Polish Market No.10 / 230/2015 by Polish Market

PU B LISHED SIncE 199 6 No. 10 (231) /2015 :: www.polishmarket.com.pl

EnErgy Defence sector

Investment

InnOVATIOn

MEDICInE ECOnOMy ict energy

Prof. florian ryszka, Pharmaceutical research

and Production Plant „Biochefa”

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Innovation

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Economy

Magdalena Gaj, President of the Office of Electronic Communications (UKE): Universal Internet access and cybersecurity

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Prof. Małgorzata Zaleska, Director of the Institute of Banking, Warsaw School of Economics (SGH), and Vice-President of the Committee on Financial Sciences, Polish Academy of Sciences (PAN): Protection of retail borrowers

Will we get our pensions? The impact of the demographic and economic crises on the pension systems in Europe

Ewa Małyszko, President of the Management Board, PKO BP Bankowy PTE: Employee Pension Schemes as a part of CSR strategies of Polish companies

Towards a Resilient Europe? Prof. Florian Ryszka: Revolution in transplant medicine is coming Prof. Marek Krawczyk, Rector of the Medical University of Warsaw, Head of the University’s Clinic of General, Transplant and Liver Surgery: Cross-over transplants open up the new perspectives for transplantology Jarosław J. Fedorowski, President of the Polish Hospital Federation, Governor of the European Hospital and Healthcare Federation (HOPE): Polish Hospital Federation - “Gateway for Investors” From an Idea to a Healthy Society - Modern Technologies in Medicine Prof. Henryk Skrarżyński: Courage

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Agata Jasiczek, MD, owner of AA s.c. Private Dental Clinic and Euro Beauty Warszawa: Acting evolutionarily, not revolutionarily

Anna Rulkiewicz, President of LUX MED Group: IT revolution in healthcare

Patryk Mirecki: For health and beauty Prof. Ryszard Pregiel, President of the Polish Chamber of Commerce for High Technology ( PIGZT): Technology clusters are a chance for Poland 11th International Symposium “Industrial Property in Innovative Economy. Science-Business-ProfitDevelopment: Building an Effective Innovation Ecosystem” SUN Yingnan, Chief Specialist of International Cooperation, Confucius Institute in Opole and Intercultural Business Consultant: Overcoming Cultural Barriers in Chinese Business

Prof. Elżbieta Mączyńska, President of the Polish Economic Society (PTE): Nation can be wealthy if it is not ethical Krzysztof Pietraszkiewicz, President of the Polish Banks Association: The challenges ahead for the Polish financial system

Defence Sector

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From The Government Information Centre

ICT

From The President’s Press Office

Energy

Medicine

Our Guest

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The 23rd International Defence Industry Exhibition (MSPO) has beaten new records Prof. Mariusz Figurski, Deputy Rector for Development, Military University of Technology: Keyboard has become a Kalashnikov of the 21st century Andrzej Halicki, Minister of Administration and Digitization: The Regional Warning System – making use of modern technologies Michał Kurek, Director of IT Risk Management Department: Threats, risks, problems and constraints in the implementation of cybersecurity Andrzej Tymecki, Vice-President of Exatel: Threats have moved onto the web

Marcin Haber: The Smart City of the Third Generation is being born

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Double-digit growth in investment in new power generating units in Poland

Jarosław Bauc, Vice-President of Polish Oil and Gas Company (PGNiG): We are the largest oil and gas producer in Poland International Fair of Mining, Power Industry and Metallurgy in Katowice

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The 11th International Railway Fair 2015 TRAKO Polish commercial real estate market is in good shape MODO - A new sales concept Cultural Monitor Tadeusz Zielniewicz, Director of the Royal Łazienki Museum: A garden paradise in the middle of a dynamic city... Maciej Proliński: Napoleon and art Maciej Proliński: Life is a stage Awards of the European Business Club of Poland – handed out! POLAGRA FOOD 2015 – previews of innovative solutions and new lines of development Meat Arena festival on Polish-German border Economic Monitor

Cover: Prof. Florian Ryszka / Photo: Łukasz Giersz Photos on issue: www.shutterstock.com

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CONTENTS

Infrastructure

Culture Real Estate Food Industry

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DTP: Godai Studio www.godai.pl

President: Krystyna Woźniak-Trzosek

Writers/Editors: Maciej Proliński, Jan Sosna, Sylwia Wesołowska- Betkier, Grażyna Śleszyńska, Janusz Korzeń, Jerzy Bojanowicz, Janusz Turakiewicz,

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Contributors: Agnieszka Turakiewicz

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Editorial

The best thing for us to do is to watch and learn… The majority of Poles want a change, for the better of course, so as to be able to cope with the future crises and challenges

fter the bankruptcy of the world’s fourth largest investment bank was announced on 15 September 2008, Europe was severally affected by a series of crises: first the recession followed by the sovereign debt crisis, then a war in Ukraine, and now the immigration flood. Pessimists can still think of a few others (for example ecological, energy, demographic), painting a catastrophic picture of the world throughout the whole 21st century. What about the optimists? Without denying the importance of these critical problems, they - at least euro-enthusiasts - stress that so far the EU has been able to successfully deal with these challenges, accommodate the situation and create - yet with difficulty - defence mechanisms. According to Janusz Lewandowski, former EU Commissioner for the Budget, that is what “differs us - free, democratic societies - from dictatorships that fell under the weight of problems. These crises ultimately strengthen the EU. For example, there would be no question of the energy union were it not for the war in Ukraine.” The past experience seems to confirm these views. The Baltic states or Slovakia, which were painfully hit by the financial crisis, have surprisingly quickly got back to the track of a fairly rapid growth, something that is already felt. How to leverage these experiences here in Poland, which is the only European country to have avoided the economic recession? Our neighbours (which turned out to be “crisis busters”) do not keep their recipes secret. On his recent visit to Poland, Vazil Hudák, Slovakia’s Minister of the Economy, put it clearly: “While consolidating the public finances, we also strived to carry out structural reforms, we lowered tax burden on wages, the tax wedge, and enhanced competitiveness.” The best thing to do is to watch and learn. Especially that we are in the runup to the general election, which will designate the ruling elite

for the next four years. Is switching from the phase of the economic defensive to the phase of the economic offensive going to a change for the better? In the first edition of “Polish Market” following the outbreak of the financial crisis 2008, we published a commentary by Prof. Leszek Balcerowicz, one of the architects of the Polish economic system, who ventured quite a paradoxical hypothesis that the strategy to defend the economy (and society) against the crisis at any cost may prove wrong. When that? When the price to pay for this successful defence will be reluctance to reforms. All the indications are that the majority of Poles want a change, for the better of course, so as to be able to cope with the future crises and challenges. However, as in other European countries marred by crises, separatist tendencies can be observed. It is a road to nowhere. It seems ridiculous to speak of an excessive equity swelling in a country where the value of banking assets, although growing rapidly and even exceeding EUR 365 billion, is still far lower than in our EU partners: PLN 13 trillion in Britain, or EUR 11 trillion in Germany. Yet we do not need to have complexes. Realism requires to conclude that, for the time being, we have the financial system the size of that of Greece, and to satisfy national pride by stating that although not larger, it is indisputably better. It will be larger in its time, too, because we will make it.

Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd.

10/2015 polish market

President

President Andrzej Duda on a visit to Berlin

Talking on security, NATO and refugees with Angela Merkel

he Polish presidential couple was officially welcomed by German President Joachim Gauck and his spouse Daniela Schadt in front of the Bellevue Palace.“I am convinced that together we can build security in the European area and strive for good and constructive decisions at next year’s NATO summit in Warsaw, decisions that will build in the future not only a sense of security, but the real security,” said Andrzej Duda at a press conference. President Duda stressed that many issues in the Polish-German relations need to be continued, such as youth exchange, which has long worked perfectly. He said that the German President offered to take patronage over the programme of youth exchange between the two countries. “I am pleased that I will be able to share this initiative with Mr President,” declared Andrzej Duda.

President Andrzej Duda on a visit to Tallinn

stonia was the first country to be visited by President Andrzej Duda. In Tallinn, the Polish President spoke with his Estonian counterpart Toomas Hendrik Ilves. He also met with Prime Minister Taavi Rõivas and Speaker of the Riigikogu (Estonia’s Parliament) Eiki Nestor. Both Presidents laid wreaths at the Freedom Monument in Tallinn. “It is unacceptable that arguments of economic or military potential should be the sole determinants in international relations,” President Duda said in Tallinn. Estonia’s President, for his part, pointed to Poland as the leader of the regional security cooperation. “We must take care of our security within NATO structures to make sure it is guaranteed more pronouncedly to our nations. The path to this is marked out, but we need to keep working, consolidating the solutions that have been approved and are being implemented. It is also a matter of a wise policy. I am convinced that, together with Mr President, we will be able to pursue such a wise policy,” the Polish President stressed. In Andrzej Duda’s view, cooperation in the Central and Eastern European region is extremely important. Referring to the peaceful demonstration in which a human chain was formed on 23 August 1989 across Estonia, Latvia and Lithuania, the then Soviet republics, President Duda said: “I would like this chain called the ‘Chain of Freedom’ to become one day a chain stretching from the Baltic Sea, from Tallinn across all of Central Europe, all the way to the Black Sea and the Mediterranean. It would be the fulfilment of a dream, of a great idea to create and build a community”, he added.

Talking with the Speaker of the Riksdag on cooperation and security issues

resident Andrzej Duda received at the Presidential Palace the Speaker of the Swedish Parliament, Urban Ahlin. The talks focused on strengthening bilateral and regional cooperation and on security issues. Urban Ahlin assured the president that all political forces in Sweden were keen on deepening bilateral cooperation with Poland. He also welcomed President Duda’s declaration to increase Poland’s involvement in the Baltic region. They both agreed on the need for continued support for the Eastern Partnership countries, including Ukraine and Georgia, in the process of EU integration, as well as for unity in the face of the conflict in Donbas.

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fter a meeting in Berlin with Chancellor Angela Merkel, President Andrzej Duda said that they talked on security, NATO, the EU and the refugee problem. He added that the talks were constructive and he felt he had “found understanding” on the German side. “We talked about security issues, the future of NATO and the EU. Of course, we also discussed the issue of refugees which here, in Germany, creates a stir for obvious reasons,” Andrzej Duda told journalists after the meeting with Angela Merkel. He stressed that, from the Polish point of view, the most important issues are security and ways to work out a sustainable peace in Ukraine. “It was a constructive conversation with Madam Chancellor and, above all, a very long one, since significantly longer than anticipated. I will put it as follows: there is openness and understanding for our situation, but there are also problems associated with issues more global than the Polish-German bilateral relations,” said Andrzej Duda.

President Andrzej Duda on a visit to London

he refugees, military and energy security were the focus of the meeting between President Andrzej Duda and Prime Minister David Cameron in London as part of the Polish presidential couple’s visit to London on 15 September. After the meeting, President Duda told reporters that some important European issues were discussed, including the refugee problem. “We agreed that we must first of all fight what makes these people flock towards Europe,” said Andrzej Duda. He added that he talked with Prime Minister Cameron about military and energy security. “Mr Prime Minister agreed with me that it is necessary to develop NATO infrastructure in Central and Eastern Europe, which means strengthening the Alliance’s eastern flank,” he said. Andrzej Duda met Polish WWII veterans living in Britain and attended the ceremonies marking the 75th anniversary of the Battle of Britain at London’s St. Paul’s Cathedral, along with David Cameron and Prince Edward. “Here, people still remember great services of Polish soldiers, their bravery in defending the skies over London and Britain. I hope that this respectful memory will continue,” President Duda said.

Prime Minister

Meeting with the Prime Minister of Ukraine: “Poland does support and shall support Ukraine in its pro-European aspirations”

n 9 September, Ewa Kopacz met in Warsaw with Prime Minister Arseniy Yatsenyuk. The talks focused on bilateral cooperation, the EU’s relations with Ukraine, and security issues. The heads of governments also reviewed the implementation of the arrangements made at this year’s intergovernmental consultations, which took place in Kiev on 19th January. Two intergovernmental agreements were concluded in the presence of both prime ministers: on the establishment of the Polish-Ukrainian Youth Exchange Board, and on granting Ukraine a loan of EUR 100 million under tied aid. “Undoubtedly, establishing closer contacts between young generations is the best investment in the future,” Prime Minister Ewa Kopacz said, referring to the establishment of the Polish-Ukrainian Youth Exchange Board. The head of Polish government stressed that the loan granted to

Ukraine would support the local economy and strengthen our economic relations, as it would be allocated for projects implemented jointly with Polish entrepreneurs. Under the agreement, the loan will be used for modernising and upgrading border infrastructure. Prime Minister Yatsenyuk’s visit to Warsaw was his first working visit to Poland.

Prime Minister Ewa Kopacz met Vice-President of Brazil Prime Minister Ewa Kopacz in Bykownia in Ukraine: I bow my head over the graves of the innocent ones

Today, when we are looking into the future, we are optimists, because we believe that we are building a European community based of the same values which the totalitarianism rejected,” the head of the government said at the Polish War Museum in Bykownia. The celebrations were also attended by Ukraine’s Prime Minister Arseniy Yatsenyuk. The head of the government paid a visit to the cemetery in Bykownia on the 76th anniversary of the USSR’s aggression on Poland. Prime Minister Ewa Kopacz emphasised that the aim of the Soviet terror was to eliminate the Polish elites. “The cruel crimes committed here were possible, because the traditional morality, respect for human rights and rights of nations, as well as respect for freedom were rejected. It should be a big lesson for us,” she pointed out.

n 17 September, Prime Minister Ewa Kopacz met in Warsaw with the Vice-President of Brazil Michel Terner. “We have discussed possibilities of economic cooperation development, e.g. in the shipyard industry, mining, as well as extension and modernisation of transport infrastructure,” Prime Minister Ewa Kopacz said after the meeting. The head of the Polish government also expressed hope that trade in agriculture and fishing will increase. She added that Poland and Brazil have recently started to negotiate a double taxation agreement, in order to help entrepreneurs from both countries conduct business activity. The Vice-President of Brazil was accompanied by a group of businessmen from various sectors, e.g. aviation, innovative technologies, defence industry, telecommunications, chemicals, marketing and advertising, as well as transport and banking. This has been the first meeting at such a high level between Poland and Brazil since 2008.

The first delivery of liquefied natural gas to Świnoujście has been ordered. It is due in Q4 2015

The government has adopted the 2016 budget

“

Thanks to this investment project, we will be independent of one eastern gas delivery source,” Prime Minister Ewa Kopacz pointed out in the context of the construction of the LNG port, which is about to be completed. The Minister of the Treasury Andrzej Czerwiński informed that Polskie LNG, the company responsible for the construction of the terminal in Świnoujście, ordered 200 thousand cubic meters of gas. The ship with the material will arrive in Świnoujście in Q4 2015. The construction of the LNG terminal in Świnoujście is one of the biggest energy investment projects in Poland over the last years, and has been recognised by the government to be strategic for the country’s energy security. With the investment, it will be possible to receive natural gas by sea from virtually any direction in the world. The initial regasification capacity will amount to 5 billion cubic meters, and it will account for approximately one third of the Polish demand for natural gas.

he draft 2016 budget assumes: revenue - PLN 296.8 billion, expenditure - PLN 351.4 billion, and deficit of up to PLN 54.6 billion. What will contribute to the increase in the next year’s budget revenue is macroeconomic factors: increase in GDP (in real terms by 3.8%), inflation (1.7%), a nominal increase in salaries in the national economy (3.6%), an increase in employment in the national economy (0.8%) and an increase in individual consumption (in nominal terms by 5.5%), as well as tax changes. The government has planned more funds for socially important causes. What has been provided for, among other things, is increasing by over PLN 2 billion the funds for salaries of the employee groups to which - as a rule - the “salary freeze” has applied since 2010. In 2016, one-off cash allowances will be paid out to certain old-age and disability pensioners, persons who receive pre-retirement benefits and allowances, bridge pensions or teacher compensatory benefits. Approximately PLN 1.4 billion will be earmarked for that purpose. Furthermore, outlays for science will increase by 4% as compared to 2015. 10/2015 polish market

Magdalena Gaj, President of the Office of Electronic Communications (UKE)

Universal Internet access and cybersecurity

Our Guest

n discussions about the Polish economy, much space and attention is given to issues concerning access to the Internet and the security of using it. It should be stressed that Internet access is becoming increasingly universal in Poland. Last year, 90% of Polish households had access to the Internet and it was used by more than 13 million subscribers. Mobile access is especially popular. Over 86% of Polish people have such access and in this respect we are well above the European Union average of 67%. In Poland, the Internet is used not only by more and more people, but also more and more intensively. Last year, the amount of data transferred through the networks of Polish mobile phone operators reached 260.4 billion megabytes. The past five years saw a seven-fold increase in data transmission in Poland. Does the problem of digital exclusion exist in the country? It definitely does. However, it is increasingly of sociological and social nature rather than being due to a lack of technical access or high costs involved. Many people do not know how to use the Internet or do not see the need to do so. Another step on the road to universal Internet access will be the conclusion of the auction for the 800MHz frequency band. Almost all Polish people will get access to LTE mobile broadband after these frequency bands are taken up and the operators invest to cover nearly 2,400 administrative districts, mainly in rural areas and small municipalities, with the LTE signal. This is of particular importance for residents of smaller towns and villages, and areas outside large urban centres where it is not always economically viable to build fixed broadband networks and where cable operators do not operate actively. Poland has to meet as soon as possible the obligations of the Digital Agenda for Europe and the National Broadband Plan concerning broadband access – by 2020 everyone in the country should have access to broadband with a minimum speed of 30 Mbs. The disappearance of blank spots – areas without access to the Internet – and universal broadband access will be conducive to building a modern knowledge-based digital economy. It is not only market mechanisms, meaning telecom operators competing with each other in quality and price, that ensure universal Internet access. The use of the EU funding allocated for this purpose also plays an extremely significant role in this respect. More than 17,000 kilometres of networks have been constructed since Poland started to carry out EU projects, with nearly 12,000 kilometres of networks built from scratch and 5,000 modernized with the use of existing infrastructure. Around 45,000 kilometres of fibre optic networks are to be built by the end of 2015. Local governments make an important contribution to popularizing access to the Internet by offering free access, especially in public places. These are called hot spots. Almost every larger city give its residents and tourists free access to the Internet in the most popular public places, something which not only stimulates people’s interest in access to the net but also strengthens their confidence in the Internet environment. Is the Internet a secure environment? Are there any risks involved in using it? We need to have these questions in mind, especially when it comes to “digital natives,” who have been “born with tablets in their hands.” We should

The rapid development of the Internet and the broadening of access to it give us wide potential to use its benefits, but also the ability to violate the established social norms which are to ensure security.

not forget that the Internet is a kind of social space with communication being its most popular dimension, a space where people help and give advice to each other, and post information of various sorts. The development of the Internet is a positive social phenomenon. However, as a social space, it has its imperfections. This is why cybersecurity, or protection against cyberspace threats, is such an important issue in using the Internet. We have seen an intensive development of Internet services and applications. The rapid development of the Internet and the broadening of access to it give us wide potential to use its benefits, but also the ability to violate the established social norms which are to ensure security. Unfortunately, there is a steady growth in the number of cybercrimes in Poland. According to data from the National Police Headquarters, such crimes nearly doubled in the first half of this year to more than 1,200. And this number includes only detected and officially known crimes. Consequently, cybersecurity, as a new dimension of public security, especially given the universal access to the Internet, is an important problem for modern states to deal with. The president of the Office of Electronic Communications is among the bodies responsible for issues associated with cybersecurity. The president takes measures to strengthen this security. The guide “Be Aware of Internet Threats” is posted on the Office’s website: www.uke.gov.pl. It devotes much space to ways to protect security, privacy and personal data when using publicly available telecom services. Let us remember that the best way to ensure security when using the Internet is technology, meaning antivirus programs and filters, but above all knowledge about rules of secure Internet use and alertness to threats. The education of users, including by means of this guide, is what contributes the most to this knowledge. • 10/2015 polish market

Economy

TOWARDS a Resilient Europe? Patryk Mirecki

he 25th jubilee edition of the Economic Forum in Krynica-Zdrój was held on 8-10 September. The event was attended by more than 3,000 people from 60 countries political, economic and social elites from Europe, Asia and America. The leading theme of this year’s Forum “Towards a Resilient Europe? Strategies for the Future” was a reference to the economic, social and political transformations that have resulted from the global economic crisis. The meeting’s agenda comprised over 180 debates, plenary sessions, thematic blocks, lectures and reports. It was built around a dozen thematic tracks, among others: Energy Forum, Europe and the World, Innovation Forum, Security Forum, State and Reforms and Business and Management. Although its very name suggests that the Krynica meeting deals mainly with economic issues, this year’s edition was not short of political accents. While opposition politicians were extremely visible in the first part of the Forum, Ewa Kopacz spoke on the last day. In her speech, the Polish Prime Minister stressed the urgent need to solve the problem of refugees, increasingly affecting EU countries.

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She also announced a faster commissioning of the LNG terminal in Świnoujście. Much to the surprise of quite a few of observers and the laureate himself, the title of the “Man of the Year” was awarded to Jarosław Kaczyński, President of the Law and Justice party (PiS), something that he described as a “return to normality.”

The biggest problems facing Europe and Poland Speaking at the opening plenary session, President Andrzej Duda referred to the Forum’s leading theme, stating that Europe’s biggest problems were poor demography, the eurozone’s weakness, the wave of immigrants from Africa and the Middle East and the war in Ukraine. According to President Duda, Europe’s military security is guaranteed by NATO. He also said that further integration of Europe must respect the sovereignty of individual states, adding that if Poland was to adopt the euro, such a decision should be preceded by a nationwide referendum. Beata Szydło, the PiS candidate for the office of the Prime Minister, stressed in her speech the need to strengthen Poland’s security. She said that one of the most important

Panel discussion sectors in terms of jobs and innovation should be military equipment. Therefore, PiS will strive to increase military spending to approx. 3% of GDP so it becomes the driving force of the Polish economy.

We need deregulation and further EU economic integration Europe’s share of the world’s GDP has been steadily decreasing. To stop this trend, deregulation and further integration of the EU economy is needed. This was pointed out by

Economy the participants of the plenary session titled “A New Dimension of Economic Policy. Europe in the Global Game.” According to Vazil Hudak, Slovakia’s Minister of Economy, the EU is still an important element of the global economy, but there is no denying that this importance is decreasing. Janusz Lewandowski, Polish MEP and Chairman of the Economic Council to the Prime Minister, argued that Europe still plays a significant role in international institutions, admitting however that it is rather a matter of historic legacy than reflection of its presentday clout. Lewandowski also stressed that Europe’s development has been inhibited by a series of crises in recent years. However, he added, these crises have ultimately strengthened the EU. In his opinion, there would be no question of the energy union were it not for the war in Ukraine. In this context, it is worth quoting Mirek Topolanek’s critical opinion on the agreement that Russia’s Gazprom has signed recently with western European fuel giants concerning the construction of the Nord Stream II gas pipeline. The former Prime Minister of the Czech Republic said: “We have to face up to a real danger, we must not repeat the same mistakes we made a few years ago. Back then, there were likewise problems with transit and the Nord Stream suddenly turned out to be a cure. Its extension is a silly decision, because only 57% of the existing pipeline’s capacity is used. And geopolitical consequences will loom large, with EU’s unity weakened and the energy union project undermined. According to Hans Timmer, Chief Economist at the World Bank, the EU must learn the lessons from the experience of Japan, which has been in stagnation for over 20 years. “After the banking crisis, Japan’s government tried to stimulate the economy with traditional fiscal tools. But it did not work, because Japan failed to find a new engine of growth that was hidden in services, and the services sector was overregulated,” he said.

the 15 countries of the “old EU.” These projects will increase the security of energy supplies, and their total cost till 2020 will reach approx. EUR 25 billion. The voice of Mirek Topolanek, the Czech Republic’s former Prime Minister, resonated in the context of increasing the energy security in CEE. In his opinion, the CEE countries should put pressure on the European Commission to ensure the appropriate redistribution of EU funds. A substantial clarification is also needed of what the North-South Corridor means for Central and Eastern Europe. “Firstly, the project should be an alternative to Russian gas. It is also important that it has the PCI (Project of Common Interest) status, because without an adequate political support, it will remain on paper. We should insist that the European Commission take measures to make sure that funds for transport infrastructure are not dispersed into small projects. Funds should be allocated to multinational projects such as the North-South Corridor,” Topolanek said. According to Janusz Steinhoff, Poland’s former Deputy Prime Minister and Minister of Economy, the North-South Corridor is economically viable and will result in both greater efficiency in energy management and lower gas prices. This project should be a priority for the EU rather than the construction of further sections of the Nord Stream, which is nonviable in terms of costs, diversification and security. It is also an example of bypassing the rules governing the gas market in Europe. Another panel discussion was hosted by the Industrial Development Agency (ARP), a unit subordinate to the Ministry of Economy, which presented its ARP Venture Fund

Ewa Kopacz, the Polish Prime Minister, during the speech co-operating with innovative SMEs (and supporting them financially) at an early stage of their development. The Agency cited examples of two such companies: Invento manufactures innovative plastic beverage cans; Hertz Systems, in cooperation with the ARP Venture, develops GPS systems, which are used not only in machinery and military equipment, but also for civilian purposes, for example in non-invasive blood glucose monitoring. Among the many events accompanying the 25th Economic Forum in Krynica was a show of drones used by PKP Cargo to ensure the security of shipments. According to the company data, in the first half of 2015 alone, the amount of stolen goods, especially coal, was reduced as compared to the first half of 2014 by as much as 60% thanks to the use of drones patrolling freight wagons from the air. •

Integrated energy markets The North-South Corridor, connecting the countries of Central and Eastern Europe, and the construction of integrated energy markets in the European Union were the topics discussed by the participants of the panel discussion chaired by Paweł Olechnowicz, President of Lotos Group. Bogdan Janicki from Lotos presented the conclusions of the CEEP (Central Europe Energy Partners) report. The document covers investment projects meant to enable a close trade and energy cooperation both between the North-South Corridor members themselves and between them and

Andrzej Duda, President of the Republic of Poland 10/2015 polish market

Medicine

Revolution in transplant medicine is coming Prof. Florian Ryszka, MD, tells Maciej Proliński about priorities of the Pharmaceutical Research and Production Plant Biochefa. In today’s public debate, there is more and more talk that the medical sector may be a showpiece of innovation for the Polish economy in the world and that the potential of the most gifted scientists and best managed research institutions should be exploited and developed because their success may benefit the whole economy. Are we exaggerating, perhaps? Scientific research is a source and driver of innovation in any country’s economy. Innovation, including in medicine, is key to the development of the nation as a whole. Poland has several leading excellent medical centres which definitely are of world-class standard. In recent years, our sector has been helped in its constant development by considerable funding from the European Union. And I think it is worth reminding Europe about the contribution that our scientists have made to the development of science in the world. But first of all, we should firmly declare our intention to actively take part in the development of science pm

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in the 21st century. It is worth showing that, thanks to the investment made in the past several years in research, apparatus and staff, Polish science is becoming increasingly competitive, also as an attractive place for conducting scientific activity. So we are not exaggerating. However, I want to make it clear that Polish businesses have to undertake more intensive activity to develop innovation, for example in medicine, so that new drugs and new technologies created on the basis of Polish inventions broaden patients’ access to modern therapies, help save human lives and generate income for the Polish economy. If we want to live better and in good health we need to have access to innovative medicine able to meet the constantly emerging new challenges of our civilization. This is a requirement of the present day. pm

Science has certainly made great progress over the recent decades and changed many issues associated with our life. Medicine, for instance, has developed enormously. But

do you agree that in this respect “the closer we come to the horizon, the more distant it becomes”? Man cannot master everything. If, for example, I have managed to achieve something in transplant medicine it is probably because I am not a transplant surgeon and can look at this branch of medicine from the sidelines. I think we have made a really huge progress in the past decade or so in the transplantation of such organs as the heart, liver, pancreas, kidneys and lungs. Owing to the standardization of techniques for organ harvesting and transplantation, the use of new immunosuppressant agents and the development of increasingly effective solutions for organ perfusion and preservation, transplantation has become in many countries a routine method of treatment for patients with organ failure. Another factor, without which all these hard data would have been absent, is the increasingly high number of donors, which means positive changes in public awareness, including Polish people’s awareness.

Medicine In your view, what are the characteristics of Polish biotechnology today? Polish biotechnology is characterised by advanced education in the area of life and engineering sciences at both the master’s and doctoral level. But I think that, owing to the shortage of experienced practitioners with ties to business, the practical aspect is still not strong enough in our education and research, and the transfer of innovative technologies from universities to industry is still insufficient. pm

Where did the idea come from for you to set up your own business, an idea you put into practice almost 25 years ago? The firm has the words “science” and “production” in its very name. Indeed. I always tried to work with business. For 20 years until 2004 I was head of Katedra Farmacji Stosowanej i Technologii Leków (Applied Pharmacy and Drug Technology Department) at the Medical University of Silesia in Katowice. If we look at the activity of our universities, we can see that their professors, doctoral and master’s students represent a huge potential, which however has remained largely untapped for years by small and medium enterprises. It is now mainly public officials and increasingly often lawyers who deal with evaluating research. I do not understand that. Let me give you a revealing example. When I worked at the university I submitted 17 patent applications and received only 1 patent. Since I set up my own business I have submitted 10 patent applications and have already received eight patents, including two international ones. To sum up, the Medical University of Silesia was for sure a valuable “deposit of knowledge” thanks to the creative work of its professors and other staff. But if I implemented a project neither me nor the university got anything more out of it. I registered Biochefa in 1991. Its core was made up of research workers of the Applied Pharmacy Department at the Medical University of Silesia, including my former master’s student Barbara Małgorzata Dolińska who over these 24 years has gone successively through all scientific career stages and now holds a postdoctoral degree and the title of professor of pharmacy. Biochefa has for years been a place where scientific research is to meet, and does meet, with practice. This is the direction I have preferred since I started managing this institution. I mean applied scientific research designed to benefit patients as soon as possible. Our mission is to provide our clients with safe products of high quality and with a guaranteed effect. Biochefa has taken part in the implementation of 13 projects funded by grants from the Ministry of Science and Higher Education, including research into xenotransplantation, pm

solutions for the perfusion and preservation of organs for transplantation, new applications of hormones in medicine and veterinary medicine, and preparations for the prevention and treatment of cancer, circulatory disorders, obesity and osteoporosis. Our firm, which has been the only biotechnology firm in the region of Silesia throughout this time, is developing dynamically. It has a licence for the production of sterile veterinary preparations. Biochefa is also involved in advanced research on the isolation of protein hormones and the mechanism of their action, and develops prescriptions for solutions. One of its biggest successes is developing and putting into production 16 new technologies. Let me add that Biochefa offers a wide range of mineral calcium supplements in the form of tablets and healthful tinctures made of natural ingredients. The production of all these dietary supplements is based on the latest technologies and scientific achievements, and complies with strict quality standards, which guarantees the products’ safety and efficacy. “The more complex the world becomes, the more difficult it is to complete something without the cooperation with others,” Alexander Fleming once said to stress the importance of the environment in which a scientist works for the research process. And what is the “innovation environment” of Biochefa? An important element in the activity of our firm is regular cooperation with numerous scientific centres such as the National Research Institute of Animal Production in Balice, Wrocław University of Environmental and Life Sciences, Medical University of Silesia in Katowice, Silesian University of Technology and outstanding specialists in medicine, veterinary medicine, chemistry and biology. Our firm is also a member of the Silesian Centre of Biotechnology, Polish Chamber of the Pharmaceutical Industry and Medical Products Polfarmed, Polish Chamber of Commerce for High Technology and Nutribiomed Cluster in Wrocław. It also takes part in investment projects, like for example the Sosnowiec Science and Technology Park. pm

Biochefa, in conjunction with a team of transplant surgeons from the Medical University of Silesia, has developed Biolasol, a solution for preserving organs for transplantation. The product has been nominated this year for the Polish Innovation Award granted by the Polish Agency for Enterprise Development (PARP). Can it indeed revolutionize transplant medicine in the near future? What is so innovative about the solution?

Biolasol is a unique solution for organ transplantation, a world-class innovation successfully competing with an American equivalent present on the market. It is the first Polish solution for organ transplantation developed by teams of university professors. Research to find the right ingredients for the solution and prove its efficacy took more than 20 years. Initially, we conducted model research on isolated porcine kidneys, livers and pancreases. As the result of the model research was positive, we were able to begin pre-clinical trials. The goal was to assess the efficacy and safety of the solution in a living organism and to compare its effectiveness with the ViaSpan solution, which is now used in clinical practice. At the stage of preclinical trials, it already turned out that when Biolasol was used the clinical outcome was “not worse” compared to ViaSpan. At the same time, our firm’s production potential, focused on making an aseptic product of the highest quality, was being modernized and expanded. It is worth stressing that we developed a solution which contains exclusively ingredients needed by the human organism. We chose for our solution an ingredient used in intravenous solutions - dextran. The Americans use hydroxyethyl starch. And our product is more natural. Another stage in the development of our solution was its modification by the addition of selected hormones and trace elements, including prolactin. Prolactin is effective in men during and after a heart attack, but it may cause impotence. This is why we have already reduced the dose of the hormone 1,000 times. And this has turned out to be effective. And what is still ahead of you in this respect? An important problem, for example, is that transplant surgeons performing transplant procedures of various kind for 20 or 30 years are accustomed to a different solution. And now they have to take to a new one. There are also a few problems and challenges we are still working on, like for example acute rejection, problems resulting when the organ donor and recipient are of different ages, and haematological problems of various kind. We hope, however, that the solution will soon enter the market and will indeed revolutionize medicine. I think it is a question of time. There is demand for around 8,000 litres of such a solution a year in Poland, 200,000 litres in Europe and around 1 million litres in the world. Among the persons I have “hounded” over this important issue of research and experimental nature is Prof. Marek Krawczyk, head of the General, Transplant and Liver Surgery Clinic of the Medical University of Warsaw. The Clinic, Poland’s largest centre meeting world-class standards in terms of patient care after organ transplantation, would be a natural place for such an important scientific meeting on this subject. • pm

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Cross-over transplants open up the new perspectives for

transplantology

Prof. Marek Krawczyk, Rector of the Medical University of Warsaw, Head of the Department of General, Transplant and Liver Surgery The history of transplantology in Poland is a matter of the last few decades. What was the crucial moment? On 26 January 2016 it will be 50 years since Poland’s first successful kidney transplant was performed at the Medical University of Warsaw. This would not have been possible had it not been for two outstanding surgeons: Prof. Jan Nielubowicz and an outstanding internist Prof. Tadeusz Orłowski. They laid the foundations for the development of transplantology in Poland. On the occasion of the 50th anniversary of the first successful kidney transplant the Medical University of Warsaw is organising a special symposium devoted to this breakthrough event, as well as to modern trends of the Polish transplantology. Both professors worked in what is today the Infant Jesus Hospital, where they founded the Institute of Transplantology that continues to exist. This institution initiated all the innovative activities in the field of transplantology and is now leading the way across the country. pm

How many organs are transplanted in Poland over a year? According to data of POLTRANSPLANT, since the first successful kidney transplant in Poland, a total of over 27,000 organ transplants and several thousand bone marrow transplants from unrelated donors have been made in Poland. Currently, 87% of kidney recipients, 73% of liver recipients and 61% of heart recipients live for at least five years after the transplantation. In 2014, a total of 1,616 organs, including 1,046 kidneys, were transplanted in Poland. The second place belongs to liver transplants (336 in 2014), followed by hearts, kidneys together with the pancreas, and lungs. pm

In the past, organs were taken from deceased people only. Now, living persons can be donors, too. There has been much talk of the so called cross-over (chain) transplant among several unrelated couples. Do

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such transplants have a chance to develop in the near future? The law in force allows the transplantation of organs from a related living donor, as well as from spouses. However, it happens that there is no immunological compatibility between the spouses, while there is one between the spouses from different couples. Then the cross-over transplant is possible. This opens new perspectives for kidney transplantations, as it will be easier to tackle the problem of immunology. We will be able to cross-match different couples according to their immunological compatibility. Other innovation in the case of kidney transplantations from living donors involves organ harvesting using laparoscopic techniques, which are less invasive. Heart transplantations have also seen tremendous progress since the days we are taken back to in the film “Gods” dedicated to the memory of Prof. Zbigniew Religa? Heart transplant is a method of treating patients with heart failure. The same goes for as kidney and liver. What changed is how patients are qualified for heart transplant. At the beginning, it is the danger of the loss of life that enforced qualification. It was not fully taken into account that the ailing heart of the recipient had already produced consequences for some years for the functioning of the pulmonary circulation. So even if transplantation was successful, the treatment eventually failed because other organs were damaged. These days a recipient qualified for transplantation is provided with an accurate assessment of whether a heart transplant will give him or her a chance of long-term survival. Moreover, the number of facilities performing heart transplants has increased in recent years. pm

You specialise in liver transplantation. What are its specifics? The first attempts to transplant liver in Poland were made in 1987, i.e. over 20 years later pm

than kidneys. The world’s first liver transplants date back to the 1960s and Poland’s first successful liver were performed Prof. Piotr Kaliciński in 1990 at the Children’s Memorial Health Institute. The liver transplantation programme in adults (from deceased donors) was launched, with good results, in my Department in 1994. Our first patient is still alive. Now also liver fragments are transplanted from living donors as part of the programme we started in 1999 with a team of Prof. Kaliciński. Usually 2-3 segments of liver are subject to harvesting, donors being in 90% parents and recipients - children. These relatively small pieces of the liver ensure the organ’s proper functioning, and the pieces of liver grow with the child. Since 1994, we have made more than 1,600 livers from deceased donors and harvested more than 270 pieces of liver from family donors in my Department. It is one of the major liver transplantation programmes in Europe. In 2014 alone we performed 184 such transplants. Another 40 are made every year in the Infant Jesus Hospital. What type of transplants can be made in the near future? We are infusing hepatocytes (liver cells) in a damaged liver in order to regenerate it. Implantation of stem cells is also considered in the case of heart. Attempts are also made to transplant the islets of Langerhans, or pancreatic islets which produce insulin. Transplantation of the entire pancreas is also feasible, but it is a difficult procedure with many possible complications. For the patients, however, the most important thing about the pancreas is insulin. Therefore attempts are made at transplanting the pancreas islet not into the pancreas but into the gastric mucosa where they settle enough to be able to produce insulin although they are not in the pancreas. As regards liver transplants, trials are made to inject hepatocytes into such a structure (matrix) as it fulfills the same functions the existing organ. • pm

Medicine

Polish Hospital Federation “Gateway for Investors” Jarosław J. Fedorowski, President of the Polish Hospital Federation, Governor of the European Hospital and Healthcare Federation (HOPE), talks to Marcin Haber. What is the mission of the Polish Hospital Federation? The Polish Hospital Federation was established in 2011. It is an employers’ organisation representing over 100 hospitals from across Poland. The initiative was born during the Hospital Management Congress, a few years ago, which was attended by the President of the European Hospital and Healthcare Federation - HOPE. It turned out that Poland was the only country without representation in HOPE. The organisation represents about 80% of hospitals throughout the European Union. Then we came to the conclusion that we should exist at the European level and, together with the initiating group under my leadership, we decided to create from scratch an organisation – modelled on the European Hospital and Healthcare Federation – the only membership criterion being the fact of being a hospital, regardless of its location, ownership model, or a specific profile. We were admitted as a member of HOPE. The aim of the Polish Hospital Federation is cooperation with foreign organisations primarily within the framework of the European Hospital and Healthcare Federation. Domestically, we support the interests of hospitals and collaborate with governmental and non-governmental units on legislation issues. Our mission can be divided into several basic segments: legislation - we participate in the public consultation, respond to invitations from the ministry, parliamentary committees and subcommittees and the pm

National Health Fund, we help hospitals solve their problems in cooperation with the public administration bodies, such as the National Health Fund, State Sanitary Inspectorate and local authorities. The Federation is also a venue for hospital directors allowing them to share their ideas or solutions. Another segment is cooperation with NGOs. We cooperate with such organisations as the Polish Chamber of Physicians, trade unions, managers’ associations, especially the Association of Healthcare Managers STOMOZ. Finally, we are an active member of the Employers of Poland organization. You mentioned legislative cooperation. What does it look like domestically - with the Ministry of Health, and how is it in the European forum? Do you feel you get enough attention? At the European level - yes. I think that is because of a slightly different approach to NGOs. As a member of the Governing Board of the European Hospital and Healthcare Federation, I can see how much the European Parliament and the European Commission are interested in conducting consultations and maintaining contacts with organisations such as HOPE. I would even venture to say that they invite us to meetings. The EU has a very long tradition of cooperation with NGOs. These are well-established methods of cooperation as well as some customs. In Poland, we are still learning how to make use pm

of the cooperation with NGOs. There is a certain, unfounded fear. The word lobbying has negative connotations. Despite its positive connotation in Brussels, the word “lobbying” continues to suffer a shady reputation in Poland. Therefore, these contacts are not very open. The Polish Hospital Federation and other members from the healthcare sector organise various international conferences with the participation of foreign experts, sometimes from health ministries. Unfortunately, Polish state authorities are not sufficiently involved. And even if they declare participation, it is a very limited one. The result is that the potential of such conferences and a wealth of knowledge shared by Polish and foreign experts fail to reach the public administration. pm

Speaking of the hospitals’ profitability and proper functioning, one needs to remember that hospitals are there to serve patients. How to combine profitability with the interest of patients? One foreign specialist once said that where medical staff are satisfied patients feel comfortable as well. Therefore, we believe that a well-organised and properly managed hospital, with financial resources adequate to its mission, a hospital whose staff are satisfied with their working conditions is also a hos• pital that provides comfort to patients. pm

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From an Idea to a Healthy Society Modern Technologies in Medicine The Economic Forum in Krynica covers all issues related to the improvement of society. In addition to energy or military security, there were also topics concerning Polish healthcare. You can hardly discuss the future of the country, especially its economy and finances, without consideration of healthcare. Nor can you create the country’s future without consideration of the public health problem, its importance and impact on all spheres of life. Demand for new health services, making use of the latest technologies, including the e-health platform, shows that debate is necessary and it should take place on different levels. All these topics were raised at the 6th Healthcare Forum - a venue for all stakeholders to discuss the current problems of the medical sector in Poland and transformations leading to increasing the efficiency of the healthcare system and patient satisfaction.

Ewelina Janczylik- Foryś

ne of the most interesting thematic blocks was “Innovations in Medicine”, part of which was the panel debate “From an Idea to a Healthy Society Modern Technologies in Medicine.” Do innovations in medicine have a chance to see a quick and widespread use, or will they be available to certain groups of patients only? How to rapidly increase their role in the healthcare system? Are genetic tests, which are extremely useful in medicine, going to be a problem for insurers? The debate was attended by Prof. Andrzej Horban, National Consultant of Infectious Diseases, Head of the Department of Infectious Diseases, Warsaw Medical University; Jerzy Majchrzak, Undersecretary of State, Ministry of Economy; Prof. Jan Lubiński, President, Read-Gene SA; Janusz Michalak, President, Termedia; Igor Radziewicz-Winnicki, Undersecretary of State, Ministry of Health; Prof. Henryk Skarżyński, Director, World Hearing Centre, Institute of Physiology and Pathology of Hearing. Any debate on health creates a stir. After all, everyone deals with doctors or hospitals

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in his or her life. Likewise, the term “innovation”, which is used in all forms and contexts in Poland, sparks emotion. Any self-respecting company advertises itself as highly innovative, starting with a firm producing coffee, and ending with one operating in heavy industry. Everyone understands this word differently. During the debate, too, it turned out that “innovation” means one thing for the Ministry of Economy, another thing for the Ministry of Health, and yet another for entrepreneurs. Actually, the word “innovation” has lost its meaning. Any novelty or progress is pompously announced to be innovation. What is an innovation then, and how does it differ from a breakthrough? What are innovative therapies and technologies? The first speaker to take the floor was Igor Radziewicz-Winnicki, Undersecretary of State in the Ministry of Health: “We must distinguish between the two concepts - innovation and breakthrough. Innovation is of paramount importance in the quest for new technologies. We often seek original solutions. It is truth that in the healthcare system there is more talk of efficiency, effectiveness and benefits for end

users, that is patients, than of innovation. Innovation is associated rather with business and innovative economy. If an innovative health policy was to be based on effective search of new technologies and their implementation, while rejecting those less effective, I think it would be innovative. Also Prof. Jan Lubiński, President of ReadGene SA, believes that it is hard to talk about innovation while its understanding is equivocal. “Innovation is the introduction of something new, scientific research that leads to discoveries. We want innovation to further improve the prevention of diseases and their treatment,” he said. Addressing the question of what innovation is and how it differs from a breakthrough, Prof. Henryk Skarżyński, Director of the World Hearing Centre and Institute of Physiology and Pathology of Hearing, said: “Innovation is a term that I attribute to specific phenomena, programmes, products or therapies used for the first time. Something that is considered innovative can lead to essential progress, for example in the treatment of some diseases. For me, it is very important to define breakthrough and progress.

Medicine In everyday life, both can be observed. Of course, it begs the question of what a breakthrough is and what progress is. I believe that progress is a component of a breakthrough.” Janusz Michalak, President of Termedia, a firm providing trainings, said that in some ways he earns his living with innovation. Actually, he called himself an intermediary between doctors and pharmacists. “It often happens that pharmaceutical companies come to doctors with their products and encourage them to propagate a particular therapy or drug because it is a breakthrough, they say. We double check it with the industry pioneers or doctors. Generally, they have a positive attitude to innovation. But when we learn that this therapy has not pushed its way through the refund procedure, we are very surprised. I would like to be able to appeal against the decision of Mr. Minister, but such a means does not exist. For me, innovation is something unspecified,” he argued. Jerzy Majchrzak, Undersecretary of State in the Ministry of the Economy, what gave account of the understanding if innovation that prevails in the Ministry of Economy. The ministry follows the EU guidelines, and these see innovation divided into two stages: research and development. He said: “We had relatively little time to determine what is what. For us, innovation is any solution implemented in terms of technology, organisation, and other areas, the use of which brings economic benefits. I am aware that the problem will be to determine whether this innovation is ready and that will benefit. To put it clear, innovation is any solution that creates progress. Obviously, innovations can be minor, major, progressive, etc. All the other things are research and development. Research consists of coming up with certain ideas and doing laboratory trials. Then, as the development stage comes to an end, what we obtain is the finished product, technology, or solution. Poland’s expenditure on R&D is less than 1% of GDP, while the EU average is 2%. As for innovations, the country probably spends much more, approx. 15%. We focus on research and development, and that is where the EU cash and the state budget allocations go. As soon as the product passes technical examination, we are ready to introduce it as innovation and launch production. So there is not much room for discussion from our perspective.” Igor Radziewicz-Winnicki, Undersecretary of State in the Ministry of Health, made a short comment: “You can see for yourself that we are discussing the matter that seems easy to define in theory, which is not always the case in practice. I agree with Mr Majchrzak that any technology implemented and

sold represents innovation. It is not my business to buy a technology, nor to rule whether something is innovative. What I do is deciding whether the new technology is more efficient than the one that is available as an alternative.” Responding to the critical remarks of Janusz Michalak, President of Termedia, Igor Radziewicz-Winnicki said: “We are talking about the premises for refund. The decision on refund is not an arbitrary decision of one man. It is made by a number of people. All the data, by which the Minister of Health is guided, are absolutely transparent and everyone has access to them. All decisions are made reasonably. I also do not agree that you cannot appeal against the decision of the minister. It is possible - judicially. The purpose of the refund system is the availability of the most efficient but also affordable technologies.” Prof. Andrzej Horban, National Consultant for Infectious Diseases, Head of the Department of Infectious Diseases, Warsaw Medical University, joined the discussion: “Narrowing the discussion to the ministry’s decision as to which therapy is supposed to be innovative, because it is effective and cheaper, is trimming the commonly available decision-making.” The professor also drew attention to cases where clinical trials are continued. It is only at the end of the trials that it becomes apparent that the product is very expensive. “Now, it is possible to significantly reduce the price of drugs or treatments, which means that the ministry’s policy is effective. Therapies are currently several times cheaper than before. The cost of a new therapy is comparable to that of the therapy used so far. Innovation in health care does not translate into economic profit. Unfortunately, it is a completely unprofitable business.” Jerzy Majchrzak, Undersecretary of State in the Ministry of the Economy, explained what the profit is exactly from the point of view of the ministry. “The benefit is not always profitable. If we are to kick-start innovation in Poland, we cannot afford introducing technologies that do not bring benefits. The basic problem with innovations is when technologies are developed by the government. In general, this ends badly. We have adopted the principle that the state gives a lot of money on research – the most risky stage. Then, if there is a ready technology on the table which has successfully passed laboratory trials, we want it to be introduced in Poland, and not abroad. We would like Poland to boost the number of its own innovations. State subsidies apply to research and development only. I am aware that every sector, including medicine, has its specifics, yet, unfortunately, the rules are the same for everyone.”

Innovation is the introduction of something new, scientific research that leads to discoveries. We want innovation to further improve the prevention of diseases and their treatment. Prof. Jan Lubiński

Prof. Lubiński did not fully agree with the opinion of Minister Majchrzak: “There is a stage of the assessment process when obtaining the finished product requires the involvement of the state, too. There are programmes where it is the state that is interested in a reliable assessment of the project under implementation. The fact that we have less money, and the easiest way to make savings is to cut down research, is common knowledge. But, precisely because there is less money, we should use it optimally and for the research that requires ideas and organisation.” The panellists agreed that innovation is not only technologies, drugs or therapies, but also organisational implementations. The World Hearing Centre served as an example, as it perfectly demonstrates how to succeed by using new technologies, but also innovations in an organisation. Prof. Lubiński is an excellent example that the combination of business and science is possible and can be successful. Given his past experience, he said that the problem is not only drug refund. “Another concern is what we can do under the existing conditions. We leverage the opportunities we have. We often do not believe in our capabilities, we do not believe that we can be the world pioneers in something large-scale. I hope that we will manage to change that.” Prof. Skarżyński echoed: “I think that we are often not ready for success, while in fact we – the Poles – have much to be proud • of before the rest of the world.”

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Courage The World Hearing Centre is an excellent example of how to succeed by using new technologies and innovations in an organisation. “Polish Market” asked Prof. Henryk Skarżyński, Director of the World Hearing Centre and the Institute of Physiology and Pathology of Hearing, to comment on the debate titled “From an Idea to a Healthy Society - Modern Technologies in Medicine” that was held as part of the 25th Economic Forum in Krynica.

What is an innovation and how does it differ from a breakthrough? Innovation is a term that I attribute to specific phenomena, programmes, products or therapies used for the first time. Something that is considered innovative can lead to essential progress, for example in the treatment of some diseases. For me, it is very important to define a breakthrough and progress. In everyday life, both can be observed. Of course, it begs the question of what a breakthrough is and what progress is. I believe that progress is a component of a breakthrough. For me, a breakthrough refers to the implementation of a new therapy, which has much more than recipient. Perhaps it will be easier to understand if I give you a specific example. In 1992, I pioneered in Poland the method of deafness treatment using cochlear implants, which was hailed as tremendous progress in medicine, changing lives of thousands of patients. In 2002, for the first time in the world, I performed a cochlear implantation in a patient with partial deafness, a problem that affects three-quarters of the population aged over 65. The first one meant progress and the second one – a breakthrough, because as many as tens or hundreds of millions of people are concerned. pm

In the case in question, success consists of three components. First, access to the latest technologies, second, the development of treatment methods and increasing surgical and manual skills, and third, social demand.

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When I conducted the first cochlear implant surgery in 1992, it turned out that deafness is a big problem for people of all ages: newborns and the elderly. I could then stay where I was with a one-off media buzz effect, or to face up to the challenge and social needs. I chose the latter, and mastering the technology was only the first impulse. The following year, we started exams in newborns, because we understood that treating 5-year-old children would be very expensive and inefficient, while those undergoing surgery at the age of 6-8 months had a chance to hear normally. We made it change and today the newborn examination programme in Poland is one of the world’s few to work so well, largely thanks to the Great Orchestra of Christmas Charity. Having acquired these skills, we were able to conduct hearing tests for children of early school age. At that time, nobody even spoke of innovation, although the idea of such tests was innovative. 10 years later, we were already performing the greatest number of hearing surgeries in the world. If there had been no specific demand for our services, programmes and products, neither new technologies, nor our skills would have had such an importance. Three years ago, I had the pleasure to invite many distinguished people of science, culture, economics and politics for the opening of the World Hearing Centre in Kajetany near Warsaw. Not infrequently did I heard that its very name is exaggerated. I then said: “We have some elements that the world of medicine

does not have! If we can stand out, let’s stands out.” I must admit that not everyone is happy that the World Hearing Centre is doing well. There is no other such facility in the world. Today there are 70 cooperating centres on all continents, a network that we have initiated. If, however, the concept of innovation is to be confined to new technologies only, then, to tell the truth, these were not so many at the beginning. If it is considered in terms of organisation, implementation of the already known programmes and new ones, for example surgical, then many ideas used in Kajetany did indeed prove to facilitate the functioning of the hospital and that can be safely called innovative. What is the reason why we have so few new technologies in Poland? How to foster innovation? In my opinion, we lack the courage to say “We were the first to do it.” Not every attempt must be successful, and even if it is actually not, then we will know at least which way not to go. I fear that even if we allocate 3% of GDP on research and development, we may not know how to use the money. Precisely because we do not believe in our own strength. Unfortunately, it is a behavioural problem that we fail to muster the courage to say: “Yes, I am talented. Yes, I have skills and qualifications.” I think that we are often not ready for success, while in fact we – the Poles – have much to be • proud of before the rest of the world. pm

Read-Gene SA is a company of innovative technologies. One of major aims is to conduct clinical trials on prevention and treatment of the most common malignant tumors. Companyâ&#x20AC;&#x2122;s innovative approach in oncology is based on the division of patients into sub-groups depending on their genetic profile. Recently the Company completed the construction of the R&D Center in surroundings of Szczecin

Risk of cancers depending on genes and selenium level is presented in figures aside.

Cancer risk depending on serum selenium level Lung cancer Colorectal cancer

The main aim of this project is to examine the food products determining the level of micro and macro elements and vitamins, and then - development of a diet tailored to the individual patient's genome.

office@read-gene.com www.read-gene.com

Pancreatic cancer Mean value

Medicine

Acting evolutionarily, not revolutionarily Agata Jasiczek, MD, owner of AA s.c. Private Dental Clinic and Euro Beauty Warszawa, talks to Marcin Haber about her professional beginnings as a dentist, her attitude to this profession and treatments now popular.

You were beginning your professional career as a dentist. How did you come up with the idea of adding aesthetic medicine treatments to your offer? My firm has been on the market since 1992. I am still active as a dentist, because this is my primary specialisation, and I continue to develop myself in this field. I have been dealing with aesthetic medicine for ten years. My basic principle, much appreciated by my patients, is that any change should be made slowly, step by step. It is not that ladies come and have all possible treatments done at once. We try to do it in small steps, so that patients feel and look better, but that they also remain themselves as opposed to changing their appearance drastically. I think the aesthetic medicine does perfectly match my original profession and can well be applied in dentistry. Owing to my determination, persistence in the pursuit of excellence, I am where I am and I managed to branch out into a new business line, starting my second firm Euro Beauty Warszawa. I am strong with ten years of experience now. I can boast a number of undeniable successes, but above all, a lot of satisfied patients, something that gives me personally a great sense of satisfaction. After ten years of working in aesthetic medicine, I now run training courses in aesthetic medicine for doctors. In doing so, I combine two of my specialties - dentistry and aesthetic medicine - showing the doctors I train that the aesthetic medicine is pm

20â&#x20AC;&#x201A; polish marketâ&#x20AC;&#x160;

a perfect match for dentistry. This is mainly because not everything can be done using dental procedures, not requiring a large surgical intervention. Sometimes the malocclusion is so serious that it requires a major bone remodeling and patients prefer to avoid it, as it is a too drastic operation. Then we can do as much as possible conservatively, and try to remove the rest of the inconvenience and facial distortion through aesthetic medicine treatments. Would you say that orthodontics is a bridge between dentistry and aesthetic medicine? Yes, in a sense. Most defects can be cured by using braces. In the case of congenital defects, it is often necessary to do a surgery, but some patients, for various reasons, choose not to go for it (sometimes probably due to health concerns), and then visible defects can be removed through aesthetic medicine treatments. pm

Have you noticed a change in the attitude to wearing braces? I met with the opinion that today it is sometimes even seen as a sign of social status... Of course, social awareness of the need for treating malocclusion has definitely increased. There is a huge selection of braces, more or less visible, and therefore there are also some fashions. Some patients come and say that they prefer a particular model of pm

braces. Unfortunately, such braces are not always suitable for that patient. But I must admit that such a fashion can actually be seen. What is currently the most fashionable treatment that you perform? Until recently, it was probably straightening and whitening teeth. Social awareness has significantly increased, people have come to understand that they should take care of teeth. Physiological considerations apart, it simply helps you make the world wide open for you, work and socialise. Patients are also more aware of how to make up for any shortcomings and they are increasingly choosing implants. Still, the problem persists of financing such procedures, as they are quite expensive. But patients are already aware that this is a far better solution than grinding down the adjacent teeth in order to fit in a dental bridge. So, undoubtedly, implant prosthetics is becoming more and more common. Invariably popular remains teeth whitening, which, I should say, I am very much in favour of, regardless of the age of the patient. I think that a beautiful smile and white teeth make you appear charming, younger and nicer. Another procedure which is quite popular is the application of crowns and veneers when your own teeth that have lost their functional and aesâ&#x20AC;˘ thetic qualities. pm

Medicine

IT revolution IN

healthcare Anna Rulkiewicz, President of LUX MED Group

here is a need for changes within the scope of computerisation of healthcare, which will allow healthcare providers to coordinate care over the patient, and the patients themselves to feel safe and have quick access to consultations. This is one of the key conclusions of this year’s 25th Economic Forum in Krynica.

As part of the Telemedicine Working Group, we discussed the telemedicine market in Poland, including key regulatory and financial limitations in the perspective of development of telemedicine and e-health in Poland. Unfortunately, the current regulatory environment and institutional framework for telemedicine in Poland are not favourable for this type of activity. Legal regulations have fallen behind the rapidly changing reality and scientific progress. This is why the issue of obstacles for development of telemedicine services has been noticed by Polish healthcare leaders — physicians, politicians and officials. During the panel on “Telemedicine and ehealth. IT revolution in healthcare”, we discussed the need to develop a technical and medical framework and corresponding standards, i.e. the issue of how to treat the patient in the case of individual applications and areas of telemedicine. We need more such discussion in Poland since in this case, development of regulations for telemedicine services is extremely important not only for healthcare providers, but also for patients themselves. After all, it is difficult to imagine the future of medicine and coordinated healthcare without modern consultation methods which enable, among others, continuous supervision over patients. Such solutions effectively improve the patients’ sense of security and the effectiveness of their treatment.

Online availability of experts makes it possible to obtain advice or make an appointment regardless of the time of day or location — we want such possibilities to become a natural tool in healthcare. Therefore, telemedicine not only facilitates access to healthcare, but can also have a positive effect on the patients; on their life expectancy and quality of life. As a part of LUX MED, we have been successfully involved in teleradiology for 5 years, which allows us to make approximately 200,000 descriptions of tests per year. Our patients suffering from chronic diseases can already obtain a prescription without the need for a complete on-site appointment. We enable chats with nurses and physicians as well as online enquiries for the primary doctor right after the appointment. We are also planning to implement videoconsultations develop the so-called second opinion teleconsultations. Therefore, let us try to meet our patients’ needs and take advantage of the developing innovative consultation methods. Being a part of Bupa gives us even more opportunities to use extensive international experience, e.g. thanks to Sanitas in Spain, which successfully utilises a telemedicine patient’s portal. I hope that the dialogue commenced in Krynica will be continued and will allow us to introduce the anticipated changes. •

10/2015 polish market

Medicine

For health and beauty Brines and mineral waters have been used in Poland for medicinal and beauty treatments since at least the 19th century. It was then that the first sanatoria were established and trips to the so-called waters began to be one of the most attractive ways of spending free time. Today, as life goes faster and faster, it is no longer necessary to travel to spa resorts. A number of spa treatments (known also as spa & wellness), often combined with professional medical cosmetic treatments, are available in virtually all major hotels throughout the country. According to KPMG, a consultancy, the market of luxury hotels and spas may soon be worth approx. PLN 1.6 billion. Patryk Mirecki

hile the spa & wellness business is now mostly in private hands, not so long ago sanatoria or hotels offering spa treatments were virtually the state monopoly. It was only after 1990 that, following the decisions of successive governments, the state began to get rid of spa establishments, selling them to private investors. Two examples of the most spectacular makeovers are Nałęczów and Szczawnica. In the latter case, almost the entire village was subject to reprivatisation. The former landholding of Counts Stadnicki became the property of their heirs – the Mańkowski family. However, Poland’s spa & wellness business is made up of hotels scattered throughout the country, though mostly outside the major health resorts.

22 polish market

Zapraszamy do krainy Księżnej Daisy o każdej porze roku na leczenie, rehabilitację i wypoczynek.

REZERWACJE: 74 84 93 236 / 298 74 84 93 130 (24 h/na dobę) marketing@szczawno-jedlina.pl

www.szczawno-jedlina.pl

Medicine Luxury hotels and spas could be worth PLN 1.6 billion According to this year’s fifth edition of KPMG’s report, the Polish market of luxury hotels and spas could be worth as much as PLN 1.6 billion (the global market was estimated by Reuters in 2013 at USD 3.4 trillion). It is one of the fastest growing segments of the luxury goods market in Poland. According to KPMG’s data, in 2014-2017 the value of this segment will grow by as much as one-quarter, exceeding PLN 1.6 billion. Although new hotels of the highest standard can be found throughout the country, it is the Mazovia Region that offers the largest number of five-star facilities. The growing demand for luxury hotels offering spa & wellness services is due to the fact that the population of wealthy Poles – those earning a gross average of more than PLN 7,100 per month – is steadily increasing. At the end of 2014, the figure was close to 880 thousand, and in 2016 it may exceed 1 million for the first time.

The pearl of Polish spas The origins of the spa business can be traced back to the foundation and development of spa resorts. The history of Ciechocinek, the pearl of Polish spas, is closely interwoven with the history of the saline springs and dates back to 1235 when Duke Konrad I Mazowiecki granted a perpetual lease of two salt-works of Słońsk to the Teutonic Order. However, it was not until the 19th century that Ciechocinek grew into a spa. Its most important facilities are now managed by Przedsiębiorstwo Uzdrowisko Ciechocinek SA (PUC), offering classical treatments including: saline baths and pools, mud treatments, inhalations - individual and collective, massage, hydro massage, physiotherapy, mouthwash (periodontal disease) and cryosauna. But Ciechocinek is not only the public (though commercialised) spa company PUC. The annual report by the “Hotelarz” monthly finds that the local Villa Park Med & Spa has undergone a successful revitalisation, combining a modern spa concept with the traditions of Ciechocinek. The spa & wellness area created by Salataris Spa makes use of local sources of brine, offering a brine graduation tower, which is an exact copy of the famous graduation towers in Ciechocinek, brine sauna, steam-salt bathroom and laconium with a natural brine source.

Packages Today’s spa & wellness is no longer only about traditional procedures known for years such as regular drinking mineral water or mud baths. Adding to these are cosmetic medicine treatments, such as massage, body treatments, manicure, pedicure, baths, health treatments, slimming etc. Spa centres in sanatoria and hotels often offer packages composed thematically. For example, for couples, for ladies, for new mums, slimming, relaxing, rejuvenating, for pregnant women and for men. There are also spa packages for seniors or children.

Private spa centres An alternative to public spas are private institutions. In addition to those already mentioned (Nałęczów and Szczawnica), they are located in other health resorts (e.g. Konstancin near Warsaw), hotels in attractive tourist resorts at the seaside (e.g.

24 polish market

Bryza in Jurata) and in the mountains (e.g. Dr. Irena Eris in Polanica and Krynica), in the Masuria Region, as well as in other places, for example Golf & Country Club in Sobienie Królewskie near Warsaw. The report by “Hotelarz” mentions the Vital Spa Village in the Manor House in Chlewiska near Szydłowiec (Świętokrzyskie). The facility takes the form of a Scandinavian settlement with saunas and baths. The report reads: “It is not a luxurious spa complex that is waiting for the guests, but poor huts, in which you take a bath like people hundreds of years ago did. Guests are treated to milk, honey and herbal wraps, camomile and sage infusions and hot hay baths and are provided with willow or birch twigs to rub the body”. It is a sign of a new trend: spa & wellness facilities are focused on a broad range of pro-health procedures.

Nordic walking and bowling The spa hotel in Polanica-Zdrój, one of the three (apart from Krynica-Zdrój and Wzgórza Dylewskie) spa centres branded Dr Irena Eris, offers sports and recreational activities, including instructed fitness classes, swimming lessons, aqua aerobics, squash, tennis, bowling, guided hikes, cycling and nordic walking. The hotel invites its guests to two swimming pools, three Jacuzzis, a sauna and cardio studio. As for Nałęczów, in addition to typical sanatorium treatments, the resort’s spa facilities offer hydrotherapy, physiotherapy, orthopaedic rehabilitation, a gym, a hair salon as well as a cardiac hospital. More traditional services are offered in Szczawnica (Grupa Thermaleo & Uzdrowisko Szczawnica). The visitors of the Mineral Water Spring enjoy the benefits of bicarbonate, sodium, iodine, and bromide waters. Sanatoria and rehabilitation centres perform 42 types of treatments. The spa specialises in treating respiratory diseases, diseases of the musculoskeletal system, i.e. degenerative disorders of the spine and joints. In the treatments afforded to patients, the spa uses its own balneological resources. There is a stud called Rajd in the nearby village of Jaworki, a treat for those who wish to learn horse riding or simply spend time pony-trekking and taking excursions. The services of Hotel Bryza Resort & Spa in Jurata include, the spa area, with relaxing treatments, beauty and rejuvenating massages, a swimming pool complex with poster beds and views of the sea, and the sauna area. Enthusiasts of a more active (and “wellness”) lifestyle are welcome to visit Kormoran Wellness Medical Spa in Rowy near Jurata. Its guests can use free of charge a number of outdoor activities (breathing exercises, fitness classes in the wood, endurance marches, etc.).

More exercises This corresponds to the latest trend encountered in facilities mentioned in the report in “Hotelarz.” Most of hotel investors, rather than contemplating the size of the spa area, are asking themselves what fitness and sports facilities they should have. For example, apart from a traditional spa, the newly opened Hotel Arłamów in the Bieszczady Mountains, has a sports centre available with many playgrounds, sports halls, including a tennis hall, gyms, a fitness room, a climbing wall, firing range, golf course and a ski complex. •

WIHE Hospital – one of the biggest medical fairs in Poland will take place for the third time on 8-10 October this year. Apart from daily meetings of professionals of the world of business, science and medicine, organisers took care of a wide programme, whose strong point are well-known speakers and figures such as Philipe Gerson – deputy president of the French Electrocardiology Association (AFPPE), or Tomasz Lazowski, MD PhD, manager of the I Anaesthesiology and Intensive Care Clinic at the MUW.

Energy

A wide programme and professionals at the International Medical Fair WIHE Hospital

3RD WARSAW INTERNATIONAL HEALTHCARE EXHIBITION

he fair is not only a place for meetings, science and exchange of ideas. It is also a place where business meets science, and medicine meets new technology. This year’s WIHE Hospital fair will house the premiere of a remote multisensory patient monitoring device created by the SiDLY company. Telemedicine and telecare are the main themes which will be used by the participants of the event. The whole wide programme of this year’s fair was planned in such a way that it would combine topics related to current issues of health care with novelties which appear on the market.

Who will we meet at the fair? The honourable guests will be representatives of associations and groups, who are sponsoring the fair and will offer essential support: the Polish Electrocardiology Association, the Polish Medicine Chamber of Commerce, the I Anaesthesiology and Intensive Care Clinic at the MUW, the Main Chamber of Nurses and Midwives, or the Masovian Department of the Polish Anaesthesiology and Intensive Care Association. There will also be present well-known speakers, such as: Andrzej Kuebler, MD PhD, Joanna Heidtman, PhD, Guido Meßthaler and Urs Klipfel, as well as Ryszard Olszanowski – president of the Polish Medicine Chamber of Commerce. The fair will be the meeting place for not only representatives of 100 companies exhibiting at the event, but also directors and managers of state and private medical facilities. The invited guests include medical specialists, nurses, midwives and paramedics, for whom there will be respective thematic blocks and contests.

08-10 OCTOBER 2015 WARSAW | POLAND | FREE ENTRY • • • • •

Find latest technologies in medicine Exchange your professional experience Learn from the industry leaders Share your knowledge Discover telemedicine and e-health sector novelties

PATRONAGE:

Programme in a nutshell The programme of this year’s fair puts emphasis on the topics related to new technologies, e-health and telemedicine. Participants of the conference and workshops accompanied by exquisite speakers will touch upon the themes of different fields of medicine, but also management and financing investments at medical facilities. To take part in the III International Medical Fair WIHE Hospital, you need to sign up at: http://wihehospital.pl/rejestracja-on-line/. Everyone who signs up online will receive a free fair catalogue. •

wihehospital.pl/online-registration 10/2015 polish market 25

Innovation

Technology clusters are a chance for Poland

Specialised Mitutoyo contourograph for detailed measurement and analysis of surface profiles, part of equipment of the Laboratory of Product Shapes and Defects

Prof. Ryszard Pregiel, President of the Polish Chamber of Commerce for High Technology (PIGZT)

ecent years have seen a marked increase in the competitiveness of Poland’s economy and an acceleration of Poland’s economic convergence with EU countries. A distinct measure of these processes is high - compared to other EU countries - economic growth, averaging 4% in 20072013. However, much as it keeps growing, Poland’s economy faces a risk of development drift. To avoid this scenario, it is necessary to change the country’s industry development model from imitative to innovative. In the rankings illustrating innovation of EU countries, Poland continues to receive low scores, inadequate to its economic potential. The Innovation Union Scoreboard (IUS), published in 2014, ranked it 4th from the end. Somewhat comforting is the fact that - despite the low score - it was promoted, compared to the previous year, from the group vulnerable to the group of moderate innovators. In order to change this, the Polish industrial policy for the years 2014-2020 will focus public support on the development of smart specialisations. On the basis of the technology foresight InSight 2030, developed in 2012-2013 by a consortium led by Polish Chamber of Commerce for High Technology (IZTECH), 19 national smart specialisation areas have been identified. Their development, aided by EU

26 polish market

structural funds, is expected to significantly contribute to a major increase in innovation and competitiveness of the Polish industry. One of the tools designed to achieve this objective is creation of industrial clusters bringing together, within particular smart specialisation areas, companies, R&D units and business environment institutions. Economic benefits brought by a well-organised cluster to its members are significant and manifold. The most important of these is the possibility to use a common technology infrastructure as well as laboratory and prototyping facilities. Given the above, the Polish Chamber of Commerce for High Technology initiated the establishment of a cluster operating in the area of 10th National Smart Specialisation “Modern technologies for sourcing, processing and use of natural resources and production of substitutes thereof.” The aim of this cluster is to stimulate supra-regional innovative activity through technology transfer, cooperation development, use of a common technological base, and exchange of knowledge and experience. Alongside 24 companies, the cluster’s members are two leading Polish universities specialising in metal technology – Kraków University of Science and Technology and the University of Rzeszów. The cluster received funds from the EU

Innovation Cohesion Fund under the Operational Programme Innovative Economy, for the construction of a network of laboratories equipped with state-of-the-art appliances to perform research and measurements in keeping with the highest standards. The network covers five laboratories located in manufacturing plants belonging to the cluster members: Laboratory of Coatings is part of ION Galenica Sp. z o.o. located near Rzeszów and provides services in terms testing and manufacturing of metal coatings with nanoscale thickness. Thanks to a relatively low processing temperature (below the heat treating temperature of most steels), preservation of the chemical composition of the coating source material and strict control, in the course of the manufacturing process, of parametres such as hardness, heat resistance, or adhesion, coatings produced in the laboratory have a very wide spectrum of applications - from cutting tools, through molds, to components of car engines. Their major advantage is substantially greater vitality, durability and corrosion resistance of coated tools and components. Metallographic Laboratory is part of the R&D unit of the manufacturing plant GAWEŁ SA in Łąka, Podkarpackie Region, a globally renowned manufacturer of fasteners. It offers metallographic services in terms of testing mechanical and physical properties of new products. The laboratory performs tests for thickness of metal and oxide coatings, microstructure and quantitative composition of particular materials, hardness and thickness of carbonated and hardened layers, creep limit and creep strength, friction coefficient in bolted joints and many others. Laboratory of Product Shapes and Defects is part of the manufacturing plant RST ROZTOCZE SA in Tomaszów Lubelski, specialising in the production of industrial components and accessories. The laboratory provides a wide range of services: testing materials and products for detection and sizing of fissures, testing welds, detecting delaminations and inconsistencies in composites, casts and forgings, testing materials and metal elements for tensile strength, as well contact and contactless shape measurement. Measurement Laboratory belongs to a plant making part of the company PGNiG Technologie in Krosno. It provides specialised services where measurement cannot be done using workshop measuring instruments. In addition, the laboratory performs non-destructive defectoscope testing of welds, ultrasonic testing of welds for discontinuities and sheet metals for delaminations, as well as measurements of sheet metals. Laboratory of ICT Technological Services in Palikówka near Rzeszów provides services in terms of design and simulation of the casting process. The results obtained enable elimination of shrinkage defects, increased yield and optimised tooling. Benefits are substantial, regardless of the type of alloy and casting technology, helping reduce costs at all stages of quality management: from conceptual design to final distribution of components, tooling and prototypes. In addition to the above-described simulation

A specialised device by Oerlikon Metaplas for testing and manufacturing of PVD coatings, part of the equipment of Laboratory of Coatings

ZEISS scanning microscope, part of the equipment of Metallographic Laboratory

services, the laboratory also performs three-dimensional models of moulds that are later used for design-related calculations and simulation of the casting process. Although these laboratories have been operational for a relatively short period of time now, the results achieved so far from using shared technology infrastructure have been instrumental in increasing the innovation and competitiveness of the cluster’s member companies, and boosting the added value contributed by them. •

Photos courtesy of the Metallographic Research Laboratory and the Laboratory of Coatings

10/2015 polish market

Innovation

11th International Symposium “INTELLECTUAL

PROPETY IN INNOVATIVE ECONOMY. RESEARCH-BUSINESSPROFIT-GROWTH: FOSTERING A THRIVING INNOVATION ECOSYSTEM ”

n 3-4 September, Kraków hosted the 11th edition of the international symposium “Intellectual Property in Innovative Economy”, dedicated to building an effective innovation ecosystem. The symposium is organised on the initiative of the Polish Patent Office, under the patronage of the Minister of Economy, in cooperation with the World Intellectual Property Organisation, the Jagiellonian University, Kraków University of Technology, AGH University of Science and Technology, Kielce University of Technology, Wrocław University of Technology, and the Marshal’s Office of the Małopolska Region, with the support of numerous partners. The symposium was attended by Grażyna Henclewska, Undersecretary of State in the Ministry of Economy, who delivered the introductory speech. Jan Krzysztof Kurzydłowski, Director of the National Centre for Research and Development, addressed the current challenges facing the innovation system in Poland. A special message on the occasion of the opening of the symposium was sent by the Małopolska Marshal Marek Sowa. The annual symposium “Intellectual Property in Innovative Economy” covered issues related to the technology transfer from research institutes to industry, the valuation of inventions and the assessment of risks associated with their implementation, the risk management in the field of intellectual property, the role of intellectual property in the business strategies of companies, the processes of commercialisation of technological innovations or the financing of innovative projects. As part of it, panel discussions were held on the practical aspects of intellectual property. The event was attended by over 300 participants, including Polish and foreign academicians, researchers, members of financial institutions, international organisations, foundations and NGOs and public sector entities dealing with developing, financing and implementing innovative solutions. The major axis of this year’s symposium agenda was an in-depth reflection on the efficiency and maturity of the innovation ecosystem in Poland, in the European Union and in the world,

28 polish market

the impact of EU funds on the shaping of the new financial plan, as well the changing role of patents in building competitive advantage in business and science. The presentations and debates of nearly 50 distinguished experts-practitioners from Poland and abroad were accompanied by interactive workshops, devoted to such issues as the valuation of intangible and legal assets in the preliminary stages of investment processes and the development of practical skills in terms of presenting new solutions to potential business partners and investors. Presentations of the delegation from Israel were of particular importance. Asa Kling, Director of the Israel Patent Office and Commissioner for Patents, Designs and Trademarks, spoke of the state as a friendly regulator in the sphere of intellectual property. The presentation was illustrated by a bunch of statistical data showing Israel as a state creating optimal conditions for the use of intellectual property protection in the process of economic development. Nava Swerski Sofer from the NanoIsrael company discussed mechanisms of the formation and development of start-ups in Israel. These represent a significant part of the innovation potential of the country, which spends the world’s highest GDP percentage on research and development. This ratio stands at 4.34 for Israel compared to a mere 0.87 for Poland. The representative of Israel also stressed the important role of cultural factors contributing to the development of innovations, which can be used most effectively in an environment oriented at cooperation and exchange of experiences. Polish participants made an extensive presentation of the national and regional innovation support instruments for the years 20152023. The issue was addressed by experts from the Ministry of Infrastructure and Development, the Industrial Development Agency and the National Centre for Research and Development. These presentations were inspiring from the point of view of the debate on the effectiveness of the transition from research to implementation, on the synergies between the R&D potential and economic potential, on the potential effects of support for domestic

Alicja Adamczak, President of the Polish Patent Office

smart specialisation, as well as on the growing importance of contract research and legal protection of innovative solutions. The debate on the ecosystems supporting start-ups and the stimulation of innovation featured, among others, the experience of Samsung related to the generation of new solutions in the context of the life cycles of particular technologies and products based on them. Diana Wu from the University of California talked about the importance of the proper organisation of higher education in supporting the creativity of gifted students. A particularly important aspect of it is close cooperation between education institutions and large companies that are likely to open up the new scopes of education and specialisation having a prospective nature in a dynamic market environment. The summarizing debate was devoted to the role of entrepreneurs with the professional experience spanning multiple formations of new firms commercialising innovative so• lutions.

Overcoming

Innovation

Cultural Barriers in Chinese Business An interview with Mr. SUN Yingnan, Chief Specialist of International Cooperation, Confucius Institute in Opole and Intercultural Business Consultant

Confucius Institute in Opole offers a postgraduate study in intercultural management focused on Chinese market. Why do you do it? In the last 20 years trading goods dominated the economic relation between Poland and China and it was characterized by significant deficit on Polish side. Among the various reasons that resulted in the unbalanced trade, cultural barrier is perhaps an important one. Polish companies still lack experience and initiative in exporting goods to the “world factory”. To help Polish people overcome cultural barriers in Chinese market, Confucius Institute in Opole opened the post-graduate study “Intercultural Management EU-China”. The course-takers will systematically learn necessary knowledge about Chinese market and business culture to improve their cross-cultural skills. pm

Do you think that Polish companies can be active players in Chinese market? I think that they can. Various changes in the economic life both in China and Poland indicate that economic relation between two countries is entering into a new stage of development. China’s labour cost increases rapidly in recent years and its direct consequence is that the country is becoming the world’s second biggest consumer market. The industrial goods and raw materials, which have occupied a large part of Chinese import until now, will be gradually overtaken by consumer goods and services. Meanwhile, many Polish enterprises, which have accumulated capitals and experiences in European market for two decades, also have gained capabilities to export their products and services into Chinese market. pm

Many Polish companies have made their experiences in importing goods from China.

Can they turn to export Polish goods to China? It is not that easy. Even without having much knowledge of Chinese business culture, Polish importers may get along well with their Chinese suppliers. On the contrary, the exporters will have to face a series of cultural difficulties and they need to have a wealth of knowledge about Chinese market and sophisticated cross-cultural skills. What particular cultural challenges do they have to face? In Chinese business culture, a kind of superior and inferior relationship exists between two business partners and it forms automatically when they begin to talk about a business. The degree of interdependence and the amount of benefit shares will decide who plays the superior role and who plays inferior role in the relationship and to what extent the roles are played. A Polish exporter may have to use the existing Chinese channels to push sale of their goods and services. In such cases, they are often situated in an inferior position. Even though they are politely and friendly treated, they have to spend long time to build relationships and trusts with Chinese importers, government authorities and mediators. They have to break through the established circles and acquire the unspoken branch rules. pm

Can Polish exporters adapt to the business culture? Chinese business culture is a complex hybrid. It is foremost characterized by Chinese traditional cultures, philosophies and religions. In addition to it, being a transition country, Chinese business culture is also imbedded with the characters of both planned economy and western market economy. Polish entrepreneurs and managers must have some knowledge about it pm

when coming into the market, but they don’t have to unconditionally follow it. Do you think that Polish SMEs can be successful in doing export to China? Yes. Not all the SMEs are able to afford the services of international consultancies. In many cases they don’t have to. Polish SMEs, which have successfully sold their products and services to Western Europe, have possessed certain capability and possibility to explore Chinese market. In recent years, Polish government has made a lot of efforts to promote Polish export to China and in the mean time many cities and provinces of both countries have signed partnership agreements. So coordinating frameworks and mechanisms for supporting Polish export to China has been initially established. Export companies should take use of it. The myth to dispel is that only large companies can tackle the China market. It is not true. SMEs can succeed as well and many have. pm

What can your course-takers benefit from the post-graduate study? The purpose of my class, for example, is to help the course-takers overcome the cultural barriers, gain prospect and build confidence. I have worked with German and Polish companies doing export to China for 15 years. Before that I had been an import manager in a large Chinese state import and export corporation in Beijing for years. I would like to share my experiences with my course-takers of the postdiploma study. Following my practice-oriented lecture, they will learn to know the current Chinese business culture, its possible appearance in business connections and negotiations and the ways of ironing out disagreements. For those course-takers who are encountering specific obstacles in their daily businesses, I would help them do analyses and give them advises • for solutions. pm

10/2015 polish market

Economy

POLISH ECONOMIC

SOCIETY

The Polish version of the book will soon be available in the online bookshop of the Polish Economic Society (PTE).

30 polish market

For the full selection of our publications, check www.ksiazkiekonomiczne.pl. Books can be ordered online, in scientiﬁc bookshops, or directly with PTE: 49 Nowy Świat St. 00-042 Warsaw tel.: +48 22 551 54 01 e-mail: zk@pte.pl

Economy

Nation can be wealthy if it is not ethical Prof. Elżbieta Mączyńska, President of the Polish Economic Society (PTE), talks to Ewelina Janczylik-Foryś.

An excellent book by Nobel Prize winner Robert J. Shiller entitled “Finance and the Good Society” will soon appear under the imprint of the PTE publishing house. What is this book about? PTE publishes a series entitled Nobel Prizes in Economics, with a book by a Nobel Prize laureate coming out every year. This year, PTE has published a book by Prof. Robert J. Shiller, a Nobel Prize winner in 2013. I think this book is very important and should be treated as required reading for economists. pm

Why? What prompted Shiller to write the book were opinions voiced about the financial sector in the wake of the global crisis. The sector is accused of being the main culprit. Shiller’s pm

book has at least two goals: firstly, to make opinions about the financial sector more objective and, secondly, to expose the irregularities which led to the crisis. Banks were made fully responsible for the crisis because the collapse of the Lehman Brothers bank is seen as something which triggered the crisis. Shiller writes indirectly about our human behaviour, which influences the approach to the banking sector. The disappointment which came after the crisis made us accuse the financial sector of being the biggest evil of the world. But at the same time, Shiller proves that in many respects the financial sector does deserve this negative opinion. This is why solutions are needed to make it more pm

disciplined. The book shows the functions of the financial sector as the bloodstream of the economy. According to Shiller, the financial sector will continue to expand and more and more new financial services will be needed. This is well visible in the insurance sector. We now insure ourselves against new risks which until recently we did not insure ourselves against. An example is insurance against the risk of losing a job. Shiller says the same will be the case with the financial sector. Life is likely to bring about new needs and forms of financial products. And if life does not bring them about then the financial sector will create them. I agree with Shiller because life is indeed changeable and unpredictable. The financial system will certainly be responding to these changes. However, there indeed 10/2015 polish market

Economy

occurred many irregularities and behaviours far from ethical in the financial system. And Shiller, who is a proponent of behavioural economics, points to them. What is behavioural economics? It is the economics which takes our human weaknesses and behaviours more into account than mainstream economics does. The latter is associated with the neoclassical school of economic thought. Man does not always act rationally, does not always function as homo economicus because emotions and moods rule our behaviour. And Shiller, as a behaviourist, deals to a large extent with ethics. This is why it is worth reading this book because it shows that ethics has a strong influence on economy. The absence of ethical behaviour leads to the erosion of confidence. Polish sociologist Piotr Sztompka shows in his book “Zaufanie. Fundament społeczeństwa” (Confidence. The Foundation of Society) that confidence is necessary in economic development and that it is the foundation of security in daily life. He also shows how negative the consequences of a confidence crisis are for society. If people do not trust each other they tend to think they should deceive someone first so as to prevent that person from deceiving them. And this kills the solid economy. An unethical world undermines the quality of life. And the quality of life depends not only on GDP figures, but also the environment we live in – whether we live under constant stress and, as a result, are unable to be creative and so on. Economists often quote Adam Smith, the “pope of liberalism.” But we do not always remember that Adam Smith was a philosopher and first wrote “The Theory of Moral Sentiments” as a starting point for his book “The Wealth of Nations.” It is clear from the first book that no nation can be wealthy if it is not ethical. Ethics is the indispensable pillar of economy. Every unethical act harms the whole economy and the quality of life. pm

We are holding our conversation on the day when Polish President Andrzej Duda presented guidelines for a law reducing the pensionable age, that is a law restoring the previous age of retirement - 65 years for men and 60 years for women. What is your opinion about this proposal? There are demographic reasons behind raising the age of retirement. And it is doubtful to have different ages for women and men, pm

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For a country to have a strong foundation for development it has to take care of innovation and the development of its own manufacturing.

including terrorists. Maybe the EU should use Australia’s experience. As a prosperous country, Australia is constantly under migration pressure. Australian policy on illegal migrants is very rigorous. No illegal migrant travelling by sea can hope for receiving refugee status in Australia. Such people are transported to distant, closed and rigorous centres outside Australia, mainly in the island republic of Nauru and Papua New Guinea. Their applications for asylum are processed there and then they are either returned to the country from which they started their sea voyage - it is usually Indonesia – or are offered the right to settle in Australia. Such immigrants are helped to get fully assimilated with Australian society. The situation which has emerged proves that Poland still has a long way to go to catch up with Western Europe, despite what politicians say. Poland is treated merely as a stop on the way to Germany. This is not optimistic. The migrants are certainly discouraged by our low wages. We are lagging behind other European countries not only in terms of wages, but also the welfare package and development opportunities in general. A country which has very low wages – and wages in Poland are low compared to Western European countries – cannot have favourable conditions for innovative development. We are becoming an “assembly plant,” a country depending on subcontracts. Meanwhile, these are easily relocated to other countries. As a result, there is no guarantee that we will continue to have jobs. For a country to have a strong foundation for development it has to take care of innovation and the development of its own manufacturing. I do not agree with the economists who say that we should first reach an appropriate GDP level and only then can we afford higher wages. This is a “chicken or the egg” dispute. Low wages cause the primitivization of business. pm

if only because of the constitutional principle of gender equality. Secondly, as I said at the beginning, the draft law reducing the pensionable age goes against demographic trends because we live increasingly long. This is why this solution is doubtful. I think it is valid to raise the age of retirement, but at the same time greater flexibility in the approach to pensions should be possible. What do you mean? If someone has worked for 40 or 35 years and does not want to work longer he or she should have the right to retire, irrespective of how old they are, however, on condition that a shorter working period means a lower pension. But the important thing is the right to choose. pm

Speaking about ethics, the European Union is in crisis. For the time being, it is a worldview and ethical crisis, but it may soon turn into a purely economic one. The European Union’s mistakes and omissions, and the absence of a strategic approach to the problem of migration are emphasized in the discussions which are now going on. In a globalizing world, great migrations will continue and will be intensifying. Migrations are also induced by wars and economic differences in the world. It is a natural thing that people look for better conditions for themselves. At the same time, the EU has to take into account that among the immigrants will be people creating threats of various kind, pm

How to help those who govern. How to stimulate innovation and enhance the competitiveness of Polish enterprises, but not only through low employment costs? This requires defining long-term priorities. We live under the terror of the election cycle. Instead of starting everything anew every four years, we need a long-term strategic approach, with social and economic priori• ties clearly defined and adhered to. pm

Economy

The challenges ahead for the Polish financial system Krzysztof Pietraszkiewicz, President of the Polish Bank Association Increasing the number of bank users in Poland and building the Polish banking potential Despite the fact that the indicators are gradually improving, Poland remains a country with a low number of bank users. Recent initiatives, such as the obligation for financial institutions to offer a current account free of charge are valuable, but the problem is still insufficient economic awareness of the Poles and the shortage of appropriate instruments to shape behaviours. This results, among others, in the lack of knowledge on opportunities arising from the use of banking services. It is particularly unfortunate that people are not convinced to long-term saving and investing their capital in safe banking products.

Supporting SMEs, development of new forms of financing The figures show that small and mediumsized enterprises (SMEs) have been one of the underlying factors of Poland’s dynamic economic development in recent years. Although banks are already now the primary source of external financing, still few entrepreneurs use them, relying mainly on their own assets and reserves. The ratio of corporate loans to GDP, which illustrates the level of corporate financing by the banking sector, stands in Poland at 16%, while the EU average is 37%. However, according to data of the Polish Financial Supervisory Authority (KNF) and the National Bank of Poland (NBP), it is in the SME sector that the loan demand has increased over the last few months and is set to further grow once the new EU programmes get kick-started next year. Maintaining this trend, by creating a new line of corporate financing products coupled with relevant advisory services dedicated to SMEs, remains one of the major challenges facing the financial sector, the SME sector itself and the state.

Housing financing Poland’s housing policy has for many years suffered from a lack of a long-term development strategy and an effective financing stabilisation programme. Adding to this is the already low, and further declining, level of individual consumer savings which, given the Recommendation S, providing for capital contributions to increase by 2017 to the level of 20% of the value of the loan, may cause a gridlock in the housing sector. Hence, there is an urgent need to reasonably design a whole package of relevant measures, including, among others, mortgage bonds (now offered in Poland only by mortgage banks) and a long-term residential saving scheme, e.g. involving building societies, which successfully operate in many countries of Central Europe.

The role of banks in the process of absorption of EU funds Under the ongoing (2014-2020) EU financial plan, more than EUR 200 billion will be available for Polish taxpayers both in the framework of the Polish state and EU programmes. Successful acquisition of these funds will not be possible without the support of banks. The scope of their activity will largely depend on the national regulator. Based on the experience of the previous financial period, banks rely on regulators, both at the EU and national levels, to ensure that commercial and cooperative banks benefit from equal treatment and non-discrimination in competitions for managers or agents of the new financial instruments. Banks are there to serve the consumers and the economy, and therefore, they should, by definition, be involved in facilitating their financial dealings. This relationship must, however, be based on the principles that are economically viable for both parties.

Economic education and financial competence building One of the biggest challenges facing not least the financial sector is raising consumers’ economic awareness and their understanding of modern banking. There is much to be done here in the context of long-term saving, which remains fundamental from the point of view of financing economic development and yet is still not widespread. Moreover, consumers must be not only shown but also explained the various available methods of financing. Naturally, this must go together with a fair and balanced offer from banks as well as the efficient issuance systems of bonds, for example bank bonds. Another factor instrumental in financing economic development will be appropriate knowledge in terms of risk management, with particular focus on mutual engagement in the system of guarantees and suretyships. As far as economic education is concerned, emphasis should also be put on modern settlements, which greatly improve the circulation of money and contribute to increasing the performance of the entire economy.

Security of electronic banking The Polish banking sector is one of the most developed ones in the world. Also Internet and mobile banking security systems used by Polish banks are among the most advanced and most modern, well ahead of the technological developments promoted in Britain, Italy, or the United States. This is thanks to the sector’s vast investment in the security of banking services. It should be remembered, however, that this modernisation process is still under way, and maintaining a high level of security requires a considerable organisational and financial effort. •

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Economy

Protection

of retail borrowers Prof. Małgorzata Zaleska, Director of the Institute of Banking, Warsaw School of Economics (SGH), and Vice-President of the Committee on Financial Sciences, Polish Academy of Sciences (PAN)

and rescission of the agreement. As for the KNF, it recommends that the client should receive all the information necessary to evaluate the risks and costs associated with the loan agreement. Furthermore, the maximum ratio of debt amount to the property value should not exceed 90% and as of 2017 80%. In addition, banks should recommend retail clients the repayment period not longer than 25 years. Last summer, after long and painstaking work, the parliament was able to adopt the so-called Anti-Payday Law. The primary purpose of the bill is to reduce the cost of consumer credit by introducing, i.a.: •

rom year to year, as part of institutional arrangements, attempts are made to increase the protection for consumers-borrowers so that they do not get excessively indebted. Previously, regulations used to put an emphasis on reducing the risks incurred by banks and protecting depositors. The Polish legislation includes several regulations aimed at protecting borrowers. The most important of these are the Consumer Credit Act and the Polish Financial Supervision Authority’s (KNF) recommendations on retail credit exposure and mortgage loan exposure. The above-mentioned Consumer Credit Act provides for, among others, the obligation to inform the client about the amount of annual percentage rate of charge the possibility of loan repayment before maturity

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•

the maximum default interest equal to 6 times the central bank’s lombard rate (i.e. 15% as at September 2015); the maximum amount of non-interest consumer credit costs, which must not exceed 25% of the total loan amount and 30% of the total loan per annum; the rule that fees and other costs paid by the consumer prior to the conclusion of a consumer credit agreement shall be promptly refunded if the agreement has not been concluded or if the loan amount has not been paid by the lender within the time limit specified in the agreement.

Despite the above-mentioned legal provisions being in force, borrowers still get into trouble. The most pertinent example is the problem of those who have taken home loans denominated in the swiss franc. So why is that? The reason is complex and multi-faceted. Firstly, lenders (including banks and loan firms) are greedy, oriented at generating the

highest possible profits. It also happens that they do not pay due attention to providing the clients with fair and transparent information about the financial products offered and the risks involved. Secondly, it should be noted that legal regulations are not able to fully protect borrowers because they are not perfect. For example, the new consumer protection rules provided for under the Anti-Payday Law are completely unreadable and incomprehensible to a potential consumer. The clients of the very few loan firms that meet the statutory requirements will be adequately protected without even being aware of it, while the other borrowers will end up confined to the gray market with no anti-usury protection. Thirdly, the majority of Poles believe they have poor understanding of economy, including finances. At the same time, there is a clear relationship between the declared level of economic and financial knowledge and education, age and place of residence. Moreover, the level of economic knowledge is strongly intertwined with the degree of financial inclusion. Meanwhile, a relatively large number of Poles are financially excluded, which means that they do not use any financial services and often do not even know how to start using such services. “Uneducated” clients are therefore easy prey to lenders, as opposed to “educated” clients who are challenging partners, able to make financial decisions consciously. In summary, it is necessary to further improve legislation, especially as regards transparency and fairness in providing clients with information about the risks accompanying financial products, and to popularise financial knowledge in accessible and attractive ways and at all levels of education, starting from • primary school.

Economy

Will we get our pensions?

The impact of the demographic and economic crises on the pension systems in Europe

he 25th Economic Forum in Krynica Zdroj was a venue, on 10 September, for a panel discussing the impact of the demographic and economic crises on pension benefits. The debate’s host and moderator was Błażej Grabowski, Vice-President of Oficyna Wydawnicza Rynek Polski – the publisher of “Polish Market”. Among the speakers were: Wiktor Adamus, Head of the Department of Quantitative Methods and Rector of the Higher School of Insurance in Kraków, Poland, József Mészáros, Director General, Central Administration of National Pension Insurance, Hungary, and Peter Nowak, Senior Account Manager, BKK VBU Health Fund, Germany. Financial experts have been repeatedly warning that the pension system is at risk of collapse. Due to a persisting decrease in the birth rate state budget revenues are too low to guarantee decent pensions for future generations. Can we still rely on the state to manage our finances effectively? What must be done in order to improve the pension system? These questions were tackled by the panelists. The replacement rate represents a ratio of a pension to a salary, i.e. the amount of the first pension you will get to your last salary. It follows that the higher the replacement rate, the better for the future pensioner. Meanwhile, according to OECD data, the replacement rate projected for Poland stands at about 61%, down by 7% compared to when the pension reform was put in place in 1999. According to estimates by economists, the replacement rate for young people now entering the job market will be around 40%. The most pessimistic forecasts even speak of 30%. In Germany, the figure stands now at 55%, while Hungary is at the other end of the scale with the replacement rate of 94.5% Commenting on these data, József Mészáros indicated that Hungary has one of the largest pension contributions in Europe, almost 50% higher than Germany, which is why it came out so well. Hungary counts nearly 10 million people, of which 4.2 million pay pension contributions. Hence such a high pension insurance rate. When he came into power in 2010, Viktor Orbán was up against very serious problems, e.g. soaring rates of public debt and unemployment. A reform of the second pillar was urgently needed. In practice, the second pillar was done away with.

Peter Nowak spoke about a low 55% replacement rate in Germany: “As I see it, 55% is net of tax. It should be considered that Germany’s pension system has been through a transitional period since 2001. Changes are made to the financing of contributions and tax applicable to pensions. Currently, tax is charged tax on 70% of the pension. The minimum amount subject to withdrawals is EUR 1,191. It means a very high personal allowance. The question should be asked about the basic amount for calculating this 55% threshold. In Germany, the living standard and average income are very high. The living costs in Germany, last year, were only 1.5% more than the EU average, so this 55% - a disposable income of a German pensioner - is in fact much greater than in the case of a Hungarian pensioner. In addition, we have a highly developed social welfare system that supports people with lowest incomes. Private health care, which is commonplace in Poland, virtually does not exist in Germany. All patients are served by insurance funds. Someone with a low income has their treatment costs reduced. The pension is proportional to the level of their pre-retirement earnings. If the pension is low, a social welfare benefit can be sought. Furthermore, given the average earnings in Germany, people who have just retired usually own an apartment and have savings.” Prof. Wiktor Adamus addressed the factors influencing the amount of pensions: “The most important factor determining the amount of the pension is demographics, especially the fertility rate. Europe is ageing at an incredible pace. The fertility rate in Poland is about 1.4, which is similar to Germany and other Western European countries. The generation of “millennials” aged 18-35 have good reason to be worried about their pensions. There are different ways to improve the fertility rate, e.g. extending maternity leave and increasing child allowance. Poles live longer, with their life expectancy rising by approx. two months per year. If this trend continues, in 2035 there will be two working persons for one pensioner, now the ratio is four. And if nothing changes over another twenty years, we will face a drama one working person for one pensioner. Who will pay premiums for these pensioners then? On the other hand, pensions are also influenced by economic indicators, especially GDP and unemployment.” •

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Economy

Employee Pension Schemes as a part of CSR strategies of Polish companies Ewa Małyszko, President of the Management Board, PKO BP Bankowy PTE

The public awareness of the fact that employers can set up Employee Pension Schemes (EPSs) under the third pillar of the pension systemis low, and the number of active EPSs is even lower. Initiative is lacking on the side of both employees and employers. Employee Pension Schemes, so popular in Western countries, are still a great unknown in Poland, while they can bring major benefits, also in terms of corporate social responsibility.

o-financed by employers and employees, Employee Pension Schemes, such as employee pension funds and employee investment funds, group life insurance with an insurance capital fund, or programmes run by foreign institutions, represent a variety of forms of collective pension savings. In the United States and in many western European countries, employee savings programmes are a major component of the pension system. At the same time, it is worth noting that each of the three pillars is in most cases developed in such a way as to comprise the elements of the other, a successful example of which is Finland. As a result, with the harmonious cooperation between the state, employers and employees, pension savings allow you to live decently in sunset years of life. While only slightly over 5% of Poles use Individual Pension Accounts (IKE) and Individual Pension Insurance Accounts (IKZE), which are voluntary individual saving forms, longterm group saving forms are even less popular, with a mere 2.3% of users.

Postponed benefits The adjective “employee” conjures associations with benefits, but it also carries a particular semantic load in Poland. Before 1989, employers would offer non-monetary compensation by funding holidays, flats, or shopping vouchers for basic products. This was in direct relationship with the nature of the then political regime, which is why the link between benefits, traditionally considered to be within the domain of the state, and the open labour market is now not evident to everyone. Meanwhile, although the Polish capital market is relatively young, the burden of social responsibility is gradually shifting from the state to private employers. Today benefits take the form of private medical insurance, discounted gym

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membership, cinema and theatre tickets, and other similar bonuses, aiming to build the socially responsible image of the employer, one committed to life-work balance and enjoying a good opinion on the labour market. But why is there no room for the EPSs?

The present condition of EPSs According to the Polish Financial Supervision Authority (KNF), there were 1,064 Employee Pension Schemes at the end of 2014. In order to interpret the figure properly, suffice it to mention the US, where there are over 650,000 such programmes. Polish employers and employees pay compulsory monthly social insurance contributions in equal parts of 9.76% each. The amount of the voluntary premiums paid under the scheme adopted results from the agreement, but must not exceed 7% of gross monthly wages. And although the schemes are eligible for tax relief, employers do not always consider it reasonable to increase their costs, while employees still prefer short-term benefits rather than long-term forms of pension insurance.

What is the scope of CSR? There are different reasons why the interest in EPSs is poor among Poles. An important, and perhaps, as experts unanimously suggest, the most important one is the lack of the saving culture and the lack of awareness of what the third pillar exactly is and how the pension system functions. But that is not all – for employers to be willing to bear the additional cost, they need more incentives from the legislature. Evidently, they will not decide to set up an EPS unless they find it profitable in terms of human resources as far as it helps attract and retain skilled staff, as well as motivate them to work more efficiently. EPSs can therefore be an effective compensation instrument, similar to popular benefits, while also building a positive corporate image based on the highest standards

of business conduct. CSR practices are booming in Poland to the point they can safely be referred to as standards (very good standards, I should add). Therefore, it is necessary to raise public awareness and wait for these practices to come to mean responsibility for the security of pension benefits in the face of a dangerously declining replacement rate. So far, the companies running EPSs, do not make a sufficient use of it in the context of the CSR communication.

Pension benefits are more important than sports tournaments With the proliferation of unwritten CSR directives, more and more companies decide to support sports and cultural events, as well as environmental protection and charity, yet the number of EPSs is slowly decreasing. Meanwhile, the replacement rate for today’s generation of thirty-somethings risks to drop to 3040%, which means that their monthly pensions will be worth less than half the current salaries. Ethically speaking, ensuring that people live decently in old age is more creditable as an attitude than sponsoring a single social, not infrequently commercial, initiative. Do employers introducing Employee Pension Schemes run any risk? The answer is “no.” EPSs operate flexibly, and employee savings can be transferred at no cost to IKE or IKZE in case of withdrawal from the scheme. It is true that the stock market situation affects the rate of return on investment, but in case of long-term savings a high profit cannot be ruled out. Savers approaching retirement age have a possibility to transfer their savings and resort to lower-risk instruments. The money saved in the framework of the EPSs has a privileged tax status, employees get additional pension insurance, probably greater than the state allowance, and employers reaps CSR benefits, perhaps even more – they contribute to bringing the Polish market closer to Western standards. •

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Defence Sector

The rd International Defence Industry Exhibition (MSPO) has beaten new records 568 exhibitors from 30 countries and over 27,000 sq. m. of exhibition area. The 23rd edition of the International Defence Industry Exhibition, which took place on 1-4 September on the premises of Kielce Trade Fair, has beaten new records. The Expo was attended by President Andrzej Duda and official delegations from 58 countries.

he International Defence Industry Exhibition is the third largest military exhibition in Europe after Paris and London. It owes its position to its exhibitors - the leading defence industry players, such as Lockheed Martin, Boeing, Bae Systems, Raytheon, General Dynamics, Finmeccanica, Thales, Mbda. This year’s MSPO agenda was visited by the President Andrzej Duda, who awarded the product which best serves the purpose of safety enhancement of the Polish soldiers. The Polish President’s Statuette went to the consortium composed of Huta Stalowa Wola SA (the leader) and WB Elektronic SA (consortium member) for remotely controlled turret system with PPK SPIKE integrated rocket launcher for APC Rosomak. In his speech, President Duda spoke of

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the importance of defence industry development and highlighted the role of MSPO in it. “Defence is the economy sector of utmost importance. The Polish defence industry is having an opportunity for revival. We have a chance to draw upon our best traditions. I would like to congratulate MSPO’s President Andrzej Mochoń, for the Expo is a tremendous success, which I am personally proud of. Looking at its infrastructure, organisation and the products on display, I am inspired with optimism and pride,” said President Andrzej Duda. Since 2004, MSPO has been traditionally accompanied by National Exhibitions, organised so far by Germany, France, Israel, the US, the Visegrad Group countries, Britain, Italy

Defence Sector and Turkey. This year, it was Norway’s turn with a dozen exhibitors demonstrating the country’s military potential. Norway’s Defence Minister, who spoke during the opening ceremony, stressed the importance of cooperation between Poland and Norway, but also that of the International Defence Industry Exhibition itself. “Relations between our countries are ever deepening. The geopolitical reality requires strong cooperation between the NATO countries. Today we have an opportunity to present the offer of several Norwegian companies of the defence sector and talk about the future projects. The International Defence Industry Exhibition is one of the most important events of its kind in the world, therefore a great place to show what we have to offer. It is an honour for me to attend an event with such a great and constantly growing potential,” said Ine Eriksen Soereide. It is also worth mentioning the seminar “Poland and Norway – a Strong Partnership in Defence, Industry and Technology: Past, Present and Future”, organised by the Ministry of Defence of Norway and chaired by Norway’s Deputy Minister of Defence Øystein Bo. In a recent interview with “Polish Market”, Andrzej Mochoń, President of Kielce Trade Fair, MSPO’s organiser, said: “Not long ago, Polish companies produced Soviet-licensed military equipment and strived to gain a competitive advantage with it. There is no denying that it could be successfully done only on distant Asian markets. We competed with manufacturers from the Czech Republic, Ukraine and Russia. It was not the most modern armament, it were not sophisticated solutions. Today, it is different. The role of the MSPO fair is also to allow officers to make familiar with the offer of Polish armament companies. I mean, where else if not here the officers can see the

stuff? At the world fair? To cut costs, only delegations composed of the minister and a few generals are sent there. An average Polish officer, not to mention an ordinary soldier, cannot even dream of it. He can draw knowledge of modern solutions offered to the army at most from the specialised press. MSPO is actually the only place for the Polish Army to see its dreams, but also the only place where the Polish armament industry is shown to the world as a specific product offering. Of course, Polish companies do show themselves at trade fairs abroad but, due to logistics cost, more in the form of leaflets.” During this year’s MSPO, the companies of the Polish Armaments Group (PGZ) signed a number of lucrative defence contracts with international partners such as Saab and Boeing. Cooperation sealed in Kielce is promising in business, but also means a lasting partnership and access to technologies. Turkey’s presence at MSPO was strongly marked, too. For example, Roketsan signed a cooperation agreement with Wojskowe Zakłady Lotnicze (WZL) Łódź and Mesko. The latter also announced joint initiatives with Turkish TAI and American ORBITAK ATK. On the second day of the Expo a conference was held regarding Polish-Ukrainian cooperation between Lubawa SA and Ukroboronprom. There is one more reason why this year’s MSPO enjoyed such a great success. Exhibitors wanted to win favours of the Defence Ministry in connection with the 14 programmes of modernisation of the Polish army. The Expo was indeed an excellent opportunity to showcase their products and solutions which could alone, or in cooperation with PGZ, • bid for specific programmes.

Photos: Targi Kielce/ Kielce Trade Fair

10/2015 polish market

Defence Sector

Keyboard has become A Kala shnikov of the 21st century Prof. Mariusz Figurski, Deputy Rector for Development, Military University of Technology, talks to Marcin Haber on cooperation with the Polish Armaments Group, on cybersecurity and new trends in education. The Military University of Technology (WAT) will take part, together with the Polish Armaments Group (PGZ), in the implementation of the offset. Who exactly are you going to cooperate with? The Polish Armaments Group is our strategic partner when it comes to the implementation of various projects. We have cooperated with companies belonging to PGZ for many years. This cooperation is based on projects or tasks commissioned by the Ministry of Defence. The offset we are talking about is a technology offset. We have to be prepared to make the most of it. We are able to handle such an offset through cooperation between the engineers from PGZ companies and WAT scientists specializsng in various fields. We have vast experience in this respect, as evidenced by the title of “Defence Sector’s Best Offsetee” for the Military University of Technology we were conferred upon a few weeks ago in recognition of WAT’s commitment to the implementation of offset obligations under an agreement between the State Treasury and Harris Corporation. The Polish Armaments Group has a new development strategy with very ambitious plans, like for example in the field of space technologies. The space sector, being one of the important elements of Poland’s economic development both in the military and civilian areas, should be a priority one in the coming years. The Polish Armaments Group is perfectly aware of it and therefore wants to develop projects in this area. Of course, we are not able to pursue such projects alone, because Poland’s space sector is virtually non-existent pm

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as yet. However, we can catch up by collaborating with experienced partners operating on the international space market, such as Airbus, Thales, ADS or others, including from the armaments sector. Such a cooperation we can earn us vast competencies. Some of the technologies have been already put to use, but in many cases they require upgrading. Poland manufactures multiple components for space technologies. Now it is about integrating these projects and building new competencies on that basis. Perhaps the near future will see the launch of the first space programmes that stimulate this market. Then, it will be possible to develop these competencies using the knowledge of specialists from PGZ companies and researchers from WAT. The Military University of Technology will a team leader of the feasibility study for the first Polish electro-optical satellite for Earth observation. Competencies connected with the market situation and opportunities of the armaments have been already built. We know what is missing and what elements can be introduced as technologies. As I said, many of these technologies are already in use, but they need adjusting. A number of technology institutes and enterprises are carrying out projects commissioned by the European Space Agency and other organisations dealing with space technologies in Europe. The Polish Armaments Group does not forget, either, about its mission in the military sphere, which is after all the principal domain of PGZ companies. However, these technologies should be considered as dual-purpose technologies, suitable for use also in the national economy.

Such an approach automatically increases the number of potential recipients of these technologies. Given WAT’s experience in dual-use technologies, we wish to cooperate with Polish Armaments Group in this field, too. The advantage of it is that the projects will be evaluated from the very beginning in the context of their market implementation. At the stage of development we will have the potential recipients of the product pre-selected. If we fail to list the potential recipients within the area initially assumed, we will think of creating demand for the product. These are practical ways to stimulate the market used by global corporations. However, in order to be able to develop such technologies close cooperation between engineers and scientists is a must. Otherwise, I am afraid it will be extremely difficult to implement. A means to achieve the desired results can be shared laboratories and formation of PGZ and WAT joint ventures, which would guide the development of particular technologies. In which of the 14 Polish army modernisation programmes, announced by the Ministry of Defence, does the Military University of Technology participate? In all. It is not that some of the are preferred. It is because we were involved in framing these areas of technology development, as they resulted from our experience, research and projects carried out in cooperation with various businesses. It is not only about PGZ companies, but also other ones operating on that market. Therefore, we are trying to get involved in all programmes and shape development policies pm

Defence Sector

In recent times, cybersecurity has finally come to receive more attention. How does the Ministry of Defence see the problem? At WAT we perfectly know that developing the area of cyber security is essential. We do realise that what has been going on in cyberspace is a regular war. Perhaps different than in the battlefield, because it is no longer soldiers armed to the teeth who inspire fear but hackers armed with keyboards. At WAT alone, a number of intrusions to IT systems are registered throughout the day. Cybersecurity is such a sensitive issue that, in my opinion, we should not speak too much about details. There are issues that should be tackled by as few people as possible. This reduces the risk of undesirable leaks. The armies around the world are hiring hackers, a kind of cybersoldiers, to be able to solve problems and come up with countermeasures. The keyboard has become a Kalashnikov of the 21st century. You can make a hell of a mess without even moving from your place.

Photo: Łukasz Giersz

of the research teams so as to cover all these areas. We specialise in defence. At this point, it is worth recalling that the Modular Firearm System MSBS-5.56 assault rifle in classic version with a suspended RPG launcher and a knife-bayonet, which is the result of close cooperation between WAT and weapons factory “Łucznik” - Radom (FB Radom), won the prestigious DEFENDER prize at the International Defence Industry Exhibition Kielce in 2015. This weapon uses world’s unique solutions protected by patents and represents the backbone of 5.56 Modular Weapon System (MSBS-5.56). Similarly, we will try to build up competencies in the area of space technologies, but the defence sector will remain our top priority. I cannot imagine a different scenario because we are a military-civilian university, and our general recipient is the Ministry of Defence and the defence sector. We need to keep up our profile, because we feel responsible for the development of military technologies in Poland. We are trying to bring together around us all the stakeholders who are keen on developing these technologies than buying them. Obviously, it is impossible to avoid buying some solutions, but we have to minimise it. Otherwise, we will have a situation where we only be recipients of technologies and we will not be capable to roll out own innovations and solutions.

We want our students to go beyond theory and see how it works in business.

Does WAT develop cybersecurity solutions for Poland? Yes it does. We implement solutions in the form of algorithms and technologies. Implementation lies within the competence of pm

other institutions, for example the National Cryptology Centre. You have to remember that work on such tasks should not be conducted in one place but dispersed. Any integration is dangerous here. The destruction of such an integrated facility would cause a total paralysis of the security system. Do the new development policy of the Polish army, 2% of GDP on armaments, and cybersecurity prompt the creation of new majors and influence the curricula at the Military University of Technology? As a technology university, we educate staff for the military, but also for the economy, so we need to look at what is going on in the Polish army, but also at what the market situation. Thus, we are able to introduce modern majors and train engineers leading Europe’s rankings. This requires making very serious decisions as to the amount of majors and making sure that the existing ones are still needed. This year, we have launched two new majors - cryptology and cybersecurity, where professionals will be trained for the needs of the pm

Ministry of Defence and the national economy. Such specialists are needed in most public institutions. We have mobility programmes with technology universities in Łódź and Warsaw. As part of this cooperation, students change university after each semester. This increases the level of education of students in different areas of specialisation. Another study course opened this year is cosmic and satellite engineering, because we cannot develop the space sector without space engineers. We focused on quality, not quantity. A little risky, but we opted for a group of about 20 people. The assumption is that students do internships in the institutions of the sector. The study course was created based on the experience of WAT, as well as the Space Research Centre (CBK). In creating a new majors, we are far from confining to our own resources, but we look at where the best resources can be found in Poland. That is the only way to train the best specialists. Also we do not rule out international cooperation. We also use the experience of the Institute of Aviation and the companies that we cooperate with Creotech Instruments, Asseco Poland, Vasco, or Comarch. We want our students to go beyond theory and see how it works in business. We would also like to give our students something new, something which, in my opinion, engineering graduates fall short of - the ability to move in business. It is important to teach them business basics, because some of them will want to set up their own firms. It is still missing. I want to do something like that in cooperation with UKSW, Koźminski University and Łazarski University. This will help us prepare students for the future, give them • added value. 10/2015 polish market

ICT

The Regional Warning System – making use of modern technologies With the country’s almost 100% coverage with TV signal, widespread access to mobile telephony and the Internet, the Regional Warning System is now the most effective tool of its kind in Europe when it comes to the ability to reach the largest possible number of citizens. Andrzej Halicki, Minister of Administration and Digitization What is the Regional Warning System (RSO) and how does it work? The Regional Warning System, a project of the Ministry of Administration and Digitisation, carried out in cooperation with Polish Television, is a service intended to warn people of potential threats, launched on 1 January throughout the country. In order to get our message across in a comprehensive manner, we use different communications channels - TV, websites, mobile applications and SMS. RSO is a tool in the hands of regional governors. It is thanks to their services that the system is supplied with the content that, upon activation in RSO, appear on the websites of regional offices, TV channels of Polish Television and mobile applications. Our aim was in fact to make the system as close to the citizen as possible. Therefore, it was implemented at a regional level and warnings are of regional nature. These include meteorological and hydrological warnings that are generated in the system thanks to the cooperation of the Institute of Meteorology and Water Management (IMGW). RSO contains also other local information. Information is regionalised, which means that, e.g. a TV set user in Wielkopolska will have access to communications concerning the region once he or she turns on the Regional TVP (TVP Poznan). In order to know what messages are generated in all regions it is enough to turn on one of the other Polish Television channels in digital terrestrial multiplex MUX-3: TVP 1, TVP 2, TVP Info, TVP Kultura, TVP Polonia, TVP Historia, TVP Rozrywka. In its television component, RSO is available in three modes: Teletext, hybrid

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TV and the news bar on the TV screen (DVB bar). The latter option is reserved for warnings having the highest priority. The Regional Warning System is also addressed to people using new technologies in their everyday work. For them, mobile applications have been designed for the three most common operating systems: Android, iOS and Windows Phone. We are constantly upgrading and adapting this RSO functionality so it best meets the needs of citizens, but already today every user can decide whether he or she wants to be notified of a new incoming message (“push”) and is free to configure the application in such a way as to receive all or selected pieces of information from all, some or only one region. For example, the mobile application offers a possibility to obtain traffic information only from Lower Silesia, but also all the information generated throughout the country. In the case of a serious risk, in exceptional cases, like a flood, the alert will be sent via SMS to all mobile users. This is possible thanks to an agreement between the Ministry of Administration and Digitisation and telecom operators (Orange, Play, Plus and TMobile), which offered free-of-charge transmission of such messages. The Regional Warning System has also an educational asset, since it serves as a channel distributing guidelines on how to deal with crisis situations. There are 19 such guidelines pertaining to issues such as storms and tempests, hurricanes, floods (before, during and after), heatwaves, winter; safe holidays; bomb alarms; dangerous consignment; unexploded ordnances; first aid. Some of the guidelines (e.g. flood, fire, important information)

contain also indications regarding emergence evacuation behaviours. Since 1 January 2015, the Regional Warning System has generated over 2,500 notifications and more than 550 alerts. By the end of July, the RSO mobile application has had almost 270 thousand downloads. The messages transmitted by the system were primarily meteorological warnings (e.g. storms, heatwaves, strong winds, icing), hydrological warnings (e.g. water levels), traffic information (e.g. accidents, traffic jams, repairs, detours) and other issues of relevance from the point of view security.

Development of the system, plans for the future, statistics The Regional Warning System is being constantly upgraded. The project is gradually joined by the new operators, which declare they will supply the system with content. Most recently (17 August 2015), the Volunteer Mountain Rescue Service (GOPR) has been RSO’s new stakeholder. We were keen on its joining RSO because the existing functionality was not focused at transmitting messages about mountains, and walking in the mountains poses a potential threat to life and health. We want the Regional Warning System to be a tool serving primarily the local community. Therefore, we are planning to launch a pilot service dedicated to the residents and visitors to Warsaw. We are also holding advanced negotiations with Polish Television on the implementation of new RSO functionalities, including within the television component. •

Threats, risks, problems and constraints in the implementation of cybersecurity

Energy

Michał Kurek, Director in the Cyber Security Department at EY is a Leader of the EY Advanced Security Centre, which is a competency centre for technical aspects of IT security in Central and South-Eastern Europe.

The pace of changes taking place in business, new products, mergers and acquisitions, market expansion or new technologies has a direct effect on cybersecurity. With the widespread use of computers, internet, mobile applications, cloud computing, corporate data that are available to employees 24/7. The denser the network of connections between devices, the easier cyber criminals can hack them. Critical infrastructure and industrial control systems are also subject to risks which until recently operated in isolated environments, sheltered from hacker attacks or viruses.

n its 17th Global Information Security Survey (GISS) EY asked 1,825 companies worldwide, including in Poland, about cybersecurity. Questions were related to security, hacking, attacks, vulnerabilities, responding to attacks, technical and applied process security measures, approach to security and cybersecurity awareness.

Ensuring IT security is a challenge! The GISS indicates that ensuring cybersecurity is an increasingly tough challenge, given an ever-growing scale of threats. Traditionally, it is insiders who were considered to be the biggest threat and a potential source of attack. While it still holds true, some respondents point out external threats of criminal organisations. Moreover, according to the companies surveyed, external risks are overall greater than internal ones. If you take into account a scenario in which an employee can be both a criminal and a spy hired by you competitor, or a foreign country, it looks as if you need to be on guard. So cyber attacks have become the biggest threat to doing business – aimed either to steal financial data, or to harm the company’s reputation and operations, or else to steal intellectual property. It is worth remembering that five of the ten largest data leaks in history occurred

in 2013 and 2014. The US Center for Strategic and International Studies estimates that data and copyright theft cost the global economy between USD 375 and USD 575 billion per year. Threats are usually targeted at the weakest points of a company. These are mostly insouciant or unaware employees, because the weakest link in the security system is always man. On the other hand, outdated security mechanisms which fail to keep up with changes in business environment and therefore in technologies (cloud computing, mobile devices, social media) are at fault too.

Approaches to security: Activation, Adaptation, Anticipation In order to effectively fight cybercrime, despite restrictions within the organisation and an increasing amount of external risks, you need to get ahead of it. The only approach to security identified by EY among the companies surveyed is a proactive one - Anticipation. Two others: Activation (static) and Adaptation (dynamic) often prove to be insufficient, lagging behind threats. The first model - Activation - is based on a reactive approach to cybersecurity, which is seen as a cost necessary for the functioning of the organisation. The company is aware of cyber

threats, but any security measures are typically implemented following incidents or benchmarking with competitors. In the second model - Adaptation - security becomes integrated with the company’s business goals and the company itself starts to be involved in cybersecurity decision-making. As a result, tools such as risk analysis come into play and the focus is on securing the ever-changing IT environment. It is still not sufficient, yet at least dynamic approach to cybersecurity. The supreme, preferred model - Anticipation - is the only really proactive one. Companies using it strive to get ahead of cybercrime, and teams dedicated to monitor risks (i.e. Security Operations Centers) are able to anticipate cyber attacks and implement appropriate security measures to contain them. Cyber security is seen to be of key importance to the company’s business, and activities in this area are focused on the future IT environment. The development of new technologies is changing working environment, and in a few years’ time we will be facing a real revolution. In 2020, half of the employees will belong to generations Y and Z, born and grown up surrounded by digital technologies, and cyber threats will surge with the dominance of the Digital Generation . Hence, it is essential to build IT security awareness already today. • 10/2015 polish market

ICT

Threats have moved onto the web

Andrzej Tymecki, Vice-President of Exatel, talks about the progress of digital infrastructure in Poland, cybersecurity and how the way businesses and politicians perceive the problem has changed. To begin with, I would like to find out what the state of development of the broadband Internet in Poland really is. It has been a few years since the Ministry of Administration and Digitisation made it a priority to remove the so-called white spots. Certainly, Poland has made a huge digitisation leap over the last years. Paradoxically, it might be of considerable importance for this development that in the 1980s and 1990s we were deeply backward in this respect. While catching up, we have implemented a lot of new technologies and we have started building modern networks. For example, this year Poland will finish spending funds earmarked for building regional broadband networks under the previous EU financial plan. Thanks to these funds, each region will have its own fiber optic ring, covering the region’s whole area, and pm

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these hubs are to be built where no commercial hubs existed until now. Such a location is supposed to expand access to broadband Internet in the so-called marginalised areas. So we are about to complete the construction of a modern backbone network, to which access networks, implemented under the EU financial plan for the years 2015-2020, will be connected. As part of the priority axis of the Operational Programme Digital Poland for 2014-2020, a total of EUR 1 billion in EU funds will be allocated for the construction of broadband access networks. In the first stage - which was initially scheduled by the Ministry of Administration and Digitisation for September 2015 competitions were planned to be opened for a total amount of PLN 600 million. This money will be used mainly to build broadband networks in the so-called white spots, where the

ICT construction of broadband networks is commercially unprofitable and therefore there is a low probability of a network being built by any of the operators. Given the above, it is expected that the basic assumptions under the Digital Agenda for Europe will be fulfilled by 2020. These assumptions involve providing access to broadband across the country at speeds of at least 30 Mb/s to all Internet users and more than 100 Mb/s to at least half of the households. What is the role of Exatel in it? Exatel has not built broadband access networks for individual users so far, but is watching the process. Our participation in the first axis of the competitions carried out in the framework of the Operational Programme Digital Poland will be conditioned by the rules set out by the Ministry of Administration and Digitisation, and most of all by the list of areas subject to financing. Exatel has long been involved in the process of digitisation of Poland in the business customer segment. We provide Internet connectivity, we are building extensive networks, we provide professional ICT services (which is our core business), and ensure communication between local government units. In this last area we can boast indeed significant achievements, having provided connectivity to the 2,703 municipalities under the System of National Registers. pm

What about public buildings such as hospitals? We provide ICT solutions to such users, too. We expect the healthcare market to develop at an accelerated pace in terms of ICT. On 19 August, the Minister of Health signed the regulation amending the regulation on the types and scope of medical records and how they are processed. The new regulation states clearly that from 2017 all medical entities are obliged to archive medical data on servers, while ensuring access to them. In view of the fact that part of the data must not be compressed out of concern for their quality, we expect a significant increase in the transmission and storage of data in the data centre. It is a very promising market which we are looking into closely. pm

You mentioned data security. With the development of digital networks and Internet connectivity commonly available in businesses and public offices, more and more attention is paid to cybersecurity. Is Exatel active also in this sector? Cybersecurity is one of our most important projects. For over two years, we have been providing our business clients with services in this area, using the professional, world’s best platforms. For example, in relation to DDoS attacks (Distributed Denial of Service) we use platforms

being leading solutions in the world. We have been protecting our clients from the energy and finance sectors against DDoS attacks for more than two years now. I would be very happy to be able to reveal the list of our clients, but I am not allowed to do it due to the specific nature of this area. The number of attacks that we observe and those reported by the largest intelligence agencies is increasing dramatically. In the first two quarters of 2015, the company Arbor Networks reported more than 14,000 incidents that occurred on one Polish territory. These attacks are very different in range, the heaviest one peaking at over 140 Gb/s and the longest one lasting more than 3 days. It should be noted that the end user alone is not able to cope with certain types of attacks. I mean here the so-called volumetric DDoS attacks, aimed at saturating the entire bandwidth. Only a telecom operator is capable of fending off a volumetric attack by using systems similar to ours. Until recently, a simple solution was applied in the event of such attacks – all devices would be disconnected from the network waiting till the attack ceases. Now it is practically impossible because clients claim compensation for the time of unavailability of services resulting from such an attack. In order to better illustrate the nature of a DDoS attack I will take the following example: let us imagine all the residents of Poland trying to enter the website of “Polish Market” at the same moment. The server would almost immediately get paralysed and the website would stop working. The biggest advantage of the professional solutions is that they do not cut off the traffic, but keep scanning it. Detecting a DDoS attack approach (high-volume traffic), they direct it to the space where it is extinguished, while good traffic is let through smoothly. This ensures the continuity of service, which is important both for service providers and clients. It is worth mentioning that DDoS attacks are so common because largely available for purchase on the Internet. Just a brief web search and you will come across ads offering a DDoS attack for, for example USD 50. Depending on the price, you can order a larger or smaller DDoS, and the suppliers of these attacks are as professional as to guarantee a service-level agreement (SLA).

Not so long ago, websites of the public administration institutions, including the Prime Minister’s, fell victim to an almost synchronous attack of this kind. How did these events influence the way politicians and officials think of cybersecurity? Typically, when something happens, there is a great noise and questions are raised concerning the protection against such incidents. If the incident does relatively little harm and there is no financial loss, let alone more serious pm

The number of attacks that we observe and those reported by the largest intelligence agencies is increasing dramatically.

consequences that could threaten the state’s security, then perhaps it is a good lesson to learn not to underestimate such risks in the future and to implement solutions preventing them from repeating. Today, the public administration sector is very much aware of the web-related dangers. Not without reason the critical ICT networks in all countries are under constant supervision of government agencies. This is because the paralysis of ICT networks is likely, within a half an hour, to significantly disrupt the functioning of the whole country, by for example interfering with the critical infrastructure. Therefore, these networks should be strictly protected and the state is bound to play an instrumental role in this. Solutions enabling the creating of smart cities have become fashionable stuff recently. Does Exatel see where it can use its potential in here? Of course. We have recently launched a service designed to measure and manage power consumption called “Meteus”. It is a comprehensive solution for businesses, consisting in an extremely accurate measurement of parametres such as voltage, current, active power and reactive power, allowing to optimise consumption based on data analysis. The solution includes smart meters and the service management application. In the near future, we intend to further improve its functionality to be able to measure the consumption of other utilities as water, gas and heat. Smart metering services like ours are part of the ecosystem of M2M services, which are used in the concept of smart cities,for example for monitoring air quality, flood protection, street lighting, waste management and traffic management. This market is very promising from our point of view, and the question is not whether the Exatel enters it, but how much of the share we can actually aquire. • pm

10/2015 polish market

ICT

The Smart City o f t h e T h i r d G e n e r at i o n is being born The second edition of the Smart City Forum was held on 23 and 24 September at Warsaw’s Westin Hotel. It was attended by an impressively large group of mayors, local government officials as well as CEOs of ICT firms. They all discussed the future of Polish cities, their development trends and opportunities that they are facing. Marcin Haber

ts organisers stress that the Smart City Forum is a response to the transformation, which takes place on a global scale, relating to the construction and operation of intelligent cities. It affects multiple aspects of life, ranging from transport, through ecology, energy, construction and finally new ways of communication with residents. Challenges in these areas are manifold and require a thorough and factual analysis. As a platform for dialogue and business cooperation with central and local administration, the Smart City Forum allows sharing views and experiences among Polish and other cities worldwide. When opening the conference, Mariusz Gaca, President of the Advisory Council of the Smart City Forum and Vice President of Orange Polska, drew attention to the evolution of the concept: “The first generation of smart cities was concerned with how to use modern technologies to achieve greater efficiency in the management of the city. It was we so much focused on creativity that the needs of city residents were not particularly taken into account. In the second generation, it is the municipal authorities played a dominant role using modern technologies to improve the quality of life. According to Boyd Coen, we are now witnessing the third generation. It is characterised by the impact of the residents. In fact, it is them who create the way their city develops. Examples are Vienna or Vancouver.” The Council’s President also pointed to the fact that the European Union, which co-finances a large part of the solutions implemented under smart city projects, pays much attention to make sure that this money is spent on practical applications. Mariusz Gaca cited the example of Gdańsk, where a smart lighting management system was put in place using M2M systems. According to available data, it can be said that this solution allowed to save a total of PLN

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250 thousand per year from the city budget. Winn Nielsen, Head of City Date in the City of Copenhagen, shared his experience from Copenhagen, including the methods of implementation and sources of funding of particular processes. He focused on the need to develop coherent solutions. In Nielsen’s opinion, applications, programmes, or devices created for specific cities should not be closed and constrained to match those cities only. One example would be the application for buying public transport tickets. It should be designed in such a way as to adapt itself to whichever city you happen to visit. Cities should work together while creating certain solutions, the main objective being to facilitate the life of residents. It should not be that, when traveling to another city, you are forced to install a separate application just because this city has created its own closed system. This will not only work for the convenience of the residents, but it will also help cities make significant savings, since basing on a single, common application is much cheaper than creating equivalents in every city. But perhaps the most interesting presentation was delivered by Trudy Norris-Grey, Public Sector Director for CEE at Microsoft, on how drastically smartphones have changed our lives since their were launched less than ten years ago, on how much we got - in a positive sense - addicted to them. Smartphones allow you to arrange a doctor’s appointment, order food, look up the taxi route and check up on a driver who is dropping your child home. These examples illustrate a range of possible uses of smartphones in the city life and the chances for the development of mobile applications dedicated to smart cities. “Although it has been nine years since smartphones were marketed, I can no longer imagine life without them, and you and your fellow citizens can neither, I suppose,” she said addressing city mayors present at the

Marcin Krupa, Mayor of Katowice

Mariusz Gaca, President of the Advisory Council of the Smart City Forum and Vice President of Orange Polska conference hall. The subsequent part of the forum was dominated by panels that discussed, among others, methods of implementing smart city solutions, effective management of modern cities and cooperation between communes and counties. •

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Energy

Double-digit growth in investment in new power generating units in Poland

s Poland’s old power generation sources need to be replaced with new ones, the construction output related to power generation projects grows steadily every year. The strong upward trend is reflected in statistical data – within a decade the value of construction and assembly output in the industrial building segment increased threefold to reach around PLN6.7 billion in 2014. What is more, further increases in this segment are expected in coming years.

Construction and assembly output generated by complete projects on industrial sites, change in output, 2006-2015

According to the recent report “Power Sector Construction in Poland 2015-2020. Investments – Companies – Statistics – Forecasts – Prices,” prepared by the market research company PMR, a slowdown noted in 2013 was followed in the next year by a marked revival in the activity of investors operating on the industrial building market, mostly because of the fastpaced implementation of several important power generation projects. The market grew by nearly 25%. And the PMR analysts expect the sector to expand by around 10% in 2015, which should be regarded as a really good result considering the high base for comparison. construction output (PLN billion) e – estimated

change (%, y-o-y) Source: GUS, 2015 www.pmrpublications.com

Share of new build projects in complete projects on industrial sites, 2005-2014

Source: GUS, 2015 www.pmrpublications.com

Almost half of all boilers used in energy generation in Poland are over 30 years old while one third are 20-30 years old. This is a very unfavourable situation and Polish power groups have made efforts to change it by preparing and implementing numerous projects involving the construction of new generating units. Not all of the many projects planned will eventually be carried out, but even if only some of them

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Power generation projects planned and underway in Poland by type of fuel, 2015

* The chart does not include the nuclear power plant project Source: GUS, 2015 www.pmrpublications.com

come to fruition contractors specialized in this field will see their order books grow significantly. This is confirmed by the growing value of construction and assembly output. According to PMR analysts, this trend will continue thanks to the contracts which have already been signed and several projects which are to be started in coming years. Looking at the spending structure, one can also see that projects involving the modernization of existing power generation sources are losing in importance. In the past decade, the share of such upgrades in the total value of construction output in this segment dropped from around 40% to 25%. Meanwhile, the share of new build projects has been growing rapidly. The PMR analysts also examined the question of fuels for Poland’s power industry. There is every indication that hard coal will continue to be the dominant fuel, with nearly half of the projects already underway and planned being based on it. However, there are more and more projects based on natural gas (23%). Four large gas-based projects – in the Łagisza power station, and the Żerań, Grudziądz and Bydgoszcz heat and power generating stations - are now going through a tender process. The combined estimated value of the projects is PLN8 billion and they may be completed in late 2018 or early 2019. Lower construction costs and shorter project delivery times are the arguments for implementing gas-based projects, apart from environmental protection considerations. The projected liberalization of the gas market in the long term is also a favourable factor as it would have a positive impact on prices of this fuel. The article has been prepared on the basis of the PMR report “Power Sector Construction in Poland 2015-2020. Investments – Companies – Statistics – Forecasts – Prices.”

Author of the report: Bartłomiej Sosna, chief construction market analyst at PMR For more information about the report contact: Marketing Department tel.: +48 12 618 90 00 e-mail: marketing@pmrcorporate.com

25-26 listopada 2015 r. Hotel Westin, Warszawa

Energy Conference EuroPOWER

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Energy

We are the largest oil and gas producer in Poland

Jarosław Bauc, Vice-President of Polish Oil and Gas Company (PGNiG) PGNiG provides a wide range of services: from geophysical exploration, through gas and oil mining, to heat generation. The company also deals with gas imports and sales its services. Which of these is your priority? The PGNiG Group has indeed a very wide portfolio of products and services. The basic and crucial product on the Polish market is natural gas and that is for what we are best known. We trade natural gas imported from Russia under a long-term contract with Gazprom. Imports from Russia amount to approx. 8.1 billion cubic metres. But we are importing gas from the West, and soon supplies will start flowing into the LNG terminal in Świnoujście as part of an agreement with QatarGas. PGNiG does produce natural on its own as well, conducting exploration and mining both in Poland and abroad, mainly in Norway. Our strategic plans involve the purchase of attractive production assets, among others, in North America. Our annual total output (domestically and abroad) of natural gas and crude oil stands at 4.5 billion cubic metres and 1.2 million tons respectively. The PGNiG Group is also the largest supplier of natural gas in Poland. Our customers include big Polish companies that consume natural gas as a raw material for further processing and for power and heat generation, as well as SMEs and nearly 6.5 million households. From 2013, we also trade natural gas on the Polish Power Exchange (TGE). It is also worth mentioning our companies specialised in providing services. We have two companies that deal with geophysical services - Geofizyka Toruń and Geofizyka Kraków. That is where the whole mining business chain starts in practice. They are tasked to carry out seismic and geophysical research to identify spots for exploration and test wells. Drillings are performed Exalo Drilling SA. It is a company known in many countries, historically rooted in many markets. When a drilling confirms the existence of oil or natural gas beds, another of our companies - PGNiG Technologie builds the infrastructure needed to mine and transport pm

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natural gas through a pipeline system, which in turn belongs to our company PSG SA. Finally, PGNiG Termika SA works somewhat aside from our core business, namely oil and gas mining and trade. Dealing with power and heat generation, it is the largest CHP producer in Poland, selling its services in Warsaw and surroundings. You said that the domestic gas represents roughly half the value of imports from Russia. Is it our peak capacity, or is it dictated by economic conditions? The current assessment of Polish conventional deposits does not leave hope for the discovery of large beds like those in Kościan or Przemyśl, but medium and small ones are being found and documented, allowing PGNiG to significantly increase the size of proven reserves and pursue domestic exploitation further afield. We strive to increase production from own deposits and accelerate development of deposits that have already been identified. The objective underlying this intensification is to maintain domestic production of hydrocarbons at the current level of approx. 33 million BOE per year. We intend to boost domestic production by using the latest technologies, accelerating the development of the existing deposits and enhancing production optimisation techniques. In addition exploration works, PGNiG is gradually drilling out beds discovered in past years by connecting new wells to the existing mines. New advanced methods are used to increase the mining efficiency. Polish conventional resources are limited. With the production intensification and new development projects, we hope to be able to gradually rebuild Poland’s portfolio of domestic deposits, so as to maintain the production of hydrocarbons as it stands now. pm

And what about shale gas? Did the enthusiasm of investors subside, as the enthusiasm of the government did?

In Poland, we are only beginning the shale adventure. But it must be said straight out that we will not be another America. Shale gas boom, or so-called shale revolution, is the phenomenon of the US, which had far-reaching consequences for the global markets. The US, which was formerly one of the world’s biggest gas importers, is now almost self-sufficient. In the future it will probably be even able to export gas. It should be noted, however, that it was a nearly twenty-year-long process. It cost years of tests and technology developments to succeed from the moment it was realised that the bedrock can be mined for hydrocarbons it succeeded. In Poland, we are only beginning the shale adventure. But it must be said straight out that we will not be another America. Even if large deposits were found, the mining process itself is different than in conventional deposits, where one drilling can provide supplies for up to 30 years. In the case of shale, gas pressure is much lower and its content per cubic meter of rock is much smaller, so it is a different story. You have to move all the time, drill new wells, and this requires space. Moreover, the United States, despite close to 400 million inhabitants, has a relatively low population density. The case of Poland is different, so the exploitation of shale gas can be harder. Therefore, for many reasons, including social and environmental, it is impossible to repeat such a business model that the US has successfully • put in place.

The core business of Petrax is foreign and domestic trade of petroleum products. Our main focus is on: - biofuels and biocomponents - diesel - LPG Our unique expertise are regularly conďŹ rmed by many awards and distinctions.

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Energy

International Fair of Mining, Power Industry and Metallurgy in Katowice

he International Fair of Mining, Power Industry and Metallurgy is the biggest mining industry’s pavilion in Europe. The event has been organised biennially for more than 30 years now by Polska Technika Górnicza SA, formed by Polish manufacturers of mining equipment: KOPEX Group, FAMUR Group, GLINIK Group, Stomil Wolbrom, Carboautomatyka, Damel. Mines, mining centres and coal companies are usually represented in Katowice. It was no different this year, with several hundred exhibitors from a dozen countries. “Rely on our experience” was the title of Kopex’s offer. “We wish to emphasise that what makes our offer innovative is precisely expertise and years of experience. Thanks to this, our machines and services are trusted around the world,” says President of Kopex, Józef Wolski. The Kopex Group, the largest company of the semi-mining sector in Poland, has long been one of the major exhibitors at the Katowice trade fair. This year, a total of a dozen different machines, pieces of equipment and technical solutions, which are the backbone of the Kopex Group’s offer, were showcased on the area of 800 sq. m. The longwall system Mikrus II, a technology designed by Kopex for mining thin seams was a counterweight for big machines. The first version of it is successfully working in the Jas-Mos coal mine that belongs to Jastrzębska Spółka Węglowa (JSW). The second version has been designed for mining ever thinner seams – 0.87-1.51 m. One of the hits of this year’s edition of the International Fair of Mining, Power Industry and Metallurgy in Katowice was the latest model of high-performance roadheader DHR75t designed by Deilmann-Haniel Mining Systems GmbH for digging tunnels with large cross sections. Exhibitors offered comprehensive services for the mining industry. The trade fair was accompanied by international conferences and symposia, involving members of the European Commission, Polish government, International

52 polish market

Energy Agency, World Mining Congress and European scientists. The Katowice trade fair is for the mining industry what a car showroom in Geneva is for the automotive industry. It is an opportunity to showcase and preview new products. This was the case, at the previous pavilion, of Damel’s electric motor of 160 kW suitable for work under water. “It was a challenge from the Russian partners,” Jerzy Suchoszek, President of Damel, then told “Polish Market”. “Russians pointed to problems with flooded parts of the mines. They needed motors to drive the scraper conveyors, which would be able to work in such conditions. This is probably the first such motor in the world.” The fair is also a great opportunity to meet industry professionals. It is therefore no wonder that a conference “Coal - Cheap Energy and Jobs” was included in the event’s programme. The conference, organised by the Mining Chamber of Industry and Commerce at the International Congress Center in Katowice, brought together people involved in efforts to defend the mining sector against the anti-coal lobby

and promote coal in Europe and the world. The conference was opened by Janusz Olszowski, President of the Mining Chamber of Industry and Commerce, and among the speakers were Vladimir Budinsky, Vice-President of the Expert Group for Clean Generation of Electricity from Fossil Fuels, Economic Commission for Europe of the UN/ECE in Geneva; Mmember of the Board and Director for Strategy and Communication of Severoceske Doly SA, Józef Dubiński, Managing Director of Central Mining Institute (GIG), Zygmunt Łukaszczyk, President of KHW SA and President of Euracoal - European Association of Hard Coal and Lignite, Brian Ricketts, Secretary General of Euracoal, Krzysztof Sędzikowski, President of KW SA. The conference speakers presented papers concerning the coal mining in the European Union and the world, EU energy and climate policy and clean coal technologies. Relevant issues were discussed by those involved in efforts to defend the mining sector against the anticoal lobby and promote coal in Europe and the • world.

CARBOAUTOMATYKA ¡ DAMEL ¡ MIFAMA OPA CARBO

GRUPÊ CARBOAUTOMATYKA tworz¹ intensywnie rozwijaj¹ce siê firmy, z których ka¿da zajmuje czo³owe pozycje rynkowe w swoich bran¿ach. Wynik ten osi¹gnê³y dziêki wykorzystaniu nowoczesnych technologii, wykwalifikowanej kadrze oraz wysokiej jakoœci oferowanych produktów i us³ug.

• Przedsiêbiorstwo Kompletacji i Monta¿u Systemów Automatyki CARBOAUTOMATYKA SA • D¹browska Fabryka Maszyn Elektrycznych DAMEL SA • Mifama Opa Carbo Sp. z o.o.

Grupa Carboautomatyka to sprawdzony wykonawca przedsiêwziêæ w górnictwie wêgla kamiennego i brunatnego, inwestycji w zakresie infrastruktury drogowej, tuneli komunikacyjnych i obiektów u¿ytecznoœci publicznej. Wykonuje roboty od projektu poprzez produkcjê, dostawê i monta¿ urz¹dzeñ a tak¿e ca³ych systemów technologicznych oraz zapewnia kompleksowy serwis.

43-100 Tychy; ul. Budowlanych 168 tel.: (32) 323 43 00; fax: (32) 323 43 23

Przedsiêbiorstwo Kompletacji i Monta¿u Systemów Automatyki CARBOAUTOMATYKA SA

e-mail: carboautomatyka@carbo.com.pl http://www.carbo.com.pl

Infrastructure

Prof. Janusz Dyduch, President of the Polish Association of Engineers and Technicians of Transportation

The 11th International Railway Fair 2015 TRAKO

RAKO is the largest and most prestigious in Poland and the second largest rail industry meeting in Europe, presenting the state of the art in transport systems and railway infrastructure in Poland, Europe and round the world. TRAKO is the perfect opportunity to promote rail transport (trains and trams), freight forwarding and logistics, to present the latest technologies and hold meetings within the industry. The TRAKO Fair is organised by the Gdańsk International Fair Co. (MTG SA) and Grupa PKP. It is coorganised by Bombardier, Medcom, Siemens, TINES and Pojazdy Szynowe [Rail Vehicles] PESA Bydgoszcz SA. The TRAKO Programme Council also includes the following industry organisations: the Commercial Chamber of Land Transport (IGTL), the Polish Association of Engineers and Technicians of Transportation (SITK RP), the Association of Polish Electrical Engineers (SEP), the Polish Chamber of Urban Transport (IGKM), the Polish International Freight Forwarders Association (PIFFA), Railway Business Forum (RBF) and Association for Rail Transport Interoperability and Development (SIRTS). As always, the event is accompanied by an extensive programme which includes a debate, numerous seminars and company presentations. The Fair takes place every two years. For almost two decades, TRAKO has been organised by the Gdańsk International Fair. The International Railway Fair TRAKO, thanks to a long-term cooperation with the rail industry, gained the status of the second largest and most important exhibition event in Europe. This is evidenced not only by the number of exhibitors in the last edition (in 2013 - 510 companies from 25 countries), but also national exhibitions of Austria, the Czech Republic, Finland, Britain, and the Land of Saxony. The International Railway Fair TRAKO 2013 and its numerous accompanying debates and conferences brought together more than 12 thousand guests from dozens of countries.

TRAKO benefited from the honorary patronage of: • Maria Wasiak - Minister of Infrastructure and Development • James Karnowski – President and Director General of PKP SA, President of the Programme Council of the 11th International Railway Fair 2015 TRAKO • Prof. Eng. Janusz Dyduch - President of the Polish Association of Engineers and Technicians of Transportation

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Prof. Janusz Dyduch

• Tadeusz Szozda - President of the Organisation for Cooperation of Railways OSJD • Dr. Piotr Szymczak - President of the Association of Polish Electrical Engineers TRAKO was attended by 600 exhibitors, which is over 100 more than its previous edition, including the key players in Poland’s domestic railway market: the PKP Group companies, multinationals, such as Bombardier and Vossloh, and the leading Polish rail and tram companies, including private and local government carriers, and technology providers for the railways and rolling stock. The greatest increase in exhibitor numbers has been recorded among companies from outside Poland, with Czech exhibitors as one of the largest contingents. TRAKO’s standing is emphasised by the presence of national pavilions from Austria, the UK and the State of Saxony. There was a single objective: to present the latest solutions and technologies in rail vehicles and traction, construction work, vehicle equipment and furnishings, passenger safety and transport management technologies.

Innovation

226

km/h

PIERWSZY POLSKI POCIĄG POSIADAJĄCY PEŁNE TSI ZGODNE Z NAJNOWSZYMI R E S T RY KC YJ N Y M I N O R M A M I U N I I E U R O P E J S K I E J . Najszybszy skonstruowany i wyprodukowany w Polsce pojazd szynowy.

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Infrastructure

Exhibitors willingly take part in competitions organised as part of TRAKO: 1) The Ernest Malinowski Award - for products and technical innovations applied in the rail industry and presented at TRAKO 2015. The competition covers products and technologies within the fair’s subject matter, entered by TRAKO 2015 exhibitors from Poland and abroad.

a) Infrastructure Category

b) Vehicles Category

Winner: PESA BYDGOSZCZ S.A. for its Electric Multiple Unit PesaDART (43WE)

Winner: KOLEJOWE ZAKŁADY NAWIERZCHNIOWE “BIEŻANÓW” for its innovative technology for manufacturing and building high-quality rail turnouts

Honorary Mentions: SOLARIS BUS & COACH S.A. for its new tram Solaris Tramino OlsztynNEWAG S.A. for its Electric Multiple Unit 45 WE EC ENGINEERING for its Rail Pantograph 200EC

Honorary Mentions: BOMBARDIER TRANSPORTATION POLSKA Sp. z o.o. for the implementation of ERTMS Level 2 in the Polish rail network ZAKŁADY AUTOMATYKI KOMBUD S.A. for its Vehicle Security System

3) The Józef Nowkuński Special Award (Józef Nowkuński - builder of the Silesia-Gdynia Coal Trunk Line) - for completed line projects and enclosed buildings, as well as designs for new rail infrastructure projects implemented in Poland and rail rolling stock authorised for placing in service in at least one EU Member State and presented at TRAKO 2015 (rail cars, locomotives, multiple units). Winner: ŁÓDZKA KOLEJ AGLOMERACYJNA Sp. z o.o. for the project “The Construction of the Łódź Agglomeration Railway System” implemented under the Operational Programme Infrastructure and Environment

b) Rolling Stock Category:

Winner: TRACK TEC S.A. for its Turnout Building Unit TRACK TEC Honorary Mentions: SOLARIS BUS & COACH S.A. for its Solaris Tramino Olsztyn ZAKŁAD ELEKTRONIKI PRZEMYSŁOWEJ ENIKA” Sp. z o.o. for its High-Power Static Converter for Metro Cars ENI - PTC/750/24/AC-100

c) IT Category:

Winner: MACRO SYSTEM for its On-Board Computer KPTMv9 Honorary Mention: RADIONIKA Sp. z o.o. for its Train Radiotelephone KOLIBER GSM-R/VHF

2) The Prof. Czesław Jaworski Award - for outstanding

achievements in the application of new technologies and equipment in electric traction, organised by the National Board of the Polish Association of Engineers and Technicians of Transportation (SITK RP).

a) Infrastructure Category

Winner: STRUNOBET-MIGACZ Sp. z o.o. for its Prefabricated Sectional Cabin

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Honorary Mentions: MABO Sp. z o.o. for its Tensioning Device Compensating the Length of Contact Lines and Carrier Ropes PFISTERER Sp. z o.o. for its Spring Automatic Tensioning Device TENSOREX C+

Honorary Mention: PESA BYDGOSZCZ S.A. for its Diesel Multiple Unit Atr 220 TRAKO exhibitors and organisers remember those in greatest need. For the eight time, the fair was accompanied by the TRAKO FOR CHILDREN Charity Fundraiser for the Father Eugeniusz Dutkiewicz Hospice Foundation. The fundraiser included an art competition for children and young people, titled My Railway Station. The auction of the children’s winning works was traditionally held during the TRAKO Exhibitors grand evening reception. All money donations from the auction went to the Foundation’s bank account. The 2015 edition was the first time for TRAKO to join the campaign “European Car Free Day”, aimed at spreading information about the negative effects of car use and at promoting public transport. Is car-free life possible in a city and can it be enjoyable? How can Europeans be persuaded to use alternative means of transport? These questions were asked during a debate on the future of urban transport, co-organised in collaboration with the Polish Cham• ber of Urban Transport (IKGM).

Defence Sector

= Quality + Speed A

logistics technology developed by Kolejowe Zakłady Nawierzchniowe “Bieżanów” is an innovative solution guaranteeing high quality while shortening turnout (switch) construction time. The system protects turnout units against distortions and damages during loading, transportation and unloading on the site. This innovative, patented logistics system has been fully developed, including conceptually, by the R&D Department of KZN “Bieżanów” and will be available for sales at the beginning of 2016. The backbone of the logistics system developed by KZN “Bieżanów” is a 27.5-metre long rail car - Switcher - integrated with a crane and modules for platform mounting and stiffening turnouts while loading and unloading. Digitally controlled cranes installed on both sides of the car enable precise turnout loading and unloading both with a car fitted with a crane and one being part of the craneless system - used for transportation of the biggest turnout units. Thanks to its flexibility, the solution allows to transport virtually all types of turnouts, including those with a radius of 1,200 metres. The system will shorten 4-fold the turnout

construction time, while also eliminating the problem of inadequate mounting quality control on the site. Mounted at a production plant, individual turnout units (frog, crossover, connecting rails) are secured by special stiffening beams. Attached to the unit, beams are loaded for transport, delivered to the site and, after the unit is settled in a track, removed. Such a system prevents turnout units from bending, compressing, buckling etc. Due to a size diversity of turnouts, multiple configurations of cars can be used. For turnouts with a radius of 190, 300 and 500 metres, turnout units are transported using three A-type cars fitted with cranes. For turnouts with a radius of 760 and 1,200 metres, four cars are used, with frogs being transported on the A-type car, and crossovers and connecting rails on the B-type car; B-type cars are unloaded by means of lifting equipment mounted on adjacent cars. Once on the site, cars are unloaded from the neighbouring track, assuming that the maximum space between the tracks is up to 6 metres. The crane has been designed to work in a confined space, making it possible to unload the car without removing the electric traction. Cranes have two arm restrictors. • 10/2015 polish market

Real Estate

“Marketbeat Poland Autumn 2015” drwas an overview of the Polish office, retail and industrial markets in H1 2015, and an outlook for the near future.

KEY REPORT FINDINGS Commercial Investment Market • Investment volume totalled EUR 794 million in 21 transaction in H1 2015 • US investors accounted for a substantial share of the deal volume • Investor focus is increasingly shifting to regional cities which in H1 2015 outperformed Warsaw for the first time ever with trading volumes rising 30% on the figure recorded in H1 2014

POLISH COMMERCIAL REAL ESTATE MARKET IS IN GOOD SHAPE

Office Sector • Supply outstrips absorption on the Warsaw market • Prime rents down in Warsaw’s best office buildings • Much stronger leasing activity on regional markets

The first half of 2015 saw high levels of activity within the Polish commercial property market and the outlook for 2015 remains positive with annual figures likely to be better than in 2014, given the volume of transactions closing. More detailed information on the office, retail and industrial sectors can be found in the latest report “Marketbeat Poland Autumn 2015” compiled by Cushman & Wakefield, a global real estate services firm. It also draws an overview of the commercial investment market in Poland, and an outlook for the Polish commercial real estate market.

Retail Sector • More than 67% of new space delivered in large cities above 200,000 inhabitants • Rapid growth of the convenience stores and space upgrading in existing hypermarkets • Retail park development picking up rapidly, mainly in smaller cities with 15,000-30,000 inhabitants

Industrial Sector • 452,000 sqm of new industrial space came onto the Polish market in H1 2015 • Vacancy rate at 6.2% an all-time low • Increasing industrial space development in the regions on the back of improvements in transport infrastructure

KEY REPORT FIGURES • 66% – modern office stock in Poland’s six regional cities accounts for 66% of Warsaw’s total office space • Around 616,000 sqm – estimated retail supply at year-end 2015 (a 30% rise on 2014’s total) • 33% more industrial space delivered in H1 2015 (compared with H1 2014)

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harles Taylor, Managing Partner of the Polish office of property consultant Cushman & Wakefield: “Investor interest in Polish commercial properties remains very strong across all asset classes. Focus in the office sector is shifting to regional cities which in H1 2015 outperformed Warsaw in terms of trading volumes for the first time ever. Kraków is now the top spot for regional office investment.”

these figures are lower than those recorded in H1 2014. Piotr Kaszyński, Partner, Head of Capital Markets, Cushman & Wakefield: “US investors accounted for nearly half of the transaction volume recorded in H1 2015, increasing their share of the Polish investment market by 14 percentage points compared with 2014. By contrast, the share of German investors in the deal volume fell by 15% while Polish investors came third with a stable market share at 9%.”

Investment Market

Office Sector

The Polish investment market performed well in H1 2015 as the investment volume reached EUR 794 million in 21 transactions, of which the office sector accounted for 47%, followed by retail with 34% and the industrial sector taking around 19%. Compared with H1 2014, the investment volume fell by 47% and the number of deals was down by 16%, which was mainly due to the more limited supply of large prime assets for sale. In H1 2015, the total transaction volume reached EUR 374 million on the office market, EUR 271 million on the retail market and EUR 149 million on the industrial market. All

With office supply outstripping absorption on the Warsaw market in H1 2015, the vacancy rate rose gradually thanks to high absorption standing at 30,900 sqm in central locations compared with year-end 2014. Leasing activity in Warsaw is rising as expected. In H1 2015, total take-up reached 385,200 sqm, representing a rise of nearly 50% on the same period of 2014, with demand for office space coming largely from banking, financial and insurance companies (78,900 sqm), the IT sector (77,100 sqm) and professional services (49,400 sqm). In H1 2015, modern office supply in Warsaw totalled more than 147,000 sqm, the largest completions being Postępu 14 and

Real Estate Spektrum Tower. The biggest schemes under construction include Warsaw Spire and Q22. Headline rents in Warsaw stand at EUR 1124.75/sqm/month, depending on scheme location and standard. In H1 2015, modern office stock in Poland’s six regional cities (Kraków, Wrocław, Tricity, Poznań, Katowice and Łódź) rose to more than 3 million sqm, accounting for 66% of Warsaw’s total office space. With 752,000 sqm Kraków remains the second-largest office market after Warsaw. In the first two quarters of 2015, the leasing activity on the regional markets amounted to more than 217,200 sqm, accounting for almost 59% of 2014’s total take-up. The largest leasing volumes were noted in Kraków and in the Tricity. The office markets of Szczecin and Lublin continue to grow, offering 175,400 sqm and 154,100 sqm of modern office space, respectively. Headline rents in regional cities are more or less evenly aligned, ranging from EUR 13/sqm/month in Łódź to EUR 15.5/sqm/month in Wrocław. Richard Aboo, Partner, Head of Office Department, Cushman & Wakefield: “In Warsaw both office building owners and developers are finding it difficult to keep rents stable due to office supply outstripping absorption. However, leasing activity has already started to pick up in line with the economic cycle, strongly spurred by the expiry of ten-year leases signed in the years 2006-2008 and fiveyear leases signed in 2011-2013, when take-up was high. Leasing volumes are also rising on the regional markets where, given the strong occupier demand, more than 400,000 sqm is expected to be transacted in 2015. The outlook for Lublin and Szczecin remains positive as these emerging markets benefit from low land prices and low costs of highly-qualified employees.” Retail Sector New retail space supply in H1 2015 totalled 176,800 sqm. This included the openings of seven new retail schemes and extensions of nine existing properties. The largest completion was the Tarasy Zamkowe shopping centre in Lublin providing 38,000 sqm. The development pipeline includes around 800,000 sqm, of which around 439,000 sqm is to come onto the market in 2015, in schemes such as Zielone Arkady (51,000 sqm GLA) in Bydgoszcz and Sukcesja (46,000 sqm GLA) in Łódź. Modern retail supply is expected to total 616,000 sqm, a 30% rise on 2014’s figure. The eight largest Polish cities will account for 38% of new retail space to be constructed this year compared with just 9% in 2014. Around 67% of this year’s total supply will

come onto the markets of large cities above 200,000 inhabitants in contrast to 2014, when more than 70% of new retail space was delivered in cities below 200,000 inhabitants, including 48% in cities below 100,000 inhabitants. Demand for retail space has remained at a healthy level in 2015 with tenants focused on schemes offering high footfall and satisfactory revenues. The shopping centre density in the fifteen largest conurbations (cities above 200,000 inhabitants) is the highest in Lublin, Wrocław, Kielce and Poznań. The highest rents are in Warsaw’s prime shopping centres at EUR 100-140/sqm/month for a fashion store sized between 100 sqm and 150 sqm. Rents average EUR 35-40/sqm/month in the other seven conurbations and EUR 20-30/sqm/month in small and medium-sized cities. The retail park sector continues to grow rapidly in Poland with retail parks being developed mainly in smaller cities, including towns with a population of 15,000 to 30,000. The largest schemes opened this year were Era Park Wieluń and Galeria Głowno, providing 6,000 sqm each. Development activity has also picked up on the Polish outlet centre market. In H1 2015 another retail scheme was added to the market: Outlet Center Białystok. The current development pipeline includes the extensions of Warsaw’s Factory Ursus and Szczecin’s Outlet Park to be provided with an additional 6,000 sqm and 5,000 sqm, respectively. The Polish food sector is currently developing through convenience stores (Żabka and Carrefour) and through upgrades and standardization of existing retail space. Development activity in the DIY hypermarket sector was limited in H1 2015. Marek Noetzel, Partner, Head of Retail Department, Cushman & Wakefield: “E-commerce, including mobile commerce (m-commerce), is gaining an increasing market share and becoming intertwined with traditional retailing. Most brands across all sectors are now strongly focused on omnichannel presence by combining in-store experience with online shopping. Most of them have already launched online stores. On the other hand, online retailers are now opening physical pop-up stores or taking up retail space on standard lease terms in traditional shopping centres. Co-existence of various distribution channels and combination of different shopping opportunities are the key features of the modern retail market.” Industrial Sector In H1 2015 the industrial and warehouse market in Poland witnessed further robust

growth, both in supply and take-up. More than 450,000 sqm of new industrial space was delivered to the market, representing a 33% increase compared to H1 2014. Takeup reached 1,210,000 sqm, which pushed the vacancy rate down from 6.8% to 6.2%. In 2015 Poland’s new supply is likely to exceed 1,000,000 sqm. Vacancy rates are expected to remain low as take-up is strong and most schemes are either BTS projects or have secured substantial pre-lets. The Warsaw region remains the largest warehouse market in Poland, but 77% of its stock is located in Warsaw’s suburbs. However, improvements in transport infrastructure have spurred development activity in the regional markets such as Upper Silesia, Central Poland, Poznań and Wrocław, whose industrial space accounts for 60% of the country’s total compared to Warsaw’s 31% market share. Development also picked up in the smaller markets of Szczecin, Lublin, Kraków, Rzeszów and the Tricity, where 167,000 sqm of warehouse space was delivered in H1 2015, a rise of 36% on 2014’s total supply of 123,000 sqm. Due to improved road infrastructure, we are witnessing more medium-sized cities with available labour resources being of interest to occupiers. Some developers are growing their portfolio of industrial projects and securing development sites at affordable prices per square metre in these cities and are realizing new developments to accommodate occupier demand and provide modern industrial and logistics space in these under-developed locations. Rents remained flat or fell slightly in the core warehouse markets in H1 2015. The highest rents were posted in Warsaw’s inner city (EUR 4.2-5.5/sqm/month) while the lowest were in Central Poland (EUR 2.4-3.95/sqm/ month) and in Warsaw’s suburbs (EUR 2.43.8/sqm/month). Tom Listowski, Partner, Head of Industrial Department & CEE Corporate R elations, Cushman & Wakefield: “Having new developer-led industrial and logistics parks appear in previously inaccessible areas of Poland not only gives occupiers more options to choose from but also gives developers the opportunity to unlock very well located sites for the development of modern facilities, be it for multi-let or BTS buildings. Customers from various sectors including 3PL’s are able to improve their supply chain whereas others can locate, and in some instances, re-locate from antiquated buildings to modern and efficient facilities in cities which are complimentary to their operations, supplier base and have • available labour resources.”

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Energy

MODO A new sales concept 60 polish market

• modern retail spaces

Energy

• 350 boutiques • unique selection of brands • boutiques available from 28 sqm • 1,000 parking spaces • unique street fashion assortment • no megastores • 16,000 sqm of leasable space • 28,000 sqm of total space

MODO Domy Mody is Poland’s first and unique, boutique-like concept of a shopping mall. MODO is a new sales concept that provides for a single venue to house 350 boutiques. It brings together designers, producers, importers and stylists who create the fashion market. It is a completely new concept of interior design of retail spaces. Its characteristic element will be fashion zones arranged to meet specific needs. Customers will be able to quickly find whatever interests them, without wasting time and enthusiasm along the way.

Nazim Albayrak, Board Member of Devin Investments Sp. z o.o., tells “Polish Market” about a new innovative fashion house. When are you planning to open MODO? As soon as on 17 October. We invite all fashion lovers, but also those who want to get some new clothing items quickly and smoothly. MODO will be free of bottlenecks and the obligation to visit all shops on the way to your destination. One level, multiple entrances, clear signage and more than 1,000 parking spaces will make it easier to get around. It is certainly a good idea to start the new autumn-winter season at MODO Domy Mody. pm

You are insisting that MODO is not a shopping mall. How would you call it, then? This is not a shopping mall in the usual sense. Its specificity is not even about the fact that it houses the biggest number of boutiques in one place, 80% of which offering clothes. MODO represents a new sales model, and that is the point. In any other major shopping mall, there are some 50 chain stores, or corporations for which you are just an average customer. MODO means new sales standards and an old-time, individual approach to customers. Moreover, we will have fashion designers at hand. Łukasz Jemioł, Teresa Rosati, Maja Palma, Natasha Pavluchenko, Mariusz Brzeziński, Mariusz Przybylski are not only names-brands, but the people who will stay with MODO daily. pm

It is not a standard shopping mall, but can popular sales and discounts be expected? Yes, first of all, because MODO Domy Mody will house 350 cosy boutiques. The biggest one measures slightly over 140 sqm, and the smallest one approx.15 sqm. Space lease at MODO costs one-fourth of what traditional shopping malls charge. As a result, boutique owners will This will certainly be a factor attracting customers: quality clothing at a fair price. In large shopping malls, a mere 8% of visitors actually does the shopping. The rest are having a coffee, going to the cinema, or just walking around. In MODO, there will be twice as many boutiques and no entertainment facilities. According to our estimates, the conversion rate (buyers-toshoppers ratio) will be at least 20%. pm

What brands can be found at MODO? The best ones! In the ART Fashion alone there will be collections and boutiques of more than 100 Polish and foreign designers. Brands that will certainly be present at MODO include Lagerfeld (men’s line), Versace Jeans, Baldowski, BezAle, Sara von Steiner, Monica Nera, Tiffi, Redi Fashion, Bugatti, Monnari Shoes&Bags (a new retail concept), Sophie Marel, Save my Bag, Betty Barclay, Henri Lloyd, Pierre Cardin, and others. There is also a wide array of carefully selected high-quality Polish and foreign brands. Outside the fashion shopping, our customers pm

are welcome to take advantage of a traditional offer of complementary services: two hairdressing salons, beauty salons, travel agencies, press lounges, shoemaker, laundry, tailor/dressmaker, delicatessen (Piotr i Paweł). There will also be restaurants and cafes. MODO Domy Mody will focus on fashion at large, with consideration for all its facets: high-quality services and products, an opportunity to meet designers and a unique atmosphere of the place. A small coffee or chocolate will be a crowning point of your visit to MODO, not its primary purpose. That is what (among other things) differs MODO Domy Mody from traditional shopping malls. Have all retails spaces available at MODO been leased yet? Yes, the property has been already leased. This was done in record time. As an investor, Devin Investments Sp. z o.o. cooperated for MODO’s commercialisation with DTZ. The architectural design was made by APA Wojciechowski. The building has been designed to meet the needs of all lessees and customers, and the whole construction is coherent, fits well with the environment, and suits the purpose it was designed for. We have no doubts that by the opening day MODO will have been fully commercialised. • pm

10/2015 polish market

Cultural Monitor

Cultural Monitor – October 2015 Music “having its weight” is the heroine of this month’s Cultural Monitor. Albums and events recommended by Maciej Proliński.

Górecki: A Nonesuch Retrospective 7 – CD; Górecki: Symphony No. 4 – CD

n 16 October, the New York’s label Nonesuch Records will release the album with the last Symphony No. 4 by Henryk Mikołaj Górecki (1933-2010) “Tansman Episodes.” The recording was made during a concert premiere in 2014 at the Royal Festival Hall with the participation of the London Philharmonic Orchestra under the baton of Andrey Boreyko. It is also one of the facets of the 7-CD album “Henryk Górecki: A Nonesuch Retrospective”, which contains all the recordings of works by the ingenious Polish composer made by Nonesuch. These include the legendary Symphony No. 3, three string quartets and “Wide Water” - the first choral song cycle based on folk melodies. The Symphony No. 4 “Tansman Episodes” is one of the world’s most awaited pieces. It was waited for for almost 40 years. This is thanks to the success of the Symphony No. 3 “Symphony of Sorrowful Songs.” The piece, which gave rise to controversy at the time of its creation (1976), recorded once again in the early 1990s by Dawn Upshaw and the London’s Sinfonietta under the baton of David Zinman, was beating popularity records, so far achieved only by pop music. The Symphony No. 4, abbreviated as a score, was written in 2006. However, health problems prevented the composer from writing it out for an orchestra. On the basis of detailed notes contained in the original score, the symphony was orchestrated by Mikołaj Górecki, Jr. The symphony consists of four parts. It starts with Aleksander Tansman’s theme (based on the notes derived from the letters forming his name), followed by the slow part, at first played only by strings, and then the part that serves as a scherzo. So we have a string of polkas – first, a slower one, with a surprising, slow, intimate and melancholic middle part, and then a fast and crazy one, which takes you back to the beginning of the song. But it all happens in a one series and tension is supposed to exist all the time. You can certainly try to guess “the number of composers of the Symphony No. 4” (from Szymanowski to Wagner).

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For me, it is fascinating that I can hear entire Górecki in it. Like the master himself, I probably belong to those who do not really want to “divide Górecki into periods.” In this Symphony No. 4 you can recognise the notes both from before the Symphony No. 3 and from after it... And perhaps even a few “same” notes from the poignant Symphony No. 3. This carefully thought-out construction, a consistent construction, but as is typical of Górecki, full of tonal contrasts, this powerful and dramatic “voice from beyond” is now becoming yet another hit of the concert halls. But here again... The secret could be one of the most important characters and this story, too. Because Górecki invariably remains incredible in his particularity. And to some extent only can we all put into words this magnitude. In fact, he was rather sparing of words and explanations. Once again, a genuine artist. For example, he paid attention not to say too much about his pieces. “The listener is smart and can afford his or her own opinion,” he seemed to say at times. The accurate, professional musicological analysis of his works will not provide a final explanation, either. I will not deny that this music has been close to my heart for years. Its most mysterious notes (which can be found in different parts of a piece, sometimes at the end of it) are, I insist, “a music for the endings of Tarkovsky’s films”... Alfred Schnittke is believed to have once said about the symphonies of Giya Kancheli that they are like “experiencing the entire life or the entire history”... And that is what the Symphony No. 4 is like. But that is, after all, what the whole work of Górecki – the Symphony No. 3, the string quartets and “Ad Matrem” for soprano, mixed choir and symphony orchestra – is like. The Symphony No. 4. under the baton of Boreyko charmingly recalls Górecki – a profoundly mature composer, a supporter of right sound, full creative awareness and technical discipline. But perhaps most of all - a human desiring to communicate values. The highest values.

Culture

Tadeusz Zielniewicz, Director of the Royal Łazienki Museum, talks to Maciej Proliński. The Royal Łazienki Museum, once a summer residence of King Stanisław August, is a place where culture meets nature and history meets the present day. I suppose visitors do not need to be encouraged? For us, for Poland, a country that lost independence in the late 18th century, then came under occupation, and eventually was painfully affected by the period of communist domination, past reminiscences remain extremely important. The heritage strengthens our identity and unites us, as was often confirmed throughout history. Łazienki, as one of the four royal residences in Poland, has therefore a unique mission to fulfill. Among our architectural gems are the Palace on the Isle with the Amphitheatre, the Old Orangery with the Royal Theatre, the White House and the Myślewicki Palace and a historical park covering an area of 76 hectares. The the park consists of three gardens that differ in age and style: the 18th-century Royal Garden, the 19th-century Romantic Garden with the Belvedere Palace and the 20th-century Modernist Garden. More than 2 million people visit Royal Łazienki every year! The museum is also home to unique works of art: the Royal Collection of Painting, Sculpture and Graphic Arts. When watching them, it is obviously important to make certain references to ancient times, mythology, and finally, to Poland’s own complex history. Hence the educative mission of the museum. The wisdom of the ancient Greeks says: “Get to know yourself,” but it does also teach us the importance of being in harmony – with yourself and with the nature. After all, it is not for nothing that we have museums and such magical gardens as Royal Łazienki – a garden paradise in the middle of a dynamic city... pm

and maintenance works, and investments worth over PLN 130 million. This was a huge cash injection. More than half of it came from EU funds and the Norwegian Fund. In May, the Palace on the Isle with the Amphitheatre was opened after a thorough renovation; in June the Royal Gallery of Sculpture was put into service in the Old Orangery and the Royal Theatre, also in the Old Orangery, was fitted with new installations. It is part of the “Muses and Thoughts of Stanisław August - Renovation and Maintenance of the 18th-century Old Orangery with the Stanisławowski Theatre for the New Exhibition of Sculpture and Implementation of the Cultural Programme,” a project worth over PLN 18.5 million and financed by the Norwegian Fund, the Ministry of Culture and National Heritage and the special programme of the General Conservator – Maintenance of Buildings and Royal Collections. Superb are the paintings sensationally discovered on the gallery walls and 18th-century plaster copies of antique sculptures arranged according to the inventory from 1795. Not to be missed. Today, museums are not only about collecting, but also building a broad, artistic milieu. A sign of the times? Museums have undergone an unprecedented curriculum revolution lately. Once, these were rather elitist places; until recently, a museum was associated with something conservative and ossified. And today’s reality is that museums are open and active cultural institutions. They therefore propose vast educational, musical and theatre programmes, prepare publications and, of course, stage important exhibitions.

ambitious goals and tasks; to compare ourselves to the best museums in Poland and abroad. Support received from the successive ministers and the ability to collect funds from various sources are very important. We get along very well with private sponsors: PZU, Enea, PGE, KGHM and China Minmetals Corporation. We are supported by Samsung and Mercedes. And we do not regard this as an additional task, but as a fundamental part of our business. Such an exchange of intangible and tangible assets is mutually favourable. But we realise our dreams, too. My first thought when I came to office in 2010 was to remove asphalt from 4 hectares of the park: almost 9 km of footpaths were paved with asphalt, which was unacceptable not only in a royal garden, but in any respected garden whatsoever. Today, not a single square metre of asphalt is left and footpaths are filled with earth or paved. As a result of a joint initiative, cooperation has been initiated between the four royal residences in Poland (Royal Łazienki, Wawel Castle in Kraków, Wilanów Palace, Royal Castle in Warsaw). We are also a member of the Network of European Royal Residences - ARRE.

Minister Małgorzata Omilanowska decided to renew your contract as Director of the Royal Łazienki Museum for another term. You are an authority in culture management. What is your recipe for success in this field? Let me repeat after a management guru, Vice-President of the Museum’s Council, Prof. Krzysztof Obłój – “The most important thing is passion and responsibility.” That is a kind of our motto. We need a good strategy, set ourselves pm

Royal Łazienki has clearly been embellished. But not by itself? Royal Łazienki really needed a renewal. When, in the summer of 2010, the then Minister of Culture Bogdan Zdrojewski proposed a large revitalisation programme, most of EU funds for the years 2007-2014 had already been distributed. However, we were able to carry out a successful makeover, including renovation pm

A garden paradise in the middle of a dynamic city...

What are the challenges ahead in the coming years? The major challenge ahead is building the Garden of the 21st-century with an underground exhibition pavilion on the existing utility area beside the park. 2.5 hectares of land are occupied by old, unused greenhouses. That is the place that we would like to transform into the Garden of the 21st-century. After all, each century added something to Royal Łazienki. The construction was planned for the years 20162018. The winning design is by a Dutch-Polish team of architects: Mecanoo International, Jojko+Nawrocki (architects from Katowice), Michael R. van Gessel and DELVA Landscape Architects. Their brave but very balanced concept of a garden as an undulating flower meadow and an underground pavilion with two halls for temporary exhibitions will inject new life into Łazienki and will get Warsaw to further engage in international exhibition excha • nge. pm

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Culture

NAPOLEON AND ART “Napoleon and Art”, an exhibition dedicated to political and cultural ties between Poland and France, is the greatest event at the Royal Castle in Warsaw this year. It includes 100 works of art borrowed from various French museums, including the Louvre and Versailles, as well as objects from Polish collections, especially the Wilanów Palace and the National Museums in Warsaw and Kraków. The exhibition has been organised by the Royal Castle in cooperation with the Palais Impérial de Compiègne and the Réunion des Musées Nationaux Grand Palais to mark the bicentenary of the Congress of Vienna, closing the Napoleonic era. The exhibition is on from 12 September to 13 December 2015.

François Pascal Simon, Baron Gérard, “Napoleon I in his Coronation Robes”, 1805, oil on canvas, Musée national du Château de Fontainebleau, photo © Réunion des Musées nationaux - Grand Palais (Château de Fontainebleau) / Gérard Blot

Maciej Proliński

his is Poland’s first so extensive presentation of French artistic achievements of the Napoleonic era! The average Pole associates those times mainly with the military campaigns and the creation of the Duchy of Warsaw, a surrogate Polish state. Less known are impressive French achievements in art whose traits came to be referred to in Europe as the Empire style. This style was certainly influenced by the official cultural policy of the imperial court which, by means of an efficient administration, sought full control of all forms of art, using architecture, interior design, painting, sculpture and applied art to demonstrate the power and splendour of the court and the emperor himself. Through the art that he created himself Napoleon was building his myth and defining the boundaries of good taste. The exhibition organisers strive to present the Napoleonic era in its full scope: from neoclassicism and antiquity, through the sentimental style of the troubadours and pre-romanticism, to the most modern, pioneering forms. The exhibits are supposed to conjure up a fascinating story about how diverse and

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sometimes surprising was the art created under Napoleon. Among valuable objects are paintings and drawings by artists such as François Gérard, Jacques-Louis David, François-Xavier Fabre, Anne-Louis Girodet, Pierre-Joseph Proudhon, as well as sculptures by David d’Angers and Jean-Antoine Houdon. Decorative objects include bronzes and silvers by Jean-BaptisteClaude Odiot and Martin-Guillaume Biennais, including the works of the leading Empire decorators - Charles Percier and Pierre-François-Léonard Fontaine. Another attraction is the furniture designed by François-Honoré Jacob-Desmalter coming from the imperial palaces, including the desk of Napoleon himself and armchairs from Empress Josephine’s boudoir, displayed against the background of multi-coloured, richly decorated fabrics by Camille Pernon. “Works forming this colourful panorama will be showcased in the interiors of the Royal Castle in Warsaw – a residence for centuries imbued with the French art spirit, as Napoleon was hosted three times in its ceremonial halls. Poles saw him as a restorer of their state, the Duchy of Warsaw, and the emperor’s visits to Warsaw aroused hopes

for regaining independence. It may be recalled that in the early 19th century a painting by Marcello Bacciarelli hung in the castle’s Knight’s Hall, showing the scene of the granting of the Constitution of the Duchy of Warsaw by Napoleon. Now missing, it was one of the six great canvases depicting the most important historical moments in Polish history,” Prof. Andrzej Rottermund, Director of the Royal Castle in Warsaw, said before the opening of the exhibition. The exhibition at the Royal Castle in Warsaw was preceded by one organised at the Imperial Palace in Compiègne, the former residence of Napoleon (24 April - 27 July 2015), titled “Napoléon Ier ou la Légende des Arts.” The Warsaw exhibition is enriched with objects from Polish collections: the National Museum in Warsaw, Museum of King John III Sobieski’s Palace in Wilanów, National Museum in Kraków, Museum in Nieborów and Arkadia, and Ciechanowiecki Collection Foundation. They complement the exhibition with French art works purchased or ordered by the landowners of the Polish-Lithuanian Commonwealth, including the Potocki or Krasiński families. •

Culture

LIFE IS A STAGE... The prestigious exhibition “Limelight”, authored by four world-renowned photographers, is on show in the lobby of Warsaw’s Sofitel Victoria Hotel. In features pop culture icons in exceptional moments - not only at work but also in private and everyday situations. The exhibition, which has already toured seven countries in the world, will run until the end of October 2015. It was created by the Polka French contemporary art gallery. Photo: Sébastien Micke / Dita Von Teese

Maciej Proliński

he exhibition draws its title from the famous Charlie Chaplin film from 1952 titled “Limelight.” The work of the brilliant American director – both a poignant melodrama and a graceful comedy – is certainly an important story about the art, which demands sacrifices, destroys, but which is meaningful at the same time... It is also a story about the world considered as a theatre and the art as the only form of life. Calvero, the film’s main character, a burntout and dilapidated comedian, who finally decided to abandon a bohemian tinsel and came out to the street with his work, says at one point: “That’s all any of us are: amateurs. We don’t live long enough to be anything else. The world is a big stage. This is one of the realest.” The pictures presented at the exhibition follow the spirit of Chaplin’s film. Prominent artists who have changed the cinema, music and art are portrayed in studied poses and unique settings, but also as ordinary humans: Mariah Carey cooking in her kitchen in an evening gown, Brigitte Bardot lying on the grass, the Beatles leaning out from behind the red door, or Mick Jagger of the Rolling Stones integrated into an ice cream dessert. Legends are also portrayed such as Pablo Picasso, Salvador Dali, and James Brown.

The photographs were taken the French and British artists representing three generations: Marc Riboud (a war photographer and reporter famous for a series of photos made in the Far East), Jean-Marie Périer (who is also a film director), Derek Hudson (winner of the World Press Photo 1988 and 1996) and Sébastien Micke (who photographed such stars as Bill Gates and Barack Obama). Despite the age differences, they have a similar approach to photography, focusing on people and emotions Indeed, emotions were caught perfectly in these pictures. There is an interesting story behind each of the pictures. Jean-Marie Périer reveals the circumstances in which the photograph of the Beatles was taken in March 1964 in London: “This is my first photo of the Beatles, taken at their manager’s place. After the photo session, they took me to their shoemaker, Anello & Davide, famous for its side zip boots. On the spot, I could see for myself the scale of their popularity. Within a moment, the whole street was lined with screaming women, and we had to call the police because we were unable to get out of there.” The exhibition, which was inaugurated in 2012 in Belgium and has ever since visited Sofitel hotels in France, Britain, Germany and Hungary,

will certainly meet with great interest in Warsaw as well. “Speaking on behalf of Polka Galérie, I am very pleased that our exhibition reached Poland. Thanks to a successful cooperation of the Sofitel hotel chain, we can show these pictures to wide audiences around the world. They arouse great interest in each country,” Eméric Descroix of Polka Galerie said during the exhibition’s opening ceremony on 3 September. “We are very happy to be able to participate in valuable initiatives aimed at promoting art. We believe that supporting art is inherently inscribed in the functioning and the image of our hotels, and the way we are perceived by our guests. We hope that the exhibition will attract connoisseurs of art photography, as well as mass viewers who want to see the stars in exceptional shots made by world-renowned artists,” said for his part Philippe Godard, Director of the Sofitel Warsaw Victoria. •

10/2015 polish market

Events

Awards of the European Business Club of Poland – handed out! Laureats of the first edition of the Awards of the European Business Club of Poland

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n 12 September 2015, during a gala in the King John III’s Palace in Wilanów, the European Business Club of Poland honoured individuals and companies who have made a special contribution to the development of Polish entrepreneurship, economy, science, local government, media, culture and sport, and who have achieved a European and worldwide success. The Jury of the Award of the European Business Club of Poland is made up of outstanding people of business, science and sport, and chaired by Prof. Elżbieta Mączyńska, President of the Polish Economic Society and Member of the Scientific Council of the Institute of Economics, Polish Academy of Sciences (PAN). The gala was hosted by Robert Bernatowicz, a journalist specialising in economic issues. Among the guests of honour were Grażyna Henclewska, Undersecretary of State in the Ministry of the Economy and Prof. Zdzislaw Krasnodębski, Member of the European Parliament. The ceremony was opened by Janusz Cieślak, President of the European Business Club of Poland, who stressed in his welcome address that the time and place of the gala are not random. On 12 September 1683 King John III Sobieski, in whose residence the ceremony took place, won a victory in one of the most important battles in the history of Europe. The victorious battle known as the Vienna Victory is at the origin of name of main prize awarded at the Gala – “VICTORIA EUROPAE” (EUROPEAN VICTORIA). “Today we celebrate the two victories – Vienna’s and the European Union’s,” he said, pointing out that these awards embody the values and ideals, to which the European Business Club of Poland adheres: “Through these awards we want

a broader community to get to know some genuine authorities, whose achievements and attitudes are exemplary.” Then Prof. Elżbieta Mączyńska, President of the Jury, spoke of the principles underlying the choice of winners. She pointed to the interdisciplinary nature of the prizes and the importance of cooperation between various communities for the economic development of the country. Grażyna Henclewska read out the letter from Janusz Piechocinski, Deputy Prime Minister and Minister of the Economy, congratulating the winners, participants and organisers of the competition. In his letter, Piechociński emphasised the award-winning individuals and institutions are building a modern face of the market and a positive image of the Polish economy at home and abroad. He pointed to the fact that the companies awarded are reasonably organised, effectively managed and reliable for business partners. A letter was also read out from Władysław Kosiniak-Kamysz, Minister of Labour and Social Policy, who thanked the European Business Club of Poland for the promotion of learning, facilitating business contacts and encouraging the exchange of ideas with other entrepreneurs and communities. We have a pleasure to present the winners of this year’s first edition of the Awards of the European Business Club of Poland. The main prize “VICTORIA EUROPAE” (EUROPEAN VICTORY) was awarded to Prof. Jerzy Buzek “in recognition of many years of efforts towards strengthening Poland’s position in the European Union and building a united, fair and competitive Europe.” A magnificent laudation

Culture The Jury of the “VICTORIA EUROPAE” prize was delivered by Janusz Steinhoff. In his speech, Prof. Jerzy Buzek, thanked the Jury and emphasised the importance of cooperation between Polish with European partners for the development of our economy and strengthening our position in the world.

The prize “ENTREPRENEUR MAGNUS” (OUTSTANDING ENTREPRENEUR) went to two individuals: Herbert Wirth, President of KGHM Polska Miedź SA, “for his professionalism, creativity, and bold and dynamic governance of a strategic Polish company with global reach,” and Wojciech Kuśpik, President of PTWP SA, “for creating innovative, specialised and integrated solutions in the field of business communication, having a fundamental impact on the economic development of Poland.”

President of the Jury Professor Elżbieta Mączyńska, Ph.D President of Polish Economic Society Member of the Scientific Council of the Institute of Economic Sciences of the Polish Academy of Sciences

Secretary Jacek Dybowski, Vice-President of the European Business Club – Poland

Members: Żaneta Berus, President of the Board of the Warsaw International Expocentres EXPO XXI Janusz Cieślak, President of the European Business Club – Poland, Vice-President of the European Business Club Professor Marek Durlik, M.D., Ph.D, Director of the Central Hospital of the Ministry of Interior in Warsaw Roman Jagieliński, CEO of the „Roja” Group

The prize “BENE MERITUS” (WELL DESERVED) was presented to:

Ass. Prof. Krzysztof Kalicki, CEO of the Deutsche Bank Poland Profesor dr hab. Adam Koseski, Chancellor of the Pultusk Academy of Humanities

Jolanta Batycka-Wąsik, Mayor of Lesznowola, “for her professionalism and a bold vision for development of Lesznowola as a modern and residents friendly Commune of the 21st Century”, Prof. Grażyna Rydzewska “for her outstanding scientific achievements and her contribution to the development of Polish gastroenterology”, Przemysław Talkowski, a journalist, “for his courage, information rigour and persistent efforts towards transparency of the economic life, defence of the good name of Polish entrepreneurs and initiating changes in Polish legislation”, Andrzej Strejlau “for his outstanding achievements in coaching and long-term activities for the development of Polish football”, The Warsaw Rising Museum “for a special contribution to raising awareness of heroism of the people of Warsaw during the Warsaw Uprising and shaping patriotic attitudes with the young generation of Poles”, The Stanisław Hadyna Song and Dance Ensemble “ŚLĄSK” “for its outstanding and long-term achievements in promoting Polish folk culture at home and abroad.”

The prize “SIGNUM TEMPORIS” (SIGN OF TIME) was awarded to: Prof. Zdzisław Nowakowski “for innovation and achievements in the development of higher education”, Andrzej Siezieniewski, President of Polish Radio SA, “for many years of achievements in journalism and in the implementation of the social mission of Polish radio.”

The prize “PRO FUTURO” (FOR THE FUTURE) went to two companies: Pinus J&M Smolarczyk “for the foreign expansion of the Polish brand manufacturing wooden windows, doors and conservatories, as well as for the outstanding achievements in the development of its own design and technological solutions”, and Marchewka® “for setting new standards in interior design and conquering global markets for high quality wooden stairs, floors and interiors made in Poland.”

Czesław Lang, Chairman of the Lang Team Company, General Director of the Tour de Pologne Ambassador of Polish Sport Krzysztof Pietraszkiewicz, President of the Polish Banks Association Andrzej Siezieniewski, President of the Board of the Polish Radio Teresa Sukniewicz – Kleiber, Entrepreneur Krystyna Woźniak – Trzosek, CEO and Editor-in-Chief of the „Polish Market” Magazine

The winners thanked for the awards and the recognition of their achievements and expressed their willingness to pursue the lines of business as adopted. The ceremony was graced by the magnificent recital by the world-famous tenor Bogusław Morka. The artist captured the hearts of the audience with his beautiful voice, forthrightness, and common singing. Artistic impressions from the concert will surely long remain in the memory of the participants. Then the guests proceeded to the terrace of the Wilanów Palace to enjoy a cocktail party offered in the rose garden by the Hotel-Restaurant “Czarny Kot - My Warsaw Residence”, whose owner, Elżbieta Studzińska, is a member of the European Business Club of Poland. The smell of blooming roses, superb music by The Warsaw Dixielanders and specialties of the Polish cuisine were crowning accents of the ceremony. Congratulations and conversations were endless, and guests enjoyed themselves until late evening. The Gala was sponsored by the Foundation of KGHM Polska Miedź SA and BIG Info Monitor; honorary patronage by: Ministry of the Economy, National Chamber of Commerce, Polish Agency for Enterprise Development and Polish Information and Foreign Investment Agency; media patronage by: Polish Radio, Polsat News, “Nowy Przemysł” economic monthly, web portal www.wnp.pl, “Eurogospodarka” monthly and “Świat Elit” political and business magazine. Officers from “WALKRYS SECURITY” Protection Group, a member of the European Business Club of Poland, saw to it that guests feel safe and secure during the Gala. We wish to present our warmest congratulations to all the winners. We also wish to thank the Jury for its fruitful work and the guests for coming and participating, together with the board and members of the European Business Club of Poland, in this important event for entrepreneurs. • 10/2015 polish market

Food Industry

POLAGRA FOOD 2015

previews of innovative solutions and new lines of development

n 21-24 September Poznań hosted the International Trade Fair for Food Polagra Food. The Polish food industry traditionally presented its enormous potential and undisturbed enthusiasm for introducing innovative products corresponding with consumer expectations. This year’s Polagra Food, which was organised at an area of over 10,000 sq. m., was attended by nearly 300 exhibitors, mostly from Poland. Producers from the dairy and meat sectors were largely represented, occupying a considerable part of the exhibition and presenting at their stands innovative products in a variety of flavours, dedicated to children or people with intolerance to certain ingredients contained in the standard versions of popular foods. There were also a lot of novelties among sweets and alcoholic beverages, exotic teas and cooking additives. Polagra Food is an international trade fair not only by name. Many foreign producers have come to recognise the growing potential of the Polish market and welcome the opportunity to promote themselves in Poznań. It was no different this year. Among the exhibitors were producers and distributors from Lithuania, the Czech Republic, Bulgaria, Denmark, Germany, South Africa, Italy, China, Belarus, France, Turkey, the Netherlands, India, Spain, Latvia, Georgia, Ukraine and Finland. The stand of ham producers from the Italian region of Parma enjoyed great interest from visitors. Parma’s ham, so popular in Italian cuisine, is wining the hearts and palates of the ever growing number of gourmets in Poland. The fair was an excellent opportunity to present the achievements of the food industry, but also a time of intense talks about possible forms of cooperation and strategies of expansion into new markets. This year’s Polagra Food was certainly fruitful in this regard. A large group of buyers from all over the world visited the stands of Polish producers with great interest, looking for products that could be placed on their home markets. There were also discussions about the

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opportunities and challenges facing the Polish food sector. At the conference “Organic Food - A Market with a Sustainable Potential or a Fad?”, organised by Akademia Biokuriera, the participants discussed the statistics and presented forecasts regarding the sales of organic products. The leading Polish organic food producers and distributors participated in a debate discussing trends, opportunities and challenges ahead for the organic market. Polagra Food is a business event, which is not the case of the Tastes of Regions, an accompanying event, celebrating traditional, regional and certified Polish food. The Tastes of Regions was attended not only by professional visitors looking for genuine goodies they could offer their customers, but most of all the inhabitants of the Wielkopolska Region. They flocked to taste unusual rarities, buy local delicacies and explore the country’s culinary traditions. The stands were lined with crispy breads, gourmet cheeses, stove-fried jam, fresh honey straight from a beehive and traditional “grandma’s” liquors. Master chefs took hold of the culinary stage, telling the secrets of preparing regional dishes. It is already a tradition that the Tastes of Regions is a venue for the Awards Gala of the competition “Our Culinary Heritage – Tastes of Regions”, organised by the Polish Chamber of Regional and Local Product. The idea behind the competition is to identify and promote the specialties whose methods of preparation are deeply rooted in Polish tradition. This year, the Pearls – the awards for the best regional and local food product and for the best dish and regional and local food – were handed out for the fifteenth time already. Polagra Food has again proved the significance of Poznań as a meeting place for the food industry. And although the concept is completely different from that of 1985 when the fair was first held, one thing remains: Polagra Food is a means for food producers to promote themselves and gain • new markets effectively.

Energy

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10/2015 polish market

Food Industry

Meat Arena festival on Polish-German border Bożena Skarżyńska

he third Meat Arena culinary festival organized by the Association of Polish Butchers and Meat Processors (SRW RP) was held this year in the town of Gubin on the Polish-German border on August 1. Teatralna Island on the Lusatian Neisse river was the venue for diverse presentations, shows, contests and concerts, but first of all a place of a great feast where meat and its products reigned supreme. As the organizers emphasize, there was a good reason why this year’s Meat Arena was held on the Polish-German border. It was targeted at consumers in the two border towns: Gubin in Poland and Guben in Germany. Their response to the invitation was enthusiastic. Crowds of thousands of Polish and German people visited the island during the afternoon festival. The festival was financed by the Poultry Promotion Fund, Pork Promotion Fund and Beef Promotion Fund. As usual, the event promoted pork, beef and poultry. At tasting stands, the visitors were offered meat goulash from a traditional “abundance cauldron,” sausages, barbecued blood sausages and meat, and roasted beef from a young bull. Apart from eating hearty portions of meat, the visitors also had an opportunity to take part in games for children, see sports shows, street happenings and performances of ensembles from Gubin’s Culture Centre, and benefit from consultations with dieticians. Meat Arena was combined with the Meat and Cereal Picnic, and the 5th Polish-German Meeting on Teatralna Island. The goal of the three events was to integrate the residents of Gubin and Guben. They were organized, apart from SRW RP and the Guild of Poznań Butchers and Meat Processors, by

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agricultural organizations and farmers’ wives associations from Lubuskie province. When opening the meat festival, Stanisław Tomczyszyn, deputy marshal of Lubuskie province, wished everyone a good taste and spiritual experience. He said: “I wish to thank very much the authorities of Gubin for hosting the third Meat Arena. It is an important event held under the auspices of Minister of Agriculture Marek Sawicki, Governor of Lubuskie Province Katarzyna Osos and Marshal of Lubuskie Province Elżbieta Polak. Ginter Koln, who represented the residents of Guben, said: “Meetings on Teatralna Island are designed to bring the residents of the two cities closer to each other. Such celebrations are to help us to come to know each other’s culture, customs, culinary heritage and each other.” And this was indeed the case. The visitors feasted and enjoyed recitals of folk and popular music prepared by the Gubin Culture Centre. They ate barbecued meat, sausages, goulash, and cabbage and meat stew. A spitroasted bull weighing several hundred kilograms disappeared in a matter of less than two hours. The event was a long Polish-German culinary celebration in a joyful and family atmosphere. A culinary guide with meat recipes was published for the third Meat Arena festival in Polish and German. Promotional stickers were also distributed among the participants. The festival ended with a concert by the Czerwone Gitary band – under the stars by • the Lusatian Neisse river. Photos: Bożena Skarżyńska

Innovation

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