a) Initiation of projects that could be funded through the available
donor funds.
b) Ensuring adequate budgets for Information Society development
on municipal level.
Activities
One can distinguish three phases of the center creation: (I) Initiation and establishment; (II)
Create capacity and start operations and (III) Development. Based on the experience with the
development of similar initiatives in other countries the establishment of the center could be able
to start effective operations (phases I and II completed) in 12 – 18 months.
For each phase the stakeholders should implement specific activities that to guarantee a solid
base and conditions for sustainable development in Phase III. In the reality some activities could
be moved from one phase to another phase in order to meet specific objectives or to complete
certain priorities of the organization.
There are specific activities for each phase as described below:
Phase I Initiation and establishment

The main objectives are related to the definition of the strategy formulation and initial set up of
the center. As soon as the decision for the center establishment is made following activities
should be launched:
I.1. Identify and involve relevant stakeholders

In the Initiation phase the relevant stakeholders should be identified and commitment to the
center should be obtained based on a shared vision of the Information Society development on
municipal level. The objectives of this activity could be achieved through a series of workshops
and direct meetings with potential stakeholders:
I.2. Initiate the center establishment through an open workshop in which all potential
stakeholders are invited. The list of the Potential stakeholders includes but is not limited to:
ministries and agencies responsible for Information society development on national level,
interested municipalities, international donors and projects, industry associations and others.
A concept for the center is presented and discussed at the workshop. The workshop is expected
to result in declared interest of a number of stakeholders to participate in the foundation and
development of such center.
I.3. Formulate center vision and ensure strategic support for the first three years of the
center operation through a series of interviews and direct discussions with the relevant
stakeholders that were interested to participate in the initiative. In this activity the center
initiation team conducts interviews and meetings with the relevant stakeholders in order to
formulate the strategic framework of the center including but not limited to: vision; mission;
strategic objectives and commitments to center support in the first 3 years of its development.
The commitments can include: office space, equipment, permanent employees, on-demand
expert support, funds for information society projects implementation and others. In general the
stakeholders’ commitments should ensure the facilities and “seed” funding of the center for the
first 18-24 months of its existence. As a final result of this activity the initiation team documents
the strategic framework for the center establishment and the commitments of the different
stakeholders. A series of meetings and more than one iterations can be expected in this activity
until all the elements are coordinated with all relevant stakeholders.
I.4. Develop strategic plan in order to translate the strategic framework into structured nd
balanced plan. Within this activity the initiation team develops a strategic plan or alternative
scenarios of strategic plans including budget.
I.5. Establish the Center of Excellence – Relevant stakeholders establish the center and start its
operations. The center is established as non-profit organization in public benefit keeping a good
balance of government, municipal and private sector stakeholders. The center foloows and
further develops the strategy and plan elaborated in the previous activities.
Phase II Create capacity and start operations

A soon as the center is established its priority will to create capacity both in its internal structure
and within the relevant stakeholders in order to be able to fulfill its mission, vision and strategic
objectives. Activities in this phase include:
II.1. Form a Steering Committee and appoint Center Manager and team. Form highly-
regarded international Advisory Committee.
Good project management and monitoring is a key factor of success for the creation of the
Center. The center should be managed on strategic level by a Steering Committee that represents
the interests of all stakeholders involved in the Kosovo ICT sector development. The Steering
committee will nominate a professional to become the center manager that will be responsible
for the operational management of the center.
A Center Advisory Committee will advise the team and will support the communication
strategy to approach the business community, other partners, the donors, and the public. Best
available professionals in the specific fields from Kosovo and abroad will be invited to join the
Advisory Committee.
On a day-to-day basis, the team of the center will be responsible for the implementation of the
center business plan. The relevant stakeholders in the Steering Committee will formulate the
center strategy and they will assist the center management in all aspects of the center’s technical
implementation. The center manager will report to the Steering Committee. The primary function
of the Steering committee will be to make strategic decisions regarding the Center in the best
interests of the Kosovo Information Society development and to ensure that the center adheres to
its fundamental goals as defined in the center mission. This committee is also here to monitor
and assist the executive management of the Center. The Steering Committee could comprise
senior representatives of the center stakeholders.
The Steering Committee will elect the Committee Chairman among its members. The Steering
Committee will provide guidelines to the management team and experts on important
implementation issues, such as:
 Strategic management,
 Selection of contractors,
 Changes to the proposed activities,
 Any other issues arising from progress reports and Advisory Committee meetings.
The Advisory Committee will share experience on the overall development of Information
Society and more specifically on the planning and design of training, coaching and consultancy
programs. The Steering Committee Chairman and the Center Manager will be members of the

Advisory Committee. The other Advisory Committee members will be experts from ICT
community in Kosovo and abroad.
The center team will be responsible for the activities execution, monitoring and reporting. It will
coordinate, oversee, monitor and implement the activities planned in the project according to the
instructions and guidelines received from the Steering Committee. It will report regularly on the
development of the project before the Steering Committee. The center team will be able to
approach and ask for advice any member of the Advisory committee according to his
competence.
At this phase of the project the center team will be trained on all of the aspects of the Information
Society as well on disciplined business management. Execution of this activity will ensure the
necessary human resources for the Information Society Excellence Center development
II.2. Develop center processes, build infrastructure, measurement, monitor and control
activities.
The center team supported by external experts will develop processes and procedures for
strategic and operational management. Since the center sustainability strongly depends on the
ability to initiate and effectively manage projects – good project management practices will be
developed in more details. The centers procedures will cover the following areas:
 Strategy formulation, continuous improvement and monitoring
 HR and employment
 Procurement
 Project implementation
 Finance
The process in the above mentioned areas should guarantee transparency, efficiency and
effectiveness of the center operation. The centers employees will be trained how to apply the
processes and sound monitoring mechanism will be established.
II.3. Identify the Information Society framework and needs and based on them, define
priority interests in services-related training programs and pilot demonstration projects
Macro framework influences every single initiative in Kosovo. In order to ensure
correspondence between the macro and micro level of the Information Society support the center
team will work together with external experts in information society development and law and
will analyze main macroeconomic and ICT trends and their impact on Information Society
development on municipal level. The key barriers for information society development will be
identified and solutions will be proposed.

The center may offer a wide range of services to the municipalities that are unable to get them
otherwise. A key success factor for sustainable development of the initiative is to meet the
specific needs of the targeted municipalities. The needs analysis produced as a result of this
activity will provide key information for the design and business plan of the center.
II.4. Prepare strategic 3-year plan and 1-year operational plan
The strategic framework will be used as a base for development of the center business plan. The
center team will produce detailed business plan for the Excellence Center for the first year of its
operation and long term business plan for three-year period. The plans will be reviewed and
updated on a regular base under the supervision of the Steering Committee.
II.5. Plan awareness campaign. Develop presentation and training materials
The center will plan and conduct an information campaign in order to increase the awareness
about the Information society benefits and to promote its strategic objectives among all relevant
stakeholders and target groups identified in activity II.3. The center team in cooperation with
external consultants will develop specialized training courses related to the information society
service planning, implementation and maintenance.
II.6. Initiate and communicate projects for initial research and information society
promotion in the municipalities
The center will work together with the municipalities and other stakeholders in order to develop
pilot projects that will demonstrate the benefits of the information society services. These first
projects of the center will ensure experience and success stories for the further promotion of the
center services. The projects will not only produce the first benefits for the Information Society
din Kosovo but also will build valuable project management experience in the center staff.
Phase III Center of Excellence Development

At that phase the center is operating on a full scale in order to achieve its vision and strategic
objectives. The activities in this phase will come from the analysis and strategic and operational
planning completed in phase I and phase II. At this concept level one can suggest activities as
follows:
III.1. Promote the Information Society services development

The center will organize Information society awareness campaigns in order to inform and
convince citizens and businesses to use the available Information society services and to demand
them form the different providers. The center will use different information channels such as

awareness and training seminars, Internet, brochures, direct promotion in the municipal service
centers, social networks and others. The awareness campaign is expected to increase the demand
for Information Society services and those to accelerate their development. This activity will
directly address the need for “Building awareness among citizens and businesses about the
Information society services benefits”.
III.2. Continuous analysis of Information Society development framework on municipal

level. The center will develop analysis of the Information society services using international
benchmarking methodologies. The analysis will provide important information about the
completion of the Information Society strategies by the municipalities and the corresponding
benefits for the relevant stakeholders. The analyses will be produced on a regular base and the
main conclusions will be disseminated through all relevant stakeholders. The trends and indictors
included in the analysis will allow precise objective measurement of the Information Society
Progress and Increased awareness among major stakeholders. The data will be used for
prioritization of the information society services and actions. This activity will directly address
the need of “Using international benchmarking indicators to evaluate the Information Society
development” and will provide information for “Prioritization of services of information
society on municipal level in order to contribute to the development of local societies ”.
III.3 Support Information society strategy formulation, planning and implementation in

the Kosovo municipalities. Provide mechanism for evaluation of the organizational
capabilities for Information society implementation.
The center will provide training to the municipalities in the filled of strategy formulation and
project management in order to strengthen the capacity for implementation of information
society initiatives. The already develop concept for Focused trainings on key Information
Society technologies will be planned and conducted. All the trainings will be compliant with the
national strategies and the applicable national legislation. As soon as the necessary knowledge
and skills are transferred to the municipalities the center experts will provide consultations and
coaching based on the real projects implemented on municipal level.
The center will develop an evaluation methodology in order to be able to measure and rank the
organizational capacity for Information Society implementation in the municipalities. The
ranking could be used as a prerequisite for implementation of a large scale Information society
projects.
This activity will directly address the need for “development and sustaining Information
Society implementation capacity on municipal level – both managerial and technical” and

will ensure the necessary knowledge and skills for “Prioritization of services of information
society on municipal level in order to contribute to the development of local societies. ”
III.4 Fund raising for Information society development.
The center will work with national institutions and international donors in order to raise funds for
implementation of Information Society projects. It could be a coordination body that alignes the
efforts of the multiple institutions that currently support the Information Society services in the
municipalities. On one hand side the center will develop methods to measure the benefits and the
return of investments in the ICT, which is very important in order to convince the related
organizations in the effectiveness and benefits of such investments. On other hand side the center
could serve as a monitoring body that optimizes the effectiveness of the relevant projects.
Important factors for the center sustainability

Regarding the model of the center, the following questions should be answered:
Locations:
In view of the existing limitations of financial recourses and specific characteristics of the
Information Society, the future center can be based on distributed locations (semi virtual center)
or significant resources to be allocated in a center located in one office. It would desirable to
establish at least the head office of the center at a visible location in municipality that is
relevantly advanced in providing the services of Information Society, thus passing a positive
message to other municipalities. A possible option could be to locate the center in a municipality
that is willing to contribute with office space, equipment and in-kind expertise. In that case the
commitment of the municipality will be ensured and the expenses for the center establishment
will be minimized.
Choice of technologies:
It is our firm believe that focus of the Center should be to guarantee the independence from the
proprietary IT and software technologies. The technology should provide synergies through co-
operation between various technology providers and the institutions responsible for the
Information society implementation. Moreover the center could be focused in service delivery,
process and project management rather than certain software, communication and hardware
technologies. On can assume that the center can use the technical capacity built in the
eGovernment on national level or outsource the technical aspects to private ICT companies while
the organizational and service capacity should be developed in the center and the municipalities.
Suitable models:

Various models can be discussed with decision makers in Kosovo during the fields work. The
publicly financed model in principle can be explored trough donor-funded projects. It could be
considered to provide greater access to finance but can delay the process. Close monitoring of
the public finance model with regard of the long-term sustainability of management support is
essential. We would like to envisage a center that is based on a public investment model,
combining public finance, donor support and contribution of the private sector, if feasible.
Providing of such a model could be viable for the Kosovo environment and can ensure center’s
sustainability.
Management and Organization:
We considered the management of the Center as one of the most important factors for its
sustainability. It should provide added value services beyond the provision of standard trainings.
The services should ensure support starting form awareness, passing through training and
implementation and ending with project management of complex initiatives. The Center itself
should also operate as a network, thus providing broader access to international expert support,
including that of international excellence center networks.

Annex I Overall environment for creation of Centers of

Excellence in Information Society in the EU
The reasons Europe puts a priority on research, education and innovation are apparent. The
ever increasing competition and the challenges Europe is facing due to the demographic
issues at hand, call for specific counteractions. Europe's economic progress and respectively,
the creation of new jobs in the future, will largely depend on innovation breakthroughs in
services, products, business models, processes, etc. Therefore, it is crucial that Europe is able
to not only retain, but also attract talent. Even though there are isolated success stories across
the EU, on average, when compared to global leaders, Member States are still lagging behind
in terms of innovation-based progress. Furthermore, Europe is faced with growing
competition for talent from new CoEs in developing economies.
The information society carries benefits for everyone, but it has to be ensured that its
democratic nature is protected. It is crucial that it provides universal access to information to
all. In one specific case, providing for openness and transparency of government activities
will result in enhanced efficiency of public administration. Other benefits of the information
society are electronic democracy, superior education and training, amelioration of
employment, progress of market economy, different social and legal advantages, as well as a
significant improvement in research and development. The EU recognizes that knowledge is
a major source of power and wealth, but that it also leads to differences between regions,
countries, societies, companies and people, due to the digital divide it creates.
As an aftermath of the advancements of the US and Japan's information societies, the
European Union adopted a strategy to achieve competitiveness by keeping up with the
developments. The main goal of this action plan is the creation of a knowledge-based
economy, built on strong employment rate, flourishing economy and social cohesion. The
successful creation and progress of a knowledge society is founded on four interdependent
pillars. These are the generation of new knowledge, stemming primarily from research
efforts; its transmission through education and training; its dissemination through various
communication channels including computer technologies and the Internet; and finally, its
practical application to achieve innovation in technologies, processes and services. For the
past twelve years, the EU has pursued several strategies aimed at this direction, among which

the eEurope1, the eEurope+, the i20102, and the most recent one - the Digital Agenda for
Europe3.
The start of this string of initiatives has been concentrated on encouraging the adoption and
use of digital technologies across Europe and making sure that all EU citizens posses the
essential skills to use these technologies. The pivotal objectives in the first action plans
carried out by the EU were:
 Bringing every citizen, home and school, every business and administration, online
and into the digital age;
 Creating a digitally literate Europe, supported by an entrepreneurial culture ready to
finance and develop new ideas;
 Ensuring that the whole process is socially inclusive, builds consumer trust and
strengthens social cohesion.
After the implementation of the first initiatives, the EU set a new and ambitious strategic
goal and an overall strategy: “The Union has today set itself a new strategic goal for the next
decade: to become the most competitive and dynamic knowledge-based economy in the
world capable of sustainable economic growth with more and better jobs and grater social
cohesion.” To achieve its goal of becoming a world leader in ICTs, the EU must double the
funds dedicated to research, attract talent and abolish any obstacles which impede business
growth.
In 2009, the global ICT market's estimated worth was some EUR 2,000 billion and was
growing at a 4% annual rate. In Europe, ICTs accounted for 6% of the gross domestic
product and was generating 12 million jobs. In terms of research, 20% of all private research
and development (R&D) was spent on ICTs 4. Nevertheless, the EU is still falling behind the
global leaders. In comparison, the US is spending twice as much on ICT R&D. Moreover,
Europe is experiencing a shortage of qualified ICT researchers, to some extend due to the
insufficient number of centers of excellence in ICT research within the EU. As a result, the
majority of private research funds and skilled people tend to be allocated to other purposes.
However, Europe excels in a variety of ICT fields, among which telecoms equipment and
services and security technologies. It also is a global leader in applications like telemedicine
and embedded ICTs. In terms of its future, the EU has a lot more to accomplish. It has
1 http://ec.europa.eu/information_society/eeurope/i2010/archive/eeurope/index_en.htm
2 http://ec.europa.eu/information_society/eeurope/i2010/index_en.htm
3 http://ec.europa.eu/information_society/digital-agenda/index_en.htm
4 http://cordis.europa.eu/search/index.cfm?fuseaction=news.document&N_RCN=30575

declared its intentions to become a leader in the development of the future Internet and the
next generation of ICT systems, exploiting the opportunities provided by them. Finally, the
EU must initiate the use of ICTs in health systems, safety and security and energy efficiency.
The new strategy sets out a three-pronged approach to tackling these problems. Firstly,
investments in ICT R&D must be doubled by 2020. Annual spending on ICT R&D under the
Seventh Framework Programme (FP7) is set to rise from EUR 1.1 billion in 2010 to EUR 1.7
billion in 2013, and the Commission invites Member States to match this budget increase in
their national research programmes.
Among other things, the Commission pledges to set up platforms for more intensive
dialogues between investors and ICT innovators. It also states its intention to increase the
involvement of SMEs (small- and medium-sized enterprises) in its own research
programmes.
Member States are also encouraged to make greater use of public procurement as a tool for
promoting innovation in the ICT sector.
Another stream of action outlined in EU strategies calls for greater collaboration between the
EU, Member States, regions, industry and academia. "Europe needs to better coordinate its
policies and concentrate and specialise its resources, not least for the emergence of wo rld-
class poles of ICT excellence in Europe". In other words, the diverse stakeholders involved
in funding and carrying out ICT research need to pool resources and work according to a
common European strategy.
Finally, the strategies indicate that ICT organizations need the right conditions to grow and
develop. In this sense, the public sector can drive innovation by ensuring that ICTs are fully
exploited in all public services.
To support this work, the EU is investigating how best to support pan-European projects
covering the entire cycle from R&D to deployment. These projects will build on lessons
learned through public-private partnerships and the Lead Market Initiative, for example.
They could cover issues such as the use of ICTs in healthcare and ICT solutions for energy
efficiency.
The strategies aim at resulting in creating markets with clearer demands from users,
providing for shorter innovation cycles, faster responses to socioeconomic challenges and
new opportunities for industry in Europe. The expected outcomes are quicker returns on
investments and consequently greater attractiveness of Europe for investors, companies and
researchers.

Furthermore, the Directorate General for the Information Society and Media has also
outlined an agenda on supporting the further development of the information society through
making every European digital by 5:
 achieving a digital single market
 reinforcing Europe's competitiveness by increasing investment in ICT research and
innovation
 promoting the access and use of ICT to the benefit of EU society
Such strategies present very beneficial conditions for the establishment of CoEs in R&D
aiming at developing new technologies, processes or activities, which to support the
information society.
5 http://ec.europa.eu/dgs/information_society/see_more/index_en.htm#mission

Annex II Policies
Since the information society will have an effect on most aspects of EU citizens' lives, the
respective policies range from the regulation of entire industrial sectors to the protection of each
individual's privacy.
Regulation in the Information Society6

The European Information Society sector has grown partly due to European initiatives such
as the creation of the Single Market, the Television without Frontiers Directive, the adoption
of harmonized standards such as GSM, and the liberalization of the telecommunications
sector. Today, there are two main areas of Information Society regulation at European level:
Transmission & Content.
Stimulating the Information Society Sector 7

Rolling out new technologies, products and services is not just a matter of research and
development - policies are required to overcome obstacles ranging from copyright to
security.
1. Research
The Commission is focusing both on the EU’s research and development instruments and
setting priorities for cooperation with the private sector to promote innovation and
technological leadership
2. Infrastructure
Europe's electronic communications regulatory framework stimulates the development of
Europe's infrastructure by promoting competition and growth across the communications
sector.
Additional policies stimulate the development of specific aspects of Europe's digital
infrastructure:
◦ Bridging the Broadband Gap: Europe is ensuring that all regions of Europe
benefit from Broadband Internet access;
6 http://ec.europa.eu/information_society/tl/policy/regulate/index_en.htm
7 http://ec.europa.eu/information_society/tl/policy/stimulate/index_en.htm

3. Content & Services

Stimulating the sector is also a question of stimulating the supply of content and services
which make the information society valuable:
◦ Copyright: while policies exist to stimulate digital content and manage
copyright in a digital age, the correct approach to Digital Rights Management
technologies must also be found if the sector is to grow.
◦ The public sector is the single biggest producer of information in Europe,
producing data on topics as diverse as economics, traffic flow and
demographics. The EU’s Public Sector Information Directive therefore
stimulates the sector by making it easier for companies to access and add value
to this valuable raw material.
◦ Europe's cultural heritage is another potentially massive source of content.
Digitizing it would both stimulate the development of the information society
and make this unique cultural heritage available to more people.
◦ Security: Finally, the information society cannot grow to its full potential
unless users, companies and governments enjoy reliable networks; high levels
of protection for personal data and from malicious attacks.
Exploiting the Benefits of the Information Society 8

A range of policies also aim to ensure that Europe exploits the possibilities offered by the
Information Society, improving both public and private services for all Europeans.
1. Public Services
◦ Government: The eGovernment Action Plan (April 2006), outlined how
"hundreds of billions of Euros could be saved for European taxpayers every
year" by using ICTs to provide 'joined up government' and to improve
democracy, while the Electronic Public Procurement legal framework is
accelerating the use of ICTs to improve efficiencies in public procurement,
which accounts for 16% of the EU economy.
◦ Health: The eHealth Action Plan (April 2004), on the other hand, set out how
ICTs can be used to deliver better quality health care on a pan-European level.
8 http://ec.europa.eu/information_society/tl/policy/exploit/index_en.htm

◦ Education: Similarly, the 2006 eLearning Conference explored how ICTs can
improve the way Europeans are educated and trained throughout their lives.
2. Society & Environment

◦ Inclusion: These ICT-powered services, of course, must be available to
everyone, regardless of their location, wealth or health, which is why the
Ministerial Declaration on eInclusion was adopted. The Commission also
wants to encourage more women to pursue an IT career as a force for change
and a major boost for the ICT sector.
◦ Sustainable Development: Europe's transport, energy and environment
challenges are well known. What is less well known is the extent to which
ICTs can help solve these problems.
3. eBusiness
Applying ICTs to business sharpens the competitive edge and drives innovation. The
opportunities are particularly attractive in Europe, as eBusiness allows many companies -
particularly SMEs - to benefit from the Single Market for the first time.
The eCommerce Directive (2000) is Europe's basic legal framework for electronic commerce
in the Internal Market. VAT Invoicing Rules ensure all Member States' tax authorities
recognize the validity of electronic invoices.
The Online Financial Services policy framework aims to ensure consumers and retail
investors can access on-line financial services from across the EU while being fully
protected, while the Distance Marketing of Financial Services Directive protects consumers
of retail financial services (insurance, banking, etc.) marketed by telephone, Internet or mail.
Finally, the Consumer policy and e-commerce, aims to improve consumer confidence in the
internal market when it comes to eBusiness.
The EU's Industrial Policy promotes the Competitiveness and sustainable development of the
ICT sector, supporting the take-up of information and communication technology and e-
business practices by European enterprises.
The EU's .eu domain has successfully translated the European Single Market online.
The Directive laying down VAT invoicing rules helps firms operating within the Internal
Market by ensuring that they have only to deal with a single, simplified set of rules on
invoicing valid throughout the EU. It also requires Member States to recognize the valid ity
of electronic invoices and allow cross-border electronic invoicing and electronic storage.

Annex III Local context and environment for setting up

a CoE
In the countries from Southeastern Europe, the ICT sectors have gone through considerable
changes in the last twenty years. They have moved from producing hardware, which depends
on capital, to the development of software, which is heavily dependent on knowledge and
expertise. This shift paralleled the privatization of many firms and the emergence of sta rt-
ups. The growth of the ICT sectors in such countries has been driven by a few major factors,
among which the highly qualified workers, the established traditions in ICT and the low
labor costs. However, the companies in the region, which are predominantly small and
medium-sized enterprises (SMEs), are faced with global competition by popular outsourcing
destinations, such as China, Russia and India.
The countries in the region can benefit greatly through refocusing their ICT sector's
competitive advantage. The change should be from cheap labor with adequate technical
knowledge and skills to capacity for cost-effective production of high-quality ICT solutions,
bringing high added value not only for the company but for the economy as well.
In order for this to be achieved, the existing barriers must be abolished. Competitive
advantage for the countries and the region can be created through the establishment of
centers of excellent, which to promote collaboration not only on a local, but on a regional
level too.
The successful establishment and adequate operation of a CoE is expected to result in:
 Improvement of the ICT competitiveness
◦ Better visibility as an ICT competitive area of both the country and the region and
better integration in the international markets
◦ Increased number of organizations with better competitiveness, providing high
value added resulting from the implementation of models and standards for
process improvement.
◦ More people enhancing their professional expertise.
 Effective eGovernment
◦ Creation and utilization of innovative methodologies for eGovernment
development
 Modern Education
◦ Easier access of the Universities to modern knowledge adapted to the regional

specifics
◦ Cooperation between Universities and ICT industry in the development of R&D
projects
 Sustainable Economic Growth
◦ Enhancing the overall economic competitiveness through encouragement of ICT
penetration in all economic sectors
◦ Continuous development of the information society

Annex IV Examples of good practices and cases of CoEs

in IT
The establishment of a Center of Excellence in the context of ICT enables the country and the
region to stand out in the international ICT markets by allowing individuals and companies in
this sphere to reach the world quality and productivity standards. The CoE can be the heart of the
initiation, planning and implementation of joint competitiveness programs aimed at improving
the efficiency and effectiveness of of local and regional organizations. The CoE will also allow
organizations to collaborate with international counterparts and to benefit from the knowledge
transfer.
It is crucial that a CoE is developed on the basis of an objective assessment of companies'
readiness and demands. It will provide the needed initial level of awareness and consultancy
services and will ensure seamless transfer and adoption of knowledge and practical
experience.
In order to improve the country's competitiveness, the CoE will carry out activities
establishing strategic alliances and partnerships with leading organizations from other
countries, with focus on joint research projects, development of methodologies and
processes, as well as pilot implementations of innovative solutions. Such benefits highlight
the value of creating a CoE.
To function effectively, the CoE must ensure, through ongoing activities, that its operation is
strategically aligned with the the needs of the country and the region. Such activities include:
 Earning and maintaining strong commitment from relevant stakeholders
 Carrying out need analysis and surveys
 Outlining partnership plans
 Designing core processes and information infrastructure and systems, which to
support the daily operations of the CoE
The CoEe can be operated as nonprofit organization (foundation, association or any other
form), with minimal initial staffing and physical requirements.
Stakeholders
The establishment and successful functioning of a CoE depends on a consensus in the society
and strong commitment from the key stakeholders from the private sector, the public sector,
and the intermediate organizations. Some examples of key stakeholders are:

Government:
 High level decision makers such as the President or Prime Minister
 Commitment and strategic partnership with the ministries and National Agencies who
plan and execute the ICT policy in the country.
Private sector:
 Big multinational companies such as IBM, Intel, Microsoft and others.
 Key ICT companies in the country.
 Small and medium sized enterprises that form the ICT sector.
Intermediate organizations:
 Leading NGOs and think-thanks that influence the country ICT strategy and policy
 ICT associations
International business support organizations:
 Country programs
 International institutions
 EU programs and initiatives
Educational sector and institutes
 Universities
 High schools and colleges
 Specialized institutes
In order for the CoE to be a successful endeavor, the balance between the interests of the
various stakeholders must be carefully managed. The stakeholders most committed to the
project should be empowered to lead the initiative and steer it to successful outcomes.
Following are a few examples of good practices in the establishment of Centers of

Excellence. The first is a network focused on achieving results on a pan-European level. The
second is a CoE started on a country level, with the ambition to have an effect on a regional
level. Finally, the third example describes a country-wide strategy aiming at turning the
country itself into a Center of Excellence.

The EIT ICT Labs9

EIT ICT Labs' main mission is to turn Europe into a global leader in ICT innovation through:
1. Networking and collaboration:
EIT ICT Labs speeds up ICT innovation by bringing people together from different
countries, disciplines and organizations via mobility programs and co-location centers. By
developing and applying innovation catalysts, EIT ICT Labs leverage on existing regional,
national and EU-level funding instruments to speed up innovation in Europe. Its catalysts
focus on integrating the three elements of the knowledge triangle - Education, Research and
Business.
2. Education: it equips students, researchers, academics and business people with skills
for applying creativity, risk-taking spirit and entrepreneurial capacity. It aims to
empower top talents to lead Europe into a new ICT age.
The EIT has been set up to contribute to sustainable economic growth and competitiveness
by reinforcing the innovation capacity of the Union and its Member States. By fully
integrating the knowledge triangle of higher education, research and innovation, the Institute
will strongly contribute to tackling societal challenges under Horizon 2020 10 and bring about
systemic change in the way European innovation players collaborate. To achieve this goal,
the EIT combines strategic orientation at EIT level with a bottom up approach through its
Knowledge and Innovation Communities (KICs). KICs are highly integrated partnerships,
bringing together excellent universities, research centers, small and large companies and
other innovation actors on a long-term basis around specific societal challenges. Each KIC is
organized around a small number of interconnected co-location centers where partners work
closely together on a daily basis and with an unprecedented degree of common strategic
objectives. Co-location centers build on existing centers of excellence, developing them
further into local innovation ecosystems and linking them together into a broader network of
innovation nodes across Europe. Within the EIT framework , the individual KICs have been
given a large degree of autonomy in defining their internal organization, composition, agenda
and working methods, allowing them to choose the approach that is best suited to meet their
objectives. At strategic level, the EIT organizes the selection process of KICs , coordinates
them with a flexible framework and disseminates their best governance and funding models.
9 http://eit.ictlabs.eu/
10 http://ec.europa.eu/research/horizon2020/index_en.cfm?pg=home&video=none

Through the KICs, the EIT helps to create environments where innovation is more likely to
thrive and to generate breakthroughs in the way higher education, research and business
collaborate. This approach helps addressing the increasingly complex societal challenges set
out in Horizon 2020 in a holistic way, bringing together excellent people from different
sectors, backgrounds and disciplines – who otherwise would not necessarily meet – to jointly
find solutions to the challenge.
The external evaluation of the EIT validated the concept of the EIT and its goals of
contributing to improving the innovation capacity of the EU by involving partner
organizations in integrated innovation, research and education activities at the highest
standards. Since the introduction of the EIT, the importance of EU support for tackling
societal challenges has increased in significance. The rationale for public intervention is
strong given the levels of market failure present and the missing incentives for firms to
engage in innovation addressing societal challenges.
The CIST11
The Center of Information Society Technologies (CIST) is an interdisciplinary research and
training institution of Sofia University (Bulgaria), motivated by the challenge to support the
development, introduction and wide use of Information Society Technologies (IST).
The main objective of the Center is to create and establish fruitful co-operation between the
University - the academic community and the industry - SMEs, NGOs, public administration,
local community, banking and financial institutions for co-ordinating the efforts in spreading
the IST wide implementation and use.
The research activities performed by the CIST staff have a pivotal role in integrating
awareness and understanding of IST, as well as their implementation in the Bulgarian Public
Society. Regional development, local economic development and issues of cohesion are
among the main goals in research, analysis and development of CIST.
Strong efforts have been applied to promoting the global society development using the new
technologies. The research activities of the Center offer different ways of how a large
number of national institutions and organizations can best benefit from new IST.
The Center brings together the theoretical and applied interdisciplinary research in IST and
their applications in the economic, social and natural sciences. CIST provides its capabilities
11 http://www-it.fmi.uni-sofia.bg/cist/

at the service of the economic and social needs of the region and the country, in its efforts to
meet the standards of accession to the European Union.
The main aim of CIST is to become a national and regional Center of Excellence in
Information Society Technologies (IST) for South-East Europe. The Center devotes its
capacity to strengthen the process of IST implementation and to shorten the process of
scientific research development and industry applications.
An entire country as a CoE - Malta12

The government’s vision for 2010 is that Malta will become The Smart Island, one of the top 10
information societies in the world. The application of information and communication
technology will be ubiquitous; the Internet will be a social equalizer and the ICT industry will be
a main pillar of the economy. Malta has undertaken a robust strategy to achieve the ambitious
goals it has set for itself.
1. Egovernment
◦ Next-generation e-legislation
Electronic legislative framework aiming at being sensitive to the opportunities that new ICT
paradigms are presenting to the society and the economy.
◦ Smarter regulation
Strive to make the regulation of telecommunications and electronic services a core strength of
theICT environment.
◦ Improving accessibility in government IT operations
Issue specific policies and guidelines to regulate accessibility in the government’s IT operations.
Enhance the accessibility of all government on-line content and current e-government services,
and ensure that new services are more accessible to disabled persons.
◦ Enacting e-government legislation
Enact an e-government legislative framework to provide a concrete legal footing for
electronic filing of documents, accessibility by disabled persons, security, the regulation of
the use of Smart ID cards, and so on.
◦ Public access to information
12 http://www.epractice.eu/files/media/media1798.pdf

Introduce measures to enable the streamlined digitalization of public sector information.

◦ Re-use of public sector information
Introduce programmes to make it easier and cheaper for content-provider companies to gain
access to public sector information held by government departments and organizations.
2. Society
◦ Building, growing and sharing national ICT resources
There are benefits to being a small country, and the sustainability of a world-class ICT
environment is one of them, because it provides economies of scale.
◦ Accessibility for all
Information and communications technology is to be used as an equalizing instrument to make
easier the integration of the disabled and the disadvantaged.
◦ Opening the way for older people
Raising awareness among the elderly about the usefulness of having and using a computer.
◦ Digital literacy
A national awareness programme to bring in as many people as possible to the fold of digital
literacy, focusing not just on personal computers and the Internet, but also on other forms of
digital communication.
◦ Information and communication technology used as a social leveler
Training in this field can improve job opportunities for the unemployed. Technology can also be
used to address the problem of illiteracy.
◦ Refurbished computer equipment for disadvantaged groups
Public service computers which can connect to the Internet and operate with normal applications
can be refurbished and sold on a token price to people coming from a disadvantaged background.
◦ Popularisation of ICT across all sectors
Reach out to those who still do not see value in technology, and invest more effort in ensuring
that every person is familiar with the benefits of technology in everyday life.
◦ Enhancing trust in ICT
Join forces with regulators, banks and the private sector to accelerate the principle of on-line
self-regulation and to deploy specific measures aimed at instilling more trust in ICT.

◦ Energy conservation IT programmes

Promote the use of energy management software for businesses and consumers aimed at
reducing the electrical consumption of computing equipment.
3. Education
◦ ICT education
Huge investments in all state schools, to ensure that children from every background are
introduced to the use of computers as early in their lives as possible.
◦ ICT programmes in Universities
Expand the vocational, under-graduate and post-graduate programmes in Universities. By
investing in curriculum to widen the range of specializations available to students. The
involvement of the ICT private sector is essential.
◦ Student placement opportunities
Establishment of a Student-placement programme that allows students to gain experience of the
sector while they are studying, on an internship basis.
◦ E-learning as an educational driver
Use ICT to demonstrate that learning is fun. E-learning as a primary vehicle for ICT education
across all sectors and levels.
4. Careers
◦ Awareness campaign about ICT careers
In partnership with the educational authorities, industry and private IT training providers,
develop and run a continuous innovative marketing campaign aimed at attracting young
students to careers in ICT.
◦ Bringing women into ICT
Focused career guidance at secondary school and the development of world-class dedicated
ICT training programmes that are more attractive to women than those being offered today.
Not enough women are entering the world of ICT.
5. Business
◦ Supporting ICT take-up by businesses
Promote and support the development and take-up of ICT by businesses of all sizes and
types, using fiscal incentives and publicly funded e-commerce frameworks.

◦ Customized support to micro-businesses and SMEs

Larger players have the resources to explore e-commerce, but micro-businesses and SMEs
may face a steep learning and organizational curve in finding their path through t he digital
marketplace. Develop programmes geared towards exposing of micro-businesses and SMEs
to the electronic business environment.
◦ A new breed of SMEs
Work towards the creation of knowledge-based SME, particularly in the ICT sector. Help
ICT SMEs to grow from retailers into value-added service providers, focusing on specialized
but high-value services to the commercial community.
◦ Fiscal incentives for ICT investment
Devise innovative fiscal incentive schemes aimed at encouraging investors to set up hig h-
value sustainable ICT operations.
◦ Nurturing ICT entrepreneurial activity
Together with organizations that promote entrepreneurship and represent entrepreneurs,
promote ICT entrepreneurship - to encourage start-ups and investment in new opportunities.
◦ ICT start-up aid programmes
Develop a holistic framework to help ICT start-ups begin with low costs and overheads. This
assistance includes fiscal incentives, legal assistance, escrow services, intellectual property
advice, touch-down business space and training assistance.

Annex V EU programs and projects supporting the

establishment of CoEs in IS
ICT in FP7: Objectives and Overview13
 The objective of ICT research under the EU’s Seventh Framework Programme (FP7)
is to improve the competitiveness of European industry – as well as to enable Europe
to master and shape the future developments of these technologies so that the
demands of its society and economy are met.
 The EU Member States have earmarked a total of € 9.1 billion for funding ICT over
the duration of FP7; making it the largest research theme in the Cooperation
programme, which is itself the largest specific programme of FP7 (with 64% of the
total budget).
 FP7 research activities will strengthen Europe’s scientific and technology base and
ensure its global leadership in ICT, help drive and stimulate product, service and
process innovation and creativity through ICT use and ensure that ICT progress is
rapidly transformed into benefits for Europe’s citizens, businesses, industry and
governments.
The Work Programme for 2012 with about €7 billion is the European Commission's biggest
ever funding package under the EU's Seventh Framework Programme for Research (FP7). It
is expected to create around 174 000 jobs in the short-term and nearly 450 000 jobs and
nearly €80 billion in GDP growth over 15 years.
Grants will promote research to tackle the biggest societal challenges facing Europe and the
world. Universities, research organisations and industry will be among more than 16.000
funding recipients. Special attention will be given to SMEs, including a package close to €1
billion. There will also be a new EU Prize for Women Innovators whose work has been
funded by FP7 or earlier programmes.
The ICT Work Programme 2011-12 under FP7 is divided into eight ‘Challenges’ of strategic
interest to European society, plus research into ‘Future and emerging technologies’ and
support for horizontal actions, such as international cooperation and pre-commercial
procurement14:
 Challenge 1 - Pervasive and Trusted Network and Service Infrastructures
13 http://cordis.europa.eu/fp7/ict/
14 http://cordis.europa.eu/fp7/ict/programme/home_en.html

 Challenge 2 - Cognitive Systems and Robotics

 Challenge 3 - Alternative Paths to Components and Systems
 Challenge 4 - Technologies for Digital Content and Languages
 Challenge 5 - ICT for Health, Aging Well, Inclusion and Governance
 Challenge 6 - ICT for low carbon economy
 Challenge 7 - ICT for the Enterprise and Manufacturing
 Challenge 8 - ICT for Learning and Access to Cultural Resources
 Future and Emerging Technologies (FET)
In addition, ICT research under the following themes is also supported by the EU in FP7.
 e-Infrastructures to aid researchers will also be supported through the Research
Infrastructures Work Programme of the FP7 Capacities programme.
 International Cooperation
 Pre-Commercial Procurement.
While FP7 participants can in principle be based anywhere, there are different categories of
country which may have varying eligibility for different specific and work programmes 15:
 MEMBER STATES - The EU-27;
 ASSOCIATED COUNTRIES – with science and technology cooperation agreements
that involved contributing to the framework programme budget;
 CANDIDATE COUNTRIES – currently recognized as candidates for future
accession;
 THIRD COUNTRIES - the participation of organizations or individuals established in
countries that are not Member States, candidates or associated should also be justified
in terms of the enhanced contribution to the objectives of FP7.
15 http://cordis.europa.eu/fp7/who_en.html


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