RAMPING UP ICT-DRIVEN INNOVATION The budget allocation for ICT faces competition within government, placing an onus on departments and entities to make the most efficient use of both national and EU funds. Participation in EU-funded projects by government bodies may need increased resource and legal governance support. Government needs to consider innovative means to procure ICT services, explore the feasibility of private funding and public-private partnerships, and consider the prospect of re-using and sharing with other countries. In the past, R&I strategies for ICT had been identified as a priority area. In the National Research & Innovation Strategy 2020, ICT is now singled out as an enabling technology for all sectors because of its potential to innovate industries. Since Malta’s size cannot sustain the entire R&D life cycle, efforts should be directed to applied research that is closer to the market16 and in existing areas of strength that could enhance Malta’s profile as a centre of ICT excellence. Many companies in Malta associate R&D to the closed innovation model of larger companies and multinationals. In comparison, open innovation approaches are more collaborative and leverage complementarities, and are, therefore, more adaptive to the needs of small businesses. Combining industrial innovation with educational policies and focusing on areas of strength (smart specialisation) increases the chances of Malta and its industrial base (both ICT and non-ICT) gaining a competitive advantage through differentiation. MAXIMISING OPPORTUNITIES Malta’s ICT priorities are guided by government strategic priorities and the Europe 2020 Strategy flagship initiatives. More specifically these tie in with the Digital Agenda for Europe and the Innovation Union. Malta already has strong regulatory authorities and agencies including the LGA, the MCA, the Government’s IT arm, MITA and various other successful endeavours such as the eSkills Malta Foundation, upon which it can successfully build. The expectations of what ICT can deliver, are higher than ever and are likely to keep on growing. The main elements are in place for the industry to prosper. The challenges now are to prioritise and implement the missing elements. Malta’s ICT industry must emerge from its plateau state and move quickly to exploit opportunities. It needs to build on its strengths, minimise its weaknesses and aim for sustained growth. The contribution of ICT towards energy efficiency in Malta is still marginally low. ICT offers many opportunities to offset the costs of energy through green ICT measures, such as, energy efficient equipment, virtualised environments, grid computing, cloud computing, home automation systems and advanced virtual services. 16. Source: MCST 2011. National Digital Strategy 2014 – 2020 19