Transcript Encouragement of industry towards R&D Chile November 3rd, 2009

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Fortaleciendo la alianza público-privada en América Latina:
Salir de la crisis mirando estratégicamente el futuro
3-4 noviembre 2009, Santiago de Chile
Encouraging of Industry to R&D
”From expenditures to investments”
Dr. Heikki Kotilainen
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National R&D Policy and Strategy
Topic
Question to be
answered
Main responsibility
Policy
Why?
Government,
Ministries, Industry
Confederations
2- 4 years
What?
Priorities,choices
Authorities,agencies,
industry, universities
+ all stakeholders
1- 2 years
How?
National agencies for
implementation
Strategy
Tactics
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Time
frame
< 1 year
Characteristics, Concerns and Common Features of Different
Cultures
Administration
Company
Main
characteristics
Working with rules
Slow Motion
Flexibility
Quick decisions
Fast moving
Time scale of
actions
1-3 years
General
concern
Policy frames
economical/social/
regional
Immediate
concern
Months
Weeks (SME)
Cluster
Academic
Common understanding
Scientific ambition
of business
Quality of research
Competitiveness
Slow Motion
Innovation
1-3 years
5-10 years
Competition
Legislative changes
Productivity
Networking
Specialisation
Productivity
IPR
Quality of resources
Quality of research
Attractivity of research
Paperwork
Deadline
Fraud
Sales
Cash
Client needs
IPR
Rivalry
Demand conditions
Market access
Publications
Continuity
Finance
Biggest
fear
Contractual
failures
Misuse of public
money
Confidentiality
Product outdate
Market collapse
Rules and legislation
(antitrust)
Loss of competence
and scientific
excellence
Peer failure
Common
ground
Values of society
Emloyment
Working ”Triple
Helix”
Positive innovation
atmosphere
Supportive legislation
Objectives of company
Diamond model
Triple Helix
Key services,
key suppliers
Sufficient public
and private
funding
Attractivity of knowledge
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Circulation of innovation policy
Setting policy
agenda
(Council, audit)
Public interest
Private interest
Analysing policy
(Ministries, agencies,
universities,
industry,Evalution +
outside experts)
Research
National strategy
Strategic intelligence
Sector policies
Policy evaluation
Implementation
(Ministries, agencies,
universities, industry)
Implementation of strategies
Impact evaluation
Instrument set-up
Performance evaluation
Source: Tekes
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Guidelines and Prerequisites for Establishing
Innovation Policy
•Main target: High return of R&D investment
•Do not copy – no directly adaptable features
•Environment is dynamic – create a continuous process
•Consider methodology – not single tasks. Single tasks
can serve as concrete examples for the creation
of process/methodology
•Iterative process- questions & answers – solutions
Guarantee the implementation of the policy
•Statistical data
•Auditing the innovation infrastructure
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Prerequisites for administration
involvement in R&D
•Business and research understanding
•Genuine interest in facilitating development
•Trust by industrial community
•Trust by research community
•Money and funding opportunities
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BALANCE BETWEEN THE SCIENCE, TECHNOLOGY AND
SOCIAL DEVELOPMENT
MAINTAIN CLEAR NATIONAL FOCUS
NATIONAL
POLICY
ADAPTING TO
CUSTOMERS
(The Business
Community, Society)
National Authorities
And
Agencies
BOTTOM-UP
REQUESTS
MANAGE KEY DEMANDS
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PROACTIVE
VISION
(Science and University
Community, Society)
The Triple Helix
Confederations of
Industry
EU Commission
-state aid
-regulations
-FP
Industry
Industry
Industry
Industry
Industry
Clusters
Banks
Venture Capital
Business angels
Semiprivate
SITRA
Finvera
Industrial Invest
Centres of Excellence
Technology/Science
Parks
Knowledge Centres
Sectorial Institutes
Tech Transfer offices
Institutes, labs
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Science &
Technology
Policy Council
Universities
Research
institutes
Ministries
Agencies
Patent offices,
Government
IPR
Regional centres
TE-centres
Definition of innovation
CUSTOMERS
INNOVATION
BUSINESS
MARKETS
IMITATION
INVENTION
RESEARCH, KNOWLEDGE, IDEA,
TECHNOLOGY
BUSINESS
MODELS
”If innovation is the commercial application of
existing knowledge in a new context,
technologically driven innovation is only one
form of this. Innovation is distinct from
research, which results in new knowledge
and from the entrepreneurial function that
spots market opportunities for products and
services. It is the result of the interaction of
these two functions”
”Innovate for a competitive Europe”,
A new Action Plan for Innovation,
European Commission, 2004
Innovation Trends
• User-based innovations
•Merger of manufacturing and service
•Mulitidisciplinary innovations
•E-Business
•Public and private sector innovations
•Globalisation of innovations
•Small firm innovations- large firm interventions
Key questions
Are you going to compete tomorrow with yesterday’s technology ?
Where are your competitors? What technology are they applying?
Where are they located?
Encouragement:
National technology and innovation policy
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Change of mindset
Don’t spend money on R&D!
You have to invest in R&D!
Consequences: You must expect return of the investment (ROI)
You have to prioritize you investments
You have to have your own technology strategy
i.e. What are the core competencies related to
your business and revenue creation?
What is necessary to keep in house and what can
be outsourced?
What are the requirements for personnel?
What kind of cooperation will be needed (clusters,
networks, international cooperation, university
relations etc.)?
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Global
Technology strategy
Preserving
current
positions
Strategic renewal
Decline
Formation of
strategic clusters
Defensive
Offensive/proactive
National
Geographical
strategy
Action strategy
CORE COMPETENCES
Core
compentences
(strengthen)
Critical capabilities
(cooperate)
Critical
Support
Related
Primary capabilities
(Outsource, cooperate)
TECHNOLOGY FIELD PRIORISATION
Embryonic
Active
Active
Active
Evolving
Monitor
Develop, if
strategic
Active
Mature
Sell
Sell
Active, license
transfer
Follower
Equal
Leader
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Development Program for Business & Technology Strategy
1. Business definition
Where should we get to?
Vision/
Business target
Definition of
objectives
How to reach to
the target?
Where are we?
1. Business definition
Business
environment
Mission
Competitive idea
•Benefit to customer
•Benefit to the company
Driftwood alternative
Where are we going?
© BCD/S&T Balance
Capabilities?
•Commercial
•Technological
•Operational
•Financial
Development Program for Business & Technology Strategy
Work programme
Business 2
1A. Business area?
Company X
Business 1
1. Business definition
2.A Markets?
2.B Customer needs?
4.A Competitive profile?
5.A Marketing strategy?
5.B Product strategy?
6.A Personnel?
Business 3
2. Business environment
M1
1B Core competencies?
2.E Devlmnt of envirmnt
2.C Success factors?
2.D Trends?
M0
M2
2.F Best practice’s SWOT
2.G SWOT of our own?
3. Business target?
4. Competitive strategy?
5. Way to operate?
2.H Company values?
4.B Competitive idea?
5.C Key contacts
5.D Organization?
6. Resources?
6.B Financing?
© Business Concept Development Oy/ S&T Balance Oy
6.C Space.location?
M3
Development Program for Business & Technology Strategy
1A, 3
4B
Mark./serv.technologies
Manuf. technologies
7.Technology needs?
Product technologies
Key technologies?
Administr. technologies
8. Importance of
technologies?
Supporting Technologies
M4
Auxiliary technologies
Own R&D
Sub-suppliers
9. Technology sources?
Cooperative partners
7.A Principles?
Technology transfer
10. Decision making rules
7.B Rules?
M5
7.C Alloc. of resources?
8.A Key issues?
11. Prioroties/actions?
8.B Action plan?
12. Checking approval
Tech. strategy
9.DCompetitive strategy?
9.A Business definition?
9.B Business target?
9.C Description of IS
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9.E Follow up?
M6
TECHNOLOGY APPLICABILITY
CUSTOMER NEEDS
1
2
3
4
5
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TECHNOLOGY
COMPETITIVE POSITION
What is the innovation process?
Projects typically proceed in three very distinct phases
Explore…
Market ideas
& wishes
Run like hell!!!
Choose/plan superbly…
Market
intelligence
Concurrent conception
Concurrent engineering
Customer
intelligence
Business
intelligence
Competitor
intelligence
Product
definition
&
specification
Product
conception
&design
Product
development
&
Production
preparation
&
engineering
engineering
Technology
intelligence
Technology
ideas
Pre-concept
Planning
Go decision
Implementation
Costs start to run
Better
Source: IMD
Good
Typical
Process Character of Technology Transfer
RESEARCH
INDUSTRY
Product development
CURIOSITY
KNOWLEDGE
CREATION
SCIENTIFIC
EXCELLENCE
ADAPTATION OF
SCIENTIFIC
RESULTS
FOR
TECHNOLOGICAL
USE
”Requirement for
PUBLICATIONS technological success”
Is it possible?
© S&T Balance
Can we do it?
TECHNOLOGY TRANSFER
Cooperative research
ADAPTATION
OF
TECHNOLOGICAL
KNOWLEDGE
FOR
INDUSTRIAL
USE
”Requirement for
market success”
How we do it?
CUSTOMER
NEEDS
MARKET&
MARKETABILITY
STRATEGY
PRODUCT
PORTFOLIO
R&D PORTFOLIO
COMPETENCE
MONEY&
FINANCING
IPR
REVENUES
How we market it?
Transfer process
Formulation of a National Programme
SUPPLY
RESEARCH
Case: Finland
FACILITATOR
PUBLIC FINANCE
QUALITY:
APPROPRIATE
STANDARD
NATIONAL
PROGRAMMES
RELEVANCE
VENTURE
CAPITAL
EFFICACY
IPR PROTECTION
DEMAND
ENTERPRISES
ARTICULATION
OF NEEDS
APPROPRIATE
TECHNOLOGY
ABSORB NEW
TECHNOLOGIES
Pres/ priorit,innovation system
Technology programmes
Steering
• enterprices
Public research projects
Tekes
Grants
Synergy
Networking
preparing
• co-ordi- Concurrent development
nating
Matching funds
•
• decision
making
Grants
Loans
Capital
loans
Company R&D projects
 23 on-going programmes in
2004 with a total extent of
EUR 1.2 billion
 a programme lasts typically
3–5 years
 annually 2000 company
participations
 annually 800 research unit
participations
 Tekes usually finances
- 60–80 % of university
projects
- 25–50 % of company projects
Implementation of results of public research is based
on parallel execution and networking with company projects.
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#54280
Technological success rate of enterprise
research projects concluded in 2002
concluded
1145 projects
611 mio. €
16 %
No information
240 projects, 100 mio. €
84 %
905 projects
511 mio. €
54 %
Success as
expected or
better
525 projects
278 mio. €
3%
19 %
Stopped or failed projects
37 projects, 17 mio. €
Success less than
satisfactory, 155 projects
99 mio. €
23 %
Otherwise as expected,
but late 188 projects
117 mio. €
Number and volume of projects
57305,
04-2003 Copyright © Tekes
SUCCESS FACTORS for FUTURE
• Curiosity
• Activity
• Cooperation ability
• Knowledge management
• Absorbing knowledge
• Application of knowledge
• Internationalisation
© S&T Balance
Prepare answer for questions, which will be asked after 5 years!!
Don’t forget creativity
at all levels!!
Success comes before work only in a
dictionary!
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Thank you for your kind attention!
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