The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) Georgia National Innovation Ecosystem (GENIE) Project (P152441) EUROPE AND CENTRAL ASIA | Georgia | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 6 | ARCHIVED on 04-Jun-2019 | ISR35074 | Implementing Agencies: Ministry of Economy and Sustainable Development, Georgia's Innovation and Technology Agency, Ministry of Finance, Shota Rustaveli National Science Foundation Key Dates Key Project Dates Bank Approval Date: 18-Mar-2016 Effectiveness Date: 21-Jul-2016 Planned Mid Term Review Date: 26-Oct-2018 Actual Mid-Term Review Date: 26-Oct-2018 Original Closing Date: 30-Apr-2021 Revised Closing Date: 30-Apr-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDO is to increase innovative activities of firms and individuals in the Borrower's territory and their participation in the digital economy. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Innovation Infrastructure:(Cost $3.00 M) Innovation Services:(Cost $5.00 M) Innovation Financing:(Cost $11.90 M) Project Implementation Support:(Cost $3.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Unsatisfactory Unsatisfactory Overall Implementation Progress (IP) Unsatisfactory Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Project has continued to experience delays in implementation, however, implementation pace has improved since the details of the restructuring have been agreed. The restructuring involves the reduction in some components and reallocation of funds across components. The restructuring was completed in March 2019. A number of achievements have been made in this reporting period: Component 1 (Innovation Infrastructure):  Progress has been made in the setting up of innovation hubs and centers—with Rukhi, Telavi, and Akhmeta locations now operational. The agreed restructuring reduces the overall number of hubs and centers to seven (7) in total, from the originally planned 58. This is due to the fact that demand for the innovation hubs and centers has been very limited in most (especially remote) locations, and, according to 6/4/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) latest analysis by Georgia’s Innovation and Technology Agency (GITA), it may not be possible to identify spaces suitable to host the planned number of innovation hubs and centers financed under this Component.  GITA has completed the awareness raising training activities for the Broadband for Development (BfD) pilot, covering 50 sessions in 37 municipalities from 6 different regions, and attracting 986 participants. Work has now begun to roll out the pilot program. Based on turnout and feedback from initial training, interest in Broadband for Development activities is different than originally foreseen; specifically, participants expressed interest in training and technical assistance, as opposed to vouchers for internet connections. GITA is now considering how to best incorporate this feedback into the BfD program. Component 2 (Innovation Services):  The focus of this component is on increasing awareness and capacity of firms and individuals, in topics related to innovation, entrepreneurship, and digital skills; however, no concrete activities had been implemented under this Component by the Project Mid-Term Review in October 2018. During this reporting period, preparations have been initiated for a pre-acceleration program to be implemented with universities, as well as an international acceleration program to be hosted in Georgia. In addition, assessment of the innovation potential and needs of 50+ firms in Georgia’s regions has been completed. The analysis shows a strong demand for tailored training and capacity building of firms. In line with this, the focus of the component following the restructuring is on startup acceleration (financing, coupled with training and mentoring for early stage firms) and on digital skills such as programming, network management, online freelancing, project management, etc. Component 3 (Innovation Financing):  Progress has been made in the implementation of the Matching Grants (MGs), under Component 3 (Innovation Financing) with the successful completion of the first two rounds of funding under the startup grants program. In the first call, of 118 applications received, 18 companies were awarded grants of GEL 100,000 (approximately US $40,000) each, on May 25, 2018. In the second call, of 135 applications received, 20 companies were awarded grants of GEL 100,000 each, on March 1, 2019. The third call is under preparation.  Progress has also been made in the preparation of the innovation matching grants, where growth-stage companies will be able to apply for grants up to GEL 650,000.  Following agreement between the World Bank, the Government, and GITA, on the project restructuring, this component will also include Applied Research Grants for young scientists. This will be a $3,000,000 activity, implemented by the Shota Rustaveli National Science Foundation. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Moderate Substantial Substantial Environment and Social Low Low Low Stakeholders Low Low Low Other -- Low Low Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes 6/4/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) Increase innovative activities of firms IN00690341 ►New/improved products/services introduced to existing or new markets by Project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 15.00 70.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 Increase innovative activities of individuals IN00690342 ►Startups launched by project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 37.00 100.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 Increase firms' and individuals' participation in the digital economy IN00690343 ►Access to Internet Services (number of beneficiaries subscribed) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 79.00 6,500.00 Date 31-Dec-2014 -- 17-Jan-2019 30-Apr-2021 IN00690348 ►Beneficiary MSMEs selling via e-commerce platforms (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 215.00 300.00 Date 31-Dec-2015 -- 04-Dec-2018 30-Apr-2021 Intermediate Results Indicators by Components Innovation Infrastructure IN00690300 ►RIHs established, equipped, and operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 2.00 2.00 6/4/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) Date 01-Jul-2015 -- 14-May-2019 30-Apr-2021 IN00690347 ►CICs established, equipped, and operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 3.00 5.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 IN00690350 ►Visitors to CICs and RIHs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 4,000.00 20,000.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 IN00690355 Female visitors to CICs and RIHs (percentage of total) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 20.00 22.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 Innovation Services IN00690344 ►Innovation competitions and exhibitions supported by the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 IN00690351 ►Individuals completing structured training modules and programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 1,280.00 3,000.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 IN00690356 Females completing structured training modules and programs (percent of total) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 21.00 21.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 IN00690353 ►Beneficiaries of coaching, mentoring, or technical consulting (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/4/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) Value 0.00 -- 240.00 250.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 Innovation Financing IN00690345 ►Private financing catalyzed through matching grant programs (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 150,000.00 1,500,000.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 IN00690349 ►Enterprises and start-ups financed through matching grants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 37.00 100.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 Project Implementation Support IN00690346 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 6,500.00 30,000.00 Date 31-Dec-2015 -- 14-May-2019 30-Apr-2021 IN00690354 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 22.00 22.00 IN00690352 ►Citizen engagement: user feedback collected from project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 2,087.00 1,000.00 Date 01-Jul-2015 -- 14-May-2019 30-Apr-2021 Since the last reporting period, 1458 beneficiaries have provided feedback on training and services provided through the Community Innovation Centers and Regional Innovation Hubs, through written surveys, telephone interviews, and individual and group interviews. Approximately 85% of the feedback has been positive, and approximately 10% neutral, with the remaining 5% being negative. The questions Comments: used covered user satisfactions with and usefulness of services, trainings, and trainers provided, as well as intent for future use of similar services. In addition, 618 beneficiaries provided feedback on the Broadband for Development pilot program, through interviews and a survey. Positive feedback was received from 91% of respondents, while 3% and 6/4/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) 1% of respondents provided neutral and negative feedback respectively. Questions focused on satisfaction with training and vouchers provided through the program. Finally, feedback has been collected for the mentorship program conducted for the first round of the Matching Grants Program. Out of the 17 startups financed, 11 startups filled in the questionnaire while other 6 did not respond (despite multiple reminders). The resulting qualitative data clearly shows positive feedback from most of the startups on most of the questions, which focused on the ease of working with mentors, relevance of mentor advice, clarity and structure of the mentoring process, and frequency of meetings with mentors. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P152441 IBRD-85950 Effective USD 40.00 40.00 0.00 5.20 34.80 13% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152441 IBRD-85950 Effective 18-Mar-2016 28-Mar-2016 21-Jul-2016 30-Apr-2021 30-Apr-2021 Cumulative Disbursements 6/4/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) Restructuring History Level 2 Approved on 04-Apr-2019 Related Project(s) There are no related projects. 6/4/2019 Page 7 of 7